SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1996
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSACTION PERIOD FROM ___________ TO
_____________
Commission file number: 0-26038
ResMed Inc.
(Exact name of registrant as specified in its charter)
Delaware 98-0152841
(State or other jurisdiction of (I.R.S Employer
incorporation or organization) Identification No.)
5744 Pacific Center Boulevard
Suite 311
San Diego CA 92121
United States Of America
(Address of principal executive offices)
619 622 2040
(Registrant's telephone number including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes __X___ No ______
As of September 30, 1996, 7,183,276 shares of Common Stock($0.004 par value)
were outstanding.
<PAGE>
INDEX
<TABLE>
<CAPTION>
PART I FINANCIAL INFORMATION
<S> <C> <C>
Page
Item 1 Financial Statements
Condensed Consolidated Balance Sheets as of September 3
30, 1996 (unaudited) and June 30, 1996
Condensed Consolidated Statements of Income 4
(unaudited) for Three Months Ended September 30, 1996
and 1995
Condensed Consolidated Statements of Cash Flows 5
(unaudited) for the Three Months Ended September 30,
1996 and 1995
Notes to Condensed Consolidated Financial Statements 6
Item 2 Management's Discussion and Analysis of Financial 11
Condition and Results of Operations
</TABLE>
<TABLE>
<CAPTION>
PART II OTHER INFORMATION
<S> <C> <C>
Item 1 Legal Proceedings 13
Item 2 Changes in Securities 13
Item 3 Defaults Upon Senior Securities 13
Item 4 Submission of Matters to a Vote of Security Holders 13
Item 5 Other Information 13
Item 6 Exhibits and Reports on Form 8-K 13
SIGNATURES 14
</TABLE>
- -2-
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
RESMED INC. AND SUBSIDIARIES
<TABLE>
<CAPTION>
Condensed Consolidated Balance Sheets
(in US$ thousands, except per share data)
<S> <C> <C>
September 30, June 30,
--------------- ------------
1996 1996
--------------- ------------
Assets (unaudited)
Current assets:
Cash and cash equivalents $ 6,455 5,510
Marketable securities - available for sale 18,204 18,021
Accounts receivable, net of allowance of $175 at September
30, 1996 and $175 at June 30, 1996 6,681 6,252
Government grants 810 915
Inventories 6,148 6,134
Prepaid expenses and other current assets 1,757 1,014
____________ ____________
Total current assets 40,055 37,846
Property, plant and equipment, net 3,570 3,284
Patents, net of accumulated amortization of $279 at September
30,1996 and $260 at June 30, 1996 221 217
Deferred income taxes 26 27
Goodwill, net 4,248 4,309
Other assets 2,061 1,263
____________ ____________
Total assets $ 50,181 46,946
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 2,522 2,421
Accrued expenses 3,533 2,815
Income taxes payable 2,247 1,857
Current portion of capital lease obligation 13 -
Current portion of long-term debt 290 289
____________ ____________
Total current liabilities 8,605 7,382
Long-term debt, less current portion 580 578
Capital lease obligation, less current portion 6 -
____________ ____________
Total liabilities 9,191 7,960
____________ ____________
Stockholders' equity:
Preferred stock, $0.01 par value, 2,000,000 shares
authorized; none issued - -
Common Stock $0.004 par value; 15,000,000 shares
authorized; issued and outstanding 7,183,276 at September
30, 1996 and 7,172,408 at June 30, 1996 29 29
Additional paid-in capital 29,506 29,407
Retained Earnings 10,943 9,103
Currency translation adjustment 512 447
____________ ____________
40,990 38,986
Commitments and contingencies ____________ ____________
$ 50,181 46,946
============ ============
<FN>
See the accompanying notes to the condensed consolidated financial statements.
</TABLE>
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<PAGE>
RESMED INC. AND SUBSIDIARIES
<TABLE>
<CAPTION>
Condensed Consolidated Statements of Income (Unaudited)
(in US$ thousands, except share and per share data)
Three Months Ended
September 30,
--------------------
<S> <C> <C>
1996 1995
-------------------- --------------
Net revenues $ 11,141 6,703
Cost of sales 4,850 3,212
____________ ____________
Gross profit 6,291 3,491
____________ ____________
Operating expenses
Selling, general and administrative expenses 3,922 2,130
Research and development expenses 791 680
____________ ____________
Total operating expenses 4,713 2,810
____________ ____________
Income from operations 1,578 681
____________ ____________
Other income, net:
Interest income, net 243 257
Government grants 89 135
Other income, net 796 150
____________ ____________
Total other income, net 1,128 542
____________ ____________
Income before income taxes 2,706 1,223
Income taxes (866) (343)
____________ ____________
Net income $ 1,840 880
============ ============
Net income per common and common equivalent share:
Primary $ 0.25 $ 0.12
Assuming full dilution $ 0.25 $ 0.12
Weighted average shares per common and common equivalent
share, outstanding:
Primary 7,296,475 7,150,838
Assuming full dilution 7,334,845 7,188,459
<FN>
See the accompanying notes to the condensed consolidated financial statements.
</TABLE>
- -4-
<PAGE>
RESMED INC. AND SUBSIDIARIES
<TABLE>
<CAPTION>
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in US$ thousands)
Three Months Ended
September 30,
--------------------
<S> <C> <C>
1996 1995
-------------------- -------------
Cash flows from operating activities:
Net income $ 1,840 880
Adjustment to reconcile net income to net cash provided by/(used)
in operating activities:
Depreciation and amortization 517 135
Provision for service warranties 16 17
Deferred income taxes 1 343
Foreign currency options (717) (22)
Changes in operating assets and liabilities:
Accounts receivable, net (352) (621)
Government grants 109 250
Inventories 6 (1,488)
Prepaid expenses and other current assets (741) 14
Accounts payable, accrued expenses and other liabilities 1,104 (696)
____________ ____________
Net cash provided by/(used) in operating activities 1,783 (1,188)
____________ ____________
Cash flows used in investing activities:
Purchases of property, plant and equipment (668) (229)
Purchases of patents (23) (4)
Purchase of non-trading investments - (329)
Loans receivable (75) -
Purchases of marketable securities - available for sale (11,301) (19,660)
Proceeds from sale of marketable securities - available for sale 11,118 15,791
____________ ____________
Net cash used in investing activities (949) (4,431)
____________ ____________
Cash flows from financing activities - proceeds from issuance of
common stock 99 4,690
____________ ____________
Effect of exchange rate changes on cash 12 122
____________ ____________
Net increase (decrease) in cash and cash equivalents 945 (807)
____________ ____________
Cash and cash equivalents at beginning of period 5,510 3,256
____________ ____________
Cash and cash equivalents at end of period $ 6,455 2,449
============ ============
Supplemental disclosure of cash flow information:
Income taxes paid 279 437
Interest paid - -
<FN>
The Company entered into a capital lease obligation for computer equipment of $19,000 during the three
months September 30, 1996
See the accompanying notes to the condensed consolidated financial statements.
</TABLE>
- -5-
<PAGE>
RESMED INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
(1) Organization and Basis of Presentation
ResMed Inc. (the Company), is a Delaware corporation formed in March 1994
as a holding company for ResCare Holdings Ltd. (RHL), a company resident in
Australia. RHL designs, manufactures and markets devices for the evaluation
and treatment of sleep disordered breathing, primarily obstructive sleep
apnea. The Company's principal manufacturing operations are located in
Australia. Other principal distribution and sales sites are located in the
United States, the United Kingdom and Europe.
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for
a fair presentation have been included. Operating results for the three
months ended September 30, 1996 are not necessarily indicative of the results
that may be expected for the year ended June 30, 1997.
(2) Summary of Significant Accounting Policies
(a) Basis of Consolidation:
The consolidated financial statements include the accounts of the Company
and its wholly owned subsidiaries. All significant intercompany transactions
and balances have been eliminated in consolidation.
(b) Revenue Recognition:
Revenue on product sales is recorded at the time of shipment. Royalty
revenue from license agreements is recorded when earned.
