UNITED
STATESSECURITIES
AND EXCHANGE COMMISSIONWashington,
D.C. 20549

FORM
10-Q

Quarterly
Report Under Section 13 or 15(d) ofThe
Securities Exchange Act of 1934

|For quarter ended: June 30, 2005 | Commission File No. 0-11178
|-------------------------------- | ---------------------------

UTAH
MEDICAL PRODUCTS, INC.(Exact name of Registrant as specified in its charter)

|UTAH                                                           | 87-0342734                          
|-------------------------------------------------------------- | ------------------------------------
|(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.)



7043 South
300 WestMidvale, Utah 84047
Address of principal executive offices

Registrant's
telephone number:  (801) 566-1200

Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by
Sections 13 or 15(d) of the  Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was required to file  such
reports) and; (2) has been subject to such filing requirements for the past 90 days.  Yes |X|  No
|_|

Indicate
by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of
the Exchange Act).  Yes |X|  No |_|

Indicate
the number of shares outstanding of each of the issuer's classes of common stock as of
August 4, 2005: 3,875,609.



UTAH
MEDICAL PRODUCTS, INC.INDEX
TO FORM 10-Q

|                                                                      |     
|--------------------------------------------------------------------- | ----
|PART I - FINANCIAL INFORMATION                                        | PAGE
|                                                                      |     
|Item 1.   Financial Statements                                       
|                                                                     
|Consolidated Condensed Balance Sheets as of                          
|June 30, 2005 and December 31, 2004                                   | 1   
|                                                                      |     
|Consolidated Condensed Statements of Income for the                  
|three and six months ended June 30, 2005 and June 30, 2004            | 2   
|                                                                      |     
|Consolidated Condensed Statements of Cash Flows for                  
|the six months ended June 30, 2005 and June 30, 2004                  | 3   
|                                                                      |     
|Notes to Consolidated Condensed Financial Statements                  | 5   
|                                                                      |     
|Item 2.   Managements Discussion and Analysis of                    
|Financial Condition and Results of Operations                         | 8   
|                                                                      |     
|Item 3.   Quantitative and Qualitative Disclosures about Market Risk  | 12  
|                                                                      |     
|Item 4.   Controls and Procedures                                     | 12  
|                                                                      |     
|PART II  - OTHER INFORMATION                                         
|                                                                     
|Item 1.   Legal Proceedings                                           | 13  
|                                                                      |     
|Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds | 13  
|                                                                      |     
|Item 6.   Exhibits                                                    | 14  
|                                                                      |     
|SIGNATURES                                                            | 14  

---

PART I -
FINANCIAL INFORMATION

Item 1.
Financial Statements

UTAH
MEDICAL PRODUCTS, INC. AND SUBSIDIARIESCONSOLIDATED CONDENSED BALANCE SHEETS AS OF
JUNE 30, 2005 AND DECEMBER 31, 2004(in thousands)

|                                                     |  | (unaudited)June 30,2005 |   | (audited)December 31,2004
|---------------------------------------------------- |  | ----------------------- | - | -------------------------
|                                                     |  |                         |   |                          
|ASSETS                                               |  |                         |   |                          
|Current assets:                                      |  |                         |   |                          
|Cash                                                 |  |                         | $ | 626                      
|Investments, available-for-sale                      |  |                         |   | 12,676                   
|Accounts receivable - net                            |  |                         |   | 3,935                    
|Inventories                                          |  |                         |   | 2,650                    
|Other current assets                                 |  |                         |   | 956                      
|                                                     |  |                         |   |                          
|Total current assets                                 |  |                         |   | 20,843                   
|                                                     |  |                         |   |                          
|Property and equipment - net                         |  |                         |   | 8,423                    
|                                                     |  |                         |   |                          
|Goodwill                                             |  |                         |   | 7,191                    
|                                                     |  |                         |   |                          
|Other intangible assets                              |  |                         |   | 2,718                    
|Other intangible assets - accumulated amortization   |  |                         |   | (2,260                   
|                                                     |  |                         |   |                          
|Other intangible assets - net                        |  |                         |   | 458                      
|                                                     |  |                         |   |                          
|TOTAL                                                |  |                         | $ | 36,915                   
|                                                     |  |                         |   |                          
|LIABILITIES AND STOCKHOLDERS' EQUITY                 |  |                        
|Current liabilities:                                 |  |                        
|Accounts payable                                     |  |                         | $ | 824                      
|Accrued expenses                                     |  |                         |   | 1,869                    
|                                                     |  |                         |   |                          
|Total current liabilities                            |  |                         |   | 2,693                    
|                                                     |  |                         |   |                          
|Deferred income taxes                                |  |                         |   | 672                      
|                                                     |  |                         |   |                          
|Total liabilities                                    |  |                         |   | 3,365                    
|                                                     |  |                         |   |                          
|Stockholders' equity:                                |  |                        
|Preferred stock - $.01 par value; authorized - 5,000 |  |                        
|shares; no shares issued or outstanding              |  |                        
|Common stock - $.01 par value; authorized - 50,000   |  |                        
|shares; issued - June 30, 2005, 3,928 shares         |  |                        
|December 31, 2004, 4,105 shares                      |  |                         |   | 39                       
|Accumulated other comprehensive income               |  |                         |   | (503                     
|Retained earnings                                    |  |                         |   | 34,014                   
|                                                     |  |                         |   |                          
|Total stockholders' equity                           |  |                         |   | 33,550                   
|                                                     |  |                         |   |                          
|TOTAL                                                |  |                         | $ | 36,915                   
|                                                     |  |                         |   |                          

see notes to
consolidated condensed financial statements

1

---

UTAH MEDICAL
PRODUCTS, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF INCOME FOR THE
THREE AND SIX MONTHS ENDED JUNE 30, 2005 AND JUNE 30, 2004 (in thousands - unaudited)

