RMD - ResMed Inc.

[adobee]

Re: RMD - Resmed

I should have entered this at 4.60 I have been watching for so long. However I am in today. Results come out tomorrow and should hopefully clear all previous problems created by the recall they had. Profit forecast is $131million
Resmed is $45.15 on the NYSE

 

[adobee]

Re: RMD - Resmed

RESMED INC. ANNOUNCES FINANCIAL RESULTS
FOR QUARTER AND YEAR ENDED JUNE 30, 2007
SYDNEY, Australia, August 8, 2007 - ResMed Inc. (ASX: RMD) today announced revenue and pro forma
income results for the quarter ended June 30, 2007. Revenue for the quarter was US$191.3 million, a 12%
increase over the quarter ended June 30, 2006. For the current quarter, pro forma income from operations
and pro forma net income were US$42.4 million and US$32.2 million (pro forma measures exclude the
impact of stock-based compensation costs, restructuring expenses, amortization of acquired intangible
assets and voluntary product recall expenses, as described below). Pro forma diluted earnings per share for
the quarter ended June 30, 2007 was US$0.41, compared to US$0.40 for the quarter ended June 2006.
GAAP operating income was US$36.0 million for the current quarter, while GAAP net income was US$27.7
million or US$0.35 per diluted share, compared with US$0.30 in the year ago quarter, an increase of 17%.
Gross margin was 61.3% for the quarter ended June 30, 2007.
Pro forma selling, general and administration (SG&A) costs for the quarter were US$61.3 million, an
increase of US$10.7 million, or 21%, over the same period in fiscal 2006. Pro forma SG&A costs were 32%
of revenue in the June quarter, compared to 30% in the same period in fiscal 2006. GAAP SG&A costs were
US$65.2 million for the quarter, an increase of US$11.5 million or 21% over the quarter ended June 30,
2006. The increase in SG&A was primarily due to the addition of selling and administration personnel and
related expenses to support sales growth.
Pro forma research & development expenditure during the June quarter was US$13.7 million. GAAP R&D
expense during the quarter was US$14.2 million or approximately 7% of revenue. GAAP R&D expenses
increased 28% year over year and are expected to remain between 6% and 7% of net revenue through fiscal
year 2008.
For the year ended June 30, 2007, revenue was US$716.3 million, an increase of 18% over the US$607.0
million for the year ended June 30, 2006. Pro forma income from operations and pro forma net income were
US$174.3 million and US$125.8 million, or US$1.59 per diluted share, an increase of 13% and 16%,
respectively. On a GAAP basis, income from operations was US$90.2 million, while net income for the year
ended June 30, 2007 was US$66.3 million or US$0.85 per diluted share.
Amortization of acquired intangibles of US$1.8 million (US$1.2 million net of tax), incurred during the quarter
ended June 30, 2007 consisted of amortization of acquired intangible assets associated with our acquisitions
of Resprecare, Hoefner, Saime, Pulmomed and PolarMed. Stock-based compensation costs incurred during
the quarter ended June 30, 2007 of US$4.5 million (US$3.3 million net of tax), consisted of expenses
associated with stock options granted to employees and the employee stock purchase plan.
The Company has provided tabular reconciliation of GAAP operating income and GAAP net income with pro
forma operating income and pro forma net income (excluding the impact of stock-based compensation costs,
restructuring expenses, amortization of acquired intangible assets, American Jobs Creation Act of 2004
(‘AJCA’) and voluntary product recall expenses) for the quarters and years ended June 30, 2007 and 2006.
Inventory at US$157.2 million as of June 30, 2007, was comparable to March 31, 2007 level of US$156.9
million. Accounts receivable days sales outstanding, at 77 days, increased from the March 31, 2007 quarter
of 73 days.
Peter C. Farrell Ph.D., Chairman and Chief Executive Officer, commented, "In the fourth quarter of fiscal
2007, overall Americas sales increased by 10%; excluding sales from our motor division, Americas sales
increased by 13% over the year ago quarter. Sales growth for the Americas were impacted by challenging
year ago comparables when we grew by 44% and a product recall initiated during the current year’s quarter.
Rest of world sales totaled US$92.8 million, a 14% increase over last year. Operating cash flow for the June
quarter was an encouraging US$27.1 million. While we are not satisfied with our Q407 results, we had a
robust fiscal year 2007, and we remain optimistic about our growth moving forward.

