At this time, I would like to turn the call over to Dr. Peter Farrell, ResMed’s Chairman and CEO. Dr. Farrell, please go ahead sir.Peter Farrell Thanks Stacy, and thanks everyone for joining us. I’ll begin as usual with a short summary and then pass the call over to Brett Sandercock, ResMed’s CFO and then we’ll go into a Q&A. So first, the financials. We finished with a very solid quarter. Global revenues in the second quarter of 2012 grew 9% to $333 million, which was also up 9% on a constant currency basis. Revenues in the Americas grew by an encouraging 12% to $182.5 million and ROW revenue increased by 5% at the headline and also in constant currency terms to $150.2 million. GAAP EPS increased 14% to $0.42 for the quarter and I believe consensus was $0.38 which we comfortably beat and if we exclude the amortization of acquired intangibles, EPS was a record $0.44which we would suggest represents effective management and operational excellence and efficiency. With the respect to product performance, masks continued to perform well across the globe and we continue to take market share. The three masks, new masks in the FX trilogy that is the Quattro FX, the Mirage FX and the Swift FX as well as the four versions of these masks continue to do extremely well and with the success of the Mirage, we are gaining additional share in nasal masks category which recently had been a week spot for us. And we just launched the Swift FX [Bella] mask giving female patients the choice of how they wear the masks since it offers hair management solutions in brief and we expect this to also improve patient compliance and in brief the mask has a loop which wraps around the ears without any straps on the forehead or head itself.
And as we recently been highlighting, there is a further reason we continue to see strong growth in the mask category other than the introduction of the new products is that there is excellent business in the resupply or replenishment of masks to the existing patient base. And in this context we are working with our DME and HME customers to help them leverage this business opportunity.Global growth in flow generators this quarter was primarily driven by ventilation and bilevel devices including significant contribution from our Adaptive Servo-Ventilation line, the VPAP Adapt and the S9 AutoSet CS, but in addition also the Stellar products. And we can provide more granularity on that if people wish. In the Americas, bilevels are regaining share as they prove to be a strong value proposition for HMEs and physicians who we believe are scripting them. Growth in the basic flow generator market is still somewhat problematic. It continues to be a challenging environment and actually proved to be a bit more so this quarter in Europe due to difficult macroeconomics or the macroeconomic environment there which people don’t need very much explanation on. The European climate is a little bit cautious and perhaps nervous and the market has slowed somewhat, looking more like growth levels in the US, that is around the 6% to 8% mark. But because we don’t have any material business in those countries or in the countries under severe distress, we’re somewhat isolated from the potential basket cases if you like, the so called PIIGS. Ventilation sales of the Stellar 100 and the 150 continue to grow progressively in Europe and parts of Asia. The 150 Stellar was launched in Europe at the end of the calendar year and both products have received regulatory approval in Japan and will launched there soon.
These vents will rollout progressively over the next few quarters. Of note, the Stellar 150 includes iVAPS which is an automated bilevel mode. The success of the Stellar is another positive indication of our continued progress in product development and there will be more offerings in this space over time. Sales of Stellar 100 in the US are ramping to expectations with the CareFusion sales team. They’re also now selling our masks along with the ventilators.Read the rest of this transcript for free on seekingalpha.com