Summary
Intuitive Surgical Inc. (ISRG) reported significant year-over-year revenue growth for the fiscal year ending December 31, 2004, with sales reaching $138.8 million, a 51% increase from the previous year. The company achieved its first profitable year, reporting a net income of $23.5 million, or $0.67 per diluted share, a marked improvement from the net loss of $9.6 million in 2003. This financial turnaround was driven by increased adoption of the da Vinci Surgical System, particularly in urologic procedures, and substantial growth in recurring revenue from instruments and services, which now constitute 43% of total sales. The company shipped 76 da Vinci Surgical Systems in 2004, a 25% increase over 2003. The gross margin also improved significantly to 63.4% in 2004 from 48.0% in 2003, reflecting manufacturing efficiencies and cost reductions. Operating expenses grew at a slower pace than revenue, indicating operational leverage. Key strategic achievements in 2004 included FDA clearance for coronary anastomosis procedures and the launch of new 5mm instruments, expanding the system's clinical capabilities.
Key Highlights
- 1Revenue grew 51% to $138.8 million in 2004.
- 2Achieved first profitable year with a net income of $23.5 million.
- 3Gross margin improved significantly to 63.4% in 2004.
- 4Shipped 76 da Vinci Surgical Systems, a 25% increase year-over-year.
- 5Recurring revenue (instruments, accessories, service, training) grew over 100% to $60 million, representing 43% of total sales.
- 6Received FDA clearance for coronary anastomosis procedures.
- 7Launched new 5mm instrument line, expanding surgical options.