(Adds sales details, share move, company comment)
July 22 Intuitive Surgical Inc on
Tuesday said it sold more of its high-priced robot surgical
systems in the second quarter than in its dismal first quarter
even as the once fast-growing company posted its fifth straight
quarterly earnings decline.
Sales of its da Vinci robot surgical systems, which go for
about $1.5 million each, fell from a year ago but were up from
the prior quarter.
The company sold 96 da Vinci systems in the quarter, down
from 143 a year ago but an improvement over the 87 shipped in
the first quarter.
Intuitive posted a net profit of $104 million, or $2.77 per
share, down from $159.1 million, or $3.90 per share, a year ago.
Revenue for the quarter fell 11 percent to $512.2 million
but exceeded Wall Street's diminished expectations of $501.7
million, according to Thomson Reuters I/B/E/S.
Instruments and accessories revenue fell about 1 percent to
$262 million, but procedures using da Vinci systems rose about 9
percent, driven by growth in U.S. general surgery and
international urologic procedures. Revenue per procedure was
about $1,800 for Intuitive.
Based on the better second quarter, the company took up the
low end of its full-year procedure forecast and now sees growth
of 5 percent to 8 percent. Its prior view was for growth of 2 to
The company declined to provide a full-year revenue forecast
as had been its past practice each quarter, citing numerous
Intuitive's volatile shares rose nearly 11 percent to $435
in after hours trading. They have been about flat for the year,
but are down more than 20 percent since early July of 2013.
Sunnyvale, California-based Intuitive had enjoyed
double-digit revenue growth and steadily rising da Vinci sales
in past years. Those trends reversed last year as media reports
questioned the cost effectiveness of using the robots for
certain procedures. Also contributing to the reversal:
uncertainty about capital spending at hospitals, physicians
holding off on recommending prostate surgery for
slower-progressing cancers and a decline in benign gynecological
Intuitive Chief Executive Gary Guthart said on a conference
call that he was encouraged by several trends relative to the
first quarter, but added that he expects constraints on hospital
capital spending to continue.
(Reporting by Bill Berkrot; Editing by Jonathan Oatis and David