Intuitive Surgical Announces First Quarter Earnings

SUNNYVALE, Calif., April 18, 2017 (GLOBE NEWSWIRE) -- Intuitive Surgical, Inc. (NASDAQ:ISRG), the global technology leader in robotic-assisted, minimally invasive surgery, today announced financial results for the quarter ended March 31, 2017.

Q1 Highlights

• Worldwide da Vinci procedures grew nearly 18% compared with the first quarter of 2016, driven primarily by growth in U.S. general surgery procedures and worldwide urologic procedures.
• The Company shipped 133 da Vinci Surgical Systems compared with 110 in the first quarter of 2016.
• First quarter 2017 revenue of $674 million grew approximately 13% compared with $595 million for the first quarter of 2016.
• First quarter 2017 GAAP net income was $180 million, or $4.67 per diluted share, compared with $136 million, or $3.54 per diluted share, for the first quarter of 2016. 
• First quarter 2017 non-GAAP* net income was $196 million, or $5.09 per diluted share, compared with $170 million, or $4.42 per diluted share, for the first quarter of 2016.

Q1 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.

First quarter 2017 revenue was $674 million, an increase of approximately 13% compared with $595 million in the first quarter of 2016. Higher first quarter revenue was driven by growth in recurring instrument, accessory, and service revenue, and higher systems revenue.

First quarter 2017 revenue excludes $23 million that was deferred in association with a customer trade-out program that the Company plans to offer to certain first quarter customers. Those customers will be offered the opportunity to trade products purchased in the first quarter of this year for products expected to be launched in the future.

First quarter 2017 instrument and accessory revenue increased by approximately 18% to $381 million, compared with $322 million for the first quarter of 2016, primarily driven by nearly 18% growth in da Vinci procedure volume. First quarter 2017 service revenue increased by approximately 13% to $140 million, compared with $125 million for the first quarter of 2016.

First quarter 2017 systems revenue increased by approximately 4% to $153 million, compared with $148 million for the first quarter of 2016. Intuitive Surgical shipped 133 da Vinci Surgical Systems in the first quarter of 2017, compared with 110 in the first quarter of 2016. First quarter 2017 systems revenue reflects the trade-out program deferral.

First quarter 2017 income from operations increased to $192 million, compared with $179 million in the first quarter of 2016. First quarter 2017 non-GAAP* income from operations increased to $264 million, compared with $229 million in the first quarter of 2016.

First quarter 2017 GAAP net income was $180 million, or $4.67 per diluted share, compared with $136 million, or $3.54 per diluted share, for the first quarter of 2016. First quarter 2017 GAAP net income benefited from the adoption of a new accounting standard which required that $33 million, or $0.85 per share, of excess tax benefits related to employee share-based compensation awards be recorded as a component of income tax expense. First quarter 2017 results also included pre-tax litigation charges of approximately $21 million, or $0.39 per share net of income tax.