RMD
#Thanks, <UNK>.
Yes, <UNK>, got you loud and clear.
Yes.
Hi, <UNK>.
Yes, the Q4 came pretty much in the middle there.
It was 80 basis points that it contributed.
And then going forward, I think I would stick with that range around that 70 to 100 basis points.
<UNK>, I apologize.
I missed the first half of that question.
Yes I mean that plays ---+ I think we talked about that a little earlier on just because ---+ it does obviously a weakened euro or weaker pound or whatever it might be does impact us there.
If I looked at it just at least in the sort of near term into Q1, with that sort of strengthening and probably some weakening in some of the European currencies, I think (inaudible) probably at my estimates probably a 50 basis point headwind for us going into Q1.
You know it's just a question.
I guess that then would be ---+ currency stay where they are from there on in and you wouldn't see any further impact on a sequential basis.
We might see a little bit on a year-on-year basis.
But pretty volatile at the moment.
So it is hard to say on that.
But near term I would say it is about 50 basis points and, of course, that can change depending on what currencies do.
But at the moment I put it around that kind of number.
Yes, <UNK>, the interest rate for us would be around is a rough number around that 2% mark in terms of the finding cost on the interest if you use that.
At Brightree basically the acquisition is running close to the beginning of the quarter and I think we finished with kind of the net interest expense for the quarter around $2.4 million but it is probably a reasonable go-forward number going into FY 2017.
Sure.
Yes.
On the outlook there on gross margin, I guess as you know it is a lot of moving parts on that.
We have mentioned on FX if I look at certainly from a product mix perspective, it is definitely that sort of unfavorable mix and certainly moderated for us and it is far more consistent.
But to the extent <UNK> mentioned earlier in terms of new mask introduction and so on, you could probably expect that will be supported on a product mix front as we get through FY 2017.
We have done ---+ the team has been doing some really good work around the manufacturing procurement and so on.
We have seen some of that come through so I am quite positive on that.
And then you have got obviously the Brightree is now kind of built into that Q4 margin but that will continue to be supportive as well.
I mean you have the usual ASP declines and things like that coming through.
But overall in the mix, I think some of the big unfavorable items are certainly moderating and potentially could have as masks are introduced and so on that should be beneficial.
So overall we have got probably -a near term and currency headwind is a bit unhelpful.
But overall with that pretty comfortable with that 57% to 60% range and we are kind of more or less just about right in the midpoint of that range at the moment.
That is kind of how I would characterize the moving pieces.
Thanks for the question, <UNK>.
Thanks for the question, <UNK>.
That allows us to talk to our sort of third horizon portfolio if you like.
And, yes, we are absolutely dedicated to cardio respiratory care which is almost ---+ I am not sure it is a medical term out there in the formal literature.
It is something that we are really leading the market on and I define it as sleep disorder breathing amongst atrial fibrillation, sleep disorder breathing amongst heart failure with preserved ejection fraction and I would also include some play in hypertension, some other cardiovascular diseases.
But clearly the data from CAT-HF were incredibly exciting.
I don't know if you had a look at the detail that was presented there at ESC or the Heart Failure Congress at ESC but as you start to look at those clinical data and the level of clinical and statistical significance from a relatively small group of patients it certainly indicates to us ---+ and if you talk to <UNK> O'Connor who is the primary investigator that was formerly at Duke and is still the P.
I.
on the trial, clearly our investigators in all the hospitals and all the clinicians involved want to do follow on work in the heart failure with preserved ejection fraction space.
So it certainly gives me more excitement in the space.
The clinicians are very excited it, the nurses, the doctors, and we would like to continue to invest in the space and so we won't go into details about what an investment will look like, large multiyear clinical trials or a lot of market development work or some combination of the above.
But you will hear a lot more from us regarding that horizon through growth opportunity including the CAT-HF trial and follow-up in the coming quarters.
So the data are not strong enough for an indication for use or IFU to start marketing to cardiologists.
so no.
It would require a lot further work on that front.
What you might see is some work with ---+ you know we talked about the trial with Kaiser Permanente where we did some work on U Sleep.
We might work with payer providers who are looking at these clinical data saying ---+ that is exciting.
We would like to work on that ---+ in some sort of [IRB] or other controlled environment.
But, yes, dont want to go into sort of real details here on the final question of our Q&A about what that part of horizon three will look like at this point.
But what I will say, <UNK>, is you will hear more from us over the coming quarters as to what we are doing in the cardio respiratory care space.
But it is a pretty exciting date for CAT-HF.
I am glad you noticed that.
Thanks, <UNK>.
Maybe one last question today.
So I will hand to Rob <UNK>, our President and COO, to talk about EMEA and APAC.
Yes, <UNK>.
Thanks for that question.
As you saw, we reported pretty good results through there.
We are not going to break it out by country but we saw good continued take up of the AirSense platform.
We have had previously talked about the value proposition really came on very strong but it seemed a little more work to get the value proposition going with some of the other countries and we are very pleased with the progress going through there.
And so we are really seeing good take up across the board so it has really been a good result.
Thanks a lot for your question, <UNK>.
So in closing, I would like to thank the now more than 5,000 strong ResMed team from around the world to their commitment to changing the lives of millions of patients with every breath.
I'm really proud of what the team accomplished not just here in Q4 but throughout the whole fiscal 2016.
To establish ResMed really is the world's leading tech-driven medical device company.
Through the clinical research, new features that expand our products and solutions and our acquisitions, we are transforming how healthcare is delivered and shaping a new frontier in connected care in respiratory medicine.
We remain focused on our long-term goal of improving 20 million lives by 2020.
Thanks for your time and we will talk to you again in 90 days.
I will hand it back to <UNK>.
