Core Viewpoint - AngioDynamics reported quarterly earnings of $0.03 per share, significantly beating the Zacks Consensus Estimate of a loss of $0.13 per share, marking an earnings surprise of 123.08% [1] Financial Performance - The company posted revenues of $72 million for the quarter ended February 2025, surpassing the Zacks Consensus Estimate by 2%, although this represents a decline from year-ago revenues of $75.18 million [2] - Over the last four quarters, AngioDynamics has exceeded consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - AngioDynamics shares have increased approximately 5.5% since the beginning of the year, contrasting with the S&P 500's decline of 4.2% [3] Future Outlook - The company's earnings outlook will be crucial for determining the sustainability of its stock price movement, with current consensus EPS estimates at -$0.09 for the coming quarter and -$0.37 for the current fiscal year [4][7] - The estimate revisions trend for AngioDynamics is currently mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Medical - Instruments industry, to which AngioDynamics belongs, is currently in the top 30% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Pro forma net sales for Q3 FY2025 were $72.0 million, representing a 9.2% increase year-over-year[3] - Adjusted EBITDA for Q3 FY2025 was $1.3 million, compared to a loss of $3.6 million in Q3 FY2024[13] - The company recorded a GAAP net loss of $4.4 million, or a loss per share of $(0.11) in Q3 FY2025[12] - For the three months ended February 28, 2025, Angiodynamics reported a net loss of $4,407,000 compared to a net loss of $187,736,000 for the same period in 2024[35] - Adjusted net income for the three months ended February 28, 2025, was $1,167,000, while for the same period in 2024, it was a loss of $6,279,000[35] - The net loss for the three months ended February 28, 2025, was $4,407 thousand, compared to a net loss of $187,736 thousand for the same period in 2024[32] - The net loss for the nine months ended February 28, 2025, was $27,943 thousand, compared to a net loss of $170,900 thousand for the same period in 2024[34] - The company reported a basic loss per share of $0.68 for the nine months ended February 28, 2025, compared to a loss per share of $4.26 for the same period in 2024[34] Sales and Revenue - Med Tech net sales reached $31.3 million, a 22.2% increase from $25.7 million in the prior-year period[8] - The company expects FY2025 net sales to be in the range of $285 to $288 million, reflecting growth of 5.3% to 6.4% over FY2024[21] - Med Tech net sales growth guidance for FY2025 has been increased to 14% to 16% from the previous 12% to 15%[21] - Net sales for the three months ended February 28, 2025, were $72,004,000, a decrease of 4.2% compared to $75,182,000 for the same period in 2024[48] - Med Tech segment reported net sales of $31,341,000, representing a growth of 21.3% from $25,844,000 in the prior year[48] - Med Device segment experienced a decline in net sales to $40,663,000, down 17.6% from $49,338,000 year-over-year[48] - For the nine months ended February 28, 2025, net sales were $212,340 thousand, a decrease of 8.9% from $232,934 thousand for the same period in 2024[34] - The Med Tech segment's nine-month net sales were $90,863,000, reflecting a growth of 17.9% compared to $77,068,000 in the previous year[52] Profitability and Margins - Gross margin for Q3 FY2025 was 54.0%, up 290 basis points compared to Q3 FY2024[11] - Gross profit margin improved to 54.0% for the three months ended February 28, 2025, compared to 47.7% for the same period in 2024[32] - Gross profit for the Med Tech segment was $19,588,000, with a gross profit margin of 62.5%, compared to $15,857,000 and 61.4% in the previous year[50] - Total gross profit for the three months ended February 28, 2025, was $38,857,000, an increase of 8.4% from $35,861,000 in the same period last year[50] - Gross profit margin for the nine months ended February 28, 2025, was 54.4%, compared to 49.9% for the same period in 2024[34] Expenses and Cost Management - Research and development expenses for the three months ended February 28, 2025, were $6,913 thousand, down from $8,189 thousand in the same period last year, reflecting a decrease of 15.6%[32] - Total operating expenses for the nine months ended February 28, 2025, were $149,814 thousand, significantly lower than $348,668 thousand for the same period in 2024[34] - The company incurred acquisition, restructuring, and other items totaling $3,286,000 for the three months ended February 28, 2025, down from $35,367,000 in the same period in 2024[43] - The company reported depreciation and amortization expenses of $6.319 million for the three months ended February 28, 2025, compared to $7.522 million for the same period last year[58] - Stock-based compensation for the three months ended February 28, 2025, was $2,398,000, compared to $2,612,000 for the same period in 2024[37] Cash Flow and Assets - Cash and cash equivalents decreased to $44,760,000 from $76,056,000 in the previous period[56] - Current liabilities were reported at $77,971,000, a decrease from $91,155,000 in the prior period[56] - Cash flows from operating activities resulted in a net cash used of $13.159 million for the three months ended February 28, 2025, compared to $12.526 million for the same period last year[58] - Net