Intuitive Surgical, Inc. (NASDAQ:ISRG), the industry leader in robotic-assisted surgery, today announced financial results for the quarter ended September 30, 2016.
Q3 Highlights
| • | Worldwide da Vinci procedures grew approximately 14% compared with the third quarter of 2015 driven primarily by growth in U.S. general surgery procedures and worldwide urologic procedures. |
| • | The Company shipped 134 da Vinci Surgical Systems compared with 117 in the third quarter of 2015. |
| • | Third quarter 2016 revenue of $683 million grew approximately 16% compared with $590 million for the third quarter of 2015. |
| • | Third quarter 2016 GAAP net income was $211 million, or $5.31 per diluted share, compared with $167 million, or $4.40 per diluted share, for the third quarter of 2015. |
| • | Third quarter 2016 non-GAAP* net income was $246 million, or $6.19 per diluted share, compared with $199 million, or $5.24 per diluted share, for the third quarter of 2015. Included in third quarter 2016 and 2015 net income per diluted share is $0.40 and $0.77, respectively, of benefits from certain income tax items. |
| • | The Company announced a joint venture with Shanghai Fosun Pharmaceutical (Group) Co., Ltd. to research, develop, manufacture and sell innovative, robotic-assisted catheter-based medical devices, which will initially pursue products targeting early diagnosis and cost-effective treatment of lung cancer. |
Q3 Financial Summary
Gross profits, income from operations, net income, and net income per share are reported on a GAAP and non-GAAP* basis. The non-GAAP* measures are described below and are reconciled to the corresponding GAAP measures at the end of this release.
Third quarter 2016 revenue was $683 million, an increase of approximately 16% compared with $590 million in the third quarter of 2015. Higher third quarter revenue was driven by growth in recurring instrument, accessory, and service revenue, and higher systems revenue.
Third quarter 2016 instrument and accessory revenue increased by approximately 17% to $348 million, compared with $298 million for the third quarter of 2015, primarily driven by approximately 14% growth in da Vinci procedure volume. Third quarter 2016 service revenue increased by approximately 10% to $130 million, compared with $117 million for the third quarter of 2015.
Third quarter 2016 systems revenue increased by approximately 18% to $205 million, compared with $174 million for the third quarter of 2015. Intuitive Surgical shipped 134 da Vinci Surgical Systems in the third quarter of 2016, compared with117 in the third quarter of 2015.
Third quarter 2016 income from operations increased to $256 million, compared with $190 million in the third quarter of 2015. Third quarter 2016 non-GAAP* income from operations increased to $308 million, compared with $240 million in thethird quarter of 2015. Third quarter 2016 GAAP and non-GAAP* income from operations benefited from a $7 million refund of previously paid Medical Device Excise Tax, reflected as a reduction to third quarter 2016 cost of revenue.
Third quarter 2016 GAAP net income was $211 million, or $5.31 per diluted share, compared with $167 million, or $4.40 per diluted share, for the third quarter of 2015. Third quarter 2016 non-GAAP* net income was $246 million, or $6.19 per diluted share, compared with $199 million, or $5.24 per diluted share, for the third quarter of 2015. Third quarter 2016 GAAP and non-GAAP* net income benefited from a $7 million pre-tax refund of previously paid Medical Device Excise Tax and $16 million, or $0.40 per share, relating to certain tax benefits. Third quarter 2015 GAAP and non-GAAP* net income benefited from $29 million, or $0.77 per share, relating to certain tax benefits.
Intuitive Surgical ended the third quarter of 2016 with $4.6 billion in cash, cash equivalents, and investments, an increase of $336 million during the quarter, primarily driven by cash generated from operations and proceeds from common stock issued.
Commenting on the announcement, Dr. Gary Guthart, President and CEO of Intuitive Surgical, said, “While we are pleased with our third quarter operating results, we remain focused on helping our customers build effective robotic surgery programs by understanding their needs and delivering the right products and services.”
Additional supplemental financial and procedure information has been posted to the Investor Relations section of the Intuitive website at: http://phx.corporate-ir.net/phoenix.zhtml?c=122359&p=irol-IRHome.
Webcast and Conference Call Information
Intuitive Surgical will hold a teleconference at 1:30 p.m. PDT today to discuss the third quarter 2016 financial results. The call is being webcast by NASDAQ OMX and can be accessed at Intuitive Surgical’s website at www.intuitivesurgical.com or by dialing (800) 230-1074 or (612) 234-9960.
About Intuitive Surgical, Inc.
Intuitive Surgical, Inc. (NASDAQ:ISRG), headquartered in Sunnyvale, Calif., is the industry leader in robotic-assisted, minimally invasive surgery. Intuitive Surgical develops, manufactures, and markets the da Vinci Surgical System.
About the da Vinci Surgical System
The da Vinci Surgical System is a surgical platform designed to enable complex surgery using a minimally invasive approach. The da Vinci Surgical System consists of an ergonomic surgeon console or consoles, a patient-side cart with three or four interactive arms, a high-performance vision system and proprietary EndoWrist instruments. Powered by state-of-the-art technology, the da Vinci Surgical System is designed to scale, filter, and seamlessly translate the surgeon’s hand movements into more precise movements of the EndoWrist instruments. The net result is an intuitive interface with improved surgical capabilities. By providing surgeons with superior visualization, enhanced dexterity, greater precision, and ergonomic comfort, the da Vinci Surgical System makes it possible for skilled surgeons to perform more minimally invasive procedures involving complex dissection or reconstruction. Surgeons, hospitals, and patients benefit from a large community of users and the Company’s robotic-assisted surgical ecosystem, beginning with the robotic platforms, and also including the broad instrument product line, imaging solutions, training programs and technology, clinical validation, field clinical support, field technical support, and program optimization. For more information about clinical evidence related to da Vinci Surgery, please visit www.intuitivesurgical.com/company/clinical-evidence/.
