ResMed Inc Announces Financial Results for the Quarter and Nine Months Ended March 31, 2008
SG&A costs were $70.1 million for the quarter, an increase of $8.8 millionor 14% over the same period in fiscal 2007. SG&A costs were 33% of revenue inthe March 2008 quarter, compared to 34% in the same period in fiscal 2007.The increase in SG&A was primarily due to the addition of selling andadministration personnel and related expenses necessary to support our salesgrowth. The increase in SG&A was also due to the net appreciation ofinternational currencies against the U.S. dollar.
R&D expenses during the quarter were $15.0 million, or approximately 7% ofrevenue. R&D expenses increased 15% year over year and are expected to remainat approximately 7% of net revenue for the last quarter of 2008. The increasein research and development outlays reflects ResMed's continuing commitment toinnovation within its product portfolio, as well as an ongoing commitment toclinical research and product development. The increase in R&D was also dueto the net appreciation of international currencies against the U.S. dollar.
Amortization of acquired intangibles of $2.0 million ($1.3 million net oftax) incurred during the quarter ended March 31, 2008, consisted ofamortization of assets associated with our acquisitions of Resprecare,Hoefner, Saime, PolarMed and Pulmomed. Stock-based compensation costsincurred during the quarter ended March 31, 2008 of $5.6 million ($4.3 millionnet of tax) consisted of expenses associated with stock options granted toemployees and with our employee stock purchase plan.
The company also announced several non-routine events that occurred duringthe quarter. The company donated $2.0 million ($1.3 million net of tax) to theResMed Foundation. The Foundation was established to promote research into thedeleterious medical consequences of untreated sleep-disordered breathing. Aspreviously announced, the company also completed the sale and leaseback of ourcorporate headquarters in San Diego, and as a result, we recognized a gain onthe sale of $5.9 million ($3.7 million net of tax) in the March 2008 quarter.Additionally, the company made the decision to write-down certain at-costinvestments by $3.2 million ($2.6 million net of tax) due to a decline intheir value and the determination that the impairment was other thantemporary. The net after-tax impact of these non-routine transactions was a$0.2 million decrease in net income for the quarter ended March 2008.
For the nine months ended March 31, 2008 revenues were $600.2 million, anincrease of 14% over the nine months ended March 31, 2007. For the ninemonths ended March 31, 2008, income from operations and net income were$106.0 million and $80.7 million, respectively. GAAP diluted earnings pershare for the nine months ended March 31, 2008 was $1.02 per diluted share.
Inventory, at $169.5 million, increased by $3.1 million compared to thequarter ended December 2007. Accounts receivable days sales outstanding, at73 days, decreased by 2 days compared to the quarter ended December 2007.
Kieran T. Gallahue, President and Chief Executive Officer, commented, "Inthe third quarter of fiscal 2008, overall sales outside of the Americastotaled $112.2 million, a 27% increase over the prior year quarter. Americassales were $
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