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Novadaq Technologies Inc. Message Board

  • e11ndofwar e11ndofwar Nov 27, 2013 9:19 AM Flag

    Some clarification please

    Have to admit I'm stumped on kit utilization. It has been indicated that kit utilization has been running at 100 per quarter and is now running 100 to 150 per quarter. Is that correct? Does one kit represent one surgery? If so, given that the number of hospitals with a machine now exceeds 1000, surgeries involving our machines is running at one per 100 hospitals per quarter. Is this right? Any insight into this issue would be greatly appreciated.
    regards endo

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    • No - the 100-150 per quarter is their running placement number for equipment (including Firefly, Pinpoint and Luna). They haven't been disclosing kit sale numbers, although on the latest conference call they mentioned they did ~5,900 kits in the most recent quarter. The revenue per kit number is difficult to nail down, because there are different price points for the different indications and whether the kit is being used on a leased vs owned machine. They did mention on the latest earnings call that hospitals are moving more and more toward purchasing the machines, which reduces the cost of the kits - the "lease" structure is set up as a payment per use built into the kit price.

    • andersongordon Nov 27, 2013 10:38 AM Flag

      Endo, there have been very confusing and often lack of clarity on Kit sales. These are my estimates for Q3
      Life Cell (4288), Intuitive (1417), Luna (75), Pinpoint (145), Total Kits used shipped ~(5925). There is obfuscation caused by the failure to give breakout of kits by user and also there are kits used in operations vs kits shipped (stocking). I currently have 5.4 kits per device per quarter usage. That number has been coming down but I think it is at the minimum. There was a shift from equipment rentals to purchases as hospital begin to use the machines in more operations and the economics of less per kit and capital investment in machines shifts from rentals and ~$1000 per kit purchase.

      These are my current estimates. The revenue per kit average is now ~$650@.


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