Intuitive Surgical Announces $188.2 Million First Quarter Revenue, Up 65 Percent
SUNNYVALE, Calif., April 17, 2008 (PRIME NEWSWIRE) -- Intuitive Surgical, Inc. (Nasdaq:ISRG), the industry leader in surgical robotics, today reported first quarter 2008 revenue of $188.2 million, increasing 65% from $114.2 million for the first quarter of 2007. First quarter 2008 revenue growth was driven by continued robotic procedure adoption and higher da Vinci(r) Surgical System sales.
First quarter 2008 instruments and accessories revenue increased 54% to $61.9 million from $40.3 million during the first quarter of 2007. First quarter 2008 da Vinci(r) Surgical Systems revenue increased 76% to $99.1 million from $56.1 million during the first quarter of 2007. First quarter 2008 service and training revenue increased 53% to $27.2 million from $17.8 million during the first quarter of 2007.
Three Months Ended
March 31,
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Revenue ($Millions) 2008 2007 Increase
------------------- ---- ---- --------
Instruments/Accessories $61.9 $40.3 $21.6
Systems 99.1 56.1 43.0
Service/Training 27.2 17.8 9.4
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$188.2 $114.2 $74.0
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First quarter 2008 operating income increased 89% to $64.9 million, compared with $34.3 million for the first quarter of 2007. Operating results for the first quarter of 2008 included $14.6 million of non-cash stock-based compensation expense in accordance with the Financial Accounting Standards Board SFAS 123R, compared with $8.1 million for the first quarter of 2007.
First quarter 2008 net income increased 88% to $44.8 million, compared with $23.8 million for the first quarter of 2007. Diluted earnings per share increased to $1.12 for the first quarter of 2008 from $0.62 for the first quarter of 2007.
Intuitive ended the first quarter of 2008 with cash, cash equivalents and investments of $700 million, up $64 million from December 31, 2007.
Commenting on the announcement, Lonnie Smith, Chairman and CEO of Intuitive Surgical, said, "We are pleased with our first quarter revenue and income growth. Our financial performance reflects the continued expansion of robotic surgical procedures and the compelling value we provide to patients and hospitals."
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. Ben Gong. 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(tm), 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
---------------------
March 31, March 31,
---------------------
2008 2007
---------------------
Revenue:
Products $160,951 $ 96,449
Services 27,243 17,780
-------- --------
Total revenue 188,194 114,229
Cost of revenue:
Products 44,852 29,106
Services 13,535 8,615
-------- --------
Total cost of revenue* 58,387 37,721
Gross profit 129,807 76,508
Operating expenses:
Selling, general and
administrative 48,634 33,945
Research and development 16,301 8,224
-------- --------
Total operating expenses* 64,935 42,169
Income from operations 64,872 34,339
Interest and other income, net 8,541 4,608
-------- --------
Income before income taxes 73,413 38,947
Provision for income taxes 28,632 15,145
-------- --------
Net Income $ 44,781 $ 23,802
======== ========
Earnings per share:
Basic $ 1.16 $ 0.64
======== ========
Diluted $ 1.12 $ 0.62
======== ========
Shares used in computing earnings
per share:
Basic 38,582 37,289
======== ========
Diluted 39,847 38,398
======== ========
* Includes stock compensation expense of $2.2 million and
$1.2 million in total cost of revenue and $12.3 million
and $6.9 million in total operating expenses for the
three months ended March 31, 2008 and 2007.
INTUITIVE SURGICAL, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
3/31/2008 12/31/2007
---------- ----------
Cash, cash equivalents,
and investments $699,654 $635,381
Accounts receivable, net 135,690 130,370
Inventory 38,832 32,416
Property and equipment, net 71,905 68,093
Goodwill 110,740 110,740
Deferred tax assets 28,310 24,577
Other assets 38,154 38,421
---------- ----------
Total assets $1,123,285 $1,039,998
========== ==========
Accounts payable and
other accrued liabilities $81,343 $96,632
Deferred revenue 60,131 54,692
---------- ----------
Total liabilities 141,474 151,324
Stockholders' equity 981,811 888,674
---------- ----------
Total liabilities
and stockholders' equity $1,123,285 $1,039,998
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CONTACT: Intuitive Surgical, Inc.
Ben Gong
408-523-2175
Rae Covington
408-523-2161