Earnings: Invacare reports losses, ResMed reports growth
ELYRIA, Ohio – Invacare posted second quarter losses today, but remains excited as it continues to shift from a general DME company to one more focused on clinically complex care, says Matthew Monaghan.
Invacare reported a net loss of $11.5 million for the second quarter of 2016, compared to a net loss of $8.2 million for the same quarter a year ago. For the sixth months ended June 30, it reported net losses $20.1 million.
Net sales for the quarter were $275 million for the quarter compared to $286 million for the same quarter a year ago.
For the North America/HME segment, which has been restrained by a consent decree with the U.S. Food and Drug Administration,net sales were $109.6 million, compared to $119 million for the same quarter a year ago. The company attributed the decrease to a decline in lifestyle and respiratory products partially offset by increases in mobility and seating products.
“While we are executing this transformation, we will be managing through external uncertainty, including foreign currency fluctuations driven by the recent Brexit vote, as well as continued reimbursement pressures, particularly the ongoing roll-out of national competitive bidding,” said Monaghan, president and CEO. “We remain excited about the opportunities ahead of us, and our mission to provide clinical solutions to the growing demographic in need of our products.''
Invacare leadership steps down
ELYRIA, Ohio – Invacare Board of Directors members General James Jones, Michael Delaney will be leaving the board. “Jim, with his insights into government and international affairs, as well as his guidance on culture based on his years of leadership with the United States government, has been a great resource to our board,” said Matthew Monaghan, chairman, president and CEO, in a release. “Over the past 30 years, Mike has given the company invaluable insight into the consumers of our products from his personal experiences, as well as those from his career with the Paralyzed Veterans of America.” Gordon Sutherland, senior vice president and general manager, Europe, Middle East & Africa, announced his resignation from the company in order to pursue other opportunities. The board has retained an executive recruiting firm to assist in the search for new director candidates.
ResMed on growth ‘trajectory’
SAN DIEGO – ResMed ended its fiscal year 2016 with double-digit growth and is on a “trajectory to be the world’s leading tech-driven medical device company,” say company execs.
ResMed reported revenue of $518.6 million for the fourth quarter compared to $453 million for the same period in 2015, a 14% increase. Revenue for the year was $1.8 billion.
Revenue in the Americas was $324.5 million for the quarter, including Brightree revenue of $28.9 million. ResMed closed on its $800 million acquisition of Brightree in April. Net income for the quarter was $83.1 million, a 5% decrease.
"We finished the year with double-digit constant currency revenue growth, fueled by solid performance in masks, devices, and our first quarter of software-as-a-service revenue from Brightree,” said Mick Farrell, ResMed's CEO. “Our board of directors has declared a 10 % increase in our dividend this quarter, reflecting confidence in our long-term strategy and outlook."
The company currently has more than 2 million patients using its cloud-connected devices, and is looking to have 20 million by 2020, he said.