ISRG » Topics » Concentrations of Credit Risk and Other Risks and Uncertainties

These excerpts taken from the ISRG 10-K filed Feb 6, 2009.

Concentrations of Credit Risk and Other Risks and Uncertainties

The carrying amounts for financial instruments consisting of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value due to their short maturities. Marketable securities are stated at their estimated fair values, based on quoted market prices for the same or similar instruments. The counterparties to the agreements relating to the Company’s investment securities consist of various major corporations, financial institutions, municipalities and government agencies of high credit standing.

The Company’s accounts receivable are derived from net revenue to customers and distributors located in the United States and other countries. The Company performs credit evaluations of its customers’ financial condition and, generally, requires no collateral from its customers. The Company provides reserves for potential credit losses but has not experienced significant losses to date. As of December 31, 2008, 68% and 32%, respectively, of accounts receivable were from customers located in the United States and other countries. As of December 31, 2007, 69% and 31%, respectively, of accounts receivable were from customers located in the United States and other countries. No single customer represented more than 10% of net accounts receivable as of December 31, 2008 and 2007.

During each of the years ended December 31, 2008 and 2007, domestic and international revenue accounted for 78% and 22%, respectively, of total revenue. During the year ended December 31, 2006, domestic and

 

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international revenue accounted for 83% and 17%, respectively, of total revenue. No single customer represented more than 10% of total revenue for the years ended December 31, 2008, 2007 and 2006.

The Company’s da Vinci Surgical Systems and related instruments and accessories accounted for substantially all of the Company’s product revenue during the years ended December 31, 2008, 2007 and 2006.

Concentrations of Credit Risk and Other Risks and Uncertainties

The carrying amounts for financial instruments consisting of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value due to their short maturities. Marketable securities are stated at their estimated fair values, based on quoted market prices for the same or similar instruments. The counterparties to the agreements relating to the Company’s investment securities consist of various major corporations, financial institutions, municipalities and government agencies of high credit standing.

The Company’s accounts receivable are derived from net revenue to customers and distributors located in the United States and other countries. The Company performs credit evaluations of its customers’ financial condition and, generally, requires no collateral from its customers. The Company provides reserves for potential credit losses but has not experienced significant losses to date. As of December 31, 2008, 68% and 32%, respectively, of accounts receivable were from customers located in the United States and other countries. As of December 31, 2007, 69% and 31%, respectively, of accounts receivable were from customers located in the United States and other countries. No single customer represented more than 10% of net accounts receivable as of December 31, 2008 and 2007.

During each of the years ended December 31, 2008 and 2007, domestic and international revenue accounted for 78% and 22%, respectively, of total revenue. During the year ended December 31, 2006, domestic and

 

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international revenue accounted for 83% and 17%, respectively, of total revenue. No single customer represented more than 10% of total revenue for the years ended December 31, 2008, 2007 and 2006.

The Company’s da Vinci Surgical Systems and related instruments and accessories accounted for substantially all of the Company’s product revenue during the years ended December 31, 2008, 2007 and 2006.

These excerpts taken from the ISRG 10-K filed Feb 14, 2008.

Concentrations of Credit Risk and Other Risks and Uncertainties

The carrying amounts for financial instruments consisting of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value due to their short maturities. Marketable securities are stated at their estimated fair values, based on quoted market prices for the same or similar instruments. The counterparties to the agreements relating to the Company’s investment securities consist of various major corporations, financial institutions, municipalities and government agencies of high credit standing.

The Company’s accounts receivable are derived from net revenue to customers and distributors located in the United States and other countries. The Company performs credit evaluations of its customers’ financial condition and, generally, requires no collateral from its customers. The Company provides reserves for potential credit losses but has not experienced significant losses to date. As of December 31, 2007, 69% and 31%, respectively, of accounts receivable were from customers located in the United States and other countries. As of December 31, 2006, 78% and 22%, respectively, of accounts receivable were from customers located in the United States and other countries. For the year ended December 31, 2007, domestic and international revenue accounted for 78% and 22%, respectively, of total revenue. For each of the years ended December 31, 2006 and 2005, domestic and international revenue accounted for 83% and 17%, respectively, of total revenue. No single

 

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Index to Financial Statements

customer represented more than 10% of total revenue for the years ended December 31, 2007, 2006 and 2005. No single customer represented more than 10% of net accounts receivable as of December 31, 2007 and 2006.

The Company’s da Vinci Surgical Systems and related instruments and accessories accounted for substantially all of the Company’s product revenue for the years ended December 31, 2007, 2006 and 2005. Purchases of key parts and components used to manufacture the Company’s products are from limited supply sources. The inability of any of these suppliers to fulfill the Company’s supply requirements may negatively impact future operating results.

Concentrations of Credit Risk and Other Risks and Uncertainties

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%">The carrying amounts for financial instruments consisting of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities
approximate fair value due to their short maturities. Marketable securities are stated at their estimated fair values, based on quoted market prices for the same or similar instruments. The counterparties to the agreements relating to the
Company’s investment securities consist of various major corporations, financial institutions, municipalities and government agencies of high credit standing.

