Exhibit 99.1
INTUITIVE SURGICAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended, Six Months Ended,
6/30/04 6/30/03 6/30/04 6/30/03
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Sales:
Products $ 25,850 $ 19,151 $ 48,321 $ 36,443
Services 5,207 2,302 9,795 4,245
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Total sales 31,057 21,453 58,116 40,688
Cost of sales:
Products 9,260 6,906 18,073 14,678
Services 2,169 1,859 4,579 3,581
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Total cost of sales 11,429 8,765 22,652 18,259
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Gross profit 19,628 12,688 35,464 22,429
Gross profit % 63.2% 59.1% 61.0% 55.1%
Operating costs and expenses:
Selling, general, and
administrative 11,535 8,530 21,778 17,983
Research and development 3,626 3,627 8,936 7,050
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Total operating costs
and expenses 15,161 12,157 30,714 25,033
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Income (loss) from operations 4,467 531 4,750 (2,604)
Other income, net 626 347 1,232 1,189
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Income (loss) before income
tax provision 5,093 878 5,982 (1,415)
Income tax provision 263 0 299 0
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Net income (loss) $ 4,830 $ 878 $ 5,683 $ (1,415)
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Net earnings (loss) per share -
Basic $ 0.14 $ 0.05 $ 0.17 $ (0.08)
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Diluted $ 0.14 $ 0.05 $ 0.17 $ (0.08)
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Weighted average shares
outstanding used to compute
net earnings (loss) per share -
Basic 33,559 18,580 33,421 18,506
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Diluted 34,210 18,973 34,170 18,506
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INTUITIVE SURGICAL, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
Unaudited
6/30/04 12/31/03 (a)
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Assets
Current assets:
Cash and cash equivalents 8,230 11,335
Short-term investments 98,184 101,614
Accounts receivable, net 24,705 26,820
Inventories, net 7,162 8,788
Prepaid expenses and other current
assets 3,462 3,203
Restricted cash equivalents 204 188
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Total current assets 141,947 151,948
Property and equipment, net 29,012 10,288
Restricted cash equivalents 319 642
Intangible assets, net 7,155 8,089
Goodwill 143,332 143,106
Other assets 695 921
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Total assets $ 322,460 $ 314,994
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Liabilities and stockholders' equity
Current liabilities:
Accounts payable 4,311 5,894
Accrued compensation and employee
benefits 5,186 5,267
Warranty accrual 152 702
Restructuring accrual 902 971
Other accrued liabilities 7,240 8,432
Deferred revenue 13,385 11,345
Current portion of notes payable 904 1,030
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Total current liabilities 32,080 33,641
Long-term debt 230 695
Deferred revenue 1,166 1,148
Other accrued liabilities 57 553
Stockholders' equity
Common stock 34 33
Preferred stock - -
Additional paid-in capital 421,911 416,559
Deferred compensation - (99)
Accumulated deficit (132,731) (138,414)
Accumulated other comprehensive income (287) 878
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Total stockholders' equity 288,927 278,957
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Total liabilities and stockholders' equity $ 322,460 $ 314,994
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(a) - Derived from the audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2003 but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.