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Medtronic plc today announced financial results for its first quarter of fiscal year 2016, which ended July 31, 2015.
Unless otherwise noted, all revenue growth rates in this press release are stated on a comparable, constant currency basis, which includes the benefit of the extra week of sales in the first quarter of fiscal year 2016, adjusts for the impact of foreign currency translation, and includes Covidien plc in the prior year comparison, aligning Covidien's prior year monthly revenue to Medtronic's fiscal quarters.
The company reported first quarter worldwide revenue of $7.274 billion, an increase of 12 percent including the extra week benefit. The extra selling week is a result of the company's 52-53 week fiscal year calendar, which occurs every six years. While it is difficult to calculate an exact impact from the extra week, the company estimates that it benefitted first quarter comparable, constant currency revenue growth by approximately 6 percentage points. After adjusting for the estimated benefit of the extra selling week, first quarter worldwide revenue grew at the upper-end of the mid-single digit range. Foreign currency translation had a negative $529 million impact on revenue. As reported, revenue increased 70 percent when compared to the $4.273 billion reported by Medtronic, Inc. in the first quarter of fiscal year 2015. As detailed in the attached table, first quarter non-GAAP income and diluted earnings per share were $1.462 billion and $1.02, an increase of 47 percent and 3 percent, respectively. As reported, first quarter net income and diluted earnings per share were $820 million and $0.57, a decrease of 6 percent and 34 percent, respectively.
U.S. revenue of $4.142 billion represented 57 percent of company revenue and increased 14 percent, high-single digit growth adjusted for the extra week, or 78 percent as reported. Non-U.S. developed market revenue of $2.197 billion represented 30 percent of company revenue and increased 10 percent, mid-single digit growth adjusted for the extra week, or 58 percent as reported. Emerging market revenue of $935 million represented 13 percent of company revenue and increased 14 percent, high-single digit growth adjusted for the extra week, or 71 percent as reported.
"Our first quarter results represent a strong start to fiscal year 2016, with all four of our groups contributing to revenue growth that was at the upper end of our goal when adjusted for the extra week. We are driving solid growth in the United States and seeing broad acceptance of our innovative therapies around the world," said Omar Ishrak, Medtronic chairman and chief executive officer. "We continue to strengthen and geographically diversify our businesses and remain confident in both our outlook for the remainder of the year and our long-term competitive position in the changing healthcare environment."