Exhibit 99.1
| St. Jude Medical, Inc.
One Lillehei Plaza
St. Paul, Minnesota 55117
(651) 483.2000
www.sjm.com |
Contacts: | Angela Craig | Kathleen Janasz |
| Investor Relations | Media Relations |
| (651) 481-7789 | (651) 415-7042 |
St. Jude Medical Reports First Quarter Results
St. Paul, Minn. – April 19, 2007 – St. Jude Medical, Inc. (NYSE: STJ) today reported sales and net earnings for the first quarter ended March 31, 2007.
First Quarter Results
The company reported net sales of $887 million in the first quarter of 2007, an increase of 13% compared to the $784 million in the first quarter of 2006. Favorable foreign currency translation comparisons increased first quarter sales by approximately $18 million.
Reported net earnings for the first quarter of 2007 were $146 million, or $0.41 per diluted share. This compares to reported net earnings for the first quarter of 2006 of $137 million, or $0.36 per diluted share.
Commenting on the first quarter results, St. Jude Medical Chairman, President and Chief Executive Officer Daniel J. Starks said, “Our first quarter results reflect solid contributions from each of our major growth programs. The investments we made in new people, new products and new programs in 2006 already are beginning to favorably impact our results. St. Jude Medical is raising its guidance for consolidated earnings per share for the full year 2007 to the range of $1.72 to $1.77.”
Cardiac Rhythm Management (CRM)
Total Cardiac Rhythm Management sales, which include implantable cardioverter defibrillator (ICD) and pacemaker products, were $549 million for the first quarter of 2007, a 14% increase compared to the first quarter of 2006.
Of that total, ICD product sales were $302 million in the first quarter, a 15% increase over the comparable quarter of 2006.
First quarter pacemaker sales were $247 million, an increase of 12% from the comparable quarter of 2006.
Atrial Fibrillation (AF)
AF product sales for the first quarter totaled $93 million, a 26% increase over the first quarter of 2006.
Neuromodulation
St. Jude Medical sales of neuromodulation products were $48 million in the first quarter of 2007, up 14% from the comparable quarter of 2006.
Cardiovascular
Total cardiovascular sales, which primarily include vascular closure and heart valve products, were $197 million for the first quarter of 2007, a 6% increase over the first quarter of 2006.
Sales of vascular closure products in the first quarter of 2007 were $90 million of total cardiovascular sales, a 7% increase over the first quarter of 2006.
Total heart valve product sales for the first quarter of 2007 were $72 million, a 4% increase over the first quarter of 2006.
Second Quarter and Full Year 2007 Revenue and Earnings Guidance
During a conference call today, St. Jude Medical will update its revenue expectations for several product categories and provide consolidated earnings guidance for the second quarter and full-year 2007.
The company expects its consolidated earnings for the second quarter of 2007 to be in the range of $0.42 to $0.44 per diluted share and is raising its estimates for consolidated earnings for the full-year 2007 to the range of $1.72 to $1.77.
Conference Call/Webcast
St. Jude Medical’s first quarter earnings call can be heard live today at 7:30 a.m. CT (also archived for 90 days) on the following website:
http://phx.corporate-ir.net/phoenix.zhtml?p=eventDetails&c=73836&eventID=1492507.
About St. Jude Medical
St. Jude Medical is dedicated to making life better for cardiac, neurological and chronic pain patients worldwide through excellence in medical device technology and services. The Company has five major focus areas that include: cardiac rhythm management, atrial fibrillation, cardiac surgery, cardiology and neuromodulation. Headquartered in St. Paul, Minn., St. Jude Medical employs more than 11,000 people worldwide. 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 Company’s Annual Report on Form 10-K filed on February 28, 2007 (see Item 1A on pages 13-20, and page 20 of Exhibit 13 to the Company’s Form 10-K). The Company does not intend to update these statements and undertakes no duty to any person to provide any such update under any circumstance.
St. Jude Medical, Inc.
Condensed Consolidated Statements of Earnings
(in thousands, except per share amounts)
(Unaudited)
| | Three Months Ended | |
| | March 31, 2007 | | April 1, 2006 | |
Net sales | | $ | 886,978 | | $ | 784,416 | |
Cost of sales | | | 238,977 | | | 208,447 | |
Gross profit | | | 648,001 | | | 575,969 | |
| | | | | | | |
Selling, general & administrative | | | 328,340 | | | 284,208 | |
Research & development | | | 115,958 | | | 105,258 | |
| | | | | | | |
Operating profit | | | 203,703 | | | 186,503 | |
Other income (expense) | | | (5,168 | ) | | (704 | ) |
Earnings before taxes | | | 198,535 | | | 185,799 | |
Income tax expense | | | 52,810 | | | 48,730 | |
Net earnings | | $ | 145,725 | | $ | 137,069 | |
| | | | | | | |
Diluted earnings per share | | $ | 0.41 | | $ | 0.36 | |
| | | | | | | |
Weighted average shares outstanding-diluted | | | 359,276 | | | 384,997 | |
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
| | March 31, 2007 | | December 30, 2006 | |
Cash & cash equivalents | | $ | 111,435 | | $ | 79,888 | |
Accounts receivable, net | | | 905,093 | | | 882,098 | |
Inventories | | | 477,535 | | | 452,812 | |
Other current assets | | | 273,507 | | | 275,367 | |
Property, plant & equipment, net | | | 646,417 | | | 617,851 | |
Goodwill | | | 1,650,776 | | | 1,649,581 | |
Other intangible assets, net | | | 554,860 | | | 560,276 | |
Other assets | | | 286,341 | | | 271,921 | |
Total assets | | $ | 4,905,964 | | $ | 4,789,794 | |
| | | | | | | |
Short-term debt | | $ | 350,000 | | $ | 0 | |
Other current liabilities | | | 535,903 | | | 676,207 | |
Long-term debt | | | 1,112,175 | | | 859,376 | |
Deferred income taxes, net | | | 162,033 | | | 163,336 | |
Long-term other liabilities | | | 218,488 | | | 121,888 | |
Total equity | | | 2,527,365 | | | 2,968,987 | |
Total liabilities & equity | | $ | 4,905,964 | | $ | 4,789,794 | |
