INTUITIVE SURGICAL (Nasdaq symbol ISRG; www.intuitivesurgical.com) makes the da Vinci, a computerized surgical system a computerized surgical system for use in prostate surgery and other procedures.

Guided by a miniature camera connected to a 3-D monitor, surgeons use the da Vinci to operate by remotely manipulating tiny robotic arms. This process is safer and much less invasive than regular surgery and helps cut a patient’s recovery time and post-operative discomfort. It also reduces scarring and infection risk.

In the three months ended December 31, 2012, Intuitive earned $174.9 million, or $4.37 a share. That’s up 15.7% from $151.2 million, or $3.86 a share, a year earlier. Revenue rose 22.6%, to $609.3 million from $496.8 million. Intuitive is debt-free and holds cash of $2.9 billion, or $72.86 a share.

Revenue from replenishable supplies rose 29.0%. Intuitive gets over 40% of its revenue from stable and dependable sales of replacement parts, training and other services. That cuts its risk.

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Stock advice: New product lets da Vinci system work through single incision instead of three

Intuitive continues to expand steadily overseas, particularly in Europe, South Korea and Japan. On April 1, 2012, the company received government reimbursement approval for prostatectomy procedures in Japan, a key step forward. Intuitive is expecting slower growth in Europe this year, however.

The company is also gaining from new products, such as Single Site, a set of instruments and accessories that let da Vinci systems work through a single incision rather than the usual three incisions.

In a recent Stock Pickers Digest Hotline, we updated our advice on Intuitive Surgical. Intuitive fell to as low as $494 a share from $570 on February 28. However, it has since regained a lot of the drop.

The shares fell on a report that the U.S. Food and Drug Administration (FDA) has sent surveys to surgeons at several hospitals asking them to detail the complications they may have seen with surgeries performed with the da Vinci. As well, the FDA asked the surgeons which surgeries they think the system might be best and least suited for, and also to describe their training.

The inquiry is in part in response to several incident reports sent to the FDA from patients. These include some outlining serious complications with several gynecological surgeries.

Intuitive’s successful marketing efforts continue to create demand for robotic surgery from patients looking for less invasive procedures, faster recovery times and less post-operative discomfort.

However, the company may need to introduce more training in response to the FDA inquiries, and it could delay some new sales to hospitals. We concluded the Hotline update with our buy-hold-sell advice on the stock.

COMMENTS PLEASE—Share your investment knowledge and opinions with fellow TSINetwork.ca members

When you look at a stock that has patented a revolutionary process, like Intuitive Surgical, do you feel that it has unlimited growth prospects? Or do you feel that competition and technological advances could catch up to it—as could be the case with Intuitive Surgical and competitors offering less expensive robotic systems? Let us know what you think.