ST. PAUL, Minn.--(BUSINESS WIRE)--St. Jude Medical, Inc. (NYSE: STJ - News) today reported sales and net earnings for the first quarter ended April 4, 2009.
First Quarter Sales
The Company reported net sales of $1.134 billion in the first quarter of 2009, an increase of 12 percent compared with the $1.011 billion in the first quarter of 2008. Revenue for the first quarter increased 17 percent after adjusting for the impact of foreign currency. Foreign currency translation comparisons decreased first quarter sales by approximately $51 million.
Commenting on the first quarter and the Company’s growth program, St. Jude Medical Chairman, President and Chief Executive Officer Daniel J. Starks said, “Our first quarter results reflect the resilience of St. Jude Medical’s growth program in an environment of global economic recession. Growth dynamics in our core markets are remarkably stable. St. Jude Medical’s investment of over 12 percent of revenue in research and development each year the last eight years is paying off with market share gains driven by all four of our major technology platforms and by our expanded investment in people. These results further strengthen our confidence that we are in the right markets with the right products and that our growth program remains on track. We reaffirm our guidance for full year 2009 earnings.”
Cardiac Rhythm Management (CRM)
Total CRM sales, which include implantable cardioverter defibrillator (ICD) and pacemaker products, were $676 million for the first quarter of 2009, a 7 percent increase compared with the first quarter of 2008. On a currency neutral basis, total CRM sales grew 12 percent over the comparable quarter in 2008.
Of that total, ICD product sales were $394 million in the first quarter, a 9 percent increase compared with the first quarter of 2008. ICD revenue grew 14 percent after adjusting for the impact of foreign currency.
First quarter pacemaker sales were $282 million, an increase of 4 percent from the comparable quarter of 2008. Pacemaker revenue growth was 9 percent after adjusting for the impact of foreign currency.
Atrial Fibrillation (AF)
AF product sales for the first quarter totaled $145 million, a 22 percent increase over the first quarter of 2008. On a currency neutral basis, total AF sales grew 27 percent over the comparable quarter in 2008.
Neuromodulation
St. Jude Medical sales of neuromodulation products were $73 million in the first quarter of 2009, up 40 percent from the comparable quarter of 2008. Neuromodulation sales were up 44 percent in the quarter after adjusting for the impact of foreign currency.
Cardiovascular
Total cardiovascular sales, which primarily include vascular closure and heart valve products, were $240 million for the first quarter of 2009, a 15 percent increase over the first quarter of 2008. On a currency neutral basis, total cardiovascular sales grew 21 percent over the comparable quarter in 2008. This product category now includes sales of products that St. Jude Medical acquired from Radi Medical Systems AB in December 2008.
Sales of vascular closure products in the first quarter of 2009 were $98 million, a 9 percent increase over the first quarter of 2008. Vascular closure product sales grew 17 percent after adjusting for the impact of foreign currency.
Heart valve product sales for the first quarter of 2009 were $81 million, a 4 percent increase over the first quarter of 2008. Heart valve product sales grew 9 percent after adjusting for the impact of foreign currency.
First Quarter Earnings Results
Reported net earnings for the first quarter of 2009 were $201 million, or $0.58 per diluted share. This compares with reported earnings for the first quarter of 2008 of $177 million, or $0.50 per diluted share, a 16 percent increase over the prior year.
Second Quarter and Full Year 2009 Sales and Earnings Guidance
During a conference call today, St. Jude Medical will provide its range for revenue expectations for the second quarter and full year by product category.
The Company expects its consolidated earnings for the second quarter of 2009 to be in the range of $0.62 to $0.64 per diluted share and for full-year 2009 reconfirms guidance in the range of $2.48 to $2.54.
Non-GAAP Financial Measures
The Company provides adjusted net earnings and adjusted net earnings per share because St. Jude Medical management believes that in order to properly understand the Company’s short-term and long-term financial trends, investors may wish to consider the impact of certain adjustments (such as in-process research and development charges, impairment charges, restructuring charges, litigation charges or litigation reserve adjustments and income tax adjustments). These adjustments result from facts and circumstances (such as business development activities, restructuring activities, asset impairment events or developments, settlements and other developments relating to litigation and resolution of audits by tax authorities) that vary in frequency and impact on the Company’s results of operations. St. Jude Medical management uses adjusted net earnings and adjusted net earnings per share to forecast and evaluate the operational performance of the Company as well as to compare results of current periods to prior periods on a consolidated basis.
Non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. Investors should consider non-GAAP measures in addition to, and not as a substitute for, or superior to, financial performance measures prepared in accordance with GAAP.
Conference Call/Webcast
St. Jude Medical’s first quarter 2009 earnings call can be heard live today beginning at 7 a.m. CDT (also archived for 90 days) on the following Web site:
First Quarter 2009 Earnings Webcast
About St. Jude Medical
St. Jude Medical develops medical technology and services that focus on putting more control into the hands of those who treat cardiac, neurological and chronic pain patients worldwide. The company is dedicated to advancing the practice of medicine by reducing risk wherever possible and contributing to successful outcomes for every patient. Headquartered in St. Paul, Minn., St. Jude Medical employs approximately 14,000 people worldwide and has four major focus areas that include: cardiac rhythm management, atrial fibrillation, cardiovascular and neuromodulation. For more information, please visit www.sjm.com.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such forward-looking statements include the expectations, plans and prospects for the Company, including potential clinical successes, anticipated regulatory approvals and future product launches, and projected revenues, margins, earnings and market shares. The statements made by the Company are based upon management’s current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include market conditions and other factors beyond the Company’s control and the risk factors and other cautionary statements described in the Company’s filings with the SEC, including those described in the Risk Factors and Cautionary Statements sections of the Company’s Annual Report on Form 10-K for the fiscal year ended January 3, 2009. The Company does not intend to update these statements and undertakes no duty to any person to provide any such update under any circumstance.
