Intuitive Surgical (ISRG) Sees Q4 Revs of $757M, Vs Cons of $739.65M

Intuitive Surgical, Inc. (NASDAQ: ISRG), the industry leader in robotic-assisted surgery, today announced certain unaudited preliminary fourth quarter and full year 2016 financial results ahead of its participation at the 35th Annual JP Morgan Healthcare Conference on January 11-12, 2017, in San Francisco, California.

The Company expects revenue for the fourth quarter of 2016 of approximately $757 million (**** consensus is $739.65 million), an increase of approximately 12% compared with $677 million for the fourth quarter of 2015. The Company expects 2016 revenue of approximately $2.7 billion, an increase of approximately 13% compared with $2.4 billion for 2015. The unaudited preliminary results are prior to the completion of the Company’s annual independent audit and therefore are subject to adjustment.

Preliminary fourth quarter 2016 instrument and accessory revenue increased approximately 19% to approximately $386 million compared with $326 million for the fourth quarter of 2015. Full year 2016 instrument and accessory revenue increased approximately 17% to approximately $1.4 billion. Fourth quarter and full year 2016 instrument and accessory revenue growth was driven primarily by da Vinci procedure growth.

In 2016, approximately 753,000 surgical procedures were performed with the da Vinci Surgical System, an increase of approximately 15% compared with approximately 652,000 procedures performed in 2015. The growth in overall 2016 procedure volume was primarily driven by the growth in U.S. general surgery procedures and worldwide urologic procedures. da Vinci procedures increased approximately 15% for the fourth quarter of 2016 compared with the fourth quarter of 2015. The Company expects total da Vinci procedures to grow approximately 9% to 12% in 2017.

Preliminary fourth quarter 2016 da Vinci Surgical Systems revenue increased approximately 2% to approximately $236 million from $231 million for the fourth quarter of 2015. Systems revenue for 2016 increased approximately 10% to approximately $792 million compared with $722 million in 2015. The Company shipped 163 da Vinci Surgical Systems in the fourth quarter of 2016, compared with 158 systems in the fourth quarter of 2015. 13 of the fourth quarter 2016 da Vinci Surgical Systems were shipped under operating lease arrangements, compared with 16 in the fourth quarter of 2015. The Company shipped 537 da Vinci Surgical Systems in 2016, compared with 492 systems in 2015.

Preliminary fourth quarter 2016 service revenue of approximately $135 million increased approximately 12% compared with $120 million in the fourth quarter of 2015. Preliminary 2016 service revenue increased approximately 11% to approximately $517 million compared with $465 million in 2015.

Commenting on the announcement, Dr. Gary Guthart, President and CEO of Intuitive Surgical, said, “We are pleased by our fourth quarter results and encouraged by our future opportunities. In 2017, we look forward to advancing several key product development innovations targeted towards further improving patient outcomes and expanding the number of patients that can derive the benefits of robotically assisted minimally invasive therapies around the world. We anticipate accelerating up to $80 million of research, development, and clinical investment into 2017.”

Additional unaudited preliminary revenue and procedure information has been posted to the Investor Relations section of the Intuitive Surgical website at: http://phx.corporate-ir.net/phoenix.zhtml?c=122359&p=irol-IRHome.

The Company is scheduled to present at the 2017 JP Morgan Healthcare Conference on January 12, 2017, at 9:00 a.m. Pacific Time. The Company is scheduled to report its fourth quarter 2016 results during a conference call on January 24, 2017, at which point the Company will discuss the 2016 financial results in more detail. Dial-in and webcast access information for both of these events are also available in the Investor Relations section of the Intuitive Surgical website.

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