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 18, 1997
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 18, 1997, the registrant issued a press release announcing
financial results for its fiscal third quarter ended January 31, 1997.
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 19, 1997 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 February 18, 1997
[Medtronic Logo] Christopher O'Connell
612/514-4917
Medtronic, Inc. Dale Beumer
7000 Central Avenue, N.E. 612/514-3038
Minneapolis, Minnesota 55432-3576 Investor Relations
Telephone (612) 574-4000
Dick Reid
Public Relations
612/514-3052
F O R I M M E D I A T E R E L E A S E
MEDTRONIC REPORTS QUARTERLY EARNINGS UP 20.8 PCT.
AS DEFIBRILLATORS LEAD SALES GAINS
MINNEAPOLIS, MN, February 18, 1997 -- Medtronic, Inc. (NYSE: MDT), today
reported third-quarter net earnings of $128.7 million, or $0.54 a share, an
increase of 20.8 percent over earnings in the comparable period a year ago.
Revenues were $598.7 million, compared with $530.1 million, up 15.0 percent
on a constant-currency basis or 13.0 percent after recognizing negative effects
of the strengthening dollar in translation of foreign currency-based revenues.
For nine months of fiscal 1997, net earnings increased 25.4 percent as
revenues rose 16.7 percent excluding the negative effects of foreign exchange
translation. Earnings were $384.5 million, or $1.60 a share, on revenues of $1.8
billion compared with $306.7 million and $1.29 a share on revenues of $1.6
billion for nine months of fiscal 1996.
Chairman and Chief Executive Officer William W. George said, "Medtronic
recorded its 11th consecutive quarter of earnings growth of more than 20 percent
year over year. This growth comes on top of the 49 percent increase in net
earnings recorded in the third quarter last year, thanks to strong contributions
from the Tachyarrhythmia and Neurological businesses this year."
Medtronic's Pacing businesses reported double-digit quarterly sales
increases as revenue from the Tachyarrhythmia Management Business increased to
more than $100 million. Medtronic's Micro Jewel(TM) II implantable
defibrillator, introduced worldwide in late November, drove unit sales to a 26
percent increase as it became the world's most frequently implanted
defibrillator. Thera(R) i-Series(TM) pacemakers highlighted unit sales increases
of more than 8 percent in the Bradycardia Pacing Business while the newer
Medtronic.Kappa(TM) 400 pacemaker systems were introduced in Europe at the end
of the quarter.
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Sales of Neurological and diversified businesses increased by 58 percent.
Especially strong contributions came from the Medtronic SynchroMed(R) Drug
Infusion System used for intrathecal baclofen therapy in treatment of spasticity
related to both spinal and cerebral conditions. Medtronic PS Medical and
Medtronic Synectics also scored excellent sales increases. A new, cost-effective
therapy for cancer pain, the Medtronic AlgoMed(TM) implantable drug infusion
system, was launched in European markets during the quarter.
Coronary stents led sales increases for Medtronic Vascular businesses with
the Medtronic Wiktor(R) product performing well in Japanese markets and both the
Wiktor(R)-i and Medtronic beStent(TM) devices gaining sales momentum in Europe.
Cardiac Surgery businesses were highlighted by double-digit sales growth in
heart valves and surgical cannulae. A new Medtronic blood oxygenator, the Maxima
Forte(TM), joined the cardiopulmonary product line and began moving into the
world's surgical suites in January.
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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MEDTRONIC, INC.
CONSOLIDATED STATEMENT OF EARNINGS
(Unaudited)
<TABLE>
<CAPTION>
Three months ended Nine months ended
--------------------------------- ----------------------------
Jan. 31 Jan. 26 Jan. 31 Jan. 26
1997 1996 1997 1996
------------ ------------- ------------- -------------
(in thousands, except per share data)
<S> <C> <C> <C> <C>
Net sales $ 598,749 $ 530,070 $ 1,797,771 $ 1,574,993
Costs and expenses:
Cost of products sold 152,314 143,640 458,955 440,710
Research and development expense 69,531 63,318 203,459 173,038
Selling, general, and
administrative expense 188,517 164,248 569,191 505,686
Interest expense 1,536 1,842 6,148 5,850
Interest income (9,650) (7,031) (26,971) (21,606)
------------ ------------- ------------- -------------
Total costs and expenses 402,248 366,017 1,210,782 1,103,678
------------ ------------- ------------- -------------
Earnings before income taxes 196,501 164,053 586,989 471,315
Provision for income taxes 67,793 57,491 202,511 164,624
------------ ------------- ------------- -------------
Net earnings $ 128,708 $ 106,562 $ 384,478 $ 306,691
============ ============= ============= =============
Weighted average shares outstanding 239,957 238,469 239,703 236,903
Earnings per share $ 0.54 $ 0.45 $ 1.60 $ 1.29
============ ============= ============= =============
</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.
