In Healthcare Services division, revenue increased 12.3% to $24.7m from $22m in the prior year period, reflecting growing inpatient and outpatient volume across the company’s United Family Healthcare network.

In Medical Products division, revenue was $16.7m, down 28.3% from $23.3m in the prior year period. Revenue performance reflects increased sales from women’s health imaging and ultrasound products, offset by a reduction in revenue from government-backed loan programs and lack of daVinci sales versus the prior year period.

Income from operations in the first quarter of fiscal 2011 was $1.9m, compared to income from operations of $5.3m in the same quarter last year.

Net income was $836,000, or $0.06 per diluted share. This compares to net income of $3.3m, or $0.20 per diluted share, in the prior year period.

Roberta Lipson, president and CEO of Chindex, said: “In our Medical Products division, the review process for Class A medical equipment continued to hinder daVinci sales, and purchasing behavior demonstrated the seasonally slower first quarter in line with annual budgeting processes. However, demand for high-value medical equipment remains strong in China and we are well-positioned to capitalize on the market for these products in the future.

“Our growth this quarter reflects continued demand for services across our network. We are pleased to see more and more patients rely on us to treat increasingly acute indications in Beijing, while volumes in Shanghai and Guangzhou continued to validate that we are replicating the UFH brand in these newer locations. Additionally, the Beijing hospital expansion is on-track to more than double our capacity by calendar year-end.

“We continue to believe order and shipment delays related to the regulatory review of high-value technologies is a temporary reality, which substantiates the overall demand in the market for these products. We take a long-term view that the medical device market in China is extremely compelling despite the current regulatory challenges, and we look forward to pursuing this large addressable market in the coming years.”

Chindex sells medical products manufactured by various major multinational companies, including Siemens AG and Intuitive Surgical, for which it is the exclusive distribution partner for the sale and servicing of color ultrasound systems and surgical robotic systems respectively.