cash provided by financing activities was $7.147 million for the three months ended February 28, 2025, compared to $694 thousand for the same period last year[58] - The company had a net cash used in investing activities of $3.189 million for the three months ended February 28, 2025, compared to a net cash provided of $29.404 million for the same period last year[58] - The company reported total assets of $285,415,000 as of February 28, 2025, down from $317,671,000 as of May 31, 2024[56] Strategic Initiatives - The company is focused on strategic initiatives to enhance product development and market expansion, particularly in response to competitive pressures and regulatory challenges[30] - The company initiated the AMBITION BTK RCT to evaluate the Auryon Atherectomy System for treating critical limb ischemia[16] - The NanoKnife System received FDA clearance for prostate tissue ablation, with a pivotal study showing 84% of men free from significant disease at 12 months[18]

Company Overview - AngioDynamics, Inc. (ANGO) has initiated a clinical study named AMBITION BTK to compare the Auryon Atherectomy System combined with standard balloon angioplasty against standard balloon angioplasty alone for treating infrapopliteal lesions in patients with critical limb ischemia below-the-knee [1] - The Auryon Atherectomy System is an advanced laser-based technology designed to treat arterial blockages while minimizing damage to vessel walls, and it is FDA-cleared for treating blockages and in-stent restenosis in the lower limbs [9][10] Clinical Study Details - The AMBITION BTK trial aims to recruit up to 200 participants across 30 hospital-based sites, with a companion registry including up to 1,500 patients treated with the Auryon system who do not qualify for the RCT [5] - This trial builds on the success of a previous study that demonstrated the safety and effectiveness of the Auryon system in treating complex BTK lesions, where 60 patients were treated with excellent clinical results and minimal complications [6][8] Financial Performance - AngioDynamics reported an adjusted loss per share of 4 cents for the second quarter of fiscal 2025, an improvement from a loss of 5 cents in the same quarter the previous year [12] - The company's net sales for the second quarter of fiscal 2025 were $73.0 million, reflecting a 9.2% increase year-over-year, with Med Tech sales rising 25% to $31.5 million, driven by strong performances from the Auryon system and other products [13] Market Position and Growth Potential - AngioDynamics has a market capitalization of $504.2 million and a P/S ratio of 1.76, which is lower than the industry average of 2.83 [4] - The development of the Auryon system is expected to enhance AngioDynamics' position in the growing market for peripheral artery disease treatments, potentially leading to increased sales and market share [3] - The global laser atherectomy devices market is projected to grow from $182.1 million in 2022 to over $345.4 million by 2031, with a CAGR of 7.4%, driven by the rising prevalence of atherosclerosis and demand for minimally invasive procedures [11]

Group 1 - AngioDynamics has a less-than-ideal track record and faces ongoing challenges in its slow-growing legacy operations [1] - Despite these challenges, there is a bullish outlook on AngioDynamics stock due to better results in the growth-oriented Medical Tech segment [1]

Core Viewpoint - AngioDynamics, Inc. reported a narrower adjusted loss per share for the second quarter of fiscal 2025, indicating improved financial performance compared to the previous year and exceeding consensus estimates [1][2][20]. Financial Performance - Adjusted loss per share for Q2 fiscal 2025 was 4 cents, compared to 5 cents in the same quarter last year and better than the Zacks Consensus Estimate of 11 cents [1][2]. - GAAP loss per share was 26 cents, an improvement from 72 cents in the prior-year period [2][3]. - Total revenues for the quarter were $72.8 million, down 7.9% year over year but exceeding the Zacks Consensus Estimate by 2.4% [4][20]. Revenue Breakdown - U.S. net revenues were $62.7 million, a decrease of 2.1% year over year, but up 12.3% on a pro forma basis [6]. - International revenues fell to $10.2 million, down 32.5% year over year on a reported basis [7]. - Med Tech segment revenues increased to $31.6 million, reflecting a 24.4% year-over-year growth [8][9]. - Med Device segment revenues were $41.3 million, down 23.1% from the previous year [11]. Margin and Expense Analysis - Pro forma gross profit rose 8.9% to $39.9 million, with a slight contraction in gross margin to 54.7% [13]. - Sales and marketing expenses increased by 6.6% to $25.6 million, while R&D expenses decreased by 22.8% to $6.4 million [14]. Cash Position - The company ended the quarter with cash and cash equivalents of $54.1 million, down from $55 million at the end of the previous quarter, and had no debt [16]. Guidance for Fiscal 2025 - AngioDynamics revised its fiscal 2025 guidance, expecting net sales between $282 million and $288 million, representing a growth of 4.2-6.4% from the previous year [17]. - Med Tech revenue growth is now projected at 12-15%, an increase from the earlier estimate of 10-12% [17]. - Adjusted loss per share is expected to be between 34 cents and 38 cents, narrower than the previous projection [18].