|                                    | Three Months EndedJune 30, |  | Six Months EndedJune 30,
|----------------------------------- | -------------------------- |  | ------------------------
|                                    |                            |  |                         
|                                    | 2005                       |  | 2004                    
|                                    |                            |  |                         
|NET SALES                           |                            |  | $                       
|COST OF SALES                       |                            |  |                         
|                                    |                            |  |                         
|Gross Margin                        |                            |  |                         
|                                    |                            |  |                         
|OPERATING EXPENSES:                 |                            | 
|Selling, general and administrative |                            |  |                         
|Research & development              |                            |  |                         
|                                    |                            |  |                         
|Total                               |                            |  |                         
|                                    |                            |  |                         
|Income from Operations              |                            |  |                         
|                                    |                            |  |                         
|OTHER INCOME                        |                            |  |                         
|                                    |                            |  |                         
|Income Before Income Tax Expense    |                            |  |                         
|                                    |                            |  |                         
|INCOME TAX EXPENSE                  |                            |  |                         
|                                    |                            |  |                         
|Net Income                          |                            |  | $                       
|                                    |                            |  |                         
|BASIC EARNINGS PER SHARE            |                            |  | $                       
|                                    |                            |  |                         
|DILUTED EARNINGS PER SHARE          |                            |  | $                       
|                                    |                            |  |                         
|SHARES OUTSTANDING - BASIC          |                            |  |                         
|                                    |                            |  |                         
|SHARES OUTSTANDING - DILUTED        |                            |  |                         
|                                    |                            |  |                         

see notes to
consolidated condensed financial statements

2

---

UTAH MEDICAL
PRODUCTS, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS FOR THE
SIX MONTHS ENDED JUNE 30, 2005 AND JUNE 30, 2004 (in thousands - unaudited)

|                                                          | June 30,
|--------------------------------------------------------- | --------
|                                                          |         
|                                                          | 2005    
|                                                          |         
|CASH FLOWS FROM OPERATING ACTIVITIES:                     |         
|Net income                                                |         
|                                                          |         
|Adjustments to reconcile net income to net                |         
|cash provided by operating activities:                    |         
|Depreciation and amortization                             |         
|Gain on investments                                       |         
|Provision for (recovery of) losses on accounts receivable |         
|Loss on disposal of assets                                |         
|Deferred income taxes                                     |         
|Tax benefit attributable to exercise of stock options     |         
|Changes in operating assets and liabilities:              |         
|Accounts receivable - trade                               |         
|Accrued interest and other receivables                    |         
|Litigation receivable                                     |         
|Inventories                                               |         
|Prepaid expenses and other current assets                 |         
|Accounts payable                                          |         
|Accrued expenses                                          |         
|                                                          |         
|Total adjustments                                         |         
|                                                          |         
|Net cash provided by operating activities                 |         
|                                                          |         
|CASH FLOWS FROM INVESTING ACTIVITIES:                     |         
|Capital expenditures for:                                 |         
|Property and equipment                                    |         
|Intangible assets                                         |         
|Purchases of investments                                  |         
|Proceeds from the sale of investments                     |         
|Net cash paid in acquisition                              |         
|                                                          |         
|Net cash used in investing activities                     |         
|                                                          |         
|CASH FLOWS FROM FINANCING ACTIVITIES:                     |         
|Proceeds from issuance of common stock - options          |         
|Common stock purchased and retired                        |         
|Common stock purchased and retired - options              |         
|Payment of dividends                                      |         
|                                                          |         
|Net cash used in financing activities                     |         
|                                                          |         
|Effect of exchange rate changes on cash                   |         
|NET INCREASE (DECREASE) IN CASH                           |         
|CASH AT BEGINNING OF PERIOD                               |         
|                                                          |         
|CASH AT END OF PERIOD                                     |         
|                                                          |         

see notes to
consolidated condensed financial statements

3

---

UTAH MEDICAL
PRODUCTS, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS FOR THE
SIX MONTHS ENDED JUNE 30, 2005 AND JUNE 30, 2004 Continued

SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:  (in thousands)

|                                                                           | Six Months EndedJune 30,
|-------------------------------------------------------------------------- | ------------------------
|                                                                           |                         
|                                                                           | 2005                    
|                                                                           |                         
|Cash paid during the period for income taxes                               |                         
|Cash paid during the period for interest                                   |                         
|                                                                           |                         
|During the six months ended June 30, 2004 the Company purchased all of the |                         
|outstanding stock of Abcorp Medical, Inc. The Company paid cash, and       |                         
|recorded net assets from the acquisition as follows:                       |                         
|                                                                           |                         
|Cash                                                                       |                         
|Accounts receivable                                                        |                         
|Inventory                                                                  |                         
|Prepaid Insurance                                                          |                         
|Equipment, net                                                             |                         
|Accounts payable                                                           |                         
|Accrued expenses                                                           |                         
|Intangibles                                                                |                         
|                                                                           |                         
|Total cash paid                                                            |                         
|Less cash received                                                         |                         
|                                                                           |                         
|Net cash investment                                                        |                         

see notes to
consolidated condensed financial statements

4

---

UTAH
MEDICAL PRODUCTS, INC.NOTES
TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS(unaudited)

(1)   The unaudited financial statements have been prepared in accordance with the
instructions to form 10-Q and do not include all of the information and note
disclosures required by accounting principles generally accepted in the United
States. These statements should be read in conjunction with the financial
statements and notes included in the Utah Medical Products, Inc.
(UTMD or the Company) annual report on form 10-K/A for
the year ended December 31, 2004. In the opinion of management, the accompanying
financial statements include all adjustments (consisting only of normal
recurring adjustments) necessary to summarize fairly the Companys
financial position and results of operations.