FACE="Times New Roman" SIZE="2">The Company’s accounts receivable are derived from net revenue to customers and distributors located in the United States and other countries. The Company performs credit evaluations of its customers’
financial condition and, generally, requires no collateral from its customers. The Company provides reserves for potential credit losses but has not experienced significant losses to date. As of December 31, 2007, 69% and 31%, respectively, of
accounts receivable were from customers located in the United States and other countries. As of December 31, 2006, 78% and 22%, respectively, of accounts receivable were from customers located in the United States and other countries. For the
year ended December 31, 2007, domestic and international revenue accounted for 78% and 22%, respectively, of total revenue. For each of the years ended December 31, 2006 and 2005, domestic and international revenue accounted for 83% and
17%, respectively, of total revenue. No single

 


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Index to Financial Statements



customer represented more than 10% of total revenue for the years ended December 31, 2007, 2006 and 2005. No single customer represented more than 10%
of net accounts receivable as of December 31, 2007 and 2006.

The Company’s da Vinci Surgical Systems and related
instruments and accessories accounted for substantially all of the Company’s product revenue for the years ended December 31, 2007, 2006 and 2005. Purchases of key parts and components used to manufacture the Company’s products are
from limited supply sources. The inability of any of these suppliers to fulfill the Company’s supply requirements may negatively impact future operating results.

FACE="Times New Roman" SIZE="2">Cash and Cash Equivalents

The Company considers all highly liquid investments with an
original maturity from date of purchase of 90 days or less to be cash equivalents.

This excerpt taken from the ISRG 10-K filed Feb 15, 2007.

Concentrations of Credit Risk and Other Risks and Uncertainties

The carrying amounts for financial instruments consisting of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value due to their short maturities. Marketable securities are stated at their estimated fair values, based on quoted market prices for the same or similar instruments. The counterparties to the agreements relating to the Company’s investment securities consist of various major corporations and financial institutions of high credit standing. The Company believes the financial risks associated with these financial instruments are minimal.

The Company’s accounts receivable are derived from net revenue to customers and distributors located in the United States and other countries. The Company performs credit evaluations of its customers’ financial condition and, generally, requires no collateral from its customers. The Company provides reserves for potential credit losses but has not experienced significant losses to date. As of December 31, 2006, 78% and 22%, respectively, of accounts receivable were from customers located in the United States and other countries. As of December 31, 2005, 80% and 20%, respectively, of accounts receivable were from customers located in the United States and other countries. For the year ended December 31, 2006 and 2005, domestic and international revenue accounted for 83% and 17%, respectively, of total revenue. For the year ended December 31, 2004, domestic and international revenue accounted for 79% and 21%, respectively, of total revenue. No single customer represented more than 10% of total revenue for the years ended December 31, 2006, 2005 and 2004. No single customer represented more than 10% of net accounts receivable as of December 31, 2006. There was one customer who accounted for approximately 12% of net accounts receivable as of December 31, 2005.

 

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The Company’s da Vinci Surgical System, AESOP Endoscope Positioner and related instruments and accessories accounted for substantially all of the Company’s product revenue for the years ended December 31, 2006, 2005 and 2004. Purchases of key parts and components used to manufacture the Company’s products are from limited supply sources. The inability of any of these suppliers to fulfill the Company’s supply requirements may negatively impact future operating results.

This excerpt taken from the ISRG 10-K filed Mar 15, 2006.

Concentrations of Credit Risk and Other Risks and Uncertainties

 

For financial instruments consisting of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities included in the Company’s financial statements, the carrying amounts approximate fair value due to their short maturities. Estimated fair values for marketable securities, which are separately disclosed elsewhere, are based on quoted market prices for the same or similar instruments. The counterparties to the agreements relating to the Company’s investment securities consist of various major corporations and financial institutions of high credit standing. The Company believes the financial risks associated with these financial instruments are minimal.

 

The Company’s accounts receivable are derived from net sales to customers and distributors located in the United States and other countries. The Company performs credit evaluations of its customers’ financial condition and, generally, requires no collateral from its customers. The Company provides reserves for potential credit losses but has not experienced significant losses to date. As of December 31, 2005, 80% and 20%, respectively, of accounts receivable were from the United States and other countries. As of December 31, 2004, 82% and 18%, respectively, of accounts receivable were from the United States and other countries. For the year ended December 31, 2005, the United States and international sales accounted for 83% and 17%, respectively, of total sales. For the year ended December 31, 2004, the United States and international sales accounted for 79% and 21%, respectively, of total sales. For the year ended December 31, 2003, the United States and international sales accounted for 76% and 24%, respectively, of total sales. No single customer represented more than 10% of total sales for the years ended December 31, 2005, 2004 and 2003. There was one customer who accounted for approximately 12% of net accounts receivable as of December 31, 2005. No single customer represented more than 10% of net accounts receivable as of December 31, 2004.

 

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The Company’s da Vinci Surgical System, HERMES Control Center, AESOP Endoscope Positioner and related instruments and accessories accounted for substantially all of the Company’s product sales for the years ended December 31, 2005, 2004 and 2003. Purchases of key parts and components used to manufacture the Company’s products are from limited supply sources. The inability of any of these suppliers to fulfill the Company’s supply requirements may negatively impact future operating results.

 

"Concentrations of Credit Risk and Other Risks and Uncertainties" elsewhere:

Medtronic (MDT)
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