SAN DIEGO, Oct. 24, 2011 /PRNewswire/ -- ResMed Inc. (NYSE: RMD) today announced results for the quarter ended September 30, 2011. Revenue for the quarter ended September 30, 2011 was a record $314.8 million, a 12% increase (an 8% increase on a constant currency basis) over the quarter ended September 30, 2010. For the quarter ended September 30, 2011, net income was $50.5 million. Largely as a result of currency exchange rate movements, net income decreased 11% compared to the quarter ended September 30, 2010. Diluted earnings per share for the quarter ended September 30, 2011 were $0.33, a decrease of 8% compared to the quarter ended September 30, 2010.
SG&A expenses were $94.2 million for the quarter ended September 30, 2011, an increase of $9.4 million, or 11% (a 5% increase on a constant currency basis) compared to the quarter ended September 30, 2010. SG&A costs were 29.9% of revenue in the quarter ended September 30, 2011, compared to 30.1% for the quarter ended September 30, 2010. SG&A expenses were negatively impacted by the appreciation of the Australian dollar and euro against the U.S. dollar.
R&D expenses were $26.2 million for the quarter ended September 30, 2011, or 8.3% of revenue. R&D expenses increased by 33% (an 18% increase on a constant currency basis) compared to the quarter ended September 30, 2010 reflecting ongoing investment in our product pipeline. Additionally, R&D expenses were negatively impacted by the appreciation of the Australian dollar against the U.S. dollar.
The company amortized acquired intangibles of $3.8 million ($2.7 million, net of tax) during the quarter ended September 30, 2011. Amortization of acquired intangibles increased primarily as a result of our recent acquisitions of BiancaMed Ltd. and Grundler GmbH. The ongoing integration of these units is going well. Stock-based compensation costs incurred during the quarter ended September 30, 2011 of $7.2 million ($5.3 million, net of tax) consisted of expenses associated with stock options, restricted stock units, and the employee stock purchase plan.
Inventory, at $188.0 million, decreased by $12.8 million compared to June 30, 2011. Accounts receivable days sales outstanding, at 71 days, increased by 2 days compared to June 30, 2011.
Peter C. Farrell Ph.D, chairman and chief executive officer, commented, "Revenue in Americas increased by 9% to $169.3 million over the prior year's quarter. Revenue outside Americas increased by 15% to $145.5 million over the prior year's quarter, or a 7% increase on a constant currency basis. Worldwide, our growth in flow generators was mainly driven by sales of the S9 AutoSet™ and VPAP Adapt SV™. Patient interface sales continue to perform strongly in all regions. Operating profit for the September quarter was $60.9 million and cash flow from operations was a record $89.5 million, demonstrating excellent operating performance. During the quarter, we also repurchased 4.4 million shares, at a cost of $124.7 million, as part of our ongoing capital management program.
"Awareness of sleep-disordered breathing and its impact on other disease states continues to grow. Just last week, at the Congress of the World Sleep Federation, in Kyoto, Japan, the connection between sleep-disordered breathing and both heart failure and type 2 diabetes mellitus was highlighted, with particular emphasis on the need to address sleep-disordered breathing diagnosis and treatment for patients with type 2 diabetes. In fact, both Japanese cardiologists and endocrinologists are initiating their own sleep studies to simplify the diagnostic procedures for sleep-disordered breathing.
"Three new product initiatives also demonstrate our commitment to meeting patient needs. First, during October 2011, we released our line of CPAP therapy products for women, known as "Choices for Her." The offering includes three masks from ResMed's FX Series specially designed for women, as well as the S9 AutoSet for Her therapy device. ResMed is the first company to design a mask for female patients, understanding that women have unique needs when it comes to CPAP therapy, particularly with mask choice and fit.
"Second, in September, we launched the new Pixi™ nasal mask, the first pediatric mask in the industry developed specifically for the treatment of obstructive sleep apnea in children aged two and older, a patient population traditionally overlooked. This is not just a scaled-down adult mask; every feature on the Pixi was carefully designed to address and improve comfort, acceptance and the overall therapy experience for both the child and caregiver.
"And finally, ResMed has recently begun an initiative to engage existing patients by lowering the emotional barriers to therapy through an exclusive arrangement with Skinit® for our CPAP devices. Skins can provide a unique opportunity to connect patients personally with their machine early in the process, reconnect with patients who have abandoned therapy, and provide an accessories revenue stream for the home care dealer."
About ResMed ResMed is a global leader in the development, manufacturing and marketing of medical products for the diagnosis, treatment and management of respiratory disorders, with a focus on sleep-disordered breathing. The company is 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 www.resmed.com.
ResMed will host a conference call at 1:30 p.m. U.S. Pacific Time today to discuss these quarterly results. Individuals wishing to access the conference call may do so via ResMed's Website at www.resmed.com or by dialling 617-801-9715 (domestic) or +1 617-801-9715 (international) and entering conference pass code no. 99214751. Please allow extra time prior to the call to visit the Website 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 30 minutes after the live call and will be available for two weeks. A telephone replay of the conference call is available by dialing 617-801-6888 (domestic) and +1 617-801-6888 (international) and entering conference I.D. No. 92613651.
Further information can be obtained by contacting Constance Bienfait at ResMed Inc., San Diego, at (858) 836-5971; Brett Sandercock at ResMed Limited, Sydney, at (+612) 8884-2090; or by visiting the Company's multilingual Website at 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 U.S. Securities & Exchange Commission. Those reports are available on the Company's Website. RESMED INC AND SUBSIDIARIESCondensed Consolidated Statements of Income (Unaudited)(In US$ thousands, except per share data)Three Months Ended
September 30,20112010Net revenue
282,012Cost of sales129,720108,058Gross profit185,054173,954Operating expenses:Selling, general and administrative94,20384,791Research and development26,20619,739Amortization of acquired intangible assets3,7712,030Donation to Foundation01,000Total operating expenses124,180107,560Income from operations60,87466,394Other income (expenses), net:Interest income (expense), net6,9245,097Other, net(1,301)5,063Total other income (expenses), net5,62310,160Income before income taxes66,49776,554Income taxes15,97919,846Net income
56,708Basic earnings per share
0.37Diluted earnings per share
0.36Basic shares outstanding150,366151,474Diluted shares outstanding154,051156,752RESMED INC AND SUBSIDIARIESCondensed Consolidated Balance Sheets (Unaudited - In US$ thousands)September 30,
2011ASSETSCurrent assets:Cash and cash equivalents
735,267Accounts receivable, net251,103274,352Inventories187,950200,777Prepayments, deferred income taxes and other current assets93,68382,056Total current assets1,142,7991,292,452Property, plant and equipment, net432,687462,107Goodwill267,688235,487Other intangibles63,94047,911Deferred income taxes19,80418,922Other assets8,37412,043Total non-current assets792,493776,470Total assets
2,068,922LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable
55,194Accrued expenses103,274103,787Deferred revenue41,91845,125Income taxes payable29,1463,931Deferred income taxes593640Current portion of long-term debt4,095163Total current liabilities225,714208,840Deferred income taxes9,4658,051Deferred revenue16,97917,237Income taxes payable4,1164,057Non-current portion of long-term debt130,000100,000Total non-current liabilities160,560129,345Total liabilities386,274338,185STOCKHOLDERS' EQUITY:Common stock591607Additional paid-in capital815,174798,461Retained earnings1,162,3801,111,862Treasury stock(629,338)(504,625)Accumulated other comprehensive income200,211324,432Total stockholders' equity1,549,0181,730,737Total liabilities and stockholders' equity
|SOURCE ResMed Inc.|
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