(c) Cash and Cash Equivalents:
Cash equivalents include certificates of deposit, commercial paper, and
other highly liquid investments stated at cost, which approximates market.
Investments with original maturities of 90 days or less are considered to be
cash equivalents for purposes of the consolidated statements of cash flows.
(d) Inventories:
Inventories are stated at the lower of cost, determined principally by
the first-in, first-out method, or net realizable value.
- -6-
<PAGE>
RESMED INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
(2) Summary of Significant Accounting Policies, Continued
(e) Property, Plant and Equipment:
Property, plant and equipment is recorded at cost. Depreciation expense
is computed using the straight-line method over the estimated useful lives of
the assets, generally two to 10 years. Assets held under capital leases are
recorded at the lower of the net present value of the minimum lease payments
or the fair value of the leased asset at the inception of the lease.
Amortization expense is computed using the straight-line method over the
shorter of the estimated useful lives of the assets or the period of the
related lease. Straight-line and accelerated methods of depreciation are used
for tax purposes. Maintenance and repairs are charged to expense as incurred.
(f) Patents:
The registration costs for new patents are capitalized and amortized over
the estimated useful life of the patent, generally five years. In the event
of a patent being superseded, the unamortized costs are written off
immediately.
(g) Government Grants:
Government grants revenue is recognized when earned. Grants have been
obtained by the Company from the Australian Federal Government to support
continued development and export of the Company's proprietary positive airway
pressure technology and to June 30, 1996, to assist development of export
markets. Grants of $89,000 and 135,000 have been recognized for the three
month period ended September 30, 1996 and September 30, 1995, respectively.
(h) Foreign Currency:
The consolidated financial statements of the Company's non-U.S.
subsidiaries are translated into U.S. dollars for financial reporting
purposes. Assets and liabilities of non-U.S. subsidiaries whose functional
currencies are other than the U.S. dollar are translated at period end
exchange rates, revenue and expense transactions are translated at average
exchange rates for the period. Cumulative translation effects are reflected in
stockholders' equity. Gains and losses on transactions, denominated in other
than the functional currency of the entity, are reflected in operations.
(i) Research and Development:
All research and development costs are expensed in the period incurred.
(j) Net Income per Common and Common Equivalent Share:
Primary net income per common and common equivalent share and net income
per common and common equivalent share assuming full dilution are computed
using the weighted average number of shares outstanding, adjusted for the
incremental shares attributed to outstanding options to purchase common stock
as determined under the treasury stock method.
- -7-
<PAGE>
RESMED INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
(2) Summary of Significant Accounting Policies, Continued
(k) Financial Instruments:
The carrying value of financial instruments, such as cash and cash
equivalents, marketable securities - available for sale, accounts receivable,
government grants, foreign currency option contracts, accounts payable and
long-term debt approximate their fair value. The Company does not hold or
issue financial instruments for trading purposes.
The following table presents the carrying amounts and estimated fair
values of the Company's financial instruments at September 30, 1996 and June
30, 1996. The Fair Value of Financial Instruments is defined as the amount at
which the instrument could be exchanged in a current transaction between
willing parties.
<TABLE>
<CAPTION>
September 30, 1996 June 30, 1996
------------------- ----------------
<S> <C> <C> <C> <C>
Carrying Fair Carrying Fair
Amount Value Amount Value
---------- ---------- ---------- ----------
(US$ in thousands)
Financial assets
Cash and cash equivalents $ 6,455 6,455 5,510 5,510
Marketable securities -
available for sale 18,204 18,204 18,021 18,021
Accounts receivable, net 6,681 6,681 6,252 6,252
Government grants 810 810 915 915
Other assets 2,061 2,061 1,263 1,263
Financial liabilities
Accounts payable 2,522 2,522 2,421 2,421
Long - term debt 870 870 867 867
</TABLE>
The carrying amounts shown in the table are included in the statement of
financial position under the indicated captions.
(l) Foreign Exchange Risk Management:
The Company enters into various types of foreign exchange contracts in
managing its foreign exchange risk, including derivative financial instruments
encompassing forward exchange contracts and foreign currency options.
