After posting record quarterly revenue, the founder of sleep disorder equipment supplier ResMed says the business has the capacity to grow even further as it provides the holy grail of healthcare.
The company says it believes its breathing masks for people with sleep disordered breathing have so far only penetrated five to 15 percent of the market and therefore has a huge capacity for growth.
ResMed chairman and founder Peter Farrell says the company’s breathing masks offer relief for patients and healthcare providers.
“Given that sleep disordered breathing effects approximately 25 percent of the adult population at some level and the diagnosis and treatment firstly personally improves quality of life, secondly slows co-morbid disease progression and finally reduces healthcare costs – it is the holy grail of healthcare delivery,” Mr. Farrell said.
ResMed’s revenue for the three months to March 31 was $383.6 million, a 10 percent increase over the corresponding quarter last year.
Mr. Farrell said the company was working on new products to grow market share.
“We, as always, intend to stay above the game by constantly innovating,” he said.
During the fourth quarter, the company will produce two improved mask products and is working on others that will be released by the end of fiscal 2014.
“We are going to produce in the very near future mask products that are smaller, quieter and more comfortable,” he said.
Research and development expenses for the quarter were up 10 per cent to $2.8 million.
Net income for the quarter was up 31 per cent, to $84.9 million, and diluted earnings per share were 58 cents, up 32 percent.
ResMed said it had notched up strong year-on-year growth for the third quarter, with revenue in the Americas increasing by 13 percent to $215.2 million.
Outside of the Americas, revenue was $168.4 million, an increase of six percent.
April 26th, 2013