Intuitive Surgical (ISRG) Prelim. Q4 Revenue Exceeds Expectations

Intuitive Surgical (NASDAQ: ISRG) announced certain unaudited preliminary fourth quarter and full year 2014 financial results ahead of its participation at the 33rd Annual JP Morgan Healthcare Conference on January 13, 2015, in San Francisco, California.

The Company expects GAAP revenue for the fourth quarter of 2014 of approximately $605 million, up approximately 5% from $576 million for the fourth quarter of 2013. (The Street is at Q4 revs of $587.5 million.) The Company expects GAAP revenue for the year ended December 31, 2014 to total approximately $2.1 billion, down approximately 6% from $2.3 billion for the year ended December 31, 2013. (The Street was modeling FY14 revs of $2.12 billion.) The Company expects non-GAAP revenue for the fourth quarter of 2014 of approximately $601 million, which excludes approximately $4 million of revenue associated with da Vinci Xi trade-out offers. The unaudited preliminary results are prior to the completion of our annual independent audit and therefore are subject to adjustment.

Preliminary fourth quarter 2014 instruments and accessories revenue on a GAAP basis is expected to increase approximately 5% to approximately $281 million from $268 million during the fourth quarter of 2013. Full year 2014 GAAP instruments and accessories revenue is expected to increase approximately 4% to approximately $1.1 billion. Fourth quarter and full year 2014 instruments and accessories revenue growth was driven primarily by da Vinci procedure growth.

In 2014, approximately 570,000 surgical procedures were performed with the da Vinci Surgical System, up 9% compared to approximately 523,000 procedures performed in 2013. The growth in overall 2014 procedure volume was driven by the growth in U.S. general surgery procedures and worldwide urologic procedures. da Vinci procedures increased approximately 10% for the fourth quarter of 2014 compared to the fourth quarter of 2013. The Company expects 2015 procedure growth of approximately 7% to 10%.

Preliminary fourth quarter 2014 da Vinci Surgical Systems revenue on a GAAP basis is expected to increase approximately 5% to approximately $214 million from $205 million during the fourth quarter of 2013. Fiscal year 2014 systems revenue is expected to decrease approximately 24% to approximately $633 million from $835 million in fiscal year 2013. The Company placed 137 da Vinci Surgical Systems during the fourth quarter of 2014, compared with 138 systems during the fourth quarter of 2013. The Company placed 431 da Vinci Surgical Systems during 2014, compared with 546 systems during 2013.

Preliminary fourth quarter 2014 GAAP service revenue is expected to increase approximately 6% to approximately $110 million from $103 million during the fourth quarter of 2013. Preliminary full year 2014 service revenue is expected to increase approximately 8% to approximately $429 million from $397 million during 2013.

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.

You May Also Be Interested In

• BofA raises AMD target to $720, sees server CPU TAM tripling to $211B by 2030
• KLX Energy narrows Q3 2026 revenue guidance, completes rights offering
• Moody’s upgrades Cushman & Wakefield rating to Ba3 on debt reduction