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RMD · ResMed

35 filings

10-K

RMD 10-K Annual Reports

ResMed - 35 annual reports

Filing record · 2016–202610-K1410-Q338-K85

2026
ResMed Annual Report, Year Ended Jun 30, 2026
ResMed Inc. reported fiscal 2026 (year ended June 30, 2026) net revenue of $5.65 billion, up 10% from $5.15 billion, with net income of $1.52 billion, or $10.43 per diluted share, versus $9.51 a year earlier. Gross margin rose to 61.1% from 59.4%, driven by procurement, manufacturing and logistics efficiencies, partly offset by Astral field safety notification expenses. Sleep and Breathing Health revenue grew 10% to $4.98 billion, while Residential Care Software grew 5% to $676 million. Operating cash flow was $1.81 billion and cash and cash equivalents were $1.47 billion at June 30, 2026. Portfolio activity was significant in the year. In June 2026 the company acquired Noctrix Health, LLC, a maker of a restless legs syndrome device, for $335 million. On June 30, 2026 it agreed to sell its MatrixCare business for $490 million in cash, expected to close in the first quarter of fiscal 2027; the filing says MatrixCare generated about $220 million of revenue and $28 million of operating profit in fiscal 2026. The company repurchased $700 million of treasury stock during the year and paid $350 million in dividends. Risk factors center on competition from Philips and new pharmaceutical treatments such as GLP-1 drugs, reimbursement and Medicare policy changes, tariffs and supply chain constraints including rare earth magnets, and ongoing patent litigation with Cleveland Medical and Fractus. Total debt was $660 million at June 30, 2026, and the company declared a quarterly dividend of $0.66 per share on August 6, 2026.
Aug 13, 2026
2025
ResMed Annual Report, Year Ended Jun 30, 2025
ResMed Inc. reported fiscal year 2025 (ended June 30, 2025) net revenue of $5,146.3 million, up 10% from $4,685.3 million, with net income of $1,400.7 million, or $9.51 per diluted share, versus $1,021.0 million, or $6.92 per diluted share, in fiscal 2024. Gross margin rose to 59.4% from 56.7%, driven by procurement, manufacturing and logistics efficiencies and the absence of $14.3 million of field safety notification expenses recorded in fiscal 2024. Income from operations was $1,685.4 million, compared with $1,319.9 million a year earlier. Operating cash flow was $1,751.6 million, and cash and cash equivalents ended the year at $1,209.5 million, against $1,500.0 million of undrawn revolving credit capacity. The company operates two segments: Sleep and Breathing Health, which produced $4,504.9 million of revenue, and Residential Care Software, which produced $641.4 million. Devices accounted for approximately 52% of net revenues in fiscal 2025, and masks, diagnostic products, accessories and other products for approximately 36%. The company acquired VirtuOx, an independent diagnostic testing facility, in May 2025, which the filing describes as not material to financial results. The filing also flags regulatory and reimbursement uncertainty, including changes to Medicare payment rules, Medicaid funding under the One Big Beautiful Bill Act, VA sleep apnea disability rating proposals, and supply constraints tied to rare earth magnet export controls from China. Capital returns continued during the year. The company paid dividends of $2.12 per share totaling $310.9 million and repurchased $300.0 million of treasury stock. Total debt stood at $670.0 million at June 30, 2025, and the board declared a quarterly dividend of $0.60 per share on July 31, 2025.
Aug 8, 2025
2024
ResMed Annual Report, Year Ended Jun 30, 2024
ResMed Inc. reported fiscal year 2024 (ended June 30, 2024) net revenue of $4,685.3 million, up 11% from $4,223.0 million in fiscal 2023. Gross profit rose to $2,655.3 million, with GAAP gross margin of 56.7% versus 55.8% a year earlier. Net income was $1,021.0 million, or $6.92 per diluted share, compared with $897.6 million, or $6.09 per diluted share, in fiscal 2023. The company operates two segments: Sleep and Respiratory Care, which generated $4,101.2 million of revenue, and Software as a Service (SaaS), which generated $584.1 million, up 17% primarily due to the MEDIFOX DAN acquisition. Profitability was affected by restructuring expenses of $64.2 million, comprising $28.6 million of employee severance and $33.2 million of intangible asset impairments tied to winding down certain business activities. Field safety notification expenses of $14.3 million related to masks with magnets and Astral ventilation devices also weighed on results. Operating cash flow improved sharply to $1,401.3 million from $693.3 million, mainly due to lower inventory purchases. The company repurchased $150.0 million of stock and paid dividends of $1.92 per share totaling $282.3 million. Total debt was $710.0 million at June 30, 2024, down from the prior year after repayment of the revolving credit facility, and $1,470.0 million remained available under that facility. The filing highlights ongoing patent litigation with NYU and Cleveland Medical, where the company says it is unable to estimate potential losses for matters still open. It also discusses risks from competition, including Philips' ongoing product recall, and from reimbursement changes and the expiration of the company's Corporate Integrity Agreement, which is expected to close out by the end of fiscal 2025.
Aug 9, 2024
2023
ResMed Annual Report, Year Ended Jun 30, 2023
ResMed Inc. (NYSE: RMD) reported fiscal year 2023 (year ended June 30, 2023) net revenue of $4.22 billion, up 18% from $3.58 billion, with net income of $897.6 million, or $6.09 per diluted share, compared with $779.4 million, or $5.30 per diluted share, in fiscal 2022. Growth was led by the Sleep and Respiratory Care segment, where net revenue rose to $3.73 billion, and by the Software as a Service (SaaS) segment, which rose to $498.0 million, driven largely by the MEDIFOX DAN acquisition completed on November 21, 2022 for $997.5 million. Gross margin declined slightly to 55.8% from 56.6%, reflecting unfavorable product mix, higher component and manufacturing costs, and foreign currency movements. Balance sheet and cash flow changed materially. Total assets rose to $6.75 billion and total debt reached $1.44 billion, up from $775.2 million, as the company borrowed under its revolving credit facility to fund the MEDIFOX DAN purchase. Operating cash flow was $693.3 million, compared with $351.1 million in fiscal 2022, which had included the $284.8 million final payment to the Australian Taxation Office. Cash and cash equivalents were $227.9 million at year end, and $745.0 million remained available under the revolving credit facility. The company paid dividends of $1.76 per share totaling $258.3 million and did not repurchase shares during the year. The filing also flags ongoing risks, including supply constraints on semiconductors and other components, competitor Philips' product recall, reimbursement pressure in the United States, healthcare fraud and privacy regulation, and pending patent litigation with New York University and Cleveland Medical Devices. Management states that it does not expect the outcome of these matters to have a material adverse effect on the consolidated financial statements taken as a whole.
