Revenue during the quarter grew 13.07 percent to $465.45 million from $411.65 million in the previous year period. Gross margin for the quarter contracted 13 basis points over the previous year period to 57.83 percent. Total expenses were 79.77 percent of quarterly revenues, up from 76.19 percent for the same period last year. That has resulted in a contraction of 359 basis points in operating margin to 20.23 percent.

Operating income for the quarter was $94.15 million, compared with $98.02 million in the previous year period.

However, the adjusted operating income for the quarter stood at $110.96 million compared to $100.33 million in the prior year period. At the same time, adjusted operating margin contracted 53 basis points in the quarter to 23.84 percent from 24.37 percent in the last year period.

“We had a solid start to our fiscal year with 13 percent constant currency revenue growth led by our Brightree software offerings and global device sales,” said Mick Farrell, ResMed’s chief executive officer. “We continue to demonstrate the value of our solutions, and earlier today, announced the world’s largest study on patient adherence. During the quarter, we drove consumer sleep awareness through a new U.S. media partnership, and sponsored a positive clinical study showing that non-invasive ventilation significantly reduces the risk of re-hospitalization and death for COPD.”

The company has spent $13.17 million cash to meet investing activities during the quarter as against cash outgo of $62.75 million in the last year period.

The company has spent $40.05 million cash to carry out financing activities during the quarter as against cash inflow of $104.41 million in the last year period.

Cash and cash equivalents stood at $781.66 million as on Sep. 30, 2016, down 4.91 percent or $40.39 million from $822.05 million on Sep. 30, 2015.

Working capital drops significantly
ResMed Inc has witnessed a decline in the working capital over the last year. It stood at $854.30 million as at Sep. 30, 2016, down 33.02 percent or $421.20 million from $1,275.49 million on Sep. 30, 2015. Current ratio was at 2.38 as on Sep. 30, 2016, down from 5.96 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 92 days for the quarter from 169 days for the last year period. Days sales outstanding went down to 70 days for the quarter compared with 77 days for the same period last year.

Days inventory outstanding has decreased to 59 days for the quarter compared with 134 days for the previous year period. At the same time, days payable outstanding went down to 38 days for the quarter from 42 for the same period last year.