Developer and manufacturer of medical devices and cloud-based software applications that diagnose, treat and manage respiratory disorders, ResMed Inc. (RMD:NYSE; RMD:ASX), announced results for its first quarter 2020 ended September 30, 2019.
The company reported that revenue in Q1/20 increased 16% to $681.1 million compared to $588.3 million Q1/19, and that gross margin expanded 120 basis points to 59.5%, up from 58.3% in Q1/19. For Q1/20 the firm stated that net income increased 14% to $120.1 million, resulting in GAAP diluted earnings per share of $0.83. Q1/20 non-GAAP diluted earnings per share were listed as $0.93.
ResMed's CEO Mick Farrell commented, "Our global ResMed team delivered another quarter of strong performance in the first quarter of fiscal year 2020 with double-digit topline revenue growth, balanced growth across our businesses and regions, and further improvements in operating leverage resulting in double-digit growth at the bottom line...We were particularly pleased that strong customer demand for our new products drove high-teens growth in the mask category during the quarter. Through organic growth and targeted acquisitions, we're driving forward every facet of our business, leading the innovation of devices and software that improve health outcomes, create efficiencies, and reduce overall healthcare system costs. We're well on our way to improving 250 million lives in out-of-hospital healthcare in 2025."
The company highlighted in the report that revenue in the U.S., Canada, and Latin America, excluding Software as a Service, grew by 13% and combined Europe, Asia and other markets grew by 8%. ResMed noted that Software as a Service revenue increased by 83% in Q1/20 compared to Q1/19 due to continued growth in Brightree service offerings and incremental contribution from the acquisition of MatrixCare, which closed in Q2/19.
ResMed, which is headquartered in San Diego, Calif., develops, manufactures, distributes and markets medical devices and cloud-based software applications that diagnose, treat and manage respiratory disorders, including sleep disordered breathing (SDB), chronic obstructive pulmonary disease (COPD), neuromuscular disease and other diseases. The firm states that it "pioneers innovative solutions that treat and keep people out of the hospital, empowering them to live healthier, higher-quality lives... by enabling better care, we improve quality of life, reduce the impact of chronic disease, and lower costs for consumers and healthcare systems in more than 120 countries."
ResMed has a market cap of around $18.4 billion with approximately 143.8 million shares outstanding. RMD shares opened higher today at $145.00 (+$17.27, +13.52%) over yesterday's closing price of $127.73. The stock has traded between $141.29 -147.37 per share today and currently is trading at $144.71 (+$16.98, +13.29%).
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