China Medical takes 2nd-qtr loss; shares fall

By The Associated Press

posted: 82 DAYS 19 HOURS AGO

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-Medical device maker China Medical Technologies Inc. said Thursday it took a loss in the fiscal second quarter as it cut prices for testing kits, and as expenses increased.

The news helped send the Beijing company's U.S.-traded shares down $2.32, or 15 percent, to $12.83 in morning trading.

For the quarter ended Sept. 30, the company said it lost $6.9 million (47.1 million yuan), or 26 cents per American Depositary Share. A year ago it reported a profit of $2.43 per ADS. Excluding discontinued operations and one-time items, the company said it earned $2.6 million, or 10 cents per ADS.

Revenue fell 14 percent to $24.4 million. Immunodiagnostic revenue fell 37 percent to $11.3 million as customers cut back on buying reagent kits, expecting a price cut that arrived in September. Molecular diagnostic system revenue rose 24 percent to $13.1 million.

The company said competition increased during the quarter, and it spent more money on product development.

In the third quarter, China Medical said it expects revenue of $24.9 million to $26.4 million.

2009-11-19 11:00:34