Intuitive Surgical Announces $219.2 Million Second Quarter Revenue, Up 56 Percent
SUNNYVALE, Calif., July 22, 2008 (PRIME NEWSWIRE) -- Intuitive Surgical, Inc. (Nasdaq:ISRG), the industry leader in surgical robotics, today reported second quarter 2008 revenue of $219.2 million, increasing 56% from $140.2 million for the second quarter of 2007. Second quarter 2008 revenue growth was driven by continued robotic procedure adoption and higher da Vinci(r) Surgical System sales.
Second quarter 2008 instruments and accessories revenue increased 61% to $73.6 million from $45.8 million during the second quarter of 2007. Second quarter 2008 da Vinci(r) Surgical Systems revenue increased 57% to $116.2 million from $74.1 million during the second quarter of 2007. Second quarter 2008 service and training revenue increased 44% to $29.4 million from $20.3 million during the second quarter of 2007.
Three Months Ended Six Months Ended
June 30, June 30,
------------------------ ------------------------
Revenue
($Millions) 2008 2007 Increase 2008 2007 Increase
------------- ------ ------ ------ ------ ------ ------
Instruments/
Accessories $ 73.6 $ 45.8 $ 27.8 $135.5 $ 86.1 $ 49.4
Systems 116.2 74.1 42.1 215.3 130.3 85.0
Service/
Training 29.4 20.3 9.1 56.6 38.1 18.5
------ ------ ------ ------ ------ ------
$219.2 $140.2 $ 79.0 $407.4 $254.5 $152.9
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Second quarter 2008 operating income increased 74% to $78.2 million, compared with $45.0 million for the second quarter of 2007. Operating results for the second quarter of 2008 included $19.7 million of non-cash stock-based compensation expense in accordance with the Financial Accounting Standards Board SFAS 123R, compared with $9.4 million for the second quarter of 2007.
Second quarter 2008 net income increased 67% to $51.2 million, compared with $30.7 million for the second quarter of 2007. Diluted earnings per share increased to $1.28 for the second quarter of 2008 from $0.79 for the second quarter of 2007.
Intuitive ended the second quarter of 2008 with cash, cash equivalents and investments of $740 million, up $104 million from December 31, 2007.
Commenting on the announcement, Lonnie Smith, Chairman and CEO of Intuitive Surgical, said, "We are pleased with our second quarter revenue and earnings growth. These results reflect the continued adoption of the da Vinci Surgical System platform across a broadening group of surgical procedures."
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, 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,
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------
Revenue:
Products $189,780 $119,885 $350,731 $216,334
Services 29,409 20,364 56,652 38,144
-------- -------- -------- --------
Total revenue 219,189 140,249 407,383 254,478
Cost of revenue:
Products 50,036 35,656 94,888 64,762
Services 13,097 10,485 26,632 19,100
-------- -------- -------- --------
Total cost of revenue * 63,133 46,141 121,520 83,862
Gross profit 156,056 94,108 285,863 170,616
Operating expenses:
Selling, general and
administrative 57,504 38,883 106,138 72,828
Research and development 20,357 10,192 36,658 18,416
-------- -------- -------- --------
Total operating expenses * 77,861 49,075 142,796 91,244
Income from operations 78,195 45,033 143,067 79,372
Interest and other income, net 5,707 5,232 14,248 9,840
-------- -------- -------- --------
Income before income taxes 83,902 50,265 157,315 89,212
Provision for income taxes 32,720 19,602 61,352 34,747
-------- -------- -------- --------
Net lncome $ 51,182 $ 30,663 $ 95,963 $ 54,465
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Earnings per share:
Basic $ 1.32 $ 0.81 $ 2.48 $ 1.45
======== ======== ======== ========
Diluted $ 1.28 $ 0.79 $ 2.40 $ 1.41
======== ======== ======== ========
Shares used in computing
earnings per share:
Basic 38,773 37,636 38,677 37,463
======== ======== ======== ========
Diluted 39,980 38,657 39,914 38,528
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* Includes stock compensation expense of $2.9 million and $1.5
million in total cost of revenue and $16.8 million and $7.8
million in total operating expenses for the three months ended
June 30, 2008 and 2007, respectively; $5.2 million and $2.7
million in total cost of revenue and $29.1 million and $14.8
million in total operating expenses for the six months ended June
30, 2008 and 2007, respectively.
Intuitive Surgical, Inc.
Unaudited Condensed Consolidated Balance Sheets
(In Thousands)
6/30/2008 12/31/2007
---------- ----------
Cash, cash equivalents, and investments $ 739,782 $ 635,381
Accounts receivable, net 162,088 130,370
Inventory 42,594 32,416
Property and equipment, net 94,568 68,093
Goodwill 110,740 110,740
Deferred tax assets 32,459 24,577
Other assets 49,156 38,421
---------- ----------
Total assets $1,231,387 $1,039,998
========== ==========
Accounts payable and other
accrued liabilities $ 91,347 $ 96,632
Deferred revenue 66,053 54,692
---------- ----------
Total liabilities 157,400 151,324
Stockholders' equity 1,073,987 888,674
---------- ----------
Total liabilities and stockholders' equity $1,231,387 $1,039,998
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CONTACT: Intuitive Surgical, Inc.
Ben Gong
408-523-2175
Rae Covington
408-523-2161