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Medtronic Management Discusses Q1 2013 Results - Earnings Call Transcript

First, a few logistical comments. Earlier this morning, we issued a press release containing our financial statements and a revenue-by-business summary.

Should also note that some of the statements made during this call may be considered forward-looking statements and that actual results might differ materially from those projected in any forward-looking statement. Additional information concerning factors that could cause actual results to differ is contained in our periodic reports filed with the SEC. Therefore, we do not undertake to update any forward-looking statement.

In addition, the reconciliations of any non-GAAP financial measures are available on the Investors' portion of our website at medtronic.com. Finally, unless we say otherwise, references to quarterly results, increasing or decreasing, are in comparison to the first quarter of fiscal year 2012, and all year-over-year revenue growth rates are given on a constant currency basis.

With that, I'm now pleased to turn the call over to Medtronic Chairman and Chief Executive Officer, Omar Ishrak.

Omar S. Ishrak

Good morning, and thank you, Jeff, and thank you to everyone for joining us today. This morning, we reported first quarter revenue of $4 billion, which represents growth of 5%. Q1 non-GAAP earnings of $883 million and diluted earnings per share of $0.85 increased 4% and 8%, respectively. It is worth pointing out that we delivered these results while covering $0.01 or $0.02 of negative EPS impact from bad debt of a Greek distributor and higher-than-expected tax expense. Gary will discuss these items later.

Our Q1 results represent another positive step toward our goal of delivering consistent and dependable growth. Two of our larger end markets, U.S. ICD and U.S. Spine, which have been under pressure, continue to show signs of stabilization. At the same time, our results reflect the positive operational impact of our strategies and market-leading technologies, both in developed and emerging markets. There is still a lot of work to be done, and we're just at the beginning of our efforts. But we're encouraged that our actions and improving execution are beginning to yield some results.

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