ResMed — Jan 30, 2025 release

Exhibit 99.1     For investors    For media +1 858-836-5000    +1 619-510-1281 investorrelations@resmed.com    news@resmed.com ResMed Inc. Announces Results for the Second Quarter of Fiscal Year 2025     – Year-over-year revenue grows 10%, operating profit up 52%,  non-GAAP  operating profit up 19%     – Operating cash flow of $309 million Note: A webcast of ResMed’s conference call will be available at 4:30 p.m. ET today at  http://investor.resmed.com SAN DIEGO, January 30, 2025 – ResMed Inc. (NYSE: RMD, ASX: RMD) today announced results for its quarter ended December 31, 2024. Second Quarter 2025 Highlights All comparisons are to the prior year period     •   Revenue increased by 10% to $1.3 billion; up 10% on a constant currency basis     •   Gross margin improved 300 bps to 58.6%; non-GAAP gross margin improved 230 bps to 59.2%     •   Income from operations increased 52%; non-GAAP income from operations up 19%     •   Operating cash flow of $309 million     •   Diluted earnings per share of $2.34; non-GAAP diluted earnings per share of $2.43 “Our second quarter fiscal year 2025 top-line growth, margin expansion, and double-digit EPS growth were the result of increased demand for our sleep health and breathing health products and digital health solutions that people love, as well as our laser-focus on operational excellence,” said ResMed’s Chairman and CEO, Mick Farrell. “We delivered 10% year-over-year revenue growth, 230 bps improvement in gross margin, and $309 million of operating cash flow. These results are a continuation of the incredible commitment from our team to create a clear market-leading value proposition in connected digital health. Our ecosystem is unmatched and ResMed is well-positioned to capitalize on the once-in-a-generation opportunities we have with the recent introduction and adoption of consumer wearables that track sleep health, as well as use of GLP-1 therapies. We believe these developments will drive increased patient flow as we continue to educate people on the benefits of healthy sleep and breathing, with care delivered right in their own home.” RMD Second Quarter 2025 Earnings Press Release – January 30, 2025    Page 2 of 10   Financial Results and Operating Metrics Unaudited; $ in millions, except for per share amounts        Three Months Ended        December 31, 2024     December 31, 2023     % Change     Constant Currency  (A)   Revenue    $ 1,282.1     $ 1,162.8       10 %      10 %  Gross margin      58.6 %      55.6 %      5     Non-GAAP gross margin  (B)      59.2 %      56.9 %      4     Selling, general, and administrative expenses      241.6       222.2       9       9   Research and development expenses      81.4       73.9       10       10   Income from operations      417.2       275.1       52     Non-GAAP income from operations  (B)      435.9       365.5       19     Net income      344.6       208.8       65     Non-GAAP net income  (B)      358.3       277.3       29     Diluted earnings per share    $ 2.34     $ 1.42       65     Non-GAAP diluted earnings per share  (B)    $ 2.43     $ 1.88       29            Six Months Ended        December 31, 2024     December 31, 2023     % Change     Constant Currency  (A)   Revenue    $ 2,506.6     $ 2,265.1       11 %      11 %  Gross margin      58.6 %      55.1 %      6     Non-GAAP gross margin  (B)      59.2 %      56.4 %      5     Selling, general, and administrative expenses      480.6       445.0       8       8   Research and development expenses      160.9       149.6       8       7   Income from operations      804.6       564.1       43     Non-GAAP income from operations  (B)      842.3       684.3       23     Net income      656.0       428.2       53     Non-GAAP net income  (B)      683.7       518.5       32     Diluted earnings per share    $ 4.45     $ 2.90       53     Non-GAAP diluted earnings per share  (B)    $ 4.63     $ 3.51       32       (A) In order to provide a framework for assessing how our underlying businesses performed, excluding the effect of foreign currency fluctuations, we provide certain financial information on a “constant currency” basis, which is in addition to the actual financial information presented. In order to calculate our constant currency information, we translate the current period financial information using the foreign currency exchange rates that were in effect during the previous comparable period. However, constant currency measures should not be considered in isolation or as an alternative to U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP. (B) See the reconciliation of non-GAAP financial measures in the table at the end of the press release. Discussion of Second Quarter Results All comparisons are to the prior year period unless otherwise noted     •   Revenue grew by 10 percent on a constant currency basis, driven by increased demand for our sleep devices and masks portfolio, as well as solid growth across our Residential Care Software business.     •   Revenue in the U.S., Canada, and Latin America, excluding Residential Care Software, grew by 12 percent.     •   Revenue in Europe, Asia, and other markets, excluding Residential Care Software, grew by 8 percent on a constant currency basis. RMD Second Quarter 2025 Earnings Press Release – January 30, 2025    Page 3 of 10     •   Residential Care Software revenue increased by 8 percent on a constant currency basis, reflecting continued organic growth in our Residential Care Software portfolio.     •   Gross margin increased by 300 basis points mainly due to manufacturing and logistics efficiencies and component cost improvements. Non-GAAP gross margin increased by 230 basis points due to the same factors.     •   Selling, general, and administrative expenses increased by 9 percent on a constant currency basis. The increase in SG&A expenses was mainly due to increases in employee-related expenses. SG&A expenses improved to 18.8 percent of revenue in the quarter, compared with 19.1 percent in the same period of the prior year.     •   Income from operations increased by 52 percent as the prior year included $64.2 million of restructuring related charges. Non-GAAP income from operations increased by 19 percent.     •   Net income for the quarter was $345 million and diluted earnings per share was $2.34. Non-GAAP net income increased by 29 percent to $358 million, and non-GAAP diluted earnings per share increased by 29 percent to $2.43, predominantly attributable to strong sales growth and gross margin improvement.     •   Operating cash flow for the quarter was $309 million, compared to net income in the current quarter of $345 million and non-GAAP net income of $358 million.     •   During the quarter, we paid $78 million in dividends to shareholders and repurchased 307,000 shares for consideration of $75 million as part of our ongoing capital management. Other Business and Operational Highlights     •   Announced the launch of the Kontor Head Strap, a premium accessory for Apple Vision Pro, that delivers a superb balance of softness and support for extended wear-time. The Kontor Head Strap is crafted with a blend of ResMed-exclusive ultra-premium materials designed to be gentle on the skin and allow for further customization of Apple Vision Pro with the option to utilize six included modular counterweights. The Kontor Head Strap enables extended wear-time benefits for Vision Pro users. ResMed’s products are engineered to deliver exceptional comfort and performance, enhancing users’ experiences across healthcare and technology.     •   Reaffirmed our commitment to expanding our Singapore operations in partnership with the Singapore Economic Development Board (EDB). We will make new investments in Singapore by 2029, strengthening our global manufacturing network and positioning our Singapore presence as a key innovation hub across the Asia-Pacific.     •   Named to Forbes’ first-ever Most Trusted Companies in America list based on employee trust, customer trust, investor trust and media sentiment. Named for the fifth consecutive year to Wall Street Journal’s Management Top 250 ranking based on customer satisfaction, employee engagement and development, innovation, social responsibility, and financial strength. RMD Second Quarter 2025 Earnings Press Release – January 30, 2025    Page 4 of 10   Dividend program The ResMed board of directors today declared a quarterly cash dividend of $0.53 per share. The dividend will have a record date of February 13, 2025, payable on March 20, 2025. The dividend will be paid in U.S. currency to holders of ResMed’s common stock trading on the New York Stock Exchange. Holders of CHESS Depositary Interests (“CDIs”) trading on the Australian Securities Exchange will receive an equivalent amount in Australian currency, based on the exchange rate on the record date, and reflecting the 10:1 ratio between CDIs and NYSE shares. The ex-dividend date will be February 12, 2025, for common stockholders and for CDI holders. ResMed has received a waiver from the ASX’s settlement operating rules, which will allow ResMed to defer processing conversions between its common stock and CDI registers from February 12, 2025, through February 13, 2025, inclusive. Webcast details ResMed will discuss its second quarter fiscal year 2025 results on its webcast at 1:30 p.m. U.S. Pacific Time today. The live webcast of the call can be accessed on ResMed’s Investor Relations website at investor.resmed.com . Please go to this section of the website and click on the icon for the “Q2 2025 Earnings Webcast” to register and listen to the live webcast. A replay of the earnings webcast will be accessible on the website and available approximately two hours after the