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 - August 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)
<PAGE>
ITEM 5. Other Events
On August 19, 1996, the registrant issued a press release announcing
financial results for its fiscal first quarter ended August 2, 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: August 20, 1996 By: /s/ Robert L. Ryan
Robert L. Ryan, Senior
Vice President and Chief
Financial Officer
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
99 Press release dated August 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
Investor Relations
612/574-3038
Dick Reid
Public Relations
612/574-3052
FOR IMMEDIATE RELEASE
RECORD QUARTERLY REVENUES OF $600.9 MILLION
DRIVE MEDTRONIC NET EARNINGS INCREASE OF 30.9 PERCENT
MINNEAPOLIS, MN, August 19, 1996 -- Led by solid contributions from all
businesses and geographic areas, first-quarter revenues of Medtronic, Inc.
(NYSE: MDT), reached $600.9 million, an increase of 18.7 percent on a
constant-currency basis. Net earnings were $127.4 million, or $0.53 a share,
30.9 percent and 29.3 percent, respectively, above figures of a year earlier.
Quarterly earnings last year were $97.3 million, or $0.41 a share. Unfavorable
foreign currency translation of $22.0 million reduced revenue growth to 14.5
percent above the $524.9 million reported a year ago.
(Prior-year financial results are restated to reflect results from
AneuRx, Inc., and InStent Inc., which were acquired in May and June,
respectively.)
William W. George, president and chief executive officer, noted that
revenues from outside the United States increased more than 20 percent, and that
productivity gains also played a significant role in Medtronic's ninth
consecutive quarter of earnings growth exceeding revenue growth. "Medtronic's
Pacing, Neurological, and Vascular businesses showed excellent increases. It is
especially gratifying to see dramatic revenue gains from newer product lines and
emerging markets," he said.
<PAGE>
Medtronic's Pacing Business was led by its bradycardia pacemaker
product lines, which scored a ninth consecutive quarter of double-digit growth
in units and revenue. Bradycardia pacing maintained its strong double-digit
percentage growth momentum as its Thera(R) and Thera(R) i series(TM) devices
continued to capture worldwide market share. Pacemakers of the new
Medtronic.Kappa(TM) generation, offering yet higher levels of therapeutic
automaticity and physician efficiency, entered clinical evaluation in Europe
shortly after the quarter ended.
Following clearance for marketing by the U.S. Food and Drug
Administration of the Micro Jewel(TM) Model 7221 device, sales of implantable
defibrillators increased dramatically over sales in the comparable period last
year as physicians opted for the diagnostic capabilities and small size of the
new device.
The Vascular Business reported revenue gains in excess of 40 percent on
a constant-currency basis, largely on the strength of Wiktor(R) coronary stent
sales in Europe and Japan. Also contributing to Vascular revenue growth were
strong sales gains in ablation systems and devices for interventional
neuroradiology. Solid contributions from surgical cannulae and tissue heart
valves led the Cardiac Surgery business to high single-digit growth.
Neurological Business sales were up more than 50 percent. A strong
contributing factor was rapid medical acceptance in Europe of neurostimulation
for control of essential tremor or tremor associated with Parkinson's disease.
This therapy, employing leads implanted in the thalamus and stimulation by an
implanted device, continues in U.S. clinical evaluation. Another significant new
therapy, baclofen intrathecal delivered by the SynchroMed(R) drug infusion
system for spasticity of cerebral origin, received FDA clearance during the
quarter. Medtronic PS Medical, acquired in November, 1995, also contributed to
the strong growth.
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)
<PAGE>
MEDTRONIC, INC.
CONSOLIDATED STATEMENT OF EARNINGS
(Unaudited)
<TABLE>
<CAPTION>
Three months ended
August 2, July 28,
1996 1995
(in thousands, except per share data)
<S> <C> <C>
Net sales $ 600,870 $ 524,943
Costs and expenses:
Cost of products sold 155,581 151,047
Research and development expense 65,671 53,774
Selling, general, and administrative expense 191,710 175,193
Interest expense 2,023 1,765
Interest income (8,658) (6,409)
---------- ----------
Total costs and expenses 406,327 375,370
--------- ---------
Earnings before income taxes 194,543 149,573
Provision for income taxes 67,117 52,252
--------- ---------
Net earnings $ 127,426 $ 97,321
========= =========
Weighted average shares outstanding 239,429 235,273
Earnings per share $ 0.53 $ 0.41
========== ==========
</TABLE>
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.
