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DHRM Dehaier Medical Announces 2013 First Half Year Financial Results 08/26 02:30 PM
http://www.sec.gov/Archives/edgar/data/1474627/000114420413047872/0001144204-13-047872-index.htm

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BEIJING, Aug. 26, 2013 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (DHRM:$2.26,00$0.13,006.10%) ("Dehaier" or the "Company"), an emerging leader in the development, assembly, marketing and sale of medical devices and homecare medical products, today announced its financial results for the half year ended June 30, 2013.

Mr. Ping Chen, Chief Executive Officer of Dehaier Medical (DHRM:$2.26,00$0.13,006.10%) , stated, "We are pleased to have expanded into China's burgeoning sleep respiratory market by entering into a strategic agreement with an Israeli medical signal processing company. As WideMed's exclusive partner in China, we have marketed and distributed our newly-developed sleep holter to hospitals across the whole country as an accurate and user-friendly sleep apnea diagnosis solution. These products are in registration with China's SFDA and we expect to obtain SFDA approval soon. Because we believe this kind of device and business model addresses the needs of patients and the market, we expect the firm foundation we laid in the first half of the year will generate considerable revenue during the remainder of the year."

Mr. Ping Chen continued, "At the same time, we have continued to focus on our government medical procurement and key account business initiatives. We successfully bid to provide Color Doppler Ultrasound machines to county hospitals and clinics in Guizhou province and have also established a positive relationship with multinational companies like Mindray to broaden our key account business. We will continue to balance our development between our traditional business and new business initiatives and expect to drive a more diverse and robust revenue stream to the Company."

Operating Highlights for 6 months 2013

In January 2013, the Company won a bid to implement a government procurement project to provide Color Doppler Ultrasound machines to county hospitals and clinics in Guizhou, China.
In February 2013, the Company assisted Mindray Medical with a national medical procurement bid for 79 units of Mindray's M7 color Doppler ultrasound machines.
In April 2013, the Company became the exclusive after-sales service agent of Heyer Medical AG ("Heyer") for its anesthesia machine and ultrasound nebulizer products.
In May 2013, the Company entered into a strategic cooperation agreement with WideMed Ltd. (TASE:WDMD), a leading Israeli company engaged in the research, development and sale of innovative products for the growing bio-medical signal diagnostics and treatment market, to become WideMed's exclusive partner in China to market the Morpheus Ox System, a cost-effective, portable home sleep diagnostic and monitoring solution which enables to diagnose sleep disorders using a standard oximeter recording plethysmograph signal.
Half Year 2013 Financial Overview

Our total revenues decreased by 19.16% from $10.30 million for the six months ended June 30, 2012 to $8.33 million for the six months ended June 30, 2013. In the first half of 2013, we continuously developed our sales channels for traditional medical devices sales. At the same time, we also began to adjust our operating strategy to expand into government procurement projects and the burgeoning sleep respiratory and oxygen therapy market. Because the company reduced the marketing expenses in its traditional medical device business and invested additional resources to develop its sleep respiratory business, our revenues and net income are lower than during the same period in 2012.
Our gross profit decreased from $3.98 million in the six months ended June 30, 2012 to $3.27 million in the same period of 2013, while our gross margin increased slightly from 38.66% in 2012 to 39.23% in 2013 due to the faster decrease in cost than revenues. Management believes the Company's gross margin is likely to remain relatively stable over the near term.
As a result of the foregoing, we generated operating income of approximately $1.91 million in the six months ended June 30, 2013, compared to approximately $2.38 million in the same period of 2012. Operating income decreased by 19.67%, mainly because of the reduced revenues.
Our net income was approximately $1.52 million in the six months ended June 30, 2013, compared to approximately $1.81 million in 2012, a decrease by 16.13%, mainly because of the decrease of revenues. After deduction of non-controlling interest in income, net income attributable to Dehaier was approximately $1.53 million and $1.82 million in the six months ended June 30, 2013 and 2012, respectively.
As of June 30, 2013, we had $1,343,246 cash and cash equivalents. As a result of the total cash activities, net cash decreased from $3,505,330 at December 31, 2012, mainly because we invested in purchasing manufacturing equipment and devices for our future development of sleep respiratory business.
We believe that our currently available working capital of $30,035,112, including cash, should be adequate to meet our anticipated cash needs and sustain our current operations for at least 12 months.