SAN DIEGO, Nov. 5 /PRNewswire-FirstCall/ -- ResMed Inc. (NYSE:RMD)
today announced record revenue and income results for the quarter
ended September 30, 2009. Revenue for the September 2009 quarter
was $247.0 million, a 13% increase (a 16% increase on a constant
currency basis) over the quarter ended September 30, 2008. For the
quarter ended September 30, 2009, income from operations was $52.7
million and net income was $42.1 million, an increase of 44% and
50%, respectively, compared to the quarter ended September 30,
2008. Diluted earnings per share for the quarter ended September
30, 2009 was $0.55, an increase of 53% compared to the quarter
ended September 30, 2008. SG&A costs were $76.8 million for the
September 2009 quarter, an increase of $5.4 million or 8% (an 11%
increase on a constant currency basis) over the same period in the
prior fiscal year. SG&A expenses were favorably impacted by the
appreciation of the US dollar against international currencies. The
increase in SG&A was primarily due to expenses necessary to
support sales growth. SG&A costs were 31% of revenue in the
September 2009 quarter, compared to 33% in the same period in the
prior fiscal year. R&D expenses were $17.9 million for the
September 2009 quarter, or approximately 7% of revenue. R&D
expenses increased by 4% (a 9% increase on a constant currency
basis) compared to the prior year quarter. R&D expenses were
positively impacted by the appreciation of the US dollar against
international currencies, particularly the Australian dollar. The
increase in research and development outlays reflects ResMed's
continuing commitment to innovation within its product portfolio,
as well as an ongoing commitment to clinical research and product
development. Amortization of acquired intangibles was $1.8 million
($1.2 million, net of tax) for the quarter ended September 30,
2009. Stock-based compensation costs incurred during the quarter
ended September 30, 2009 of $6.5 million ($4.5 million, net of tax)
consisted of expenses associated with stock options granted to
employees and with our employee stock purchase plan. During the
quarter, the company donated $1.0 million ($0.6 million, net of
tax) to the ResMed Foundation. The Foundation was established to
promote research into the deleterious medical consequences of
untreated sleep-disordered breathing. Inventory, at $175.1 million,
increased by $17.7 million compared to June 30, 2009. Accounts
receivable days sales outstanding, at 77 days, increased by 3 days
compared to June 30, 2009. Kieran T. Gallahue, President and Chief
Executive Officer, commented, "In the first quarter of fiscal 2010,
we continued to show strong growth year over year. Our favorable
mix of product sales and market share gains led to a 19% increase
in the Americas over the prior year quarter, resulting in $134.7
million in revenue. Sales outside the Americas were impacted by
currency movements, in particular the depreciation of the Euro
against the US dollar. As a result, sales outside the Americas
increased by 8% to $112.3 million, but were up 13% in constant
currency terms. Cash flow from operations for the September quarter
was $64.1 million. Our robust revenue growth, strong operating cash
flows and exciting product pipeline continue to position us well
for the future." Mr. Gallahue continued, "As promised, we are
steadily introducing new products in what proves to be a very
exciting year for launching innovative treatment options for
sleep-disordered breathing. This summer, we launched the
ApneaLink(TM) Plus, our type 3 device for home sleep testing and
more recently, we launched the Swift(TM) FX mask in Europe and the
Mirage(TM) SoftGel mask in the Americas. These two new masks are
receiving a great reception. We are also taking active steps, both
in concert with another industry participant, and on our own, to
drive further awareness in the primary care community of the health
dangers of sleep-disordered breathing through educational programs.
These efforts should further enlighten both doctors and patients
especially with respect to the relationship between
sleep-disordered breathing/obstructive sleep apnea and
co-morbidities such as cardiac disease, diabetes, hypertension and
obesity as well as the dangers of sleep apnea in regard to
occupational health and safety, especially in the transport
industry." About ResMed ResMed is a leading manufacturer of medical
equipment for the treatment and management of sleep-disordered
breathing and other respiratory disorders. We are dedicated to
developing innovative products to improve the lives of those who
suffer from these conditions and to increasing awareness among
patients and healthcare professionals of the potentially serious
health consequences of untreated sleep-disordered breathing. For
more information on ResMed, visit http://www.resmed.com/. ResMed
will host a conference call at 1:30 p.m. US Pacific Time today to
discuss these quarterly results. Individuals wishing to access the
conference call may do so via ResMed's Web site at
http://www.resmed.com/ or by dialing (866) 700-7173 (domestic) or
+1 (617) 213-8838 (international) and entering conference I.D. No.
