ResMed Inc. reported unaudited consolidated earnings results for the second quarter and six months ended December 31, 2016. For the quarter, the company reported net revenue of $530,397,000 compared to $454,540,000 a year ago. Income from operations was $96,895,000 compared to $107,977,000 a year ago. Income before income taxes was $96,207,000 compared to $113,695,000 a year ago. Net income was $76,743,000 or $0.54 per diluted share compared to $95,576,000 or $0.68 per diluted share a year ago. Non-GAAP income from operations was $131,574,000 compared to $116,918,000 a year ago. Non-GAAP diluted earnings per share were $0.69 compared to $0.65 a year ago. Non-GAAP net income for the quarter ended December 31, 2016 was $103,264,000 compared with $102,537,000 for the quarter ended December 31, 2015. Non-GAAP diluted earnings per share were $0.73 compared to $0.73 a year ago. Cash flow from operations was $119.9 million, which reflects strong underlying earnings, offset to some extent by a modest increase in networking capital balances during the quarter. Capital expenditure was $14.7 million.

For the six months period, the company reported net revenue of $995,846,000 compared to $866,187,000 a year ago. Income from operations was $191,039,000 compared to $206,002,000 a year ago. Income before income taxes was $189,131,000 compared to $213,139,000 a year ago. Net income was $152,849,000 or $1.08 per diluted share compared to $178,493,000 or $1.26 per diluted share a year ago. Net cash provided by operating activities was $206,142,000 compared to $280,222,000 a year ago. Purchases of property, plant and equipment were $29,247,000 compared to $30,934,000 a year ago. Non-GAAP income from operations was $242,529,000 compared to $217,250,000 a year ago. Non-GAAP net income for the quarter ended December 31, 2016 was $190,926,000 compared with $187,171,000 for the quarter ended December 31, 2015. Non-GAAP diluted earnings per share were $1.34 compared to $1.32 a year ago. At December 31, the company has approximately $1.2 billion in gross debt and $318 million in net debt.

The company expects gross margins to continue being in the range of 58% to 60% for the balance of fiscal year 2017. The company estimates effective tax rate for the fiscal year 2017 will be in the range of 20% to 22%.