Intuitive Surgical Announces $189.4 Million Fourth Quarter Revenue, Up 68 Percent
SUNNYVALE, Calif., Jan. 31, 2008 (PRIME NEWSWIRE) -- Intuitive Surgical, Inc. (Nasdaq:ISRG), the industry leader in surgical robotics, today reported fourth quarter 2007 revenue of $189.4 million, increasing 68% from $112.6 million for the fourth quarter of 2006. Fourth quarter 2007 revenue growth was driven by continued robotic procedure adoption and higher da Vinci(r) Surgical System sales.
Fourth quarter 2007 instruments and accessories revenue increased 68% to $56.1 million from $33.3 million during the fourth quarter of 2006. Fourth quarter 2007 da Vinci(r) Surgical Systems revenue increased 73% to $108.6 million from $63.0 million during the fourth quarter of 2006. Fourth quarter 2007 service and training revenue increased 52% to $24.7 million from $16.3 million during the fourth quarter of 2006.
Revenue for the year ended December 31, 2007 totaled $600.8 million, increasing 61% from $372.7 million for the year ended December 31, 2006.
Three Months Ended Twelve Months Ended
December 31, December 31,
----------------------- -----------------------
Revenue ($ Millions) 2007 2006 Increase 2007 2006 Increase
-------------------- ------ ------ -------- ------ ------ --------
Instruments/
Accessories $ 56.1 $ 33.3 $ 22.8 $191.7 $111.7 $ 80.0
Systems 108.6 63.0 45.6 324.4 205.9 118.5
Service/Training 24.7 16.3 8.4 84.7 55.1 29.6
----------------------- -----------------------
$189.4 $112.6 $ 76.8 $600.8 $372.7 $228.1
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Fourth quarter 2007 operating income increased 107% to $73.4 million, compared with $35.4 million for the fourth quarter of 2006. Operating results for the fourth quarter of 2007 included $10.1 million of stock-based compensation expense in accordance with the Financial Accounting Standards Board SFAS 123R, compared with $6.8 million for the fourth quarter of 2006.
Fourth quarter 2007 net income increased 108% to $49.2 million, compared with $23.6 million for the fourth quarter of 2006. Diluted earnings per share increased to $1.24 for the fourth quarter of 2007 from $0.62 for the fourth quarter of 2006.
Net income for the year ended December 31, 2007 was $144.5 million, or $3.70 per diluted share, compared to net income of $72.0 million, or $1.89 per diluted share for the year ended December 31, 2006.
Intuitive ended the fourth quarter of 2007 with cash, cash equivalents and investments of $635 million, up $102 million from September 30, 2007 and $305 million from December 31, 2006.
Commenting on the announcement, Lonnie Smith, Chairman and CEO of Intuitive Surgical, said, "We are pleased with our fourth quarter revenue, income, and cash flow growth. Robotic surgery momentum is strong as we continue to partner with our customers to deliver increasing patient value by improving surgical outcomes and reduced surgical trauma."
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 888-323-7915 for participants located in the U.S. and 210-839-8500 for participants located outside the U.S. The passcode is ISRG and the meeting leader is Ms. Sarah Norton. 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, 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
----------------------------------
Dec. 31, Sept. 30 Dec. 31,
----------------------------------
2007 2007 2006
----------------------------------
Revenue:
Products $ 164,702 $ 135,053 $ 96,287
Services 24,744 21,851 16,280
---------- ---------- ----------
Total revenue 189,446 156,904 112,567
Cost of revenue:
Products 42,587 38,305 29,161
Services 11,659 10,129 8,461
---------- ---------- ----------
Total cost of revenue* 54,246 48,434 37,622
Gross profit 135,200 108,470 74,945
Operating expenses:
Selling, general and
administrative 45,694 40,163 31,050
Research and development 16,124 14,319 8,448
---------- ---------- ----------
Total operating expenses* 61,818 54,482 39,498
Income from operations 73,382 53,988 35,447
Interest and other income, net 8,432 12,220 4,181
---------- ---------- ----------
Income before income taxes 81,814 66,208 39,628
Provision for income taxes 32,660 25,289 15,987
---------- ---------- ----------
Net lncome $ 49,154 $ 40,919 $ 23,641
========== ========== ==========
Earnings per share:
Basic $ 1.28 $ 1.08 $ 0.64
========== ========== ==========
Diluted $ 1.24 $ 1.04 $ 0.62
========== ========== ==========
Shares used in computing earnings
per share:
Basic 38,364 38,033 37,009
========== ========== ==========
Diluted 39,756 39,271 38,241
========== ========== ==========
* Includes stock-based compensation expense of $1.6 million, $1.4
million and $1.0 million in total cost of revenue and $8.5
million, $7.3 million and $5.8 million in total operating expenses
for the three months ended December 31, 2007, September 30, 2007
and December 31, 2006, respectively.
INTUITIVE SURGICAL, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Year ended
December 31,
----------------------
2007 2006
----------------------
Revenue:
Products $ 516,089 $ 317,599
Services 84,739 55,083
---------- ----------
Total revenue 600,828 372,682
Cost of revenue:
Products 145,654 97,615
Services 40,888 27,231
---------- ----------
Total cost of revenue* 186,542 124,846
Gross profit 414,286 247,836
Operating expenses:
Selling, general and administrative 158,685 110,703
Research and development 48,859 29,778
---------- ----------
Total operating expenses* 207,544 140,481
Income from operations 206,742 107,355
Interest and other income, net 30,492 12,783
---------- ----------
Income before income taxes 237,234 120,138
Provision for income taxes 92,697 48,094
---------- ----------
Net lncome $ 144,537 $ 72,044
========== ==========
Earnings per share:
Basic $ 3.82 $ 1.96
========== ==========
Diluted $ 3.70 $ 1.89
========== ==========
Shares used in computing earnings per share:
Basic 37,831 36,737
========== ==========
Diluted 39,021 38,093
========== ==========
* Includes stock compensation expense of $5.8 million and $3.9
million in total cost of revenue and $30.5 million and $21.4
million in total operating expenses for the year ended December 31,
2007 and 2006, respectively.
INTUITIVE SURGICAL, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
12/31/2007 9/30/2007 12/31/2006
---------- ---------- ----------
Cash, cash equivalents, and
investments $ 635,381 $ 533,489 $ 330,296
Accounts receivable, net 130,370 120,456 94,680
Inventory 32,416 26,773 24,295
Property and equipment, net 68,093 64,153 59,939
Goodwill 110,740 112,170 118,240
Deferred tax assets 24,577 36,211 31,677
Other assets 38,421 18,995 12,663
---------- ---------- ----------
Total assets $1,039,998 $ 912,247 $ 671,790
========== ========== ==========
Accounts payable and other
accrued liabilities $ 96,632 $ 63,525 $ 44,700
Deferred revenue 54,692 48,571 37,385
---------- ---------- ----------
Total liabilities 151,324 112,096 82,085
Stockholders' equity 888,674 800,151 589,705
---------- ---------- ----------
Total liabilities and
stockholders' equity $1,039,998 $ 912,247 $ 671,790
========== ========== ==========
CONTACT: Intuitive Surgical
Ben Gong
408-523-2175
Sarah Norton
408-523-2446