SUNNYVALE, Calif., Jan. 22, 2009 (GLOBE NEWSWIRE) -- Intuitive Surgical, Inc. (Nasdaq:ISRG), the industry leader in surgical robotics, today reported fourth quarter 2008 revenue, consistent with its pre-release of January 7, 2009, of $231.5 million, increasing 22% from $189.4 million for the fourth quarter of 2007. Fourth quarter 2008 revenue growth was driven by continued robotic procedure adoption.
Fourth quarter 2008 instruments and accessories revenue increased 45% to $81.6 million from $56.1 million during the fourth quarter of 2007. Fourth quarter 2008 da Vinci(r) Surgical Systems revenue increased 5% to $113.7 million from $108.6 million during the fourth quarter of 2007. Fourth quarter 2008 service revenue increased 46% to $36.2 million from $24.7 million during the fourth quarter of 2007.
Revenue for the year ended December 31, 2008 totaled $874.9 million, increasing 46% from $600.8 million for the year ended December 31, 2007.
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------- -----------------------
Revenue
($ Millions) 2008 2007 Increase 2008 2007 Increase
------------ ---- ---- -------- ---- ---- --------
Instruments/
Accessories $81.6 $56.1 $25.5 $293.0 $191.7 $101.3
Systems 113.7 108.6 5.1 455.3 324.4 130.9
Service 36.2 24.7 11.5 126.6 84.7 41.9
----------------------- ------------------------
$231.5 $189.4 $42.1 $874.9 $600.8 $274.1
======================= =========================
Fourth quarter 2008 operating income increased 13% to $82.7 million, compared with $73.4 million for the fourth quarter of 2007. Operating results for the fourth quarter of 2008 included $21.4 million of non-cash stock-based compensation expense in accordance with the Financial Accounting Standards Board SFAS 123R, compared with $10.1 million for the fourth quarter of 2007.
Fourth quarter 2008 net income increased 3% to $50.8 million, compared with $49.2 million for the fourth quarter of 2007. Diluted earnings per share increased to $1.27 for the fourth quarter of 2008 from $1.24 for the fourth quarter of 2007.
Net income for the year ended December 31, 2008 was $204.3 million, or $5.12 per diluted share, compared to net income of $144.5 million, or $3.70 per diluted share for the year ended December 31, 2007.
Intuitive ended the fourth quarter of 2008 with cash, cash equivalents and investments of $902 million, up $80 million from September 30, 2008 and up $266 million from December 31, 2007.
Commenting on the announcement, Lonnie Smith, Chairman and CEO of Intuitive Surgical, said, "We are pleased with our continued worldwide procedure growth. While our fourth quarter system unit sales were lower than planned, we believe that our procedure momentum remains strong and patient demand for robotic surgery will continue to drive growth in 2009."
