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Quarterly revenue was $311.6 million, up from $266.6 million last year, a 17% increase. Gross margin was about 54% on gross profit of $167 million, compared with management's view that it improved versus the prior-year first quarter. Operating income was $32.8 million, or 11% of revenue; net income was $27.5 million, and diluted EPS was about $0.37, up 22% year over year. Domestic sleep therapy revenue rose to $134.9 million from $113.9 million; total Sleep and Home Respiratory was $160.7 million, domestic hospital was $48.2 million, and international revenue was $102.7 million, up 21%. Management raised full-year revenue guidance from $1.36 billion to $1.38 billion and EPS guidance to $1.93-$1.98; projected net cash flow was raised from $120 million to $125 million.

John Miclot framed the quarter as proof that the company’s refreshed product line and international expansion are working, highlighting 20% global fleet growth and strong acceptance of Auto A-Flex, OptiLife, and new oxygen products. He emphasized continued investment in patient interfaces, new ventilators, broader sleep opportunities, and acquisitions like Apollo Light Systems, saying the company remains very optimistic about its core sleep, ventilation, and international businesses. His tone was confident and expansion-focused, with repeated references to long-term mid-teens revenue growth and 15% to 20% EPS growth.

Dan Bevevino walked through the quarter’s revenue mix and income statement, citing $311.6 million in revenue, $144.6 million in cost of sales, and roughly 54% gross margin. He noted G&A of $47.5 million, sales and marketing of $63.2 million, R&D of $18.1 million, and a $5.4 million in-process R&D charge tied to a $7.5 million equity investment, which pulled operating margin to 11%; without one-time items, operating income would have been closer to 13%. He also said cash in short-term investments rose to $322 million, net cash generation was $29 million excluding acquisitions, cash flow from operations was $38.5 million, and full-year net cash flow guidance was increased to $125 million.

Analysts focused on new patient interfaces, especially full-face masks, and management said a full-face mask is likely the first major opportunity while also working on nasal pillows and gel masks, with some launches expected in the second half. Questions also covered the new sleep-company investment and the Apollo acquisition; management said these broaden the addressable market into mild-to-moderate sleep apnea, snoring, insomnia, and circadian rhythm management, while Apollo adds retail and clinical channels. Analysts asked about market share, reimbursement, and the oximetry exit; management said U.S. and international sleep markets remain healthy and that the oximetry exit should reduce revenue by about $6 million to $8 million in the cardio-respiratory monitoring category, while possible home-diagnosis reimbursement would be a positive if implemented.