SAN DIEGO, Aug. 5 /PRNewswire-FirstCall/ -- ResMed Inc. (NYSE: RMD) today announced record revenue and income for the quarter ended June 30, 2010, and a two-for-one stock split.

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Financial Results

Revenue for the quarter ended June 30, 2010 was $291.6 million, a 16% increase (an 18% increase on a constant currency basis) over the quarter ended June 30, 2009. For the quarter ended June 30, 2010, income from operations was $68.6 million and net income was $53.2 million, an increase of 19% and 17%, respectively, compared to the quarter ended June 30, 2009. Diluted earnings per share for the quarter ended June 30, 2010 were $0.68, an increase of 15% compared to the quarter ended June 30, 2009.

SG&A expenses were $83.9 million for the quarter ended June 30, 2010, an increase of $6.3 million, or 8% (a 9% increase on a constant currency basis) over the quarter ended June 30, 2009. The increase in SG&A was primarily due to expenses necessary to support sales growth. SG&A costs were 29% of revenue in the quarter ended June 30, 2010, compared to 31% in the quarter ended June 30, 2009.

R&D expenses were $20.0 million for the quarter ended June 30, 2010, or 7% of revenue. R&D expenses increased by 18% (a 9% increase on a constant currency basis) compared to the quarter ended June 30, 2009. R&D expenses were negatively impacted by the depreciation of the U.S. dollar against the Australian dollar.

The company amortized acquired intangibles of $2.1 million ($1.4 million, net of tax) during the quarter ended June 30, 2010. Stock-based compensation costs incurred during the quarter ended June 30, 2010 of $7.9 million ($5.3 million, net of tax) consisted of expenses associated with stock options, restricted stock units, and our employee stock purchase plan.

For the year ended June 30, 2010, revenue was $1.1 billion, a 19% increase (a 17% increase on a constant currency basis) over the year ended June 30, 2009. For the year ended June 30, 2010, income from operations was $240.4 million and net income was $190.1 million, an increase of 26% and 30%, respectively, compared to the year ended June 30, 2009. Diluted earnings per share for the year ended June 30, 2010 were $2.45, an increase of 29% compared to the year ended June 30, 2009.

Inventory, at $185.6 million, increased by $28.2 million compared to June 30, 2009. Accounts receivable days sales outstanding, at 71 days, decreased by 3 days compared to June 30, 2009.

Kieran T. Gallahue, President and Chief Executive Officer, commented, "In the fourth quarter of fiscal 2010, we continued to show strong growth year-over-year in the Americas, as well as in international markets. Our favorable mix of product sales and market share gains led to a 20% revenue increase in the Americas over the prior year's quarter, resulting in $160.9 million in sales. Revenue outside the Americas increased by 11% to $130.7 million over the prior year's quarter, or a 16% increase on a constant currency basis. Globally, our growth in flow generators was mainly driven by strong sales of the new S9(TM) AutoSet and Elite products. Mask sales were particularly robust this quarter across all categories and across all geographies. Operating profit for the June quarter was $68.6 million and cash flow from operations was $59.0 million, demonstrating excellent operating performance.

"Surpassing the billion dollar mark in annual sales is a result of our ability to continue to innovate and launch new products to treat sleep-disordered breathing. We believe continued growth will also come from the increasing confirmation of the strong impact of the relationship between sleep-disordered breathing, obstructive sleep apnea and co-morbidities such as cardiac disease, diabetes, hypertension and obesity. In a recently released study in Circulation, it was shown that obstructive sleep apnea is associated with an increased risk of incident heart failure in a general community of middle-aged and older men. Specifically, men ages 40-70 with AHI > 30 were 68% more likely to develop coronary heart disease than those with AHI < 5. This adds to a multitude of studies being conducted that provide abundant new evidence that treating sleep-disordered breathing and obstructive sleep apnea can improve health, quality of life and also mitigate the dangers of sleep apnea in occupational health and safety, especially in the transport industry."

