Intuitive Surgical, Inc. (ISRG) reported a third quarter net income of $1.55 per share, which beat the Zacks Consensus Estimate of $1.45. The company’s net income was $1.44 per share in the year-ago quarter.
Revenues in the quarter came in at $280.1 million as against $236.0 million in the year-ago quarter, thus reflecting an 18.7% increase. Revenues from the instruments and accessories segment increased 32.8% to $100.82 million from $75.94 million in the year-ago quarter. The increase was aided by approximately a 49% revenue growth in da Vinci surgical procedures in the quarter despite lower revenues per procedure.
Revenues from the company’s systems segment in the quarter increased 7.2% to $135.46 million from $126.33 million in the year-ago period. Revenues included $5.6 million which had been originally deferred in the first quarter. The company sold 86 da Vinci robot systems in the quarter, 72 in the US , 8 in Europe , and 6 in rest of world markets, compared to 91 sold in the third quarter of 2008. The flagship da Vinci robot systems are used in delicate prostate and gynecological procedures. Management stated that currently 1,308 da Vinci systems have been installed worldwide, including 968 in the United States .
Revenues from the services segment increased 30% to $43.85 million from $33.72 million in the year-ago quarter primarily due to the growth in the installed base of da Vinci Surgical Systems.
Income from operations in the quarter came in at $104.49 million as against $85.03 million in the year-ago period, thus reflecting a 22.9% increase. Total cost of revenues increased 22.1% to $81.13 million from $66.42 million in the third quarter of 2008. Operating expenses increased 11.8% to $94.51 million from $84.54 million in the year-ago quarter. The increase reflects commissions associated with higher revenues, costs associated with 64 employees added during the quarter, and increased Research & Development costs.
Selling, general and administrative (SG&A) expenses for the quarter increased to $69.9 million as against $62.7 million in the year-ago quarter. Research & Development (R&D) spending increased 12.8% to $24.6 million in the reported quarter.
Intuitive exited the quarter with cash, cash equivalents and investments of $1,024 million, compared to $902 million in the previous quarter and $901.9 million at the end of 2008.
We have an Outperform rating on the stock.
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