Intuitive Surgical Announces $140.2 Million Second Quarter Revenue, Up 61 Percent; Net Income Increases 84 Percent
SUNNYVALE, Calif., July 19, 2007 (PRIME NEWSWIRE) -- Intuitive Surgical, Inc. (Nasdaq:ISRG), the industry leader in surgical robotics, today reported second quarter 2007 revenue of $140.2 million, increasing 61% from $87.0 million for the second quarter of 2006. Revenue growth continues to be driven by strong procedure adoption.
Second quarter 2007 instruments and accessories revenue increased 76% to $45.8 million from $26.1 million during the second quarter of 2006. Second quarter 2007 da Vinci (r) Surgical Systems revenue increased 54% to $74.1 million from $48.1 million during the second quarter of 2006. Second quarter 2007 service and training revenue increased 59% to $20.3 million from $12.8 million during the second quarter of 2006.
Three Months Ended Six Months Ended
June 30, June 30,
Revenue ------------------------ ------------------------
($ Millions) 2007 2006 Increase 2007 2006 Increase
----------- ------ ------ -------- ------ ------ --------
Instruments/
Accessories $ 45.8 $ 26.1 $ 19.7 $ 86.1 $ 49.4 $ 36.7
Systems 74.1 48.1 $ 26.0 130.3 90.5 $ 39.8
Service/Training 20.3 12.8 $ 7.5 38.1 24.4 $ 13.7
------------------------ ------------------------
$140.2 $ 87.0 $ 53.2 $254.5 $164.3 $ 90.2
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Second quarter 2007 operating income increased 84% to $45.0 million, compared with $24.5 million for the second quarter of 2006. Operating results for the second quarter of 2007 included $9.4 million of stock-based compensation expense in accordance with the Financial Accounting Standards Board SFAS 123R, compared with $6.5 million for the second quarter of 2006.
Second quarter 2007 net income increased 84% to $30.7 million, compared with $16.7 million for the second quarter of 2006. Diluted earnings per share increased to $0.79 for the second quarter of 2007 from $0.44 for the second quarter of 2006.
Intuitive ended the second quarter of 2007 with cash, cash equivalents and investments of $448 million, up $117 million from December 31, 2006.
Commenting on the announcement, Lonnie Smith, Chairman and CEO of Intuitive Surgical, said, "We are pleased with our strong second quarter revenue and income growth. Our procedure momentum reflects the compelling value that the da Vinci(r) Surgical System delivers to hospitals and patients."
The Company will also announce these results at a conference call today at 1:30 pm PDT. The dial-in numbers for the call are 877-909-3508 for participants located in the U.S. and 517-645-6051 for participants located outside the U.S. The passcode is ISRG and the meeting leader is Mr. Lonnie Smith. To access financial information that will be discussed on the call, please visit Intuitive Surgical's website at www.intuitivesurgical.com.
About Intuitive's Products:
The da Vinci(r) Surgical System consists of a surgeon's viewing and control console having an integrated, high-performance InSite(r) 3-D, high definition vision system, a patient-side cart consisting of three or four robotic arms that position and precisely maneuver endoscopic instruments and an endoscope, and a variety of articulating EndoWrist(r) Instruments. By integrating computer-enhanced technology with surgeons' technical skills, Intuitive believes that its system enables surgeons to perform better surgery in a manner never before experienced. The da Vinci(r) Surgical System seamlessly and directly translates the surgeon's natural hand, wrist and finger movements on instrument controls at the surgeon's console outside the patient's body into corresponding micro-movements of the instrument tips positioned inside the patient through small puncture incisions, or ports.
Intuitive(r), da Vinci(r), da Vinci(r) S(tm), InSite(r), and EndoWrist(r) are trademarks or registered trademarks of Intuitive Surgical, Inc.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are necessarily estimates reflecting the best judgment of our management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. These forward-looking statements should, therefore, be considered in light of various important factors, including the following: timing and success of product development and market acceptance of developed products; regulatory approvals, clearances and restrictions; guidelines and recommendations in the health care and patient communities; intellectual property positions and litigation; competition in the medical device industry and in the specific markets of surgery in which Intuitive Surgical operates; and unanticipated manufacturing disruptions; delays in regulatory approvals of new manufacturing facilities or the inability to meet demand for products. Words such as "estimate," "project," "plan," "intend," "expect," "anticipate," "believe" and similar expressions are intended to identify forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We undertake no obligation to publicly update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
INTUITIVE SURGICAL, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Three months Ended Six months Ended
June 30, June 30,
------------------- -------------------
2007 2006 2007 2006
-------- -------- -------- --------
Revenue:
Products $119,885 $ 74,211 $216,334 $139,880
Services 20,364 12,814 38,144 24,403
-------- -------- -------- --------
Total revenue 140,249 87,025 254,478 164,283
Cost of revenue:
Products 35,656 21,869 64,762 41,791
Services 10,485 6,179 19,100 11,835
-------- -------- -------- --------
Total cost of revenue* 46,141 28,048 83,862 53,626
Gross profit 94,108 58,977 170,616 110,657
Operating expenses:
Selling, general and
administrative 38,883 27,265 72,828 51,075
Research and development 10,192 7,205 18,416 13,351
-------- -------- -------- --------
Total operating expenses* 49,075 34,470 91,244 64,426
Income from operations 45,033 24,507 79,372 46,231
Interest and other
income, net 5,232 3,255 9,840 5,458
-------- -------- -------- --------
Income before income taxes 50,265 27,762 89,212 51,689
Provision for income taxes 19,602 11,080 34,747 20,549
-------- -------- -------- --------
Net lncome $ 30,663 $ 16,682 $ 54,465 $ 31,140
======== ======== ======== ========
Earnings per share:
Basic $ 0.81 $ 0.45 $ 1.45 $ 0.85
======== ======== ======== ========
Diluted $ 0.79 $ 0.44 $ 1.41 $ 0.82
======== ======== ======== ========
Shares used in
computing earnings
per share:
Basic 37,636 36,684 37,463 36,532
======== ======== ======== ========
Diluted 38,657 38,124 38,528 37,974
======== ======== ======== ========
* Includes stock compensation expense of $1.5 million and $1.0
million in total cost of revenue and $7.9 million and $5.5 million
in total operating expenses for the three months ended June 30,
2007 and 2006, respectively; $2.7 million and $1.8 million in
total cost of revenue and $14.8 million and $9.7 million in total
operating expenses for the six months ended June 30, 2007 and
2006, respectively.
INTUITIVE SURGICAL, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
6/30/2007 12/31/06
--------- --------
Cash, cash equivalents, and investments $447,512 $330,296
Accounts receivable, net 105,649 94,680
Inventory 24,040 24,295
Property and equipment, net 62,040 59,939
Goodwill 118,207 118,240
Deferred tax assets 34,118 31,677
Other assets 17,132 12,663
-------- --------
Total assets $808,698 $671,790
======== ========
Accounts payable and other
accrued liabilities $ 53,956 $ 44,700
Deferred revenue 43,393 37,385
-------- --------
Total liabilities 97,349 82,085
Stockholders' equity 711,349 589,705
-------- --------
Total liabilities and
stockholders' equity $808,698 $671,790
======== ========
CONTACT: Intuitive Surgical, Inc.
Ben Gong
408-523-2175
Sarah Norton
408-523-2161