AngioDynamics(ANGO) - 2022 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported revenue of $77 million for the first quarter, representing a year-over-year growth of 9.6% [9][20] - Adjusted net loss for the quarter was $0.9 million, or a loss of $0.02 per share, compared to adjusted net income of $0.6 million, or earnings per share of $0.02 in the same quarter last year [27] - Gross margin for the quarter was 52.1%, an increase of 120 basis points compared to the previous year [23] Business Line Data and Key Metrics Changes - Revenue from the Med Tech business was $17.6 million, a 68% increase year-over-year, while the Med Device business revenue was approximately flat year-over-year at $59.4 million [20] - Auryon revenue was $5.9 million, up from $4.6 million in the previous quarter, with expectations for FY 2022 revenue now projected between $24 million to $26 million [10][20] - AngioVac revenue grew 12% year-over-year, while Vascular Access revenue declined 11.2% compared to the prior year [21][22] Market Data and Key Metrics Changes - The endovascular therapies business saw a revenue increase of 27.5% year-over-year to $38.1 million, driven by Auryon growth [20] - NanoKnife sales grew 34% year-over-year globally and 63% in the U.S., supported by increased procedural volumes [14][22] Company Strategy and Development Direction - The company is transforming into a high-growth Med Tech company, focusing on innovative technologies to drive growth in larger markets [8][29] - Strategic and tuck-in M&A remains a part of the long-term growth strategy, with ongoing monitoring of the landscape for opportunities [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted that the ongoing COVID-19 pandemic, particularly the Delta variant, impacted case volumes but observed improving trends in September [8][18] - The company anticipates continued headwinds from COVID-related challenges but remains confident in its growth trajectory [19][55] Other Important Information - The company is investing in R&D and sales and marketing to drive sustainable growth, with R&D expenses at $7.4 million for the quarter [26] - The company has a disciplined approach to capital allocation and expense management, with expectations for FY 2022 net sales in the range of $310 million to $315 million [28][29] Q&A Session Summary Question: Can you summarize the COVID commentary? - Management confirmed that the Delta variant negatively impacted the fiscal first quarter but noted improving trends in September [31][32] Question: What drove the jump in the installed base of Auryon lasers? - The increase was attributed to strong customer demand and a secure supply chain [33][34] Question: What is the timing for the 18 French AlphaVac device? - The launch is expected in the first half of calendar year 2022 [39] Question: What is the growth expectation for the thrombectomy platform? - The 30% growth target is focused on mechanical thrombectomy products, primarily from the AngioVac and AlphaVac platforms [40] Question: How is the company addressing nursing staff shortages? - Management is closely monitoring the situation and noted that hospitals are under pressure but have learned to balance care delivery better than before [58][59]