August 22, 2006
Despite the fact that ResMed, San Diego, recently announced revenue for the quarter ended June 30, 2006, at $171.2 million, a 36% increase over the quarter for the previous year, company shares dropped last Friday.
According to a prepared statement from Peter C. Farrell, PhD, chairman and CEO of ResMed, the company experienced its 45th consecutive record quarter. However, investors’ concern that the company may be unable to continue its growth caused shares to slide downward, a report published in The San Diego Union-Tribune said.
The report went on to explain the reaction by investors, stating, “Investors reacted to the company’s gross margin, which was weaker than expected at 61%.” According to a Reuters report, the decline in shares resulted from investors who reacted to concerns about “price erosion in the sleep device market.”