Intuitive Surgical Posts Higher Revenue, But Profit Declines -- Update

   By Josh Beckerman 
 

Intuitive Surgical Inc. (ISRG) said its third-quarter revenue rose 10% as procedure volume and shipments of its da Vinci systems increased, ending a string of year-over-year revenue declines.

The Sunnyvale, Calif., company has struggled as concerns about the safety and cost-effectiveness of its robots have hurt sales, according to analysts. Its profit for the latest period declined as operating expenses increased.

Intuitive Surgical said Tuesday it is "pleased with our third quarter procedure and da Vinci system placement growth, the positive surgeon response to our da Vinci Xi System, and our progress in expanding our international business."

Results topped Wall Street expectations. The company's shares were up 0.2% to $496.95 in late trading.

The company reported a profit of $123.7 million, or $3.35 a share, compared with $156.8 million, or $3.99 a share, a year earlier. Excluding certain costs, the company's per-share earnings were $3.92 a share, down from $4.94 a share last year.

Revenue rose to $550.1 million from $499 million. Excluding the effect of a da Vinci trade-out program, revenue rose to $534 million from $499 million.

Analysts polled by Thomson Reuters had expected per-share earnings of $3.80 on revenue of $518 million.

Intuitive Surgical shipped 111 da Vinci systems during the quarter, up from 101 a year earlier.

In a study released this month that questioned the value of robotic surgery, researchers from Columbia University found that the technology costs significantly more and has a higher rate of complications than regular minimally invasive surgery for removing ovaries and ovarian cysts.

Intuitive Surgical said surgeons and patients choose to use the da Vinci system "because it can lead to fewer complications and shorter hospital stays." The company also said the technology is often used on patients "with more complex disease and higher risk factors," which the study didn't take into account.

Write to Josh Beckerman at [e-mail]

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