live webcast. In addition, a telephone replay of the conference call will be available approximately three hours after the webcast by dialing +1 877-660-6853 (U.S.) or +1 201-612-7415 (outside U.S.) and entering the passcode 13750689. The telephone replay will be available until February 13, 2025. About ResMed At ResMed (NYSE: RMD, ASX: RMD) we pioneer innovative solutions that treat and keep people out of the hospital, empowering them to live healthier, higher-quality lives. Our digital health technologies and cloud-connected medical devices transform care for people with sleep apnea, COPD, and other chronic diseases. Our comprehensive out-of-hospital software platforms support the professionals and caregivers who help people stay healthy in the home or care setting of their choice. By enabling better care, we improve quality of life, reduce the impact of chronic disease, and lower costs for consumers and healthcare systems in more than 140 countries. To learn more, visit ResMed.com  and follow @ResMed. Safe harbor statement Statements contained in this release that are not historical facts are “forward-looking” statements as contemplated by the Private Securities Litigation Reform Act of 1995. These forward-looking statements – including statements regarding ResMed’s projections of future revenue or earnings, expenses, new product development, new product launches, new markets for its products, the integration of acquisitions, our supply chain, domestic and international regulatory developments, litigation, tax outlook, and the expected impact of macroeconomic conditions of our business – are subject to risks and uncertainties, which could cause actual results to materially differ from those projected or implied in the forward-looking statements. Additional risks and uncertainties are discussed in ResMed’s periodic reports on file with the U.S. Securities & Exchange Commission. ResMed does not undertake to update its forward-looking statements. – More – RMD Second Quarter 2025 Earnings Press Release – January 30, 2025    Page 5 of 10   RESMED INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited; $ in thousands, except for per share amounts)        Three Months Ended     Six Months Ended        December 31, 2024     December 31, 2023     December 31, 2024     December 31, 2023   Net revenue    $ 1,282,089     $ 1,162,801     $ 2,506,598     $ 2,265,122   Cost of sales      523,180       501,259       1,022,800       986,702   Amortization of acquired intangibles  (1)      7,634       8,257       15,304       17,164   Masks with magnets field safety notification expenses (1)      —        6,351       —        6,351   Astral field safety notification expenses (1)      —        —        —        7,911                                    Total cost of sales    $ 530,814     $ 515,867     $ 1,038,104     $ 1,018,128                                    Gross profit    $ 751,275     $ 646,934     $ 1,468,494     $ 1,246,994   Selling, general, and administrative      241,613       222,155       480,592       445,029   Research and development      81,372       73,880       160,897       149,590   Amortization of acquired intangibles  (1)      11,047       11,577       22,451       24,056   Restructuring expenses  (1)      —        64,228       —        64,228                                    Total operating expenses    $ 334,032     $ 371,840     $ 663,940     $ 682,903                                    Income from operations    $ 417,243     $ 275,094     $ 804,554     $ 564,091   Other income (expenses), net:          Interest (expense) income, net    $ (775 )    $ (13,805 )    $ (2,436 )    $ (28,762 )  Gain (loss) attributable to equity method investments      1,077       739       2,040       (3,156 )  Gain (loss) on equity investments (1)      (1,439 )      (1,888 )      (2,119 )      (2,491 )  Other, net      2,216       (686 )      (219 )      1,963                                    Total other income (expenses), net      1,079       (15,640 )      (2,734 )      (32,446 )                                   Income before income taxes    $ 418,322     $ 259,454     $ 801,820     $ 531,645   Income taxes      73,700       50,654       145,843       103,423                                    Net income    $ 344,622     $ 208,800     $ 655,977     $ 428,222                                    Basic earnings per share    $ 2.35     $ 1.42     $ 4.47     $ 2.91   Diluted earnings per share    $ 2.34     $ 1.42     $ 4.45     $ 2.90   Non-GAAP diluted earnings per share  (1)    $ 2.43     $ 1.88     $ 4.63     $ 3.51   Basic shares outstanding      146,810       147,132       146,835       147,104   Diluted shares outstanding      147,481       147,545       147,520       147,572     (1) See the reconciliation of non-GAAP financial measures in the table at the end of the press release. – More – RMD