AngioDynamics(US:ANGO)2022-10-06 17:31Financial Data and Key Metrics Changes - The company reported revenue of $81.5 million for Q1 FY 2023, representing a year-over-year growth of approximately 6% [7][17] - Adjusted net loss for Q1 FY 2023 was $2.5 million, compared to an adjusted net loss of $900,000 in the same quarter last year [27] - Gross margin for Q1 FY 2023 was 51.9%, a decrease of 20 basis points compared to the previous year [22] Business Line Data and Key Metrics Changes - Med Tech revenue was $22.8 million, a 29.6% year-over-year increase, while Med Device revenue was $58.7 million, declining 1.1% compared to the first quarter of FY 2022 [17] - Auryon platform revenue grew 50% year-over-year to $8.8 million [18] - Mechanical thrombectomy revenue, including AngioVac and AlphaVac, grew 36% year-over-year [19] - NanoKnife disposable revenue increased 12.3%, driven by 21.8% growth in international markets [21] Market Data and Key Metrics Changes - International markets, particularly in Europe, had a strong quarter, contributing to the growth of NanoKnife [13] - The company faced significant staffing challenges in hospitals, impacting procedural volumes [9] Company Strategy and Development Direction - The company is focused on utilizing proprietary technology in Med Tech platforms to enter large, fast-growing markets and drive beneficial patient outcomes [8] - Strategic investments include geographic expansion, clinical research, product development, and regulatory pathway expansion [14] - The company aims to continue growing its Med Tech segment, which is expected to represent a larger portion of total sales [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macro challenges, including inflationary pressures and staffing issues in hospitals, but expressed confidence in the company's ability to navigate these challenges [9][23] - The company expects to see continued growth in its Med Tech segment and anticipates revenue for FY 2023 in the range of $342 million to $348 million [37] Other Important Information - The company is currently involved in an antitrust suit against Becton, Dickinson's C.R. Bard business related to its Vascular Access business [16] - The company refinanced its credit facility to extend maturity to 2027 and align cash usage with revenue generation profiles [31][34] Q&A Session Summary Question: Ongoing hospital challenges and their impact on product lines - Management noted that staffing challenges have particularly affected AngioVac, with hospitals struggling to manage procedural volumes due to staffing shortages [43][44] Question: Utilization of Auryon systems - Management confirmed that they are tracking utilization per system and are seeing increased usage as customers become more familiar with the product [54][55] Question: Guidance for revenue and cash usage - Management provided guidance for FY 2023 revenue and indicated that Q1 typically sees the highest cash utilization, with expectations for cash balances to build throughout the year [67][70]