EXHIBIT 99.1
Taking surgical precision and technique beyond the limits of the human
hand.(TM)
FOR IMMEDIATE RELEASE Contacts: Ben Gong 408-523-2175
Sarah Norton 408-523-2161
INTUITIVE SURGICAL ANNOUNCES $19.2 MILLION FIRST QUARTER REVENUE, UP 33%
SUNNYVALE, CALIF. April 24, 2003 - Intuitive Surgical, Inc. (NASDAQ: ISRG), the
leader in operative surgical robotics, today reported sales of $19.2 million in
the first quarter of 2003, up 33% from $14.4 million in sales reported in the
first quarter of 2002. Higher sales were driven by continued recurring revenue
growth and additional DA VINCI(R) Surgical System unit shipments. First quarter
2003 recurring revenue totaled $5.4 million, up 103% over the prior year and up
$0.7 million sequentially from the fourth quarter of 2002. Intuitive shipped 14
DA VINCI(R) Surgical Systems during the first quarter 2003 compared to 13 during
the first quarter last year.
Q103 Q102 INCREASE
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REVENUE ($MILLIONS)
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Systems $ 13.8 $ 11.7 $ 2.1
Instruments/Accessories $ 3.6 $ 1.7 $ 1.9
Service $ 1.8 $ 1.0 $ 0.8
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$ 19.2 $ 14.4 $ 4.8
SYSTEM POPULATION
Placements 14 13 1
Cumulative Placements 163 102 61
Gross margin for the first quarter of 2003 was 54.6%, compared with 47.9% for
the first quarter of 2002. Improved 2003 gross margin was driven by a higher DA
VINCI(R) Surgical System average selling price and lower product warranty costs.
Net loss for the first quarter 2003 was $2.3 million, or ($0.06) per share
compared to a net loss of $5.6 million, or ($0.15) per share during the first
quarter 2002. Intuitive used $5.8 million of cash during the first quarter,
ending the period with $45.0 million in cash, cash equivalents and short-term
investments.
Commenting on the announcement, Lonnie Smith, President and CEO of Intuitive
Surgical said: "We are pleased with our continued revenue growth and recurring
revenue momentum. Our sequentially lower operating expenses and shrinking net
loss demonstrate our progress towards achieving profitability. We are pleased
with our momentum as we move forward with our plans to merge with Computer
Motion."
Intuitive Surgical and Computer Motion continue to expect to close the proposed
merger by the end of June 2003. Currently, planning for the post-merger
transition is underway and the companies expect to meet the estimated $18
million in annual operating pre-tax cost savings. The outlook for the combined
entity is to record between $110 and $130 million of 2003 revenue on a pro forma
basis. The companies are targeting profitability by the fourth quarter of 2003
for the combined entity, excluding amortization of intangible assets and
one-time charges associated with the merger. The companies are analyzing
possible post-merger plans to enhance the efficiency and productivity of a
merged company. While no final decisions have been made, the companies are
considering various post-merger opportunities including the consolidation of
manufacturing and administrative functions at corporate headquarters,
maintaining an engineering presence in existing locations, and creating a single
sales and service force to cost-effectively serve and support customers
world-wide.
The company will also announce these results at a conference call today at 1:30
PM PST. The dial-in numbers for this call are 877-909-3508 for U.S. calls and
484-630-4228 for international calls. The passcode is ISRG and the meeting
leader is Mr. Lonnie Smith. To access financial information that will be
discussed on the call, please visit Intuitive Surgical's website at
www.intuitivesurgical.com.
About the DA VINCI(R) Surgical System:
The DA VINCI(R) Surgical System consists of a surgeon's viewing and control
console having an integrated, high-performance INSITE(R) 3-D vision system, a
patient-side cart consisting of three robotic arms that position and precisely
maneuver endoscopic instruments and an endoscope, and a variety of articulating
ENDOWRIST(R) Instruments. By integrating computer-enhanced technology with
surgeons' technical skills, Intuitive believes that its System enables surgeons
to perform better surgery in a manner never before experienced. The DA VINCI(R)
Surgical System seamlessly and directly translates the surgeon's natural hand,
wrist and finger movements on instrument controls at the surgeon's console
outside the patient's body into corresponding micro-movements of the instrument
tips positioned inside the patient through small puncture incisions, or ports.