Second Quarter 2025 Earnings Press Release – January 30, 2025    Page 6 of 10   RESMED INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited; $ in thousands)        December 31, 2024     June 30, 2024   Assets      Current assets:      Cash and cash equivalents    $ 521,944     $ 238,361   Accounts receivable, net      859,937       837,275   Inventories      882,103       822,250   Prepayments and other current assets      572,193       459,833                    Total current assets    $ 2,836,177     $ 2,357,719   Non-current assets:      Property, plant, and equipment, net    $ 520,162     $ 548,025   Operating lease right-of-use assets      151,012       151,121   Goodwill and other intangibles, net      3,243,356       3,327,959   Deferred income taxes and other non-current assets      390,627       487,570                    Total non-current assets    $ 4,305,157     $ 4,514,675                    Total assets    $ 7,141,334     $ 6,872,394                    Liabilities and Stockholders’ Equity      Current liabilities:      Accounts payable    $ 220,313     $ 237,728   Accrued expenses      352,541       377,678   Operating lease liabilities, current      27,812       25,278   Deferred revenue      156,508       152,554   Income taxes payable      84,880       107,517   Short-term debt      9,906       9,900                    Total current liabilities    $ 851,960     $ 910,655   Non-current liabilities:      Deferred revenue    $ 146,512     $ 137,343   Deferred income taxes      77,004       79,339   Operating lease liabilities, non-current      139,159       141,444   Other long-term liabilities      10,831       42,257   Long-term debt      662,859       697,313                    Total non-current liabilities    $ 1,036,365     $ 1,097,696                    Total liabilities    $ 1,888,325     $ 2,008,351                    Stockholders’ equity      Common stock    $ 760     $ 588   Additional paid-in capital      1,957,359       1,896,604   Retained earnings      5,492,038       4,991,647   Treasury stock      (1,898,258 )      (1,773,267 )  Accumulated other comprehensive income      (298,890 )      (251,529 )                   Total stockholders’ equity    $ 5,253,009     $ 4,864,043                    Total liabilities and stockholders’ equity    $ 7,141,334     $ 6,872,394                    – More – RMD Second Quarter 2025 Earnings Press Release – January 30, 2025    Page 7 of 10   RESMED INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited; $ in thousands)        Three Months Ended     Six Months Ended        December 31, 2024     December 31, 2023     December 31, 2024     December 31, 2023   Cash flows from operating activities:          Net income    $ 344,622     $ 208,800     $ 655,977     $ 428,222   Adjustment to reconcile net income to cash provided by operating activities:          Depreciation and amortization      46,439       44,784       91,169       89,718   Amortization of right-of-use assets      9,463       8,586       18,443       17,094   Stock-based compensation costs      22,634       19,840       42,790       38,350   (Gain) loss attributable to equity method investments, net of dividends received      (1,077 )      (739 )      (2,040 )      3,156   (Gain) loss on equity investments      1,439       1,888       2,119       2,491   Non-cash restructuring expenses      —        33,239       —        33,239   Changes in operating assets and liabilities:          Accounts receivable, net      (67,853 )      (26,802 )      (31,436 )      (20,269 )  Inventories, net      (7,641 )      50,184       (77,895 )      77,095   Prepaid expenses, net deferred income taxes and other current assets      (43,623 )      (32,575 )      (43,746 )      (74,590 )  Accounts payable, accrued expenses, income taxes payable and other      4,219       (34,373 )      (21,220 )      (35,391 )                                   Net cash provided by (used in) operating activities    $ 308,622     $ 272,832     $ 634,161     $ 559,115   Cash flows from investing activities:          Purchases of property, plant, and equipment      (20,644 )      (23,353 )      (38,484 )      (53,388 )  Patent registration and acquisition costs      (2,825 )      (1,205 )      (4,592 )      (12,036 )  Business acquisitions, net of cash acquired      (670 )      (7,504 )      (670 )      (110,688 )  Purchases of investments      (1,000 )      (3,625 )      (2,350 )      (7,305 )  Proceeds from exits of investments      250       —        4,378       250   Proceeds (payments) on maturity of foreign currency contracts      (11,803 )      (5,456 )      7,172       (6,956 )                                   Net cash provided by (used in) investing activities    $ (36,692 )    $ (41,143 )    $ (34,546 )    $ (190,123 )  Cash flows from financing activities:          Proceeds from issuance of common