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RMD · ResMed

50 filings

10-Q

RMD 10-Q Quarterly Reports

ResMed - 50 quarterly reports

Filing 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
  1. 2027-Q1

    ResMed Quarterly Report for Q1 Ended Sep 30, 2026

    ResMed Inc. reported net revenue of $1.4 billion for the three months ended September 30, 2026, up 6% from the prior year period. Sleep and Breathing Health revenue rose 8% to $1,260 million, driven by increased demand and unit sales of devices and masks, while Residential Care Software revenue fell 7% to $155 million, mainly due to the September 1, 2026 sale of the MatrixCare business. Gross margin was 61.5% compared with 61.2%. Diluted earnings per share were $2.92, compared with $2.37, and net income was $418 million compared with $349 million, an increase of 20%. Results were helped by a $62 million pre-tax gain on the MatrixCare divestment, which is preliminary and included in other income, and by $86 million of total other income, net. Operating income was $453 million compared with $447 million. Cash and cash equivalents declined to $1.0 billion from $1.5 billion at June 30, 2026. Cash flows reflected $1,278 million used in financing activities, including $936 million of treasury stock purchases and $250 million repayment of senior notes, partly offset by $392 million provided by investing activities, mainly $451 million of net proceeds from the MatrixCare divestment. Operating cash flow was $422 million compared with $457 million, which the company attributed to higher working capital, including higher inventory. Total debt was $410 million at September 30, 2026, down from $659 million, and $1,500 million remained available under the revolving credit facility. The company declared a quarterly dividend of $0.66 per share on October 29, 2026, and has an accelerated share repurchase agreement of $450 million expected to settle no later than December 29, 2026. The filing also discloses ongoing patent litigation with Cleveland Medical Devices and a patent suit by Fractus, S.A. For these matters, the company states it is unable to make a reasonable estimate of loss or range of losses, if any, for matters that remain open. One customer accounted for 11% of total net revenue in the quarter.

    Oct 30, 2026
  2. 2026-Q3

    ResMed Quarterly Report for Q3 Ended Mar 31, 2026

    ResMed Inc. reported net revenue of $1,431.4 million for the three months ended March 31, 2026, an increase of $139.7 million or 11% (8% on a constant currency basis) from $1,291.7 million a year earlier. Net income rose to $398.7 million from $365.0 million, and diluted earnings per share were $2.74 compared to $2.48. Gross margin was 62.2% versus 59.3% in the prior-year quarter, driven by manufacturing and logistics efficiencies and component cost improvements. For the nine months, net revenue was $4,189.8 million, up $391.5 million or 10%, and net income was $1,139.9 million, up 12%. Balance sheet and cash flow remained strong. Cash and cash equivalents reached $1,660.5 million at March 31, 2026, up from $1,209.5 million at June 30, 2025, while total debt was $664.1 million. Operating cash flow for the nine months was $1,351.2 million. The company repurchased $500.0 million of stock during the nine months and declared a quarterly dividend of $0.60 per share payable June 18, 2026. Total debt outstanding under its revolving credit, term credit and senior notes facilities was $665.0 million, and the company stated it was in compliance with its debt covenants. Operating items to note include $21.7 million of restructuring charges recorded in the nine months for workforce planning, $5.9 million of acquisition and portfolio review expenses in the current quarter, and an effective tax rate of 20.6% for the quarter versus 12.6% a year earlier. Ongoing patent litigation involving Cleveland Medical, Fractus and NYU is described in the filing, and the company stated it does not expect these matters to have a material adverse effect on its consolidated financial statements.

    May 1, 2026
  3. 2026-Q2

    ResMed Quarterly Report for Q2 Ended Dec 31, 2025

    ResMed Inc. reported net revenue of $1,422.8 million for the three months ended December 31, 2025, an increase of $140.7 million, or 11% (9% on a constant currency basis), compared with $1,282.1 million a year earlier. Sleep and Breathing Health revenue rose 12% to $1,255.9 million, led by devices and masks, with masks and other up 16%. Residential Care Software revenue grew 7% to $166.9 million. Gross margin expanded to 61.8% from 58.6%, which the company attributed primarily to manufacturing and logistics efficiencies and component cost improvements. Net income increased 14% to $392.6 million, and diluted EPS was $2.68 versus $2.34. Non-GAAP diluted EPS was $2.81 versus $2.43. For the six months ended December 31, 2025, net revenue was $2,758.4 million, up 10%, and net income was $741.1 million, up 13%. Operating cash flow was $797.1 million, compared with $634.2 million in the prior-year period. Restructuring expenses totaled $21.7 million for the six months, related to workforce planning. Selling, general and administrative expenses rose 15% in the quarter, which the company attributed mainly to employee-related costs, VirtuOx acquisition expenses, and marketing and technology investments. The balance sheet strengthened over the period. Cash and cash equivalents were $1,417.1 million at December 31, 2025, against total debt of $663.8 million, and $1,500.0 million was available under the revolving credit facility. The company repurchased $325.0 million of its stock in the six months and paid $0.60 per share in quarterly dividends, with a further $0.60 dividend declared on January 29, 2026. Pending litigation includes several patent suits, including Cleveland Medical and Fractus matters, and the company is unable to estimate a range of loss for open matters. The company also disclosed that the NYU patent case was dismissed with prejudice in November 2025.

    Jan 30, 2026
  4. 2026-Q1

    ResMed Quarterly Report for Q1 Ended Sep 30, 2025

    ResMed Inc. reported net revenue of $1,335.6 million for the three months ended September 30, 2025, up from $1,224.5 million a year earlier, an increase of $111.1 million or 9% (8% on a constant currency basis). Sleep and Breathing Health revenue was $1,169.4 million, up 10%, and Residential Care Software revenue was $166.1 million, up 6%. Gross margin rose to 61.5% from 58.6%, which the company attributed primarily to manufacturing and logistics efficiencies and component cost improvements. Net income was $348.5 million, up 12%, and diluted earnings per share were $2.37 compared with $2.11. Non-GAAP diluted earnings per share were $2.55 compared with $2.20. Operating results also absorbed $15.8 million of restructuring charges for employee severance and termination benefits tied to workforce planning. Cash provided by operating activities was $457.3 million, compared with $325.5 million a year earlier. Cash and cash equivalents were $1.4 billion at September 30, 2025, and total debt outstanding was $670.0 million under the revolving credit facility, term credit agreement and senior notes. The company repurchased 523,212 shares for $150.0 million and paid dividends of $0.60 per share, totaling $87.8 million. On October 30, 2025, the board declared a further $0.60 per share dividend payable December 18, 2025. Litigation remains a watch item. The Federal Circuit affirmed PTAB decisions invalidating the claims of the NYU patents on August 8, 2025, and Fractus filed a new patent infringement suit against ResMed Corp. and ResMed Inc. on October 9, 2025. The company stated that it cannot make a reasonable estimate of loss or range of losses for matters that remain open.

    Oct 31, 2025
  5. 2025-Q3

    ResMed Quarterly Report for Q3 Ended Mar 31, 2025

    ResMed Inc. reported net revenue of $1,291.7 million for the three months ended March 31, 2025, up from $1,197.0 million a year earlier, an increase of $94.8 million or 8% (9% on a constant currency basis). Growth came from both segments: Sleep and Breathing Health revenue rose to $1,130.6 million, and Residential Care Software revenue rose to $161.2 million. Gross margin improved to 59.3% from 57.9%, and income from operations increased to $426.3 million from $374.6 million. Net income for the quarter was $365.0 million, up 21%, and diluted earnings per share were $2.48 versus $2.04. For the nine months, net revenue was $3,798.3 million, net income was $1,021.0 million (up 40%), and diluted EPS was $6.93 versus $4.94. Cash flow and balance sheet strength improved over the period. Cash and cash equivalents rose to $932.7 million from $238.4 million at June 30, 2024, and net cash provided by operating activities was $1,212.8 million for the nine months, compared with $961.1 million a year earlier. The company repurchased $200.0 million of treasury stock and paid $233.3 million in dividends during the nine months. Total debt outstanding was $675.0 million, and $1,500.0 million remained available under the revolving credit facility. The company declared a quarterly dividend of $0.53 per share on April 23, 2025. The filing also flags risks. Management cites uncertainty from U.S. healthcare policy changes, FDA oversight disruptions, and newly announced tariffs on imports from Canada, Mexico, and China. The company is also party to patent litigation with New York University and Cleveland Medical, though it states it cannot estimate potential losses from matters still open. Non-GAAP diluted EPS for the quarter was $2.37, compared with $2.13 a year earlier, and the quarter's GAAP results included a $30.0 million income tax benefit from interest and penalties on IRS refunds.

    Apr 24, 2025
  6. 2025-Q2

    ResMed Quarterly Report for Q2 Ended Dec 31, 2024

    ResMed Inc. reported results for the three and six months ended December 31, 2024. Net revenue for the quarter was $1.3 billion ($1,282.1 million), up 10% from $1,162.8 million, and up 10% on a constant currency basis. Sleep and Breathing Health revenue rose 11% to $1,125.6 million, and Residential Care Software revenue rose 8% to $156.5 million. Gross margin improved to 58.6% from 55.6%, helped by lower non-recurring field safety notification expenses in the prior year, manufacturing efficiencies, and lower amortization of acquired intangibles. Income from operations was $417.2 million, compared with $275.1 million a year earlier, and net income was $344.6 million, up 65%. Diluted earnings per share were $2.34, compared with $1.42. Non-GAAP diluted earnings per share were $2.43, compared with $1.88. For the six months, net revenue was $2.51 billion, up 11%, and net income was $656.0 million, up 53%. Net cash from operating activities was $634.2 million, versus $559.1 million a year earlier. Cash and cash equivalents rose to $521.9 million from $238.4 million at June 30, 2024. Total debt was $672.8 million, and $1,500.0 million remained available under the revolving credit facility. The company repurchased $125.0 million of treasury stock during the six months and declared a quarterly dividend of $0.53 per share on January 30, 2025. Restructuring expenses of $64.2 million were recorded in the prior-year quarter and none in the current period. The filing discloses ongoing patent litigation, including suits brought by New York University and Cleveland Medical Devices, for which the company states it cannot make a reasonable estimate of loss or range of losses. Management states that the outcome of litigation is not expected to have a material adverse effect on the consolidated financial statements, and that current liquidity sources will be sufficient for the next 12 months and beyond.

