conference date: July 22, 2014 @ 1:30 PM Pacific Time
for quarter ending: June 30, 2014 (second quarter, Q2 2014)
Overview: Some sequential improvement in number of systems shipped is nice to see, but still down y/y.
Basic data (GAAP):
Revenue was $512.2 million, up 10% sequentially from $464.7 million but down 11% from $578.5 million in the year-earlier quarter.
Net income was $104.0 million, up 135% sequentially from $44.3 million, and down 35% from $159.1 million year-earlier.
EPS (earnings per share, diluted) were $2.77, up 145% sequentially from $1.13 and and down 29% from $3.90 year-earlier.
Intuitive Surgical shipped 96 da Vinci Surgical Systems, up sequentially from 87, but down from 143 in the year-earlier quarter.
Procedure volume rose 8% sequentially and by 9% y/y.
Revenue from Da Vinci system sales was $144 million, up 36% sequentially from $106 million and down 33% from $216 million in the year-earlier quarter.
Revenue from instruments and accessories was $262 million, up 3% sequentially from $254.8 million and down 1% from $265 million year-earlier.
Revenue from services was $107 million, up 3% sequentially from $103.9 million and up 9% from $98 million year-earlier.
Non-GAAP net income was $140 million, down from $189 million year-earlier. Non-GAAP EPS was $3.73, down from $4.63 year-earlier.
The cash and equivalents balance ended at $2 billion, down $920 million in the quarter. Cash flow from operations was $ million. About $1 billion of cash was used to repurchase shares in the quarter.
Cost of revenue was $167.8 million. Operating expenses of $201.4 million included: $161.2 million for selling, general, and administrative; $40.2 million for research and development. Leaving income from operations of $143.0 million. Other net expense was $0.4 million. Income tax expense $38.6 million.
There was $42 million non-cash stock compensation expense in the quarter.
Believes there are still many opportunities to develop and sell robotic surgery systems and instruments.
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