Summary
Intuitive Surgical, Inc. (ISRG) presented its 2013 annual report, highlighting continued revenue growth driven by a significant increase in da Vinci surgical procedures, particularly in general surgery and gynecology in the U.S., and urology internationally. While total revenue saw a modest 4% increase to $2.27 billion, the company experienced a notable 16% rise in procedures performed to approximately 523,000, underscoring the growing adoption of its robotic surgical systems. However, the company faced headwinds in 2013, including a decrease in U.S. da Vinci Prostatectomy (dVP) procedures due to changes in screening recommendations and treatment patterns, and a slowdown in U.S. benign gynecology procedures attributed to factors like negative media reports and payer trends. System revenue declined by 11%, reflecting longer sales cycles and pressures from healthcare reform and economic uncertainty on hospital capital spending. Despite these challenges, the company maintained a strong financial position with $2.75 billion in cash, cash equivalents, and investments, and continued its focus on research and development to expand product offerings and clinical applications.
Financial Highlights
48 data points| Revenue | $2.27B |
| Cost of Revenue | $670.90M |
| Gross Profit | $1.59B |
| R&D Expenses | $167.70M |
| SG&A Expenses | $574.00M |
| Operating Expenses | $741.70M |
| Operating Income | $852.50M |
| Net Income | $671.00M |
| EPS (Basic) | $1.90 |
| EPS (Diluted) | $1.86 |
| Shares Outstanding (Basic) | 352.80M |
| Shares Outstanding (Diluted) | 360.90M |
Key Highlights
- 1Total revenue grew 4% to $2.27 billion in 2013, driven by a 16% increase in da Vinci procedures to 523,000.
- 2Instruments and accessories revenue increased by 14%, indicating strong utilization of existing systems.
- 3Recurring revenue (instruments, accessories, and service) represented 63% of total revenue, demonstrating a robust service-based component to the business.
- 4U.S. system sales decreased by 11% due to longer sales cycles and hospital capital spending uncertainties.
- 5U.S. Prostatectomy (dVP) procedures saw a 6% decline, impacting overall procedure growth.
- 6U.S. benign gynecology procedures experienced slower growth, attributed to market saturation and external factors.
- 7The company held $2.75 billion in cash, cash equivalents, and investments, providing significant financial flexibility.