UPDATE 2-Intuitive Surgical profit falls, meets Street view
* Q1 EPS of $1.02 ex items in line with analyst views
* Sales of da Vinci systems fall to 66 from 74 a year ago
* Shares rise 7.1 percent
(Adds analyst comment, details, updates shares)
NEW YORK, April 16 (Reuters) - Intuitive Surgical Inc (ISRG.O) posted a 37 percent drop first-quarter profit on Thursday as it sold fewer of its da Vinci robotic surgical systems and took revenue deferrals associated with product upgrades, but results met analyst expectations.
Shares of Intuitive Surgical rose 7.1 percent.
Investors have been concerned about the prospects for Intuitive Surgical and other medical device makers as hospitals cut back on expensive purchases amid the weak economy.
"With a still-difficult hospital purchasing environment, we are encouraged by these solid results, but we will await further evidence of a sustained recovery before becoming more constructive on the name," William Blair analyst Ben Andrew said in a research note.
Net income fell to $28.1 million, or 72 cents per share, from $44.8 million, or $1.12 per share, a year ago.
Excluding the 30-cent-per-share hit tied to the revenue deferrals, earnings of $1.02 were in line with analyst forecasts, according to Reuters Estimates.
The Sunnyvale, California-based company said revenue was basically flat at $188.4 million. Intuitive expects to recognize $20.1 million in revenue deferrals in 2009.
The company sold 66 da Vinci systems in the first quarter compared to 74 during the year-ago period. Its systems revenue fell nearly 30 percent to $69.5 million.
Andrew had expected sales of 55 systems in the quarter, while Rick Wise of Leerink Swann had expected about 50 and called the results "generally positive."
"Despite the challenging economic environment and reduced hospital spending, procedures performed with the da Vinci surgical system continued to demonstrate relatively high growth," Intuitive Chief Executive Lonnie Smith said in a statement.
Intuitive shares rose $8.38 to $125.79 in morning trading on the Nasdaq.
(Reporting by Lewis Krauskopf, editing by Dave Zimmerman)
