Business Context and Reporting Period
This Form 8-K is filed by Greatbatch, Inc. (not Integer Holdings Corp) for the reporting date of February 28, 2007. The filing discloses the entry into a material definitive agreement with St. Jude Medical, Inc.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on the terms of a new commercial agreement.
Material Changes and Agreement Details
On February 28, 2007, Greatbatch, Inc. entered into an amended supplier partnering agreement with St. Jude Medical, Inc., effective March 1, 2007. Key terms include:
- Extension: The agreement is extended through 2013.
- Exclusivity: Greatbatch is designated as the exclusive supplier of battery technology and the critical supplier of filtered feedthrough technology to St. Jude Medical.
- Pricing: The amendment provides for year-over-year price reductions on both technologies driven by collaboration on manufacturing and supply chain efficiencies.
- R&D Collaboration: Parties agreed to jointly develop new technologies, including a new low-cost power solution with an implementation date no later than 2009.
Guidance, Outlook, and Risks
Management commentary indicates an intent to file the full agreement as an exhibit to the Quarterly Report on Form 10-Q for the fiscal quarter ended March 30, 2007. The filing does not explicitly list new risks, contingencies, or unusual items beyond the standard implications of the pricing reductions and joint development commitments.
Investor Verification Checklist
- Verify the impact of year-over-year price reductions on future gross margins.
- Confirm the financial significance of St. Jude Medical as a customer relative to total revenue.
- Review the upcoming Form 10-Q (fiscal quarter ended March 30, 2007) for the full text of the amended agreement.
- Monitor progress on the joint development of the low-cost power solution targeted for 2009.