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, 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: the impact of the global economic recession and tightening credit market and related impact on health care spending; 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; unanticipated manufacturing disruptions; delays in regulatory approvals of new manufacturing facilities or the inability to meet demand for products, the results of the year end audit, and the other factors detailed from time to time under the heading "Risk Factors" in our report on Form 10-K for the year ended December 31, 2007, as updated from time to time by our quarterly reports on Form 10-Q and our other filings with the Securities and Exchange Commission. Statements concerning forecasts, revenue growth, procedure growth, future financial results, and statements using 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 QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Three months ended
---------------------------------
Dec. 31, Sept. 30, Dec. 31,
---------------------------------
2008 2008 2007
---------------------------------
Revenue:
Instruments & Accessories $ 81,575 $ 75,941 $ 56,095
Systems 113,752 126,326 108,607
Services 36,218 33,725 24,744
--------- --------- ---------
Total revenue 231,545 235,992 189,446
Cost of revenue:
Products 51,669 53,517 42,587
Services 14,536 12,900 11,659
--------- --------- ---------
Total cost of revenue (1) 66,205 66,417 54,246
Gross profit 165,340 169,575 135,200
Operating expenses:
Selling, general and
administrative 61,739 62,692 45,694
Research and development (2) 20,864 21,851 16,124
--------- --------- ---------
Total operating expenses (1) 82,603 84,543 61,818
Income from operations 82,737 85,032 73,382
Interest and other income, net 5,525 4,594 8,432
--------- --------- ---------
Income before income taxes 88,262 89,626 81,814
Provision for income taxes 37,504 32,032 32,660
--------- --------- ---------
Net income $ 50,758 $ 57,594 $ 49,154
========= ========= =========
Earnings per share:
Basic $ 1.30 $ 1.48 $ 1.28
========= ========= =========
Diluted $ 1.27 $ 1.44 $ 1.24
========= ========= =========
Shares used in computing earnings
per share:
Basic 39,138 39,015 38,364
========= ========= =========
Diluted 39,837 40,108 39,756
========= ========= =========
(1) Includes stock compensation expense of $3.1 million, $3.1
million and $1.6 million in total cost of revenue and $18.3
million, $17.9 million and $8.5 million in total operating
expenses for the three months ended December 31, 2008, September
30, 2008 and December 31, 2007, respectively.
(2) Includes amortization of purchased intellectual property of $3.4
million, $2.7 million and $0.5 million in research and
development expenses for the three months ended December 31,
2008, September 30, 2008 and December 31, 2007, respectively.
INTUITIVE SURGICAL, INC.
UNAUDITED ANNUAL CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Year ended
December 31,
-------------------
2008 2007
-------------------
Revenue:
Instruments & Accessories $292,989 $191,651
Systems 455,336 324,438
Services 126,594 84,739
-------- --------
Total revenue 874,919 600,828
Cost of revenue:
Products 200,074 145,654
Services 54,068 40,888
-------- --------
Total cost of revenue (1) 254,142 186,542
Gross profit 620,777 414,286
Operating expenses:
Selling, general and administrative 230,570 158,685
Research and development (2) 79,372 48,859
-------- --------
Total operating expenses (1) 309,942 207,544
Income from operations 310,835 206,742
Interest and other income, net 24,368 30,492
-------- --------
Income before income taxes 335,203 237,234
Provision for income taxes 130,888 92,697
-------- --------
Net Income $204,315 $144,537
======== ========
Earnings per share:
Basic $ 5.26 $ 3.82
======== ========
Diluted $ 5.12 $ 3.70
======== ========
Shares used in computing earnings per share:
Basic 38,877 37,831
======== ========
Diluted 39,943 39,021
======== ========
(1) Includes stock compensation expense of $11.4 million and $5.8
million in total cost of revenue and $65.3 million and $30.5
million in total operating expenses for the year ended December
31, 2008 and 2007, respectively.
(2) Includes amortization of purchased intellectual property of $9.8
million and $1.3 million in research and development expenses
for the year ended December 31, 2008 and 2007, respectively.
INTUITIVE SURGICAL, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
12/31/2008 9/30/2008 12/31/2007
---------- --------- ----------
Cash, cash equivalents, and
investments $ 901,873 $ 821,431 $ 635,381
Accounts receivable, net 170,107 173,708 130,370
Inventory 63,460 52,498 32,416
Property and equipment, net 117,021 98,081 68,093
Goodwill 110,740 110,740 110,740
Deferred tax assets 45,357 38,973 24,577
Other assets 66,066 69,240 38,421
---------- ---------- ----------
Total assets $1,474,624 $1,364,671 $1,039,998
========== ========== ==========
Accounts payable and other
accrued liabilities $ 128,606 $ 108,442 $ 96,632
Deferred revenue 79,252 72,801 54,692
---------- ---------- ----------
Total liabilities 207,858 181,243 151,324
Stockholders' equity 1,266,766 1,183,428 888,674
---------- ---------- ----------
Total liabilities and
stockholders' equity $1,474,624 $1,364,671 $1,039,998
========== ========== ==========