Summary
Intuitive Surgical, Inc. (ISRG) reported strong performance for the nine months ended September 30, 2009, demonstrating robust revenue growth driven by the continued adoption of its da Vinci Surgical System. Total revenue increased by 13.3% to $729.1 million, with a significant portion (55%) now coming from recurring revenue sources like instruments, accessories, and services, highlighting a growing installed base and customer stickiness. The company successfully launched its new da Vinci Si Surgical System, which contributed to higher average selling prices and also facilitated field upgrades from existing da Vinci S models. Despite facing macroeconomic headwinds affecting hospital capital equipment purchases, ISRG managed to increase its installed base of da Vinci systems to 1,308. The company also maintained a strong liquidity position, with cash, cash equivalents, and investments totaling over $1 billion, further bolstered by positive operating cash flow.
Financial Highlights
45 data points| Revenue | $280.10M |
| Cost of Revenue | $81.10M |
| Gross Profit | $199.00M |
| R&D Expenses | $24.60M |
| SG&A Expenses | $69.90M |
| Operating Expenses | $94.50M |
| Operating Income | $104.50M |
| Net Income | $64.60M |
| EPS (Basic) | $0.19 |
| EPS (Diluted) | $0.18 |
| Shares Outstanding (Basic) | 342.90M |
| Shares Outstanding (Diluted) | 352.80M |
Key Highlights
- 1Total revenue for the first nine months of 2009 grew to $729.1 million, up 13.3% from $643.4 million in the prior year.
- 2Recurring revenue, comprising instruments, accessories, and service, represented 55% of total revenue for the nine months ended September 30, 2009, up from 47% in the same period last year.
- 3The company sold 228 da Vinci Surgical Systems in the first nine months of 2009, a slight decrease from 250 in the prior year, but saw an increase in average selling price (ASP) due to the launch of the da Vinci Si system.
- 4Procedure volume increased significantly, with procedures growing approximately 49% in the third quarter of 2009 compared to the prior year.
- 5The installed base of da Vinci Surgical Systems grew to 1,308 as of September 30, 2009, compared to 1,111 at the end of 2008.
- 6The company maintained a strong balance sheet with $1.02 billion in cash, cash equivalents, and investments as of September 30, 2009.
- 7Net income for the first nine months of 2009 was $155.1 million, a slight increase from $153.6 million in the same period of 2008, with diluted EPS of $3.97.