(2)   Inventories at June 30, 2005 and December 31, 2004 (in thousands) consisted of
the following:

|                |  | 
|--------------- |  | 
|                |  | 
|Finished goods  |  | 
|Work-in-process |  | 
|Raw materials   |  | 
|                |  | 
|Total           |  | 
|                |  | 

(3)   Stock-Based Compensation. At June 30, 2005 the Company had stock-based employee
compensation plans, which authorized the grant of stock options to eligible
employees and directors. The Company accounts for those plans under the
recognition and measurement principles of APB Opinion No. 25, Accounting for
Stock Issued to Employees, and related Interpretations, and has adopted the
disclosure-only provisions of SFAS No. 123, Accounting for Stock-Based
Compensation. Accordingly, no compensation cost has been recognized in the
financial statements, as all options granted under those plans had an exercise
price equal to or greater than the market value of the underlying common stock
on the date of grant. Had compensation cost for the Companys stock option
plans been determined based on the fair value at the grant date consistent with
the provisions of SFAS No. 123, the Companys net earnings and earnings per
share would have been reduced to the pro forma amounts indicated below (in
thousands, except per share amounts):

|                                                                                                                                   | Three Months EndedJune 30, |  | Six Months EndedJune 30, |      
|---------------------------------------------------------------------------------------------------------------------------------- | -------------------------- |  | ------------------------ | -----
|                                                                                                                                   | 2005                       |  | 2004                     |      
|                                                                                                                                   |                            |  |                          |      
|Net Income as reported                                                                                                             |                            |  | $                        | 1,887
|Deduct:                                                                                                                            |                            | 
|Total stock-based employee compensation expense determined under fair value based method for allawards, net of related tax effects |                            |  |                          | (515 
|                                                                                                                                   |                            |  |                          |      
|Net income pro forma                                                                                                               |                            |  | $                        | 1,372
|                                                                                                                                   |                            |  |                          |      
|Earnings per share:                                                                                                                |                            | 
|Basic - as reported                                                                                                                |                            |  | $                        | 0.47 
|                                                                                                                                   |                            |  |                          |      
|Basic - pro forma                                                                                                                  |                            |  | $                        | 0.34 
|                                                                                                                                   |                            |  |                          |      
|Diluted - as reported                                                                                                              |                            |  | $                        | 0.45 
|                                                                                                                                   |                            |  |                          |      
|Diluted - pro forma                                                                                                                |                            |  | $                        | 0.32 
|                                                                                                                                   |                            |  |                          |      

On
May 6, 2005, the Compensation and Option Committee of the Board accelerated the
vesting of certain unvested stock options awarded to employees, officers and
directors under the Companys stock option plans, which had exercise prices
that were under water as of market close on May 5, 2005.

5

---

Options
to purchase 128,063 shares become fully exercisable on December 1, 2005 as a
result of the vesting acceleration. Exercise prices of the options accelerated
are $24.02 and $25.59 per share. These options previously became fully vested on
October 1, 2007 and January 1, 2008.

The
Company took this action to avoid an accounting charge (as compensation expense)
for these options starting in the quarter ending March 31, 2006, as required by
FAS 123(R). The substantial increase in pro forma compensation expense in 2005,
as shown above, is a result of the vesting acceleration.

(4)   Comprehensive Income. Comprehensive income (in thousands) for the three and six
months ending June 30, 2005 was $1,691 and $3,307, net of taxes, respectively.
The components used to calculate comprehensive income were foreign currency
translation adjustments of ($217) and ($426), and unrealized holding
gains/(losses) of $21 and ($123), respectively.

(5)   Warranty Reserve. The Company accrues provisions for estimated costs that are
likely to be incurred for product warranties and uncollectible accounts. The
amount of the provision is adjusted, as required, to reflect historical
experience. The following table summarizes changes to UTMDs warranty
reserve during 2Q 2005 (in thousands):

|                                                                | 
|--------------------------------------------------------------- | 
|Beginning Balance, April 1, 2005                                | 
|Changes in Warranty Reserve during 2Q 2005:                     | 
|                                                                | 
|Aggregate reductions for warranty repairs                       | 
|Aggregate changes for warranties issued during reporting period | 
|Aggregate changes in reserve related to preexisting warranties  | 
|                                                                | 
|Ending Balance, June 30, 2005                                   | 

(6)   Investments. Investments, classified as available-for-sale consist of the
following (in thousands):

|Investments, available-for-sale | June 30, 2005 |  | June 30, 2004 |       
|------------------------------- | ------------- |  | ------------- | ------
|                                |               |  |               |       
|Investments, at cost            |               |  | $             | 12,590
|Equity Securities:              |               | 
|Unrealized holding gains        |               |  |               | 150   
|Unrealized holding (losses)     |               |  |               | (64   
|                                |               |  |               |       
|Investments, at fair value      |               |  | $             | 12,676

| | Changes
in the unrealized holding gain on investment securities available-for-sale and reported as
a separate component of accumulated other comprehensive income are as follows (in
thousands):
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Unrealized holding gains on available-for-sale investments            | 2Q 2005 |  | 2Q 2004 |    
|--------------------------------------------------------------------- | ------- |  | ------- | ---
|                                                                      |         |  |         |    
|Balance, beginning of period                                          |         |  | $       | 32 
|Realized gain from securities included in beginning balance           |         |  |         | -  
|Gross unrealized holding gains, net of (losses), in equity securities |         |  |         | 34 
|Deferred income taxes on unrealized holding gain                      |         |  |         | (13
|                                                                      |         |  |         |    
|Balance, end of period                                                |         |  | $       | 53 

| | UTMD
held available-for-sale investments in municipal debt securities with the  following
maturities and amounts:
| | -----------------------------------------------------------------------------------------------------------------

|Available-for-sale debt securities | June 30, 2005 |  | June 30, 2004 |      
|---------------------------------- | ------------- |  | ------------- | -----
|                                   |               |  |               |      
|Maturity less than 1 year          |               |  | $             | 2,041
|Maturity greater than 10 years     |               |  |               | 1,450