    Jan 31, 2025
  7. 2025-Q1

    ResMed Quarterly Report for Q1 Ended Sep 30, 2024

    ResMed Inc. reported net revenue of $1,224.5 million for the three months ended September 30, 2024, up from $1,102.3 million a year earlier, an increase of $122.2 million or 11%. Sleep and Breathing Health revenue reached $1,067.7 million, up 11%, with devices at $625.8 million and masks and other at $442.0 million. Residential Care Software revenue was $156.8 million, up 13%. Gross margin expanded to 58.6% from 54.4%, which the company attributed mainly to manufacturing efficiencies, component cost improvements, higher average selling prices, and lower amortization of acquired intangibles in cost of sales. Income from operations rose to $387.3 million from $289.0 million, and net income increased $91.9 million, or 42%, to $311.4 million. Diluted earnings per share were $2.11 compared with $1.49. Non-GAAP diluted earnings per share were $2.20 compared with $1.64. On the balance sheet, cash and cash equivalents increased to $426.4 million from $238.4 million at June 30, 2024. Total assets were $7.2 billion and stockholders' equity was $5.2 billion. Total debt outstanding was $680.0 million across the revolving credit facility, term credit facility and senior notes, and the company stated it was in compliance with its debt covenants. Cash provided by operating activities was $325.5 million, up $39.3 million from the prior year period. The company repurchased $50.0 million of treasury stock and paid dividends of $0.53 per share totaling $77.9 million. On October 24, 2024, the board declared a quarterly dividend of $0.53 per share payable December 12, 2024. The filing also discloses ongoing patent litigation, including a New York University suit concerning AirSense 10 AutoSet features, in which the PTAB invalidated the challenged NYU claims and NYU has appealed, and a Cleveland Medical Devices suit with an inter partes review decision expected by May 6, 2025. The company stated it cannot estimate a reasonable range of loss for matters that remain open.

    Oct 25, 2024
  8. 2024-Q3

    ResMed Quarterly Report for Q3 Ended Mar 31, 2024

    ResMed Inc. reported net revenue of $1,196,980 thousand ($1.2 billion) for the three months ended March 31, 2024, up 7% from $1,116,898 thousand a year earlier (also 7% on a constant currency basis). Growth was driven by Sleep and Respiratory Care, where devices rose 5% and masks and other rose 10%, and by Software as a Service (SaaS) revenue of $147,957 thousand, up 8%. Gross margin improved to 57.9% from 55.3%, which the company attributed mainly to lower freight costs and manufacturing cost improvements. Net income was $300,492 thousand, or $2.04 diluted EPS, compared with $1.58 in the prior-year quarter, an increase of 29%. For the nine months ended March 31, 2024, net revenue was $3,462,102 thousand, up 12% (11% on a constant currency basis), and diluted EPS was $4.94. Gross margin was 56.0% versus 56.1%, reflecting $14.3 million of field safety notification expenses for masks with magnets and Astral devices. The company recorded $64.2 million of restructuring charges in the nine-month period under a plan to increase operational efficiency, and that restructuring was substantially complete at March 31, 2024. Cash provided by operating activities was $961.1 million for the nine months, compared with $455.9 million a year earlier, mainly due to lower cash outflows on inventory purchases. At March 31, 2024, cash and cash equivalents were $237.9 million, total assets were $6.8 billion, and stockholders' equity was $4.6 billion. Total debt outstanding under the revolving credit facility, term credit agreement and senior notes was $1,010.0 million, down from $1,441,136 thousand in total debt at June 30, 2023, and the company stated it was in compliance with its debt covenants. The Board declared a quarterly dividend of $0.48 per share on April 25, 2024.

    Apr 26, 2024
  9. 2024-Q2

    ResMed Quarterly Report for Q2 Ended Dec 31, 2023

    ResMed Inc. reported net revenue of $1,162.8 million for the three months ended December 31, 2023, up from $1,033.7 million a year earlier, an increase of $129.1 million or 12%. Sleep and Respiratory Care revenue was $1,017.9 million, and Software as a Service revenue was $144.9 million, up 24%, driven mainly by the MEDIFOX DAN acquisition. Gross margin declined to 55.6% from 56.1%, reflecting a $6.4 million field safety notification provision for masks with magnets and higher amortization of acquired intangibles. Diluted EPS was $1.42, compared with $1.53, and net income was $208.8 million, down from $224.9 million. Non-GAAP diluted EPS was $1.88, compared with $1.66. The quarter included $64.2 million of restructuring expenses tied to a review of operations aimed at improving efficiency, comprising $28.6 million of severance and termination benefits and $33.2 million of intangible asset impairments from winding down certain businesses. Management also announced a new operating model that adds dedicated leadership in Product, Revenue, and Marketing. For the six months, operating cash flow was $559.1 million, up from $173.3 million, and total debt outstanding was $1,230.0 million, with $955.0 million available under the revolving credit facility. Litigation includes the NYU patent case, where the PTAB invalidated the challenged NYU claims in December 2023, and the Cleveland Medical patent suits, which remain pending. The company stated it cannot estimate a range of loss for open matters. The board declared a quarterly dividend of $0.48 per share, payable March 14, 2024.

    Jan 25, 2024
  10. 2024-Q1

    ResMed Quarterly Report for Q1 Ended Sep 30, 2023

    ResMed Inc. reported net revenue of $1,102.3 million for the three months ended September 30, 2023, up 16% from $950.3 million a year earlier (15% on a constant currency basis). Sleep and Respiratory Care revenue rose 14% to $963.0 million, with devices up 9% and masks and other up 22%. Software as a Service (SaaS) revenue rose 32% to $139.3 million, which the filing attributes predominantly to the MEDIFOX DAN acquisition; excluding that acquisition, SaaS revenue increased 7%. Profitability was mixed. Gross margin declined to 54.4% from 56.9%, due primarily to a $7.9 million provision for expected costs of an Astral ventilation device field safety notification, along with higher component and manufacturing costs. Income from operations was $289.0 million, net income was $219.4 million (up 4%), and diluted earnings per share were $1.49 compared with $1.43. Non-GAAP diluted earnings per share were $1.64 versus $1.51. Net cash provided by operating activities was $286.3 million, compared with $44.7 million a year earlier, driven mainly by lower inventory outflows and higher customer collections. The balance sheet reflects acquisition activity and debt. Goodwill increased to $2.81 billion, and cash used for business acquisitions, net of cash acquired, was $103.2 million, mainly for Somnoware. Total debt was $1.36 billion at September 30, 2023, with $825.0 million available under the revolving credit facility. Interest expense, net, rose to $15.0 million from $7.1 million, attributed to borrowings used for MEDIFOX DAN. The company declared a $0.48 quarterly dividend and, in October 2023, announced its board had reactivated share repurchases, with 12.9 million shares remaining under the authorization.

    Oct 27, 2023
  11. 2023-Q3

    ResMed Quarterly Report for Q3 Ended Mar 31, 2023

    ResMed Inc. reported net revenue of $1,116.9 million for the three months ended March 31, 2023, up 29% from $864.5 million a year earlier (31% on a constant currency basis). Net income rose to $232.5 million, and diluted earnings per share were $1.58, compared with $1.22. For the nine months, net revenue was $3,100.9 million and net income was $667.9 million, with diluted EPS of $4.53. Sleep and Respiratory Care revenue grew 28% in the quarter, driven by device demand and reduced competitive supply. Software as a Service revenue rose 35%, mainly due to the MEDIFOX DAN acquisition completed November 21, 2022, for $997.5 million. Gross margin declined to 55.3% from 56.8%, which the company attributed mainly to unfavorable product mix, higher component costs and higher warehouse costs. Selling, general and administrative expenses rose 25% in the quarter, and interest expense, net, increased to $15.0 million from $5.5 million due to higher debt used to fund the acquisition. Total debt was $1,585.9 million at March 31, 2023, up from $775.2 million at June 30, 2022. Cash and cash equivalents were $227.9 million, and $605.0 million was available under the revolving credit facility. Cash from operations was $455.9 million for the nine months. The company declared a quarterly dividend of $0.44 per share on April 27, 2023, and did not repurchase shares during the quarter. Management stated that current liquidity is sufficient for the next 12 months and beyond. The filing reports no reasonable estimate of loss for the open patent litigation matters, including suits brought by New York University and Cleveland Medical Devices.

    Apr 28, 2023
  12. 2023-Q2

    ResMed Quarterly Report for Q2 Ended Dec 31, 2022

    ResMed Inc. reported net revenue of $1,033.7 million for the three months ended December 31, 2022, up from $894.9 million a year earlier, an increase of 16% (20% on a constant currency basis). Growth was led by Sleep and Respiratory Care devices, which rose 20% to $542.8 million, and Software as a Service revenue, which rose 18% to $116.8 million. Net income was $224.9 million, or $1.53 per diluted share, compared with $201.8 million and $1.37 a year earlier. Gross margin was 56.1%, compared with 56.4%, which the company attributed mainly to unfavorable product mix, higher distribution and warehouse costs, and unfavorable foreign currency movements. For the six months ended December 31, 2022, net revenue was $1,984.0 million, up 10%, and diluted earnings per share were $2.95. The most significant development in the period was the acquisition of MEDIFOX DAN, a German out-of-hospital care software provider, completed on November 21, 2022 for $997.5 million and funded by the Revolving Credit Agreement. Goodwill rose to $2,767.2 million from $1,936.4 million, and total debt increased to $1,800.6 million, net, from $775.2 million at June 30, 2022. Interest expense, net, rose to $10.3 million for the quarter from $5.9 million. At December 31, 2022, the company had $253.2 million in cash and cash equivalents and $390.0 million available under its revolving credit facility, and stated it was in compliance with its debt covenants. The company also disclosed pending patent litigation, including a suit filed by New York University and a suit filed by Cleveland Medical Devices Inc., for which it stated it was unable to make a reasonable estimate of loss or range of losses. Its share repurchase program remained temporarily suspended, and the board declared a cash dividend of $0.44 per share on January 26, 2023.

