ResMed, Inc. (ResMed) has reported net revenue of $223 million for the second quarter of fiscal 2009, up 10%, compared with the net revenue of $203 million in the year-ago quarter. It reported net income of $33.8 million, or $0.44 per diluted share, for the second quarter of fiscal 2009, compared with net income of $26.8 million, or $0.34 per diluted share, in the year-ago quarter.

For the second quarter ended December 31, 2008, income from operations was $43.3 million and net income was $33.9 million, up 18% and 26%, respectively, against the quarter ended December 31, 2007. Diluted earnings per share for the quarter ended December 31, 2008 were $0.44, up 29% against the quarter ended December 31, 2007.

SG&A expenses were $70.1 million for the December 2008 quarter, up $2.4 million, or 4% (a 14% increase on a constant currency basis) over the same period in fiscal 2007. SG&A expenses were favorably impacted by the appreciation of the U.S. dollar against international currencies. This increase in SG&A was primarily due to expenses necessary to support sales growth. SG&A costs were 31% of revenue in the December 2008 quarter, against 33% in the same period in fiscal 2007.

R&D expenses were $14.9 million for the December 2008 quarter, or approximately 7% of revenue. R&D expenses were flat (a 27% increase on a constant currency basis) against the prior year quarter. R&D was also positively impacted by the appreciation of the U.S. dollar against international currencies, particularly the Australian dollar. R&D outlays reflect ResMed’s continuing commitment to innovation within its product portfolio, as well as an ongoing commitment to clinical research and product development.

Amortization of acquired intangibles of $1.7 million ($1.1 million net of tax) incurred during the quarter ended December 31, 2008, consisted of amortization of assets associated with our acquisitions of Resprecare, Hoefner, Saime and PolarMed. Stock-based compensation costs incurred during the quarter ended December 31, 2008 of $6.8 million ($4.9 million net of tax) consisted of expenses associated with stock options granted to employees and our employee stock purchase plan.

During the December 2008 quarter, we donated $1.0 million ($0.6 million, net of tax) to the ResMed Foundation. The Foundation was established primarily to promote research into the deleterious medical consequences of untreated sleep-disordered breathing.

For the six months ended December 31, 2008, revenue was $440.9 million, up 14% over the six months ended December 31, 2007. For the six months ended December 31, 2008, income from operations and net income were $79.9 million and $61.9 million, up 16% and 21%, respectively, against the six months ended December 31, 2007. Diluted earnings per share for the six months ended December 31, 2008 were $0.80 per diluted share, up 23% against the six months ended December 31, 2007.

Inventory, at $143.1 million, decreased by $15.2 million against June 30, 2008. Accounts receivable days sales outstanding, at 76 days, up by 4 days against June 30, 2008.

Kieran T. Gallahue, president and chief executive officer, commented, “In the second quarter of fiscal 2009, we continued to show strong growth year over year. Sales in the Americas totaled $123.1 million, a 23% increase over the prior year quarter, while sales outside the Americas were $99.9 million, a decrease of 3% over the prior year quarter. As expected, sales outside of the Americas were impacted by currency movements, in particular the depreciation of the Euro against the U.S. dollar. In constant currency terms, sales outside of the Americas increased by 8% over the prior year quarter. Cash flow from operations for the December 2008 quarter was a very strong $56.5 million.

“Our new product cycle remains in full swing as we launched a number of new products during the second quarter. In the mask category, we launched the Activa(TM) LT, which offers patients superior performance, yet is quieter and less obtrusive. We also launched the Swift(TM) LT for Her, our first gender-specific product, targeted at the rapidly growing female segment of the therapy market. Our VPAP(TM) product line continues to gain momentum with the release of the complete family of bilevel devices in the smaller S8(TM) platform. Looking forward, our pipeline of products scheduled for release over the next 18 months remains full and demonstrates our ongoing commitment to bringing innovative technologies to market across both the mask and flow generator product lines.

“We were also very encouraged to see gross margin expand in Q2. We expect continued improvement over the course of fiscal 2009 as we benefit from accelerating sales of our high margin masks and VPAP products, continuing efforts to leverage cost efficiencies across our global organization and the depreciation of the Australian dollar. We remain well-positioned to execute our strategy of introducing innovative new products and driving adoption of sleep-disordered breathing therapies in this rapidly growing global market.”