Hot Off the Press: MAKO Surgical's Mixed Quarter

MAKO Surgical (Nasdaq: MAKO  ) , purveyor of a robot-assisted system used for performing both knee and hip surgical procedures, released third-quarter results shortly after the market closed. Revenue grew 46% to $29.2 million to beat analyst estimates of $27.5 million. Earnings per share came in a penny ahead of expectations.

The revenue upside was driven by systems sales. Fifteen placements led to systems-related revenue of $14.4 million, ahead of my personal expectations and an encouraging sign of progress on the sales front. On the flip side, procedural volumes grew by a somewhat disappointing 33% to 2,413, driving overall utilization down to 6.2 procedures per system.

Going forward, strong sales execution gave management the confidence to maintain full-year guidance of 42 to 48 systems. However, the company lowered expectations for full-year procedures to between 10,200 and 10,600 from between 11,000 and 12,000.

The earnings call just began, and I'm sure investors will be curious as to what caused the soft procedure numbers. We'll be covering the story in depth as more details unfold.

If you're interested in an in-depth look into MAKO Surgical, Fool.com analyst and MAKO expert David Meier has written a premium research report covering all of the must-know details on the company, including key areas to watch and risks looming in the future. As an added bonus, David will keep you informed with a full year of updates and guidance on MAKO Surgical as news breaks. Click here now to learn more and start reading. .


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  • Report this Comment On November 08, 2012, at 10:30 AM, SophicF00L wrote:

    The reason for the lower expectation for full year procedures is due to the impact of Sandy in the New York / New Jersey area. As they do have a concentration of RIO arm systems in that area and there was an immediate drop of procedures performed the week following Sandy. Since these appointments are made a month in advance it will take some time to reschedule once the hospitals are in the position to perform these procedures again.

    Another reason that was talked about during the conference call regarding the soft procedure numbers was the focus that the company has had on getting the upgrades out there for the RIO arms for the knee as well as the new hip procedures.

    Unfortunately I had to leave the conference early and couldn't finish the question and answer session. But I'm still a believer and will continue to gradually buy every month for the foreseeable future.

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