ResMed Inc. (RMD) reported a 36% increase in net income to US$46.0 million for the December quarter compared to the previous corresponding period. The company said the result was on the back of a 23% increase in revenue to US$275.1 million in the same period.
Income from operations was US$57.9 million, or a 34% increase on the pcp, while diluted earnings per share for the quarter rose 36% to US60c.
However, ResMed said SG&A expenses increased 20% to US$84.1 million versus the pcp due to the depreciation of the US dollar against international currencies and necessary expenses to support sales growth. R&D expenses increased by 28% to US$19.1 million for the quarter and amortization of acquired intangibles was US$2.1 million.
Looking at the results over the six-month period, the company said revenue increased 18% versus the pcp, while income from operations and net income rose 38% and 42% respectively to US$110.6 million and US$88.1 million. Diluted earnings per share increased 44% to US$1.15 per diluted share.
President and CEO, Kieran T. Gallahue, said ResMed’s robust revenue growth, recent product launches and exciting product pipeline continue to position the company well for the future.
“As previously indicated, we are steadily introducing new products in what continues to be an exciting year for launching innovative treatment solutions for sleep-disordered breathing,” Mr Gallahue said.
The company announced the release of its newest generation of flow generators – the ResMed S9 series.
”As is customary for ResMed, this initial introduction will be for the S9 AutoSet and S9 Elite products, expanding to other flow generators over time,” Mr Gallahue said.
”We expect the launch will begin in both Europe and the Americas during the third quarter of this fiscal year.”
He added that the company was also continuing to drive market expansion.
”We are taking steps to increase awareness of the health dangers of sleep-disordered breathing by sponsoring educational programs targeted at the primary care physician community,” Mr Gallahue said.
"These efforts, driven both in concert with another industry participant and on our own, should further enlighten both doctors and patients about the relationship between sleep-disordered breathing/obstructive sleep apnea and co-morbidities such as cardiac disease, diabetes, hypertension and obesity.”
At the close of trade Thursday, ResMed shares were trading at $5.99.
