Friday, February 02, 2007

Intuitive Surgical Posts Profit Surge

Intuitive Surgical (ISRG) stock was up 17 percent today on the announcement of a 56 percent increase in their forth quarter revenues.

The increase was due to continuing increase in sales of the DaVinci surgery robots but also substantial increases in recurring supplies and services. This is a good indication that the robots are being used successfully.

For 2006 their revenues were:
Systems sales: $206 million
Instruments/accessories: $112 million
Service/Training: $ 55 million

Total: $373 million

This, to me, seems like a fairly small number considering the size of the surgery industry. They will have competitors moving in on them but their early entry has given them an advantage. They are in a position where they can define the standards for the next decade and sell the service and instruments for the machines that they have installed.

Robot assisted surgery is creating new capabilities for minimally invasive surgery techniques and opening the door for totally new procedures. It may also allow a lower skill level to be required for some operations that had been considered extremely risky.

There will be some bumps in the road, but this technology will eventually completely transform the medical field.

Related:
Surgery On A Beating Heart May Be Safer
Surgical Robot in patent dispute
Surgical Robot Revenues Rocket 2005
Robot Surgery Legal Questions


Intuitive Surgical - Press Release

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