AngioDynamics(US:ANGO)2021-07-13 16:53Financial Data and Key Metrics Changes - For FY '21, the company reported full year revenue of $291 million, representing a growth of 10.2% year-over-year [10] - The fourth quarter revenue was $76.8 million, reflecting a sequential growth of 8% over the third quarter [10] - Adjusted EPS for FY '21 was $0.05, compared to an adjusted net loss of $2.1 million or $0.06 per share in the fourth quarter of the previous year [25] - Gross margin for the fourth quarter was 55.1%, an increase of 330 basis points year-over-year [21] Business Line Data and Key Metrics Changes - Auryon revenue for the fourth quarter was $4.6 million, with total FY '21 revenue at $11.1 million, and expected to grow to $18 million to $22 million in FY '22 [12][19] - AngioVac platform revenue increased 14% sequentially in the fourth quarter, with year-over-year growth of 47% in FY '21 [12] - NanoKnife probe sales grew 14% sequentially in the fourth quarter and 19% in the U.S., with FY '21 growth of 13% worldwide and 38% in the U.S. [15] Market Data and Key Metrics Changes - The total endovascular therapies business increased 72.3% year-over-year to $38.1 million, driven by strong performance from AngioVac and Auryon [19] - Vascular Access revenue increased 3.2% year-over-year, while Oncology business revenue increased 14.2% during the quarter [20][21] Company Strategy and Development Direction - The company is focused on transforming into a customer-focused, technology-driven, growth-oriented entity, with strategic investments in R&D and sales and marketing [7][9] - The company plans to continue investing in its Med Tech platforms, including Auryon, Mechanical Thrombectomy, and NanoKnife, while maintaining a disciplined approach to capital allocation [16][27] - M&A remains a long-term growth strategy, although it was deprioritized in the short term due to COVID-related challenges [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the normalization of procedural volumes as the COVID-19 pandemic subsides, indicating a positive trend in end markets [10][11] - The company anticipates FY '22 net sales in the range of $305 million to $310 million, reflecting a growth of 5% to 7% over FY '21 [27] - Management acknowledged external pressures such as staffing challenges and inflationary costs impacting gross margins, but expects gradual improvement over time [22][23] Other Important Information - The company generated free cash flow of $3.1 million during the fourth quarter and ended with $48.2 million in cash and cash equivalents [26] - The company received FDA approval for its 100 patient NanoKnife prostate IDE study, PRESERVE, which is expected to enhance its clinical offerings [17] Q&A Session Summary Question: Can you provide insight into the types of procedures Auryon is growing in? - Management noted a blend of above and below the knee procedures, with increasing confidence in the technology leading to more complex cases being performed [31][32] Question: How is the growth in AngioVac being driven? - Growth is attributed to new users and existing users increasing their usage as they gain confidence in the product's outcomes [39] Question: What are the trends in April and May? - Management indicated that while there is improvement, the operating environment is not yet fully normalized, particularly in regions like Latin America and Asia Pacific [44][62] Question: What is the expected growth for the different business segments in FY '22? - Guidance includes $18 million to $22 million from Auryon, 30% growth for the Mechanical Thrombectomy platform, and 20% growth for NanoKnife probes [46] Question: What is the expected gross margin for FY '22? - The company expects gross margin to be approximately 55%, with potential for improvement as sales mix shifts towards higher-margin products [23][56]