Resmed (RMD) shares jumped more than 9% yesterday after the medical device maker lifted second-quarter revenue 17% to $US530 million, helped by income from the Brightree business it acquired in 2016. Quarterly dividend of 33 US cents a share, was up 10% from 30 US cents.
The shares closed at $8.92, up 9.2%.
The company, which specialises in sleep disorder equipment, says revenue for the three months to December 31 rose 21% in the America’s to $US326.8 million – but only 9% cent once the Brightree home health software business contribution was excluded.
Brightree supplies cloud-based business-management and clinical software to the post-acute care industry where there is a high prevalence of sleep-disordered breathing and chronic obstructive pulmonary disease.
Net income for the quarter was $US76.7 million, down 20% compared to the same period of the prior year. Non-GAAP net income was $US103.3 million, a 1% increase compared to the prior year.
Research and development expenses were $US38.2 million, or 7.2% of revenue. R&D expenses increased by 32% compared with the same period last year, or a 28%.
Net profit for the first half of the financial year fell 14% to $US152.8 million, from $US178.5 million.
ResMed also lifted its gross margins for the quarter thanks to more efficient manufacturing and procurement processes. “We had a strong quarter, with 18 per cent constant currency revenue growth led by solid growth in our Brightree software offerings and global device sales," said ResMed chief executive Mick Farrell yesterday.
"We are focused on our goal of changing the lives of 20 million patients by 2020, and we continue to lead the industry through an exciting pipeline of new products and connected care solutions."
ResMed’s quarterly operating expenses jumped to $US212.2 million, from $158.5 million, due to increased administrative expenses, greater research and development spending, and higher amortisation expenses associated with the acquisition of Brightree and oxygen therapy products developer Inova.
The company also incurred expenses related to the settlement of litigation, and restructuring, which it did not not face a year earlier.