6

---

(7)   Forward-Looking
Information. This report contains certain forward-looking  statements and information
relating to the Company that are based on the beliefs  of management as well as
assumptions made by, and information currently  available to, management. When used in
this document, the words  anticipate, believe, should, project, estimate, expect, intend and
similar expressions, as they relate to the Company or its  management, are intended to
identify forward-looking statements. Such statements  reflect the current view of the
Company respecting future events and are subject  to certain risks, uncertainties, and
assumptions, including the risks and  uncertainties noted throughout this document.
Although the Company has attempted  to identify important factors that could cause the
actual results to differ  materially, there may be other factors that cause the forward
statement not to  come true as anticipated, believed, projected, expected, or intended.
Should one  or more of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may differ materially from those  described
herein as anticipated, believed, projected, estimated, expected, or  intended.

General
risk factors that may impact the Companys revenues include the market
acceptance of competitive products, administrative practices of group purchasing
organizations; obsolescence caused by new technologies, the possible
introduction by competitors of new products that claim to have many of the
advantages of UTMDs products at lower prices, the timing and market
acceptance of UTMDs own new product introductions, UTMDs ability to
efficiently and responsively manufacture its products, including the possible
effects of lack of performance of suppliers, success in gaining access to
important global distribution channels, budgetary constraints, the timing of
regulatory approvals for newly introduced products, regulatory intervention in
current operations, particularly including the August 9, 2004 lawsuit filed by
the Justice Department on behalf of the FDA against UTMD in the U.S. District
Court of Utah and third party reimbursement of health care costs of customers.

Risk
factors, in addition to the risks outlined in the previous paragraph that may
impact the Companys assets and liabilities, as well as cash flows,
include: risks inherent to companies manufacturing products used in healthcare,
including claims resulting from the improper use of devices and other product
liability claims; defense of the Companys intellectual property;
productive use of assets in generating revenues, management of working capital,
including inventory levels required to meet delivery commitments at a minimum
cost; and timely collection of accounts receivable.

Additional
risk factors that may affect non-operating income include: the continuing
viability of the Companys technology license agreements; actual cash and
investment balances; asset dispositions; and acquisition activities that may
require external funding.

7

---

Item 2.
Managements Discussion and Analysis of Financial Condition and Results of Operations

General

UTMD
manufactures and markets a well-established range of specialty medical devices.
The Companys Form 10-K/A Annual Report for the year ended December 31,
2004 provides a detailed description of products, technologies, markets,
regulatory issues, business initiatives, resources and business risks, among
other details, and should be read in conjunction with this report. Because of
the relatively short span of time, results for any given three month period in
comparison with a previous three month period may not be indicative of
comparative results for the year as a whole. Dollar amounts in the report are
expressed in thousands, except per-share amounts or where otherwise noted.

Analysis of
Results of Operations

a) Overview

In
second quarter (2Q) 2005, UTMDs consolidated global sales increased 3%
compared to 2Q 2004. UTMD achieved the following profitability measures for 2Q
2005, in comparison with 2Q 2004:

|                                                    | 2Q 05 |  | 2Q 04
|--------------------------------------------------- | ----- |  | -----
|                                                    |       |  |      
|Gross Profit Margin (gross profits/ sales):         |       |  |      
|Operating Profit Margin (operating profits/ sales): |       |  |      
|Net Income:                                         |       |  |      

2Q
2005 earnings per share (EPS) were $.45, an increase of 16% compared to 2Q 2004.

For
first half (1H) 2005, UTMDs total sales increased 2% relative to 1H 2004.
The Company achieved the following profitability measures for 1H 2005 compared
to 1H 2004:

|                                                    | 1H 05 |  | 1H 04
|--------------------------------------------------- | ----- |  | -----
|                                                    |       |  |      
|Gross Profit Margin (gross profits/ sales):         |       |  |      
|Operating Profit Margin (operating profits/ sales): |       |  |      
|Net Income:                                         |       |  |      

1H
2005 earnings per share (EPS) decreased 38% to $.90 on a diluted basis. In first
quarter (1Q) 2004, UTMD recognized $6,060 in non-operating income from patent
infringement damages which did not recur in 1H 2005.

b)
Revenues

The
Company believes that revenue should be recognized at the time of shipment as
title generally passes to the customer at the time of shipment. Revenue from
product and service sales is generally recognized at the time the product is
shipped or service completed and invoiced, and collectibility is reasonably
assured. There are circumstances under which revenue may be recognized when
product is not shipped, all of which meet the criteria of SAB 104:

1)
The Company provides engineering services, for example, design and production of
manufacturing tooling that may be used in subsequent UTMD manufacturing of
custom components for other companies. This revenue is recognized when
UTMDs service has been completed according to a fixed contractual
agreement.

2)
The Company manufactures products for other companies (OEM customers) according
to fixed longer term supply contracts which are not cancelable or changeable.
Occasionally, an OEM customer will request to bill completed products according
to the contract, but hold shipment for some business purpose of the customer
(e.g. awaiting some mating component from another supplier).

3)
The Company manufactures products for foreign companies according to fixed
contracts which are not cancelable or changeable. Occasionally, a foreign
customer under a prepay obligation will request to bill completed products
according to the contract, but hold shipment until payment will be made.

