SUBSCRIBE Blog with us: BLOGbiotech

Breaking News

• Email
• Print
• Share
• More News

Aug 21 2007, 4:01 PM EST

Medtronic Reports 16 Percent First Quarter Earnings Per Share Growth

News source: Business Wire

Medtronic, Inc. (NYSE:MDT) today announced financial results for its first quarter of fiscal year 2008, which ended July 27, 2007.

Medtronic recorded first quarter revenue of $3.127 billion, an 8 percent increase over the $2.897 billion reported in the first quarter of fiscal year 2007. As reported, net earnings for the first quarter of fiscal year 2008 were $675 million, or $0.59 per diluted share, an increase of 13 percent and 16 percent, respectively, over the same period in the prior year. Currency translation had a positive impact of $49 million to revenue in the first quarter. Adjusting for restructuring, certain litigation and purchased in process research and development (IPR&D) charges detailed in the attached table, non-GAAP net earnings and diluted earnings per share were $711 million and $0.62 per share, an increase of 11 percent and 13 percent, respectively.

"Our quarterly performance reflected the positive impact of several new product launches, strong international growth, the benefits of Medtronic's diverse business portfolio, and successful efforts to obtain P&L leverage," said Art Collins, Medtronic chairman and chief executive officer.

Non-U.S. revenue of $1.179 billion grew 16 percent, driven by double digit revenue growth in all major geographic areas. For the quarter, 38 percent of Medtronic's revenue was from outside the U.S.

Unless otherwise noted, all comparisons made in this news release are on an "as reported basis," not on a constant currency basis, and references to quarterly figures increasing or decreasing are in comparison to the first quarter of fiscal year 2007.

Cardiac Rhythm Disease Management

Cardiac Rhythm Disease Management (CRDM) revenue of $1.235 billion grew 7 percent. Revenue from implantable cardiac defibrillators (ICDs) was $726 million, up 8 percent. Worldwide pacing revenue of $494 million in the quarter increased 7 percent. Outside the U.S., CRDM revenue grew 16 percent, driven by 25 percent growth of the ICD and CRT-D product lines.

Spinal

Spinal revenue of $644 million grew 12 percent. Worldwide Spinal revenue was driven by sales of INFUSE(R) Bone Graft in the Biologics product line, CRESCENT(TM) Vertebral Body Spacers and the LEGACY(R) family of products, which includes a new PEEK Rod System. Also, at the close of the quarter, Medtronic received FDA approval for the Prestige(R) Cervical Disc System which will contribute to revenue in the second quarter.

CardioVascular

CardioVascular revenue of $486 million grew 8 percent, driven by Coronary Stents and Endovascular. Coronary Stent revenue of $152 million grew 27 percent and Endovascular revenue grew 13 percent.

Neuromodulation

Neuromodulation revenue of $289 million grew 5 percent. The segment's largest product lines, which include implantable neurostimulation and drug-delivery systems used in the treatment of chronic pain, movement disorders and spasticity, generated first quarter revenue of $237 million, increasing 5 percent. Revenue from the InterStim(R) neurostimulators for the treatment of overactive bladder grew 26 percent.

Diabetes

Diabetes revenue of $241 million grew 23 percent, reflecting continued strong market acceptance of Paradigm(R) insulin pumps and continuous glucose monitoring products.

Ear, Nose and Throat (ENT)

ENT revenue of $144 million grew 13 percent, driven by power systems and monitoring disposables along with further global penetration of the product portfolio.

Physio-Control

Physio-Control revenue of $60 million was down 41 percent, due to the January 2007 voluntary suspension of U.S. product shipments to address quality system issues.

In closing Collins said, "For more than 15 years I ha

• Email
• Print
• Share
• More News

CAREER CENTER

WEBINARS

PODCASTS

MOST POPULAR