solid growth despite current market problems, page-4

resmed super confident on growth going forward, same growth if not more expected from somnomed considering its more user friendly product that gets more use than resmed's snorkel.



07/feb Article from the Australian

SHARES in Resmed, the world's second biggest manufacturer of machines for sleep disorders, soared to their highest level in two years after the company reported record second-quarter profit.

The share price shot up 4 per cent or 22c to $6.36 after the company delivered a 26 per cent rise in net profit to $US33.9 million ($51.9 million) for the second quarter ending December 31.

Chief financial officer Brett Sandercock said the US-based company did not suffer from the financial and economic downturn. "Resmed operates in an underpenetrated market. Many people who suffer from sleep apnea have not been diagnosed with the disorder and, as such, we operate in a growth industry.

"It's estimated 7 per cent to 10 per cent of the adult population suffer from sleep apnea and snoring is often a good indicator of the disorder. The US is our biggest market, contributing more than 50 per cent of our revenue. It's estimated up to 20 million Americans suffer from sleep apnea."

Europe is Resmed's second biggest market, contributing 40 per cent of revenue, while Asia-Pacific, including Australia, would be its third biggest at 10 per cent. He said the falling Australian dollar had benefited the company, as its sleep apnea mask and machines were made in Australia and exported overseas. However, this has been offset by the depreciating euro against the US dollar.

Chief executive Kieran Gallahue said: "In the second quarter of fiscal 2009, we continued to show strong growth year over year. Sales in the Americas totalled $US123.1 million, a 23 per cent increase over the prior year quarter while sales outside the Americas were $US99.9 million, a decrease of 3 per cent."