SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities and Exchange Act of 1934
Date of Report - February 13, 1996
MEDTRONIC, INC.
(Exact name of registrant as specified in its charter)
Minnesota 1-7707 41-0793183
(State or other Jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
7000 Central Avenue N.E.
Minneapolis, Minnesota 55432-3576
(Address of principal executive offices and zip code)
(612) 574-4000
(Registrant's telephone number, including area code)
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ITEM 5. Other Events
On February 13, 1996, the registrant issued a press release announcing
its financial results for the three and nine month periods ended
January 31, 1996. The full text of the press release is set forth in
Exhibit 99 attached hereto and is incorporated in this report as if
fully set forth herein.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MEDTRONIC, INC.
(Registrant)
Date: February 14, 1996 By: /s/ Robert L. Ryan
Robert L. Ryan
Senior Vice President and Chief
Financial Officer
EXHIBIT INDEX
Exhibit No. Description
99 Press release dated February 13, 1996
[Medtronic logo] NEWS RELEASE
Medtronic, Inc. Contact:
7000 Central Avenue N.E. Dale Beumer
Minneapolis, Minnesota 55432-3576 Investor Relations
Telephone: (612) 574-4000 612-574-3038
Dick Reid
Public Relations
612-574-3052
FOR IMMEDIATE RELEASE
MEDTRONIC REPORTS NET INCOME ROSE 52.8 PERCENT
ON RECORD QUARTERLY REVENUES OF $529.2 MILLION
MINNEAPOLIS, MN, February 13, 1996 -- Led by continuing market-share
gains in its Bradycardia Pacing and Tachyarrhythmia Management businesses,
Medtronic, Inc. (NYSE: MDT) today reported that third-quarter net earnings rose
52.8 percent to $109.0 million, or $0.47 per share, from the $71.4 million
($0.31 per share) earned in fiscal 1995.
Quarterly revenues were $529.2 million, up 27.9 percent from the $413.7
million recorded last year. Excluding effects of foreign currency translation,
revenues rose 26.2 percent, the company's largest single quarterly revenue
increase in nearly eight years. It was the seventh consecutive quarter in which
revenues and net earnings increased more than 20 percent.
For nine months, Medtronic net earnings rose 51.5 percent to total
$312.4 million on revenues of $1.6 billion, compared with $206.2 million earned
on revenues of $1.2 billion in the first three quarters a year ago.
President and Chief Executive Officer William W. George said the
quarter "strongly validates Medtronic's major financial commitment to research
and development. Two recent products of that strategy - the Thera(R)
'i-series'(TM) pacemakers and the Jewel(R) defibrillator with Active Can(TM)
technology -- drove market-share gains from competitors worldwide."
George noted that innovative successors to these products -- a new
family of advanced pacemakers and the Micro Jewel(TM) implantable defibrillator
- -- have entered clinical evaluation in Europe. He also said the growing use of
Medtronic pacemaker and ablation products for treatment of atrial fibrillation
through what is known as an "ablate and pace" procedure was accelerating the
sales growth of the Pacing business.
Medtronic tachyarrhythmia product sales more than doubled over the
comparable quarter a year ago. Sales of bradycardia pacing products continued
their sales growth rate in the high teens, primarily attributable to worldwide
medical acceptance of Thera and Thera-i pacemakers.
Medtronic recorded very strong growth in its Interventional Vascular
and Neurological businesses. Led by the Wiktor(R) coronary stent in Europe and
Japan, interventional vascular sales increased more than 45 percent.
Neurological revenues grew 50 percent, led by new stimulation products and
contributions from the recent acquisitions of PS Medical, Inc., and Micro
Interventional Systems, Inc. Revenues from the Cardiac Surgery business were
flat with those of the prior year.
George said Medtronic expects to continue its strong sales and earnings
momentum for the year ending April 30, although the strengthening of U.S.
currency on foreign exchange markets would likely result in unfavorable currency
translation in the fourth quarter.
Medtronic, Inc., headquartered in Minneapolis, is the world's leading
medical technology company. Its Internet address is http://www.medtronic.com.
(tabulation follows)
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MEDTRONIC, INC.
CONSOLIDATED STATEMENT OF EARNINGS
(Unaudited)
<TABLE>
<CAPTION>
Three months ended Nine months ended
January 26, January 27, January 26, January 27,
1996 1995 1996 1995
(in thousands, except per share data)
<S> <C> <C> <C> <C>
Net sales $ 529,203 $ 413,723 $ 1,573,011 $ 1,225,670
Costs and expenses:
Cost of products sold 143,194 129,186 439,837 383,345
Research and development
expense 61,203 46,756 167,870 135,891
Selling, general, and
administrative expense 162,977 132,181 502,919 398,476
Interest expense 1,739 2,049 5,721 6,765
Interest income (6,368) (3,780) (20,283) (8,850)
----------- ----------- ----------- -----------
Total costs and expenses 362,745 306,392 1,096,064 915,627
----------- ----------- ----------- -----------
Earnings before income taxes 166,458 107,331 476,947 310,043
Provision for income taxes 57,428 35,955 164,547 103,864
----------- ----------- ----------- -----------
Net earnings $ 109,030 $ 71,376 $ 312,400 $ 206,179
=========== =========== =========== ===========
Weighted average shares 233,592 230,096 232,835 230,346
outstanding
Net earnings per share $ 0.47 $ 0.31 $ 1.34 $ 0.90
=========== =========== =========== ===========
</TABLE>
The first two quarters of FY96 have been restated to reflect the November 1995
acquisition of Micro Interventional Systems, Inc. which was accounted for as a
pooling of interests. Prior years activity has not been restated as the impact
of the business combination in prior years is not considered material and
restatement is therefore not required.
