San Diego-based ResMed Inc posted third quarter revenue of $357.7 million, a 5% increase over the quarter ended September 30, 2012. For the quarter ended September 30, 2013, net income was $80.9 million, an increase of 14% compared to the same period last year.
Research and development (R&D) expenses were $27.4 million for the quarter ended September 30, 2013, or 7.7% of revenue. R&D expenses increased by 1% (a 9% increase on a constant currency basis) compared to the quarter ended September 30, 2012. R&D expenses were favorably impacted by the depreciation of the Australian dollar against the U.S. dollar.
“In the first quarter of fiscal 2014, revenue in the Americas increased by 4% over the prior year’s quarter, to $201.5 million. Revenue outside the Americas was $156.2 million, a 5% increase on a constant currency basis, over the prior year’s quarter,” said Mick Farrell, CEO, via press release. “Global revenue growth was driven primarily by sales of higher valued flow generators, like our S9 AutoSet and S9 bilevels, while mask spares and accessories did particularly well this quarter. Operating profit for the September quarter was $96.9 million, cash flow from operations was $90.4 million, while gross margin increased to 63.7%, all demonstrating excellent operating performance.”
Acknowledging a “tough competitive product cycle this quarter,” Farrell said the company had “only just released our new mask products, but we were encouraged by their early sales.”
The Quattro Air is on its way to being one of the best mask launches ever for the company, while the Swift FX Nano, which was already selling well in Europe, was just launched in the U.S. in September with good reception.
“We have a rich pipeline of products scheduled for introduction over the course of this fiscal year, providing us with plenty of opportunities for robust growth ahead,” added Farrell. “The opportunities in sleep and respiratory care remain attractive; we continue to provide our customers with the right solutions to better manage their businesses while providing high quality products to improve compliance and patient care. We are focused on continuing to improve the quality of life for patients who suffer from sleep-disordered breathing and its related co-morbidities, such as cardiology and diabetes; respiratory disorders, including chronic obstructive pulmonary disease; preventing disease progression; and saving both in-patient and out-patient costs.”