01—Abstract
Summary
Summary of the 10-K filed January 29, 2010. Cited figures are marked; the original filing is the authoritative source.
Intuitive Surgical, Inc. (ISRG) reported strong performance for the fiscal year ended December 31, 2009.
Total revenue reached $1,052 milliona, 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 millionb, underscoring its financial health and ability to fund ongoing operations and future expansion.
02—Key points
Key Highlights
- Total revenue increased by 20% to $1,052 million in 2009.
- Surgical procedures performed using da Vinci systems grew by 51% to approximately 205,000.
- Recurring revenue (instruments, accessories, services) grew by 34% to $562 million, representing 53% of total revenue.
- Launched the new da Vinci Si Surgical System in Q2 2009, enhancing visual acuity, ease of use, and introducing a dual console.
- Sold 338 da Vinci Surgical Systems, a slight increase from 335 in 2008.
- Maintained a strong installed base of 1,395 da Vinci Surgical Systems.
- Ended the year with $1,172 million in cash, cash equivalents, and investments, demonstrating strong liquidity.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2009, Intuitive Surgical kept $0.22.
- Revenue$1.05B100.0%
- Cost of revenue−$301.1M28.6%
- Gross profit$751.1M71.4%
- Operating costs−$373.7M35.5%
- Operating income$377.4M35.9%
- Interest, other & tax−$144.8M13.8%
- Net income$232.6M22.1%
Where FY2009 revenue went
$1.05B- Cost of revenue: $301.1M, 29% of revenue
- SG&A: $278.6M, 26% of revenue
- Net income: $232.6M, 22% of revenue
- Interest, other & tax: $144.8M, 14% of revenue
- R&D: $95.1M, 9.0% of revenue
Kept 22% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2009filed January 29, 2010Financial Statements
FY2009 against FY2008
| Line item | FY2009FY2008 | Change |
|---|---|---|
| Revenue | $1.05B$874.90M | +20.3% |
| Cost of Revenue | $301.10M$254.10M | +18.5% |
| Gross Profit | $751.10M$620.80M | +21.0% |
| R&D Expenses | $95.10M$79.40M | +19.8% |
| SG&A Expenses | $278.60M$230.60M | +20.8% |
| Operating Expenses | $373.70M$310.00M | +20.5% |
| Operating Income | $377.40M$310.80M | +21.4% |
| Net Income | $232.60M$204.30M | +13.9% |
| EPS (Basic) | $0.67$0.58 | +15.4% |
| EPS (Diluted) | $0.66$0.57 | +15.8% |
| Shares Outstanding (Basic) | 344.70M350.10M | −1.5% |
| Shares Outstanding (Diluted) | 352.80M359.10M | −1.8% |
05—Questions
Frequently Asked Questions
What was Intuitive Surgical's revenue growth in 2009?
Intuitive Surgical's total revenue grew by 20% in 2009, reaching $1,052 million, up from $875 million in 2008.
How did the da Vinci Surgical System's usage evolve in 2009?
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.
What is the significance of the recurring revenue for Intuitive Surgical?
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.
What are the key new developments for the da Vinci Surgical System?
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.
06—Continue