The purpose of the Company's foreign currency hedging activities is to
protect the Company from adverse exchange rate fluctuations with respect to
net cash movements resulting from the sales of products to foreign customers
and Australian manufacturing activities. The Company enters into foreign
currency option contracts to hedge anticipated sales and manufacturing costs
denominated in principally Australian Dollars, Pound Sterling and
Deutschmarks. The term of such foreign exchange contracts generally do not
exceed three years.
- -8-
<PAGE>
RESMED INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
(2) Summary of Significant Accounting Policies, Continued
(l) Foreign Exchange Risk Management, Continued
Premiums to enter certain foreign currency options are included in other
assets and are amortized over the period of the agreement in the consolidated
statement of income against other income, net. At September 30, 1996
unamortized premiums amounted to $271,000.
Unrealized gains or losses are recognized as incurred in the statement of
financial position as either other assets or other liabilities and are
recorded within other income, net on the Company's consolidated statements of
income. Unrealized gains and losses on currency derivatives are determined
based on dealer quoted prices.
Foreign currency option contracts have been purchased in part by the
issue of put options to counterparts. As a result, should foreign exchange
rates drop below a specified level, on a specific date, the Company is
required to deliver certain funds to counterparts at contracted foreign
exchange rates. As at September 30, 1996 none of the put options issued by
the Company are exercisable as foreign exchange rates remain above the foreign
exchange rates specified.
The Company is exposed to credit-related losses in the event of
non-performance by counterparts to financial instruments, but it does not
expect any counterparts to fail to meet their obligations given their high
credit ratings. The credit exposure of foreign exchange options is
represented by the fair value of options with a positive fair value at the
reporting date.
At September 30, 1996 the Company held foreign currency option contracts
with notional amounts totaling $41,691,919 to hedge foreign currency items.
These contracts mature at various dates prior to June 30, 1998.
(m) Income Taxes:
The Company accounts for income taxes under Statement of Financial
Accounting Standards No. 109, "Accounting for Income Taxes" (Statement 109).
Statement 109 requires an asset and liability method of accounting for income
taxes. Under the asset and liability method of Statement 109, deferred tax
assets and liabilities are recognized for the future tax consequences
attributable to differences between the financial statement carrying amounts
of existing assets and liabilities and their respective tax bases. Deferred
tax assets and liabilities are measured using enacted tax rates expected to
apply to taxable income in the years in which those temporary differences are
expected to be recovered or settled. Under Statement 109, the effect on
deferred tax assets and liabilities of a change in tax rates is recognized in
income in the period that includes the enactment date.
- -9-
<PAGE>
RESMED INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
<TABLE>
<CAPTION>
(3) Inventories
Inventories were comprised of the following at September 30, 1996 and
June 30, 1996:
<S> <C> <C>
September 30, June 30,
1996 1996
-------------- ---------
Raw materials $ 1,816 $ 2,088
Work in progress 577 257
Finished goods 3,755 3,789
_______ _______
$ 6,148 $ 6,134
======= =======
</TABLE>
- -10-
<PAGE>
RESMED INC. AND SUBSIDIARIES
MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF
OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 1996 AND SEPTEMBER 30, 1995
Net Revenues
Net revenues increased for the three months ended September 30, 1996 to $11.1
million from $6.7 million for the three months ended September 30, 1995, an
increase of $4.4 million or 66%. The three month increase in net revenues is
primarily attributable to an increase in unit sales of the Company's flow
generators and accessories in North America and Europe, which benefited
significantly from the additional revenues generated in Germany from the
Priess business which was acquired in February 1996. Net revenues in North
America increased to $4.4 million from $3.6 million for the quarter and in
Europe to $5.4 million from $1.9 million, respectively.
Gross Profit
Gross profit increased for the three months ended September 30, 1996 to $6.3
million from $3.5 million for the three months ended September 30, 1995, an
increase of $2.8 million or 80%. The increase resulted primarily from
increased unit sales, a shift to higher margin products, and a significant
improvement in European revenues during the quarter ended September 30, 1996.