Stock Split

ResMed Inc. also announced today that its board of directors approved a two-for-one stock split of the company's outstanding shares of common stock, payable in the form of a 100% stock dividend.

Stockholders of record on the New York Stock Exchange at the close of trading on August 17, 2010 will receive one additional share of common stock for each share held on that date. The common stock will be distributed to shareholders on or about August 30, 2010, by ResMed's NYSE transfer agent, American Stock Transfer and Trust Company, LLC. The common stock is expected to begin trading on a post-split basis on the NYSE beginning on August 31, 2010 or one day following the distribution date.

Holders of CHESS Depositary Interests (CDIs) on the Australian Stock Exchange (ASX) will also receive a bonus issue of one additional CDI for every CDI held on the ASX record date of August 18, 2010. Unlike the shares on the NYSE, the existing CDIs are expected to be quoted on an "ex-bonus" basis on August 12, 2010 on the ASX (ASX Code: RMD), and bonus CDI's will be quoted on a deferred settlement basis (ASX Code: RMDBN). ResMed is seeking a waiver from the ASX that would, if granted, suspend the conversion of shares between the NYSE common stock and ASX CDIs during the time period between August 12th and August 31st. The bonus CDIs will be distributed by ResMed's ASX share registry, Computershare Limited, on or about August 31, 2010, and normal trading will begin on the following day.

"Our strong financial performance can be attributed to the growth and strength of our business and consistent execution and as a result, we felt it was in the best interest of our shareholders to declare a stock split," commented Mr. Gallahue. "ResMed has delivered an outstanding return for our shareholders and the split is designed to improve liquidity and broaden ownership in our company."

As of July 30, 2010, ResMed had common stock outstanding of approximately 76 million shares. Following the stock distribution, the number of outstanding shares will increase to approximately 152 million shares.

About ResMed

ResMed is a leading developer, manufacturer and distributor of medical equipment for treating, diagnosing, and managing sleep-disordered breathing and other respiratory disorders. The company is dedicated to developing innovative products to improve the lives of those who suffer from these conditions and to increasing awareness among patients and healthcare professionals of the potentially serious health consequences of untreated sleep-disordered breathing. For more information on ResMed, visit www.resmed.com.

ResMed will host a conference call at 1:30 p.m. US Pacific Time today to discuss these quarterly results. Individuals wishing to access the conference call may do so via ResMed's Website at www.resmed.com or by dialing (800) 299-8538 (domestic) or +1 (617) 786-2902 (international) and entering conference I.D. No. 86087175. Please allow extra time prior to the call to visit the Web site and download the streaming media player (Windows Media Player) required to listen to the Internet broadcast. The online archive of the broadcast will be available approximately 90 minutes after the live call and will be available for two weeks. A telephone replay of the conference call is available by dialing (888) 286-8010 (domestic) and +1 (617) 801-6888 (international) and entering conference I.D. No. 89978676.

Further information can be obtained by contacting Constance Bienfait at ResMed Inc., San Diego, at (858) 836-5971; Brett Sandercock at ResMed Limited, Sydney, on (+612) 8884-2090; or by visiting the Company's multilingual Web site at www.resmed.com.

Statements contained in this release that are not historical facts are "forward-looking" statements as contemplated by the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including statements regarding the Company's future revenue, earnings or expenses, new product development and new markets for the Company's products, are subject to risks and uncertainties, which could cause actual results to materially differ from those projected or implied in the forward-looking statements. Those risks and uncertainties are discussed in the Company's Annual Report on Form 10-K for its most recent fiscal year and in other reports the Company files with the U.S. Securities & Exchange Commission. Those reports are available on the Company's Web site.