Sales
in 2Q 2005 increased 3% compared to 2Q 2004. Domestic direct sales were up 5% in
2Q 2005, led by domestic neonatal sales which increased 68% compared to 2Q 2004.
The voluntary temporary withdrawal from the neonatal market by Arrow
International was a positive factor for UTMD in 1H 2005. Domestic obstetric
sales declined 12% in 2Q 2005 compared to the same quarter in 2004. Domestic OEM
sales (sales of components to other companies) were down 33% compared to 2Q
2004. The primary component of the weaker OEM sales was CMI molding,
which was down 55%. The OEM sales pattern is uneven
quarter-to-quarter because customers tend to purchase several months worth
of components at a time to minimize costs.

8

---

International
sales increased 6% in 2Q 2005 compared to 2Q 2004. Trade shipments from
UTMDs Ireland facility, comprised largely of OEM sales, were up
14% in US Dollar terms, and up 11% in EURO terms. International sales
did not increase as much as shipments from the Ireland facility due to product
mix.

1H
2005 sales increased 2% compared to 1H 2004. International sales increased 7%
while domestic sales were about the same. International sales were 24% of total
sales in 1H 2005, up from 23% in 1H 2004. 1H 2005 trade shipments
from UTMDs Ireland facility were up 9% in US Dollar terms, and 5% in EURO
terms compared to 1H 2004.

Global
revenues by product category:

|                                                    | 2Q 2005 |  | 2Q 2004 |       | 1H 2005 |   | 1H 2004
|--------------------------------------------------- | ------- |  | ------- | ----- | ------- | - | -------
|                                                    |         |  |         |       |         |   |        
|Labor & Delivery                                    |         |  | $       | 2,392 |         | $ | 2,830  
|Gynecology/ Electrosurgery/ Urology                 |         |  |         | 1,324 |         |   | 1,298  
|Neonatal                                            |         |  |         | 1,647 |         |   | 996    
|Blood Pressure Monitoring and Accessories*          |         |  |         | 1,665 |         |   | 1,703  
|                                                    |         |  |         |       |         |   |        
|*
includes
molded components sold to OEM customers. |         |  |         |       |         |   |        



c)
Gross Profit

UTMDs
average gross profit margin (GPM), gross profits as a percentage of sales, was
57.2% and 56.7% in 2Q and 1H 2005, respectively, compared to 57.6% and 57.9% in
2Q and 1H 2004, respectively. UTMDs prices for its products remained
consistent with the prior year, but 1H 2005 product mix favored lower margin
products. Because of UTMDs small size and period-to-period fluctuations in
OEM business activity, allocations of fixed manufacturing overheads cannot be
meaningfully allocated between direct and OEM sales. Therefore, UTMD does not
report GPM by sales channels. Management expects to continue to
achieve its GPM target of 55% during the remainder of 2005.

d)
Operating Profit

Operating
Profit is the profit remaining after subtracting operating expenses from gross
profits. Operating expenses in 2Q 2005 were $244 higher than 2Q 2004,
but $144 lower in 1H 2005 than 1H 2004. Costs were higher in 2Q 2005 mainly
because UTMD increased its litigation reserve $300 to reflect its current
estimate of the costs that will be required to complete the litigation
process with the FDA through the trial, which is scheduled to begin August 30.
The primary factor in the 1H difference was $350 in 1Q 2004 bonuses and
litigation expenses related to the Tyco patent infringement. Total operating
expenses including sales and marketing (S&M), research and development
(R&D) and general and administrative (G&A) expenses, were 22.1% of sales
in 2Q 2005, compared to 19.1% in 2Q 2004. Total operating expenses
were 20.0% of sales in 1H 2005, compared to 21.4% in 1H 2004. Operating profit
margins as a percentage of sales were 35.2% in 2Q 2005, 38.5% in 2Q 2004, 36.7%
in 1H 2005 and 36.5% in 1H 2004.

S&M
expenses in 2Q 2005 were $580 or 8.3% of sales compared to $625, or 9.2% of
sales in 2Q 2004. S&M expenses in 1H 2005 were $1,082 or 7.9% of sales
compared to $1,187, or 8.8% of sales in 2Q 2004. Looking forward to the rest of
2005, UTMD expects S&M expenses to remain less than 9% of total
consolidated sales.

R&D
expenses in 2Q 2005 were 1.1% of sales compared to 1.2% of sales in 2Q 2004.
R&D expenses in 1H 2005 were 1.0% of sales compared to 1.1% of sales in 1H
2004. Management expects R&D expenses during 2005 as a whole to be
approximately 1% of sales.

G&A
expenses in 2Q 2005 were $891 or 12.7% of sales compared to $599 or 8.8% of 2Q
2004 sales. G&A expenses in 1H 2005 were $1,508 or 11.0% of sales compared
to $1,542 or 11.5% of 1H 2004 sales. As noted above, in 2Q 2005, $300 in G&A
expenses were related to the FDA lawsuit, while in 1Q 2004, $350 in G&A
expenses were associated with the completion of the patent infringement lawsuit
with Tyco. Management expects G&A expenses including litigation expenses
during 2005 to be less than 12% of sales. However, costs of litigation
are hard to estimate.

e)
Non-operating income

Non-operating
income in 2Q 2005 was $213 compared to $178 in 2Q 2004, and was $467 in 1H 2005
compared to $6,392 in 1H 2004. In 1Q 2004, UTMD recognized $6,060 in
non-operating income due to completion of the patent infringement lawsuit with
Tyco. UTMD paid no interest during either period. UTMD received $85 in 2Q 2005
compared to $68 in 2Q 2004 in interest, dividends and capital gains income from
investing cash balances. 1H 2005 interest, dividends and capital gains income
was $233 compared to $116 in 1H 2004. UTMD also received $25 and $7 in 2Q
2005 and 2Q 2004, respectively, in rental income from leasing underutilized
property to others. Royalty income, which UTMD receives from licensing its
technology to other companies, was approximately the same for the same periods
in both years.