Gross profit as a percentage of net revenues increased for the quarter ended
September 30, 1996 to 56% from 52% in three months ended September 30, 1995.
Selling, General and Administrative Expenses
Selling, general and administrative expenses increased for the three months
ended September 30, 1996 to $3.9 million from $2.1 million for the three
months ended September 30, 1995, an increase of $1.8 million or 84%. As a
percentage of net revenues, selling, general and administrative expenses
increased to 35% for the quarter ended September 30, 1996 from 32% for the
three months ended September 30, 1995. The increase in gross selling, general
and administrative expenses was due primarily to an increase from 70 to 88 in
the number of sales and administrative personnel, including 24 persons
employed on acquisition of Priess, an increase in legal costs from $61,000 to
$327,000 associated with ongoing legal action (refer Part II Item 1) and other
expenses related to the increase in Company sales.
Research and Development Expenses
Research and development expenses increased for the three months ended
September 30, 1996 to $791,000 from $680,000 for the three months ended
September 30, 1995, an increase of $111,000 or 16%. As a percentage of net
revenues, research and development expenses for the three months ended
September 30, 1996 decreased to 7% from 10% for the period ended September 30,
1995. The increase in gross research and development expenses was due to an
increase in charges for consulting fees and technical assessments incurred to
facilitate product development of a number of new products.
Other Income, net
Other income, net increased for the three months ended September 30, 1996 to
$1,128,000 from $542,000 for the three months ended September 30, 1995, an
increase of $586,000 or 108%. This increase was due primarily to net foreign
exchange gains of $750,000 relating to marking to market foreign currency
option contracts. Government grants income declined for the three months
ended September 30, 1996 to $89,000 from $135,000 for the three months ended
September 30, 1995 reflecting the termination of Australian Federal Government
export grants. This termination was marginally offset by an increase in both
manufacturing and research activity for which the Company receives grant
revenues.
- -11-
<PAGE>
RESMED INC. AND SUBSIDIARIES
MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF
OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 1996 AND SEPTEMBER 30, 1995
Income Taxes
The Company's effective income tax rate for the three months ended September
30, 1996 increased to approximately 32% from approximately 28% for the three
months ended September 30, 1995. The increased tax rate primarily relates to
a relatively higher German effective corporate taxation rate. This effective
tax rate increase is partially offset by the increase in Australian research
and development expenses incurred in the first quarter of fiscal 1997 over the
first quarter of fiscal 1996 for which the Company received a 150% deduction
under Australian tax law. The 150% research and development deduction was
only available on expenses incurred up to August 20, 1996. Subsequent to
August 20, 1996 the Company receives a 125% deduction for research and
development expenditures incurred in Australia, under revised Australian
taxation legislation.
Liquidity and Capital Resources
As of September 30, 1996 and June 30, 1996, the Company had cash and cash
equivalents and marketable securities available for sale of approximately
$24.7 million and $23.5 million, respectively. The Company's working capital
approximated $31.5 million and $30.5 million, at September 30, 1996 and June
30, 1996, respectively. The increase in working capital balances reflects the
increase in cash generated from operations.
During the three months ended September 30, 1996, the Company's operations
generated $1.8 million cash from operations, primarily as a result of
increased profit from operations offset partially by increases in accounts
receivable due to increased sales. During the three months ended September
30, 1995 approximately $1.2 million of cash was used by operations primarily
due to increased inventory levels.
The Company's capital expenditures for the three month period ended September
30, 1996 and 1995 aggregated $687,000 and $229,000 respectively. The majority
of the expenditures in the three month period ending September 30, 1996
relates to the purchase of computer software and hardware, production tooling
and equipment and, to a lesser extent, office furniture and research and
development equipment. As a result of these capital expenditures, the
Company's September 30, 1996 balance sheet reflects net property plant and
equipment of approximately $3.6 million at September 30, 1996, compared to
$3.3 million at June 30, 1996.
The results of the Company's international operations are affected by changes
in exchange rates between currencies. Changes in exchange rates may
negatively affect the Company's consolidated net sales and gross profit
margins from international operations. The Company is exposed to the risk
that the dollar-value equivalent of anticipated cash flows will be adversely
affected by changes in foreign currency exchange rates. The Company manages
this risk through foreign currency option contracts.
