AngioDynamics(US:ANGO)2026-04-02 17:56Financial Performance - For the three months ended February 28, 2026, net sales increased by $6.4 million to $78.4 million, compared to $72.0 million in the same period of the prior year [111]. - For the nine months ended February 28, 2026, net sales increased by $21.2 million to $233.6 million, compared to $212.3 million in the same period of the prior year [111]. - The company reported a net loss of $8.1 million for Q3 FY2026, compared to a net loss of $4.4 million in Q3 FY2025 [111]. - The company recorded a net loss of $25.3 million for the nine months ended February 28, 2026 [132]. Revenue Growth - Med Tech revenue grew by 19.0% in Q3 FY2026, driven by increased sales of Auryon and the thrombus management platform [110]. - Med Tech segment net sales increased by $5.9 million and $17.3 million for Q3 and nine months ended February 28, 2026, respectively [115]. - Increased sales of Auryon contributed $2.5 million and $7.8 million to revenue for Q3 and nine months ended February 28, 2026, respectively [116]. Margins and Expenses - Gross margin decreased by 110 basis points to 52.9% for Q3 FY2026, with Med Tech gross margin remaining consistent at 62.5% and Med Device gross margin decreasing to 44.2% [113]. - The Med Device segment gross margin decreased by $1.1 million for the three months ended February 28, 2026, but increased by $1.5 million for the nine months ended February 28, 2026 compared to the prior year [119]. - Research and development expenses increased by $0.2 million and $1.6 million for the three and nine months ended February 28, 2026, respectively [121]. - Selling and marketing expenses rose by $1.9 million and $5.6 million for the three and nine months ended February 28, 2026, respectively [122]. - General and administrative expenses increased by $0.2 million and $1.6 million for the three and nine months ended February 28, 2026, respectively [123]. Cash and Financing - Cash and cash equivalents totaled $37.8 million as of February 28, 2026, down from $55.9 million as of May 31, 2025 [129]. - Cash used in operating activities was $14.4 million for the nine months ended February 28, 2026, compared to $28.9 million for the same period in 2025 [132]. - $6.3 million of proceeds from financing arrangements in Q3 of fiscal year 2025 [135]. - $1.0 million of proceeds from stock option and ESPP activity for both periods [135]. - $1.7 million of cash used for the repurchase of common shares in fiscal year 2025 [135]. - The Company had no outstanding debt as of February 28, 2026 [138]. - The Credit Agreement provides for a $25.0 million secured revolving credit facility [139]. Market and Operational Challenges - The current macroeconomic environment, including inflation and supply chain challenges, continues to impact the company's operations [109]. - The backlog at February 28, 2026, was $0.3 million, primarily impacting sales of Core products [114]. Tax and Risk Management - The effective tax rate including discrete items for the three months ended February 28, 2026 was (0.1)% [128]. - No single customer represents more than 10% of total sales, limiting concentration of credit risk [141]. - The Company does not foresee significant credit risk associated with outstanding accounts receivable [141]. - Approximately 4.1% of sales were denominated in foreign currencies for the nine months ended February 28, 2026 [137]. Other Income - Other income, net decreased by $0.7 million and $1.8 million for the three and nine months ended February 28, 2026, respectively [127]. - The company achieved a manufacturing transfer milestone related to divested products, recording associated revenue of $5.0 million in the third quarter of fiscal year 2026 [127].