    Jan 27, 2023
  13. 2023-Q1

    ResMed Quarterly Report for Q1 Ended Sep 30, 2022

    ResMed Inc. reported net revenue of $950.3 million for the three months ended September 30, 2022, up from $904.0 million a year earlier, an increase of $46.3 million or 5% (9% on a constant currency basis). Sleep and Respiratory Care revenue was $844.4 million and Software as a Service revenue was $105.9 million. Gross margin was 56.9% compared with 56.0% in the prior-year quarter, and net income rose to $210.5 million from $203.6 million. Diluted earnings per share were $1.43 versus $1.39. Management attributed the Sleep and Respiratory Care growth primarily to higher device and mask unit sales in the U.S., Canada and Latin America, while combined Europe, Asia and other markets declined 16% (6% on a constant currency basis), reflecting continued electronic component shortages. Movements in international currencies reduced net revenue by approximately $36.2 million. Cash and cash equivalents fell to $207.2 million at September 30, 2022, from $273.7 million at June 30, 2022. Operating cash flow was $44.7 million, compared with cash used of $65.7 million a year earlier, which had included the $284.8 million final payment to the Australian Taxation Office. Total debt was $795.3 million, and the company had $1.4 billion available under its revolving credit facility. Subsequent to the quarter, the board declared a $0.44 per share dividend payable December 15, 2022. The pending acquisition of MEDIFOX DAN, for consideration of EUR 950 million expected to close in fiscal 2023, is a key item for investors. The filing states that the company paid $19.1 million for business acquisitions during the quarter, mainly for mementor. No share repurchases were made during the quarter, and the company said it had temporarily suspended its repurchase program.

    Oct 28, 2022
  14. 2022-Q3

    ResMed Quarterly Report for Q3 Ended Mar 31, 2022

    ResMed Inc. reported net revenue of $864.5 million for the three months ended March 31, 2022, up $95.7 million or 12% from $768.8 million a year earlier (a 14% increase on a constant currency basis). Sleep and Respiratory Care revenue rose 13% to $763.4 million, with device sales up 18% and masks and other up 7%. The company attributed the growth mainly to higher unit sales of devices and masks, including increased demand following a recent competitor product recall. Software as a Service revenue grew 8% to $101.1 million. Management noted it was not able to meet all available market demand because of constrained supply of components, particularly semiconductor chips. Profitability improved sharply year over year. Net income for the quarter was $179.0 million, or $1.22 per diluted share, compared with a net loss of $78.5 million, or $0.54 per diluted share, in the prior-year quarter. Gross margin declined to 56.8% from 58.2%, which the company attributed mainly to higher logistics and manufacturing costs, partly offset by product mix and average selling prices. For the nine months, net income was $584.4 million, or $3.97 per diluted share, after the settlement of the Australian Taxation Office transfer pricing dispute, which had a final net impact of $238.7 million. Operating cash flow fell to $271.7 million for the nine months from $510.2 million, primarily due to the $284.8 million final ATO payment and higher inventory purchases. The balance sheet remained solid, with cash and cash equivalents of $201.8 million, total assets of $4.9 billion and stockholders' equity of $3.3 billion. Total debt was $680.7 million, and the company had $1.6 billion available under its revolving credit facility. Management stated it was in compliance with its debt covenants and that current liquidity is sufficient for the next 12 months and beyond. The company paid $0.42 per share in quarterly dividends and declared another $0.42 per share on April 28, 2022. No share repurchases were made during the period, and 12.9 million shares remain available under the approved repurchase program.

    Apr 29, 2022
  15. 2022-Q2

    ResMed Quarterly Report for Q2 Ended Dec 31, 2021

    ResMed Inc. reported net revenue of $894.9 million for the three months ended December 31, 2021, up 12% from $800.0 million a year earlier (13% on a constant currency basis). Sleep and Respiratory Care revenue rose to $795.8 million, driven mainly by higher unit sales of devices and masks, including increased demand following a recent product recall by one of its competitors. Software as a Service revenue was $99.0 million, up 8%. Gross margin declined to 56.4% from 57.8%, attributed mainly to higher logistics and manufacturing costs, partially offset by favorable product mix. Diluted earnings per share were $1.37 versus $1.23, and net income was $201.8 million versus $179.5 million. For the six months ended December 31, 2021, net revenue was $1.80 billion, up 16%, and net income was $405.4 million, up 13%. Operating cash flow fell to $154.2 million from $313.9 million, primarily reflecting the $284.8 million final payment to the Australian Taxation Office under the transfer pricing settlement and greater inventory purchases. Inventories rose to $592.1 million from $457.0 million at June 30, 2021. Cash and cash equivalents were $194.5 million, and total debt was $682.0 million outstanding under the revolving credit, term credit and senior notes facilities, with $1.6 billion available under the revolver. The company did not repurchase shares during the quarter, and it declared a $0.42 per share dividend payable March 17, 2022. The filing notes that the company is a defendant in a patent infringement suit filed by New York University and is party to a trademark and false advertising matter involving its Ectosense subsidiary, but management states it cannot estimate a reasonable range of loss from these matters.

    Jan 28, 2022
  16. 2022-Q1

    ResMed Quarterly Report for Q1 Ended Sep 30, 2021

    ResMed Inc. reported net revenue of $904.0 million for the three months ended September 30, 2021, up 20% from $751.9 million a year earlier (19% on a constant currency basis). Sleep and Respiratory Care net revenue was $806.5 million, and Software as a Service revenue was $97.5 million. Gross margin declined to 56.0% from 58.3%, which the company attributed primarily to higher manufacturing and logistics costs and declines in average selling prices. Net income rose to $203.6 million from $178.4 million, and diluted earnings per share were $1.39 compared with $1.22. Non-GAAP diluted earnings per share were $1.51 versus $1.27. The quarter's cash flow was heavily affected by the settlement with the Australian Taxation Office, which resolved a transfer pricing dispute for tax years 2009 through 2018. The final net impact was $238.7 million, and the company remitted a final payment of $284.8 million on September 28, 2021. As a result, net cash used in operating activities was $65.7 million, compared with cash provided of $144.0 million a year earlier. Cash and cash equivalents were $276.1 million at September 30, 2021, and total debt was $805.7 million, with $1.5 billion available under the revolving credit facility. Management cited recovery of core sleep patient flow and increased demand following a competitor's product recall as drivers of device and mask growth, partly offset by lower COVID-19-related ventilator demand. The company also disclosed a patent infringement complaint filed by New York University and an ITC investigation involving Philips in which ResMed is not a party but sells products incorporating some of the communications modules at issue. For both matters, the company stated it was unable to make a reasonable estimate of loss. Share repurchases were suspended during the quarter, and the board declared a $0.42 per share dividend on October 28, 2021.

    Oct 29, 2021
  17. 2021-Q3

    ResMed Quarterly Report for Q3 Ended Mar 31, 2021

    ResMed Inc. reported a net loss of $78.5 million for the three months ended March 31, 2021, compared with net income of $163.1 million a year earlier, driven by a $395.9 million gross unrecognized tax benefit tied to the Australian Taxation Office audit. For the nine months, net income was $279.4 million versus $443.8 million, and diluted EPS was $1.91 versus $3.05. Excluding the unrecognized tax benefit impact of $1.74 per diluted share, the company's operating performance was steady: net revenue was $768.8 million for the quarter, essentially flat with the prior year (a 3% decrease on a constant currency basis), and income from operations rose to $223.4 million from $217.5 million. For the nine months, net revenue grew 6% to $2,320.7 million (4% on a constant currency basis), with masks and other sales up 10% and device sales up 3%. Gross margin was 58.2% for the quarter versus 58.4% a year earlier, pressured by costs tied to the new Singapore site, higher freight and geographic mix. Management noted decreased COVID-19-related ventilator demand and reduced new-patient sleep apnea demand, while resupply of masks remained resilient. Liquidity remained solid: cash and cash equivalents were $230.6 million, total debt was $731.0 million (net of deferred borrowing costs), and $1.5 billion was available under the revolving credit facility. Management stated that cash from operations and borrowings should be sufficient for the next 12 months and beyond. Operating cash flow for the nine months was $510.2 million, and dividends paid totaled $169.9 million. Share repurchases remained suspended.

    Apr 30, 2021
  18. 2021-Q2

    ResMed Quarterly Report for Q2 Ended Dec 31, 2020

    ResMed Inc. reported results for the three and six months ended December 31, 2020 in this Form 10-Q, filed January 28, 2021. Net revenue for the quarter rose to $800.0 million from $736.2 million, an increase of $63.9 million or 9% (7% on a constant currency basis). Sleep and Respiratory Care revenue was $708.2 million, up 9%, and Software as a Service revenue was $91.8 million, up 6%. Gross margin was 57.8% versus 58.0% a year earlier, and diluted EPS was $1.23 versus $1.10. Net income for the quarter was $179.5 million, and the company recorded $13.9 million of restructuring expenses related to closing its Portable Oxygen Concentrator business in November 2020. For the six months, net revenue was $1,552.0 million, up 10% (8% constant currency), net income was $357.9 million, and diluted EPS was $2.45 versus $1.93. Operating cash flow was $313.9 million, compared with $232.3 million a year earlier. Cash and cash equivalents fell to $255.9 million from $463.2 million at June 30, 2020, as the company repaid its revolving credit borrowings. Total debt declined to $825.7 million from $1,176.1 million, and the company stated that cash generated from operations and available borrowings will be sufficient to fund operations for the next 12 months and beyond. Management noted that COVID-19 produced minimal incremental demand for ventilators, that new sleep apnea patient diagnosis pathways were disrupted, and that SaaS customer adoption was slowed by the pandemic. The company also disclosed an ongoing Australian Tax Office audit involving $151.7 million of asserted additional income tax and $38.4 million of accrued interest, of which $75.9 million was paid in April 2018 and recorded as a receivable.