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f)
Earnings Before Income Taxes

2Q
2005 earnings before income taxes (EBT) decreased to $2,684 compared to $2,806
in 2Q 2004. 1H 2005 EBT was $5,490 compared to $11,300 in 1H 2004. 2Q and 1H
2005 EBT margin was 38.2% and 40.1% of sales, respectively, compared to 41.1%
and 84.1% in 2Q and 1H 2004, respectively.

g)
Net Income and Earnings per Share

UTMDs
net income after taxes increased to $1,887 in 2Q 2005 compared to $1,841 in 2Q
2004, and decreased to $3,856 in 1H 2005 compared to $7,016 in 1H 2004. Net
profit margins (NPM), net income (after tax) expressed as a percentage of sales,
were 26.9% in 2Q 2005 compared to 27.0% in 2Q 2004, and 28.2% in 1H
2005 compared to 52.2% in 1H 2004. The net profit margin in 1H 2004 was unusual
because the recognition of $6,060 in non-operating income from patent
infringement damages was unrelated to sales during the period. The income tax
provision rate in 2Q and 1H 2005 was 29.7% and 29.8%, respectively, compared to
34.4% and 37.9% in 2Q and 1H 2004, respectively. 2Q and 1H 2005 net income
relative to EBT was aided by a significantly lower income tax provision as a
result of The American Jobs Creation Act of 2004 (the Act) enacted in October
2004 which allows a temporary tax deduction on repatriated foreign earnings,
which must be accomplished in 2005. UTMD previously included a deferred tax
liability in reported results, anticipating that profits generated by
its Ireland facility would eventually be repatriated triggering
additional U.S. income taxes.  Although UTMD expects that the lower
income tax provision resulting from the Act will impact all calendar quarters in
2005, it is a non-recurring tax benefit limited to the year 2005.

Diluted
2Q 2005 Earnings per Share (EPS) increased to $.45 from $.38 in 2Q 2004.
Diluted 1H 2005 EPS decreased to $.90 from $1.46 in
1H 2004. 2Q and 1H 2005 weighted average number of diluted common shares (the
number used to calculate diluted EPS) were 4,229,000 and 4,277,000 compared to
4,794,000 and 4,819,000 shares in 2Q and 1H 2004. The Company repurchased
185,613 shares in 2Q 2005 and 238,737 shares in 1H 2005. Exercises of employee
options in 2Q 2005 added 43,952 shares, and 61,697 shares in 1H 2005 (net of
shares swapped by employees as payment for the option exercise cost). Increases
and decreases in UTMDs stock price impact EPS growth as a result of the
dilution calculation for unexercised options with exercise prices below the
average stock market value during each period. The dilution calculation added
219,000 and 224,000 shares to actual weighted average shares outstanding in 2Q
2005 and 1H 2005 respectively, compared to 302,000 and 315,000 in 2Q and 1H
2004. The decrease in dilution is primarily due to fewer unexercised options
outstanding. Actual outstanding common shares as of the end of 2Q 2005 were
3,928,400 compared to 4,522,500 at the end of 2Q 2004.

h)
Return on Equity

UTMD
ROE is equal to net profits divided by average shareholder equity during a
specific time period. Annualized ROE in 1H 2005 was 22%, compared to 36% in 1H
2004. The higher ROE in 1H 2004 was due primarily to non-operating income
resulting from resolution of the Tyco patent infringement.

Liquidity
and Capital Resources

i)
Cash flows

Net
cash provided by operating activities, including adjustments for depreciation
and other non-cash operating expenses, along with changes in working capital,
totaled $2,476 in 1H 2005 compared to $23,830 in 1H 2004. The two major changes
in operating assets and liabilities in 1H 2004 were related to the accrual and
receipt of about $31 million from Tyco International for patent infringement,
and taxes on that income. The largest change in 1H 2005 was a $1,727 decrease in
accrued expenses, due mainly to a decrease in the litigation expense
reserve as expenses related to the FDA lawsuit were paid.

The
Companys use of cash for investing activities was primarily as a result of
purchases of short-term investments, in an effort to make prudent use of
cash balances. UTMD expended $3,300 in 1H 2005 on such transactions
compared to purchases of $22,103 in 1H 2004. UTMD spent $1,012 in 2Q 2004 to
acquire Abcorp, its vendor for external fetal monitoring belts. In 1H 2005, UTMD
received $5,760 from selling short-term investments compared to $2,168 in 1H
2004. UTMD invested $230 and $259 in 1H 2005 and 2004, respectively, in property
and equipment purchases. This rate of investing in new property and equipment is
required to keep facilities, equipment and tooling in good working condition.

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In
1H 2005, UTMD received $541 and issued 61,697 shares of stock upon the exercise
of employee stock options. Employees exercised a total of 69,961 option shares
in 1H 2005, with 8,264 shares immediately being retired as a result of the
individual trading the shares in payment of the exercise price of the options
and related tax withholding requirements. UTMD paid $47 to meet tax withholding
obligations in 1H 2005, compared to $6 in 1H 2004. UTMD repurchased
238,737 shares of stock in the open market at a cost of $5,171 during
1H 2005. Option exercises in 1H 2005 were at an average price of $9.64 per
share. Share repurchases in the open market were at an average cost of $21.66
per share, including commissions and fees.

In
1H 2004, the Company received $1,012 from issuing 103,562 shares of stock on the
exercise of employee stock options. 1,200 additional shares were retired upon an
employee trading those shares in payment of the stock option exercise price.
UTMD repurchased 124,843 shares of stock in the open market at a cost of $3,057
during 1H 2004.

UTMD
did not utilize its bank line of credit during either period. UTMD paid $1,230 in cash
dividends during 1H 2005.

