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ResMed Annual Report, Year Ended Jun 30, 1999

Filing Date
Filed September 15, 1999
Period End
June 30, 1999
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 filed September 15, 1999. Cited figures are marked; the original filing is the authoritative source.

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 milliona 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 millionb 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 $100,000c.

02—Key points

Key Highlights

  1. Net revenues increased 33% to $88.6 million in fiscal 1999 from $66.5 million in fiscal 1998.
  2. Net income rose to $16.1 million from $10.6 million; diluted EPS was $1.04 versus $0.71.
  3. Gross profit margin improved to 66.8% from 65.3%, attributed to manufacturing efficiencies and higher-margin bilevel units.
  4. North America accounted for 57% of net revenues in fiscal 1999, up from 52% in fiscal 1998.
  5. Operating cash flow increased to $18.2 million from $6.8 million, while $9.9 million went to a new Sydney manufacturing facility.
  6. Cash and marketable securities declined to $16.7 million from $20.7 million at June 30, 1998.
  7. The company is pursuing patent litigation against Respironics and faces a Federal Court of Australia claim of approximately $1,000,000 from Respironics and its distributor.

03—Questions

Frequently Asked Questions

  1. What does ResMed sell and who are its main competitors?

    ResMed designs and sells equipment for diagnosing and treating sleep disordered breathing, mainly obstructive sleep apnea, including nasal CPAP and VPAP flow generators, mask systems, and accessories. In the United States its principal competitors for CPAP products are Respironics, DeVilbiss (a division of Sunrise Medical) and Nellcor Puritan Bennett, some of which have greater financial and marketing resources than ResMed.

  2. How did ResMed's revenue mix change in fiscal 1999?

    Flow generators accounted for approximately 64% of net revenues in fiscal 1999, compared with 66% in fiscal 1998. Mask systems, accessories and other products accounted for approximately 36% in fiscal 1999 versus 34% in fiscal 1998.

  3. Does ResMed pay dividends?

    No. The company stated that it does not intend to declare any cash dividends in the foreseeable future, and it has paid no cash dividends per share in the periods presented.

  4. What are the main risks to ResMed's business?

    The filing cites competition from larger rivals and new products or procedures that could make ResMed's products obsolete, dependence on third-party reimbursement from payors, foreign currency exposure (notably the Australian dollar, managed through currency options), and ongoing patent litigation. Year 2000 readiness of third parties is also identified as a potential risk.

04—Continue

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