stock, net      26,877       19,524       35,260       20,507   Purchases of treasury stock      (74,986 )      (50,007 )      (124,991 )      (50,007 )  Taxes paid related to net share settlement of equity awards      (16,734 )      (7,797 )      (17,123 )      (8,022 )  Payments of business combination contingent consideration      —        —        (855 )      (1,293 )  Proceeds from borrowings, net of borrowing costs      —        —        —        105,000   Repayment of borrowings      (5,000 )      (130,000 )      (35,000 )      (315,000 )  Dividends paid      (77,695 )      (70,678 )      (155,586 )      (141,275 )                                   Net cash provided by (used in) financing activities    $ (147,538 )    $ (238,958 )    $ (298,295 )    $ (390,090 )                                   Effect of exchange rate changes on cash    $ (28,809 )    $ 8,416     $ (17,737 )    $ 3,454                                    Net increase (decrease) in cash and cash equivalents      95,583       1,147       283,583       (17,644 )  Cash and cash equivalents at beginning of period      426,361       209,100       238,361       227,891                                    Cash and cash equivalents at end of period    $ 521,944     $ 210,247     $ 521,944     $ 210,247                                    – More – RMD Second Quarter 2025 Earnings Press Release – January 30, 2025    Page 8 of 10   RESMED INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures (Unaudited; $ in thousands, except for per share amounts) The measures “non-GAAP gross profit” and “non-GAAP gross margin” exclude amortization expense from acquired intangibles and restructuring expense related to cost of sales and are reconciled below:        Three Months Ended     Six Months Ended        December 31, 2024     December 31, 2023     December 31, 2024     December 31, 2023   Revenue    $ 1,282,089     $ 1,162,801     $ 2,506,598     $ 2,265,122   GAAP cost of sales    $ 530,814     $ 515,867     $ 1,038,104     $ 1,018,128   Less:  Amortization of acquired intangibles  (A)      (7,634 )      (8,257 )      (15,304 )      (17,164 )  Less : Masks with magnets field safety notification expenses (A)      —        (6,351 )      —        (6,351 )  Less : Astral field safety notification expenses (A)      —        —        —        (7,911 )                                   Non-GAAP cost of sales    $ 523,180     $ 501,259     $ 1,022,800     $ 986,702   GAAP gross profit    $ 751,275     $ 646,934     $ 1,468,494     $ 1,246,994   GAAP gross margin      58.6 %      55.6 %      58.6 %      55.1 %  Non-GAAP gross profit    $ 758,909     $ 661,542     $ 1,483,798     $ 1,278,420   Non-GAAP gross margin      59.2 %      56.9 %      59.2 %      56.4 %  The measure “non-GAAP income from operations” is reconciled with GAAP income from operations below:        Three Months Ended      Six Months Ended        December 31, 2024      December 31, 2023      December 31, 2024      December 31, 2023   GAAP income from operations    $ 417,243      $ 275,094      $ 804,554      $ 564,091   Amortization of acquired intangibles—cost of sales  (A)      7,634        8,257        15,304        17,164   Amortization of acquired intangibles—operating expenses  (A )      11,047        11,577        22,451        24,056   Restructuring  (A)      —         64,228        —         64,228   Masks with magnets field safety notification expenses (A)      —         6,351        —         6,351   Astral field safety notification expenses (A)      —         —         —         7,911   Acquisition-related expenses  (A)      —         —         —         483                                       Non-GAAP income from operations    $ 435,924      $ 365,507      $ 842,309      $ 684,284                                       – More – RMD Second Quarter 2025 Earnings Press Release – January 30, 2025    Page 9 of 10   RESMED INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures (Unaudited; $ in thousands, except for per share amounts) The measures “non-GAAP net income” and “non-GAAP diluted earnings per share” are reconciled with GAAP net income and GAAP diluted earnings per share in the table below:        Three Months Ended     Six Months Ended        December 31, 2024     December 31, 2023     December 31, 2024     December 31, 2023   GAAP net income    $ 344,622     $ 208,800     $ 655,977     $ 428,222   Amortization of acquired intangibles—cost of sales  (A)      7,634       8,257       15,304       17,164   Amortization of acquired intangibles—operating expenses  (A)      11,047       11,577       22,451       24,056   Restructuring expenses  (A)      —        64,228       —        64,228   Masks with magnets field safety notification expenses (A)      —        6,351       —        6,351   Astral field safety notification expenses (A)      —        —        —        7,911   