58367514. Please allow extra time prior to the call to visit the
Web site and download the streaming media player (Windows Media
Player) required to listen to the Internet broadcast. The online
archive of the broadcast will be available approximately 90 minutes
after the live call and will be available for two weeks. A
telephone replay of the conference call is available by dialing
(888) 286-8010 (domestic) and +1 (617) 801-6888 (international) and
entering conference I.D. No. 96602021. Further information can be
obtained by contacting Connie Bienfait at ResMed Inc., San Diego,
at (858) 836-5971; Brett Sandercock at ResMed Limited, Sydney, on
(+612) 8884-2090; or by visiting the Company's multilingual Web
site at http://www.resmed.com/. Statements contained in this
release that are not historical facts are "forward-looking"
statements as contemplated by the Private Securities Litigation
Reform Act of 1995. These forward-looking statements, including
statements regarding the Company's future revenue, earnings or
expenses, new product development and new markets for the Company's
products, are subject to risks and uncertainties, which could cause
actual results to materially differ from those projected or implied
in the forward-looking statements. Those risks and uncertainties
are discussed in the Company's Annual Report on Form 10-K for its
most recent fiscal year and in other reports the Company files with
the US Securities & Exchange Commission. Those reports are
available on the Company's Web site. RESMED INC AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited) (In US$ thousands,
except per share data) Three Months Ended September 30, 2009 2008
---- ---- Net revenue $246,992 $217,931 Cost of sales 96,814 90,804
------------- ------ ------ Gross profit 150,178 127,127
------------ ------- ------- Operating expenses Selling, general
and administrative 76,756 71,337 Research and development 17,914
17,293 Amortization of acquired intangible assets 1,845 1,933
Donation to Foundation 1,000 - ---------------------- ----- ---
Total operating expenses 97,515 90,563 ------------------------
------ ------ Income from operations 52,663 36,564
---------------------- ------ ------ Other income (expense), net:
Interest income (expense), net 2,125 3,231 Other, net 3,118 (1,068)
---------- ----- ------ Total other income (expense), net 5,243
2,163 --------------------------------- ----- ----- Income before
income taxes 57,906 38,727 Income taxes 15,804 10,701 ------------
------ ------ Net income $42,102 $28,026 ---------- ------- -------
Basic earnings per share $0.56 $0.37 Diluted earnings per share
$0.55 $0.36 Basic shares outstanding 75,394 75,613 Diluted shares
outstanding 76,762 77,180 -------------------------- ------ ------
RESMED INC AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited)
(In US$ thousands except share and per share data) September 30,
June 30, 2009 2009 ---- ---- Assets Current assets: Cash and cash
equivalents $477,824 $415,650 Accounts receivable, net 208,825
212,096 Inventories 175,108 157,431 Deferred income taxes 43,859
44,368 Income taxes receivable 4,998 2,067 Prepaid expenses and
other current assets 29,196 21,672
----------------------------------------- ------ ------ Total
current assets 939,810 853,284 -------------------- ------- -------
Property, plant and equipment, net 397,375 377,613 Goodwill 221,186
213,169 Other intangibles 35,431 35,023 Deferred Income taxes
20,464 19,364 Other assets 5,870 9,515 ------------ ----- -----
Total non-current assets 680,326 654,684 ------------------------
------- ------- Total assets $1,620,136 $1,507,968 ------------
---------- ---------- Liabilities and Stockholders' Equity Current
liabilities: Accounts payable $47,287 $48,293 Accrued expenses
75,297 67,018 Deferred revenue 31,192 28,881 Income taxes payable
69,808 56,972 Deferred Income taxes 416 391 Current portion of
long-term debt 68,296 67,545 ---------------------------------
------ ------ Total current liabilities 292,296 269,100
------------------------- ------- ------- Non Current Liabilities:
Deferred income taxes 11,548 11,137 Deferred revenue 14,878 15,238
Income taxes payable 3,395 3,110 Long-term debt 95,093 94,191
-------------- ------ ------ Total non-current liabilities 124,914
123,676 ----------------------------- ------- ------- Total
liabilities 417,210 392,776 ----------------- ------- -------
Stockholders' Equity: Common Stock 300 301 Additional paid-in
capital 545,186 522,982 Retained earnings 736,893 694,791 Treasury
stock (244,342) (208,659) Accumulated other comprehensive income
164,889 105,777 -------------------------------------- -------
------- Total stockholders' equity 1,202,926 1,115,192
-------------------------- --------- --------- Total liabilities
and stockholders' equity $1,620,136 $1,507,968 ----------
---------- DATASOURCE: ResMed Inc. CONTACT: Connie Bienfait of
ResMed Inc., San Diego, +1-858-836-5971; or Brett Sandercock of
ResMed Limited, Sydney, (+612) 8884-2090 Web Site:
http://www.resmed.com/
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