Intuitive Surgical, Inc. announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2014. For the quarter, the company reported total revenue of USD 604.7 million against USD 576.2 million a year ago. Income from operations was USD 186.1 million against USD 208.6 million a year ago. Income before taxes was USD 184.8 million against USD 214.5 million a year ago. Net income was USD 146.8 million or USD 3.94 per diluted share against USD 166.2 million or USD 4.28 per diluted share a year ago. Non-GAAP revenue was USD 600.8 million against USD 576.2 million a year ago. Non-GAAP income from operations was USD 237 million against USD 254.9 million a year ago. Non-GAAP income per diluted share was USD 4.92 against USD 4.98 a year ago. Non-GAAP net income was USD 183.5 million against USD 193.4 million a year ago. The company generated an operating profit of USD 237 million in the quarter before noncash stock compensation expense, down 8% from the fourth quarter of last year.

For the year, the company reported total revenue of USD 2,131.7 million against USD 2,265.1 million a year ago. Income from operations was USD 544.8 million against USD 852.5 million a year ago. Income before taxes was USD 549.0 against USD 870.9 million a year ago. Net income was USD 418.8 million or USD 11.11 per diluted share against USD 671 million or USD 16.73 per diluted share a year ago. Non-GAAP income from operations was USD 818.7 million against USD 1,042.7 million a year ago. Non-GAAP income per diluted share was USD 16.10 against USD 19.83 a year ago. Non-GAAP net income was USD 606.9 million against USD 795 million a year ago. The company generated USD 819 million in operating profit before noncash stock option expense, down 21% from last year.

The company expects pro forma effective rate for 2015 will reflect a more normal range of 28% to 30%. The tax rate will fluctuate with changes in mix of U.S. and OUS income, and will not reflect a federal research and development credit, unless such credit is reinstated. The company expects 2015 pro forma gross profit margin to be fairly consistent with fourth quarter of 2014. The company expects to grow pro forma 2015 operating expenses between 7% and 10% above 2014 levels.