 

[Gundini]

Re: RMD - Resmed

I notice a couple of Robots buying up this one after a 7% dump.

317 and 574 parcels.

Stopped on a solid support this morning and looks to be recovering.

 

[vishalt]

Re: RMD - Resmed

Yeah same, i'm gonna enter a small position into it - $4.50-$5.00 really seems to be a rock bottom zone for Resmed.

Will enter with 300 or so shares tomorrow with support down @ $4.50 and keep adding if/when it breaks past resistances.

ps - damn interest rates, now margin borrowing is more pricey sigh :/

 

[adobee]

Re: RMD - Resmed

Really low prices at the moment I guess due to $aus and the majority of their income being from the USA .. Dependent on your view of the $ may be a good time to take a position as they have cleaned up all the recall business and appear to be back on track..

 

[adobee]

Re: RMD - Resmed

Resmed starting to make a good recovery and has had reasonable volume over the past weeks .. The market seems to be interested in this again. Resmed seems to have alot of potential and upside when everything else goes down ..

 

[vishalt]

Re: RMD - Resmed

Resmed starting to make a good recovery and has had reasonable volume over the past weeks .. The market seems to be interested in this again. Resmed seems to have alot of potential and upside when everything else goes down ..

Yeah I reckon hehe.

It's a pretty weird stock, on a deep red day Resmed is one of the green patches, its absolutely solid at that $4.30 level - good medium term play.

 

[adobee]

Re: RMD - Resmed

Yeah I reckon hehe.

It's a pretty weird stock, on a deep red day Resmed is one of the green patches, its absolutely solid at that $4.30 level - good medium term play.

I guess they factor that if the market stays red and plummets alot more people will need breathing masks to sleep well!

 

[vishalt]

Re: RMD - Resmed

I guess they factor that if the market stays red and plummets alot more people will need breathing masks to sleep well!

Rofl yeah, they must have a surge of customers in big falls or bear markets as they can't sleep well

 

[buffettesque]

Re: RMD - Resmed

The company's recent upsurge has been due partly to the fact that their major compeditor is being bought out by a much larger company. The market seemed to have liked this, perhaps it shows confidence in the sleeping aid products, or perhaps it indicates that RMD might now become a target.

 

[adobee]

Re: RMD - Resmed

The company's recent upsurge has been due partly to the fact that their major compeditor is being bought out by a much larger company. The market seemed to have liked this, perhaps it shows confidence in the sleeping aid products, or perhaps it indicates that RMD might now become a target.

I think the lower $ is also helping this along ... RMD is in my super I am thinking aging population in Oz and US equals strong growth..

 

[tulasi74]

Re: RMD - Resmed

Are any of you guys who have posted before still following this stock? It has fallen sharply recently here mostly due to AUD movements I think.

Apparently stock was downgraded by two analysts following their last report.

If anyone has any thoughts on this stock, I would really appreciate it.

Tulasi

 

[ColB]

Re: RMD - Resmed

Looks like a good down trend on its chart T74. Good chance you may pick it up for around very low 2's early next week. Commsec has its 3QFY2008 Results posted on 2/5/08. They're upbeat about product releases to the market but its certainly not reflected in the SP. Have a look at its chart over 3 years, its all over the shop. Reminds me of SHL which I recently sold at a small loss. Anyway, you'd do better to hear from one of the more experienced gurus' on this forum. Personally, I like the resource stocks at the moment. Look at GCR, LNC, STB, BRM. I think based on reading the ASF threads these seem to still have plenty more upside. Good Luck!