Management believes that future income from operations and
effective management of working capital will provide the liquidity needed
to finance growth plans. Planned capital expenditures during the remainder of
2005 are expected to be approximately $300 to keep facilities, equipment and
tooling in good working order. In addition to capital expenditures, UTMD plans
to use cash in 2005 for selective infusions of technological, marketing or
product manufacturing rights to broaden the Companys product offerings;
for litigation expenses; for continued share repurchases if the price of the
stock remains undervalued; and if available for a reasonable price, acquisitions
that may strategically fit UTMDs business and are accretive to
performance.

j)
Assets and Liabilities

June
30, 2005 total assets were $4,347 lower than at December 31, 2004, while current
assets decreased $3,687. The decreases resulted primarily from a $3,626 decrease
in cash and investments. Cash and investments declined due to share repurchases,
and payment of litigation costs and dividends.

Working
capital was $18,150 at June 30, 2005, a $2,044 decrease from 2004 year-end. On
the liabilities side, total liabilities were $1,740 lower and current
liabilities $1,643 lower, due to decreases in accrued expenses. UTMDs
current ratio increased to 7.7 at the end of 1H 2005 from 5.7 at
year-end 2004.

Inventories
decreased $209 during 1H 2005, well within managements targets
for current sales activity. Average inventory turns improved to 4.3 times in 2Q
2005 from 4.1 times in the prior quarter, and 3.3 times in 2Q 2004.

Receivables
balances as of June 30, 2005 were $205 higher than at the beginning of the year.
2Q 2005 ending receivables yielded average days in receivables of 50
days, well within managements target of 55 days. At the end of 2004 and at
June 30, 2004, days in receivables were 51 and 47, respectively.

Net
property and equipment decreased $635 in 1H 2005 because depreciation of $324
exceeded new equipment purchases of $230, and due to a $591 decrease
in the dollar-denominated value of Ireland P&E. The U.S. dollar increased
about 13% relative to the EURO during 1H 2005. Goodwill remained the same. Net
intangible assets, excluding goodwill, decreased $25 as a result of amortization
of patents and other intellectual property. At June 30, 2005, net intangible
assets including goodwill were 21% of total assets, an increase from 19% at
year-end 2004.

As
of June 30, 2005, UTMDs total debt ratio (total liabilities/ total assets)
decreased to 9% from 12% on December 31, 2004.

k)
Management's Outlook.

As
outlined in its December 31, 2004 10-K/A Report, UTMD's plan for 2005 is to

a)
clear up its unresolved QSR status with the U.S. FDA that has hindered sales,
slowed new product development, stymied business development, clouded
UTMDs previously excellent reputation for quality products and consumed an
inordinate amount of human and financial capital since 2001;

b)
continue outstanding operating performance;

c) actively
look for new acquisitions to facilitate sales growth; and

d) utilize current
cash balances in shareholders best long-term interest.

1H 2005 performance
demonstrated progress toward achieving the above 2005 plan.

Part
II Item 1 of this report describes the current status of
legal proceedings regarding UTMDs dispute with the FDA. The U.S.
Court will determine if UTMD is violating any provisions of the QSR. The FDA has
the burden to prove its allegations. UTMD and its highly reputable independent
experts maintain that UTMD has been and is in substantial compliance with all
applicable government regulations.

If
the Court agrees with any of the FDA allegations, the Companys
responsibility would be to implement procedures that satisfy the Courts
determination. Because the FDA is not claiming that the Companys devices
are unsafe or ineffective, or do not meet predetermined specifications, UTMD and
its lawyers believe that an injunction to cease manufacturing and shipping
products is not a realistic possibility, even if the Court agrees with FDA
allegations. Because of this and because UTMD does not understand the factual
basis for FDAs allegations, the Company has not spent resources analyzing
the potential financial impact of the relief being sought by the FDA.

11

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There
is not and never has been an imminent public health risk relating to use of
UTMDs products. The FDA has a variety of remedies to address device risks
without any resort to the courts. None of those remedies has ever been applied
to any UTMD device, because none has been justified. The FDA Denver District
Office shut off communication with UTMD after 2001 while it performed inspection
after inspection in an attempt to build a case. The case that was finally filed
involves alleged QSR violations that the agency has been unable to substantiate,
despite an effort coordinated by the CDRH including four comprehensive
inspections, some involving national expert FDA inspectors. An
independent expert, a nearly thirty year FDA compliance veteran and former
District Director, retained by UTMD, has alleged misconduct within FDA.

There
continue to be no FDA restrictions on UTMDs production and distribution of
its products, the clinical acceptance and differentiation of which have been
clearly demonstrated by continued customer demand through 2Q 2005.

l)
Accounting Policy Changes.

In
December 2004, the Financial Accounting Standards Board (FASB) issued SFAS 123
(revised 2004), Accounting for Stock Based Compensation. This
statement supersedes APB Opinion No. 25, Accounting for Stock Issued to
Employees. This revised statement establishes standards for the accounting
of transactions in which an entity exchanges its equity instruments for goods
and services, including the grant of stock options to employees and directors.
The revised Statement is effective for UTMD starting in 1Q 2006, and will
require the Company to recognize compensation cost based on the grant date fair
value of the equity instruments it awards. The Company currently accounts for
those instruments under the recognition and measurement principles of APB
Opinion 25, including the disclosure-only provisions of the original SFAS 123.
Accordingly, no compensation cost from issuing equity instruments has been
recognized in the Companys financial statements. The Company estimates
that the required adoption of SFAS 123 (R) in first quarter 2006 will have a
negative impact on its consolidated financial statements. See note 3, above for
an estimate of the impact this Statement would have had on the Companys
net income for the periods covered by this report. The Company estimates that
adoption of this Statement will result in about $150 additional compensation
expense during the year 2006 related to options outstanding on the date of this
report. The Company intends to continue granting stock options or other equity
instruments, although at a lower level than in the past, which will increase the
amount of stock based compensation in 2006 and beyond. The Board of
Directors action on May 6, 2005 to accelerate the vesting of under water
options reduced the financial statement impact of this accounting policy change.

