Intuitive Surgical Profit Rises, But Shares Slip

SUNNYVALE, Calif. (AP) — Shares of Intuitive Surgical Inc. fell in premarket trading Wednesday, after the company said installations of its da Vinci robotic surgery system decreased in the third quarter.

Late Tuesday, Intuitive said its profit rose 12 percent, to $64.5 million, or $1.64 per share, from $57.6 million, or $1.44 per share. Revenue grew 19 percent to $280.1 million from $236 million, mostly due to improved sales of instruments and accessories.

The third-quarter results also include $6.3 million in deferred revenue. Earlier this year, Intuitive offered customers the option to upgrade their da Vinci S systems and pay later. It has now recorded all the revenue from that offer. The deferred revenue added $3.8 million, or 9 cents per share, to the company's profit.

The result was above Wall Street estimates. Analysts were expecting a profit of $1.48 per share and revenue of $258.2 million, according to Thomson Reuters. But Intuitive shares fell $14.35, or 5.4 percent, to $253.10 from $267.45 in premarket activity.

Da Vinci systems are used in heart surgeries, prostatectomies and hysterectomies, and other procedures. Surgical procedures on da Vinci system rose 49 percent, Intuitive said, but revenue per procedure fell. A total of 86 systems were sold, down from 91 a year ago. A total of 66 new systems were installed, with 20 older systems traded in. Of those 86 systems, 70 were the new da Vinci Si model. The company said 23 older systems were upgraded.