Intuitive Surgical Announces $21.1 Million Final Fourth Quarter Revenue, up 32%; Gross Margin Reaches 55%
Full year 2002 sales totaled $72.0 million, up 39% from $51.7 million in 2001. Recurring revenue totaled $15.1 million in 2002, compared to $7.0 million in 2001. Intuitive shipped 60 total da Vinci Surgical Systems during fiscal 2002 compared to 49 in the previous year. The following table compares fourth quarter and fiscal year 2002 revenue to the prior year.
Q402 Q401 Incr. FY02 FY01 Incr.
Revenue ($ Millions)
Systems $16.4 $13.7 $2.7 $56.9 $44.7 $12.2
Instruments/Accys $ 3.2 $ 1.6 $1.6 $10.1 $ 5.0 $ 5.1
Service $ 1.5 $ 0.7 $0.8 $ 5.0 $ 2.0 $ 3.0
----- ----- ----- ----- ----- -----
$21.1 $16.0 $5.1 $72.0 $51.7 $20.3
System Population
Placements 17 15 2 60 49 11
Cumulative Placements 149 89 60 149 89 60
Gross margin for the fourth quarter of 2002 was 55.0%, compared with 42.3% for
the fourth quarter of 2001. Fourth quarter 2001 gross margin was negatively
impacted by $1 million due to a non-routine royalty charge taken to cost of
sales. Excluding the impact of this item, fourth quarter 2001 gross margin would
have been 48.5%. Full year 2002 gross margin was 52.0% compared to 45.4% in
2001. Improved 2002 gross margin was driven by a higher da Vinci Surgical System
average selling price and improved manufacturing efficiency.
Net loss for the fourth quarter 2002 was $2.6 million, or ($0.07) per share compared to $4.3 million, or ($0.12) per share during the fourth quarter 2001. Full year 2002 net loss was $18.4 million, or ($0.51) per share compared to $16.7 million, or ($0.47) per share in fiscal 2001.
Intuitive was cash positive during the fourth quarter 2002, ending the quarter with $50.8 million in cash, up $2.3 million from the previous quarter end.
Commenting on the announcement, Lonnie Smith, President and CEO of Intuitive Surgical said: "We are pleased with another record quarter and our improving gross margins. We continue to enjoy strong recurring revenue momentum and with our recent additional cardiac clearances, we look forward to continued growth in system sales and usage."
The company will also announce these results at a conference call today at 10:00 AM PT. The dial-in numbers for this call are 877-909-3508 for U.S. calls and 484-630-4228 for international calls. The passcode is ISRG and the meeting leader is Mr. Lonnie Smith.
About the da Vinci Surgical System:
The da Vinci Surgical System consists of a surgeon's viewing and control console having an integrated, high-performance InSite 3-D vision system, a patient-side cart consisting of three robotic arms that position and precisely maneuver endoscopic instruments and an endoscope, and a variety of articulating EndoWrist 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 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.
The statements contained in this release may be deemed to contain "forward-looking statements." Such statements are indicated by words or phrases such as "anticipate," "estimate," "projects," "believes," "intends," "expects" and similar words and phrases. Actual results may differ materially from those expressed or implied in any forward-looking statement as a result of certain risks and uncertainties, including, without limitation, competition and market acceptance of the Company's products, ability to obtain regulatory approvals and third-party reimbursement, ability to raise additional capital and other risks and uncertainties detailed in the Company's Securities and Exchange Commission filings. Prospective investors are cautioned not to place undue reliance on such forward-looking statements.
Intuitive(R), da Vinci(TM), InSite(TM), and EndoWrist(TM) are trademarks of Intuitive Surgical, Inc.
Intuitive Surgical, Incorporated
Consolidated Statements of Operations
(in Thousands, Except Per Share Data)
Three months ended
Dec. 31, Dec.31,
2002 2001
Sales $21,145 $16,013
Cost of sales 9,512 9,246
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Gross profit 11,633 6,767
Operating costs and expenses:
Research and development 4,026 3,791
Selling, general and administrative 10,602 8,034
------- -------
Total operating costs and expenses 14,628 11,825
Loss from operations (2,995) (5,058)
Interest income/(expense) 395 806
------- -------
Net loss $(2,600) $(4,252)
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Weighted average shares outstanding
used to compute net loss per share 36,641 36,147
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Loss per share - basic and diluted $ (0.07) $ (0.12)
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Intuitive Surgical, Incorporated
Consolidated Statements of Operations
(in Thousands, Except Per Share Data)
Fiscal year ended
Dece. 31, Dec. 31,
2002 2001
Sales $ 72,022 $ 51,673
Cost of sales 34,584 28,218
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Gross profit 37,438 23,455
Operating costs and expenses:
Research and development 16,793 13,851
Selling, general and administrative 40,864 29,987
------- -------
Total operating costs and expenses 57,657 43,838
Loss from operations (20,219) (20,383)
Interest income/(expense) 1,798 3,683
------- -------
Net loss $(18,421) $(16,700)
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Weighted average shares outstanding
used to compute net loss per share 36,458 35,815
------- -------
Loss per share - basic and diluted $ (0.51) $ (0.47)
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Intuitive Surgical, Incorporated
Consolidated Balance Sheets
(in Thousands)
Dec. 31, Dec. 31,
2002 2001 *
Assets
Current assets:
Cash, cash equivalents and short-term
investments $ 50,839 $ 66,661
Accounts receivable, net 16,887 13,248
Inventories, net 8,738 6,182
Prepaid expenses 2,161 3,128
------- -------
Total current assets 78,625 89,219
Property and equipment, net 10,388 7,834
Other assets 2,568 3,308
------- -------
Total assets $ 91,581 $ 100,361
======= =======
Liabilities and stockholders' equity
Current Liabilities:
Accounts payable $ 9,282 $ 8,300
Accrued compensation and employee benefits 4,666 2,537
Warranty provision 2,269 1,831
Accrued Royalty -- 1,000
Accrued liabilities 3,497 2,128
Deferred revenue 4,838 3,870
Current portion of notes payable 1,511 1,631
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Total current liabilities 26,063 21,297
Notes payable 1,838 771
Stockholders' equity
Common stock 36 36
Additional paid-in capital 191,020 188,962
Deferred compensation (223) (886)
Accumulated deficit (128,791) (110,370)
Accumulated other comprehensive income 1,638 551
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Total stockholders' equity 63,680 78,293
Total liabilities and stockholders' equity $ 91,581 $ 100,361
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* Derived from the audited financial statements included in our
annual report on form 10K for the fiscal year ended December 31,
2001 but does not include all of the information and footnotes
required by accounting principles generally accepted in the United
States for complete financial statements.
CONTACT: Intuitive Surgical, Inc. Ben Gong, 408/523-2175 Sarah Norton, 650/523-2161