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Intuitive Surgical, Inc. Q1 2008 Earnings Call Transcript

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2008-04-17 18:25:09.0

Tags: Intuitive Surgical Inc.

Question-and-Answer Session

Thank you. At this time we will begin the question-and-answer session. [Operator Instructions] Our first question from Eli Kammerman with Cowen. Sir your line is open.

Eli Kammerman - Cowen and Company

Yes, thank you. Couple of questions here, first question I had is with the very small sequential decline in systems that you had for the quarter. What do you think this says for the pattern of seasonality that you expect to see this year? Are you expecting to see relatively level system sales through the year or do you think we will see the same kind of thing as we saw in 07 where the fourth quarter was significantly higher than the first?

Benjamin Gong - Vice President of Finance

This is Ben. Eli I think the seasonality is going to be similar as far as we know. It was sequentially down in Q1 this year as it has been in previous years. We will expect Q4 to be our highest quarter, but that said we think the total number is going to increase year-over-year by between 33% and 35%.

Eli Kammerman - Cowen and Company

Okay, and my next question is can you make some comment about the expected launch date for the new visualization technology that's going to integrate anatomical radiology images into the viewer.

Aleks Cukic - Vice President, Business Development and Strategic Planning

I'm not sure what you're referencing there.

Eli Kammerman - Cowen and Company

Okay, I thought I read that you are developing some type of integration function where you can put volumetric imagery into the view screen, so that a physician can see, for instance, MRI images at the same time that they are performing the surgery.

Unidentified Company Representative

That capability exists today in the S System... the S System part of the... the system allows you to bring other information sources into a picture within a picture on the screen, and so we... that is not... that capability was launched when we launched the S; the da Vinci S.

Eli Kammerman - Cowen and Company

Do you plan to upgrade that functionality to allow for image guided surgery where certain parts of the anatomy will be structured as off limits to dissection for safety purposes.

Unidentified Company Representative

No fly zone.

Gary Guthart - President and Chief Operating Officer

Yeah, so this is Gary, we have some research programs ongoing internally and with external partners exploring how those types of things can be done. I guess I would not characterize them as product development at this time. So there are some significant hurdles in base technology that will have to be overcome to make that kind of no fly zone repeatable in soft tissue areas as we go.

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