Sleep treatment specialist ResMed Inc. (CHESS) (ASX: RMD) today posted adjusted net income of US$97.5 million on revenues of US$454.5 million for the quarter ending December 31, 2015.

The revenue was up 13% on a constant currency basis, while the net income was up 5% when adjusting for one offs over the prior corresponding period.

Shares are up 5.4% to $8.26 this morning as the market applauds the strong double-digit revenue growth that is the result of new products coming to the market over the course of 2015. The company’s core strength is that it sells market-leading products in an area of medical practice (sleep apnea treatment) that is growing strongly due to the large unmet clinical needs and eye-wateringly large pool of potential patients globally.

The US was the standout performer with revenues of US$269.5 million, up an impressive 17% over the prior year’s quarter, while Europe the Middle East and Asia revenues were US$185 million, up 7% on a constant currency basis.

The one black mark for the business was the falling gross margin of 58.1% on an adjusted basis, which was blamed on an unfavourable geographic and product mix.

Falling margins are generally a bad sign for global healthcare businesses, however, the strong revenue growth and potential of the business to reverse the margin decline mean the future remains bright for this global healthcare operator.

Even more so as ResMed retains a mountain of cash on its balance sheet for research and development, while its capital management initiatives resulted in more than US$40 million of shares being bought back during the quarter.

Alongside CSL Limited (ASX: CSL), Ramsay Health Care Limited (ASX: RHC) and Cochlear Ltd (ASX: COH), ResMed looks to be one of the strongest businesses on the local bourse for long-term oriented investors.

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Motley Fool contributor Tom Richardson owns shares of ResMed Inc..

You can find Tom on Twitter @tommyr345

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.