Market report: ResMed announces record quarterly results

ResMed (ASX:RMD), maker of sleep and respiratory medical devices, announced today record revenue and income for the last quarter of 2010, although investors in the ASX took 2.5% off the company's stock price in morning trading.

The company posted a revenue for the quarter ending December 31, 2010, of US$306 million, which is up 11% on the same quarter for 2009, largely on the back of sales of its S9 AutoSet sleep therapy system.

The lion's share of the growth occurred in the European and Asia-Pacific regions, which saw a 12% year-on-year growth, or 17% at a constant currency basis. Growth in the United States was lower, at 10%.

Expenses also increased over the quarter, primarily due to increased demand for sales support.

Research and development expenses were US$22 million, or 7% of revenue, an increase of 15% (or 10% at constant currency) year-on-year.

Even with the positive revenue news, investors on the ASX were drove down the price of ResMed shares by 2.5% in early trading, although they bounced back at midday to around $3.18, down 1.85% on Thursday's close.