Aug 11, 2023
2022
ResMed Annual Report, Year Ended Jun 30, 2022
ResMed Inc. (NYSE: RMD) reported its annual results for the fiscal year ended June 30, 2022 in this Form 10-K, filed August 12, 2022. Net revenue rose to $3,578.1 million from $3,196.8 million, an increase of 12% (13% on a constant currency basis). Gross profit was $2,024.3 million, with gross margin of 56.6% versus 57.5% a year earlier, as higher logistics and manufacturing costs offset favorable product mix and higher average selling prices. Net income increased to $779.4 million, or $5.30 per diluted share, compared with $474.5 million, or $3.24 per diluted share, in fiscal 2021. Fiscal 2021 results included a $1.70 per diluted share impact from unrecognized tax benefits related to the Australian Taxation Office transfer pricing dispute, which was settled in September 2021. The company operates two segments: Sleep and Respiratory Care, which generated $3,177.3 million in revenue, and Software as a Service (SaaS), which generated $400.8 million. Management attributed growth to recovering core sleep patient flow and increased demand following a recall by competitor Philips. Supply chain constraints, particularly for semiconductor chips, limited the company's ability to meet all available demand during the year. Operating cash flow fell to $351.1 million from $736.7 million, primarily due to the $284.8 million final ATO payment and higher inventory purchases. Cash and cash equivalents were $273.7 million at year end, with $1.4 billion available under the revolving credit facility. Total debt was $780.0 million, and the pending MEDIFOX DAN acquisition carries consideration of $994.2 million, expected to close in fiscal 2023 subject to regulatory clearances.
Aug 12, 2022
2021-A
ResMed Annual Report (Amendment), Year Ended Jun 30, 2021
This filing is Amendment No. 1 on Form 10-K/A from ResMed Inc. to its Annual Report for the fiscal year ended June 30, 2021, dated August 19, 2021. The filing was made solely to amend and restate Item 15 (Exhibits and Consolidated Financial Statement Schedules) to correct hyperlinks to exhibits that did not function in the Original Filing, which was filed on August 16, 2021. The amendment states that it does not update or modify any other disclosures and should be read together with the Original Filing. No financial statements are included in this amendment. The filing reports that as of August 12, 2021, ResMed had 145,681,186 shares of Common Stock outstanding, excluding 41,836,234 treasury shares. The aggregate market value of common equity held by non-affiliates as of December 31, 2020 was $30,662,112,869, based on the New York Stock Exchange closing price. The company is classified as a large accelerated filer, and the filing notes that it has an auditor attestation on internal control over financial reporting under Section 404(b) of Sarbanes-Oxley. The exhibit list references prior filings covering the MatrixCare merger agreement dated November 5, 2018, credit agreements with MUFG Union Bank, N.A. and Westpac Banking Corporation, a Note Purchase Agreement dated July 10, 2019 for 3.24% Series A and 3.45% Series B senior notes, and various executive and director compensation plans. Michael J. Farrell signed the filing as Chief Executive Officer.
Aug 19, 2021
2021
ResMed Annual Report, Year Ended Jun 30, 2021
ResMed Inc. (NYSE: RMD) reported its 10-K for the fiscal year ended June 30, 2021. The company describes itself as a global leader in digital health and cloud-connected medical devices, operating two segments: Sleep and Respiratory Care, and Software as a Service (SaaS). Net revenue rose to $3,196.8 million from $2,957.0 million, an increase of $239.8 million or 8% (6% on a constant currency basis). Gross margin was 57.5% versus 58.1% a year earlier, and net income fell to $474.5 million, or $3.24 per diluted share, from $621.7 million, or $4.27. The filing states that unrecognized tax benefits reduced diluted EPS by $1.70 for the year. The decline in earnings is driven mainly by the Australian Taxation Office (ATO) transfer pricing dispute. The company recorded $395.3 million of gross unrecognized tax benefits, including $47.5 million of accrued interest and penalties, and reports $248.7 million of net unrecognized tax benefits after $146.6 million of tax credits and deductions. Management says it is in advanced settlement discussions and believes it is more likely than not to succeed if the matter goes to litigation. Income tax expense rose to $409.2 million, and the effective tax rate increased to 46.3% from 15.2%. Excluding the unrecognized tax benefit, the effective rate was 18.2%. Operating cash flow was $736.7 million, cash and equivalents were $295.3 million, and total debt was $658.0 million at June 30, 2021. The company paid dividends of $226.7 million and made no share repurchases during the year. Management notes that COVID-19-related ventilator demand was immaterial in the year and is not expected to be material in fiscal 2022, while sleep device demand was affected by reduced new patient flow.
Aug 17, 2021
2020-A
ResMed Annual Report (Amendment), Year Ended Jun 30, 2020
This Form 10-K/A (Amendment No. 1) from ResMed Inc. amends the company's Annual Report on Form 10-K for the fiscal year ended June 30, 2020, which was originally filed with the SEC on August 12, 2020. The amendment states that it was filed solely to add the Consent of Independent Registered Public Accounting Firm, which was inadvertently omitted from the original filing. It makes no other changes, does not update the original disclosures for later events, and is dated March 29, 2021, with signature by Chief Executive Officer Michael J. Farrell. The cover page reports an aggregate market value of $22,240,443,784 held by non-affiliates as of December 31, 2019, based on the New York Stock Exchange closing price. As of August 7, 2020, the company had 144,900,654 shares of common stock, par value $0.004, outstanding, excluding 41,836,234 treasury shares. The company is classified as a large accelerated filer, and the report states that management's assessment of internal control over financial reporting was attested to by the registered public accounting firm. The amendment contains no financial statements. Its exhibits are the auditor consent (Exhibit 23.1) and the Section 302 certifications of the principal executive and principal financial officers (Exhibits 31.1 and 31.2). The Part III information is incorporated by reference from the definitive proxy statement for the 2020 Annual Meeting of Stockholders, held November 19, 2020.
Mar 30, 2021
2020
ResMed Annual Report, Year Ended Jun 30, 2020
ResMed Inc. reported fiscal 2020 (year ended June 30, 2020) net revenue of $2.96 billion, up from $2.61 billion in fiscal 2019, an increase of $350.4 million or 13% (15% on a constant currency basis). Net income rose to $621.7 million, or $4.27 per diluted share, compared with $404.6 million, or $2.80 per diluted share, a year earlier. Income from operations was $809.7 million versus $579.3 million. Growth was driven primarily by higher unit sales of devices and masks, including increased demand for ventilators due to COVID-19, and by the SaaS business, where revenue rose to $354.6 million from $275.8 million, mainly due to MatrixCare. Gross margin was 58.1% compared with 57.3% the prior year. The filing describes the company as a global leader in digital health and cloud-connected medical devices, operating two segments: Sleep and Respiratory Care and Software as a Service. Management states that COVID-19 is expected to temporarily reduce demand for sleep devices from new patients for some or all of fiscal 2021, while it expects lower demand for ventilators in fiscal 2021. Operating cash flow was $802.3 million and cash and cash equivalents were $463.2 million at June 30, 2020. Total debt was $1.2 billion, and the company suspended its share repurchase program during the year. The filing also highlights ongoing regulatory and legal exposure, including a $266 million Australian Taxation Office assessment for tax years 2009 to 2013, for which the company has recorded no expense because it believes it is more likely than not to prevail, and a December 2019 settlement with the U.S. Department of Justice totaling $40.6 million together with a five-year Corporate Integrity Agreement. Competitive bidding changes to U.S. Medicare reimbursement remain a key risk factor.
