ISRG purchases Firefly equipment and consumables in anticipation of sales as part of new Green site systems or follow on multiple purched systems. NVDQ's sales to ISRG trend pretty close to ISRG stated sales, but recently have been higher than the number ISRG states. NVDQ gets the lion share of their revenue when shipped to ISRG (~80% estimate) and a follow on revenue when the unit is sold to a hospital. I had a forecaste of 72 units sold to ISRG in Q2 2013 so the 76 number is better than I expected. If they really shipped a few more than the stated ISRG sales to hospitals than it could be ~80 which would be 11% higher than my forecast. Bottom line---this is a good indicator of NVDQ technology being adopted by hospitals.
The majority of Firefly systems sold are sold with new daVinci system placements rather than upgrades sold to existing daVinci users. Huge news was that ISRG is now selling Firefly with 80% of new systems, up from 55%-60% in prior qtrs. This large and growing installed base will no doubt adopt new indications as they are approved driving consumables revenue well into the future. The growing body of evidence on cost savings with firefly would suggest that a significant percent of robotic procedures will eventually be firefly procedures