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]

Group 1: Stock Performance and Price Targets - AngioDynamics (ANGO) shares have increased by 5% over the past four weeks, closing at $6.69, with a mean price target of $13 indicating a potential upside of 94.3% [1] - The mean estimate includes three short-term price targets with a standard deviation of $1, where the lowest estimate of $12 suggests a 79.4% increase, and the highest estimate of $14 indicates a 109.3% surge [2] Group 2: Analyst Consensus and Earnings Estimates - Analysts show strong agreement in revising earnings estimates higher, which correlates with potential stock price increases, as indicated by a positive trend in earnings estimate revisions [4][9] - The Zacks Consensus Estimate for the current year has increased by 0.8% due to one upward revision over the last 30 days, with no negative revisions [10] Group 3: Analyst Behavior and Price Target Reliability - Analysts often set overly optimistic price targets due to business incentives, which can lead to inflated estimates [6] - A low standard deviation in price targets indicates a high degree of agreement among analysts regarding the stock's price movement direction, serving as a starting point for further research [7]

Core Viewpoint - AngioDynamics, Inc. (ANGO) has faced a significant decline in stock performance, dropping 13.8% over the past three months, contrasting with the industry's slight gain of 0.3% and the S&P 500's growth of 6.9% [1][4][6] Financial Performance - In the first quarter of fiscal 2025, AngioDynamics reported overall net sales growth, but Med Device net sales experienced a decline due to inflationary pressures on raw materials, labor shortages, and freight costs, negatively impacting gross profit [3][8] - The company anticipates fiscal 2025 revenues between $282 million and $288 million, reflecting a growth of 4.2% to 6.4% from fiscal 2024, although the Zacks Consensus Estimate indicates a 6.5% decline compared to the previous fiscal year [7][18] Recent Developments - AngioDynamics announced the grant of Category I CPT for Irreversible Electroporation (IRE), which is expected to enhance reimbursement for healthcare providers and improve patient access to the NanoKnife System [2] - The company launched the Auryon 1.7mm catheter and is executing a full commercial launch of AlphaVac for pulmonary embolism in the U.S. and CE-marked countries [10] - AngioDynamics received European CE mark approval for the Auryon Atherectomy System, allowing it to market the system for treating Peripheral Artery Disease in Europe [14] Market Position and Strategy - The company is focusing on expanding cancer treatment options and improving patient quality of life, with strong market acceptance of its NanoKnife system for tumor treatment [8][9] - AngioDynamics is investing in three key technologies: AngioVac, Auryon, and NanoKnife, while also working to enhance the profitability of its other products [9] - The majority of growth in the first quarter was driven by the U.S. market, with expectations for continued growth from AlphaVac in the near term [12] Stock Valuation - AngioDynamics' forward 12-month price-to-sales (P/S) ratio is 0.9X, significantly lower than the industry average of 4.5X and its five-year median of 1.5X, indicating potential for growth [15][19]

Core Insights - AngioDynamics, Inc. (ANGO) announced that its Irreversible Electroporation (IRE) technology has received Current Procedural Terminology (CPT) Category I codes for treating lesions in the prostate and liver, indicating clinical efficacy and value in the medical community [1][2] - Following the announcement, ANGO's stock price increased by nearly 11.2% to $7.27, although the stock has declined 7.3% year-to-date compared to an 8.4% rise in the industry and a 22.7% increase in the S&P 500 [2] - The recognition of IRE under CPT Category I codes is expected to enhance billing precision for healthcare providers, leading to broader insurance coverage and defined reimbursement rates for NanoKnife procedures [3] Company Developments - The NanoKnife System, which utilizes IRE technology to ablate targeted cells without thermal energy, has shown solid growth and previously received FDA clearance for surgical ablation of soft tissue [4] - The system was also granted Breakthrough Device Designation by the FDA, highlighting its innovative approach in the medical field [4] - ANGO's market capitalization currently stands at $265.8 million, and the company reported an earnings surprise of 26.7% in the last quarter [2] Industry Prospects - The global pancreatic cancer treatment market was valued at $2.86 billion in 2023 and is projected to exceed $10.69 billion by 2032, with a compound annual growth rate (CAGR) of 15.8% [5] - Factors driving market growth include unhealthy lifestyles, alcohol consumption, and obesity, which are primary causes of pancreatic cancer [5]

Core Viewpoint - AngioDynamics (ANGO) has experienced a significant downtrend, with a 15.9% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to analysts' positive earnings outlook [1][3]. Group 1: Stock Performance - ANGO's stock has declined 15.9% in the last four weeks, indicating strong selling pressure [1]. - The stock is currently in oversold territory, as indicated by an RSI reading of 24.7, suggesting that selling may be exhausting [3]. Group 2: Analyst Sentiment - There is strong consensus among sell-side analysts that ANGO will report better earnings than previously predicted, with a 0.8% increase in the consensus EPS estimate over the last 30 days [3]. - ANGO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [3].