Company Overview - AngioDynamics, Inc. (NASDAQ: ANGO) designs and manufactures medical devices focused on oncology, vascular access, and peripheral vascular diseases [1] - The company is strategically shifting towards Med Tech, particularly in mechanical thrombectomy and targeted cancer therapy, which are expected to yield higher profits [1] Market Focus - The markets of mechanical thrombectomy and targeted cancer therapy are identified as areas with significant growth potential for AngioDynamics [1] - The company aims to capitalize on these emerging markets to enhance its profitability and market position [1]

Revenue Performance - Revenue decreased by 7.9% to $72.8 million for the three months ended November 30, 2024, and decreased by 11.0% to $140.3 million for the six months ended November 30, 2024[118]. - Med Tech segment revenue grew by 24.4% in the second quarter of fiscal year 2025, while Med Device revenue declined by 23.1%[119]. - Auryon sales increased by $2.5 million and $5.2 million for the three and six months ended November 30, 2024, respectively[123]. Profitability - Gross profit increased by 390 basis points to 54.8% for the three months ended November 30, 2024, and increased by 370 basis points to 54.6% for the six months ended November 30, 2024[118]. - Net loss decreased by $18.3 million to $10.7 million for the three months ended November 30, 2024, and net income decreased by $40.4 million to $23.5 million for the six months ended November 30, 2024[118]. - Total company gross profit decreased by $0.4 million and $3.7 million for the three and six months ended November 30, 2024, compared to the same period in the prior year[128]. - Med Tech segment gross profit increased by $4.3 million and $5.3 million for the three and six months ended November 30, 2024, compared to the same period in the prior year, respectively[128]. - Med Device segment gross profit decreased by $4.7 million and $9.0 million for the three and six months ended November 30, 2024, compared to the same period in the prior year, respectively[131]. Cost Management - The restructuring plan is expected to generate $15.0 million in annual cost savings in fiscal year 2027[116]. - Research and development expenses decreased by $2.2 million and $3.9 million for the three and six months ended November 30, 2024, compared to the same period in the prior year[134]. - Selling and marketing expenses increased by $0.1 million for the three months ended November 30, 2024, but decreased by $1.6 million for the six months ended November 30, 2024, compared to the same period in the prior year[135]. Cash Flow and Liquidity - Cash used in operations decreased by $4.9 million to $15.8 million for the six months ended November 30, 2024[118]. - Operating activities generated a cash outflow of $15.8 million for the six months ended November 30, 2024, compared to an outflow of $20.6 million for the same period in the prior year[143]. - Cash and cash equivalents totaled $54.1 million as of November 30, 2024, down from $76.1 million as of May 31, 2024[143]. - The company believes its current cash balance, along with cash generated from operations, will provide sufficient liquidity for at least the next 12 months[147]. Debt and Financing - The company did not have any outstanding debt as of November 30, 2024[143]. - The company repaid $50.0 million under its Credit Agreement in connection with the completion of the dialysis and BioSentry divestiture in the first quarter of fiscal year 2024[149]. - The company received $100.0 million in cash from the divestiture of the dialysis and BioSentry businesses in the first quarter of fiscal year 2024[144]. Sales and Customer Concentration - The backlog of sales orders was $0.7 million as of November 30, 2024[122]. - No single customer represents more than 10% of total sales, limiting concentration of credit risk with respect to trade accounts receivable[153]. - Approximately 3.4% of the company's sales for the six months ended November 30, 2024, were denominated in foreign currencies, exposing profitability to currency fluctuations[151]. Shareholder Actions - The Company repurchased 72,141 shares for $0.5 million and 171,706 shares for $1.1 million under the share repurchase program[117]. - The company used $1.7 million for the repurchase of common shares in the first quarter of fiscal year 2025[149]. Internal Controls - There were no changes in internal control over financial reporting that materially affected the company for the fiscal quarter ended November 30, 2024[155].

