Intuitive Surgical Announces Third Quarter Earnings
Third quarter of 2009 instruments and accessories revenue increased to
Third quarter of 2009 systems revenue was
Third quarter of 2009 service revenue increased to
Third quarter of 2009 operating income increased to
Third quarter of 2009 net income was
Intuitive ended the third quarter of 2009 with cash, cash equivalents and investments of
Commenting on the announcement,
The Company will also announce these results at a conference call today at
About Intuitive's Products
About the da Vinci(R) Surgical System
The da Vinci(R) System is a breakthrough surgical platform designed to enable complex surgery using a minimally invasive approach. The da Vinci(R) System consists of an ergonomic surgeon console or consoles, a patient-side cart with four interactive robotic arms, a high-performance vision system and proprietary EndoWrist(R) instruments. Powered by state-of-the-art robotic and computer technology, the da Vinci(R) System is designed to scale, filter and seamlessly translate the surgeon's hand movements into more precise movements of the EndoWrist(R) instruments. The net result is an intuitive interface with breakthrough surgical capabilities. By providing surgeons with superior visualization, enhanced dexterity, greater precision and ergonomic comfort, the da Vinci Surgical System makes it possible for more surgeons to perform minimally invasive procedures involving complex dissection or reconstruction. This ultimately has the potential to raise the standard of care for complex surgeries, translating into numerous potential patient benefits, including less pain, a shorter recovery and quicker return to normal daily activities.
Intuitive(R), da Vinci(R), da Vinci S(R), da Vinci(R) Si(TM) , InSite(R) and EndoWrist(R) are trademarks or registered trademarks of
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: the impact of the global economic recession and tight credit market and related impact on health care spending; possible health care reform in the
INTUITIVE SURGICAL, INC.
UNAUDITED QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Three months ended
----------------------------
Sept. 30, June 30, Sept. 30,
2009 2009 2008
-------- -------- --------
Revenue:
Instruments & Accessories $100,822 $ 95,827 $ 75,941
Systems 135,459 123,519 126,326
Services 43,853 41,278 33,725
-------- -------- --------
Total revenue (1) 280,134 260,624 235,992
Cost of revenue:
Products 65,336 55,542 53,517
Services 15,794 14,897 12,900
-------- -------- --------
Total cost of revenue (2) 81,130 70,439 66,417
Gross profit 199,004 190,185 169,575
Operating expenses:
Selling, general and administrative 69,863 67,276 62,692
Research and development (3) 24,650 23,369 21,851
-------- -------- --------
Total operating expenses (2) 94,513 90,645 84,543
Income from operations 104,491 99,540 85,032
Interest and other income, net 4,362 5,171 4,594
-------- -------- --------
Income before income taxes 108,853 104,711 89,626
Provision for income taxes 44,329 42,323 32,032
-------- -------- --------
Net lncome $ 64,524 $ 62,388 $ 57,594
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Earnings per share:
Basic $ 1.69 $ 1.65 $ 1.48
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Diluted (1) $ 1.64 $ 1.62 $ 1.44
======== ======== ========
Shares used in computing earnings per
share:
Basic 38,083 37,897 39,015
======== ======== ========
Diluted 39,245 38,557 40,108
======== ======== ========
(1) The Company offered certain customers the opportunity to upgrade
the da Vinci S Surgical Systems purchased during the first quarter
of 2009 to the recently introduced da Vinci Si Surgical Systems,
at a discount from the list price of the upgrade. These
customers were also given the opportunity to return certain da
Vinci S accessories in exchange for da Vinci Si accessories.
The customers were given until June 30, 2009 to accept the offer.
As of March 31, 2009 , the Company had deferred $20.1 million
associated with these offers.
In the second quarter of 2009, the Company recognized $13.8
million of revenue originally deferred in the first quarter and
associated with offers declined, upgrades completed or accessories
delivered. Excluding the $13.8 million of revenue recognized, the
total revenue and diluted earnings per share during the three
months ended June 30, 2009 was $246.8 million and $1.40 ,
respectively.
In the third quarter of 2009, the Company recognized the
remaining $6.3 million of revenue originally deferred in the
first quarter and associated with upgrades completed or
accessories delivered. Excluding the $6.3 million of revenue
recognized, the total revenue and diluted earnings per share
during the three months ended September 30, 2009 was $273.9
million and $1.55 , respectively.
(2) Includes stock compensation expense of $3.7 million , $3.6 million ,
and $3.1 million in total cost of revenue and $20.9 million , $21.0
million , and $17.9 million in total operating expenses for the
three months ended September 30, 2009 , June 30, 2009 , and
September 30, 2008 , respectively.
(3) Includes amortization of purchased intellectual property of $3.6
million , $3.8 million and $2.5 million in research and development
expenses for the three months ended September 30, 2009 , June 30,
2009 , and September 30, 2008 , respectively.
INTUITIVE SURGICAL, INC.
UNAUDITED NINE MONTHS ENDED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Nine months ended
September 30,
--------------------
2009 2008
--------------------
Revenue:
Instruments & Accessories $276,177 $211,414
Systems 328,500 341,584
Services 124,453 90,376
-------- --------
Total revenue 729,130 643,374
Cost of revenue:
Products 166,144 148,405
Services 45,093 39,532
-------- --------
Total cost of revenue (1) 211,237 187,937
Gross profit 517,893 455,437
Operating expenses:
Selling, general and administrative 199,505 168,830
Research and development (2) 69,331 58,509
-------- --------
Total operating expenses (1) 268,836 227,339
Income from operations 249,057 228,098
Interest and other income, net 14,549 18,843
-------- --------
Income before income taxes 263,606 246,941
Provision for income taxes 108,552 93,384
-------- --------
Net Income $155,054 $153,557
======== ========
Earnings per share:
Basic $ 4.05 $ 3.96
======== ========
Diluted (1) $ 3.97 $ 3.84
======== ========
Shares used in computing earnings per share:
Basic 38,287 38,790
======== ========
Diluted 39,046 39,978
======== ========
(1) Includes stock compensation expense of $10.6 million and $8.3
million in total cost of revenue and $61.4 million and $47.0
million in total operating expenses for the nine months ended
September 30, 2009 and 2008, respectively.
(2) Includes amortization of purchased intellectual property of
$10.8 million and $5.8 million in research and development
expenses for the nine months ended September 30, 2009 and 2008,
respectively.
INTUITIVE SURGICAL, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
9/30/2009 6/30/2009 12/31/2008
---------- ---------- ----------
Cash, cash equivalents, and
investments $1,023,984 $ 902,061 $ 901,873
Accounts receivable, net 186,530 175,216 170,107
Inventory 56,646 59,247 63,460
Property and equipment, net 122,865 122,584 117,021
Goodwill 110,740 110,740 110,740
Deferred tax assets 60,257 53,423 45,357
Other assets 76,789 78,011 66,066
---------- ---------- ----------
Total assets $1,637,811 $1,501,282 $1,474,624
========== ========== ==========
Accounts payable and other accrued
liabilities $ 155,924 $ 140,589 $ 128,606
Deferred revenue 91,625 89,509 79,252
---------- ---------- ----------
Total liabilities 247,549 230,098 207,858
Stockholders' equity 1,390,262 1,271,184 1,266,766
---------- ---------- ----------
Total liabilities and
stockholders' equity $1,637,811 $1,501,282 $1,474,624
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CONTACT:
408-523-2175
408-523-2161