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CLAIM #32978 · Intuitive Surgical Inc (ISRG) · 2022Q1 earnings call · Apr 21, 2022 · due Jun 30, 2022

I think that there's risk in procedures in Q2 relative to what you would expect without COVID and those lockdowns.

Jamie Samath · CFO

CANNOT_DETERMINE
versus commitment · official band 5 percent
Committed
I think that there's risk in procedures in Q2 relative to what you would expect without COVID and those lockdowns.
Reported
Procedures in the quarter grew 14% over last year despite pressure from COVID-driven lockdowns in China, our second largest market.

In context

on China for me and one on inflation and supply constraint. So on China what have you guys seen so far from the lockdowns? And what are your expectations for the second quarter? Do you think you can still grow year-over-year in China? And related to that Gary what's the process and time line for the next quota? You're about to finish this quota. Is it possible the next quota could be larger or eliminated entirely? And I have one follow-up. Gary Guthart: I'll turn those both to Jamie. Jamie Samath: Yes. With respect to what we saw with -- in procedures in Q1 as you saw the COVID cases rises in places like Shanghai. And as the authorities locked down and they locked down pretty strictly, we saw procedures impacted in March. That's continued so far into April although it's obviously early. I think that there's risk in procedures in Q2 relative to what you would expect without COVID and those lockdowns. China is our second-biggest marketplace, but it's still a relatively small proportion of overall procedures. US is still about 70% of global procedures. But certainly the way things look right now you have some impact in Q2. What that ends up being really depends on how long the lockdowns last and how long COVID persists in China. I think a separate risk is kind of the impact of logistics and supply chains as we deliver product to China and from a more macro perspective just the port closures and the broader impact that we could see in China given the degree of exports they have just generally across the economy. With respect to the China quota difficult to predict. The last couple of times the quota has been issued in the third year of the quota period, which would be next year. We don't

Verify independently

SEC filings for ISRG · Claim quote is verbatim from the 2022Q1 earnings call.