Mindray Medical (MR) Prelim. FY14 Relatively Flat with Expectations

Mindray Medical (NYSE: MR) announced selected preliminary, unaudited results for the fiscal year ended December 31, 2014. The company also provided net revenues guidance for 2015.

For the year ended December 31, 2014, Mindray expects net revenues to be approximately US$1,318 million, representing a year-over-year growth of approximately 8.6%. Based on the estimated full-year revenues, the company anticipates 2014 non-GAAP net income to be approximately US$220 million, compared to US$237 million a year ago. The non-GAAP net income figure excludes the tax benefits related to the key software enterprise status and assumes a corporate income tax rate of 15% applicable to the Shenzhen subsidiary.

**** The Street was looking for FY14 revs of $1.33 billion.

This year, Mindray anticipates its net revenues to grow by a mid-single digit percentage year-over-year. Full-year guidance for 2015 will be provided in the fourth quarter and full-year 2014 earnings announcement.

In addition, the board of directors recently appointed Mr. Kern Lim as chairman of the audit committee and Mr. Ronald Ede as an audit committee member. Both Mr. Lim and Mr. Ede are current board members of the company.

"The overall operating environment in 2014 was challenging for our business, particularly the widespread weakness in the domestic Chinese market and significant headwinds as a result of unfavorable economic, currency and political developments in several key emerging markets," commented Mr. Li Xiting, Mindray's President and Co-Chief Executive Officer. "Nevertheless, we are delighted that Western Europe performed well. We are also happy that our IVD segment recorded good growth with reagent sales continuing its upward trend. Over the past year, we launched nine new products and continued to strengthen our core capabilities in major markets."

"Looking ahead, the overall market conditions in key regions remain volatile," commented Mr. Cheng Minghe, Mindray's Co-Chief Executive Officer and Chief Strategic Officer. "Having said that, we will continue to pursue long-term growth by strengthening our R&D, sales, marketing and distribution capabilities. This year, we look forward to introducing another seven to 10 new products. We will also actively explore M&As and other collaboration opportunities to drive the success of the company."

Preliminary Results; Use of Non-GAAP Financial Measures

Mindray's preliminary 2014 results are unaudited and subject to finalization of the company's year-end closing, reporting and auditing processes.

Mindray has announced its expected net income for full-year 2014 on a non-GAAP basis, which represents expected net income in accordance with GAAP, adjusted for the effects of dispute charges, dispute related legal fees, share-based compensation and amortization of acquired intangible assets, all net of related tax impact.

Because the financial performance is subject to finalization of the company's year-end closing, reporting, and auditing processes, Mindray does not provide a specific non-GAAP to US GAAP reconciliation. A reconciliation of non-GAAP results of operations measures to the nearest comparable GAAP measures will be provided in the fourth quarter and full-year 2014 earnings announcement.

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