EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

   Contacts:    Ben Gong    408-523-2175
      Sarah Norton    408-523-2161

INTUITIVE SURGICAL ANNOUNCES $140.2 MILLION SECOND QUARTER REVENUE, UP 61%; NET INCOME INCREASES 84%

SUNNYVALE, CALIF. July 19, 2007 – Intuitive Surgical, Inc. (NASDAQ: ISRG), the industry leader in surgical robotics, today reported second quarter 2007 revenue of $140.2 million, increasing 61% from $87.0 million for the second quarter of 2006. Revenue growth continues to be driven by strong procedure adoption.

Second quarter 2007 instruments and accessories revenue increased 76% to $45.8 million from $26.1 million during the second quarter of 2006. Second quarter 2007 da Vinci ® Surgical Systems revenue increased 54% to $74.1 million from $48.1 million during the second quarter of 2006. Second quarter 2007 service and training revenue increased 59% to $20.3 million from $12.8 million during the second quarter of 2006.

 

     Three Months Ended
June 30,
  

Six Months Ended

June 30,

Revenue ($Millions)

   2007    2006    Increase    2007    2006    Increase

Instruments/Accessories

   $ 45.8    $ 26.1    $ 19.7    $ 86.1    $ 49.4    $ 36.7

Systems

     74.1      48.1    $ 26.0      130.3      90.5    $ 39.8

Service/Training

     20.3      12.8    $ 7.5      38.1      24.4    $ 13.7
                                         
   $ 140.2    $ 87.0    $ 53.2    $ 254.5    $ 164.3    $ 90.2
                                         

Second quarter 2007 operating income increased 84% to $45.0 million, compared with $24.5 million for the second quarter of 2006. Operating results for the second quarter of 2007 included $9.4 million of stock-based compensation expense in accordance with the Financial Accounting Standards Board SFAS 123R, compared with $6.5 million for the second quarter of 2006.

Second quarter 2007 net income increased 84% to $30.7 million, compared with $16.7 million for the second quarter of 2006. Diluted earnings per share increased to $0.79 for the second quarter of 2007 from $0.44 for the second quarter of 2006.

Intuitive ended the second quarter of 2007 with cash, cash equivalents and investments of $448 million, up $117 million from December 31, 2006.

Commenting on the announcement, Lonnie Smith, Chairman and CEO of Intuitive Surgical, said, “We are pleased with our strong second quarter revenue and income growth. Our procedure momentum reflects the compelling value that the da Vinci® Surgical System delivers to hospitals and 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, 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® 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.

Intuitive®, da Vinci®, da Vinci® S™, InSite®, and EndoWrist® 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: 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 SURGICAL, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

(IN THOUSANDS, EXCEPT PER SHARE DATA)

 

     Three months Ended
June 30,
   Six months Ended
June 30,
     2007    2006    2007    2006

Revenue:

           

Products

   $ 119,885    $ 74,211    $ 216,334    $ 139,880

Services

     20,364      12,814      38,144      24,403
                           

Total revenue

     140,249      87,025      254,478      164,283

Cost of revenue:

           

Products

     35,656      21,869      64,762      41,791

Services

     10,485      6,179      19,100      11,835
                           

Total cost of revenue *

     46,141      28,048      83,862      53,626

Gross profit

     94,108      58,977      170,616      110,657

Operating expenses:

           

Selling, general and administrative

     38,883      27,265      72,828      51,075

Research and development

     10,192      7,205      18,416      13,351
                           

Total operating expenses *

     49,075      34,470      91,244      64,426

Income from operations

     45,033      24,507      79,372      46,231

Interest and other income, net

     5,232      3,255      9,840      5,458
                           

Income before income taxes

     50,265      27,762      89,212      51,689

Provision for income taxes

     19,602      11,080      34,747      20,549
                           

Net Income

   $ 30,663    $ 16,682    $ 54,465    $ 31,140
                           

Earnings per share:

           

Basic

   $ 0.81    $ 0.45    $ 1.45    $ 0.85
                           

Diluted

   $ 0.79    $ 0.44    $ 1.41    $ 0.82
                           

Shares used in computing earnings per share:

           

Basic

     37,636      36,684      37,463      36,532
                           

Diluted

     38,657      38,124      38,528      37,974
                           

* Includes stock compensation expense of $1.5 million and $1.0 million in total cost of revenue and $7.9 million and $5.5 million in total operating expenses for the three months ended June 30, 2007 and 2006, respectively; $2.7 million and $1.8 million in total cost of revenue and $14.8 million and $9.7 million in total operating expenses for the six months ended June 30, 2007 and 2006, respectively.


INTUITIVE SURGICAL, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS)

 

     6/30/2007    12/31/06

Cash, cash equivalents, and investments

   $ 447,512    $ 330,296

Accounts receivable, net

     105,649      94,680

Inventory

     24,040      24,295

Property and equipment, net

     62,040      59,939

Goodwill

     118,207      118,240

Deferred tax assets

     34,118      31,677

Other assets

     17,132      12,663
             

Total assets

   $ 808,698    $ 671,790
             

Accounts payable and other accrued liabilities

   $ 53,956    $ 44,700

Deferred revenue

     43,393      37,385
             

Total liabilities

     97,349      82,085

Stockholders’ equity

     711,349      589,705
             

Total liabilities and stockholders’ equity

   $ 808,698    $ 671,790