Dehaier gains on 2015 prelims

Share prices for China’s Dehaier Medical Systems (NSDQ:DHRM) jumped today after it released preliminary numbers for last year, despite massive losses incurred as it sheds unprofitable medical device businesses. Beijing-based Dehaier said in February that it plans to ditch the medtech units to focus on its wearable sleep respiratory business. Today the company reported preliminary losses of -$36 million, or -$6.13 per share, on sales of $1.32 million for 2015, compared with profits of $1 million last year. Sales are slated to be off by -67.6% compared with 2014, Dehaier said. Full results are due to drop some time this month, the company said. The restructuring plan calls for Dehaier to bail out of the assembly and sale of X-ray and anesthesia machines, but retain its medical air compressor and CPR instruments businesses. “Specifically, we continued scaling down and discontinuing, as appropriate, the unprofitable medical device businesses, including assembly and sales of mobile C-arm X-ray machines, anesthesia machines, Oxygen generator, the first generation ventilator, monitoring devices, general medical products and telemedicine products,” CEO Ping Chen said in prepared remarks. “Accordingly, the company wrote down the carrying value of the assets associated with the discontinued product lines and besides sleep respiratory business and hospital wireless solutions, the company plans to maintain only a few profitable traditional medical device businesse...
Source: Mass Device - Category: Medical Equipment Authors: Tags: MassDevice Earnings Roundup Wall Street Beat Dehaier Medical Systems Ltd. Source Type: news