AngioDynamics(ANGO) - 2025 Q3 - Quarterly Report

Revenue and Sales Performance - Revenue decreased by 4.2% to $72.0 million for the three months ended February 28, 2025, and by 8.8$212.3 million for the nine months ended February 28, 2025[120]. - Med Tech segment grew by 21.3% in the third quarter, while Med Device segment declined by 17.6%[120]. - Med Tech segment net sales increased by $5.5 million and$13.8 million for the three and nine months ended February 28, 2025, respectively[125]. - The company had a sales order backlog of $0.5 million as of February 28, 2025[124]. Profitability and Loss - Gross profit increased by 630 basis points to 54.0$183.3 million to $4.4 million for the three months ended February 28, 2025[120]. - Total company gross profit increased by$3.0 million for the three months ended February 28, 2025, but decreased by $0.7 million for the nine months ended February 28, 2025 compared to the same periods in 2024[129]. - Med Tech segment gross profit increased by$3.7 million and $9.0 million for the three and nine months ended February 28, 2025, respectively[131]. - Med Device segment gross profit decreased by$0.7 million and $9.7 million for the three and nine months ended February 28, 2025, respectively[131]. - The company recorded a net loss of$27.9 million for the nine months ended February 28, 2025, compared to a loss of $170.9 million for the same period in the previous year[148]. Expenses and Cost Management - Research and development expenses decreased by$1.3 million and $5.2 million for the three and nine months ended February 28, 2025, respectively[134]. - Selling and marketing expenses increased by$0.1 million for the three months ended February 28, 2025 but decreased by $1.5 million for the nine months ended February 28, 2025[137]. - General and administrative expenses decreased by$0.1 million for the three months ended February 28, 2025 but increased by $1.1 million for the nine months ended February 28, 2025[138]. - Legal expenses decreased by$23.3 million and $30.0 million, primarily due to a$19.3 million settlement with BD in the prior year[144]. Cash Flow and Financial Position - Cash used in operations decreased by $4.2 million to$28.9 million for the nine months ended February 28, 2025[125]. - Cash used in operating activities was $(28,939) thousand for the nine months ended February 28, 2025, compared to$(33,159) thousand for the nine months ended February 29, 2024[145]. - Cash provided by financing activities was $5,515 thousand for the nine months ended February 28, 2025, compared to$(59,248) thousand for the same period in the previous year[145]. - Cash and cash equivalents totaled $44.8 million as of February 28, 2025, down from$76.1 million as of May 31, 2024[143]. - The company did not have any outstanding debt as of February 28, 2025 and May 31, 2024[143]. - The company has a cash balance sufficient to meet anticipated capital needs for at least the next 12 months[147]. Strategic Initiatives - The restructuring plan is expected to generate $15.0 million in annual cost savings starting in fiscal year 2027[116]. - The company repurchased 72,141 shares for$0.5 million and 171,706 shares for $1.1 million in the first and second quarters of fiscal year 2025, respectively[117]. - The company entered into agreements to sell manufacturing facilities for a total purchase price of$6.7 million[118]. - The company achieved a sales milestone related to divested products, recording a receivable of $5.5 million expected to be paid in the fourth quarter of fiscal year 2025[144]. - The company received$100.0 million from the divestiture of the dialysis and BioSentry businesses in the first quarter of fiscal year 2024[148]. Foreign Currency and Taxation - Approximately 3.5% of the company's sales were denominated in foreign currencies for the nine months ended February 28, 2025[151]. - The effective tax rate for the three months ended February 28, 2025 was 0.0%, compared to 6.0% for the same period in 2024[141]. - Unrealized foreign currency fluctuations increased by $0.1 million and$0.3 million for the three and nine months ended February 28, 2025, respectively[144]. Working Capital - Working capital was negatively impacted by a decrease in accounts payable and accrued liabilities of $18.5 million for the period ended February 28, 2025[148].