“While leasing will fluctuate from quarter-to-quarter, we continue to expect that the proportion of placements under operating leases will increase over time.”

In context

“of Q2 2022, there were 48 systems remaining under the current quarter in China, which is also available to competitors that have received local regulatory clearance. Globally, trade-in transactions represented 20% of placements in the quarter, compared to 38% for full year 2021 and 48% for full year 2020. As we have previously indicated, given the lower number of older generation systems in the field, we expect the volume of trade-ins to be significantly lower in 2022, as compared to last year. Leasing represented 42% of Q2 placements compared with 35% last quarter and 33% in the second quarter of 2021, the higher lease mix primarily reflected an increase in the proportion of O-U.S. customers that lease a system in the quarter versus purchased, driven in particular by customers in Europe. While leasing will fluctuate from quarter-to-quarter, we continue to expect that the proportion of placements under operating leases will increase over time. Second quarter system average selling prices were $1.50 million slightly lower than the $1.54 million last quarter, although system ASPs were roughly flat, lower trade-in volumes benefitted Q2 ASP, offset by an unfavorable impact from the stronger U.S. dollar and a higher mix of lower price Xi systems, primarily driven by customers in Europe. We recognized $22 million of lease buyout revenue in the second quarter compared with $16 million last quarter and $26 million last year. Lease buyout revenue has varied significantly quarter-to-quarter and will likely continue to do so. Instrument and accessory revenue per procedure was approximately $1,900 per procedure, compared with $1,870 last quarter and $1,940 in the second quarter of 2021. The year-over-year decrease primarily reflects the be”