Medtronic has released its financial results for the fiscal third quarter 2008, which ended Jan. 25, 2008.
Medtronic recorded third quarter revenue of $3.4 billion, a 12 percent increase over the $3.05 billion reported in the third quarter of fiscal year 2007. Non-U.S. revenue of $1.307 billion grew 20 percent, including a $117 million benefit from currency translation, as well as accounted for 38 percent of Medtronic’s revenue.
Net income for the quarter was $77 million, compared to $710 million in the year-ago quarter. The Minneapolis-based company attributed the plunge in third-quarter earnings to special charges relating to the impairment of intangible assets, litigation charges and in-process research and development (IPR &D) charges primarily related to the acquisition of Kyphon, a spinal medical device company.
The company's ICD sales in the recent quarter reached $726 million, a 2 percent climb from a year ago. About $20 million in sales in the recent quarter came from recall-related benefits, including filling ICD lead backorders, said the company.
In early February, Medtronic received FDA approval to market the RestoreUltra neurostimulation system for the treatment of chronic back and leg pain. RestoreUltra is the smallest and thinnest 16 electrode neurostimulator on the market, according to Medtronic.
Coronary stent revenue of $157 million grew 6 percent and Endovascular revenue grew 9 percent, led by strong sales of thoracic products. FDA approval for the Endeavor drug-eluting coronary stent system was received in early February, and Endeavor is now commercially available in the United States, according to Medtronic.
“We expect to see strong growth in the fourth quarter with the launch of Endeavor in the United States, the introduction of RestoreUltra by our Neuromodulation business, and the addition of Kyphon to our spinal platform. Combined with Medtronic’s continued strong track record outside the U.S. and our broad and diversified portfolio, we remain optimistic about our long-term growth prospects,” said Bill Hawkins, CEO, Medtronic.