AngioDynamics(US:ANGO)2023-01-05 16:17Financial Data and Key Metrics Changes - The company reported revenue of $85.4 million for Q2 FY '23, representing a year-over-year growth of over 9% [7][18] - Adjusted earnings per share were $0.01, compared to an adjusted net loss of $0.02 in the same quarter last year [25] - Gross margin for Q2 FY '23 was 52.8%, an increase of 100 basis points year-over-year [22] Business Line Data and Key Metrics Changes - Med Tech segment revenue was $24.5 million, a 29.7% increase year-over-year, while Med Device segment revenue was $60.9 million, a 2.6% increase [18] - Auryon platform revenue grew 60.6% year-over-year, contributing $10.1 million in revenue during Q2 [19] - NanoKnife disposable revenue increased by 45.4% year-over-year, with U.S. sales growing 44.2% [21] Market Data and Key Metrics Changes - International markets grew 7% year-over-year, driven by strong NanoKnife sales [11] - The company reduced its backlog from $7.1 million to $5 million, indicating improved operational capacity [21][45] Company Strategy and Development Direction - The company is focusing on innovation in the PAD market with the launch of hydrophilic coated catheters [9] - Auryon is being positioned as a disruptive technology in the PAD market, with plans to target small vessel DVT by the end of 2024 [16][52] - The company is committed to leveraging proprietary technology platforms to deliver solutions in attractive markets [14] Management's Comments on Operating Environment and Future Outlook - Management noted that hospitals are becoming more adept at managing staffing issues, which are expected to improve gradually [8][70] - The company reiterated its full-year revenue guidance in the range of $342 million to $348 million, indicating confidence in its operational stability [26][67] - Management expressed optimism about the ongoing clinical trials and their potential to drive future growth [12][74] Other Important Information - The company generated over $5 million of net cash during the quarter, increasing its cash position to $29.9 million [25][26] - Research and development expenses were $6.8 million, representing 8% of sales, with a target of 10% to 12% for the full year [24] Q&A Session Summary Question: What are the expectations for AngioVac growth? - Management indicated that dynamics are improving and expects stronger performance in the second half of the year [30][31] Question: What is driving the growth in NanoKnife? - The growth is attributed to the excitement around the PRESERVE study and improved international sales, particularly in China and Central Europe [32][33] Question: What are the next steps regarding the litigation with Bard? - Management stated that the litigation is ongoing and not expected to materially impact business operations [39][40] Question: How is the backlog expected to change moving forward? - The company aims to reduce the backlog to a normal operating level, targeting around half a day’s sales [45][46] Question: What is the status of the Auryon platform? - Management confirmed that the focus has shifted to Auryon for small vessel DVT, with a potential launch by the end of 2024 [52][59]