Exhibit 99.1

INTUITIVE SURGICAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

	Three Months Ended,
	3/31/04			3/31/03
Sales:
Products	$	22,471		$	17,292
Services		4,588			1,943
Total sales		27,059			19,235
Cost of sales:
Products		8,813			7,772
Services		2,410			1,722
Total cost of sales		11,223			9,494
Gross profit		15,836			9,741
Gross profit        %		58.5	%		50.6	%
Operating costs and expenses:
Selling, general, and administrative		10,243			9,453
Research and development		5,310			3,423
Total operating costs and expenses		15,553			12,876
Income (loss) from operations		283			(3,135	)
Other income, net		606			842
Income (loss) before income tax provision		889			(2,293	)
Income tax provision		36			—
Net income (loss)	$	853		$	(2,293	)
Net earnings (loss) per share—
Basic	$	0.03		$	(0.12	)
Diluted	$	0.02		$	(0.12	)
Weighted average shares outstanding used to compute net earnings (loss)
per share—
Basic		33,282			18,431
Diluted		34,137			18,431

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INTUITIVE SURGICAL, INC.

CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS)

	Unaudited
	3/31/04			12/31/03 (a)
Assets
Current assets:
Cash and cash equivalents		13,346			11,335
Short-term investments		102,489			101,614
Accounts receivable, net		27,324			26,820
Inventories, net		7,983			8,788
Prepaid expenses		3,338			3,203
Restricted cash equivalents		213			188
Total current assets		154,693			151,948
Property and equipment, net		9,384			10,288
Restricted cash equivalents		348			642
Intangible assets, net		7,622			8,089
Goodwill		143,332			143,106
Other assets		960			921
Total assets	$	316,339		$	314,994
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		4,670			5,894
Accrued compensation and employee benefits		3,651			5,267
Warranty accrual		334			702
Restructuring accrual		1,160			971
Other accrued liabilities		6,413			8,432
Deferred revenue		12,998			11,345
Current portion of notes payable		998			1,030
Total current liabilities		30,224			33,641
Long-term debt		435			695
Deferred revenue		991			1,148
Other accrued liabilities		534			553
Stockholders’ equity
Common stock		33			33
Preferred stock		—			—
Additional paid-in capital		420,675			416,559
Deferred compensation		(84	)		(99	)
Accumulated deficit		(137,561	)		(138,414	)
Accumulated other comprehensive income		1,092			878
Total stockholders’ equity		284,155			278,957
Total liabilities and stockholders’ equity	$	316,339		$	314,994

(a)—Derived from the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2003 but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.

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