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Medtronic reports record Q4 quarter revenue; profits still decline

8:02 am by | 0 Comments

As Omar Ishrak prepares to take the reins starting June 13 from outgoing chief executive Bill Hawkins, he will have to manage a company that announced Tuesday that it had a record quarter in terms of revenue in its fiscal fourth quarter but profits still declined.

In the quarter ended April 29, Fridley, Minnesota-based Medtronic garnered revenue of $4.3 billion, up slightly from $4.2 billion in the same period a year ago. But profits fell to $776 million, or 72 cents per diluted share from $954 million, or 86 cents per diluted share. For the year, the company saw revenue increase to $15.9 billion, up from $15.8 billion. Profits were fairly flat at $3.1 billion, or $2.86 cents per diluted share.

On a non-GAAP diluted basis, Medtronic’s fourth quarter earnings was 90 cents, falling short of analyst expectations by 2 cents.

Medtronic’s Cardiac Rhythm Disease Management Group saw revenues decline 7 percent in the fourth quarter to $1.315 billion declined, continuing to be hurt by the defibrillator business, which was down 16 percent to $760 million. However, Medtronic has high hopes for the Protecta ICD which recently won U.S. regulatory approval. The company also hopes that this division will benefit from a new MRI-compatible pacemaker – the Revo SureScan – which also was recently introduced to the domestic market.

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Other businesses performed as follows:

  • CardioVascular fourth quarter revenue of $879 million grew 16 percent.
  • Physio-Control fourth quarter revenue of $128 million decreased 4 percent.
  • Spinal fourth quarter revenue of $875 million decreased 1 percent
  • Neuromodulation fourth quarter revenue of $432 million increased 5 percent
  • Diabetes fourth quarter revenue of $368 million grew 11 percent
  • Surgical Technologies revenue surpassed $1 billion ($1.036 billion) for the year, the first time the business has achieved that milestone.  For the fourth quarter,the business had $298 million in sales, up 9 percent growth

In the fourth quarter revenue from international markets grew 12 percent to $1.958 billion of which emerging market revenue was $397 million, a 24 percent jump.

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Arundhati Parmar

By Arundhati Parmar

Arundhati Parmar is the Medical Devices Reporter at MedCity News. She has covered medical technology since 2008 and specialized in business journalism since 2001. Parmar has three degrees from three continents - a Bachelor of Arts in English from Jadavpur University, Kolkata, India; a Masters in English Literature from the University of Sydney, Australia and a Masters in Journalism from Northwestern University in Chicago. She has sworn never to enter a classroom again.
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