Reuters: Global Markets: Mako shares plunge on weak results, outlook

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Mako shares plunge on weak results, outlook May 8th 2012, 13:35 Tue May 8, 2012 9:35am EDT (Reuters) - Mako Surgical Corp (MAKO.O) lost a third of its market value on Tuesday after the orthopedic device maker posted disappointing quarterly results and lowered its sales forecast for a key product. Mako now expects to sell 52 to 58 RIO systems -- a robotic-arm interactive system used for minimally invasive knee procedures -- during the full year. It had previously forecast sales of 56 to 62 RIO systems. "While management reduced its guidance by a small amount, we are concerned that it remains too high and see a risk of further misses and/or guidance reductions," Mizuho Securities analyst Michael Matson wrote, downgrading the stock to "neutral" from "buy". Echoing Matson's view, William Blair & Co analyst Matthew O'Brien said the revised outlook range requires a strong performance from Mako during the remainder of the year, which may prove challenging as the sales cycle appears to be showing only modest improvement. Matson downgraded Mako shares to "market perform" from "outperform". Mako shares, which have gained 44 percent since the company gave an upbeat outlook for 2012 in January, fell 33 percent to $27.89 on Tuesday on the Nasdaq. (Reporting by Anand Basu in Bangalore, Editing by Sreejiraj Eluvangal) Link this Share this Digg this Email Reprints

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