Intuitive Surgical Announces Fourth Quarter Earnings

SUNNYVALE, Calif., Jan. 20, 2011 (GLOBE NEWSWIRE) -- Intuitive Surgical, Inc. (Nasdaq:ISRG), the industry leader in surgical robotics, today reported fourth quarter of 2010 revenue of $389 million, up 21% compared with $323 million for the fourth quarter of 2009. Fourth quarter of 2010 revenue growth was driven by continued robotic procedure adoption and higher da Vinci Surgical System sales.

Fourth quarter of 2010 instruments and accessories revenue increased 33% to $151 million from $113 million in the fourth quarter of 2009. The growth in instruments and accessories revenue was primarily driven by growth in da Vinci surgical procedures of approximately 35%. Fourth quarter of 2010 systems revenue was $178 million, an increase of 10%, compared to $162 million during the fourth quarter of 2009. Fourth quarter of 2010 service revenue increased 27% to $61 million from $48 million during the fourth quarter of 2009, reflecting growth in the installed base of da Vinci Surgical Systems.

Fourth quarter of 2010 operating income increased to $154 million from $128 million during the fourth quarter of 2009. Operating results for the fourth quarter of 2010 included $30 million of non-cash stock-based compensation expense compared with $25 million for the fourth quarter of 2009.

Intuitive reported a full fiscal year 2010 income tax rate of 33.3% of pretax income, compared to 37.2% recorded through the first three quarters of 2010. The rate reduction realized in the fourth quarter reflected the retroactive reinstatement of the federal research and development tax credit, a reduction in the amount of non-deductible option expenses, and a favorable geographic split of earnings.

Fourth quarter of 2010 net income was $121 million, or $3.02 per diluted share, compared with $78 million, or $1.95 per diluted share for the fourth quarter of 2009.

Revenue for the year ended December 31, 2010 totaled $1,413 million, increasing 34% from $1,052 million for the year ended December 31, 2009. Net income for the year ended December 31, 2010 was $382 million, or $9.47 per diluted share, compared to net income of $233 million, or $5.93 per diluted share for the year ended December 31, 2009.