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ResMed Annual Report, Year Ended Jun 30, 2001

Filing Date
Filed September 20, 2001
Period End
June 30, 2001
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 20, 2001. Cited figures are marked; the original filing is the authoritative source.

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 milliona, up from $115.6 million in fiscal 2000, an increase of $39.5 million or 34%.

Net income fell to $11.6 millionb, 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 millionc 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 milliond, 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.

02—Key points

Key Highlights

  1. Net revenues rose 34% to $155.2 million in fiscal 2001, from $115.6 million in fiscal 2000.
  2. Net income declined to $11.6 million ($0.35 diluted EPS) from $22.2 million ($0.69 diluted EPS), after an $17.7 million in-process R&D write-off tied to the MAP acquisition.
  3. Gross profit increased to $104.8 million, with gross margin of 68%, consistent with fiscal 2000.
  4. Acquired MAP Medizin-Technologie GmbH on February 16, 2001 for total consideration of $55.4 million; goodwill of $47.1 million is being amortized over 20 years.
  5. Issued $180.0 million of 4% convertible subordinated notes due 2006 (conversion price $60.60 per share), which lifted working capital to $144.3 million.
  6. Cash and marketable securities totaled $102.8 million at June 30, 2001, up from $22.0 million a year earlier.
  7. Sales in North and Latin America were 52% of net revenues in fiscal 2001, with Europe at 39% and Australia/Rest of World at 9%.

03—Questions

Frequently Asked Questions

  1. How did ResMed perform financially in fiscal 2001?

    Net revenues grew 34% to $155.2 million and gross profit rose to $104.8 million. Net income fell to $11.6 million from $22.2 million, largely because of a $17.7 million write-off of purchased in-process research and development and a $0.55 million restructuring charge connected to the MAP acquisition.

  2. What was the MAP acquisition and why does it matter?

    On February 16, 2001, ResMed acquired MAP Medizin-Technologie GmbH, a German designer and distributor of medical devices for diagnosing and treating sleep disordered breathing. The filing says the acquisition strengthens ResMed's position in Europe, particularly in Germany, the second largest market worldwide for OSA products. Total consideration was $55.4 million, and the company assumed about $14.5 million of bank debt.

  3. How did the company finance its growth and what debt does it carry?

    ResMed issued $150.0 million of 4% convertible subordinated notes due June 20, 2006 on June 20, 2001, and an additional $30.0 million on July 3, 2001. The notes are convertible at $60.60 per share, are unsecured and subordinated to senior indebtedness, and carry semiannual interest payments.

  4. What legal risks are disclosed in the filing?

    ResMed is litigating patent infringement with Respironics, Inc., a primary U.S. CPAP competitor, and has said it intends to appeal the summary judgment rulings after final judgment. MAP is also suing Hofrichter GmbH over trademark and patent use, with an initial decision in MAP's favor that Hofrichter has appealed. The company settled two other matters in April 2001.

  5. Does ResMed pay dividends?

    No. The company has not paid cash dividends since before its initial public offering and does not currently intend to pay cash dividends in the foreseeable future. It plans to retain earnings and other cash resources for operations, expansion and general corporate purposes.

04—Continue

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