AngioDynamics(US:ANGO)2022-07-12 16:52Financial Data and Key Metrics Changes - The company reported revenue of $87 million for Q4 FY 2022, representing a year-over-year growth of over 13% [7][23] - Full fiscal year revenue was $316.2 million, reflecting a growth of almost 9% compared to the previous year [8] - Gross margin for Q4 FY 2022 was 53.4%, with a full year gross margin of 52.4%, consistent with revised guidance [17][32] Business Line Data and Key Metrics Changes - Med Tech platforms generated $22.6 million in revenue for Q4, a 40% increase year-over-year, and accounted for approximately 26% of total revenue [8][23] - Auryon revenue for Q4 was $9.6 million, with full year revenue of $29.1 million, exceeding guidance [10][25] - Mechanical thrombectomy revenue grew 10% year-over-year in Q4, with a full year growth of 16% [12][28] - NanoKnife disposable sales increased by 16% in Q4, driven by a 64% growth in the U.S. [14][30] Market Data and Key Metrics Changes - The Endovascular Therapies business saw an 18.5% increase in revenue year-over-year during Q4, benefiting from Auryon and thrombectomy growth [25] - Vascular Access revenue increased by 9.3% in Q4, while the Oncology business grew by 5.8% [29][30] Company Strategy and Development Direction - The company aims to expand its Med Tech platforms and increase their contribution to overall revenue, expecting Med Tech sales to grow significantly in FY 2023 [9][39] - The strategic focus includes enhancing clinical trials and product development to penetrate larger, faster-growing markets [19][44] - The total addressable market is projected to exceed $6 billion in FY 2023, with plans to expand it to over $8 billion by 2025 [44][45] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as high inflation, staffing shortages, and supply chain disruptions but expressed confidence in the company's growth trajectory [9][39] - For FY 2023, the company anticipates revenue between $342 million and $348 million, with adjusted EPS guidance of $0.01 to $0.06 [39][40] - Management remains committed to balancing investments in growth with prudent cash management [38][42] Other Important Information - The company launched new products, including the AlphaVac mechanical thrombectomy device, and initiated clinical studies to support product adoption [10][20] - The company is involved in legal action against Becton, Dickinson's C.R. Bard business regarding antitrust issues [21] Q&A Session Summary Question: Does the fiscal 2023 guide assume that the backlog gets exhausted during the year? - Management indicated that while the backlog provides a safety net, the FY 2023 guidance was built from the bottom-up and does not fully rely on the backlog [49][50] Question: Is there an expectation for Oncology and Vascular Access to grow year-over-year in fiscal 2023? - Management expects the Med Device businesses to grow 1% to 3%, with NanoKnife anticipated to continue strong double-digit growth [51][52] Question: Are staffing challenges at hospitals impacting procedure volumes? - Yes, staffing challenges, particularly for complex procedures like AngioVac, have negatively affected procedure volumes [55][56] Question: Is there any cannibalization of AngioVac by AlphaVac? - Management acknowledged some expected cannibalization but believes the overall market expansion opportunities for AlphaVac will outweigh this effect [57][58] Question: What is the expected revenue for AlphaVac in FY 2023? - Management expects AlphaVac revenue to be in the range of $7 million to $9 million for FY 2023 [78]