Aug 13, 2020
2019
ResMed Annual Report, Year Ended Jun 30, 2019
ResMed Inc. reported fiscal 2019 (year ended June 30, 2019) net revenue of $2,606.6 million, up 11% from $2,340.2 million in fiscal 2018 (13% on a constant currency basis). Gross profit rose to $1,536.6 million, a gross margin of 59.0% compared with 58.2% a year earlier. Net income was $404.6 million, or $2.80 per diluted share, versus $315.6 million, or $2.19 per diluted share, in fiscal 2018. Growth was led by the Software as a Service (SaaS) segment, whose revenue rose 76% to $275.8 million, largely from the MatrixCare and HEALTHCAREfirst acquisitions. Sleep and Respiratory Care revenue increased 7% to $2,330.8 million. The company's balance sheet shifted materially toward debt during the year. Total assets grew to $4.11 billion from $3.06 billion, goodwill rose to $1.86 billion, and total debt reached $1,274.0 million, driven by $951.4 million paid for business acquisitions, mainly funded by its credit facility. Subsequent to year end, on July 10, 2019, ResMed issued $500.0 million of senior notes (3.24% due 2026 and 3.45% due 2029) and used the proceeds to pay down the revolving credit facility. Investors should also note regulatory and legal exposure. ResMed has tentatively agreed to pay $39.5 million to resolve government investigations of its business practices, and has reserved $41.2 million. The Australian Taxation Office asserts $151.7 million in additional income tax, $38.4 million in interest and $75.9 million in penalties for tax years 2009 to 2013; the company disputes these assessments and has recorded no expense for them. Cash flow from operations declined to $459.1 million from $505.0 million, mainly due to higher inventories and tax payments.
Aug 8, 2019
2018
ResMed Annual Report, Year Ended Jun 30, 2018
ResMed Inc. reported fiscal year 2018 (ended June 30, 2018) net revenue of $2,340.2 million, up 13% from $2,066.7 million in fiscal 2017 (10% on a constant currency basis). Gross profit rose to $1,362.2 million, with gross margin of 58.2% versus 58.1% a year earlier. Net income fell to $315.6 million, or $2.19 per diluted share, from $342.3 million, or $2.40, primarily due to $138.0 million of additional income tax expense from the U.S. Tax Act, which includes a $126.9 million transition tax payable over eight years. Income from operations rose to $541.8 million from $425.8 million. Operating cash flow was $505.0 million, and cash and cash equivalents ended the year at $188.7 million after $796.2 million of net debt repayment. The company describes itself as a global leader in medical devices and cloud-based software for sleep-disordered breathing, COPD and neuromuscular disease. Devices accounted for about 56% of fiscal 2018 net revenue and masks, diagnostic products and accessories for about 38%. Research and development spending was $155.1 million, about 6.6% of net revenue. Total debt was $281.5 million at June 30, 2018, down from $1.08 billion a year earlier, following a new $800.0 million revolving credit agreement and a $200.0 million term credit agreement entered in April 2018. Key risks flagged in the filing include an Australian Taxation Office assessment asserting $151.7 million in additional income tax and $38.4 million in accrued interest, with a further $75.9 million penalty claim, of which $75.9 million has already been paid; ongoing patent litigation with Fisher & Paykel Healthcare; U.S. government subpoenas from the Office of Inspector General; and Medicare competitive bidding changes that reduced CPAP reimbursement. Quarterly dividend was raised to $0.37 per share from $0.35, announced August 2, 2018.
Aug 17, 2018
2017
ResMed Annual Report, Year Ended Jun 30, 2017
ResMed Inc. reported net revenue of $2,066.7 million for the fiscal year ended June 30, 2017, up 12% from $1,838.7 million in fiscal 2016. Gross profit rose to $1,201.7 million, or 58.1% of net revenue, and income from operations was $425.8 million. Net income declined to $342.3 million from $352.4 million, and diluted earnings per share fell to $2.40 from $2.49, a decrease of 4%. Revenue excluding Brightree, the business management software company acquired in April 2016, was $1,928.7 million, an increase of 7%. Brightree contributed $138.1 million of revenue in fiscal 2017. Devices accounted for 56% of net revenue and masks and other accessories for 37%. Cash flow and balance sheet items reflect the acquisition activity. Net cash provided by operating activities was $414.1 million, compared with $547.9 million in fiscal 2016, which the company attributed mainly to higher accounts receivable and income tax payments. Cash and cash equivalents were $821.9 million at June 30, 2017. Total debt was approximately $1.1 billion, with $1,080.0 million outstanding under the revolving credit facility, which was increased to $1.3 billion in January 2017. The company temporarily suspended its share repurchase program due to recent acquisitions and expects to resume it during fiscal 2018. It also announced a quarterly dividend increase from $0.33 to $0.35 per share on August 1, 2017. The filing highlights regulatory and reimbursement pressures. Medicare payment for CPAP devices in non-competitive bidding areas was reduced by approximately 60% in urban areas and approximately 56% in rural areas compared with 2015 rates. The 2.3% medical device excise tax was suspended for 2016 and 2017 and is scheduled to return on January 1, 2018 absent further Congressional action. The company also disclosed federal administrative subpoenas from the Office of Inspector General received in July and November 2016, ongoing patent litigation with Fisher & Paykel Healthcare, and a May 2015 SERVE-HF trial safety signal showing a statistically significant, 2.5% absolute increased risk of cardiovascular mortality for patients receiving ASV therapy in that trial.
Aug 4, 2017
2016-A
ResMed Annual Report (Amendment), Year Ended Jun 30, 2016
ResMed Inc. reported net revenue of $1,838,713 thousand ($1.84 billion) for the fiscal year ended June 30, 2016, up from $1,678,912 thousand in fiscal 2015. Gross profit was $1,066,497 thousand and income from operations was $428,952 thousand, compared with $409,236 thousand a year earlier. Net income was $352,409 thousand, roughly flat with $352,886 thousand in fiscal 2015, and diluted earnings per share were $2.49 versus $2.47. Net cash provided by operating activities rose to $547,933 thousand from $383,180 thousand. The most significant event of the year was the April 4, 2016 acquisition of Brightree LLC, a provider of cloud-based clinical and business management software for the post-acute care industry, for a total purchase consideration of $802 million. The company funded it with cash, an increase in its revolving credit facility from $700 million to $1 billion, and a $300 million one-year term loan. Total debt was $1,175,000 thousand at June 30, 2016, comprising $875,000 thousand of long-term debt and $300,000 thousand of short-term debt, and goodwill increased to $1,059,245 thousand from $264,261 thousand. The company also completed several smaller acquisitions, including Curative Medical Technology, Maribo Medico, Bennett Precision Tooling and Inova Labs. The company stated that it operates predominantly in a single segment, sleep and respiratory disorders, and that Brightree's operations were not material to its results and were not separately reported. Device sales were $1,064.2 million and masks and other accessories were $745.6 million in fiscal 2016. Dividends declared rose to $1.20 per share from $1.12, and share repurchases were suspended for the six months ended June 30, 2016 following the acquisitions. KPMG LLP issued an unqualified opinion on the financial statements and on internal control over financial reporting.