    Jan 29, 2021
  19. 2021-Q1

    ResMed Quarterly Report for Q1 Ended Sep 30, 2020

    ResMed Inc. reported net revenue of $751.9 million for the three months ended September 30, 2020, up 10% from $681.1 million a year earlier (9% on a constant currency basis). Growth came mainly from higher unit sales of devices and masks in Sleep and Respiratory Care, including increased demand for ventilators due to COVID-19. Software as a Service revenue rose 6% to $92.1 million. Gross margin improved to 58.3% from 57.5%, driven primarily by favorable product mix and foreign currency movements. Net income rose to $178.4 million from $120.1 million, and diluted earnings per share increased to $1.22 from $0.83. The filing states that the company expects COVID-19 to cause a temporary decrease in demand for sleep devices from new patients for some or all of fiscal 2021, because diagnostic and prescription pathways have been disrupted. It also expects lower demand for ventilator products in fiscal 2021. Management notes that demand for masks for existing patients should be less affected than device demand. Cash and cash equivalents were $421.4 million at September 30, 2020, down from $463.2 million at June 30, 2020. Operating cash flow was $144.0 million, compared with $162.4 million a year earlier, mainly due to higher inventory and the timing of income tax payments. Total debt carrying value was $1,056.4 million. The filing also discloses an ongoing Australian Tax Office dispute covering tax years 2009 to 2013. The ATO asserted $151.7 million in additional income tax and $38.4 million in accrued interest, and claimed penalties of $75.9 million. The company disagrees with the assessments, believes it is more likely than not to succeed, and has recorded a receivable for the $75.9 million paid in April 2018. Share repurchases remained suspended, and dividends paid were $56.5 million.

    Oct 30, 2020
  20. 2020-Q3

    ResMed Quarterly Report for Q3 Ended Mar 31, 2020

    ResMed Inc. reported net revenue of $769.5 million for the three months ended March 31, 2020, up from $662.2 million a year earlier, an increase of $107.2 million or 16% (17% on a constant currency basis). Diluted earnings per share were $1.12, compared with $0.73 in the prior-year quarter, and net income was $163.1 million versus $105.4 million. Gross margin was 58.4% versus 57.5%, driven by favorable product mix and manufacturing and procurement efficiencies, partly offset by declines in average selling prices. For the nine months, net revenue was $2,186.7 million, up 15%, and diluted EPS was $3.05 versus $2.33. Management stated that demand for ventilators and masks rose sharply due to COVID-19, particularly in China and Europe, and expects continued elevated ventilator demand through the fiscal year ending June 30, 2020. It also expects a temporary decrease in demand for sleep devices from new patients as diagnostic pathways and sleep clinics are disrupted, while mask re-supply is expected to be less affected. The company said the pandemic had not negatively affected its liquidity position. Cash and cash equivalents rose to $352.9 million from $147.1 million, largely from revolver drawdowns, with $895.0 million available under the revolving credit facility at March 31, 2020. Debt totaled $1,376.8 million in carrying value at March 31, 2020, versus $1,270.9 million at June 30, 2019. The company temporarily suspended its share repurchase program due to recent acquisitions and made no repurchases in the period. It also disclosed an Australian Taxation Office assessment of $151.7 million in additional income tax, which it disputes, and noted that the SnapWorx acquisition was completed on January 31, 2020.

    May 1, 2020
  21. 2020-Q2

    ResMed Quarterly Report for Q2 Ended Dec 31, 2019

    ResMed Inc. reported results for the three and six months ended December 31, 2019 in this Form 10-Q. Net revenue for the quarter rose to $736.2 million from $651.1 million, an increase of $85.1 million or 13% (14% on a constant currency basis). Gross margin was 58.0% versus 57.5% a year earlier, and net income increased 29% to $160.6 million. Diluted EPS was $1.10 compared with $0.86. For the six months, net revenue was $1,417.2 million and net income was $280.7 million, with diluted EPS of $1.93 versus $1.60. Growth was driven by Sleep and Respiratory Care, where revenue increased 10% to $649.5 million on higher unit sales of devices and masks, and by the SaaS segment, where revenue rose 37% to $86.7 million, mainly due to MatrixCare, acquired November 13, 2018. Operating expenses grew as acquisitions were consolidated, and interest expense rose to $10.2 million for the quarter from $7.5 million. Effective tax rates fell to 10.2% for the quarter and 14.8% for the six months, helped by windfall tax benefits. Balance-sheet items include cash and equivalents of $204.1 million, total assets of $4.35 billion, and total debt of $1.30 billion. Management has temporarily suspended share repurchases because of recent acquisitions. The filing also discloses the settlement of a False Claims Act matter for a total cost of $40.6 million, a corporate integrity agreement with HHS OIG, and an ongoing Australian Taxation Office audit covering tax years 2014 to 2018.

    Jan 31, 2020
  22. 2020-Q1

    ResMed Quarterly Report for Q1 Ended Sep 30, 2019

    ResMed Inc. reported net revenue of $681.1 million for the three months ended September 30, 2019, up from $588.3 million a year earlier, an increase of $92.8 million or 16% (17% on a constant currency basis). Growth was led by Sleep and Respiratory Care, where net revenue rose 10% to $594.2 million, and Software as a Service, where revenue rose 83% to $86.9 million, predominantly due to MatrixCare, which contributed $34.8 million. Gross margin improved to 59.5% from 58.3%, and diluted earnings per share rose to $0.83 from $0.73. Net income was $120.1 million, compared with $105.7 million. Operating costs rose faster in some areas. Research and development expense increased 24% to $48.0 million, and interest expense increased to $11.0 million from $3.7 million, reflecting debt raised for recent acquisitions. A $6.9 million loss from the Verily joint venture, accounted for under the equity method, also weighed on other income. Total debt was $1.22 billion at September 30, 2019, and the company was in compliance with its debt covenants. The company has temporarily suspended share repurchases following recent acquisitions. The filing also discloses ongoing exposure to the U.S. Department of Health and Human Services and Department of Justice investigations, for which the company has tentatively agreed to a $39.5 million civil resolution. It also discloses a dispute with the Australian Taxation Office over tax years 2009 to 2013, where the ATO asserts $151.7 million in additional income tax and $38.4 million in accrued interest. The company disagrees with these assessments and believes it is more likely than not to prevail.

    Oct 25, 2019
  23. 2019-Q3

    ResMed Quarterly Report for Q3 Ended Mar 31, 2019

    ResMed Inc. reported higher revenue but lower net income for the three months ended March 31, 2019. Net revenue rose to $662.2 million from $591.6 million, an increase of $70.6 million or 12% (15% on a constant currency basis). Net income for the quarter was $105.4 million versus $110.1 million a year earlier, and diluted EPS was $0.73 compared with $0.76. Growth was driven largely by Software as a Service, where revenue reached $79.9 million, up 101%, mainly from the MatrixCare and HealthcareFirst acquisitions. Gross margin improved to 59.2% from 58.2%, while interest expense rose to $12.4 million and total other loss widened to $19.0 million. For the nine months, net income was $335.8 million versus $205.8 million, and diluted EPS was $2.33 versus $1.43. The prior-year period included $132.2 million of additional U.S. tax expense from tax legislation. Total debt rose to $1.34 billion from $281.5 million at June 30, 2018, following acquisitions including MatrixCare, purchased for a base consideration of $750.0 million, and Propeller Health, with total purchase consideration of $242.9 million. Cash and cash equivalents fell to $146.5 million. Operating cash flow was $317.2 million for the nine months, down from $375.6 million, mainly because income tax payments rose to $211.8 million. The company temporarily suspended its share repurchase program due to recent acquisitions and did not repurchase shares in the quarter. The filing also discloses an Australian Taxation Office assessment asserting $151.7 million in additional income tax and $38.4 million in accrued interest for tax years 2009 to 2013. ResMed disputes the assessment, and $75.9 million was paid in April 2018. The company also disclosed administrative subpoenas and a Civil Investigative Demand from U.S. government agencies relating to its industry offerings, and said it is cooperating with those requests. A patent settlement with Fisher & Paykel Healthcare, reached on February 19, 2019, involved no payment or admission of liability.

    May 3, 2019
  24. 2019-Q2

    ResMed Quarterly Report for Q2 Ended Dec 31, 2018

    ResMed Inc. filed this Form 10-Q for the quarter ended December 31, 2018 (signed January 31, 2019), covering the three and six months ended that date. Net revenue for the quarter rose to $651.1 million from $601.3 million, and net income increased to $124.6 million from $9.5 million, with diluted earnings per share of $0.86 versus $0.07. For the six months, net revenue was $1,239.4 million and net income was $230.4 million, or $1.60 per diluted share. Software as a Service revenue grew to $63.2 million in the quarter from $38.7 million, driven predominantly by the acquisitions of MatrixCare (completed November 13, 2018) and HealthcareFirst (completed July 6, 2018). The balance sheet changed materially during the period. Goodwill rose to $1.76 billion from $1.07 billion and other intangible assets rose to $484.9 million from $215.2 million, largely reflecting acquisitions. Long-term debt, net, increased to $1.19 billion from $270.0 million, as the company drew on its revolving credit facility, which was increased to $1.6 billion in November 2018. Cash and cash equivalents fell to $149.5 million, and the company suspended share repurchases during the quarter. Operating cash flow for the six months was $177.6 million, down from $226.5 million, mainly because income tax payments rose to $192.5 million. The filing also discloses ongoing matters that investors should monitor. These include Australian Taxation Office assertions covering tax years 2009 to 2013, patent litigation with Fisher & Paykel Healthcare across several forums, and administrative subpoenas from the U.S. Office of Inspector General of the Department of Health and Human Services. The company also disclosed a subsequent event: the January 7, 2019 acquisition of Propeller Health for $225.0 million in total purchase consideration.

    Feb 1, 2019
  25. 2019-Q1

    ResMed Quarterly Report for Q1 Ended Sep 30, 2018

    ResMed Inc. reported net revenue of $588.3 million for the three months ended September 30, 2018, up from $523.7 million a year earlier, an increase of $64.6 million or 12% (13% on a constant currency basis). Gross profit rose to $343.1 million, with gross margin of 58.3% versus 58.4% in the prior-year quarter, as lower average selling prices were largely offset by manufacturing and procurement efficiencies. Net income was $105.7 million, up 23% from $86.1 million, and diluted EPS was $0.73 compared with $0.60. Software as a Service revenue reached $47.5 million, an increase of 25%, including contributions from Healthcarefirst, acquired July 6, 2018 for total purchase consideration of $126.3 million. Cash generation weakened. Operating cash flow was $48.1 million versus $94.0 million a year earlier, primarily because income tax payments rose to $125.0 million from $30.2 million. Cash and cash equivalents were $230.2 million at September 30, 2018, while total debt increased to $529.6 million from $281.5 million at June 30, 2018, as the company drew on its credit facilities to fund the acquisition and share repurchases. Stockholders' equity declined to $1.90 billion from $2.06 billion, largely because retained earnings fell after the adoption of ASU 2016-16. The filing also details ongoing tax and legal matters. The Australian Taxation Office asserted $151.7 million in additional income tax, $38.4 million in accrued interest and $75.9 million in penalties, and ResMed disputes these assessments. The company remains engaged in patent litigation with Fisher & Paykel Healthcare across several forums, and it is cooperating with additional U.S. Office of Inspector General subpoenas, including a third one received in August 2018.

