Skip to content
AnalystLens

ResMed Annual Report (Amendment), Year Ended Jun 30, 1996

Filing Date
Filed November 7, 1996
Period End
June 30, 1996
Securities
RMDRSMDF
In the record · 2016–202610-K1410-Q338-K85

RMD filed 14 annual reports (10-K), 33 quarterly reports (10-Q) and 85 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jan ’17Jan ’17
  2. Material agreement8-K · Jul ’19Jul ’19
  3. Leadership change8-K · Oct ’21Oct ’21
  4. Leadership change8-K · Nov ’25Nov ’25

01—Abstract

Summary

Summary of the 10-K/A filed November 7, 1996. Cited figures are marked; the original filing is the authoritative source.

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 milliona 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 millionb 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 millionc 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 The company faces significant patent litigation with Respironics, Inc. Its original Australian CPAP patent was revoked in 1994, which is reducing its Australian market share.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 $730,000d in damages under the Australian Trade Practices Act. The company does not expect to pay cash dividends in the foreseeable future.

02—Key points

Key Highlights

  1. Net revenues increased to $34.6 million in fiscal 1996 from $23.5 million in fiscal 1995, an increase of 47.1%.
  2. Net income increased to $4.5 million ($0.63 per primary share) from $2.8 million in fiscal 1995.
  3. Gross profit margin declined to 50.8% from 52.0%, mainly due to a stronger Australian dollar and U.S. price competition.
  4. European net revenues grew to $12.4 million from $6.8 million, following the acquisitions of the German and French distributors.
  5. Acquired Dieter W Priess Medizintechnik (Germany) for $6,350,000 in cash plus up to $4,000,000 in contingent payments, and Premium Medical SARL (France) for $348,000.
  6. Received FDA clearance for AutoSet Clinical (July 1996), AutoSet Portable and VPAP II ST (August 1996).
  7. Patent litigation with Respironics continues, and the Australian CPAP patent was revoked in 1994, reducing market share in Australia.

03—Questions

Frequently Asked Questions

  1. How did ResMed perform financially in fiscal 1996?

    Net revenues rose 47.1% to $34.6 million and net income rose to $4.5 million from $2.8 million. Income from operations was $3.6 million, up from $2.8 million, and total other income, net, was $3.0 million, including $961,000 of unrealized gains on foreign currency options.

  2. What acquisitions did ResMed complete in fiscal 1996?

    ResMed acquired the business of its German distributor, Dieter W Priess Medizintechnik, on February 7, 1996, for $6,350,000 in cash, with up to $4,000,000 of additional payments over four years contingent on sales. It also acquired its French distributor, Premium Medical SARL, on June 12, 1996, for $348,000 in cash.

  3. What are the main legal risks facing ResMed?

    ResMed is pursuing patent infringement litigation against Respironics, which filed a declaratory judgment action claiming the patents are invalid. Respironics and its Australian distributor also filed a claim under the Australian Trade Practices Act seeking about $730,000 in damages. The Australian CPAP patent was revoked in 1994, and the company expects its Australian market share to continue to decline.

  4. Does ResMed pay dividends and who are its main competitors?

    ResMed does not intend to declare cash dividends in the foreseeable future. Its principal U.S. competitors for CPAP products are Respironics, Healthdyne Technologies, DeVilbiss and Nellcor Puritan Bennett.

  5. What is ResMed's financial position at June 30, 1996?

    Cash, cash equivalents and marketable securities totaled about $23.5 million, working capital was $30.5 million, total assets were $46.9 million and stockholders' equity was $39.0 million. Long-term debt, net of current maturities, was $578,000.

04—Continue

← View all 10-K filings