Yesterday, ZOLL Medical (NASDAQ:ZOLL), a maker of resuscitation devices, reported record revenues for its second quarter and a 36% increase in earnings on a per-share basis. Traders were about as receptive to this record as I am sure Braves fans would be if Barry Bonds were to break the Hammer's career home run record this summer at Turner Field: The stock was shown no love, tumbling 10.5% by the close of trading. Tough crowd, I guess.

For the quarter, revenue increased by 20% on a year-over-year basis. These results come on the heels of a Q1 in which the company reported that its profits doubled. The company's largest competitor, Medtronic (NYSE:MDT), suspended shipments of defibrillation products from a Redmond, Wash., facility because of quality issues in January.

ZOLL management noted modest gains from this situation during the quarter, but also noted that Medtronic remains a "force" in the market and ZOLL can only expect to gain serious market share from this situation should the problems at this facility become a prolonged issue. Another player in the external defibrillation market that potentially stands to gain from this situation is Philips Medical, a unit of Royal Philips Electronics (NYSE:PHG).

Despite a market cap of only $510 million, ZOLL is truly an innovator in the market. The company began shipment of its new R Series defibrillator during its Q2, and it continued to see strong shipment growth from its AutoPulse Cardiac Support pump. Both of these devices are state-of-the-art, and the company has been in a mode of constantly rolling out improved technology for its defibrillators.

There were a couple of downsides the market may have seen with the company's earnings release: an 18% decrease in sales to the North American hospital market, and management noting that its AutoPulse sales were less than expected in the U.S. EMS market. The company attributes the decrease in revenue from the North American hospital market to a decline in U.S. military sales. That said, sales attributable to the U.S. military only amounted to 9% of the company's total sales for its Q2 in 2006.

ZOLL's stock price now trades at a 32% discount to its 52-week high, which occurred in January as its Q1 earnings were announced and the situation at Medtronic began to unfold. While Medtronic does not expect this situation to have a material impact on its sales, it will be interesting to see if ZOLL is able to pick up any incremental gains from it going forward. It will also be interesting to see if ZOLL is able to keep up the earnings momentum it has generated in recent quarters and push its stock price back toward its January level.

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Fool contributor Billy Fisher does not own shares of any of the companies mentioned. The Fool has a disclosure policy.