In May 1993, the Australian Federal Government agreed to lend the Company up
to $870,000 over a six year term. Such loan bears no interest for the first
three years and bears interest at a rate of 3.8% thereafter until maturity.
The outstanding principal balance of such loan was $870,000 and $867,000 at
September 30, 1996 and June 30, 1996, respectively.
- -12-
<PAGE>
RESMED INC. AND SUBSIDIARIES
PART II OTHER INFORMATION
Item 1. Legal Proceedings
In October 1994, in Australia, a patent held by ResMed was revoked on
appeal on grounds that the patent was not entitled to claim priority to a
"provisional" application, which was filed before the inventor's publication.
As a result of this claim, ResMed based in part on advice from legal counsel,
at June 30, 1994 accrued approximately $300,000 for costs associated with this
patent litigation which remains outstanding at September 30, 1996. This
amount is included in accrued expenses on consolidated balance sheets.
In January 1995, the Company filed a complaint for patent infringement in
the United States District Court against Respironics Inc., a Delaware
registered company. In response, in February 1995, Respironics filed a
complaint against the Company that asserts, (i) Respironics does not infringe
the subject patents; and (ii) that the subject patents are invalid and
unenforceable. Management believes, based in part on advice from legal
counsel, that this action will not have a material adverse effect on the
operations or financial position of the Company.
In May 1995, Respironics and its Australian distributor filed a statement
of claim against the Company and its President in the Federal Court of
Australia, New South Wales District Registry. The statement of claim alleges
that the Company engaged in unfair trade practices, including misuse of the
power afforded by its Australian patents and dominant market position in
violation of the Australian Trade Practices Act. The statement of claim
asserts damage claims in the aggregate amount of approximately $901,000,
constituting lost profit on sales. While the Company intends to defend this
action vigorously, there can be no assurance that the Company will be
successful in defending such action or that the Company will not be required
to make significant payments to the claimants. Furthermore, the Company
expects to incur ongoing legal costs in defending such action.
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Report on Form 8K
None
- -13-
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ResMed Inc.
PETER C FARRELL
________________________
Peter C Farrell
President and Chief Executive Officer
ADRIAN M SMITH
________________________
Adrian M Smith
Vice President Finance and Chief Financial Officer
- -14-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
RESMED INC'S FIRST QUARTER SEPTEMBER 30, 1996 FINANCIAL REPORT AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000943819
<NAME> RESMED INC
<MULTIPLIER> 1
<CURRENCY> USD $ CURRENCY
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS
<FISCAL-YEAR-END> JUN-30-1997 JUN-30-1996
<PERIOD-END> SEP-30-1996 SEP-30-1995
<EXCHANGE-RATE> 1 1
<CASH> 6,455,000 2,449,000
<SECURITIES> 18,204,000 24,383,000
<RECEIVABLES> 6,681,000 4,507,000
<ALLOWANCES> (175,000) (155,000)
<INVENTORY> 6,148,000 5,794,000
<CURRENT-ASSETS> 40,055,000 38,024,000
<PP&E> 3,570,000 2,182,000
<DEPRECIATION> 0 0
<TOTAL-ASSETS> 50,181,000 40,867,000
<CURRENT-LIABILITIES> 8,605,000 5,329,000
<BONDS> 0 0
0 0
0 0
<COMMON> 29,000 28,000
<OTHER-SE> 29,506,000 29,081,000
<TOTAL-LIABILITY-AND-EQUITY> 50,181,000 40,867,000
<SALES> 11,141,000 6,703,000
<TOTAL-REVENUES> 11,141,000 6,703,000
<CGS> 4,850,000 3,312,000
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 2,706,000 1,223,000
<INCOME-TAX> 866,000 343,000
<INCOME-CONTINUING> 1,840,000 880,000
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 1,840,000 880,000
<EPS-PRIMARY> $0.25 $0.12
<EPS-DILUTED> $0.25 $0.12
</TABLE>
