Question-and-Answer Session
Operator
(Operator Instructions)
Our first question is coming from Eugene Teel, a Private Investor. Please state your question.
Eugene Teel – Private Investor
Congratulations on amazing results. I am a former McKinsey consultant and a former CFO of a medical robotic company. I find your results as to be extraordinary. The question is how significant is Intuitive Surgical going to be to your future success.
Roberta Lipson
Thank you, Mr. Teel. We are really excited about the potential for Intuitive in China. Most of our sales so far have been in Hong Kong because there was not a need for a separate product registration in that jurisdiction, but as I mentioned on the call, we have been waiting for the final registration and approval here in China and we only have one unit installed within the Mainland at the 301 Hospital, which is the unit that has been designated for investigation purposes for the state’s Food and Drug Administration approval process.
We have seen amazing productivity out of that unit and as you know, the Intuitive Surgical also has a trailing considerable income stream, so if that is anything, any sign of things to come with future customers, I think it is going to be very rewarding. We have been working on increasing the product awareness in the market here and of course our super user who has already been using the robot in Beijing for the last six months has done lots of academic presentations, so we know that there is a substantial pipeline there. We expect it to be a real important product, but that having been said, we do not like to base our results. We try hard to spread it over the portfolio of products and it will certainly be important to us, but it will be one among many great products and product lines.
Operator
Our next question is coming from Hamed Khorsand with BWS Financial.
Hamed Khorsand - BWS Financial
Great quarter! My question is regarding the ordering trends during the quarter. You said that most of it occurred in the period where your accounts receivables went up. Was there a specific event that caused that, is there a change in the ordering sequence from your customers?
Larry Pemble
No, we did not. Actually, I mean this quite regularly. We see it is particularly in the Capital Equipment and in the Medical Products Division obviously where we see significant fluctuation in the emerging inventory in AR and AP from period to period. Obviously, this was the calendar yearend. There was a great deal of pressure to have our revenue cycle completed by yearend and in the event of the holidays and all that kind of things, so it is quite normal for us to have in the sales environment like that to have an accumulation of orders at the end of the period and the resulting overflow if you will into inventory that then gets subsequently shipped in the following quarter and as well as an increase in AR and AP.
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