 

[tulasi74]

Re: RMD - Resmed

Looks like a good down trend on its chart T74. Good chance you may pick it up for around very low 2's early next week. Commsec has its 3QFY2008 Results posted on 2/5/08. They're upbeat about product releases to the market but its certainly not reflected in the SP. Have a look at its chart over 3 years, its all over the shop. Reminds me of SHL which I recently sold at a small loss. Anyway, you'd do better to hear from one of the more experienced gurus' on this forum. Personally, I like the resource stocks at the moment. Look at GCR, LNC, STB, BRM. I think based on reading the ASF threads these seem to still have plenty more upside. Good Luck!

Hi Colb - thank you for your response. I quite don't understand the `very low 2's - do you mean a price in the low 4.20s? I am new to the forum and may not fully understand how references to price are made. I too can see a downtrend going down to the 3.80s - 3.90s but RMD has traditionally traded on future earnings and recent decision in US to allow home diagnosis is expected to increase sales revenue in future. Even without the extra revenues from this decision or new products, if they continue to maintain earnings growth of 20%, the stock will head back close to $7.00 in 12 - 24months based on fundamentals. The charts are telling me that a break above $4.85 would see the stock breakout and head back quickly to $6.00 - $7.00 mark. There was also talk that up to 4 companies were interested in Respironics when they got a takeover offer.

I had a quick look at the charts for the 4 you mentioned. WOW!!!

I do margin lending so generally tend to stick to the blue chips.

I was mainly looking for opinions from those on the forum who follow charts to see if they also saw a fall to 3.80s - 3.90s for RMD in the near term.

Tulasi

 

[questionall_42]

Re: RMD - Resmed

Michael West in The Age this morning - could it be that battered Resmed is ripe for the taking? No announcements from RMD this morning.

Linde awake to ResMed's value
Michael West
July 1, 2008

COULD it be that another great Australian technology company is about to vanish overseas? Sleep disorder company ResMed is being stalked by German industrial and medical gases giant the Linde Group.

While Linde, which boasts an enterprise value of €21 billion ($A34.4 billion), is close to its trading highs, ResMed is trading not too shy of its lows for the year. Even at a 50% premium to its prevailing stock price, a takeover bid for ResMed would likely be viewed as opportunistic.

This is a stock with minimal debt, which dominates a global niche market growing at 20% a year.

Along with Cochlear and CSL, ResMed rounds off the troika of Australian biotechnology stocks that have made it big on the world stage. But its shares have been wallowing in the wake of a weak $US and discounting by arch-rival Respironics.

 

[tulasi74]

Re: RMD - Resmed

Looks like a good down trend on its chart T74. Good chance you may pick it up for around very low 2's early next week. Commsec has its 3QFY2008 Results posted on 2/5/08. They're upbeat about product releases to the market but its certainly not reflected in the SP. Have a look at its chart over 3 years, its all over the shop. Reminds me of SHL which I recently sold at a small loss. Anyway, you'd do better to hear from one of the more experienced gurus' on this forum. Personally, I like the resource stocks at the moment. Look at GCR, LNC, STB, BRM. I think based on reading the ASF threads these seem to still have plenty more upside. Good Luck!

Hey Colb

This stock appears to have had a break above the downtrend line at 3.85. Would you agree?

 

[big sal]

Re: RMD - Resmed

Great results out this morning (excerpt below), share price up around 10% in morning trading

SYDNEY, Australia, August 6, 2008 - ResMed Inc. (ASX: RMD) today announced revenue and income results for the quarter ended June 30, 2008. Revenue for the quarter was a record US$235.2 million, a 23% increase over the quarter ended June 30, 2007.

 

[tulasi74]

Re: RMD - Resmed

Great result. Glad I bought back in when I saw the break above the downtrend line. Riding this baby all the way to $5.85 now.

 

[questionall_42]

Re: RMD - Resmed

Great result. Glad I bought back in when I saw the break above the downtrend line. Riding this baby all the way to $5.85 now.

Gap up and hovering around 5.95 now. A beacon of long light, an annomaly in otherwise short world. Anyone still riding this journey?

 

[The_Bman]

Re: RMD - Resmed

Not much commentary on this one - Anyone adding this to the watchlist since the gap down from $5?

(Watching)