Guidant reports 14% fall in sales for third quarter

9 November 2005

Guidant Corporation has reported third quarter 2005 sales of $795 million, representing a sales decline of $130 million or 14% versus 2004.

Income and earnings per share from continuing operations for the quarter were $65 million and $0.20 versus $161 million and $0.50 in the third quarter of 2004. Excluding certain items, third quarter adjusted income and earnings per share were $108 million and $0.32 compared to $202 million and $0.63.

Guidant’s third quarter results reflect the temporary unavailability of its leading cardiac resynchronization-defibrillator devices during the full month of July and part of August, as well as the impact of this and other product recalls and physician advisories on implantable defibrillator and pacemaker sales. This impact was partially offset by sequential growth of U.S. coronary stent revenue, and continuing sales growth of emerging businesses.

Third Quarter Financial Highlights

  • Worldwide implantable defibrillator sales decreased 26% to $331 million; U.S. implantable defibrillator sales were $246 million, a decline of 31%. International implantable defibrillator sales declined 3% to $85 million.
  • Worldwide pacemaker sales declined 15% to $153 million; U.S. pacemaker sales were $85 million.
  • Worldwide coronary stent sales of $112 million declined 8% versus the prior year; U.S. stent sales totaled $64 million, representing a sequential increase.
  • Worldwide angioplasty system sales increased 3% to $108 million.
  • Worldwide sales of cardiac surgery and peripheral, including carotid and biliary systems, (emerging businesses) grew 27% to $91 million.
  • Gross margin was 78.6% compared to 75.3% in the third quarter of 2004. The third quarter 2005 gross margin included a net benefit of approximately $17 million, or 210 basis points, primarily associated with lower than expected implantable defibrillator and pacemaker warranty claims.
  • Net cash of $2.4 billion increased $812 million year to date and $126 million from June 30, 2005.

For more information on Guidant’s financial results, see Guidant’s third quarter Form 10-Q at

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