Jan 13, 2017
2016
ResMed Annual Report, Year Ended Jun 30, 2016
ResMed Inc. reported net revenue of $1,838.7 million for the fiscal year ended June 30, 2016, up 10% from $1,678.9 million in fiscal 2015 (13% on a constant currency basis). Net income was $352.4 million, or $2.49 per diluted share, compared with $352.9 million, or $2.47 per diluted share, a year earlier. Gross margin declined to 58.0% from 60.2%, which the company attributed to unfavorable product and geographic mix and lower average selling prices. Operating expenses rose with the acquisitions of Brightree, Curative Medical and Inova Labs, and restructuring and amortization charges increased. The balance sheet changed substantially during the year. Total assets rose to $3.26 billion from $2.18 billion, driven by goodwill of $1.06 billion and other intangible assets of $299.8 million. Total debt was $1.175 billion at June 30, 2016, comprising $875.0 million under the revolving credit facility and $300.0 million under a one-year term loan, both used largely to fund the $802 million Brightree acquisition. Operating cash flow was $547.9 million and cash and cash equivalents were $731.4 million, of which $690.5 million was held by non-U.S. subsidiaries. The company repurchased $102.1 million of stock, has temporarily suspended its buyback program, and raised its quarterly dividend to $0.33 per share from $0.30. The filing also highlights several risks. ResMed disclosed an administrative subpoena from the Office of Inspector General received in July 2016, ongoing patent and antitrust litigation with BMC Medical and 3B Medical, and a cardiovascular safety signal from the SERVE-HF trial that led to revised labeling for ASV devices. Medicare competitive bidding continues to reduce reimbursement, with the filing citing an average reduction of approximately 47% in Round 2 for CPAP and respiratory devices.
Aug 5, 2016
2015
ResMed Annual Report, Year Ended Jun 30, 2015
ResMed Inc. reported fiscal 2015 (year ended June 30, 2015) net revenue of $1,678.9 million, up $123.9 million or 8% from $1,555.0 million, or 13% on a constant currency basis. Flow generators grew 15% to $975.9 million, while masks and other accessories declined 1% to $703.0 million. Gross margin fell to 60.2% from 63.7%, mainly due to lower average selling prices, unfavorable product and geographic mix, and exchange rate effects. Net income rose to $352.9 million, or $2.47 per diluted share, compared with $345.3 million, or $2.39 per diluted share, in fiscal 2014. Cash generated from operations was $383.2 million, and cash and cash equivalents were $717.2 million at year end. Inventories increased $81.4 million, or 49%, to $246.9 million, which the company attributed mainly to new product introductions and higher unit sales. The company repurchased 2.7 million shares for $152.6 million and paid dividends of $157.3 million. It announced a quarterly dividend increase from $0.28 to $0.30 per share. Long-term debt was $300.0 million under a $700 million revolving credit facility. The filing highlights risk items for investors. It discloses preliminary SERVE-HF trial results showing a statistically significant 2.5 percent absolute increased risk of cardiovascular mortality for patients receiving ASV therapy, with the company working with regulators to revise labels and informing providers. It also cites Medicare competitive bidding, where the second round produced an average reduction of approximately 47% for CPAP and respiratory devices on a weighted average basis, and ongoing patent litigation with BMC Medical and an antitrust suit filed by its distributor 3B Medical.
Aug 7, 2015
2014
ResMed Annual Report, Year Ended Jun 30, 2014
ResMed Inc. reported net revenue of $1,554,973 thousand ($1.55 billion) for the fiscal year ended June 30, 2014, an increase of 3% from $1,514.5 million in fiscal 2013. Gross profit rose to $989.8 million, and gross margin improved to 63.7% from 62.1%, driven mainly by manufacturing and supply chain cost savings, favorable product mix, currency effects and geographic mix, partly offset by lower average selling prices. Net income increased to $345.3 million, or $2.39 per diluted share, compared with $307.1 million, or $2.10 per diluted share, a year earlier. Net income grew 12% and diluted EPS grew 14%. Operating cash flow was $391.3 million, and cash and cash equivalents ended the year at $905.7 million. The company repurchased 4.4 million shares for $208.1 million and paid dividends of $141.5 million. Long-term debt rose to $300.8 million under a $700 million revolving credit facility entered into on October 31, 2013. In the filing, management noted that the North and Latin America segment declined 1% amid increased competitor activity and lower average selling prices, while international revenue grew 8%. The filing also highlights regulatory and reimbursement exposure. CMS competitive bidding reduced Medicare payment rates for CPAP and respiratory devices by an average of approximately 47% in the second round, and CMS announced a Round 2 Recompete. Management stated it cannot predict the full impact of the Patient Protection and Affordable Care Act. Intellectual property litigation against APEX and BMC Medical Co. is ongoing, and management does not expect these matters to have a material adverse effect on the consolidated financial statements.
Aug 8, 2014
2013
ResMed Annual Report, Year Ended Jun 30, 2013
ResMed Inc. reported record fiscal 2013 results for the year ended June 30, 2013, with net revenues of $1,514.5 million, up from $1,368.5 million in fiscal 2012, an increase of $145.9 million or 11%. Gross profit rose to $940.7 million, a gross margin of 62.1% compared with 60.0% a year earlier, driven by manufacturing and supply chain cost savings and a favorable product mix. Net income was $307.1 million, or $2.10 per diluted share, versus $254.9 million, or $1.71 per diluted share, in fiscal 2012. Operating cash flow was $402.8 million, and cash and cash equivalents totaled $876.0 million at June 30, 2013. The company reports that the sleep-disordered breathing market continues to grow, citing rising awareness of obstructive sleep apnea and its links to cardiac disease, diabetes and hypertension. Fiscal 2013 product launches included the VPAP COPD, Quattro Air, Swift FX Bella, Swift FX Nano and SleepSeeker, and R&D spending was $120.1 million, about 8% of net revenues. Flow generators accounted for approximately 54% of net revenues in fiscal 2013, and North and Latin America contributed 56%. The filing also flags several risks. The Medicare competitive bidding program's second round set an average reduction of approximately 47% for CPAP and respiratory devices, effective July 1, 2013. The PPACA imposes a 2.3% excise tax on certain medical devices beginning in 2013. A $24.8 million education, research and settlement charge related to the University of Sydney was expensed in fiscal 2013. The $300.0 million credit facility terminates on February 10, 2014, and management has begun negotiating a replacement. The board also declared an increased quarterly dividend of $0.25 per share, up from $0.17.
Aug 13, 2013
2012
ResMed Annual Report, Year Ended Jun 30, 2012
ResMed Inc. (NYSE: RMD) is a developer, manufacturer and distributor of medical equipment for treating, diagnosing and managing sleep-disordered breathing (SDB) and other respiratory disorders, with its core products being CPAP, bilevel and ventilation flow generators, masks, and diagnostic devices. For fiscal year ended June 30, 2012, net revenues rose 10% to $1,368.5 million, gross profit increased 11% to $820.7 million, and gross margin held at 60%. Net income was $254.9 million, or $1.71 per diluted share, up 19% on a per-share basis, aided by share repurchases and a lower effective tax rate of 23.2%. The company reported growth in North and Latin America (up 13%) and in markets outside that region (up 7%), with flow generators up 5% and masks, motors and other accessories up 16%. The company's balance sheet and cash position remained strong. Cash and cash equivalents were $809.5 million at June 30, 2012, of which $747.8 million was held by non-U.S. subsidiaries and indefinitely invested outside the United States. Operating cash flow was $383.2 million. Long-term debt rose to $250.8 million, consisting of $250.0 million outstanding under a credit facility. During the year ResMed repurchased 13.6 million shares for $391.2 million. In August 2012 the board declared its first quarterly dividend, $0.17 per share, to begin in fiscal 2013. The filing highlights several risks for investors. Medicare competitive bidding is expected to expand to 91 competitive bidding areas in the summer of 2013, after a first round that reduced CPAP and respiratory device payment rates by an average of approximately 32%. The PPACA imposes a 2.3% excise tax on medical device sales beginning in 2013. The company also faces FDA 510(k) process reforms, product liability exposure, a University of Sydney lawsuit that the company does not expect to have a material adverse effect, and a substantial portion of its assets located outside the United States.
