6 key quotes from CEO Omar Ishrak during Medtronic's Q1 earnings call

Written by Laura Dyrda | August 24, 2017 | Print  |

Medtronic reported 3 percent increased revenue for the first quarter of the 2018 fiscal year ending on July 28. Revenue hit $7.39 billion and spine revenue was up 1 percent to $649 million.


CEO Omar Ishrak spoke on a variety of issues during the first quarter earnings call, including the company's financial state, IT disruption and plans for future innovation, according to Seeking Alpha.


1. Future innovation: "Looking ahead, we have now entered a period of clear acceleration in our innovation cycle and we expect to see increasing revenue momentum from several important new product launches over the balance of the fiscal year."


2. IT disruption: In response to the June IT disruption that affected processing, shipping and manufacturing: "Both our internal analysis and the independent analysis found no evidence of external actor involvement, data exposure or compromising [during] this event. Based on our internal findings, and that of [external investigation], we are taking appropriate actions to prevent this type of event from happening again, including but not limited to improvements aimed at IT network design, hardware and software systems enhancements, operating processes and execution and governance."


3. Global spine market: "We estimate that both the U.S. and global spine markets have slowed modestly. However, we continue to gain market share which we attribute to the success of our speed to scale new product launch initiative."


4. Value-based care: "We are aggressively developing other unique value-based healthcare solutions across each of our groups. While we are still early in the journey, we remain focused on leading the shift to healthcare payment systems that reward value and improved patient outcomes over volume. As always, we expect to do this in a way that benefits patients and healthcare systems as well as our shareholders."


5. Cardinal Health acquisition: "We expect this transaction to have a positive impact on our revenue growth rates and margins with modest near-term earning solution. We remain committed to disciplined portfolio management and capital deployment that balances return to shareholders with reinvestment in internal and external opportunities that are aligned with our growth strategies and are expected to drive strong financial returns."


6. Mazor partnership: "We are also seeing great traction with our StealthStation S8 navigation system and our continued partnership with Mazor and their Mazor X system."


More articles on spine devices:

20 spine devices receive FDA 510(k) clearance in July
Medtronic, Stryker, NuVasive & more: 7 device company key notes
Spineology receives $10M funding: 4 key points

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies here.

Top 40 Articles from the Past 6 Months