Fisher & Paykel Healthcare 2003 third quarter SEC NZ$ filing


Fisher & Paykel Healthcare Corporation Limited (NZSE:FPH. ASX:FPH, NASDAQ:FPHC)

Fisher & Paykel Healthcare Corporation Limited today announced a record third quarter, with profit from continuing operations of NZ$26.2 million for the three months ended 31 December 2002. Revenue for the three months grew 17% in US dollar terms, compared with the prior comparable quarter in 2001.  Forecasts for its fourth quarter are for continued strong US dollar revenue growth.

The third quarter result compares with NZ$14.1 million profit in the comparable three month period and the result includes an unrealised foreign exchange currency gain of NZ$13.9 million after-tax.

The  company’s  results  were  driven  by  particularly  strong  growth  in  sales  of  products  for  the treatment of obstructive sleep apnea (OSA), with OSA revenue increasing by 36%, in US dollar terms, in the quarter ended 31 December 2002. This contributed to 20% revenue growth overall in the company’s core product range. In US dollar terms, respiratory humidification revenue increased by 9% and neonatal and patient warming revenue increased by 17% over the prior comparable quarter.

“The  performance  of the  OSA  product  group  was  again  very  encouraging  with  strong  growth achieved in both the US and international markets by integrated flow generator-humidifiers, CPAP humidifiers and masks compared with the same quarter a year ago”, said Managing Director and Chief Executive Officer, Michael Daniell.

In the respiratory humidification product group, the company’s adult and neonatal breathing circuits achieved strong growth and continued to gain market share.

“We’re  also  pleased  with  the initial  acceptance  of our infant  CPAP  system  which  is used  for breathing support of new-born babies and which we believe can provide a significant improvement in neonatal respiratory care.”

Mr Daniell noted the company’s NZ$13.9 million after-tax foreign exchange currency gain for the three months.   The company currently has in place a mix of foreign exchange contracts and call options,  up  to  four  years  forward,  with  a  face  value  of  approximately  NZ$460  million.    The instruments are at an average exchange rate of approximately 0.453 US dollars and 0.465 Euros to the New Zealand dollar. As previously announced, along with its decision to de-list from Nasdaq, the company has changed its treatment of foreign exchange instruments and since 6 November 2002 has treated them as hedges under NZ GAAP for accounting purposes.

“For the fourth quarter  we expect  to see a continuation  of strong  revenue  growth  in our core products and we are now on target to achieve total revenue for the year of approximately US$101 million against US$89 million for the prior year”, said Mr. Daniell.

Financial Statements
Attached  to this news  release  are condensed  financial  statements  in both NZ dollars  and US

About Fisher & Paykel Healthcare
Fisher  &  Paykel  Healthcare  is  a  leading  designer,  manufacturer   and  marketer  of  heated humidification products and systems for use in respiratory care and the treatment of obstructive sleep apnea.   It also offers an innovative  range of patient warming devices and neonatal care products.  The Company’s products are sold in over 90 countries worldwide.

Following its reorganisation in November 2001 the Company reports the results of the healthcare business, its only remaining business, as continuing operations, and the results of the appliances and finance businesses that it no longer operates as discontinued operations.

Fiscal 2003 Third Quarter and Nine Months Earnings Conference Call
Fisher & Paykel Healthcare will host a conference call to review its results for the quarter ended 31
December 2002 and to discuss the outlook for the full year.  The conference call will be broadcast simultaneously over the Internet.

To listen to the webcast, to be held at 9.30am NZT, 7.30am AEST on Friday 14 February (3.30pm USEST, Thursday 13 February), access the company’s website at    Please allow extra time prior to the webcast to visit the site and download the streaming media software required.    An online  archive  of the event  will be available  approximately  two hours  after  the webcast and will remain onsite for approximately two weeks.

For those people unable to access the call via the Internet, an audio replay will be available from approximately 11.30am NZT for two weeks.  To listen to the replay you should dial +61 2 8524 1009 international or 02 8524 1009 within Australia.  The passcode to access the recording is 124996#.

For further information contact Michael Daniell CEO on +64 9 574 0161 or Tony Barclay CFO on
+64 9 574 0119 at Fisher & Paykel Healthcare Corporation Limited or visit the company’s website at

Forward Looking Statements
This document may contain forward-looking statements that represent the company’s present expectations  or beliefs concerning  future events. The company  cautions  that such statements involve known or unknown risks, uncertainties and other factors that may cause its actual results or performance to be materially different from any future results or performance expressed or implied by   these   forward-looking   statements.   These   factors   include:   foreign   exchange   currency fluctuations, because its revenues, costs and liabilities are denominated in multiple currencies; competitive factors, because the markets for its products are highly competitive; a change in the technology relating to its products; fluctuations in its future financial results; its ability to protect its proprietary technologies by successfully enforcing its intellectual property rights, and not infringing the patents or proprietary rights of other parties; the ability of patients to be reimbursed by third- party payors; product recalls; and operational, political and other business risks arising from the international scope of its operations. Additional discussion of these and other factors which may cause the company’s results or performance to differ materially from those expressed or implied in the forward-looking statements is contained in the company’s filings with the US Securities and Exchange Commission, included under the heading “Risk Factors” in its Annual Report on form 20F filed on 1 July 2002. The company  does not undertake  to publicly  update  or revise any forward-looking statements.