Aug 14, 2012
2011
ResMed Annual Report, Year Ended Jun 30, 2011
ResMed Inc. (NYSE: RMD) reported record results for fiscal year ended June 30, 2011. Net revenues rose to $1,243.1 million, an increase of $150.8 million or 14% over fiscal 2010's $1,092.4 million. Gross profit reached $741.3 million, up $85.8 million or 13%, with gross margin steady at 60%. Net income was $227.0 million, or $1.44 per diluted share, versus $190.1 million, or $1.23 per diluted share, in the prior year. Growth was driven by higher unit sales of flow generators, masks and accessories, with newer products such as the S9 flow generators and Quattro FX and Mirage FX masks cited as contributors. Sales in North and Latin America rose to $662.2 million, and sales outside that region rose to $580.9 million. The balance sheet strengthened over the year. Cash and cash equivalents were $735.3 million, up from $488.8 million, and total assets reached $2.07 billion. Operating cash flow was $283.2 million. The company repurchased 4,892,962 shares for $160.1 million during the year. It also entered a $300 million three-year revolving credit facility, of which $100.0 million was outstanding at June 30, 2011. Management expects selling, general and administrative expense to stay broadly around 30% of revenue and research and development expense to be in the range of 8% of revenue going forward. The filing also flags material risks. These include competitive pressure, reimbursement changes such as Medicare competitive bidding (with a 1st-round average reduction of approximately 32% for CPAP and respiratory assist devices), health care reform including a 2.3% medical device excise tax beginning in 2013, FDA 510(k) process changes, currency exposure, and dependence on single-source suppliers. The company also disclosed a 2007 worldwide recall of approximately 300,000 S8 flow generators, which cost $62.8 million.
Aug 17, 2011
2010
ResMed Annual Report, Year Ended Jun 30, 2010
ResMed Inc. (NYSE: RMD) filed its annual report on Form 10-K for the fiscal year ended June 30, 2010. The company develops, manufactures and distributes medical equipment for treating, diagnosing and managing sleep-disordered breathing (SDB), including obstructive sleep apnea (OSA), and reports a single operating segment. Net revenues rose 19% to $1,092.4 million from $920.7 million, gross profit increased to $655.5 million (60% of revenue, unchanged year over year), and net income grew to $190.1 million, or $2.45 per diluted share, from $146.4 million, or $1.90 per diluted share. Income from operations reached $240.4 million, and operating cash flow was $188.2 million, down from $238.9 million, which management attributed primarily to higher income tax payments. Balance sheet strength improved, with cash and cash equivalents of $488.8 million, total assets of $1.63 billion, and stockholders' equity of $1.29 billion. Long-term debt was eliminated from non-current liabilities, leaving $121.7 million of debt classified as current, mainly the revolving facility and syndicated facility tranches maturing in 2010 and 2011. The company repurchased 2,519,843 shares for $135.8 million during the year. On August 5, 2010, the Board approved a two-for-one stock split payable as a 100% stock dividend, with shareholders of record on August 17, 2010 receiving one additional share for each share held. Key risks highlighted in the filing include competition, reimbursement pressure, and proposed U.S. Medicare competitive bidding, where CMS's first-round average reduction for CPAP and respiratory assist devices is stated as approximately 32%. The filing also cites the PPACA's 2.3% medical device excise tax beginning in 2013, foreign currency exposure, a German tax audit, an April 2007 S8 flow generator recall with total cost of $62.8 million, and pending litigation with the University of Sydney and Vaughn Medical Equipment Repair Service.
Aug 17, 2010
2009
ResMed Annual Report, Year Ended Jun 30, 2009
ResMed Inc. reported fiscal year 2009 (ended June 30, 2009) net revenues of $920.7 million, up from $835.4 million in fiscal 2008, an increase of 10%. Excluding unfavorable foreign currency movements, sales rose 15%. Gross profit increased to $553.8 million, with gross margin at 60% compared with 59% a year earlier. Net income was $146.4 million, or $1.90 per diluted share, versus $110.3 million, or $1.40 per diluted share, in fiscal 2008. The filing attributes the margin improvement mainly to the weaker Australian dollar against the U.S. dollar, favorable product mix, and manufacturing and supply chain savings. Growth was strongest in North and Latin America, where net revenue rose 20% to $493.4 million, driven by awareness of sleep-disordered breathing and new products such as the S8 II flow generator and Swift LT mask. Sales outside North and Latin America were essentially flat in reported dollars at $427.3 million, though international sales grew 10% excluding currency effects. Operating cash flow was $238.9 million, and cash and cash equivalents ended the year at $415.7 million. The company repurchased 1,826,307 shares for $65.7 million during the year and adopted a new authorization for up to 10.0 million shares. Total long-term debt was $161.7 million, all at variable interest rates. The filing also notes that the Syndicated Facility's $50 million Tranche D loan must be repaid by September 30, 2009, and it discloses ongoing matters including a German tax audit and a University of Sydney intellectual property lawsuit.
Aug 21, 2009
2008
ResMed Annual Report, Year Ended Jun 30, 2008
ResMed Inc. (NYSE: RMD) reported record results for the fiscal year ended June 30, 2008. Net revenues rose 17% to $835.4 million from $716.3 million, and net income was $110.3 million, or $1.40 per diluted share, compared with $66.3 million, or $0.85 per diluted share, in fiscal 2007. The prior year included a $59.7 million charge for a voluntary worldwide recall of early production S8 flow generators. Gross profit as a percentage of net revenue increased to 59% from 54%. Excluding the recall expenses, diluted earnings per share were $1.43, up 4% from $1.38. Management attributed the revenue growth to higher unit sales of flow generators, masks and accessories, and to new full face masks. Movements in international currencies added approximately $42.7 million to revenue. Cash generated from operations was $137.8 million, a 51% increase over the prior year, and cash and cash equivalents were $321.1 million at June 30, 2008. The company repurchased 2,570,700 shares for $99.5 million during the year and has not paid cash dividends since its initial public offering. Total debt was $137.7 million, all at variable interest rates. Research and development spending was $60.5 million, or 7% of revenue. The company also began construction of a new corporate headquarters in San Diego, which it expects to complete in the final quarter of fiscal 2009. The filing identifies several risks. Sales outside North and Latin America accounted for approximately 51% of net revenues in fiscal 2008. The company faces competition from larger rivals, including Philips, DeVilbiss, Nellcor Puritan Bennett and Fisher & Paykel Healthcare. Reimbursement changes and the Medicare competitive bidding program for durable medical equipment could affect pricing. The S8 recall's final cost could exceed current estimates. A German tax audit and a University of Sydney intellectual property lawsuit remain ongoing.