    Oct 26, 2018
  26. 2018-Q3

    ResMed Quarterly Report for Q3 Ended Mar 31, 2018

    ResMed Inc. reported net revenue of $591.6 million for the three months ended March 31, 2018, up from $514.2 million a year earlier, an increase of $77.4 million or 15% (10% on a constant currency basis). Gross margin was 58.2% versus 58.3% a year ago, and diluted EPS rose to $0.76 from $0.62. Net income for the nine months, however, fell to $205.8 million from $240.7 million, a decrease of 14%, reflected in the filing, largely because of $132.2 million of additional income tax expense tied to the Tax Cuts and Jobs Act. Nine-month diluted EPS was $1.43 versus $1.69. The balance sheet shows cash and cash equivalents of $704.3 million, total assets of $3.5 billion and stockholders' equity of $2.1 billion at March 31, 2018. Long-term debt declined to $810.0 million from $1,080.0 million at June 30, 2017, and the company repurchased 300,000 shares for $27.9 million during the nine months. Debt was subsequently refinanced on April 17, 2018 through an $800 million revolving credit facility and a $200 million term credit facility, both maturing in 2023. The filing also highlights tax and legal matters. The Australian Taxation Office is asserting $151.7 million in additional income tax and $38.4 million in accrued interest for tax years 2009 to 2013; ResMed paid $75.9 million in April 2018 under a payment arrangement and disagrees with the assessments. The company also discloses ongoing patent litigation with Fisher & Paykel Healthcare and U.S. federal administrative subpoenas from the Office of Inspector General.

    Apr 27, 2018
  27. 2018-Q2

    ResMed Quarterly Report for Q2 Ended Dec 31, 2017

    ResMed Inc. reported a 10-Q for the quarter ended December 31, 2017 showing net revenue of $601.3 million for the three months, up from $530.4 million a year earlier, with diluted EPS of $0.07 versus $0.54. The sharp earnings decline reflects a $126.6 million additional income tax expense tied to the Tax Cuts and Jobs Act, which included a $119.9 million transition tax on accumulated foreign earnings and a $6.7 million write-down of net deferred tax assets. For the six months, net revenue was $1,124.9 million and net income was $95.7 million, compared with $152.8 million in the prior-year period. Gross margin was 58.2% for the quarter, essentially flat versus 58.3%, as lower average selling prices were offset by manufacturing and procurement efficiencies. The balance sheet shows cash and cash equivalents of $858.9 million against short-term debt of $1,019.1 million. The company reclassified its revolving credit facility to current because it terminates on October 31, 2018, which cut working capital to $397.9 million from $1,283.9 million at June 30, 2017. Management states it expects new facilities to be in place by June 30, 2018. The company also disclosed that it is under audit by the Australian Taxation Office for tax years 2009 to 2013, with proposed adjustments of approximately $150.0 million in additional tax; it has not recognized any additional liability for this matter. Other items for investors include ongoing patent litigation with Fisher & Paykel Healthcare, U.S. Office of Inspector General administrative subpoenas received in 2016, and a share repurchase of 100,000 shares for $8.5 million during the six months. The company's diluted share count and dividend declared of $0.35 per share for the quarter were also reported.

    Jan 24, 2018
  28. 2018-Q1

    ResMed Quarterly Report for Q1 Ended Sep 30, 2017

    ResMed Inc. reported net revenue of $523.7 million for the three months ended September 30, 2017, up from $465.4 million a year earlier, an increase of $58.2 million or 13% (11% on a constant currency basis). Gross profit rose to $305.6 million from $269.2 million, with gross margin of 58.4% versus 57.8% in the prior-year quarter. Net income was $86.1 million, compared with $76.1 million, and diluted earnings per share were $0.60 versus $0.54. Management attributed the revenue growth to higher unit sales of devices, masks and accessories, partially offset by lower average selling prices. Selling, general and administrative expenses rose to $143.9 million and research and development expenses to $37.4 million. The balance sheet showed cash and cash equivalents of $811.1 million at September 30, 2017, and long-term debt of $1.02 billion, reduced from $1.08 billion at June 30, 2017 after $110.0 million in repayments of borrowings. Total stockholders' equity was $2.05 billion. Management stated that the company temporarily suspended its share repurchase program due to recent acquisitions and made no repurchases during the quarter. Dividends declared were $0.35 per share. The filing also flags ongoing patent litigation with Fisher & Paykel Healthcare, a federal administrative subpoena from the HHS Office of Inspector General, and an Australian Taxation Office audit covering tax years 2009 to 2013. Management does not expect these matters to have a material adverse effect on the consolidated financial statements.

    Oct 27, 2017
  29. 2017-Q3

    ResMed Quarterly Report for Q3 Ended Mar 31, 2017

    ResMed Inc. reported net revenue of $514.2 million for the quarter ended March 31, 2017, up from $453.9 million a year earlier, and $1.51 billion for the nine months, up from $1.32 billion. The filing attributes the quarterly increase mainly to higher unit sales of devices, masks and accessories, partially offset by lower average selling prices. Brightree, acquired April 4, 2016, contributed $35.0 million of revenue in the quarter. Diluted earnings per share were $0.62 for the quarter versus $0.64 a year earlier, and $1.69 for the nine months versus $1.90. Net income for the nine months fell to $240.7 million from $269.3 million, reflecting higher operating expenses, including restructuring costs tied to the closure of Paris manufacturing activities, higher amortization of acquired intangibles, and a swing to net other loss from higher interest expense. Balance sheet and liquidity changed meaningfully. Long-term debt rose to $1.17 billion at March 31, 2017, from $873.3 million at June 30, 2016, after the company drew $300 million on its revolving credit facility on March 30, 2017 to repay its term loan, and the revolver was upsized to $1.3 billion in January 2017. Cash and cash equivalents were $827.3 million, of which $796.4 million was held by non-U.S. subsidiaries. Operating cash flow for the nine months was $273.7 million, down from $405.0 million, which the company attributed to higher inventories and receivables and the timing of income tax payments. The company has temporarily suspended its share repurchase program due to recent acquisitions and did not repurchase shares in the nine months, while paying $139.5 million in dividends. The filing also discloses that the company settled its litigation with BMC Medical and 3B Medical for a one-time payment of $8.5 million, and that it remains in ongoing patent litigation with Fisher & Paykel Healthcare and is cooperating with an OIG administrative subpoena. Management stated that it does not expect these matters to have a material adverse effect on the consolidated financial statements.

    Apr 28, 2017
  30. 2017-Q2

    ResMed Quarterly Report for Q2 Ended Dec 31, 2016

    ResMed Inc. reported results for the three and six months ended December 31, 2016 in this Form 10-Q. Net revenue for the quarter rose to $530.4 million from $454.5 million, and net revenue for the six months was $995.8 million versus $866.2 million. Gross margin for the quarter was 58.3% compared with 58.6% a year earlier. However, net income fell to $76.7 million from $95.6 million, and diluted EPS was $0.54 versus $0.68, reflecting higher selling, general and administrative and research and development spending, $10.1 million of contingent consideration charges, $8.5 million of litigation settlement expenses, and higher amortization of acquired intangibles tied to the Brightree acquisition. The balance sheet strengthened in cash terms, with cash and cash equivalents of $788.1 million at December 31, 2016, up from $731.4 million at June 30, 2016. Operating cash flow for the six months was $206.1 million, down from $280.2 million, mainly due to higher inventories and the timing of income tax payments. Total debt was $1.17 billion, including $870.0 million under the revolving credit facility and $300.0 million under a term loan that matures in April 2017. The company temporarily suspended share repurchases and paid dividends of $92.9 million for the six months. Subsequent events include a January 9, 2017 amendment increasing the revolving credit facility from $1.0 billion to $1.3 billion, and a January 20, 2017 settlement with BMC Medical and 3B that includes an $8.5 million payment by ResMed and royalty payments to ResMed from BMC for a limited period. The company also disclosed ongoing patent litigation with Fisher & Paykel Healthcare and an administrative subpoena from the HHS Office of Inspector General.

    Jan 25, 2017
  31. 2017-Q1

    ResMed Quarterly Report for Q1 Ended Sep 30, 2016

    ResMed Inc. reported net revenue of $465.5 million for the three months ended September 30, 2016, up from $411.6 million a year earlier, an increase of $53.8 million or 13%. Brightree contributed $33.1 million of that revenue; excluding Brightree, net revenue was $432.4 million, up 5%. Gross margin was 57.8% (58.9% excluding a $5.1 million field safety notification expense related to the Astral ventilation device battery), compared with 58.0% a year earlier. Net income fell to $76.1 million from $82.9 million, and diluted EPS was $0.54 versus $0.58, as operating expenses rose sharply with acquisitions, including amortization of acquired intangibles of $11.7 million versus $2.3 million, and research and development up 27%. Cash and cash equivalents rose to $781.7 million, but operating cash flow declined to $86.2 million from $124.6 million, driven mainly by higher inventories and the timing of income tax payments. Total debt was $1.17 billion at September 30, 2016, including $875.0 million drawn on the revolving credit facility and $300.0 million on a term loan tied to the April 2016 Brightree acquisition, which the company plans to refinance before its maturity. The company temporarily suspended its share repurchase program due to recent acquisitions and did not buy back any shares in the quarter. Dividends paid were $46.4 million. The filing also discloses ongoing patent and antitrust litigation with BMC Medical and 3B Medical, a patent dispute with Fisher & Paykel Healthcare that includes preliminary injunctions in Germany against FPH's masks, and a federal administrative subpoena from the HHS Office of Inspector General relating to patient resupply software. Management states it does not expect these matters to have a material adverse effect on the consolidated financial statements.

