By Joseph Walker and Tess Stynes
Intuitive Surgical Inc. declined to estimate its expectations
for sales in 2014, citing "limited visibility" into how the federal
health-care overhaul will affect its business this year.
The decision to not issue sales guidance followed on what Chief
Executive Gary Guthart called a "challenging year" in 2013, during
which sales of the company's hallmark da Vinci surgical robots
declined for the first time and the company's share price fell by
22%.
The Sunnyvale, Calif., company said it expected the number of
procedures performed with its robots to grow 9% to 12% this year,
compared with a 16% increase in 2013. The company said it expects
it will sell fewer of the da Vinci robots in 2014 than last
year.
Shares of Intuitive Surgical fell 4.4% to $419.33 in after-hours
Nasdaq trading on Thursday.
Intuitive's formal presentation of its fourth-quarter results
Thursday followed its initial disclosure of the results last week
at the JP Morgan Healthcare Conference. In the fourth quarter of
2013, earnings fell 5% on lower sales of the company's da Vinci
robotic surgical systems. Intuitive Surgical reported a net profit
of $166.2 million, or $4.28 a share, compared with $174.9 million,
or $4.25 a share, a year earlier. Analysts polled by Thomson
Reuters expected per-share profit of $3.83.
Revenue in the fourth quarter decreased 5.4% to $576.2 million,
matching the company's recent estimates. Sales of the da Vinci
systems fell 23% to $204.6 million as the number of systems sold
dropped to 138 from 175 a year earlier.
The company has continued to face challenges from customer
concerns about the safety and cost effectiveness of its da Vinci
robots, in addition to slower growth in gynecology procedures and
lower hospital spending related to the U.S. health-care policy
overhaul.
"Trends that emerged in the second quarter of 2013 continued
through the balance of the year, including revenue uncertainties
for United States customers due to pressure on gynecologic surgery
broadly, the implementation of the Affordable Care Act, and
confusion surrounding the public debate regarding some da Vinci
procedures," Mr. Guthart said.
Sales of instruments and accessories increased 5.7% to $268.2
million, mostly owing to the 12% growth in procedures on machines
that da Vinci already has sold.
Write to Joseph Walker at joseph.walker@wsj.com and Tess Stynes
at tess.stynes@wsj.com
Order free Annual Report for Intuitive Surgical, Inc.
Visit http://djnweurope.ar.wilink.com/?ticker=US46120E6023 or
call +44 (0)208 391 6028
Order free Annual Report for The NASDAQ OMX Group, Inc.
Visit http://djnweurope.ar.wilink.com/?ticker=US6311031081 or
call +44 (0)208 391 6028
Subscribe to WSJ: http://online.wsj.com?mod=djnwires