Medtronic, Inc. announced record revenues for its first quarter of fiscal year 2006 ended July 29, 2005. Medtronic recorded revenues of U.S. $2.7 billion, a 15 percent increase over the $2.3 billion recorded in the first quarter of fiscal year 2005. Reflecting the weaker dollar, foreign currency translation had a positive effect on first quarter revenues of $26 million compared to the prior year first quarter. Before purchased in-process research and development (IPR&D) charges, first quarter net earnings of $615.9 million, or $0.50 per diluted share, increased 16 percent over net earnings of $529.7 million and $0.43 per diluted share recorded in the same period last year. After IPR&D charges, first quarter actual earnings were $320.6 million or $0.26 per diluted share.
In the quarter, Medtronic recorded pre-tax, IPR&D charges totaling $363.8 million related to the acquisition of Transneuronix, Inc.; a patent cross-licensing agreement with NeuroPace, Inc.; and the purchase of intellectual property from Gary K. Michelson, M.D. and Karlin Technologies, Inc. Cardiac Rhythm Management quarterly revenues were $1.268 billion, representing growth of 16 percent over the same period last fiscal year.
ICD revenues were $718 million in the quarter, a 30 percent increase over the same period last fiscal year. This quarter represents the first time in Medtronic's recent history where ICD revenues grew sequentially from a fourth quarter to a first quarter. The overall worldwide ICD market remains strong, growing an estimated 26 percent over the same period last year. ICD revenue gains underscore the strength of Medtronic's ICD product line and sales and support teams. Market share gains in the quarter also reflect, in part, the changing competitive dynamics in the marketplace. Quarterly pacing revenues were $446 million in the quarter, down 1 percent over the same period last year. This reflects a continuing trend by physicians to utilize pacing and ICD combination devices (CRT-Ds) in lieu of pacemakers. Medtronic's
Emergency Response Systems business reported a 10 percent revenue increase over the same period last fiscal year. Vascular revenues of $205 million for the quarter represented a 5 percent growth over the same period last fiscal year. Cardiac Surgery revenues of $166 million in the quarter grew 3 percent over the same period last fiscal year. Spinal / Ear, Nose and Throat (ENT) / Navigation revenues for the quarter were $589 million, representing 22 percent growth over the same period last fiscal year. Spinal revenues of $504 million increased 24 percent over the same period last fiscal year and continued a track record of strong growth. Neurological and Diabetes quarterly revenues of $463 million increased 13 percent over the same quarter one year ago. Total Neurological revenues were $290 million in the quarter, a 10 percent growth over the same quarter last year. Diabetes revenues were $174 million, a 19 percent increase over the same quarter last fiscal year.
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