Americas dark spot in ResMed earnings
SAN DIEGO –ResMed has reported revenues of $384.3 million for the quarter ended Dec. 31, 2013, a 2% increase compared to the same quarter in 2012.
The company’s net income for the quarter, $86.6 million, is an 11% increase.
While quarterly revenues outside the Americas grew 8% to $177.7 million, revenues in the Americas fell 2% to $206.6 million. The company blames, in part, the competitive bidding program.
“While we are disappointed with the U.S. numbers, the two key issues, as we have previously noted, are market restructuring due to competitive bidding and increased competitor activity,” stated CEO Mick Farrell in a release. “Having said that, competitive bidding’s impact on volume in the U.S. market is beginning to moderate, and we are partnering with our U.S. customers to position for the growth that we see ahead.”
For the six months ended Dec. 31, 2013, ResMed saw revenue of $742 million, a 4% increase over the same period in 2012. Net income was $167.6 million, a 12% increase.
For the quarter, ResMed also reported $105 million in operating profit, cash flow from operations of $84.2 million and a gross margin that increased to 64.7%.
On Jan. 23, ResMed’s board of directors declared a quarterly dividend of $0.25 per share, with a record date of Feb. 19. The divided will be payable March 19.