SUNNYVALE, Calif., Oct. 20, 2009 (GLOBE NEWSWIRE) -- Intuitive Surgical, Inc. (Nasdaq:ISRG), the industry leader in surgical robotics, today reported third quarter of 2009 revenue of $280.1 million, compared with $236.0 million for the third quarter of 2008. Third quarter of 2009 revenue included $6.3 million of revenue that was originally deferred in the first quarter of 2009 in association with discounted offers made to certain customers to upgrade da Vinci S Surgical Systems to our recently introduced da Vinci Si Surgical Systems. All da Vinci Si upgrades related to these offers have now been completed and the full $20.1 million of revenue deferred in the first quarter of 2009 has been recognized, $13.8 million during the second quarter of 2009 and $6.3 million in the third quarter of 2009.

Third quarter of 2009 instruments and accessories revenue increased to $100.8 million from $75.9 million in the third quarter of 2008. The growth in instruments and accessories revenue was primarily driven by growth in da Vinci surgical procedures of approximately 49%, partially offset by lower instruments and accessories revenue per procedure. Third quarter of 2009 instruments and accessories revenue included recognition of $0.7 million of revenue that was originally deferred in the first quarter of 2009.

Third quarter of 2009 systems revenue was $135.5 million, compared to $126.3 million during the third quarter of 2008. 86 da Vinci Surgical Systems were sold during the third quarter of 2009, compared to 91 sold during the third quarter of 2008. 70 of the 86 systems sold during the third quarter of 2009 were the new da Vinci Si model. In addition, 23 da Vinci S Surgical systems were field upgraded during the third quarter of 2009 to da Vinci Si models, including 13 related to the first quarter offers described above. Third quarter of 2009 systems revenue included recognition of $5.6 million of revenue that was originally deferred in the first quarter of 2009.

Third quarter of 2009 service revenue increased to $43.9 million from $33.7 million during the third quarter of 2008, reflecting growth in the installed base of da Vinci Surgical Systems. The Company ended the third quarter of 2009 with 1,308 da Vinci Surgical Systems installed throughout the world.

Third quarter of 2009 operating income increased to $104.5 million from $85.0 million during the third quarter of 2008, reflecting growth in revenue but also included the impact of recognizing $6.3 million of revenue that was originally deferred in the first quarter of 2009. Since there was no cost deferred in association with the deferred revenue, the $6.3 million of revenue recognized had an equal impact on total revenue, operating income and pretax income. Operating results for the third quarter of 2009 also included $24.6 million of non-cash stock-based compensation expense compared with $21.0 million for the third quarter of 2008.

Third quarter of 2009 net income was $64.5 million, or $1.64 per diluted share, compared with $57.6 million, or $1.44 per diluted share for the third quarter of 2008. The $6.3 million of revenue recognized in the third quarter of 2009, related to revenue deferred in the first quarter, increased third quarter 2009 net income by approximately $3.8 million, or $0.09 per diluted share.

Intuitive ended the third quarter of 2009 with cash, cash equivalents and investments of $1,024 million, up $122 million from the previous quarter.

Commenting on the announcement, Lonnie Smith, Chairman and CEO of Intuitive Surgical, said, "We are pleased with our third quarter financial results, procedure growth, and system placements. Throughout these challenging economic times, patients, surgeons and hospitals have continued to recognize the value that our products bring to surgery and surgical outcomes."

The Company will also announce these results at a conference call today at 1:30 pm PDT. The dial-in numbers for the call are 877-909-3508 for participants located in the U.S. and 517-645-6051 for participants located outside the U.S. 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 Intuitive's Products

Intuitive Surgical, Inc. (Nasdaq:ISRG), headquartered in Sunnyvale, California, is the global technology leader in robotic-assisted, minimally invasive surgery. Intuitive Surgical develops, manufactures and markets robotic technologies designed to improve clinical outcomes and help patients return more quickly to active and productive lives. The Company's mission is to extend the benefits of minimally invasive surgery to the broadest possible base of patients. Intuitive Surgical - Taking surgery beyond the limits of the human hand(TM).

About the da Vinci(R) Surgical System

The da Vinci(R) System is a breakthrough surgical platform designed to enable complex surgery using a minimally invasive approach. The da Vinci(R) System consists of an ergonomic surgeon console or consoles, a patient-side cart with four interactive robotic arms, a high-performance vision system and proprietary EndoWrist(R) instruments. Powered by state-of-the-art robotic and computer technology, the da Vinci(R) System is designed to scale, filter and seamlessly translate the surgeon's hand movements into more precise movements of the EndoWrist(R) instruments. The net result is an intuitive interface with breakthrough surgical capabilities. By providing surgeons with superior visualization, enhanced dexterity, greater precision and ergonomic comfort, the da Vinci Surgical System makes it possible for more surgeons to perform minimally invasive procedures involving complex dissection or reconstruction.