                              RESMED INC AND SUBSIDIARIES
                     Consolidated Statements of Income (Unaudited)
                       (In US$ thousands, except per share data)

                                  Three Months Ended         Year Ended
                                       June 30,               June 30,
                                      2010         2009       2010     2009
                                      ----         ----       ----     ----

    Net revenue                   $291,572     $251,959 $1,092,357 $920,735
    Cost of sales                  117,055       95,251    436,874  366,933
    Gross profit                   174,517      156,708    655,483  553,802
    ------------                   -------      -------    -------  -------

    Operating expenses:
    Selling, general and
     administrative                 83,874       77,580    328,858  289,875
    Research and development        19,950       16,973     75,202   63,056
    Amortization of acquired
     intangible assets               2,074        1,756      8,041    7,060
    Donation to Foundation               -        2,500      3,000    3,500
    ----------------------             ---        -----      -----    -----
    Total operating expenses       105,898       98,809    415,101  363,491
    ------------------------       -------       ------    -------  -------
    Income from operations          68,619       57,899    240,382  190,311
    ----------------------          ------       ------    -------  -------

    Other income (expenses), net:
    Interest income, net             4,646        2,089     14,029   10,205
    Other income, net               (1,337)       2,393      6,178    1,168
    Total other income, net          3,309        4,482     20,207   11,373
    -----------------------          -----        -----     ------   ------

    Income before income taxes      71,928       62,381    260,589  201,684
    Income taxes                    18,762       17,011     70,504   55,236
    Net income                     $53,166      $45,370   $190,085 $146,448
    ----------                     -------      -------   -------- --------

    Basic earnings per share         $0.70        $0.60      $2.52    $1.94
    Diluted earnings per share       $0.68        $0.59      $2.45    $1.90

    Basic shares outstanding        75,875       75,341     75,454   75,629
    Diluted shares outstanding      78,568       76,662     77,549   77,113
    --------------------------      ------       ------     ------   ------

                       RESMED INC AND SUBSIDIARIES
                 Consolidated Balance Sheets (Unaudited)
           (In US$ thousands except share and per share data)

                                              June 30,      June 30,
                                                    2010          2009
                                                    ----          ----
    ASSETS
    Current assets:
    Cash and cash equivalents                   $488,776      $415,650
    Accounts receivable, net                     226,911       212,096
    Inventories                                  185,642       157,431
    Deferred income taxes                         40,227        44,368
    Income taxes receivable                        5,317         2,067
    Prepaid expenses and other current
     assets                                       38,468        21,672
    Total current assets                         985,341       853,284
    --------------------                         -------       -------
    Property, plant and equipment, net           387,148       377,613
    Goodwill                                     198,625       213,169
    Other intangibles                             30,925        35,023
    Deferred income taxes                         19,042        19,364
    Other assets                                   5,316         9,515
    Total non-current assets                     641,056       654,684
    ------------------------                     -------       -------
    Total assets                              $1,626,397    $1,507,968
    ------------                              ----------    ----------
    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
    Accounts payable                              57,535       $48,293
    Accrued expenses                              80,883        67,018
    Deferred revenue                              29,507        28,881
    Income taxes payable                          22,656        56,972
    Deferred income taxes                            402           391
    Current portion of long-term debt             94,161        67,545
    ---------------------------------             ------        ------
    Total current liabilities                    285,144       269,100
    -------------------------                    -------       -------
    Non-current liabilities:
    Deferred income taxes                         10,793        11,137
    Deferred revenue                              12,755        15,238
    Income taxes payable                           2,641         3,110
    Long-term debt                                27,528        94,191
    Total non-current liabilities                 53,717       123,676
    -----------------------------                 ------       -------
    Total liabilities                            338,861       392,776
    -----------------                            -------       -------
    Stockholders' Equity:
    Common stock                                     303           303
    Additional paid-in capital                   660,487       522,980
    Retained earnings                            884,876       694,791
    Treasury stock                              (344,505)     (208,659)
    Accumulated other comprehensive income        86,375       105,777
    --------------------------------------        ------       -------
    Total stockholders' equity                 1,287,536     1,115,192
    --------------------------                 ---------     ---------

    Total liabilities and stockholders'
     equity                                   $1,626,397    $1,507,968

SOURCE ResMed Inc.