Cloud-connected devices to treat sleep disorders have helped boost ResMed's quarterly revenue, and the company's share price.
Shares in US-based ResMed climbed more than five per cent on Friday after the sleep disorder equipment supplier lifted its second quarter revenue by seven per cent.
On a constant currency basis, revenue for the three months to December 31 was up 13 per cent.
ResMed securities were 41 cents, or 5.23 per cent, higher at $8.25 at 1330 AEDT.
ResMed chief executive Mick Farrell said quarterly revenue from the Americas region had lifted by 17 per cent to $269.5 million as customers showed strong take-up of ResMed's Air Solutions platform that was released 15 months ago.
"Our Americas region was a significant contributor this quarter, as our customers continued to show their strong preference for our offerings, including Air Solutions cloud-based software, AirSense devices, and AirFit patient interface systems," Mr Farrell said.
The cloud-connected Air Solutions platform comprises a range of devices and software - including ventilators, masks, and a monitoring and compliance management system - for treating sleep apnea.
Sleep apnea is a medical condition that causes a person's breathing to become shallow or stop for a few seconds during sleep.
"We have been significantly expanding our install base of cloud-connected medical devices," Mr Farrell said.
More than one million ResMed cloud-connected medical devices are in use.
Cloud-connected devices sitting on a patient's bedside table send data to the cloud, providing actionable information to patients and physicians.
"We are transforming ResMed into a tech-driven medical device leader," Mr Farrell said.
ResMed also has expanded its respiratory care business into the field of long-term oxygen therapy.
ResMed said last week that it will acquire Texas-based Inova Labs, a supplier of portable oxygen concentrators used to treat patients with chronic obstructive pulmonary disease (COPD).
COPD is a disabling condition that limits airflow to the lung. The condition is linked to smoking and outdoor, occupational and indoor air pollution.
The portable oxygen concentrators enhance a patient's mobility.
ResMed's second quarter net income fell one per cent to $US90.5 million, from $US91.2 million a year earlier, partly because of restructuring expenses associated with the company's European facilities.
But taking out the restructuring expenses of $US5.2 million, amortisation of acquired intangible assets and other non-operating items, adjusted net income for the second quarter lifted to $US97.5 million, up five per cent from $US92.9 million.
CLOUD-CONNECTED DEVICES BOOST RESMED REVENUE
* Revenue for second quarter of $US454.5m, up 7pc from $US422.9m
* Net income of $US90.5m, down 1pc from $US91.2m
* Quarterly dividend of three US cents per security in Australia
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