Aug 28, 2008
2007
ResMed Annual Report, Year Ended Jun 30, 2007
ResMed Inc. (NYSE: RMD) reported its fiscal 2007 Form 10-K for the year ended June 30, 2007. Net revenues rose to $716.3 million from $607.0 million, an increase of $109.3 million or 18%, driven by higher unit sales of flow generators, masks and accessories, with favorable currency movements adding approximately $20.5 million. Net income fell to $66.3 million, or $0.85 per diluted share, from $88.2 million, or $1.16 per diluted share, in fiscal 2006. The decline reflects a $59.7 million voluntary product recall charge tied to approximately 300,000 early-production S8 flow generators, which reduced diluted earnings per share by $0.53 on an after-tax basis. Excluding the recall, diluted earnings per share was $1.38, an increase of 19% over the prior year, according to the filing. Gross margin fell to 54% from 62%, primarily because of the recall charge; excluding it, gross margin was 62%, consistent with the prior year. Operating expenses rose, with selling, general and administrative expenses up $37.1 million to $237.3 million and research and development up 35% to $50.1 million. The company ended the year with cash and cash equivalents of $257.8 million, working capital of $466.4 million, and stockholders' equity of $931.2 million. Long-term debt less current maturities was $87.6 million, and the company had no amounts outstanding under its $75 million revolving loan. Operating cash flow was $91.1 million, down from $99.0 million, while capital expenditures were $77.6 million, including construction of a new corporate headquarters in San Diego, expected to be completed in March 2009. The filing also notes that the company faces ongoing risks, including the remaining recall costs, which management expects to continue through fiscal 2008, along with an ongoing German tax audit and an Australian university's royalty claim pending in the Federal Court of Australia. Management stated that these matters are not expected to have a material adverse effect on the consolidated financial statements.
Aug 28, 2007
2006
ResMed Annual Report, Year Ended Jun 30, 2006
ResMed Inc. reported fiscal 2006 (year ended June 30, 2006) net revenues of $607.0 million, up 43% from $425.5 million in fiscal 2005. The filing attributes the growth to higher unit sales of flow generators, masks and accessories, incremental sales from acquisitions, and new products such as the Mirage Swift mask and the S8 flow generator. Excluding acquisitions and unfavorable currency movements, sales grew 32%. Gross profit rose to $376.9 million, but gross margin declined to 62% of revenue from 65%, which the company attributes to product and geographic mix and to stock-based compensation. Income from operations increased to $131.3 million from $97.4 million, and net income rose to $88.2 million, or $1.16 per diluted share, from $64.8 million, or $0.91. Results include $15.3 million of stock-based compensation under SFAS 123(R), adopted July 1, 2005, and a $3.5 million one-time tax expense on the repatriation of $75 million of foreign earnings. The balance sheet strengthened during the year. Holders of all $113.25 million of the 4% Convertible Subordinated Notes due 2006 converted them into about 3.74 million common shares, and total stockholders' equity increased to $738.1 million from $474.1 million. Cash and cash equivalents were $219.5 million and working capital was $381.3 million at June 30, 2006. Long-term debt was $116.2 million, consisting mainly of the new syndicated facility, and the company had a $75 million revolving loan with no amounts outstanding. Capital expenditures were $102.7 million, mainly for a new research and development and manufacturing building in Sydney, Australia, and land in San Diego for a corporate headquarters. The filing describes a company that sells sleep-disordered breathing products in over 67 countries. Approximately half of revenues come from outside the United States, and the company faces ongoing competition, reimbursement pressure, FDA regulatory requirements, a German tax audit, and patent litigation. The company has not paid cash dividends since its initial public offering and intends to retain earnings for operations and expansion.
Sep 12, 2006
2005
ResMed Annual Report, Year Ended Jun 30, 2005
ResMed Inc. filed its Form 10-K for the fiscal year ended June 30, 2005, reporting net revenues of $425.5 million, up from $339.3 million, an increase of $86.2 million or 25%. Gross profit rose to $274.9 million from $216.7 million, with gross margin improving to 65% from 64%. Net income was $64.8 million, or $1.82 per diluted share, compared with $57.3 million, or $1.63 per diluted share, in fiscal 2004. Results include a $5.3 million in-process research and development charge and $5.2 million in restructuring expenses tied to integrating ResMed Germany and MAP. Selling, general and administrative expenses rose to 32% of net revenue from 31%. The company made several acquisitions during the year, most notably Saime SA, acquired May 19, 2005 for net cash consideration of $40.5 million, along with Hoefner and Resprecare. Goodwill increased to $181.1 million from $106.1 million, and total assets grew to $774.1 million from $549.2 million. Inventories rose 60% to $89.1 million and accounts receivable rose 55% to $104.0 million, with the filing attributing receivable growth partly to slower collections in Germany. Operating cash flow was $71.1 million, down from $76.5 million. Balance sheet liquidity shifted because the $113.3 million of 4% convertible subordinated notes mature June 20, 2006 and are now classified as current. Working capital fell to $141.7 million from $222.2 million. The company also financed Saime with a five-year 50 million Euro loan from HSBC Bank Australia Limited, and on August 10, 2005 declared a two-for-one stock split. The filing notes that FDA authorized the VPAP Adapt SV on August 16, 2005, with material sales not expected until the third quarter of fiscal 2006 or later.
Sep 13, 2005
2004
ResMed Annual Report, Year Ended Jun 30, 2004
ResMed Inc. (NYSE: RMD) reported its fiscal year ended June 30, 2004 in this Form 10-K filed August 31, 2004. Net revenues rose to $339.3 million from $273.6 million, an increase of $65.7 million or 24%, driven by higher unit sales of flow generators, masks and accessories, with about $18.6 million of the growth attributed to currency appreciation against the U.S. dollar. Gross profit increased to $216.7 million, and gross margin edged up to 64% from 63%. Income from operations was $85.4 million versus $67.2 million a year earlier, and net income reached $57.3 million, or $1.63 per diluted share, compared with $45.7 million, or $1.33 per diluted share. The company generated $76.5 million in operating cash flow and spent $57.2 million on capital expenditures, $40.9 million of which related to its new manufacturing facility at Norwest in Sydney. Total assets grew to $544.2 million and stockholders' equity to $361.5 million. Convertible subordinated notes of $113.25 million remain outstanding and mature June 20, 2006. The company has not paid cash dividends since its IPO and does not intend to in the foreseeable future. ResMed describes itself as a developer, manufacturer and distributor of equipment for treating and diagnosing sleep-disordered breathing, centered on CPAP and related products. The filing notes that CPAP and VPAP flow generators accounted for about 50% of net revenues in fiscal 2004, and that North and Latin America represented 49% of revenues. Research and development spending rose to $26.2 million, and the company reports that its patent litigation with Respironics and Fisher & Paykel Healthcare was settled in 2003.
