Intuitive Surgical Announces Record $52.8 Million Second Quarter Revenue, Up 70%; $0.40 Earnings per Share
SUNNYVALE, CA, Jul 26, 2005 (MARKET WIRE via COMTEX) -- Intuitive Surgical, Inc. (NASDAQ: ISRG), the industry leader in surgical robotics, today reported second quarter 2005 sales of $52.8 million, increasing 70% from $31.1 million for the second quarter of 2004. Higher sales were driven by higher da Vinci(R) Surgical System shipments and continued recurring revenue growth.
Intuitive sold 26 da Vinci(R) Surgical Systems during the second quarter of 2005, compared to 19 in the second quarter of 2004. Second quarter 2005 system revenue increased to $28.5 million from $18.1 million during the second quarter of 2004.
Second quarter 2005 recurring revenue, consisting of instrument, accessory, service and training revenue, increased to $24.3 million from $13.0 million during the second quarter of 2004. Recurring revenue growth resulted from a larger installed base of da Vinci(R) Surgical Systems and increased system usage.
Three Months Ended, Six Months Ended,
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6/30/05 6/30/04 Increase 6/30/05 6/30/04 Increase
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Revenue ($ Millions)
Systems $28.5 $18.1 $10.4 $49.8 $32.6 $17.2
Instruments/Accessories $16.2 $ 7.8 $ 8.4 $29.1 $15.7 $13.4
Service/Training $ 8.1 $ 5.2 $ 2.9 $15.5 $ 9.8 $ 5.7
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$52.8 $31.1 $21.7 $94.4 $58.1 $36.3
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da Vinci(R) Surgical
System Unit Sales 26 19 7 45 33 12
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Second quarter 2005 operating income increased to $15.3 million, up from $4.5 million reported for the second quarter of 2004.
The company reported second quarter 2005 net income of $14.8 million, or $0.40 per diluted share, compared to $4.8 million, or $0.14 per diluted share for the second quarter of 2004.
Intuitive was $9.1 million cash flow positive for the second quarter of 2005, ending the period with $158.5 million in cash, cash equivalents and short-term investments.
Commenting on the announcement, Lonnie Smith, Chairman and CEO of Intuitive Surgical, said, "We are pleased with our second quarter revenue growth and financial results. Our continued momentum reflects the ongoing adoption of robotic surgery and the 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 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.
The Aesop(R) 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(R) 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(R), da Vinci(R), InSite(R), EndoWrist(R), Hermes(R), and Aesop(R) are registered trademarks of Intuitive Surgical, Inc.
INTUITIVE SURGICAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended, Six Months Ended,
------------------- -------------------
6/30/05 6/30/04 6/30/05 6/30/04
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Sales:
Products $ 44,651 $ 25,850 $ 78,834 $ 48,321
Services 8,105 5,207 15,536 9,795
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Total sales 52,756 31,057 94,370 58,116
Cost of sales:
Products 13,649 9,260 24,804 18,073
Services 3,480 2,169 6,676 4,579
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Total cost of sales 17,129 11,429 31,480 22,652
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Gross profit 35,627 19,628 62,890 35,464
Gross profit % 67.5% 63.2% 66.6% 61.0%
Operating costs and expenses:
Selling, general,
and administrative 15,934 11,535 30,138 21,778
Research and development 4,355 3,626 8,500 8,936
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Total operating costs
and expenses 20,289 15,161 38,638 30,714
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Income from operations 15,338 4,467 24,252 4,750
Other income, net 954 626 1,677 1,232
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Income before income
tax provision 16,292 5,093 25,929 5,982
Income tax provision 1,508 263 2,041 299
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Net income $ 14,784 $ 4,830 $ 23,888 $ 5,683
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Net earnings per share -
Basic $ 0.42 $ 0.14 $ 0.69 $ 0.17
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Diluted $ 0.40 $ 0.14 $ 0.64 $ 0.17
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Weighted average shares
outstanding used to compute
net earnings per share -
Basic 34,790 33,559 34,655 33,421
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Diluted 37,244 34,210 37,133 34,170
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INTUITIVE SURGICAL, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(Unaudited)
6/30/05 12/31/04 (a)
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Assets
Current assets:
Cash and cash equivalents 7,972 5,771
Investments 150,570 126,267
Accounts receivable, net 39,646 35,443
Inventory 8,836 5,966
Prepaids 4,652 3,032
Restricted cash 319 205
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Total current assets 211,995 176,684
Property and equipment, net 29,291 27,065
Restricted cash - 319
Intangible assets, net 5,288 6,221
Goodwill 142,407 143,332
Other assets 541 608
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Total assets $ 389,522 $ 354,229
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Liabilities and stockholders' equity
Current liabilities:
Accounts payable 5,382 4,485
Accrued compensation and employee benefits 9,030 10,321
Deferred revenue 18,396 15,372
Restructuring accrual 397 541
Other accrued liabilities 7,457 7,057
Current portion of notes payable 171 609
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Total current liabilities 40,833 38,385
Deferred revenue 337 505
Other accrued liabilities 342 407
Stockholders' equity
Common stock 35 34
Preferred stock - -
Additional paid-in capital 440,064 430,362
Accumulated deficit (91,235) (114,936)
Treasury stock - (136)
Accumulated other comprehensive loss (854) (392)
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Total stockholders' equity 348,010 314,932
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Total liabilities and stockholders' equity $ 389,522 $ 354,229
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(a) - Derived from the audited financial statements included in the
Company's Annual Report on Form 10-K for the year ended December 31, 2004,
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, Inc.