Intuitive Surgical Cuts a Colossal Check: Fool by Numbers
By Anders Bylund
October 19, 2007
On Oct. 18, robotic surgery pioneer Intuitive Surgical (Nasdaq: ISRG) released third-quarter earnings for the period ended Sept. 30, 2007.
- The company sold 63 new robotic surgery systems during the quarter, including 17 outside the country. That's up from 46 systems sold a year ago, bringing the installed base up to 719 units across the globe.
- Intuitive is rapidly building a strong balance sheet, with no debt to speak of and a hefty cash position. Inventories are growing, but not nearly as fast as sales -- demand for its machines appears higher than the available supply.
- Intuitive Surgical is one of the top performers on our Motley Fool Rule Breakers scorecard, right next to other market thumpers like online jeweler Blue Nile (Nasdaq: NILE) and OLED pioneer Universal Display (Nasdaq: PANL). See the rest of the gang with a free 30-day trial pass to our early adopter money maker.
(Figures in thousands, except per-share data)
Income statement highlights
|
Q3 2007
|
Q3 2006
|
Change
|
|
Sales
|
$156,904
|
$95,832
|
63.7%
|
|
Net Profit
|
$40,919
|
$17,263
|
137%
|
|
Diluted EPS
|
$1.04
|
$0.45
|
131.1%
|
|
Diluted Shares
|
39,271
|
38,184
|
2.8%
|
Get back to basics with the income statement.
Margin checkup
|
Q3 2007
|
Q3 2006
|
Change*
|
|
Gross Margin
|
69.1%
|
65.7%
|
3.5
|
|
Operating Margin
|
34.4%
|
27.5%
|
6.9
|
|
Net Margin
|
26.1%
|
18%
|
8.1
|
*Expressed in percentage points.
Margins are the earnings engine.
Balance sheet highlights
|
Assets
|
Q3 2007
|
Q3 2006
|
Change
|
|
Cash + ST Invest.
|
$533,489
|
$292,297
|
82.5%
|
|
Accounts Rec.
|
$120,456
|
$71,679
|
68%
|
|
Inventory
|
$26,773
|
$22,330
|
19.9%
|
|
Liabilities
|
Q3 2007
|
Q3 2006
|
Change
|
|
Accounts Payable & Accrued Liabilities
|
$63,525
|
$36,230
|
75.3%
|
The balance sheet reflects the company's health.
Cash flow highlights
Free cash flow is a Fool's best friend. The company didn't let it out to play today, but Intuitive's full 10-Q statement tends to follow the earnings report within days. Stay tuned.
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