AngioDynamics(US:ANGO)2023-03-30 14:59Financial Data and Key Metrics Changes - The company reported revenue of $80.7 million for Q3 2023, representing a 9% year-over-year growth, driven by a 17% increase in the Med Tech segment [6][19] - Year-to-date, net sales have grown 8%, with the Med Tech segment growing 25% and the Med Device segment growing 2.5% [7][19] - Adjusted net loss for Q3 2023 was $1 million, compared to an adjusted net income of $1.3 million in the same quarter last year [27][28] - The company revised its full-year revenue guidance to a range of $338 million to $342 million, down from $342 million to $348 million [29] Business Line Data and Key Metrics Changes - Med Tech revenue was $22.9 million, a 16.6% year-over-year increase, while Med Device revenue was $57.8 million, an increase of 6.4% year-over-year [19][20] - Auryon platform contributed $10.4 million in revenue during Q3, a 42.8% increase compared to last year [20] - NanoKnife disposable sales grew approximately 22% during the quarter, with year-to-date sales growing 26.7% [22] - AngioVac revenue was $5.5 million, representing a decline of 15.7% year-over-year, and year-to-date revenue is down 8.2% [22] Market Data and Key Metrics Changes - International markets grew 14% year-over-year, driven by NanoKnife and contributions from the Med Device business [12] - The company expects regulatory approvals to launch Auryon and AlphaVac internationally during fiscal year 2024 [13] Company Strategy and Development Direction - The company is focused on optimizing its commercial strategy and enhancing the selling process for AngioVac and AlphaVac [9][10] - The mechanical thrombectomy platform is expected to grow 10% to 20% in fiscal 2023, below prior expectations of 25% to 30% [22] - The company aims to strengthen its sales network and expand its global scientific presence [13] Management's Comments on Operating Environment and Future Outlook - Management noted improvements in the macro environment, particularly regarding hospital staffing challenges [34] - The company remains confident in the long-term prospects for its mechanical thrombectomy business despite short-term challenges [10][22] - Management anticipates continued growth in the NanoKnife platform and is optimistic about upcoming regulatory approvals [15][44] Other Important Information - Gross margin for Q3 2023 was 50.2%, a decrease of 200 basis points compared to the previous year, impacted by inflationary pressures [24][25] - Research and development expenses were $6.9 million, or 8.5% of sales, with a focus on key technology platforms [26] Q&A Session Summary Question: What are the broader macro trends affecting the company? - Management indicated that the macro environment is improving, particularly in hospital staffing challenges, although supply chain disruptions and inflation remain [34][35] Question: Can you elaborate on the new selling processes for AngioVac? - Management is integrating the sales approach for AngioVac and AlphaVac, focusing on training and improving customer messaging [36][38] Question: What are the expectations for international approvals? - Management is focusing on Western Europe for growth opportunities and anticipates regulatory approvals for Auryon and AlphaVac in the next calendar year [39][41] Question: How does the company view the growth potential for NanoKnife? - Management expects continued growth driven by increased awareness and successful clinical studies, with a potential market exceeding $700 million in the U.S. [44] Question: What is the outlook for Auryon? - Management is optimistic about Auryon's development and plans to expand its applications, with positive feedback from physicians [46][49] Question: What are the dynamics affecting AngioVac's user base? - Management noted a mix of gaining new users and some users reducing their cases, with ongoing training efforts to improve usage [60]