Cardiovascular sales boost Medtronic Q1 income
Medtronic reported that sales of spinal and heart devices helped boost overall profit and revenue during its first quarter of fiscal year of 2009, which ended July 25.

The company posted net earnings of $747 million in the 2009 first quarter, an 11 percent increase compared to the earnings of $675 for the same quarter last year, according to its reconciliation of consolidated generally accepted accounting principles (GAAP) to non-GAAP earnings.

The Minneapolis-based Medtronic recorded first quarter revenue of $3.71 billion, a 19 percent increase on $3.13 billion reported in the first quarter of fiscal year 2008.

Revenue in the cardiovascular and surgical technologies product lines grew more than 15 percent in the quarter, according to the company. Revenue outside the U.S. grew 24 percent to of $1.45 billion, led by its diabetes, spinal and surgical technologies businesses. Medtronic noted that revenue outside the U.S. accounted for 39 percent of its revenue in the first quarter.

Cardiovascular revenue grew 30 percent to $631 million, driven by its drug-eluting stent (DES) and endovascular product lines, according to Medtronic. Coronary vascular revenue grew 41 percent globally to $349 million, with 173 percent growth in the U.S., driven by sales of Endeavor DES in the U.S. The company said that revenue from endovascular products increased 26 percent on the strength of thoracic products in markets outside the U.S. and two new product launches in the U.S.

Cardiac rhythm disease management (CRDM) revenue grew 6 percent to $1.3 billion, compared to year-ago sales, the company said. Revenue from implantable cardioverter defibrillators (ICDs) was $764 million, up more than 5 percent. Pacing revenue of $526 million in the quarter increased 7 percent. Outside the U.S., Medtronic said that CRDM revenue grew 19 percent, driven by 23 percent growth of the ICD product lines.

Medtronic subsidiary, Physio-Control, reported $94 million in revenue, based on the sale of external defibrillators and accessories. Physio-Control also said it is working with the FDA to resolve outstanding quality issues in an effort to resume unrestricted product distribution.

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