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Intuitive Surgical, Inc. Q4 2007 Earnings Call Transcript

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2008-01-31 17:31:03.0

Tags: Intuitive Surgical Inc.

Question-and-Answer Session

Thank you. [Operator Instructions]. Our first question comes from Tao Levy with Deutsche Bank.

Tao Levy - Deutsche Bank

Good afternoon everyone.

Lonnie M. Smith - Chairman and Chief Executive Officer

Hi Tao.

Tao Levy - Deutsche Bank

Hi and congratulations on a very strong quarter and year. There are a couple of questions on my end. In terms of gynecology, given the strength and given Aleks, all the comments that you've made regarding the clinical benefits, is there any way that your guys are now comfortable sort of comparing it to the progress that we saw in the past with urology?

Lonnie M. Smith - Chairman and Chief Executive Officer

You know Tao I think, the place we comfortable comparing it, it really is not in the metrics as much as it is in the patient value. We are continuing to see more and more patients that are again looking for facilities that are performing these operations, we continue to see physicians and professional societies, they are making it a bigger part of their agendas at their meetings, it becomes difficult to compare when you look at the number of systems we had installed at the time versus the number of systems we have today and the general acceptance of robotic surgery today. So I don't think we are ready to tell you, it's going to look -- the growth curve is going to resemble dVP. Ironically, it is fairly similar today, in fact dVH is probably a little bit bigger, but I don't think we can say that going forward -- and faster I should say, and bigger in overall procedures.

Tao Levy - Deutsche Bank

Okay. And also on the manufacturing side, with this -- you're doing in Mexico, the gross margins guidance that you're giving, should we expect that to hit initially, is it also the more of a S systems, is it the euro, any better sense there?

Benjamin B. Gong - Vice President, Finance and Treasurer

Yeah Tao, this is Ben. We incorporated all of those factors and coming up with our estimate of 69 to 70% gross margin for the year. There's some start-up cost with the Mexico operation, however, we're containing to bring down some cost just in our normal manufacturing efficiencies and that's going to sort of balance that out the -- and as we said in the past, we really don't try to forecast what's going to happen with exchange rates.

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