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 - November 19, 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 November 19, 1996, the registrant issued a press release announcing
financial results for its fiscal second quarter ended November 1, 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: November 22, 1996 By: /s/ Robert L. Ryan
Robert L. Ryan, Senior Vice President and
Chief Financial Officer
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EXHIBIT INDEX
Exhibit No. Description
99 Press release dated November 19, 1996
Exhibit 99
[Medtronic Logo]
NEWS RELEASE
Medtronic, Inc. Contact:
7000 Central Avenue N.E.
Minneapolis, Minnesota 55432-3576
Telephone (612) 574-4000 Dale Beumer
612/574-3038
Christopher O'Connell
612/574-4971
Investor Relations
Dick Reid
612/574-3052
Public Relations
FOR IMMEDIATE RELEASE
MEDTRONIC REPORTS QUARTERLY EARNING UP 24.8 PERCENT;
PACING BUSINESSES AGAIN SCORE DOUBLE-DIGIT GAINS
MINNEAPOLIS, MN, November 19, 1996 -- Medtronic, Inc. (MDT: NYSE) announced
today that net earnings for the quarter ended November 1, 1996, increased 24.8
percent to $128.3 million as revenues totaled $598.2 million, a 15.0 percent
increase over revenues in the period a year earlier. Excluding effects of
foreign currency translation, revenues for the quarter grew 16.5 percent.
Earnings per share of $0.54 were 25.6 percent above the $0.43 per share
posted on earnings of $102.8 million in the quarter a year ago when revenues
were $520.0 million. It was the tenth consecutive quarter during which
Medtronic's net earnings rose more than 20 percent.
Earnings for the first half of fiscal 1997 were $255.8 million ($1.07 a
share), an increase of 27.8 percent over the $200.1 million ($0.85 a share)
recorded in the comparable period of fiscal 1996. First-half revenues were
$1.199 billion, an increase of 14.7 percent -- or 17.6 percent on a
constant-currency basis -- over the $1.045 billion of the comparable prior
period.
Bradycardia pacemakers and leads scored their tenth consecutive quarter of
double-digit percentage growth in revenue and unit sales. Revenues rose 16
percent in the United States as Medtronic Thera(R) and Thera "i-series"
pacemakers, combined with Medtronic CapSure(R) pacing leads, continued to
comprise the pacing systems of choice.
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Primarily on the strength of the Medtronic Micro Jewel(TM) implantable
defibrillator, tachyarrhythmia revenues rose 17 percent on a constant-currency
basis, led by a 20 percent increase in the highly competitive United States
medical marketplace. On November 8, 1996, the U.S. Food and Drug Administration
cleared the successor product, Medtronic Micro Jewel II, the world's smallest
and lightest defibrillator, for commercial marketing. Worldwide shipments began
in mid-November.
Medtronic's Neurological Business again recorded the most rapid revenue
growth, nearly 40 percent on a constant-currency basis. Sales were spurred by
increasing worldwide acceptance of the company's Intrathecal Baclofen Therapy
for the treatment of spasticity, by the broadening medical indications for use
of the Medtronic Itrel(R) 3 neurostimulation device, and by the contributions of
hydrocephalic shunts and other products from Medtronic PS Medical.
Revenues of the Vascular Business rose nearly 20 percent on a
constant-currency basis, driven by sales of the Medtronic Wiktor(R) and Wiktor-i
coronary stents in international markets and sales of the Medtronic Millenia(TM)
high-pressure balloon catheter in the last month of the quarter. On November 7,
Medtronic announced the European launch of the Medtronic beStent(TM), a unique
new coronary stent.
Cardiac Surgery sales grew modestly, led by prosthetic heart valves and by
cannulae from Medtronic DLP. Unit sales of heart valves increased 24 percent
worldwide. Sales of cardiopulmonary and blood management products were nearly
flat compared with last year's comparable quarter.
Medtronic, Inc., headquartered in Minneapolis, is the world's leading
medical technology company specializing in implantable and invasive therapies.
Its Internet address is http://www.medtronic.com.
(tabulation follows)
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<TABLE>
<CAPTION>
MEDTRONIC, INC.
CONSOLIDATED STATEMENT OF EARNINGS
(Unaudited)
Three months ended Six months ended
Nov. 1, Oct 27, Nov. 1, Oct. 27,
1996 1995 1996 1995
------------ ------------- --------------- ------------
(in thousands, except per share data)
<S> <C> <C> <C> <C>
Net sales $ 598,152 $ 519,980 $ 1,199,022 $ 1,044,923
Costs and expenses:
Cost of products sold 151,060 146,023 306,641 297,070
Research and development expense 68,257 55,946 133,928 109,720
Selling, general, and
administrative expense 188,964 166,245 380,674 341,438
Interest expense 2,588 2,243 4,611 4,008
Interest income (8,663) (8,166) (17,321) (14,575)
---------- ---------- --------- ---------
Total costs and expenses 402,206 362,291 808,533 737,661
---------- --------- --------- --------
Earnings before income taxes 195,946 157,689 390,489 307,262
Provision for income taxes 67,602 54,881 134,719 107,133
--------- --------- --------- --------
Net earnings $ 128,344 $ 102,808 $ 255,770 $ 200,129
========= ========= ========= =========
Weighted average shares outstanding 239,742 236,682 239,590 236,066
Earnings per share $ 0.54 $ 0.43 $ 1.07 $ 0.85
========= ======== ======== ========
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The FY96 amounts have been restated to reflect the May and June 1996
acquisitions of AneuRx, Inc. and InStent Inc. which were accounted for as
poolings of interests.
