Intuitive Surgical Announces Second Quarter Earnings
Second quarter of 2009 instruments and accessories revenue increased to
Second quarter of 2009 systems revenue was
Second quarter of 2009 service revenue increased to
Second quarter of 2009 operating income increased to
Second quarter of 2009 net income was
Intuitive ended the second quarter of 2009 with cash, cash equivalents and investments of
Commenting on the announcement,
The Company will also announce these results at a conference call today at
About Intuitive's Products
About the da Vinci(r) Surgical System
The da Vinci(r) System is a breakthrough surgical platform designed to enable complex surgery using a minimally invasive approach. The da Vinci(r) System consists of an ergonomic surgeon console, a patient-side cart with four interactive robotic arms, a high-performance vision system and proprietary EndoWrist(r) instruments. Powered by state-of-the-art robotic and computer technology, the da Vinci(r) System is designed to scale, filter and seamlessly translate the surgeon's hand movements into more precise movements of the EndoWrist(r) instruments. The net result is an intuitive interface with breakthrough surgical capabilities. By providing surgeons with superior visualization, enhanced dexterity, greater precision and ergonomic comfort, the da Vinci Surgical System makes it possible for more surgeons to perform minimally invasive procedures involving complex dissection or reconstruction. This ultimately has the potential to raise the standard of care for complex surgeries, translating into numerous potential patient benefits, including less pain, a shorter recovery and quicker return to normal daily activities.
Intuitive(r), da Vinci(r), da Vinci S(r), da Vinci(r) Si(tm) , InSite(r) and EndoWrist(r) are trademarks or registered trademarks of
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: the impact of the global economic recession and tightening credit market and related impact on health care spending; 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, INC.
UNAUDITED QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Three months ended
--------------------------------
June 30, March 31, June 30,
2009 2009 2008
--------- ---------- ---------
Revenue:
Instruments & Accessories $ 95,827 $ 79,528 $ 73,632
Systems 123,519 69,522 116,148
Services 41,278 39,322 29,409
--------- ---------- ---------
Total revenue (1) 260,624 188,372 219,189
Cost of revenue:
Products 55,542 45,266 50,036
Services 14,897 14,402 13,097
--------- ---------- ---------
Total cost of revenue (2) 70,439 59,668 63,133
Gross profit 190,185 128,704 156,056
Operating expenses:
Selling, general and
administrative 67,276 62,366 57,504
Research and development (3) 23,369 21,312 20,357
--------- ---------- ---------
Total operating expenses (2) 90,645 83,678 77,861
Income from operations 99,540 45,026 78,195
Interest and other income, net 5,171 5,016 5,707
--------- ---------- ---------
Income before income taxes 104,711 50,042 83,902
Provision for income taxes 42,323 21,900 32,720
--------- ---------- ---------
Net lncome $ 62,388 $ 28,142 $ 51,182
========= ========== =========
Earnings per share:
Basic $ 1.65 $ 0.72 $ 1.32
========= ========== =========
Diluted (1) $ 1.62 $ 0.72 $ 1.28
========= ========== =========
Shares used in computing earnings
per share:
Basic 37,897 38,883 38,773
========= ========== =========
Diluted 38,557 39,336 39,980
========= ========== =========
(1) The Company offered certain customers the opportunity to upgrade
the da Vinci S Surgical Systems purchased during the first
quarter of 2009 to the recently introduced da Vinci Si Surgical
Systems, at a discount from the list price of the upgrade. These
customers were also given the opportunity to return certain da
Vinci S accessories in exchange for da Vinci Si accessories. The
customers were given until June 30, 2009 to accept the offer.
Excluding the deferral of $20.1 million associated with these
offers, the total revenue and diluted earnings per share during
the three months ended March 31, 2009 was $208.5 million and
$1.02 , respectively.
In the second quarter of 2009, the Company recognized $13.8
million of revenue originally deferred in the first quarter and
associated with offers declined, upgrades completed or
accessories delivered. Excluding the $13.8 million of revenue
recognized, the total revenue and diluted earnings per share
during the three months ended June 30, 2009 was $246.8 million
and $1.40 , respectively.
