This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Medtronic Management Discusses Q1 2013 Results - Earnings Call Transcript

Let me start with the U.S. ICDs. We estimate the market declined approximately 4%, the best it has been in 6 quarters. While the market did see the normal impact of our Q4 to Q1 seasonality, we were pleased to see relative sequential stability. Our U.S. ICD business was down 3% in Q1, slightly better than the market. Pricing was down around 4%, which was consistent with the previous quarter. Our implant volumes were up 4%, but this growth was offset by hospitals reducing their level of bulk purchases, which are now at the lowest level in nearly 5 years. This reduction in bulk purchases is a trend we have seen over the last 4 quarters. And looking ahead, we would expect the stabilization in the U.S. market to continue.

Turning to U.S. Spine. We estimate that U.S. Core Spine market was flat and has now modestly improved over the past 3 quarters. Stabilization was also evident in our own results as our U.S. Core Spine business was flat this quarter. Our business seems to be turning the corner as our new products and procedures gain critical mass. Our continued focus on navigated spinal procedures and enabling technologies, such as POWEREASE, is attracting more surgeon interest and improving our Spine financial results.

Strong capital equipment sales in our Surgical Technologies business further demonstrate the importance of these technologies. And as a result, our U.S. Core Spine share is stable year-over-year, and we estimate we gained modest share sequentially in Q1. Although we are pleased with the progress we are making, it is still very early, and we have to build on this momentum and deliver consistent results over time.

The other part of our U.S. Spine business, BMP, declined 20% in Q1. As you know, questions were raised at -- last year about INFUSE, and to better understand the facts, we requested Yale University to perform an unprecedented systematic analysis of all the available data. While the timing is controlled by Yale, we are expecting the result to be published in the coming months.

3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,654.27 -226.09 -1.34%
S&P 500 1,941.75 -28.32 -1.44%
NASDAQ 4,389.7050 -73.1970 -1.64%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs