“We expect the impact of this decision to be an increase in revenue and operating profit of approximately $100 million in 2023.”

In context

“ts and, relative to the year-ago period, a stronger U.S. dollar. Gross margin for our Ion platform is currently considerably below our da Vinci business, resulting in an adverse mix impact to gross margin given the higher growth rates of our Ion business. The key area of focus for our Ion and manufacturing teams over the next 18 months is to improve supply stresses, strengthen manufacturing capabilities and lower our product costs. I&A prices have remained the same for the life of Xi. However, given the durability of component cost increases throughout the pandemic, we are executing an increase to the list price of da Vinci I&A from approximately 5% over the next couple of months. This increase reflects only a portion of the increased component labor costs reflected in our gross margin. We expect the impact of this decision to be an increase in revenue and operating profit of approximately $100 million in 2023. First quarter pro forma operating expenses increased 20% year-over-year driven primarily by increased head count added throughout last year, higher variable compensation, higher travel costs and increased expenses associated with customer training. Operating expenses were moderately above our expectations due to higher variable compensation and training costs related to our procedure performance in the quarter. On a sequential basis, operating expenses were up 1%, including the annual reset of certain payroll taxes. Head count increased by approximately 330 in Q1, of which roughly half are in support of revenue growth. Capital expenditures in Q1 were $197 million, primarily comprised of infrastructure investments to expand our facilities footprint and increase manufacturing capacity,”