Mindray, HiSoft See Slowdown in 2011

Medical Device maker Mindray Medical (NYSE: MR) and software outsourcer HiSoft (Nasdaq: HSFT) have just reported year-end results, with both forecasting significant slowdowns in the year ahead. (Mindray release; HiSoft release) First Mindray: despite’s its China pedigree, the company’s 2010 results were hardly mind-blowing, with 2010 growth of about 11 percent and set to drop slightly to 10 percent this year. HiSoft, which boasts a client list of major western names, posted a more China-worthy 60 percent growth rate in 2010, but forecast that figure would come down sharply this year to 35 percent top line and 25 percent bottom line growth. Is this reason for alarm? For Mindray, the status quo in 2011 seems to indicate this company may not be set for steroid-like growth anytime soon, but may be a dependable play for longer term slow-but-steady returns (including a dividend). In HiSoft’s case, it’s a bit harder to say. Chinese companies are notorious for lowballing their outlook to give themselves plenty of room for error. But such a major lowballing could be a bit of a warning flag for this upstart firm trying to take on the Indian giants.