Intuitive Surgical Announces Record $72.1 Million Fourth Quarter Revenue, Up 60%
SUNNYVALE, CA, Feb 02, 2006 (MARKET WIRE via COMTEX News Network) -- Intuitive Surgical, Inc. (NASDAQ: ISRG), the industry leader in surgical robotics, today reported fourth quarter 2005 sales of $72.1 million, increasing 60% from $45.2 million for the fourth quarter of 2004. Higher sales were driven by increased da Vinci(R) Surgical System sales and continued growth in recurring revenue.
Intuitive sold 40 da Vinci(R) Surgical Systems during the fourth quarter of 2005, compared to 25 in the fourth quarter of 2004. Fourth quarter 2005 system revenue increased to $41.3 million from $27.1 million during the fourth quarter of 2004.
Fourth quarter 2005 recurring revenue, consisting of instrument, accessory, service and training revenue, increased 70% to $30.8 million from $18.1 million during the fourth quarter of 2004. Recurring revenue growth resulted from a larger installed base of da Vinci(R) Surgical Systems and increased system usage.
Intuitive reported net sales of $227.3 million for the year ended December 31, 2005, increasing 64% from $138.8 million in 2004.
Quarter Ended, Year Ended,
-------------------------- --------------------------
12/31/05 12/31/04 Increase 12/31/05 12/31/04 Increase
-------- -------- -------- -------- -------- --------
Revenue ($Millions)
Systems $ 41.3 $ 27.1 $ 14.2 $ 124.6 $ 78.8 $ 45.8
Instruments/
Accessories 20.6 11.6 9.0 67.8 37.6 30.2
Service/Training 10.2 6.5 3.7 34.9 22.4 12.5
-------- -------- -------- -------- -------- --------
$ 72.1 $ 45.2 $ 26.9 $ 227.3 $ 138.8 $ 88.5
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da Vinci(R) Surgical
System Unit Sales 40 25 15 115 76 39
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Fourth quarter 2005 operating income increased to $23.5 million, up from $10.9 million reported for the fourth quarter of 2004.
During the fourth quarter 2005, the company released a valuation allowance on its deferred tax asset, resulting in a negative income tax expense of $24.1 million for the period. Including the impact of this tax event, the company reported fourth quarter 2005 net income of $49.5 million, or $1.31 per diluted share, compared to $11.7 million, or $0.32 per diluted share for the fourth quarter of 2004. Cash, cash equivalents and short-term investments ended the period at $202.7 million, up $13.3 million from last quarter.
Commenting on the announcement, Lonnie Smith, Chairman and CEO of Intuitive Surgical, said, "We are pleased with our fourth quarter revenue and earnings growth. These financial results reflect the continued adoption of da Vinci Surgery in the marketplace and the progress we have made toward our mission of extending the benefits of minimally invasive surgery to the broadest possible base of 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(R) Surgical System consists of a surgeon's viewing and control console having an integrated, high-performance InSite(R) 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(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.
The Aesop(R) 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(R) 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(R), da Vinci(R), InSite(R), EndoWrist(R), Hermes(R), and Aesop(R) are registered trademarks of Intuitive Surgical, Inc.
INTUITIVE SURGICAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended, Fiscal Year Ended,
-------------------- --------------------
12/31/05 12/31/04 12/31/05 12/31/04
--------- --------- --------- ---------
Sales:
Products $ 61,919 $ 38,754 $ 192,417 $ 116,338
Services 10,176 6,440 34,921 22,465
--------- --------- --------- ---------
Total sales 72,095 45,194 227,338 138,803
Cost of sales:
Products 18,785 12,601 58,357 40,472
Services 4,748 2,789 15,412 10,341
--------- --------- --------- ---------
Total cost of sales 23,533 15,390 73,769 50,813
--------- --------- --------- ---------
Gross profit 48,562 29,804 153,569 87,990
Gross profit % 67.4% 65.9% 67.6% 63.4%
Operating costs and expenses:
Selling, general, and
administrative 20,784 14,616 67,443 48,994
Research and development 4,268 4,241 17,354 17,812
--------- --------- --------- ---------
Total operating costs and
expenses 25,052 18,857 84,797 66,806
--------- --------- --------- ---------
Income from operations 23,510 10,947 68,772 21,184
Other income, net 1,928 1,096 5,035 3,020
--------- --------- --------- ---------
Income before income tax
provision 25,438 12,043 73,807 24,204
Income tax provision/(benefit) (24,087) 361 (20,327) 726
--------- --------- --------- ---------
Net income $ 49,525 $ 11,682 $ 94,134 $ 23,478
========= ========= ========= =========
Net earnings per share -
Basic $ 1.38 $ 0.34 $ 2.68 $ 0.70
========= ========= ========= =========
Diluted $ 1.31 $ 0.32 $ 2.51 $ 0.67
========= ========= ========= =========
Weighted average shares
outstanding used to compute
net earnings per share -
Basic 35,819 34,098 35,070 33,693
========= ========= ========= =========
Diluted 37,675 36,244 37,488 34,976
========= ========= ========= =========
INTUITIVE SURGICAL, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(Unaudited)
12/31/05 12/31/04 (a)
----------- -----------
Assets
Current assets:
Cash and cash equivalents 5,508 5,771
Investments 197,231 126,267
Accounts receivable, net 52,849 35,443
Inventory 15,170 5,966
Prepaids 6,131 3,032
Deferred tax asset 5,290 -
Restricted cash 319 205
----------- -----------
Total current assets 282,498 176,684
Property and equipment, net 52,225 27,065
Restricted cash - 319
Intangible assets, net 5,353 6,221
Deferred tax asset 36,574 -
Goodwill 124,638 143,332
Other assets 1,405 608
----------- -----------
Total assets $ 502,693 $ 354,229
=========== ===========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable 7,950 4,485
Accrued compensation and employee benefits 14,997 10,321
Deferred revenue 25,313 15,372
Restructuring accrual 293 541
Other accrued liabilities 9,434 7,057
Deferred tax liability 291
Current portion of notes payable - 609
----------- -----------
Total current liabilities 58,278 38,385
Deferred revenue 198 505
Other accrued liabilities 811 407
Deferred tax liability 815 -
Stockholders' equity
Common stock 36 34
Preferred stock - -
Additional paid-in capital 465,021 430,362
Accumulated deficit (20,989) (114,936)
Treasury stock - (136)
Accumulated other comprehensive loss (1,477) (392)
----------- -----------
Total stockholders' equity 442,591 314,932
----------- -----------
Total liabilities and stockholders' equity $ 502,693 $ 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