AngioDynamics(US:ANGO)2022-01-06 18:24Financial Data and Key Metrics Changes - The company reported revenue of $78.3 million for Q2 FY 2022, representing a year-over-year growth of 7.6% [8][24] - Adjusted EPS was negative $0.02, compared to adjusted net income of $0.01 in the same quarter last year [31] - Gross margin for Q2 FY 2022 was 51.8%, a decrease of 340 basis points year-over-year due to rising labor and manufacturing costs [28][29] Business Line Data and Key Metrics Changes - Med Tech revenue was $18.9 million, a 36% increase year-over-year, driven by strong performance in Auryon and Thrombectomy platforms [8][24] - The Med Device business grew approximately 1% year-over-year, impacted by a $4 million backlog due to supply chain disruptions [8][20] - Auryon generated $6.3 million in revenue, with an estimated 5% market share, and is expected to continue robust growth [14][15] Market Data and Key Metrics Changes - Endovascular therapies revenue increased 17% year-over-year to $39.7 million, benefiting from the adoption of Auryon [25] - Mechanical Thrombectomy revenue grew 29% year-over-year, with a 21% increase when including unit usage [26] - Oncology business revenue declined 9.3% due to fewer capital sales and procedural pressures related to COVID [27] Company Strategy and Development Direction - The company is focused on transforming into a high-growth med tech company, with ongoing investments in manufacturing capacity and supply chain improvements [7][11] - Strategic initiatives include increasing manufacturing capacity in Costa Rica and pursuing targeted projects to enhance efficiency [11][12] - The company continues to explore strategic tuck-in M&A opportunities as part of its long-term growth strategy [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges from COVID-19, including staffing shortages and supply chain disruptions, but remains optimistic about demand for products [9][39] - The company expects potential headwinds to persist in Q3, with a recovery anticipated as internal initiatives take hold [32][46] - Management reiterated revenue guidance for FY 2022 in the range of $310 million to $315 million, despite current challenges [32][68] Other Important Information - The company has 22 active sites in its DIRECT study, with plans to expand clinical research efforts [22] - The PRESERVE study for the NanoKnife system is expected to begin patient enrollment in Q3, aiming to expand the target market significantly [23] Q&A Session Summary Question: How is the current wave of COVID different from previous ones and its impact on business? - Management noted increased pressure on healthcare networks due to staffing challenges, leading to cancellations of elective procedures [38][39] Question: What is the status of the $4 million backlog? - The backlog has increased slightly and is expected to plateau, with efforts underway to address labor shortages and supply chain issues [43][60] Question: How does the company view the impact of Omicron on revenue guidance? - Management expects some impact on the February quarter but believes demand remains strong overall [44][46] Question: What is the penetration rate of Auryon in the market? - Auryon currently holds about 5% market share, with room for growth as the company continues to place new lasers [47][50] Question: What is the timeline for the AlphaVac commercial release? - The full commercial release is not expected to be significantly impacted by Omicron, with plans to launch the 18 French device in the first half of the calendar year [52][70]