Sleep disorder equipment supplier ResMed's second-quarter net profit has fallen 20 per cent with strong revenue growth offset by increased operating expenses.
ResMed's net profit for the three months to December 31 fell to $US76.7 million, from $US95.6 million.
Net profit for the first half of the financial year fell to $US152.8 million, from $US178.5 million.
The company lifted second-quarter revenue by 17 per cent, or 18 per cent on a constant currency basis, to $US530.4 million, helped by income from the Brightree business it acquired in 2016.
Brightree supplies cloud-based business-management and clinical software to the post-acute care industry where there is a high prevalence of sleep-disordered breathing and chronic obstructive pulmonary disease.
Excluding Brightree, quarterly revenue was up nine per cent at $US496.6 million.
Second-quarter revenue in the Americas market was up 21 per cent to $US326.8 million, with Brightree contributing $US33.8 million.
ResMed also lifted its gross margins for the quarter thanks to more efficient manufacturing and procurement processes.
"We had a strong quarter, with 18 per cent constant currency revenue growth led by solid growth in our Brightree software offerings and global device sales," said ResMed chief executive Mick Farrell.
"We are focused on our goal of changing the lives of 20 million patients by 2020, and we continue to lead the industry through an exciting pipeline of new products and connected care solutions."
But, ResMed's quarterly operating expenses jumped to $US212.2 million, from $158.5 million, due to increased administrative expenses, greater research and development spending, and higher amortisation expenses associated with the acquisition of Brightree and oxygen therapy products developer Inova.
The company also incurred expenses related to the settlement of litigation, and restructuring, which it did not not face a year earlier.
ResMed shares were 52.5 cents, or 6.31 per cent higher, at $8.845 at 1204 AEDT.
RESMED QUARTERLY PROFIT DOWN, BUT REVENUE UP
* Second-quarter net income down 20pct to $US76.7m
* Revenue up 17pct to $US530.4m
* Quarterly dividend of 33 US cents per share, up from 30 US cents
