ResMed posts record $65m profit as US market strengthens

In a sign that the US economy is rebounding and more is being spent on medical devices, respiratory device maker ResMed (ASX:RMD) has reported a record US$64.6 million net profit ($62.25 million) for the March quarter, on the back of strong sales growth in the Americas.

The Australia-founded company, now headquartered in California, revealed that its profit grew 21% year-on-year, from 11% higher revenue of $349.1 million.

Revenue from the Americas grew 18% to $188.9 million, dwarfing the 4% growth in revenue generated from outside of the region.

But R&D expenses grew 22% to $28.4 million, or 8.1% of revenue, partly as a result of the appreciation of the Australian dollar against the greenback.

Selling and general expenses also grew 9% to $101 million, but represented just 28.9% of the quarter's revenue, compared to 29.5% in the same period a year ago.

ResMed CEO Dr Peter Farrell said demand for mask-based airflow generators, such as the S9 Elite Continuous Positive Airway Pressure system, continues to be strong.

The company recently launched EasyCare Online, a new patient compliance management tool for sleep labs and health care providers. The cloud-based tool is designed to aggregate usage and efficacy data from sleep-disordered breathing patients on CPAP therapy.

ResMed (ASX:RMD) shares were trading 4.55% higher by 3pm on Friday, the day after the results were announced.

ResMed is also listed on the NYSE under the same ticker code.