BETHESDA, Md., June 13 /Xinhua-PRNewswire/ -- Chindex International, Inc. (Nasdaq: CHDX), an independent American provider of international healthcare services and Western healthcare products in the People's Republic of China, provided the following statement related to charges in the fourth quarter which will be reported in the Company's Annual Report on Form 10-K which will be filed with the Securities and Exchange Commission on Monday, June 16, 2008.
Included in the $2.7 million net loss for the quarter ended March 31, 2008 were the following adjustments: a $1.5 million charge resulting from the foreign exchange effect of a change in estimate related to the timing of the payment of intercompany payables, a $1.4 million additional tax expense related to the creation of valuation allowances on the US and China entities, a $380,000 expense related to the use of demonstration units in the medical products division, a $304,000 charge representing the interest and penalties assessed in the final settlement of a legal case in our healthcare services division, net of tax, and a $283,000 valuation adjustment related to aging merchandise inventory in the medical products division. Unless otherwise noted, there was no income tax effect on these adjustments.
About Chindex International, Inc.
Chindex is an American healthcare company that provides healthcare services and supplies medical capital equipment, instrumentation and products to the Chinese marketplace, including Hong Kong. It provides healthcare services through the operations of its United Family Hospitals and Clinics, a network of private primary care hospitals and affiliated ambulatory clinics in China. The Company's hospital network currently operates in the Beijing and Shanghai metropolitan areas. The Company sells medical products manufactured by various major multinational companies, including Siemens AG and Intuitive Surgical, which are the Company's exclusive distribution partners for the sale and servicing of color doppler ultrasound systems and surgical robotic systems respectively. It also arranges financing packages for the supply of medical products to hospitals in China utilizing the export loan and loan guarantee programs of both the U.S. Export-Import Bank and the German KfW Development Bank. With twenty-five years of experience, approximately 1,200 employees, and operations in China, Hong Kong, the United States and Germany, the Company's strategy is to expand its cross-cultural reach by providing leading edge healthcare technologies, quality products and services to Greater China's professional communities. Further company information may be found at the Company's websites, http://www.chindex.com and http://www.unitedfamilyhospitals.com .
Statements made in this press release relating to plans, strategies, objectives, economic performance and trends and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, the factors set forth under the heading "Risk Factors" in our annual report on Form 10-K for the year ended March 31, 2007, updates and additions to those "Risk Factors" in our interim reports on Form 10-Q, Forms 8-K and in other documents filed by us with the Securities and Exchange Commission from time to time. Forward-looking statements may be identified by terms such as "may", "will", "should", "could", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "forecasts", "potential", or "continue" or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. We have no obligation to update these forward-looking statements.
