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Intuitive Surgical Q2 2007 Earnings Call Transcript

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2007-07-19 18:25:01.0

Tags: Intuitive Surgical Inc.

Question-and-Answer Session

Operator

Thank you. At this time we will begin the question-and-answer portion of today's program. (Operator Instructions). Thank you. And our first question comes from Tao Levy or Levy I'm sorry go ahead with your question.

Tao Levy - Deutsche Bank

Close enough, it's Tao Levy. Hi guys.

Gary Guthart

Hi Tao.

Jerry McNamara

Hi Tao.

Tao Levy - Deutsche Bank

Congratulations, great numbers here. Just wanted to flush a couple of things out the very impressive system number. Anyway, you know, last quarter was a little bit different where versus our numbers, the system was a little bit softer yet utilization was really strong and then now you had a little bit of the reverse versus our numbers here in this quarter. Is that, like you've seen in years before where you have greater utilization drive system placement? Is that what we’ve seen this quarter versus the first quarter again?

Jerry McNamara

Hey Tao, this is Jerry. Yeah, I just wanted to point out as you have suspected, we have experienced that increase in utilization within our installed base across all areas of the world and it’s being led primarily by the increase in GYN procedures and DVP procedures and as hospitals reach capacity with their da Vinci Systems, in many cases they evaluate the need for additional systems and that launches second or third systems sales as Aleks mentioned. But overall what we have seen is an expansion of robotics surgery programs in hospitals and it’s taking place at a very consistent and solid rate, so we are pretty pleased with that.

Tao Levy - Deutsche Bank

Great and maybe, could you flush out the whole sort of, any way to flush out sort of the number of systems or the percentage of systems that were purchased due to sort of our interesting gynecology versus urology?

Jerry McNamara

That’s always a hard thing for us to do Tao, because as we’ve always said our focus is multiple specialty, and so to kind of draw a line to say this one was GYN or that one was urology is an imperfect science. What we can say is that since the approval of GYN, back in the May timeframe of 2005, we’ve seen a preponderance of second system placements and one can conclude that there is just not enough capacity in the hospitals that have multiple specialties seeking to use the system. So it continues to happen, but it would be hard for us to tell you exactly what percentage is due to this, but it's something we see continuing.

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