Core Insights - AngioDynamics, Inc. reported an adjusted loss per share of 11 cents for Q1 fiscal 2025, an improvement from 12 cents in the same quarter last year and better than the Zacks Consensus Estimate of 15 cents [1] - The company's revenues for the fiscal first quarter totaled $67.5 million, down 14.2% year over year, missing the Zacks Consensus Estimate by 1.5% [3] - The company expects net sales for fiscal 2025 to be between $282 million and $288 million, indicating growth of 4.2-6.4% over the previous fiscal year [9] Financial Performance - Adjusted loss per share was 11 cents, compared to 12 cents in the prior year, and GAAP loss per share was 31 cents, wider than the previous year's EPS of $1.15 [1] - On a pro-forma basis, the GAAP loss per share was 32 cents, wider than 7 cents in the prior-year period [1] - Pro-forma gross profit rose 0.3% year over year to $36.7 million, but pro-forma gross margin contracted by 40 basis points to 54.4% [7] Revenue Breakdown - U.S. net revenues totaled $59.5 million, down 7.6% year over year, while international revenues were $8 million, down 43.9% [4] - Med Tech business net sales were $28 million, reflecting an 8.2% year-over-year increase, primarily driven by strong sales of the Auryon platform [5] - Med Device revenues grossed $39.5 million, down 25.2% from the year-ago period [5][6] Cash Position - AngioDynamics ended Q1 fiscal 2025 with cash and cash equivalents of $55 million, down from $76.1 million at the end of fiscal 2024, and had no debt on its balance sheet [8] Guidance and Outlook - The company reiterated its guidance for fiscal 2025, expecting adjusted loss per share between 38 cents and 42 cents, with a consensus estimate of a loss of 41 cents [9] - Med Tech revenue growth is projected at 10-12%, while Med Device revenue increase is expected to be 1-3% [9] Market Reaction - Following the earnings call, AngioDynamics' shares rose 3.3% in after-market trading [2]

