Dehaier Medical Systems Ltd., an emerging leader in the development, assembly, marketing and sale of medical devices and homecare medical products in China, today posted its financial results for the fourth quarter and 12 months ended December 31, 2010, sending shares surging 12.36% to $6.18.
Revenue for the quarter increased 126 percent year-over-year to $6.7 million, up from $2.9 million in the fourth quarter of 2009. The company attributes the increase to growth in its homecare products and self-branded and third-party medical devices.
Gross profit increased 119 percent year-over-year to $2.5 million, accounting for 36.9 percent of revenue, up from $1.1 million, or 38.2 percent of revenue in the fourth quarter of 2009. The decrease in gross margin was primarily due to the company’s winning of a government bid that carried large procurement costs and lower-than-average gross margin.
Fourth-quarter operating income and operating margin were $1.5 million and 22.8 percent, respectively, as compared to $764,000 and 25.9 percent, respectively, for the fourth quarter of the year prior.
Net income increased 145 percent to $1.5 million, or $0.32 per diluted share, compared with net income of $602,000, or $0.20 per diluted share, in the fourth quarter of 2009.
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As of December 31, 2010, the company had $5.9 million in cash and cash equivalents, or $1.27 per diluted share, compared with $1.2 million as of December 31, 2009.
For the full year 2010, the company reported a 58 percent increase in revenue to $19.6 million, up from $12.4 million reported in 2009.
Gross profit increased 57 percent year-over-year to $7.6 million, or 38.9 percent of revenue, up from $4.9 million, or 39.3 percent of revenue, in 2009.
Operating income and operating margin were $5.1 million and 26.2 percent, compared with $3.4 million and 27.1 percent in 2009, respectively.
Net income attributable to the company increased 70 percent to $4.5 million, or $1.09 per diluted share, compared with net income of $2.7 million, or $0.89 per diluted share, in 2009.
Dehaier CEO Ping Chen noted that 2010 was a record year for the company as it recognized strong growth expected to position the company for success in the upcoming years.
“Key to our growth in 2010 was the continued advancement of our homecare products business, in which we achieved triple-digit gains for both the fourth quarter and full year. While the domestic market presents a compelling growth opportunity, international expansion is a critical element of our longer-term strategy and we are making meaningful progress in this regard, with several of our respiratory therapy homecare products currently pending regulatory approval in the United States and European Union,” Chen stated in the press release. “We believe that securing these approvals and rolling out our products in targeted international markets will provide another important catalyst for our business and help propel Dehaier to the next level of top- and bottom-line growth.”
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