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What: Shares of medical device maker MAKO Surgical
So what: MAKO shares plummeted 40% in early July after management slashed its full-year sales outlook, but today's small second-quarter beat -- EPS loss of $0.20 versus the consensus loss of $0.22 -- is taking a bit of the sting out of that crushing blow. Unfortunately, MAKO's inventory of unsold equipment totaled $28.9 million in the quarter, up from $23.2 million in the previous quarter, suggesting that management is still struggling to find takers for its technology.
Now what: For the full-year 2012, management expects to sell 42 to 48 RIO systems and 11,000 to 12,000 MAKOplasty procedures, which is unchanged from its prior view in July. "We have experienced slower than expected growth in 2012," said President and CEO Dr. Maurice Ferre. "While our core belief in the significant market opportunity and the transformational value of our technology remains intact, management's near term focus will be to improve our sales and marketing execution for the remainder of 2012 and beyond." When you couple just how battered MAKO shares are with the strong demographic trends working in the company's favor, buying into that turnaround talk might not be a bad long-term idea.
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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of MAKO. Motley Fool newsletter services have recommended buying shares of MAKO. Try any of our Foolish newsletter services free for 30 days.