Medical devices maker
MAKO Surgical Corporation
) has announced selected operating results for the second quarter
ending June 30, 2012. The company gave a descriptive account of the
performance of its Robotic Arm Interactive Orthopedic (RIO) Systems
and related MAKOplasty applications for the quarter.
MAKO sold nine RIO Systems in the reported quarter, versus
twelve systems in the year-ago period. Of these nine systems, eight
were sold in the U.S. while one was sold for commercial purposes to
a well-regarded hospital in Hong Kong through a Chinese
Consequently, the company's commercial installed base for its
RIO Systems came in at 123 for the domestic market, whereas the
worldwide commercial installed base increased to 126 systems. Even
as sales volume improved sequentially, the average selling price of
RIO Systems was in line with the last quarter.
The number of MAKOplasty procedures increased 66.3% year over
year to 2,590 in the second quarter. Of the 2,590 procedures, 2,494
MAKOplasty procedures were performed in the U.S. The average
selling price for the procedures was comparable with the
sequentially prior quarter. The monthly utilization rate for each
system was 7.2 procedures versus 6.4 procedures in the prior-year
The company sold nine MAKOplasty Total Hip Anthroplasty (THA)
applications, of which, seven were sold with the domestic RIO
Systems sales and the remaining two were sold as upgrades to
existing commercial systems. Of the 2,494 MAKOplasty procedures
performed in the domestic market, 280 were THA procedures.
Based on its performance in the first half of 2012, MAKO now
expects to sell 42 to 48 RIO Systems in 2012, down from its earlier
view of 52 to 58 systems. The company has also narrowed its annual
guidance for MAKOplasty procedures to a band of 11,000 and 12,000
(earlier 11,000 to 13,000) on the basis of its revised outlook for
RIO System sales.
MAKO develops and manufactures advanced robotic arm systems and
MAKOplasty applications. It competes with
). MAKO is currently entangled in class action lawsuits which claim
that it had misled investors who purchased shares between January 9
and May 7, 2012, by not disclosing the detrimental sales and
utilization rates for its RIO Systems and MAKOplasty applications
during this period.
The company's growth strategy focuses on increasing sales of RIO
Systems and MAKOplasty applications. Given the current orthopedic
market scenario, there is considerable growth opportunity for MAKO,
driven by demographic trends and an unsaturated domestic market.
With slower-than-expected growth in the first half of 2012 and
ongoing lawsuits, management's near-term objective is to improve on
MAKO currently retains a Zacks #4 Rank, which translates into a
short-term Sell rating.
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