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 josh.beckerman@wsj.com
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