Aug 31, 2004
2003
ResMed Annual Report, Year Ended Jun 30, 2003
ResMed Inc. (NYSE: RMD) filed its Form 10-K for the fiscal year ended June 30, 2003, reporting net revenues of $273.6 million, up from $204.1 million, an increase of $69.5 million or 34%. Gross profit rose to $173.1 million from $133.2 million, though gross margin fell to 63% from 65%, which the company attributed mainly to a stronger Australian dollar raising manufacturing costs and the lower-margin motor sales of Servo Magnetics Inc. Net income increased to $45.7 million, or $1.33 per diluted share, from $37.5 million, or $1.10 per diluted share, in fiscal 2002. Operating cash flow was $59.3 million, and cash and cash equivalents reached $114.5 million at year end. The company describes itself as a leading developer and distributor of sleep-disordered breathing equipment, with CPAP, VPAP and AutoSet flow generators accounting for approximately 54% of net revenues in fiscal 2003. Sales in North and Latin America were $130.7 million, while international markets reached $142.8 million, and the filing cites about $5.0 million of SARS-related sales to China. Research and development spending rose to $20.5 million, or 7.5% of revenues, and the company is building a new manufacturing facility in Sydney, with completion expected in the first half of calendar 2004. The filing also discloses that ResMed settled its patent litigation with Fisher & Paykel Healthcare and, under agreements with Respironics, will dismiss all claims with prejudice. Convertible subordinated notes outstanding were reduced to $113.25 million from $123.25 million after $10.0 million of repurchases during the year. The company has not paid cash dividends and does not intend to pay them in the foreseeable future.
Sep 12, 2003
2002
ResMed Annual Report, Year Ended Jun 30, 2002
ResMed Inc. (filed under this name in its June 30, 2002 fiscal-year 10-K) is a developer, manufacturer and distributor of medical equipment for treating, diagnosing and managing sleep disordered breathing (SDB), primarily obstructive sleep apnea (OSA). Its core products are nasal CPAP, VPAP and AutoSet flow generators, mask systems, diagnostic products and accessories, sold in over 60 countries through subsidiaries and independent distributors. For fiscal 2002, net revenues rose to $204.1 million from $155.2 million, a 32% increase, while gross margin declined to 65% from 68% and net income reached $37.5 million, or $1.10 diluted earnings per share, compared with $11.6 million in fiscal 2001, which included a $17.7 million in-process R&D write-off. The company expanded through acquisitions during the year, including Servo Magnetics Inc. (about $32.6 million, partly paid in 853,448 shares) and Labhardt AG, and it recorded a $6.5 million gain on extinguishment of debt after repurchasing $56.8 million face value of its 4% convertible subordinated notes. Convertible notes outstanding fell to $123.3 million, and total stockholders' equity rose to $192.9 million from $100.4 million. Cash from operations was $35.6 million, and capital expenditures were $28.2 million, largely for land in Sydney for a new manufacturing and R&D site. Key risks cited in the filing include intense competition from Respironics, DeVilbiss and Nellcor Puritan Bennett, dependence on home health care dealers and sleep clinics, foreign currency exposure, reimbursement uncertainty, FDA regulation, and ongoing patent litigation, including a lawsuit filed against Fisher & Paykel Healthcare on August 26, 2002.
Sep 11, 2002
2001
ResMed Annual Report, Year Ended Jun 30, 2001
ResMed Inc. (filed under the name ResMed Inc, now the same company, ticker RMD) reported fiscal 2001 (year ended June 30, 2001) net revenues of $155.2 million, up from $115.6 million in fiscal 2000, an increase of $39.5 million or 34%. Net income fell to $11.6 million, or $0.35 diluted earnings per share, from $22.2 million, or $0.69, in fiscal 2000. The decline reflects a $17.7 million charge for purchased in-process research and development and a $0.55 million restructuring provision, both tied to the February 2001 acquisition of MAP Medizin-Technologie GmbH for total consideration of $55.4 million. Gross profit rose to $104.8 million, with gross margin steady at 68%. The balance sheet changed significantly during the year. On June 20, 2001, the company issued $150.0 million of 4% convertible subordinated notes due 2006, and an additional $30.0 million was issued on July 3, 2001 upon exercise of the over-allotment option, bringing the total to $180.0 million. Cash and cash equivalents plus marketable securities rose to $102.8 million at June 30, 2001, from $22.0 million a year earlier, and working capital increased to $144.3 million. Total assets were $288.1 million, and long-term debt stood at $150.0 million. The filing highlights ongoing patent litigation against Respironics, the company's main U.S. competitor, and reports that sales outside North and Latin America were about 48% of net revenues in fiscal 2001. Management expects the MAP acquisition to raise Europe's share of revenue and expects sales outside the Americas to exceed 50% of net revenues going forward. The company has not paid cash dividends and does not intend to do so in the foreseeable future.
Sep 20, 2001
2000
ResMed Annual Report, Year Ended Jun 30, 2000
ResMed Inc. (filed under this name, now trading on the NYSE as RMD) reported fiscal 2000 results for the year ended June 30, 2000, showing net revenues of $115.6 million, up from $88.6 million in fiscal 1999, and net income of $22.2 million, up from $16.1 million. Gross profit rose to $78.6 million, and the filing states gross profit as a percentage of net revenues increased to 68.0% from 66.8%. Income from operations was $33.1 million versus $25.3 million a year earlier. Diluted earnings per share were $0.69 compared with $0.52, after a two-for-one stock split effective March 31, 2000. The company attributes the revenue growth primarily to higher unit sales of flow generators and accessories in the Americas and Europe, while noting that a decline in European exchange rates and changes in domestic reimbursement rules for certain VPAP II ST systems had a negative effect. The balance sheet strengthened, with total assets of $115.6 million and stockholders' equity of $94.0 million at June 30, 2000. Cash and cash equivalents plus marketable securities were approximately $22.0 million, and working capital was $47.6 million. Operating cash flow was $20.3 million. Capital spending included completion of the Australian manufacturing facility in the prior year and the purchase of a Poway, California headquarters for $17.2 million, funded partly by a $20 million revolving facility with Union Bank of California. The company states it does not intend to pay cash dividends in the foreseeable future. The filing highlights ongoing patent litigation, including a pending action against Respironics and a lawsuit filed March 31, 2000 against MPV Truma and Tiara Medical Systems over Mirage mask designs. The company also disclosed a claim by Respironics and its Australian distributor for lost profits of approximately $1,000,000. Management reports no significant Year 2000 issues.
Sep 25, 2000
1999
ResMed Annual Report, Year Ended Jun 30, 1999
ResMed Inc. (Nasdaq: RESM) is a designer, manufacturer and distributor of medical equipment for diagnosing and treating sleep disordered breathing (SDB), chiefly obstructive sleep apnea (OSA). The company sells its CPAP, VPAP and AutoSet systems, masks and accessories in over 40 countries through wholly owned subsidiaries and independent distributors. For fiscal 1999 (year ended June 30, 1999), net revenues rose to $88.6 million from $66.5 million, and net income increased to $16.1 million from $10.6 million, with diluted earnings per share of $1.04 versus $0.71. Gross profit as a percentage of net revenues increased to 66.8% from 65.3%, driven by manufacturing efficiencies and higher-margin bilevel units. Growth was broad-based geographically, with North America representing 57% of net revenues in fiscal 1999 versus 52% in fiscal 1998, and Europe at 34% versus 35%. Management attributed the gains to unit sales growth and a shift toward higher-priced bilevel products such as the VPAP II ST. Flow generators accounted for approximately 64% of net revenues in fiscal 1999. Cash flow from operations improved to $18.2 million from $6.8 million, but the company spent $9.9 million on a new manufacturing facility in Sydney, Australia, and cash and marketable securities declined to $16.7 million from $20.7 million. Key risks disclosed include competition from larger rivals such as Respironics, DeVilbiss and Nellcor Puritan Bennett, reliance on third-party reimbursement, foreign currency exposure to the Australian dollar, and ongoing patent litigation against Respironics. The company does not intend to pay cash dividends in the foreseeable future, and it reported that its Year 2000 compliance costs were expected to be approximately $100,000.
