Intuitive Surgical Announces $27.1 million First Quarter Revenue, Up 41%
First quarter 2004 system revenue increased to $14.6 million from $13.7 million during the first quarter 2003. Intuitive sold 14 da Vinci® Surgical Systems during the first quarter of 2004, equal to the first quarter of 2003. Intuitive also shipped 11 da Vinci® Surgical System fourth arms during the first quarter 2004. Intuitive ended the first quarter 2004 with 224 cumulative da Vinci® Surgical Systems sold, compared to 163 at the end of the first quarter 2003.
Three Months Ended,
3/31/04 3/31/03 Increase
Revenue ($Millions) ------- ------- --------
Systems $14.6 $13.7 $0.9
Instruments/Accessories 7.9 3.6 4.3
Service/Training 4.6 1.9 2.7
----- ----- ----
$27.1 $19.2 $7.9
===== ===== ====
Cumulative da Vinci® Surgical System Unit Sales
Placements 14 14 -
Cumulative Placements 224 163 61Gross profit increased to $15.8 million, or 58.5% of sales, for the first quarter 2004, compared to $9.7 million, or 50.6% of sales for the first quarter 2003. Higher first quarter 2004 gross profit margin resulted primarily from lower product material costs and productivity gains.
First quarter 2004 operating expenses of $15.6 million increased $2.7 million from first quarter 2003 operating expenses of $12.9 million. First quarter 2004 operating expenses included a $0.7 million charge taken in the first quarter 2004 to shut down the former Computer Motion Goleta, California site and consolidate operations at the Intuitive corporate headquarters in Sunnyvale, California.
Intuitive reported first quarter 2004 net income of $0.9 million, or $0.02 per diluted share, compared to a net loss of $2.3 million, or $0.12 per share for the first quarter 2003.
Intuitive ended the first quarter 2004 with $115.8 million in cash and short-term investments, up $2.9 million from $112.9 million at December 31, 2003.
Commenting on the announcement, Lonnie Smith, Chairman and CEO of Intuitive Surgical said, "We are pleased with our accelerating recurring revenue growth and our return to profitability this quarter, post our acquisition of Computer Motion. We expect to grow our profitability in future quarters."
The company will also announce these results at a conference call today at 1:30 PM PST. The dial-in numbers for the call are 877-909-3508 for participants located in the U.S. and 484-630-4228 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® 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 or four 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 Aesop® Endoscope Positioner is a voice-activated robotic arm that automates the critical task of endoscope positioning, providing the surgeon with direct control over a smooth, precise and stable view of the internal surgical field.
The Hermes® Control Center is a centralized system designed to voice control a series of networked "smart" medical devices.
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®, da Vinci®, InSite®, EndoWrist®, Hermes®, and Aesop® are registered trademarks of Intuitive Surgical, Inc.
INTUITIVE SURGICAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended,
3/31/04 3/31/03
------- -------
Sales:
Products $ 22,471 $ 17,292
Services 4,588 1,943
-------- --------
Total sales 27,059 19,235
Cost of sales:
Products 8,813 7,772
Services 2,410 1,722
-------- --------
Total cost of sales 11,223 9,494
-------- --------
Gross profit 15,836 9,741
Gross profit % 58.5% 50.6%
Operating costs and expenses:
Selling, general, and
administrative 10,243 9,453
Research and development 5,310 3,423
-------- --------
Total operating costs
and expenses 15,553 12,876
-------- --------
Income (loss) from operations 283 (3,135)
Other income, net 606 842
-------- --------
Income (loss) before income
tax provision 889 (2,293)
Income tax provision 36 -
-------- --------
Net income (loss) $ 853 $ (2,293)
======== ========
Net earnings (loss) per share -
Basic $ 0.03 $ (0.12)
======== ========
Diluted $ 0.02 $ (0.12)
======== ========
Weighted average shares
outstanding
used to compute net
earnings (loss)
per share -
Basic 33,282 18,431
======== ========
Diluted 34,137 18,431
======== ========
INTUITIVE SURGICAL, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
Unaudited
3/31/04 12/31/03 (a)
------- --------
Assets
Current assets:
Cash and cash equivalents 13,346 11,335
Short-term investments 102,489 101,614
Accounts receivable, net 27,324 26,820
Inventories, net 7,983 8,788
Prepaid expenses 3,338 3,203
Restricted cash equivalents 213 188
-------- --------
Total current assets 154,693 151,948
Property and equipment, net 9,384 10,288
Restricted cash equivalents 348 642
Intangible assets, net 7,622 8,089
Goodwill 143,332 143,106
Other assets 960 921
-------- --------
Total assets $316,339 $314,994
======== ========
Liabilities and stockholders'
equity
Current liabilities:
Accounts payable 4,670 5,894
Accrued compensation and
employee benefits 3,651 5,267
Warranty accrual 334 702
Restructuring accrual 1,160 971
Other accrued liabilities 6,413 8,432
Deferred revenue 12,998 11,345
Current portion of notes
payable 998 1,030
-------- --------
Total current liabilities 30,224 33,641
Long-term debt 435 695
Deferred revenue 991 1,148
Other accrued liabilities 534 553
Stockholders' equity
Common stock 33 33
Preferred stock - -
Additional paid-in capital 420,675 416,559
Deferred compensation (84) (99)
Accumulated deficit (137,561) (138,414)
Accumulated other
comprehensive income 1,092 878
-------- --------
Total stockholders'
equity 284,155 278,957
-------- --------
Total liabilities and stockholders'
equity $316,339 $314,994
======== ========
(a) - Derived from the audited financial statements included
in the Company's Annual Report on Form 10-K for the year
ended December 31, 2003 but does not include all of the
information and footnotes required by accounting
principles generally accepted in the United States for
complete financial statements. Contacts:
Ben Gong
408-523-2175
Sarah Norton
408-523-2161
Source: Intuitive Surgical