Fourth quarter and full year 2011 Vascular Access sales increased 28% and 19%, respectively, over the prior year periods. These increases were primarily attributable to growth in the underlying market and market share gains. Additionally, Vascular Access revenue for the quarter included approximately $2 million ($4 million full year) from sales of medical devices that were developed under the Greatbatch name.

In comparison to the prior year, Orthopaedic product line sales increased 3% and 18%, respectively, for the fourth quarter and full year periods. Full year 2011 Orthopaedic sales included the favorable impact of approximately $8 million from foreign currency exchange rate fluctuations. Foreign currency exchange rate fluctuations did not have a material impact on fourth quarter revenue. On a constant currency basis, Orthopaedic sales for 2011 were up 11% over the prior year period. These increases were across substantially all of our product lines and were a direct result of the investments made over the last several years to expand capabilities, shorten lead times, and improve quality and on-time delivery.


Fourth quarter 2011 sales for the Electrochem business segment increased 44% in comparison to the prior year and were up 9% for the full year. Fourth quarter 2011 sales for Electrochem included $2.5 million of additional revenue from the Micro Power acquisition. Excluding the additional revenue provided by Micro Power, sales for the 2011 fourth quarter and full year increased 27% and 6%, respectively. During 2011, Electrochem revenue varied from quarter to quarter due to the timing of various customer inventory pulls. For the full year, the increase in Electrochem revenue was a result of an increased investment in sales and marketing, which resulted in market share gains and several new customer contracts, as well as continued strength in the energy markets.

Financial GuidanceFor 2012, Greatbatch estimates annual revenue growth rates for its product lines as follows:
CRM & Neuromodulation:     -3% to 0%
Vascular Access: 10% to 20%
Orthopaedic: 5% to 15%
Electrochem (1): Approximately 5%

(1) Percentage increase assuming full year pro forma Micro Power revenue in 2011.

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