    Oct 28, 2016
  32. 2016-Q3

    ResMed Quarterly Report for Q3 Ended Mar 31, 2016

    ResMed Inc. reported net revenue of $453.9 million for the three months ended March 31, 2016, up from $422.5 million a year earlier, with net income of $88.5 million versus $91.0 million, and diluted EPS of $0.63 versus $0.64. For the nine months, net revenue was $1.32 billion (versus $1.23 billion) and net income was $259.4 million (versus $265.4 million), with diluted EPS of $1.83 versus $1.86. Gross margin declined to 57.3% in the quarter from 59.5%, which the filing attributes to unfavorable product mix, lower average selling prices, unfavorable geographic mix and higher warranty costs. Devices grew 8% and masks and other accessories grew 6% in the quarter, and North and Latin America revenue rose 12%. The balance sheet shows cash and cash equivalents of $718.5 million and long-term debt of $435.6 million at March 31, 2016, up from $300.6 million at June 30, 2015, after the company drew on its credit facility to fund acquisitions. Business acquisitions used $242.6 million in cash during the nine months, including Curative Medical Technology, Maribo Medico, Bennett Precision Tooling and Inova Labs. The share repurchase program has been temporarily suspended, and no shares were repurchased in the quarter. A significant subsequent event is the April 4, 2016 acquisition of Brightree LLC for a total purchase consideration of $800 million, funded in part by a new $300 million one-year term loan. The revolving credit facility was increased from $700 million to $1 billion. The filing states that total consolidated debt is expected to be approximately $1.2 billion after the Brightree acquisition, and the company has added a risk factor on its leverage and debt service obligations.

    Apr 29, 2016
  33. 2016-Q2

    ResMed Quarterly Report for Q2 Ended Dec 31, 2015

    ResMed Inc. reported net revenue of $454.5 million for the three months ended December 31, 2015, up from $423.0 million a year earlier, an increase of $31.6 million or 7% (13% on a constant currency basis). Growth was driven mainly by higher unit sales of flow generators, masks and accessories, partly offset by lower average selling prices. Gross margin fell to 58.6% from 62.2%, reflecting unfavorable product and geographic mix and lower average selling prices. Diluted EPS was $0.64 in both the current and prior-year quarters, while net income declined slightly to $90.5 million from $91.2 million. For the six months, net revenue rose 8% to $866.2 million, but net income fell 2% to $170.9 million. Balance sheet activity during the period reflected acquisitions and capital returns. Goodwill and other intangible assets rose to $466.4 million from $311.4 million after the October and November 2015 acquisitions of Curative Medical Technology, Maribo Medico and Bennett Precision Tooling. Total debt increased to $401.6 million from $300.6 million, with $400.0 million outstanding under the credit agreement, while cash and cash equivalents declined to $658.8 million. Operating cash flow for the six months was $269.5 million, and the company repurchased 1.9 million shares for $102.1 million and paid $84.1 million in dividends. Management also recorded $6.9 million of restructuring expenses tied to rationalizing European research and development and manufacturing operations. The filing highlights several risks. A SERVE-HF clinical trial identified a statistically significant 2.5 percent absolute increase in cardiovascular mortality for patients receiving ASV therapy with moderate to severe predominant central sleep apnea and symptomatic chronic heart failure with reduced ejection fraction, and the company is working with regulators to revise device labeling. Ongoing patent litigation with BMC Medical and an antitrust suit filed by 3B Medical are also described. Foreign currency movements unfavorably affected revenue by approximately $21.7 million in the quarter. The company also announced a definitive agreement on December 24, 2015 to acquire Inova Labs, a portable oxygen concentrator business, expected to close in the quarter ending March 31, 2016.

    Jan 28, 2016
  34. 2016-Q1

    ResMed Quarterly Report for Q1 Ended Sep 30, 2015

    ResMed Inc. reported net revenue of $411.6 million for the three months ended September 30, 2015, up 8% from $380.4 million a year earlier (15% on a constant currency basis). Gross margin fell to 58.0% from 62.4%, which the company attributed to unfavorable product mix, declining average selling prices and an unfavorable geographic mix. Net income declined to $80.4 million from $83.3 million, and diluted earnings per share were $0.57 compared with $0.58. Income from operations rose to $98.0 million from $94.7 million, while total other income, net fell to $1.4 million from $7.3 million, largely due to losses on foreign currency hedging instruments. Cash and cash equivalents rose to $822.1 million at September 30, 2015, from $717.2 million at June 30, 2015, after the company drew $200.0 million in borrowings. Long-term debt increased to $500.6 million, all under the credit agreement, of which $500.0 million was outstanding. Operating cash flow was $122.1 million, versus $86.5 million a year earlier. The company repurchased 1.2 million shares for $62.0 million and paid dividends of $42.1 million. Stockholders' equity fell to $1.46 billion from $1.59 billion, mainly due to a $295.6 million accumulated other comprehensive loss from foreign currency translation. After the quarter end, on October 2, 2015, ResMed completed the acquisition of Curative Medical Technology Inc., a provider of non-invasive ventilation and sleep-disordered breathing devices in China, funded with cash on hand and described as not material. The filing also discloses ongoing patent litigation against BMC Medical Co., Ltd. and an antitrust suit filed in 2015 by its U.S. distributor, 3B Medical, Inc., against ResMed Corp.; management does not expect these matters to have a material adverse effect.

    Oct 27, 2015
  35. 2015-Q3

    ResMed Quarterly Report for Q3 Ended Mar 31, 2015

    ResMed Inc. reported net revenue of $422.5 million for the three months ended March 31, 2015, up from $397.8 million a year earlier, and $1.23 billion ($1,225.8 million) for the nine months, up from $1.14 billion. Diluted earnings per share rose to $0.64 for the quarter (from $0.63) and $1.86 for the nine months (from $1.78). Net income was $91.0 million for the quarter and $265.4 million for the nine months. The filing attributes revenue growth mainly to higher flow generator unit sales, partly offset by lower average selling prices, and notes that currency movements unfavorably affected revenue by approximately $28.5 million in the quarter and $41.9 million for the nine months. Gross margin fell to 59.5% in the quarter from 63.3% a year earlier, which management attributed to lower average selling prices, unfavorable product mix, exchange rate movements and geographic mix. Balance sheet and cash flow changes were significant. Cash and cash equivalents declined to $866.3 million from $905.7 million at June 30, 2014, largely because of a $184.1 million negative effect from exchange rates. Long-term debt rose to $460.6 million from $300.8 million, with $460.0 million outstanding under a $700 million revolving credit facility. Inventories increased to $225.2 million, and the company repurchased 1.8 million shares for $96.7 million in the nine months while paying $117.9 million in dividends. Operating cash flow was $283.5 million for the nine months. Accumulated other comprehensive loss widened to $199.5 million, reflecting foreign currency translation losses. Legal matters include a 2015 antitrust suit filed by BMC's U.S. distributor, 3B Medical, Inc., against ResMed Inc. and ResMed Corp., which ResMed has denied. In the ongoing patent dispute with BMC Medical Co., Ltd., the U.S. International Trade Commission ruled in December 2014 that certain BMC masks infringed ResMed's patents. The company stated it does not expect the litigation to have a material adverse effect on its consolidated financial statements.

    Apr 29, 2015
  36. 2015-Q2

    ResMed Quarterly Report for Q2 Ended Dec 31, 2014

    ResMed Inc. reported net revenue of $423.0 million for the three months ended December 31, 2014, up 10% from $384.3 million a year earlier (14% on a constant currency basis). Net income rose 5% to $91.2 million, and diluted earnings per share increased to $0.64 from $0.60. Gross margin declined to 62.2% from 64.7%, which the company attributed mainly to lower average selling prices and unfavorable product mix, partly offset by manufacturing and supply chain improvements. For the six months, net revenue was $803.4 million, up 8%, and net income was $174.4 million, up 4%. Operating cash flow for the six months was $192.5 million. The balance sheet shows cash and cash equivalents of $880.7 million, against long-term debt of $449.7 million. The company stated that $449.0 million was outstanding under its $700 million revolving credit facility at December 31, 2014, and that it was in compliance with its debt covenants. Total stockholders' equity fell to $1.6 billion from $1.8 billion at June 30, 2014, mainly reflecting a decline in accumulated other comprehensive income, which the company linked to foreign currency translation losses of $233.1 million for the six months. Inventories rose to $218.1 million, which management attributed to new product introductions, and accounts receivable days outstanding increased to 73 days from 70 days. The company continued launching products, including the AirCurve 10 series of bilevel devices and the Astral life support ventilation platform. It also acquired four distributors in Australia and New Zealand during the six months, and it reported ongoing patent litigation against BMC Medical Co., Ltd, in which the U.S. International Trade Commission ruled that certain BMC masks infringed ResMed patents.

    Jan 30, 2015
  37. 2015-Q1

    ResMed Quarterly Report for Q1 Ended Sep 30, 2014

    ResMed Inc. reported net revenue of $380.4 million for the three months ended September 30, 2014, up from $357.7 million a year earlier, an increase of $22.7 million or 6%. Growth was driven mainly by higher unit sales of flow generators, masks and accessories, partly offset by lower average selling prices. Revenue outside North and Latin America rose 11% to $173.2 million, while North and Latin America rose 3% to $207.2 million. Gross margin declined to 62.4% from 63.7%, reflecting lower average selling prices and unfavorable product mix, while selling, general and administrative expenses rose 9% to $110.5 million. Net income increased 3% to $83.3 million and diluted earnings per share rose to $0.58 from $0.56. The results were supported by a one-time $3.2 million tax benefit from the resolution of a German tax audit, and by other income, net of $7.3 million. Operating income was $94.7 million, slightly below $96.9 million a year earlier. The balance sheet shows cash and cash equivalents of $881.7 million, against long-term debt of $375.7 million, up from $300.8 million at June 30, 2014. Stockholders' equity fell to $1.65 billion from $1.76 billion, largely because foreign currency translation losses of $125.1 million reduced comprehensive income to a loss of $41.8 million. The company repurchased 0.8 million shares for $42.9 million and paid dividends of $39.2 million during the quarter, and it acquired two Australian distributors for a total purchase price of $7.3 million.