Financial Data and Key Metrics - The company will discuss expected revenue, adjusted earnings, and gross margins for fiscal year 2025 during the call [3] - Management will use non-GAAP and pro forma financial measures to establish operational goals and review performance, which may help investors analyze underlying business trends [5] Business Line Data and Key Metrics - No specific data or metrics related to individual business lines were provided in the content Market Data and Key Metrics - No specific data or metrics related to individual markets were provided in the content Company Strategy and Industry Competition - No specific details on company strategy or industry competition were provided in the content Management Commentary on Operating Environment and Future Outlook - Management will make forward-looking statements about future events, including expected revenue, adjusted earnings, and gross margins for fiscal year 2025 [3] - Management encourages reviewing past and future SEC filings to understand factors that may cause actual results to differ from forward-looking statements [4] Other Important Information - The earnings call is being broadcast live on the company's website, with a replay available approximately one hour after the call ends [2] - Listeners are cautioned about the forward-looking nature of the statements made during the call [3] Q&A Session Summary - No Q&A session details were provided in the content

Company Performance - AngioDynamics reported a quarterly loss of $0.04 per share, better than the Zacks Consensus Estimate of a loss of $0.11, and an improvement from a loss of $0.05 per share a year ago, representing an earnings surprise of 63.64% [1] - The company posted revenues of $72.85 million for the quarter ended November 2024, surpassing the Zacks Consensus Estimate by 2.36%, although this is a decline from year-ago revenues of $79.07 million [2] - Over the last four quarters, AngioDynamics has exceeded consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Outlook - AngioDynamics shares have increased approximately 2.6% since the beginning of the year, outperforming the S&P 500's gain of 0.5% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.11 on revenues of $70.75 million, and for the current fiscal year, it is -$0.41 on revenues of $284.07 million [7] - The estimate revisions trend for AngioDynamics is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Medical - Instruments industry, to which AngioDynamics belongs, is currently in the top 30% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Q2 FY25 net sales were $73.0 million, a 9.2% YoY increase[3][8] - Net sales for the three months ended November 30, 2024, were $73.015 million, a decrease from $79.073 million in the same period last year[32] - Net sales for the six months ended November 30, 2024, were $140.515 million, down from $157.752 million in the same period last year[36] - Net sales for the three months ended Nov 30, 2024 were $72,845 thousand, down 7.9% from $79,073 thousand in the prior year period[56] - Total net sales decreased by 11.0% to $140.336 million for the six months ended November 30, 2024, compared to $133.627 million in the same period last year[61] Med Tech Segment Performance - Med Tech net sales grew 25.0% YoY to $31.5 million, driven by strong performance in Auryon, AngioVac, AlphaVac, and NanoKnife disposables[3][8][9] - Med Tech net sales for the three months ended Nov 30, 2024 were $31,554 thousand, up 24.4% from $25,363 thousand in the prior year period[56] - Med Tech segment revenue increased by 27.2% to $20.113 million for the three months ended November 30, 2024, compared to $15.783 million in the same period last year[58] - Net sales for the Med Tech segment grew by 16.2% to $59.523 million for the six months ended November 30, 2024, compared to $50.971 million in the same period last year[61] - Gross profit for the Med Tech segment increased by 16.2% to $37.810 million for the six months ended November 30, 2024, compared to $32.471 million in the same period last year[63] Med Device Segment Performance - Med Device net sales decreased 0.4% YoY to $41.5 million, with U.S. sales growing 1.6%[3][10] - Med Device net sales for the three months ended Nov 30, 2024 were $41,291 thousand, down 23.1% from $53,710 thousand in the prior year period[56] - Med Device segment revenue decreased by 19.0% to $19.793 million for the three months ended November 30, 2024, compared to $20.889 million in the same period last year[58] - Net sales for the Med Device segment declined by 24.1% to $80.813 million for the six months ended November 30, 2024, compared to $82.656 million in the same period last year[61] - Gross profit for the Med Device segment decreased by 18.8% to $38.820 million for the six months ended November 30, 2024, compared to $40.808 million in the same period last year[63] Profitability and Margins - Adjusted EBITDA for Q2 FY25 was $3.1 million, compared to $(0.0) million in Q2 FY24[6][14] - Gross margin for Q2 FY25 was 54.7%, with Med Tech gross margin at 63.7% and Med Device gross margin at 