St. Jude Medical first-quarter sales up 18%

By Lisa Kerner

Erie, Pa., April 19 - St. Jude Medical, Inc. said net sales for the first quarter ended March 31 were up 18% to $784 million from $664 million in the first quarter of 2005.

Reported net earnings for the first quarter of 2006 were $137 million, or $0.36 per diluted share, compared to $119 million, or $0.32 per diluted share in the first quarter of 2005.

Despite the volatility of the implantable cardioverter defibrillator (ICD) market, the company remained optimistic, reporting first-quarter ICD sales of $262 million, a 27% increase over the first quarter of 2005.

"We are also confident that St. Jude Medical's new product flow in 2006, solid customer relationships and a plan announced today to expand the company's U.S. field sales organization by up to 30% over the next 12 months will enable us to continue to capitalize on this market opportunity," chairman, president and chief executive officer Daniel J. Starks said in a news release.

"We believe that this increase in field support will help us accelerate our coverage to new ICD implanting centers, deepen our penetration in existing ICD implanting centers and expand our market development activities and other marketing initiatives."

First-quarter pacemaker sales and atrial fibrillation product sales were also up, at $221 million and $75 million, respectively, as were sales of cardiology products of $111 million and cardiac surgery sales of $74 million.

Under the company's new $700 million share repurchase program, the company said it will make repurchases through open market transactions in accordance with applicable securities laws.

Cash and cash equivalents at March 31 dipped to $392.7 million from $534.6 million on Dec. 31.

The company provided earnings-per-share guidance for the second-quarter and full-year 2006 of $0.36 to $0.39 per diluted share and $1.55 to $1.60, respectively.

St. Jude is a medical device technology and services company located in St. Paul, Minn.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.