ResMed profits dented by high Australian dollar

The high Australian dollar continues to take its toll on profits of Australian biotechs and medical device companies, but it’s not enough to dampen their earning capabilities.

Sleep pespiration specialists ResMed (ASX:RMD, NYSE: RMD) announced today a record quarterly revenue for the quarter ending September 30 of US$314.8 million ($300m), a 12% increase over the same quarter in 2010.

However, net income was US$50.5 million ($48.15m) for the period, down 11%, largely due to the high Australian dollar.

The company continues to spend on research and development, contributing US$26.2 million ($25m), up 33% compared to the same quarter in 2010.

“Revenue in Americas increased by 9% to US$169.3 million over the prior year’s quarter,” said Chairman and CEO, Dr Peter Farrell, in a statement.

“Revenue outside Americas increased by 15% to US$145.5 million over the prior year's quarter, or a 7% increase on a constant currency basis. Worldwide, our growth in flow generators was mainly driven by sales of the S9 AutoSet and VPAP Adapt SV.

“Patient interface sales continue to perform strongly in all regions. Operating profit for the September quarter was $60.9 million and cash flow from operations was a record $89.5 million, demonstrating excellent operating performance.

“During the quarter, we also repurchased 4.4 million shares, at a cost of $124.7 million, as part of our ongoing capital management program.

“Awareness of sleep-disordered breathing and its impact on other disease states continues to grow. Just last week, at the Congress of the World Sleep Federation, in Kyoto, Japan, the connection between sleep-disordered breathing and both heart failure and type 2 diabetes mellitus was highlighted, with particular emphasis on the need to address sleep-disordered breathing diagnosis and treatment for patients with type 2 diabetes.

“In fact, both Japanese cardiologists and endocrinologists are initiating their own sleep studies to simplify the diagnostic procedures for sleep-disordered breathing.”

ResMed (ASX:RMD) shares dropped 31c to $2.69 in morning trading, a drop of over 10%.