10-KPeriod: FY2009

INTUITIVE SURGICAL INC Annual Report, Year Ended Dec 31, 2009

Filed January 29, 2010For Securities:ISRG

Summary

Intuitive Surgical, Inc. (ISRG) reported strong performance for the fiscal year ended December 31, 2009. Total revenue reached $1,052 million, a 20% increase year-over-year, driven by a 51% surge in surgical procedures performed using their da Vinci Surgical Systems. This growth was fueled by expanding adoption in key specialties like urology and gynecology, with prostatectomies and hysterectomies being major contributors. The company also saw robust growth in recurring revenue from instruments and accessories, which constituted 53% of total revenue, indicating increasing utilization of their installed base. The company successfully launched its new da Vinci Si Surgical System in Q2 2009, featuring enhanced imaging, an improved user interface, and a dual console for training and collaborative surgery, which is expected to drive future growth. Despite a challenging economic environment in 2009, ISRG demonstrated resilience, with system sales remaining stable and recurring revenue growing significantly. The company ended the year with a strong cash position of $1,172 million, underscoring its financial health and ability to fund ongoing operations and future expansion.

Financial Highlights

46 data points
Beta

Revenue

$1.05B

71.4% Gross Margin

Net Income

$232.60M

22.1% Net Margin

EPS (Diluted)

$0.66

Total Assets

$1.81B

Cash & Equivalents

$221.40M

Free Cash Flow

$392.20M

Financial Statements
Beta
Revenue$1.05B
Cost of Revenue$301.10M
Gross Profit$751.10M
R&D Expenses$95.10M
SG&A Expenses$278.60M
Operating Expenses$373.70M
Operating Income$377.40M
Net Income$232.60M
EPS (Basic)$0.67
EPS (Diluted)$0.66
Shares Outstanding (Basic)344.70M
Shares Outstanding (Diluted)352.80M

Key Highlights

  • 1Total revenue increased by 20% to $1,052 million in 2009.
  • 2Surgical procedures performed using da Vinci systems grew by 51% to approximately 205,000.
  • 3Recurring revenue (instruments, accessories, services) grew by 34% to $562 million, representing 53% of total revenue.
  • 4Launched the new da Vinci Si Surgical System in Q2 2009, enhancing visual acuity, ease of use, and introducing a dual console.
  • 5Sold 338 da Vinci Surgical Systems, a slight increase from 335 in 2008.
  • 6Maintained a strong installed base of 1,395 da Vinci Surgical Systems.
  • 7Ended the year with $1,172 million in cash, cash equivalents, and investments, demonstrating strong liquidity.

Frequently Asked Questions

Intuitive Surgical's total revenue grew by 20% in 2009, reaching $1,052 million, up from $875 million in 2008.

The number of surgical procedures performed using da Vinci Surgical Systems increased significantly by 51% to approximately 205,000 in 2009, compared to 136,000 in 2008. Key procedures like da Vinci Prostatectomy (dVP) and da Vinci Hysterectomy (dVH) were major drivers of this growth.

Recurring revenue, derived from instruments, accessories, and services, is a crucial part of Intuitive Surgical's business model. In 2009, it grew by 34% to $562 million, representing 53% of total revenue. This indicates strong utilization of the installed base of da Vinci systems and provides a stable revenue stream.

Intuitive Surgical launched the da Vinci Si Surgical System in the second quarter of 2009, which features significant enhancements such as improved InSite™ imaging for better visual acuity, a redesigned user interface for simpler operation and surgeon comfort, and a dual console option that supports surgeon training and collaborative surgery.