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Actionable news in RMD: RESMED Inc,

Resmed Inc. Announces Results For The First Quarter Of Fiscal Year 2016

The following excerpt is from the company's SEC filing.

Revenue increased 8% to $412 million; up 15% on a constant currency basis

GAAP diluted earnings per share of $0.57, or non-GAAP earnings per share of $0.58

Operating cash flow of $122.1 million

Company repurchased 1.2 million shares in the first quarter

San Diego, October 22, 2015

ResMed Inc. (NYSE: RMD) today announced results for its quarter ended September 30, 2015. Revenue for the quarter was $411.6 million, an 8 percent increase compared with the quarter ended September 30, 2014 (a 15 percent increase on a constant currency basis).

Our global team was able to drive strong double-digit constant currency growth in the first quarter of fiscal year 2016. This result was led by 39 percent flow generator and 9 percent mask growth in the Americas, said Mick Farrell, ResMeds chief executive officer. We are investing for ongoing expansion and leadership in our high-growth regions. In October, we completed the acquisition of Curative Medical, making our combined ResMed and Curative business the market leader in sleep-disordered breathing and respiratory care in China.

Farrell continued, It has been a year since we launched our Air Solutions Platform. We have made incredible progress, with over one million patients with cloud-connected devices on bedside tables, providing actionable data every day for patients, customers, providers and payors. Our leading informatics capabilities enable our global team to enhance and deliver the most innovative products and solutions that improve patient outcomes, create efficiencies for our customers, help providers better manage chronic disease and lower healthcare costs. We have established ourselves as leaders in the field of connected care and digital health.

Analysis of first quarter results

In the first quarter of fiscal year 2016, revenue in the Americas was $254.2 million, a 23 percent increase over the prior years quarter. Revenue in combined EMEA and APAC was $157.5 million, a 9 percent decrease compared with the quarter ended September 30, 2014 (a 5 percent increase on a constant currency basis).

Gross margin was 58.0 percent in the first quarter of fiscal year 2016, lower than the prior years quarter mainly due to an unfavorable product mix, declines in average selling prices and an unfavorable geographic mix.

Income from operations for the quarter was $98.0 million, a 4 percent increase compared with the quarter ended September 30, 2014. Non-GAAP income from operations for the quarter was $100.3 million, a 4 percent increase compared with the quarter ended September 30, 2014.

Selling, general and administrative expenses were $111.1 million for the first quarter of fiscal year 2016, a 1 percent increase (an 11 percent increase on a constant currency basis) over the quarter ended September 30, 2014. SG&A expenses improved to 27.0 percent of revenue in the quarter, compared with 29.1 percent in the quarter ended September 30, 2014.

Research and development expenses were $27.2 million for the first quarter of fiscal year 2016, or 6.6 percent of revenue. R&D expenses decreased by 9 percent (a 12 percent increase on a constant currency basis) compared with the quarter ended September 30, 2014.

Amortization of acquired intangible assets was $2.3 million during the quarter. Stock-based compensation costs incurred during the quarter of $12.4 million consisted of expenses associated with employee equity grants, and the companys employee stock purchase plan.

Net income for the quarter was $80.4 million, a 3 percent decrease compared with the quarter ended September 30, 2014. Non-GAAP net income for the quarter ended September 30, 2015 was $82.1 million, a 3 percent decrease compared with the quarter ended September 30, 2014 (non-GAAP measures exclude the impact of amortization of acquired intangibles).

Diluted earnings per share for the quarter were $0.57. Non-GAAP diluted earnings per share for the quarter were $0.58.

Cash flow from operations for the quarter was $122.1 million.

Share repurchase program

During the quarter, the company repurchased 1.2 million...


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