Part I: Financial Information [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Net sales decreased to $67.5 million, resulting in a $12.8 million net loss, driven by divestitures and a prior-year asset sale gain [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Net sales decreased 14.2% to $67.5 million, leading to a $13.1 million operating loss and a $12.8 million net loss, contrasting with prior-year's $47.8 million asset sale gain Consolidated Statements of Operations (unaudited) | Metric | Three Months Ended Aug 31, 2024 (in thousands) | Three Months Ended Aug 31, 2023 (in thousands) | | :--- | :--- | :--- | | Net sales | $67,491 | $78,679 | | Gross profit | $36,724 | $40,060 | | Total operating expenses | $49,822 | $52,872 | | Gain on sale of assets | $0 | $47,842 | | Operating income (loss) | $(13,098) | $35,030 | | Net income (loss) | $(12,798) | $45,884 | | Diluted earnings (loss) per share | $(0.31) | $1.15 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Cash and cash equivalents decreased to $55.0 million, with total assets declining to $293.6 million and total liabilities to $97.0 million as of August 31, 2024 Key Balance Sheet Items (unaudited) | Metric | Aug 31, 2024 (in thousands) | May 31, 2024 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $55,005 | $76,056 | | Total current assets | $172,594 | $193,253 | | Total assets | $293,628 | $317,671 | | Total current liabilities | $76,699 | $91,155 | | Total liabilities | $97,046 | $112,085 | | Total Stockholders' Equity | $196,582 | $205,586 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was $18.3 million, leading to a $21.1 million net decrease in cash and cash equivalents for the quarter Cash Flow Summary (unaudited) | Activity | Three Months Ended Aug 31, 2024 (in thousands) | Three Months Ended Aug 31, 2023 (in thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | $(18,253) | $(25,899) | | Net cash (used in) provided by investing activities | $(2,405) | $98,442 | | Net cash used in financing activities | $(509) | $(59,590) | | **Increase (decrease) in cash** | **$(21,051)** | **$12,966** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key notes detail two major divestitures, revenue disaggregation, a Becton Dickinson legal settlement, a manufacturing restructuring plan, and a new share repurchase program - The company completed the sale of its Dialysis and BioSentry businesses to Merit Medical for **$100.0 million** in cash in Q1 FY2024, resulting in a pre-tax gain of **$47.8 million**[42](index=42&type=chunk) - The company completed the sale of its PICC and Midline businesses to Spectrum Vascular in Q3 FY2024 for **$34.5 million** in cash, plus potential earn-outs and milestone payments[39](index=39&type=chunk) - On January 5, 2024, the company announced a restructuring of its manufacturing footprint to an outsourced model, expected to be completed in Q3 FY2026 with total estimated costs of **$38.5 million to $53.5 million**. Restructuring charges of **$3.6 million** were recorded in the quarter[100](index=100&type=chunk)[101](index=101&type=chunk) - A settlement was reached with Becton, Dickinson and Company (BD) to resolve ongoing patent litigation, involving a one-time payment of **$7.0 million**, six minimum annual payments of **$2.5 million**, and potential additional payments[96](index=96&type=chunk) [Management's Discussion and Analysis (MD&A)](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Quarterly revenue decreased 14.2% to $67.5 million due to divestitures, despite Med Tech growth, resulting in a $12.8 million net loss and a $21.1 million decrease in cash [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Net sales decreased by $11.2 million due to Med Device divestitures, partially offset by Med Tech growth, while gross margin improved to 54.4% despite a fall in gross profit Net Sales by Segment (in thousands) | Segment | Q1 FY2025 (Aug 31, 2024) | Q1 FY2024 (Aug 31, 2023) | $ Change | | :--- | :--- | :--- | :--- | | Med Tech | $27,969 | $25,860 | $2,109 | | Med Device | $39,522 | $52,819 | $(13,297) | | **Total** | **$67,491** | **$78,679** | **$(11,188)** | Gross Profit by Segment (in thousands) | Segment | Q1 FY2025 (Aug 31, 2024) | Q1 FY2024 (Aug 31, 2023) | Gross Margin % (Q1 FY25 vs Q1 FY24) | | :--- | :--- | :--- | :--- | | Med Tech | $17,697 | $16,727 | 63.3% vs 64.7% | | Med Device | $19,027 | $23,333 | 48.1% vs 44.2% | | **Total** | **$36,724** | **$40,060** | **54.4% vs 50.9%** | - The decrease in Med Device sales was primarily driven by the divestiture of PICCs and Midline products (**$10.2 million** impact) and dialysis and BioSentry products (**$0.8 million** impact)[122](index=122&type=chunk) - Acquisition, restructuring and other items increased by **$1.1 million**, mainly due to a **$3.6 million** increase in plant closure expenses related to the manufacturing restructuring plan[133](index=133&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and cash equivalents decreased to $55.0 million due to $18.3 million cash used in operations, with no outstanding debt, and sufficient liquidity for 12 months Cash and Debt Position (in millions) | Metric | Aug 31, 2024 | May 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $55.0 | $76.1 | | Outstanding Debt | $0.0 | $0.0 | - Cash used in operating activities was **$18.3 million**, an improvement from the **$25.9 million** used in the prior-year period[137](index=137&type=chunk)[138](index=138&type=chunk) - In the prior-year quarter (Q1 FY2024), investing activities provided **$98.4 million** cash from the divestiture of the dialysis and BioSentry businesses, while financing activities used **$59.6 million** for debt repayment and contingent consideration[137](index=137&type=chunk)[140](index=140&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces foreign currency exchange rate risk on 3.4% of sales and limited credit risk due to a diversified customer base - Approximately **3.4%** of sales in the quarter were denominated in foreign currencies, exposing the company to exchange rate fluctuations[145](index=145&type=chunk) - Credit risk is mitigated as no single customer represents more than **10%** of total sales[147](index=147&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of August 31, 2024, with no material changes in internal control over financial reporting during the quarter - Management concluded that disclosure controls and procedures were effective as of the end of the period[149](index=149&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[150](index=150&type=chunk) Part II: Other Information [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 14 of the financial statements for detailed information on commitments and contingencies, including litigation updates - For details on legal proceedings, the report directs readers to Note 14, "Commitments and Contingencies," in the consolidated financial statements[153](index=153&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) The company highlights a potential risk related to future financing needs, having extinguished its Credit Agreement and requiring new external financing for growth or changing circumstances - The company repaid all amounts under its Credit Agreement in June 2023, which was then extinguished. This could pose a risk if additional financing is needed for future growth initiatives or acquisitions[155](index=155&type=chunk) [Issuer Purchases of Equity Securities](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 72,141 shares under a new **$15.0 million** program, with approximately **$14.4 million** remaining for future repurchases Share Repurchase Activity (Three Months Ended Aug 31, 2024) | Period | Total Shares Purchased as Part of Program (shares) | Average Price Paid per Share (USD) | Maximum Value Remaining for Repurchase (USD) | | :--- | :--- | :--- | :--- | | July 1 - July 31, 2024 | 72,141 | $6.68 | $14,448,871 | - A new share repurchase program authorizing up to **$15.0 million** was approved and announced on July 16, 2024[157](index=157&type=chunk) [Other Information](index=32&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No directors or officers adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter[159](index=159&type=chunk)