Q4 Highlights
Worldwide da Vinci procedures grew approximately 17% compared with the fourth quarter of 2016, driven primarily by growth in U.S. general surgery procedures and worldwide urologic procedures.
The Company shipped 216 da Vinci Surgical Systems compared with 163 in the fourth quarter of 2016.
Fourth quarter 2017 revenue of $892 million grew approximately 18% compared with $757 million for the fourth quarter of 2016.
Fourth quarter 2017 GAAP net loss was $39 million, or $0.35 per diluted share, compared with net income of $204 million, or $1.71 per diluted share, for the fourth quarter of 2016. Fourth quarter 2017 GAAP net loss reflects $318 million, or $2.83 per diluted share, of income tax expense related to the Tax Cuts and Jobs Act.
Fourth quarter 2017 non-GAAP* net income was $298 million, or $2.54 per diluted share, compared with $242 million, or $2.03 per diluted share, for the fourth quarter of 2016.
Q4 Financial Summary
Gross profit, income from operations, net income (loss), net income (loss) per diluted share, and diluted shares are reported on a GAAP and non-GAAP* basis. The non-GAAP* measures are described below and are reconciled to the corresponding GAAP measures at the end of this release.
Fourth quarter 2017 revenue was $892 million, an increase of approximately 18% compared with $757 million in the fourth quarter of 2016. Higher fourth quarter revenue was driven by increased procedures and systems placements.
Fourth quarter 2017 instrument and accessory revenue increased by approximately 18% to $457 million, compared with $386 million for the fourth quarter of 2016, primarily driven by approximately 17% growth in da Vinci procedure volume.
Fourth quarter 2017 systems revenue increased by approximately 20% to $283 million, compared with $236 million for the fourth quarter of 2016. The Company shipped 216 da Vinci Surgical Systems in the fourth quarter of 2017, compared with 163 in the fourth quarter of 2016. The fourth quarter 2017 da Vinci Surgical Systems shipments included 40 shipped under operating lease arrangements, compared with 13 during the fourth quarter of 2016. Fourth quarter 2017 service revenue increased by approximately 13% to $153 million, compared with $135 million for the fourth quarter of 2016.
Fourth quarter 2017 GAAP income from operations increased to $327 million, compared with $264 million in the fourth quarter of 2016. Fourth quarter 2017 non-GAAP* income from operations increased to $384 million, compared with $320 million in the fourth quarter of 2016.
Fourth quarter 2017 GAAP net loss was $39 million, or $0.35 per diluted share, compared with net income of $204 million, or $1.71 per diluted share, for the fourth quarter of 2016. Fourth quarter 2017 GAAP net loss reflected $318 million, or $2.83 per diluted share, of income tax expense as a result of the Tax Cuts and Jobs Act (“2017 Tax Act”) enacted on December 22, 2017. This amount primarily relates to a one-time deemed repatriation tax on undistributed foreign earnings and revaluation of deferred taxes due to a reduction of the U.S. corporate income tax rate. This amount is based on provisional estimates and may require subsequent adjustments due to additional guidance from and interpretations by regulatory and standard-setting bodies and changes in assumptions. Fourth quarter 2017 GAAP net loss benefited from the adoption of a new accounting standard in first quarter of 2017, which required that $20 million, or $0.18 per diluted share, of excess tax benefits related to employee share-based compensation awards be recorded as a component of income tax expense.
Fourth quarter 2017 non-GAAP* net income was $298 million, or $2.54 per diluted share, compared with $242 million, or $2.03 per diluted share, for the fourth quarter of 2016.
The Company ended the fourth quarter of 2017 with $3.8 billion in cash, cash equivalents, and investments, an increase of $45 million during the quarter, primarily driven by cash generated from operations and employee stock option exercises, partially offset by the settlement payment related to its first quarter accelerated share repurchase program.
Intuitive Surgical - News Release