    Oct 31, 2014
  38. 2014-Q3

    ResMed Quarterly Report for Q3 Ended Mar 31, 2014

    ResMed Inc. reported results for the three and nine months ended March 31, 2014 in this Form 10-Q, filed April 30, 2014. Net revenue for the quarter rose to $397.8 million from $383.6 million, an increase of 4%, with growth driven mainly by higher unit sales of flow generators, masks and accessories, partly offset by lower average selling prices. Gross margin improved to 63.3% from 62.4%, and net income increased to $90.0 million from $84.9 million. Diluted earnings per share were $0.63 versus $0.58 a year earlier. For the nine months, net revenue was $1.14 billion, net income was $257.5 million, and diluted EPS was $1.78 compared with $1.60. The balance sheet strengthened in cash terms but took on more debt. Cash and cash equivalents were $938.6 million at March 31, 2014, while long-term debt rose to $395.8 million from $300.8 million at June 30, 2013, primarily under a $700 million revolving credit facility entered into in October 2013, of which $395.0 million was outstanding. Operating cash flow for the nine months was $275.7 million, broadly flat year over year. The company repurchased 3.6 million shares for $167.6 million during the nine months and paid $106.4 million in dividends. A new 20 million share repurchase program was approved on February 21, 2014, with 19.1 million shares still available at quarter end. Management guided that selling, general and administrative expenses should be about 29% of net revenue and research and development about 8% for the fiscal year ending June 30, 2014. The filing also discloses ongoing patent litigation against competitors APEX and BMC Medical, which management does not expect to have a material adverse effect on consolidated financial statements.

    May 1, 2014
  39. 2014-Q2

    ResMed Quarterly Report for Q2 Ended Dec 31, 2013

    ResMed Inc. reported net revenue of $384.3 million for the three months ended December 31, 2013, up from $376.5 million a year earlier, an increase of $7.8 million or 2%. Excluding currency movements, net revenue grew 1%. Gross margin rose to 64.7% from 61.8%, driven mainly by manufacturing and supply chain improvements and favorable product mix, partly offset by declining average selling prices. Diluted earnings per share increased to $0.60 from $0.53, and net income for the quarter was $86.6 million. For the six months ended December 31, 2013, net revenue was $742.0 million, up 4%, and net income was $167.6 million, or $1.15 per diluted share. The balance sheet strengthened over the period. Cash and cash equivalents were $972.7 million at December 31, 2013, compared with $876.0 million at June 30, 2013. Long-term debt rose to $435.8 million from $300.8 million, reflecting a $700 million five-year revolving credit facility entered into on October 31, 2013, of which $435.0 million was outstanding at period end. The company repurchased 2.0 million shares for $95.1 million during the six months and paid dividends of $71.1 million. Management expects selling, general and administrative expenses of about 29% of net revenue and research and development expenses of about 8% of net revenue for the year ending June 30, 2014. Management cited increased competitor activity and competitive bidding as reasons for a 2% decline in North and Latin America revenue, while international revenue grew 8%. The company also disclosed ongoing patent litigation against competitors APEX and BMC Medical, and management does not expect these matters to have a material adverse effect on the consolidated financial statements.

    Jan 29, 2014
  40. 2014-Q1

    ResMed Quarterly Report for Q1 Ended Sep 30, 2013

    ResMed Inc. reported net revenue of $357.7 million for the three months ended September 30, 2013, up from $339.7 million a year earlier, an increase of $17.9 million or 5%. Gross profit rose to $228.0 million from $208.6 million, and gross margin improved to 63.7% from 61.4%, which management attributed mainly to product mix, currency benefits from a weaker Australian dollar, and manufacturing and supply chain improvements, partly offset by lower average selling prices. Net income was $80.9 million, or $0.56 per diluted share, compared with $71.3 million, or $0.49 per diluted share, a year earlier. The balance sheet strengthened over the quarter, with cash and cash equivalents of $976.6 million at September 30, 2013, up from $876.0 million at June 30, 2013. Total debt rose to $360.8 million, almost entirely the $360.0 million outstanding under a credit facility that terminates on February 10, 2014. Management stated it is finalizing a new financing facility and expects it to be in place before the existing one expires. Of the cash balance, $948.5 million was held by non-U.S. subsidiaries, which would be subject to tax if repatriated, and management stated its intent is to permanently reinvest those funds outside the United States. The company repurchased 0.4 million shares for $21.1 million and paid $35.5 million in dividends during the quarter, with dividends declared at $0.25 per share versus $0.17 a year earlier. Operating cash flow was $90.4 million. Management said it expects future selling, general and administrative expenses to be about 28% of net revenue and research and development expenses to be about 8%. Pending litigation with competitors APEX and BMC Medical is ongoing, and management does not expect either to have a material adverse effect on the consolidated financial statements.

    Oct 30, 2013
  41. 2013-Q3

    ResMed Quarterly Report for Q3 Ended Mar 31, 2013

    ResMed Inc. reported third-quarter fiscal 2013 results (quarter ended March 31, 2013) in this Form 10-Q filed May 1, 2013. Net revenue for the three months rose to $383.6 million from $349.1 million, and net income increased to $84.9 million, or $0.58 per diluted share, versus $64.6 million, or $0.44 per diluted share, a year earlier. Gross margin improved to 62.4% from 60.3%, attributed to manufacturing and supply chain improvements and favorable product mix. For the nine months, net revenue was $1,099.9 million and net income was $234.1 million, or $1.60 per diluted share. The balance sheet shows cash and cash equivalents of $1.01 billion, total assets of $2.37 billion and stockholders' equity of $1.77 billion at March 31, 2013. The $340.0 million outstanding under the credit agreement is now classified as a current liability because the facility terminates on February 10, 2014. Management states it has commenced negotiations for a new financing facility and expects it to be in place before the existing facility expires. Of the cash balance, $981.4 million was held by non-U.S. subsidiaries and is indefinitely invested outside the United States, so repatriation would trigger incremental tax. Capital returns continued during the period: the company repurchased 2.8 million shares for $115.3 million in the nine months, initiated a quarterly dividend of $0.17 per share, and paid $72.9 million in dividends in the nine months. The filing also discloses that the Medicare competitive bidding second round set an average reduction of approximately 47% on a weighted average basis for CPAP and respiratory devices, effective July 1, 2013.

    May 1, 2013
  42. 2013-Q2

    ResMed Quarterly Report for Q2 Ended Dec 31, 2012

    ResMed Inc. reported net revenue of $376.5 million for the three months ended December 31, 2012, up from $332.7 million a year earlier, an increase of $43.8 million or 13%. Gross profit rose to $232.7 million, with gross margin of 61.8% versus 59.7% in the prior-year quarter, which management attributed mainly to manufacturing and supply chain improvements and a favorable product mix, partly offset by lower average selling prices. Net income for the quarter was $77.9 million, or $0.53 per diluted share, compared with $62.9 million, or $0.42 per diluted share, a year earlier. For the six months, net revenue was $716.3 million, up 11%, and diluted EPS was $1.02 versus $0.75. The balance sheet strengthened over the period. Cash and cash equivalents were $958.3 million at December 31, 2012, up from $809.5 million at June 30, 2012, though $915.4 million of that was held by non-U.S. subsidiaries. Long-term debt rose to $300.9 million, consisting almost entirely of $300.0 million outstanding under the revolving credit facility. Operating cash flow for the six months was $171.9 million, down from $200.2 million, which management attributed mainly to the timing of tax installment payments and higher receivables and inventories. The company also initiated a quarterly dividend of $0.17 per share, paid $48.7 million in dividends during the six months, and repurchased 1.2 million shares for $48.1 million. Management expects selling, general and administrative expenses to be about 29% of net revenue and research and development expenses to be about 8% of net revenue going forward. The filing notes a pending University of Sydney lawsuit, for which management does not expect a material adverse effect.

    Jan 31, 2013
  43. 2013-Q1

    ResMed Quarterly Report for Q1 Ended Sep 30, 2012

    ResMed Inc. reported net revenue of $339.7 million for the three months ended September 30, 2012, up from $314.8 million a year earlier, an increase of $25.0 million or 8%. The filing states that excluding unfavorable foreign currency movements, net revenue grew 12%. Gross profit rose to $208.6 million from $185.1 million, with gross margin improving to 61.4% from 58.8%, attributed to manufacturing and logistics improvements and a favorable product mix, partly offset by lower average selling prices. Net income was $71.3 million, or $0.49 per diluted share, compared with $50.5 million, or $0.33 per diluted share, in the prior-year quarter. The balance sheet strengthened over the quarter. Cash and cash equivalents rose to $890.6 million from $809.5 million at June 30, 2012, and total assets were $2.24 billion. Long-term debt increased to $265.8 million, almost entirely drawn under a credit agreement with $265.0 million outstanding, and management stated the company was in compliance with its debt covenants. Operating cash flow was $78.3 million, down from $89.5 million, which management attributed to the timing of tax installment payments and higher inventory to support revenue growth. Inventories rose to $193.2 million. Capital allocation included a $0.17 per share dividend, totaling $22.8 million paid in the quarter, and share repurchases of 0.2 million shares for $8.1 million, leaving 8.6 million shares available under the current authorization. The company also acquired Umbian Inc. on July 20, 2012 for an initial price of $5.6 million, plus a potential earn-out of up to $35.4 million, of which $13.1 million was recognized as a liability.