# # #
This news release contains forward-looking statements within the meaning of the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995, including statements about future financial and operating results and
Intuitive Surgical's anticipated merger with Computer Motion. You can identify
these forward-looking statements when you see us using words such as "intends,"
"expects," "anticipates," "estimates" and other similar expressions. These
statements are based on current expectations and beliefs and are subject to a
number of risks, uncertainties and assumptions that could cause actual results
to differ materially from those described in the forward-looking statements.
Actual results could differ materially from those expressed or implied in any
forward-looking statements as a result of certain risks and uncertainties,
including, without limitation, competition and market acceptance of products;
ability to obtain regulatory approvals and third-party reimbursements; ability
to raise additional capital; non-consummation of the proposed merger; prior to
the closing of the proposed merger the businesses of Intuitive Surgical or
Computer Motion suffer due to uncertainty; that the parties are unable to
successfully execute their integration strategies, or achieve planned synergies;
and other factors described in the Securities and Exchange Commission reports
filed by Intuitive Surgical and Computer Motion, including their most recent
filings on Form 10-K. Intuitive Surgical and Computer Motion undertake no
obligation to publicly update any forward-looking statements for any reason,
even if new information becomes available or other events occur in the future.
In connection with Intuitive Surgical's proposed merger with Computer Motion,
Intuitive Surgical has filed a registration statement on Form S-4 containing a
joint proxy statement/prospectus and other relevant materials. INVESTORS AND
SECURITY HOLDERS OF INTUITIVE SURGICAL AND COMPUTER MOTION ARE URGED TO READ THE
JOINT PROXY STATEMENT/PROSPECTUS AND THE OTHER MATERIALS CONTAINED IN THE
REGISTRATION STATEMENT BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT
INTUITIVE SURGICAL, COMPUTER MOTION AND THE PROPOSED MERGER. The registration
statement and any other documents filed with the SEC by Intuitive Surgical or
Computer Motion may be obtained free of charge at the SEC's website at
www.sec.gov. In addition, investors and security holders may obtain free copies
of the documents filed with the SEC by Intuitive Surgical by directing a request
to Intuitive Surgical, Inc., 950 Kifer Road, Sunnyvale, CA 94086, Attn: Sarah
Norton. Investors and security holders may obtain free copies of the documents
filed with the SEC by Computer Motion by contacting Computer Motion, Inc., 130-B
Cremona Drive, Goleta, CA 93117, Attn: Dan Tamkin.
INTUITIVE(R), DA VINCI(R), INSITE(R), and ENDOWRIST(R) are registered trademarks
of Intuitive Surgical, Inc.
INTUITIVE SURGICAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
3 MONTHS ENDED
--------------
3/31/03 3/31/02
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Sales $ 19,235 $ 14,409
Cost of sales 8,738 7,507
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Gross Margin 10,497 6,902
Gross Margin % 54.6% 47.9%
Operating costs and expenses
Selling, general and administrative 10,209 8,785
Research and development 3,423 4,232
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Total operating costs and expenses 13,632 13,017
Loss from operations (3,135) (6,115)
Interest income/(expense) 842 498
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Net loss $ (2,293) $ (5,617)
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Net loss per share - basic and diluted $ (0.06) $ (0.15)
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Shares used in computing basic and
diluted net loss per common share 36,862 36,308
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INTUITIVE SURGICAL, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
UNAUDITED
03/31/03 12/31/02 *
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ASSETS
Current assets:
Cash and cash equivalents $ 22,774 $ 17,607
Short-term investments 22,235 33,232
Accounts receivable, net 20,895 16,887
Inventory, net 8,282 8,738
Prepaid expenses 2,037 2,161
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Total current assets 76,223 78,625
Net property, plant, equipment 9,823 10,388
Other assets 3,370 2,568
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Total assets $ 89,416 $ 91,581
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 10,142 $ 9,282
Accrued compensation and employee benefits 2,225 4,666
Warranty accrual 2,100 2,269
Accrued liabilities 3,485 3,497
Deferred revenue 6,140 4,838
Current portion of long-term debt 1,434 1,511
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Total current liabilities 25,526 26,063
Long term liabilities 1,531 1,838
Stockholders' equity:
Common stock 37 36
Additional paid-in capital, net of issuance costs 192,412 191,020
Deferred compensation (112) (223)
Accumulated deficit (131,084) (128,791)
Accumulated other comprehensive income 1,106 1,638
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Total stockholders' equity 62,359 63,680
Total liabilities and stockholders' equity $ 89,416 $ 91,581
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* - Derived from the audited financial statements included in our annual report
on Form 10K for the year ended December 31, 2002 but does not include all of the
information and footnotes required by accounting principles generally accepted
in the United States for complete financial statements.