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To: bob zagorin who wrote (43554)	7/22/2008 5:57:53 PM
From: Bill Harmond	Respond to of 57684

17:36 ISRG Intuitive Surgical Q2 Earnings Call Summary (280.23 -4.48) -Update- During the call, the co says that it sees 2008 total revs growth of 45-47% compared to previous guidance of 42%; Guidance equates to $871.2-883.2 mln vs. $873.5 mln consensus. Co said that it sold 85 da Vinci systems vs. 80 consensus (according to Lazard). Co said that it is seeing higher growth rates across a number of different procedures, and expects total procedures to grow 57 to 58% this year, up from previous forecast of 55% growth. dVH continues to be one of its fastest growing procedures, and continues to expect this procedure to grow at least 150% this year. dVP has continued to grow strong, but has been growing less than ISRG's previous forecast of 40%. Co now expects dVP procedures to grow between 35 and 39% this year. ISRG's newer emerging procedures are growing much faster than previously expected. System revenues in Q2 were also stronger than previously expected, driven primarily by our overall procedure growth. Co is now forecasting system revenue to grow 38 to 40% over 2007, which is up from co's previous forecast of 33 to 35% growth. ASP was approximately 1.35 million in Q2, compared with 1.32 million in Q1. Co continues to expect our average ASP to be approximately 1.33 million for the remainder of the year. Co thinks machine trade-ins will vary; 6 for this Q is a high water mark; depends on customer; part of long-term plan that co will have more trade-ins. ISRG expects gross margin to be approximately 70% for the remainder of the year. Q3 results are typically impacted by seasonally lower revenues. Co sees systems placements relatively flat for Q3 compared to Q2, higher in Q4. Co says it is still trying to get approval in Japan; no new update there.