Sep 15, 1999
1998
ResMed Annual Report, Year Ended Jun 30, 1998
ResMed Inc. is a designer, manufacturer and distributor of medical equipment for treating and diagnosing sleep disordered breathing (SDB), primarily obstructive sleep apnea (OSA). Its products include nasal CPAP and VPAP flow generators, AutoSet automated CPAP and diagnostic systems, and mask systems such as the Mirage. The company sells in over 40 countries through fully owned subsidiaries and independent distributors. For fiscal year ended June 30, 1998, net revenues rose to $66.52 million from $49.18 million, and net income rose to $10.61 million from $7.47 million, with diluted earnings per share of $1.41 versus $1.02. Gross margin improved to 65.3% from 58.7%, aided by manufacturing efficiencies, higher-margin diagnostic and bi-level units, and a 21% devaluation of the Australian dollar, in which its manufacturing costs are denominated. Profitability was held back by other expense of $1.25 million, which included foreign currency losses of $4.0 million from hedging structures tied to the Australian dollar decline. Cash and marketable securities fell to $20.7 million from $28.0 million, reflecting construction of a new Sydney manufacturing facility expected to be completed by early calendar 1999. Operating cash flow was $6.8 million for the year. The company faces ongoing patent litigation with Respironics, Inc., including a complaint alleging infringement of three ResMed patents and a separate Australian Trade Practices Act claim seeking approximately $1,000,000 in damages. The filing also notes that its Australian CPAP patent was revoked in 1994, which has reduced its market share in Australia. The company does not intend to pay cash dividends in the foreseeable future.
Sep 15, 1998
1997
ResMed Annual Report, Year Ended Jun 30, 1997
ResMed Inc., a Delaware corporation headquartered operationally in Sydney, Australia, designs, manufactures and markets equipment for the diagnosis and treatment of sleep disordered breathing, primarily obstructive sleep apnea (OSA). Its core products are nasal CPAP and VPAP flow generators, mask systems, and accessories, sold in 41 countries through subsidiaries and independent distributors. For fiscal 1997 (year ended June 30, 1997), net revenues rose to $49.2 million from $34.6 million, and net income increased to $7.5 million, or $1.02 per share, from $4.5 million, or $0.63 per share. Income from operations was $8.3 million, up from $3.6 million, and gross margin widened to 58.7% from 50.8%, driven by full-year results from the German and French acquisitions, manufacturing efficiencies and higher-margin diagnostic and bi-level units, partly offset by US price competition. Growth was led by Europe, where net revenues reached $21.5 million from $12.4 million, while North America rose to $21.3 million from $16.8 million. Australia and the rest of the world were $6.4 million, down from $5.3 million in fiscal 1996, and the filing notes that ResMed's dominant Australian market share has declined since a patent was revoked in 1994. Operating cash flow was $9.5 million, and cash and marketable securities totaled $28.0 million at June 30, 1997. The company has no cash dividend plans, and it faces ongoing patent litigation with Respironics, Inc., as well as a roughly $730,000 Australian Trade Practices Act damages claim by Respironics and its distributor. Investors should weigh the strong top-line and margin expansion against concentration risk in a few products and key single-source components, heavy reliance on third-party reimbursement, and the costs and uncertain outcomes of ongoing patent litigation. The company also disclosed an agreement in August 1997 to buy land for a new Australian operations center for about $3.6 million.
Sep 26, 1997
1996-A
ResMed Annual Report (Amendment), Year Ended Jun 30, 1996
ResMed Inc., a Delaware corporation, designs, manufactures and markets nasal CPAP equipment for the diagnosis and treatment of obstructive sleep apnea (OSA). Its manufacturing is in Sydney, Australia, and it sells in 40 countries through distributors, a direct sales force and manufacturers' representatives. For fiscal 1996 (year ended June 30, 1996), net revenues rose to $34.6 million from $23.5 million, and net income rose to $4.5 million from $2.8 million. Gross margin declined to 50.8% from 52.0%, which the company attributed to a stronger Australian dollar and price competition in the United States. Europe was the fastest-growing region, with net revenues of $12.4 million versus $6.8 million the prior year. During fiscal 1996 the company acquired its German distributor, Dieter W Priess Medizintechnik, for $6,350,000 in cash (with up to $4,000,000 of additional contingent payments), and its French distributor, Premium Medical SARL, for $348,000. It received FDA clearance in July and August 1996 for the AutoSet Portable, AutoSet Clinical and VPAP II ST products. Cash and marketable securities were about $23.5 million at June 30, 1996, and working capital was $30.5 million. Stockholders' equity rose to $38.99 million after a public offering in June 1995. The company faces significant patent litigation with Respironics, Inc. Its original Australian CPAP patent was revoked in 1994, which is reducing its Australian market share. It is also defending a suit seeking about $730,000 in damages under the Australian Trade Practices Act. The company does not expect to pay cash dividends in the foreseeable future.
Nov 7, 1996
1996
ResMed Annual Report, Year Ended Jun 30, 1996
ResMed Inc., a Delaware corporation, designs, manufactures and markets nasal CPAP equipment for the diagnosis and treatment of obstructive sleep apnea (OSA). Its manufacturing is in Sydney, Australia, and its common stock began trading on NASDAQ on June 2, 1995 under the symbol "RESM". For fiscal 1996 (year ended June 30, 1996), net revenues rose to $34.6 million from $23.5 million, and net income rose to $4.5 million from $2.8 million, with primary earnings per share of $0.63 in both years. Gross margin declined slightly to 50.8% from 52.0%, which the company attributed to a stronger Australian dollar and price competition in the United States. Selling, general and administrative expenses rose to $11.1 million, driven partly by the February 1996 acquisition of its German distributor. The company's acquisitions of its German distributor (Dieter W Priess Medtechnik, for $6.5 million) and French distributor (Premium Medical SARL, for $348,000) expanded its direct presence in Europe, where net revenues increased to $12.4 million from $6.8 million. Total assets grew to $46.9 million at June 30, 1996, and stockholders' equity reached $39.0 million. Cash and marketable securities totaled $23.5 million. Product momentum included FDA clearances in July and August 1996 for the AutoSet Portable, AutoSet Clinical and VPAP II ST devices. The filing also discloses material risks. The company's dominant Australian market share has declined after a 1994 revocation of its original Australian CPAP patent, and management expects further decline. ResMed is in patent litigation with Respironics, and Respironics has filed a Trade Practices Act claim seeking about $730,000. The company relies on two single-source suppliers for key CPAP components and does not expect to pay cash dividends in the foreseeable future.
Sep 27, 1996