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ResMed Annual Report, Year Ended Jun 30, 2003

Filing Date
Filed September 12, 2003
Period End
June 30, 2003
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 12, 2003. Cited figures are marked; the original filing is the authoritative source.

ResMed Inc. (NYSE: RMD) filed its Form 10-K for the fiscal year ended June 30, 2003, reporting net revenues of $273.6 milliona, up from $204.1 million, an increase of $69.5 million or 34%.

Gross profit rose to $173.1 millionb 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 millionc, 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 milliond 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.

02—Key points

Key Highlights

  1. Net revenues rose 34% to $273.6 million, with growth attributed to higher unit sales of flow generators and accessories, currency appreciation, and the inclusion of $6.5 million of SMI sales.
  2. Net income grew to $45.7 million ($1.33 diluted EPS) from $37.5 million ($1.10 diluted EPS) in fiscal 2002.
  3. Gross margin declined to 63% from 65%, reflecting higher manufacturing costs from a stronger Australian dollar and lower-margin motor sales.
  4. Operating cash flow of $59.3 million, up from $35.6 million, supported cash and cash equivalents of $114.5 million at June 30, 2003.
  5. Convertible subordinated notes were reduced to $113.25 million after $10.0 million of repurchases; the notes mature June 20, 2006.
  6. Patent litigation with Fisher & Paykel Healthcare was settled and dismissed with prejudice, and the Respironics disputes are being settled with dismissal of all claims.
  7. A new 215,000 square foot Sydney manufacturing facility is under construction, with completion expected in the first half of calendar 2004.

03—Questions

Frequently Asked Questions

  1. How did ResMed's revenue and profitability change in fiscal 2003?

    Net revenues increased to $273.6 million from $204.1 million, a 34% rise. Net income increased to $45.7 million from $37.5 million, and diluted EPS rose to $1.33 from $1.10.

  2. What products generate most of ResMed's revenue?

    CPAP, VPAP and AutoSet air flow generators and diagnostic products accounted for approximately 54% of net revenues in fiscal 2003, while masks, accessories and motors accounted for approximately 46%.

  3. Where are ResMed's sales concentrated?

    Sales in North and Latin America were $130.7 million and international markets were $142.8 million in fiscal 2003. The filing states that approximately half of revenues are generated outside the U.S.

  4. Does ResMed pay dividends, and what are its main debt obligations?

    ResMed has not paid cash dividends since its IPO and does not intend to pay them in the foreseeable future. Its main debt is $113.25 million of 4% convertible subordinated notes due June 20, 2006, with a conversion price of $60.60 per share.

  5. What are the key risks highlighted in the filing?

    Risks include intense competition from Respironics, DeVilbiss and Nellcor Puritan Bennett, dependence on home health care dealers and sleep clinics, reimbursement pressures, currency fluctuations affecting its Australian manufacturing costs, FDA regulatory requirements, and reliance on single-source suppliers for some components.

04—Continue

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