Sleep apnea treatment company ResMed (ASX: RMD) achieved strong growth in revenue and profit in the first quarter of the 2020 financial year driven by product innovation and increasing software sales.
The Sydney company reported revenue up 16 per cent to $999.3 million (US$681 million) with net operating profit up 19 per cent.
ResMed manufactures continuous positive airway pressure machines, masks and software which connect between patient and health professional via the cloud.
CEO Mick Farrell said the company achieved double digit growth in revenue and the bottom line in the first quarter of 2020.
Farrell said: “We are particularly pleased that strong demand for our new products drove high teens growth in the mask category during the quarter.
“Through organic growth and targeted acquisitions, we are driving forward every facet of our business., leading the innovation of devices and software that improve health outcomes, create efficiencies and reduce overall healthcare costs.”
An innovation highlight for the year was the release of the AirFit N30 (pictured), the world’s first tube-down nasal CPAP mask with a front-facing tube, making for more comfortable sleeping.
The company’s star growth business with revenues up 83 per cent on 2019 is software as a service delivered by two companies it purchased – Brightree and MatrixCare.
MatrixCare provides out-of-hospital software-as-a-service (SaaS) offerings, while Brightree’s cloud-based software helps healthcare professional customers improve their clinical and business performance.
Subscribe to our free @AuManufacturing newsletter here.