Intuitive Surgical Announces Record $60.9 Million Third Quarter Revenue, Up 72%; $0.55 Earnings per Share
SUNNYVALE, CA, Oct 25, 2005 (MARKET WIRE via COMTEX News Network) -- Intuitive Surgical, Inc. (NASDAQ: ISRG), the industry leader in surgical robotics, today reported third quarter 2005 sales of $60.9 million, increasing 72% from $35.5 million for the third quarter of 2004. Higher sales were driven by higher da Vinci® Surgical System shipments and continued recurring revenue growth.
Intuitive sold 30 da Vinci® Surgical Systems during the third quarter of 2005, compared to 18 in the third quarter of 2004. Third quarter 2005 system revenue increased to $33.6 million from $19.0 million during the third quarter of 2004.
Third quarter 2005 recurring revenue, consisting of instrument, accessory, service and training revenue, increased to $27.3 million from $16.5 million during the third quarter of 2004. Recurring revenue growth resulted from a larger installed base of da Vinci® Surgical Systems and increased system usage.
Three Months Ended, Nine Months Ended,
---------------------- -------------------------
9/30/05 9/30/04 Increase 9/30/05 9/30/04 Increase
------ ----- ----- ------ ----- ------
Revenue ($Millions)
Systems $33.6 $19.0 $14.6 $83.3 $51.7 $31.6
Instruments/Accessories $18.1 $10.3 $7.8 $47.2 $25.9 $21.3
Service/Training $9.2 $6.2 $3.0 $24.7 $16.0 $8.7
------ ----- ----- ------ ----- ------
$60.9 $35.5 $25.4 $155.2 $93.6 $61.6
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da Vinci® Surgical
System Unit Sales 30 18 12 75 51 24
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Third quarter 2005 operating income increased to $21.0 million, up from $5.5 million reported for the third quarter of 2004.
The company reported third quarter 2005 net income of $20.7 million, or $0.55 per diluted share, compared to $6.1 million, or $0.17 per diluted share for the third quarter of 2004. Cash, cash equivalents and short-term investments ended the period at $189.4 million, up $30.9 million from last quarter.
Commenting on the announcement, Lonnie Smith, Chairman and CEO of Intuitive Surgical, said, "We are pleased with our third quarter revenue and operating profit growth. These financial results reflect the continued adoption of da Vinci Surgery, which enables surgeons and medical centers to provide the high-value procedures sought after by today's highly informed 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® Surgical System consists of a surgeon's viewing and control console having an integrated, high-performance InSite® 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® 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® 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® 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® 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®, da Vinci®, InSite®, EndoWrist®, Hermes®, and Aesop® are registered trademarks of Intuitive Surgical, Inc.
INTUITIVE SURGICAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended, Nine Months Ended,
------------------ ------------------
9/30/05 9/30/04 9/30/05 9/30/04
-------- -------- -------- --------
Sales:
Products $ 51,667 $ 29,262 $130,501 $ 77,583
Services 9,207 6,231 24,743 16,026
-------- -------- -------- --------
Total sales 60,874 35,493 155,244 93,609
Cost of sales:
Products 14,769 9,798 39,573 27,871
Services 3,988 2,973 10,664 7,552
-------- -------- -------- --------
Total cost of sales 18,757 12,771 50,237 35,423
-------- -------- -------- --------
Gross profit 42,117 22,722 105,007 58,186
Gross profit % 69.2% 64.0% 67.6% 62.2%
Operating costs and
expenses:
Selling, general,
and administrative 16,521 12,600 46,659 34,378
Research and
development 4,587 4,635 13,087 13,571
-------- -------- -------- --------
Total operating
costs and
expenses 21,108 17,235 59,746 47,949
-------- -------- -------- --------
Income from operations 21,009 5,487 45,261 10,237
Other income, net 1,430 692 3,107 1,924
-------- -------- -------- --------
Income before income tax
provision 22,439 6,179 48,368 12,161
Income tax provision 1,719 66 3,760 365
-------- -------- -------- --------
Net income $ 20,720 $ 6,113 $ 44,608 $ 11,796
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Net earnings per share -
Basic $ 0.59 $ 0.18 $ 1.28 $ 0.35
======== ======== ======== ========
Diluted $ 0.55 $ 0.17 $ 1.19 $ 0.34
======== ======== ======== ========
Weighted average shares
outstanding used to
compute net earnings
per share -
Basic 35,154 33,823 34,820 33,556
======== ======== ======== ========
Diluted 38,013 35,305 37,426 34,534
======== ======== ======== ========
INTUITIVE SURGICAL, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(Unaudited)
9/30/05 12/31/04 (a)
---------- ----------
Assets
Current assets:
Cash and cash equivalents 8,729 5,771
Investments 180,691 126,267
Accounts receivable, net 43,756 35,443
Inventory 12,220 5,966
Prepaids 5,146 3,032
Restricted cash 319 205
---------- ----------
Total current assets 250,861 176,684
Property and equipment, net 29,451 27,065
Restricted cash - 319
Intangible assets, net 4,821 6,221
Goodwill 141,750 143,332
Other assets 1,032 608
---------- ----------
Total assets $ 427,915 $ 354,229
========== ==========
Liabilities and
stockholders' equity
Current liabilities:
Accounts payable 7,497 4,485
Accrued compensation and
employee benefits 10,368 10,321
Deferred revenue 20,655 15,372
Restructuring accrual 345 541
Other accrued liabilities 7,313 7,057
Current portion of notes payable 35 609
---------- ----------
Total current liabilities 46,213 38,385
Deferred revenue 262 505
Other accrued liabilities 822 407
Stockholders' equity
Common stock 35 34
Preferred stock - -
Additional paid-in capital 452,507 430,362
Accumulated deficit (70,515) (114,936)
Treasury stock - (136)
Accumulated other comprehensive loss (1,409) (392)
---------- ----------
Total stockholders' equity 380,618 314,932
---------- ----------
Total liabilities and
stockholders' equity $ 427,915 $ 354,229
========== ==========
(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.