Shares of Mako Surgical (NSDQ:MAKO) are down nearly 36% today, their lowest mark in 4 months, after the robotic surgery company missed its own 1st-quarter guidance.
The Ft. Lauderdale-based company reported losses of $11.7 million, or 28¢ per share, on sales of $19.6 million for the 3 months ended March 31, representing top-line growth of 50.8% but a bottom-line slide of 6.7%
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Wall Street analysts were looking for losses of 19¢ per share. That, lowered sales guidance and lower-than-expected sales of its Rio hip replacement system drove shares down 35.9% to $26.56 as of about 1:45 p.m. today. Mako said it sold 5 Rio systems during the quarter, 4 shy of analysts’ expectations.
"While the 1st quarter is typically our slowest quarter of the year and system placements are very difficult to predict on a quarterly basis, our results this quarter were at the low end of our expectations," president & CEO Dr. Maurice Ferré said in prepared remarks. "On the positive side, we were encouraged by the continued interest shown in our hip application and the quality and quantity of clinical data that continues to be generated that supports the clinical and economic benefit of MAKOplasty. Additionally, we are pleased to have enhanced our working capital flexibility through a credit facility arrangement with Deerfield, an acknowledged leader in health care investing."
Mako said it now expects to sell between 52 and 58 Rio systems this year, down from prior guidance of 56-62 systems.
The Rio device helps surgeons more accurately align and position implants based on a pre-operation three-dimensional model of the patient’s hip. The robotic arm also assists the surgeon in preparing the joint and placing the hip implant.
The device was cleared for use in February 2010 and has been available for surgical treatment of osteoarthritis of the knee for 5 years.