Item 3.
Quantitative and Qualitative Disclosures about Market Risk

UTMD
has manufacturing operations, including related assets, in Ireland denominated
in the EURO, and sells products under agreements denominated in various Western
European currencies. The EURO and other currencies are subject to exchange rate
fluctuations that are beyond the control of UTMD. The exchange rate was 0.8282
EURO per USD as of June 30, 2005, and 0.8218 EURO per USD as of June 30, 2004.
UTMD manages its foreign currency risk without separate hedging transactions by
converting currencies to USD as transactions occur.

Item 4.
Controls and Procedures

The
companys management, under the supervision and with the participation of
the Chief Executive Officer and the Chief Financial Officer, evaluated the
effectiveness of the companys disclosure controls and procedures (as
defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as
amended). Based on this evaluation, the Chief Executive Officer and Chief
Financial Officer concluded that, as of June 30, 2005, the
companys disclosure controls and procedures were effective.

There
were no changes in the companys internal controls over financial reporting
that occurred during the quarter ended June 30, 2005, that have materially
affected, or are reasonably likely to materially affect, the companys
internal controls over financial reporting.

12

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PART II -
OTHER INFORMATION

Item 1.
Legal Proceedings

The
Company may be a party from time to time in litigation incidental to its
business. Presently, there is no routine litigation for which the Company
believes the outcome may be material to its financial results.

On
August 9, 2004, the United States of America filed a lawsuit in The United
States District Court, Central District of Utah v. UTMD, Kevin L. Cornwell,
Chairman & CEO, and Ben D. Shirley, Vice President, Product Development
& Quality Assurance. The presiding judge is Judge Bruce R. Jenkins. The
government (FDA) is seeking a permanent injunction from alleged deviations of
the Quality System Regulation (QSR). The FDA did not seek a preliminary
injunction. The relief being sought is to enjoin the Company from manufacturing
and shipping products until it conforms with the QSR in a manner that is
acceptable to the FDA. The trial is scheduled to start August 30, 2005.

On
June 30, 2005 the Court indicated that it would issue an order to dismiss
UTMDs counterclaim for damages for abuse of process without prejudice. In
response, on July 15, 2005, UTMD filed an administrative claim under the Federal
Tort Claims Act with the U.S. Department of Health and Human Services.

Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds

The
following table details purchases by UTMD of its own securities during 2Q 2005.

ISSUER
PURCHASES OF EQUITY SECURITIES

|Period            |  |  | Total Numberof SharesPurchased (1) | AveragePrice Paidper Share | Total Number ofShares Purchased asPart of PubliclyAnnounced Plans orPrograms (1) | Maximum Number (orApproximate Dollar Value) ofShares that May be PurchasedUnder the Plans or Programs(1)
|----------------- |  |  | ---------------------------------- | -------------------------- | -------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------
|                 
|4/01/05 - 4/30/05 |  |  |                                    | 55,101                     |                                                                                  | $                                                                                                       
|5/01/05 - 5/31/05 |  |  |                                    | 22,242                     |                                                                                  |                                                                                                         
|6/01/05 - 6/30/05 |  |  |                                    | 108,270                    |                                                                                  |                                                                                                         
|                 
|Total             |  |  |                                    | 185,613                    |                                                                                  | $                                                                                                       

(1)   In
2Q 2005 UTMD repurchased the above shares pursuant to a continued open market
repurchase program initially announced in August 1992. Since 1992 through 2Q
2005, the Company has repurchased 6.2 million shares at an average cost of
$11.12 per share including broker commissions and fees in open market
transactions. In addition, the Company conducted tender offer transactions in
which it purchased an additional 2.8 million shares at an average cost of $9.76
per share including fees and administrative costs. In total, UTMD has
repurchased 9.0 million of its shares at an average price of $10.70 per share
since 1992. To complete the picture relating to current shares outstanding,
since 1992 the Companys employees and directors have exercised and
purchased 1.5 million option shares at an average price of $6.41 per share. All
options were awarded at the market value of the stock on the date of the award.

The
frequency of UTMDs open market share repurchases depends on the
availability of sellers and the price of the stock. The board of directors has
not established an expiration date or a maximum dollar or share limit for
UTMDs continuing and long term pattern of open market share repurchases.

The
purpose of UTMDs ongoing share repurchases is to maximize the value of the
Company for its continuing shareholders, and maximize its return on shareholder
equity by employing excess cash generated by effectively managing its business.
UTMD does not intend to repurchase shares that would result in terminating its
Nasdaq National Market listing.

13

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Item 6.
Exhibits

| | Exhibit # | SECReference # | Title of Document                                                                                                                               
| | --------- | -------------- | ------------------------------------------------------------------------------------------------------------------------------------------------
| | 1         | 31             | Certification of CEO pursuant to Rule 13a-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                            
| | 2         | 31             | Certification of Principal Financial Officer pursuant to Rule 13a-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002    
| | 3         | 32             | Certification of CEO pursuant to 18 U.S.C. ss.1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                        
| | 4         | 32             | Certification of Principal Financial Officer pursuant to 18 U.S.C. ss.1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

SIGNATURES

Pursuant
to the requirements of the Securities Exchanges Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.

|             | UTAH MEDICAL PRODUCTS, INC. REGISTRANT
|------------ | --------------------------------------
|             |                                       
|             |                                       
|Date: 8/5/05 | By: /s/ Kevin L. Cornwell             
|             | Kevin L. Cornwell      CEO            
|             |                                       
|Date: 8/5/05 | By: /s/ Greg A. LeClaire              
|             | Greg A. LeClaire      CFO             



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