47.8%[11][12] - Gross profit margin for the three months ended November 30, 2024, was 54.7%, up from 50.9% in the same period last year[32] - Gross profit margin for the six months ended November 30, 2024, was 54.6%, up from 50.9% in the same period last year[36] - Total gross profit percentage increased to 54.8% for the three months ended November 30, 2024, up from 50.9% in the same period last year[58] - Total gross profit percentage increased to 54.6% for the six months ended November 30, 2024, up from 50.9% in the same period last year[63] Net Loss and Adjusted Metrics - Net loss for the three months ended November 30, 2024, was $10.728 million, compared to a net loss of $29.702 million in the same period last year[32] - Net loss for the six months ended November 30, 2024, was $23.671 million, compared to a net loss of $32.432 million in the same period last year[36] - Adjusted net loss for the three months ended November 30, 2024, was $1.742 million, compared to an adjusted net loss of $2.038 million in the same period last year[39] - Adjusted net loss for the six months ended November 30, 2024, was $6.137 million, compared to an adjusted net loss of $6.869 million in the same period last year[39] - Adjusted diluted loss per share for the three months ended November 30, 2024, was $0.04, compared to $0.05 in the same period last year[40] - Adjusted diluted loss per share for the six months ended November 30, 2024, was $0.15, compared to $0.17 in the same period last year[40] - Net income (loss) for the three months ended Nov 30, 2024 was $(10,738) thousand, compared to $(29,048) thousand in the same period last year[43] - Adjusted EBITDA for the three months ended Nov 30, 2024 was $3,040 thousand, up from $1,819 thousand in the prior year period[43] - Pro forma net loss for the three months ended Nov 30, 2024 was $(10,728) thousand, an improvement from $(29,702) thousand in the prior year period[45] - Adjusted pro forma net loss for the three months ended Nov 30, 2024 was $(1,726) thousand, compared to $(3,365) thousand in the prior year period[45] - Net income (loss) for the three months ended Nov 30, 2024 was $(10.7 million), compared to $(29.0 million) in the same period last year[68] - Net income (loss) for the six months ended Nov 30, 2024 was $(23.5 million), compared to $16.8 million in the same period last year[68] Cash Flow and Liquidity - The company generated $2.5 million in operating cash flow and had $54.1 million in cash and cash equivalents at the end of Q2 FY25[15] - Cash and cash equivalents decreased to $54.089 million as of November 30, 2024, compared to $76.056 million as of May 31, 2024[66] - Net cash provided by operating activities for the three months ended Nov 30, 2024 was $2.5 million, down from $5.3 million in the prior year period[68] - Net cash used in operating activities for the six months ended Nov 30, 2024 was $(15.8 million), compared to $(20.6 million) in the prior year period[68] - Cash and cash equivalents decreased by $916 thousand for the three months ended Nov 30, 2024, compared to an increase of $3.3 million in the prior year period[68] - Cash and cash equivalents decreased by $22.0 million for the six months ended Nov 30, 2024, compared to an increase of $16.3 million in the prior year period[68] Capital Expenditures and Stock Repurchases - Additions to property, plant and equipment totaled $797 thousand for the three months ended Nov 30, 2024, up from $554 thousand in the prior year period[68] - Repurchase of common stock totaled $1.1 million for the three months ended Nov 30, 2024, compared to $0 in the prior year period[68] - Additions to property, plant and equipment totaled $1.9 million for the six months ended Nov 30, 2024, up from $1.3 million in the prior year period[68] - Repurchase of common stock totaled $1.7 million for the six months ended Nov 30, 2024, compared to $0 in the prior year period[68] Regulatory and Clinical Developments - NanoKnife System received FDA 510(k) clearance for prostate tissue ablation in December 2024[6][19] - NanoKnife System achieved all primary endpoints in the PRESERVE clinical trial, with 84.0% of patients free from in-field, clinically significant disease at 12 months[23] - CPT Category I codes for NanoKnife System's IRE technology for prostate and liver lesions will be effective January 1, 2026, facilitating reimbursement and market access[17][18] Guidance and Outlook - FY25 guidance updated: net sales expected to be $282-$288 million (4.2%-6.4% growth), Med Tech sales growth raised to 12%-15%, and Adjusted EBITDA now expected to be $1.0-$3.0 million[24] Restructuring and Plant Closure - Plant closure expenses for the three months ended Nov 30, 2024 were $5,102 thousand, related to the restructuring of the manufacturing footprint[51] Geographic Sales Performance - U.S. net sales for the three months ended Nov 30, 2024 were $62,678 thousand, down 2.1% from $64,002 thousand in the prior year period[56] - International net sales for the three months ended Nov 30, 2024 were $10,167 thousand, down 32.5% from $15,071 thousand in the prior year period[56]