Intuitive Surgical Announces $16.0 Million Fourth Quarter Revenue, Up 50%; Full Year 2001 Revenue $51.7 Million, Up 94%
Total fourth quarter 2001 systems sales were $13.7 million, instruments and accessories $1.6 million, and service revenue $0.7 million. The following table compares fourth quarter and fiscal year 2001 revenue to the prior year.
Q401 Q400 Incr. FY01 FY00 Incr.
---- ---- ----- ---- ---- -----
Revenue ($ Millions)
Systems $13.7 $ 9.8 $ 3.9 $44.7 $23.5 $21.2
Instruments/Accys $ 1.6 $ 0.7 $ 0.9 $ 5.0 $ 2.5 $ 2.5
Service $ 0.7 $ 0.2 $ 0.5 $ 2.0 $ 0.6 $ 1.4
----- ----- ----- ----- ----- -----
$16.0 $10.7 $ 5.3 $51.7 $26.6 $25.1
System Population
Placements 15 11 4 49 28 21
Cumulative Placements 89 40 49 89 40 49
Gross margin for the fourth quarter of 2001 was 49%, compared with 41% for the
fourth quarter of 2000, excluding non-routine royalty charges in both quarters,
and 47% in the third quarter of 2001. Gross margin improvement was due primarily
to higher sales and manufacturing overhead cost efficiency. Fourth quarter 2001
and fourth quarter 2000 margin were both negatively impacted by $1 million due
to non-routine royalty charges taken to cost of sales. Including the impact of
non-routine royalty expenses, fourth quarter margins were 42% in 2001 and 32% in
2000. No future royalty charges are called for under existing agreements.
Excluding the impact of the non-routine royalty charges, net loss for the fourth quarter of 2001 was $3.3 million, compared to a net loss of $4.0 million for the fourth quarter of 2000 and $4.8 million for the third quarter of 2001. Including the impact of the non-routine royalty charges, fourth quarter 2001 net loss was $4.3 million and fourth quarter 2000 was $5.0 million. Fourth quarter 2001 basic and diluted net loss per share was $0.09, or $0.12 including non-routine royalty, compared to a net loss per share of $0.11, or $0.14, including non-routine royalty for the fourth quarter of 2000 and $0.13 for the third quarter of 2001.
Net Loss for the fiscal year ending December 31, 2001 was $16.7 million compared to a net loss of $18.5 million for fiscal year 2000.
Commenting on the announcement, Lonnie Smith, President and CEO of Intuitive Surgical said: "We are very pleased with our record fourth quarter revenue and the continued growth of our business. We see system usage continuing to increase as the da Vinci(TM) Surgical System demonstrates its value in the modern operating room."
The company will also discuss these results at a conference call today at 1:30 PM PT. The dial-in numbers for this call are 888-809-8965 for U.S. calls and 212-287-1616 for international calls. The passcode is ISRG and the meeting leader is Mr. Lonnie Smith.
About the da Vinci(TM) Surgical System:The da Vinci(TM) Surgical System consists of a surgeon's viewing and control console having an integrated, high-performance InSite(TM) 3-D vision system, a patient-side cart consisting of three robotic arms that position and precisely maneuver endoscopic instruments and an endoscope, and a variety of articulating EndoWrist(TM) 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(TM) 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 statements contained in this release may be deemed to contain "forward-looking statements." Such statements are indicated by words or phrases such as "anticipate," "estimate," "projects," "believes," "intends," "expects" and similar words and phrases. Actual results may differ materially from those expressed or implied in any forward-looking statement as a result of certain risks and uncertainties, including, without limitation, competition and market acceptance of the Company's products, ability to obtain regulatory approvals and third-party reimbursement, ability to raise additional capital and other risks and uncertainties detailed in the Company's Securities and Exchange Commission filings. Prospective investors are cautioned not to place undue reliance on such forward-looking statements.
Note to Editors: Intuitive(R), da Vinci(TM), InSite(TM), and EndoWrist(TM) are trademarks of Intuitive Surgical, Inc.
INTUITIVE SURGICAL, INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Three months ended
December 31, December 31,
2001 2000
---- ----
Sales $ 16,013 $ 10,706
Cost of sales 9,246 7,289
-------- ---------
Gross profit 6,767 3,417
Operating costs and expenses:
Research and development 3,791 3,110
Selling, general and administrative 8,034 6,626
--------- ---------
Total operating costs and expenses 11,825 9,736
Loss from operations (5,058) (6,319)
Interest income/(expense) 806 1,337
--------- ---------
Net loss $ (4,252) $ (4,982)
========= =========
Weighted average shares outstanding
used to compute net loss per share 36,147 35,139
--------- ---------
Loss per share - basic and diluted $ (0.12) $ (0.14)
========= =========
INTUITIVE SURGICAL, INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Fiscal year ended
December 31, December 31,
2001 2000
---- ----
Sales $ 51,673 $ 26,624
Cost of sales 28,218 18,031
-------- --------
Gross profit 23,455 8,593
Operating costs and expenses:
Research and development 13,851 11,734
Selling, general and administrative 29,987 19,136
-------- ---------
Total operating costs and expenses 43,838 30,870
Loss from operations (20,383) (22,277)
Interest income/(expense) 3,683 3,754
--------- ---------
Net loss $ (16,700) $ (18,523)
========= =========
Weighted average shares outstanding
used to compute net loss per share 35,815 23,796
--------- ---------
Loss per share - basic and diluted $ (0.47) $ (0.78)
========== ==========
INTUITIVE SURGICAL, INCORPORATED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(IN THOUSANDS)
December 31, December 31,
2001 2000
---- ----
Assets
Current assets:
Cash, cash equivalents and
short-term investments $ 66,661 $ 89,441
Accounts receivable, net 13,248 6,444
Inventories, net 6,182 6,076
Prepaid expenses 3,128 1,705
----------- ----------
Total current assets 89,219 103,666
Property and equipment, net 7,834 4,669
Other assets 3,308 4,086
----------- ----------
Total assets $ 100,361 $ 112,421
=========== ==========
Liabilities and stockholders' equity
Current Liabilities:
Accounts payable $ 8,300 $ 7,128
Accrued compensation and employee benefits 2,537 2,609
Warranty provision 1,831 1,494
Accrued Royalty 1,000 1,000
Accrued liabilities 2,128 2,028
Deferred revenue 3,870 3,552
Current portion of notes payable 1,631 2,019
----------- ---------
Total current liabilities 21,297 19,830
Notes payable 771 1,861
Stockholders' equity
Common stock 36 36
Additional paid-in capital 188,962 186,713
Deferred compensation (886) (2,483)
Accumulated deficit (110,370) (93,670)
Accumulated other comprehensive income 551 134
----------- ----------
Total stockholders' equity 78,293 90,730
Total liabilities and stockholders' equity $ 100,361 $ 112,421
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CONTACT: Intuitive Surgical, Inc.
Ben Gong, 650/237-7075
Sarah Norton, 650/237-7191