Intuitive sees earnings fall even as da Vinci sales rise

Intuitive Surgical, a surgical robotics company, reported a 21% decrease in earnings in the third quarter, despite broader adoption of its flagship da Vinci system worldwide.

The company reported Tuesday that its third-quarter earnings were $124 million, down from $157 million in the same quarter the prior year. Those results come after Intuitive issued a voluntary stop-use notice for a surgical stapler following reports of malfunctions last month. Also, a transition to direct sales in Japan has meant additional costs, according to the company.

Third-quarter revenue rose 10% to $550 million from $499 million during the same period last year. Intuitive said procedures using its da Vinci system increased by nearly 10% worldwide, with strong numbers in general surgery, oncology, rectal resection and hernia repair.

It placed 111 da Vinci Systems in hospitals this quarter, up nearly 10% from 101 in the same period last year, it said. Sales of its new da Vinci Xi system—launched in the second quarter—rose 18% from 50 in the second quarter to 59 units in the third quarter.

The stop-use notice comes after regulators have expressed concerns with an increase in incident reports associated with the da Vinci system. Some have questioned the device’s efficacy, and the company has faced several lawsuits.

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