“Customers, particularly in the U.S. and Europe, continue to be challenged by staffing, inflation, debt servicing costs and other financial pressures. And as a result, we expect customers to continue to be cautious in their overall capital spending.”

In context

“sociated with trade-in transactions. Outside the U.S., we placed 171 systems in Q1 compared with 125 systems last year. Current quarter system placements included 101 into Europe, 16 into Japan and 18 into China compared with 78 into Europe, 19 into Japan and 9 into China in Q1 of last year. First quarter system placement performance in Europe included 32 placements in the U.K. driven by timing of the NHS budget period, which closes each year at the end of March. We placed 12 systems in India, a quarterly high for us, which, in part, stems from our recent procedure growth there. In Q1, procedures in India grew 55%, albeit from a relatively small base. Reviewing the capital performance in the quarter, we do not expect the strength in U.K. and India to repeat in the remainder of the year. Customers, particularly in the U.S. and Europe, continue to be challenged by staffing, inflation, debt servicing costs and other financial pressures. And as a result, we expect customers to continue to be cautious in their overall capital spending. Leasing represented 42% of Q1 placements compared with 42% last quarter and 35% last year. We are increasingly seeing customers address system access and capital budget barriers by choosing our usage-based leasing models. The proportion of placements under this structure continue to increase, particularly in the U.S. As a result of this trend and the earlier stage of our leasing program with OUS customers, we continue to expect that the proportion of placements under operating leases will increase over time. Q1 system average selling prices were $1.47 million as compared to $1.43 million last quarter. The sequential increase in system ASPs was primarily driven by a lower mix of trade-ins. We recognized $24 million of lease buyout revenue in the first quarter compared with $17 million”