Intuitive Surgical Announces $156.9 Million Third Quarter Revenue, Up 64%
Third quarter 2007 instruments and accessories revenue increased 70% to $49.5 million from $29.0 million during the third quarter of 2006. Third quarter 2007 da Vinci(r) Surgical Systems revenue increased 63% to $85.5 million from $52.4 million during the third quarter of 2006. Third quarter 2007 service and training revenue increased 52% to $21.9 million from $14.4 million during the third quarter of 2006.
Revenue ($ Millions)
-------------------
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------ -------------------------
2007 2006 Increase 2007 2006 Increase
------ ------ ------ ------ ------ ------
Instruments/
Accessories $ 49.5 $ 29.0 $ 20.5 $135.6 $ 78.4 $ 57.2
Systems 85.5 52.4 33.1 215.8 142.9 72.9
Service/Training 21.9 14.4 7.5 60.0 38.8 21.2
----------------------- ------------------------
$156.9 $ 95.8 $ 61.1 $411.4 $260.1 $151.3
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Third quarter 2007 operating income increased 110% to $54.0 million, compared with $25.7 million for the third quarter of 2006. Operating results for the third quarter of 2007 included $8.7 million of stock-based compensation expense in accordance with the Financial Accounting Standards Board SFAS 123R, compared with $6.9 million for the third quarter of 2006.
Third quarter 2007 results included unusual, non-operating income resulting from gains on sales of equity investments of $4.1 million and foreign exchange gains of $1.8 million, impacting net income by approximately $3.7 million, or $0.09 per share, net of tax. Including the impact of these items, third quarter 2007 net income increased 137% to $40.9 million, compared with $17.3 million for the third quarter of 2006. Diluted earnings per share increased to $1.04 for the third quarter of 2007 from $0.45 for the third quarter of 2006.
Intuitive ended the third quarter of 2007 with cash, cash equivalents and investments of $533 million, up $86 million from June 30, 2007 and $203 million from December 31, 2006.
Commenting on the announcement, Lonnie Smith, Chairman and CEO of Intuitive Surgical, said, "We are pleased with our third quarter revenue and income growth. Robotic surgery momentum is strong as patient demand and adoption within the medical community continue to grow."
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
----------------------------------
Sept. 30, June 30, Sept. 30,
----------------------------------
2007 2007 2006
----------------------------------
Revenue:
Products $135,053 $119,885 $ 81,433
Services 21,851 20,364 14,399
-------- -------- --------
Total revenue 156,904 140,249 95,832
Cost of revenue:
Products 38,305 35,656 26,663
Services 10,129 10,485 6,936
-------- -------- --------
Total cost of revenue* 48,434 46,141 33,599
Gross profit 108,470 94,108 62,233
Operating expenses:
Selling, general
and administrative 40,163 38,883 28,578
Research and development 14,319 10,192 7,979
-------- -------- --------
Total operating expenses* 54,482 49,075 36,557
Income from operations 53,988 45,033 25,676
Interest and other income, net 12,220 5,232 3,146
-------- -------- --------
Income before income taxes 66,208 50,265 28,822
Provision for income taxes 25,289 19,602 11,559
-------- -------- --------
Net lncome $ 40,919 $ 30,663 $ 17,263
======== ======== ========
Earnings per share:
Basic $ 1.08 $ 0.81 $ 0.47
======== ======== ========
Diluted $ 1.04 $ 0.79 $ 0.45
======== ======== ========
Shares used in computing
earnings per share:
Basic 38,033 37,636 36,875
======== ======== ========
Diluted 39,271 38,657 38,184
======== ======== ========
* Includes stock-based compensation expense of $1.4 million, $1.5
million and $1.1 million in total cost of revenue and and $7.3
million, $7.9 million and $5.9 million in total operating expenses
for the three months ended September 30, 2007, June 30, 2007 and
September 30, 2006, respectively.
INTUITIVE SURGICAL, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Nine months Ended
September 30,
---------------------
2007 2006
---------------------
Revenue:
Products $351,387 $221,312
Services 59,995 38,803
-------- --------
Total revenue 411,382 260,115
Cost of revenue:
Products 103,067 68,454
Services 29,229 18,770
-------- --------
Total cost of revenue* 132,296 87,224
Gross profit 279,086 172,891
Operating expenses:
Selling, general and administrative 112,989 79,652
Research and development 32,736 21,330
-------- --------
Total operating expenses* 145,725 100,982
Income from operations 133,361 71,909
Interest and other income, net 22,060 8,602
-------- --------
Income before income taxes 155,421 80,511
Provision for income taxes 60,037 32,108
-------- --------
Net lncome $ 95,384 $ 48,403
======== ========
Earnings per share:
Basic $ 2.53 $ 1.32
======== ========
Diluted $ 2.46 $ 1.27
======== ========
Shares used in computing
earnings per share:
Basic 37,653 36,646
======== ========
Diluted 38,776 38,044
======== ========
* Includes stock compensation expense of $4.1 million and $2.8
million in total cost of revenue and $22.1 million and $15.6
million in total operating expenses for the nine months ended
September 30, 2007 and 2006, respectively.
INTUITIVE SURGICAL, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
9/30/2007 6/30/2007 12/31/2006
--------- --------- ----------
Cash, cash equivalents,
and investments $533,489 $447,512 $330,296
Accounts receivable, net 120,456 105,649 94,680
Inventory 26,773 24,040 24,295
Property and equipment, net 64,153 62,040 59,939
Goodwill 112,170 118,207 118,240
Deferred tax assets 36,211 34,118 31,677
Other assets 18,995 17,132 12,663
-------- -------- --------
Total assets $912,247 $808,698 $671,790
======== ======== ========
Accounts payable and other
accrued liabilities $ 63,525 $ 53,956 $ 44,700
Deferred revenue 48,571 43,393 37,385
-------- -------- --------
Total liabilities 112,096 97,349 82,085
Stockholders' equity 800,151 711,349 589,705
-------- -------- --------
Total liabilities and
stockholders' equity $912,247 $808,698 $671,790
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SOURCE: Intuitive Surgical
Intuitive Surgical, Inc.
Ben Gong
408-523-2175
Cindy Marple
408-523-2161