The remaining revenue deferred in the first quarter of $6.3
million is expected to be recognized by December 31, 2009 .
(2) Includes stock compensation expense of $3.6 million, $3.3
million and $2.9 million in total cost of revenue and $21.0
million , $19.4 million and $16.8 million in total operating
expenses for the three months ended June 30, 2009 , March 31,
2009 and June 30, 2008 , respectively.
(3) Includes amortization of purchased intellectual property of $3.8
million, $3.5 million and $2.2 million in research and
development expenses for the three months ended June 30, 2009 ,
March 31, 2009 and June 30, 2008 , respectively.
INTUITIVE SURGICAL, INC.
UNAUDITED SIX MONTHS ENDED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Six months ended
June 30,
--------------------
2009 2008
--------------------
Revenue:
Instruments & Accessories $ 175,355 $ 135,473
Systems 193,041 215,258
Services 80,600 56,652
--------- ---------
Total revenue (1) 448,996 407,383
Cost of revenue:
Products 100,808 94,888
Services 29,299 26,632
--------- ---------
Total cost of revenue (2) 130,107 121,520
Gross profit 318,889 285,863
Operating expenses:
Selling, general and administrative 129,642 106,138
Research and development (3) 44,681 36,658
--------- ---------
Total operating expenses (2) 174,323 142,796
Income from operations 144,566 143,067
Interest and other income, net 10,187 14,248
--------- ---------
Income before income taxes 154,753 157,315
Provision for income taxes 64,223 61,352
--------- ---------
Net Income $ 90,530 $ 95,963
========= =========
Earnings per share:
Basic $ 2.36 $ 2.48
========= =========
Diluted (1) $ 2.32 $ 2.40
========= =========
Shares used in computing earnings per share:
Basic 38,390 38,677
========= =========
Diluted 38,946 39,914
========= =========
(1) The Company offered certain customers the opportunity to upgrade
the da Vinci S Surgical Systems purchased during the first quarter
of 2009 to the recently introduced da Vinci Si Surgical Systems,
at a discount from the list price of the upgrade. These customers
were also given the opportunity to return certain da Vinci S
accessories in exchange for da Vinci Si accessories. The customers
were given until June 30, 2009 to accept the offer.
During the three months ended March 31, 2009 , the Company had
deferred $20.1 million of revenue associated with these offers.
In the second quarter of 2009, the Company recognized $13.8
million of revenue associated with offers declined, upgrades
completed or accessories delivered.
Excluding the remaining revenue deferred of $6.3 million as of
June 30, 2009 , the total revenue and diluted earnings per share
during the six months ended June 30, 2009 was $455.3 million and
$2.42 , respectively. The remaining revenue deferred is expected
to be recognized by December 31, 2009 .
(2) Includes stock compensation expense of $7.0 million and $5.2
million in total cost of revenue and $40.4 million and $29.1
million in total operating expenses for the six months ended
June 30, 2009 and 2008, respectively.
(3) Includes amortization of purchased intellectual property of $7.2
million and $3.3 million in research and development expenses for
the six months ended June 30, 2009 and 2008, respectively.
INTUITIVE SURGICAL, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
6/30/2009 3/31/2009 12/31/2008
---------- ---------- ----------
Cash, cash equivalents, and
investments $ 902,061 $ 821,683 $ 901,873
Accounts receivable, net 175,216 139,341 170,107
Inventory 59,247 64,383 63,460
Property and equipment, net 122,584 122,571 117,021
Goodwill 110,740 110,740 110,740
Deferred tax assets 53,423 47,823 45,357
Other assets 78,011 79,512 66,066
---------- ---------- ----------
Total assets $1,501,282 $1,386,053 $1,474,624
========== ========== ==========
Accounts payable and other
accrued liabilities $ 140,589 $ 112,661 $ 128,606
Deferred revenue 89,509 98,272 79,252
---------- ---------- ----------
Total liabilities 230,098 210,933 207,858
Stockholders' equity 1,271,184 1,175,120 1,266,766
---------- ---------- ----------
Total liabilities and
stockholders' equity $1,501,282 $1,386,053 $1,474,624
========== ========== ==========
CONTACT:
408-523-2175
408-523-2161