    Oct 31, 2012
  44. 2012-Q3

    ResMed Quarterly Report for Q3 Ended Mar 31, 2012

    ResMed Inc. reported net revenue of $349.1 million for the three months ended March 31, 2012, up 11% from $313.3 million a year earlier, and net revenue of $996.6 million for the nine months, up 11% from $901.3 million. Gross margin was 60.3% for the quarter versus 58.3% a year earlier, though for the nine months gross profit as a percentage of net revenue declined to 59.6% from 60.2%, which the company attributed mainly to unfavorable currency movements and lower average selling prices. Diluted earnings per share were $0.44 for the quarter, up from $0.34, and $1.18 for the nine months, up from $1.07. Net income for the nine months was $178.0 million, compared with $168.5 million a year earlier. The balance sheet shows cash and cash equivalents of $776.1 million at March 31, 2012, against long-term debt of $235.0 million outstanding under a credit agreement that the company amended on January 25, 2012 to raise the revolving limit from $300 million to $400 million. Of the cash balance, $741.9 million was held by non-U.S. subsidiaries and indefinitely invested outside the United States. The company repurchased 10.8 million shares for $302.2 million during the nine months and has 11.6 million additional shares available under its August 2011 authorization. Management expects future selling, general and administrative expense of 29% to 30% of net revenue and research and development expense of approximately 8% of net revenue. The filing also discloses two acquisitions completed in fiscal 2012, BiancaMed Ltd. and Gruendler GmbH, for total consideration of $64.5 million funded from cash on hand. The company is in ongoing litigation with the University of Sydney, for which no range of loss can be reasonably estimated, though management does not expect a material adverse effect.

    May 1, 2012
  45. 2012-Q2

    ResMed Quarterly Report for Q2 Ended Dec 31, 2011

    ResMed Inc. reported net revenue of $332.7 million for the three months ended December 31, 2011, up from $306.0 million a year earlier, an increase of $26.7 million or 9%. Gross margin fell to 59.7% from 60.8%, which the company attributed mainly to unfavorable currency movements, primarily the appreciation of the Australian dollar, and declining average selling prices, partly offset by product mix and manufacturing cost savings. Diluted earnings per share rose to $0.42 from $0.37, and net income for the quarter was $62.9 million. For the six months, net revenue was $647.5 million, up 10%, while diluted EPS was $0.75 versus $0.73 a year earlier, and net income was $113.4 million versus $115.2 million. Balance sheet and cash flow changes are notable. Long-term debt rose to $225.0 million from $100.0 million at June 30, 2011, following borrowings under a $300 million revolving credit facility. Cash and cash equivalents were $723.2 million, with $672.1 million held by non-U.S. subsidiaries that the company describes as indefinitely invested outside the United States. Operating cash flow for the six months was $200.2 million, compared with $127.5 million a year earlier. The company repurchased 8.5 million shares for $235.2 million during the six months and has 14.0 million shares remaining under its August 2011 authorization. During the period, ResMed completed two small acquisitions, BiancaMed Ltd. and Gruendler GmbH, for total consideration of $64.5 million funded from cash on hand. Subsequently, on January 25, 2012, the company amended its credit agreement to increase the revolving facility from $300 million to $400 million. Management expects selling, general and administrative expense to be about 30% of net revenue and research and development expense to be about 8% of net revenue going forward.

    Feb 2, 2012
  46. 2012-Q1-A

    ResMed Quarterly Report (Amendment) for Q1 Ended Sep 30, 2011

    This Form 10-Q/A (Amendment No. 1) from ResMed Inc. for the quarterly period ended September 30, 2011 was filed on November 21, 2011 to correct an error on the cover page. The amendment corrects the number of shares of common stock outstanding as of October 25, 2011 to 147,092,208, from a previously reported 166,298,681, because the original figure incorrectly included 19,206,473 shares held as treasury shares. The filing states that it does not alter any other part of the original report, which was filed with the SEC on November 3, 2011. The amendment was made for the sole purpose of correcting that cover page figure and of including Exhibits 31.1 and 31.2, the Rule 13a-14(a) and Rule 15d-14(a) certifications of the Chief Executive Officer and Chief Financial Officer. The filing is signed by Peter C. Farrell, Chairman, chief executive officer and president, and Brett A. Sandercock, chief financial officer. The registrant is identified as a large accelerated filer and a non-shell company, with a Delaware incorporation and principal executive offices in San Diego, California. For investors, the filing's substantive content is limited to the corrected share count. It contains no financial statements, results of operations or management discussion in this document; the financial information remains in the original Form 10-Q filed November 3, 2011.

    Nov 21, 2011
  47. 2012-Q1

    ResMed Quarterly Report for Q1 Ended Sep 30, 2011

    ResMed Inc. reported net revenue of $314.8 million for the three months ended September 30, 2011, up from $282.0 million a year earlier, an increase of $32.8 million or 12%. The filing states that excluding favorable foreign currency movements, net revenue increased by 8%. Growth was led by masks and other accessories, which rose 20% to $143.8 million, while flow generators rose 6% to $171.0 million. Gross margin declined to 58.8% from 61.7%, which the company attributed mainly to unfavorable currency movements, particularly the appreciation of the Australian dollar, and declines in average selling prices, partly offset by product mix and manufacturing savings. Profitability weakened on higher operating costs. Selling, general and administrative expenses rose to $94.2 million and research and development expenses rose 33% to $26.2 million, and income from operations fell to $60.9 million from $66.4 million. Net income declined to $50.5 million, or $0.33 per diluted share, from $56.7 million, or $0.36 per diluted share. Other income, net fell to $5.6 million, largely due to foreign currency and hedging losses. The effective tax rate was approximately 24.0%, versus 25.9% a year earlier. The balance sheet shows cash and cash equivalents of $610.1 million, down from $735.3 million at June 30, 2011, and long-term debt of $134.1 million, up from $100.2 million. The company repurchased 4.4 million shares for $124.7 million during the quarter under a new 20.0 million share program authorized August 24, 2011, and completed two acquisitions, BiancaMed Ltd. and Gruendler GmbH, for total consideration of $64.5 million, funded with cash on hand.

    Nov 3, 2011
  48. 2011-Q3

    ResMed Quarterly Report for Q3 Ended Mar 31, 2011

    ResMed Inc. reported net revenue of $313.3 million for the three months ended March 31, 2011, up from $278.7 million a year earlier, an increase of $34.6 million or 12%. Gross margin was 58.3% versus 59.8% in the prior-year quarter, which the company attributes mainly to unfavorable currency movements, notably the appreciation of the Australian dollar, and lower average selling prices. Net income for the quarter was $53.4 million, or $0.34 per diluted share, compared with $48.8 million, or $0.31 per diluted share. For the nine months ended March 31, 2011, net revenue was $901.3 million, up 13%, and net income was $168.5 million, or $1.07 per diluted share. The balance sheet strengthened over the period. Cash and cash equivalents rose to $671.7 million from $488.8 million at June 30, 2010, and stockholders' equity reached $1.66 billion. The company entered a $300 million three-year revolving credit facility on February 10, 2011, of which $80.0 million was outstanding at March 31, 2011. During the nine months, the company repurchased 2.8 million shares at a cost of $96.1 million. The filing also flags regulatory and legal items. The Patient Protection and Affordable Care Act will impose a 2.3% excise tax on medical device sales beginning in 2013, which applies to all of the company's products. The FDA has also announced 510(k) process reforms that could add regulatory requirements. Litigation includes a long-running University of Sydney claim and a March 2011 suit from SMRT LLC, a former customer; management does not expect either to have a material adverse effect.

    May 3, 2011
  49. 2011-Q2

    ResMed Quarterly Report for Q2 Ended Dec 31, 2010

    ResMed Inc. (RMD) reported results for the three and six months ended December 31, 2010 in this Form 10-Q, filed on February 2, 2011. Net revenues for the quarter rose to $305.99 million from $275.13 million a year earlier, and net income increased to $58.46 million, or $0.37 per diluted share, from $45.98 million, or $0.30 per diluted share. For the six months, net revenues reached $587.99 million versus $522.13 million, and net income was $115.16 million, or $0.73 per diluted share, compared with $88.09 million, or $0.57 per diluted share. Gross margin improved to 60.8% for the quarter from 59.7%, which the company attributed to new product introductions, manufacturing and supply chain cost savings, and product mix, partly offset by the stronger Australian dollar. The balance sheet strengthened over the period. Cash and cash equivalents rose to $616.2 million from $488.8 million at June 30, 2010, and total long-term debt fell to $64.4 million, all of it current and subject to variable rates, from $121.7 million. Management noted that the revolving facility of $64.1 million must be repaid before March 1, 2011, and that the Tranche A, Tranche B and Tranche D loans had been fully repaid. The company also repurchased 0.9 million shares for $36.6 million during the six months and reported that 13.6 million additional shares could be repurchased under its program. Management expects selling, general and administrative expense to run between 30% and 31% of net revenue and research and development expense between 7% and 8% of net revenue. The filing also discusses a Vaughn Medical litigation that was settled in December 2010, and it flags health care reform, including a 2.3% excise tax on medical devices beginning in 2013, as a risk to the industry and to the company's results.

    Feb 3, 2011
  50. 2011-Q1

    ResMed Quarterly Report for Q1 Ended Sep 30, 2010

    ResMed Inc. reported net revenue of $282.0 million for the quarter ended September 30, 2010, up from $247.0 million a year earlier, an increase of $35.0 million or 14%. Excluding unfavorable currency movements of approximately $7.7 million, revenue grew 17%. Gross margin was 61.7% versus 60.8% in the prior-year quarter, and income from operations rose to $66.4 million from $52.7 million. Net income was $56.7 million, or $0.36 per diluted share, compared with $42.1 million, or $0.27 per diluted share, a year earlier. The filing attributes revenue growth mainly to higher unit sales of flow generators, masks and accessories, and cites recent product releases including the S9 flow generator and the Swift FX and Mirage SoftGel masks. The balance sheet strengthened over the quarter. Cash and cash equivalents rose to $540.0 million from $488.8 million at June 30, 2010, and working capital was $782.2 million. Total debt was $93.8 million, all of it current and subject to variable interest rates, and the company repaid $30.0 million of borrowings during the quarter. Operating cash flow was $59.1 million, down from $64.1 million a year earlier, and the company repurchased 0.3 million shares for $17.9 million. Net cash provided by operating activities decreased year over year. Other notable items include a two-for-one stock split effected through a 100% stock dividend distributed on August 30, 2010, a business acquisition of headgear supplier assets for a total purchase price of $21.7 million on August 19, 2010, and a $2.3 million impairment charge on long-lived assets. Management expects SG&A between 30% and 31% of net revenue and R&D between 7% and 8% of net revenue going forward. Legal matters, including a University of Sydney claim and a German tax assessment, are described as not expected to have a material adverse effect.

    Nov 3, 2010