Acquisition-related expenses  (A)      —        —        —        483   Income tax effect on non-GAAP adjustments (A)      (4,962 )      (21,868 )      (10,033 )      (29,886 )                                   Non-GAAP net income  (A)    $ 358,341     $ 277,345     $ 683,699     $ 518,529                                    GAAP diluted shares outstanding      147,481       147,545       147,520       147,572   GAAP diluted earnings per share    $ 2.34     $ 1.42     $ 4.45     $ 2.90   Non-GAAP diluted earnings per share  (A)    $ 2.43     $ 1.88     $ 4.63     $ 3.51     (A) ResMed adjusts for the impact of the amortization of acquired intangibles, restructuring expenses, field safety notification expenses, acquisition related expenses and associated tax effects from their evaluation of ongoing operations, and believes that investors benefit from adjusting these items to facilitate a more meaningful evaluation of current operating performance. ResMed believes that non-GAAP diluted earnings per share is an additional measure of performance that investors can use to compare operating results between reporting periods. ResMed uses non-GAAP information internally in planning, forecasting, and evaluating the results of operations in the current period and in comparing it to past periods. ResMed believes this information provides investors better insight when evaluating ResMed’s performance from core operations and provides consistent financial reporting. The use of non-GAAP measures is intended to supplement, and not to replace, the presentation of net income and other GAAP measures. Like all non-GAAP measures, non-GAAP earnings are subject to inherent limitations because they do not include all the expenses that must be included under GAAP. – More – RMD Second Quarter 2025 Earnings Press Release – January 30, 2025    Page 10 of 10   RESMED INC. AND SUBSIDIARIES Revenue by Product and Region (Unaudited; $ in millions, except for per share amounts)        Three Months Ended        December 31, 2024 (A)      December 31, 2023 (A)      % Change     Constant Currency  (B)   U.S., Canada, and Latin America            Devices    $ 414.5      $ 371.3        12 %    Masks and other      334.5        298.0        12                                  Total U.S., Canada and Latin America    $ 748.9      $ 669.3        12     Combined Europe, Asia, and other markets            Devices    $ 254.8      $ 234.7        9 %      9 %  Masks and other      121.8        113.9        7       7                                      Total Combined Europe, Asia and other markets    $ 376.6      $ 348.5        8       8   Global revenue            Total Devices    $ 669.3      $ 606.0        10 %      11 %  Total Masks and other      456.3        411.9        11       11                                      Total Sleep and Breathing Health    $ 1,125.6      $ 1,017.9        11       11   Residential Care Software      156.5        144.9        8       8                                      Total    $ 1,282.1      $ 1,162.8        10       10                                           Six Months Ended        December 31, 2024 (A)      December 31, 2023 (A)      % Change     Constant Currency  (B)   U.S., Canada, and Latin America            Devices    $ 799.0      $ 717.2        11 %    Masks and other      657.3        590.5        11                                  Total U.S., Canada and Latin America    $ 1,456.3      $ 1,307.7        11     Combined Europe, Asia, and other markets            Devices    $ 496.1      $ 453.5        9 %      9 %  Masks and other      241.0        219.7        10       9                                      Total Combined Europe, Asia and other markets    $ 737.1      $ 673.2        9       9   Global revenue            Total Devices    $ 1,295.1      $ 1,170.7        11 %      10 %  Total Masks and other      898.2        810.2        11       11                                      Total Sleep and Breathing Health    $ 2,193.3      $ 1,980.9        11       11   Residential Care Software      313.3        284.2        10       10                                      Total    $ 2,506.6      $ 2,265.1        11       11                                        (A) Totals and subtotals may not add due to rounding. (B) In order to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency fluctuations, we provide certain financial information on a “constant currency basis,” which is in addition to the actual financial information presented. In order to calculate our constant currency information, we translate the current period financial information using the foreign currency exchange rates that were in effect during the previous comparable period. However, constant currency measures should not be considered in isolation or as an alternative to U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP. – End –