AngioDynamics(US:ANGO)2024-10-03 14:29Financial Data and Key Metrics Changes - Total worldwide revenue for Q1 FY 2025 was $67.5 million, representing a year-over-year growth of just over 1% [8][20] - Adjusted EBITDA loss was $200,000, an improvement from a loss of $1.1 million in Q1 FY 2024 [9][25] - Adjusted net loss for Q1 FY 2025 was $4.4 million, or $0.11 per share, compared to a loss of $6.2 million or $0.16 per share in the prior year [24][25] Business Line Data and Key Metrics Changes - MedTech segment revenue was $28 million, an increase of 8.7% year-over-year, while Med Device revenue was $39.5 million, a 3.6% increase [20] - Auryon revenue grew 24.9% to $13.7 million, while AlphaVac revenue increased by over 21% [20][21] - NanoKnife revenue declined by 6.9% to approximately $5.1 million due to a tough year-over-year comparison [13][22] Market Data and Key Metrics Changes - The U.S. Med Device business increased by 2.1% year-over-year, while international business faced challenges due to timing of orders [16][20] - The MedTech segment now comprises 41.4% of total revenue, up from 38.5% a year ago [20] Company Strategy and Development Direction - The company is focused on increasing penetration in the hospital market for Auryon and expanding its geographic reach in Europe [28][29] - Continued investment in clinical data and product enhancements for AlphaVac is planned to drive adoption [30] - The transition to outsourced manufacturing is expected to generate approximately $15 million in annualized savings by FY 2027 [17][40] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities within the MedTech segment, with a total addressable market now estimated at $10 billion [28] - The company remains on track to achieve previously issued guidance for FY 2025, expecting revenue growth of 4.2% to 6.4% [26][27] Other Important Information - The company has zero debt and had $55 million in cash and cash equivalents as of August 31, 2024 [25] - A stock repurchase program was approved, allowing for purchases of up to $15 million of outstanding common shares [25][26] Q&A Session Summary Question: Can you provide further details on the AlphaVac PE launch ramp? - Management reported positive feedback from physicians regarding AlphaVac's design and efficiency, with ongoing measurement of new customer interactions [32][33] Question: What initiatives are being targeted for the Auryon hospital market? - The company is shifting focus to hospital customers, leveraging existing familiarity with Auryon from outpatient settings [36][38] Question: What are the expected savings from the manufacturing transition? - The transition is on track, with significant savings anticipated at the end of the program, expected to total $15 million [39][40] Question: What is the timeline for NanoKnife's CPT pathway? - The reimbursement process is complex, and while timelines are uncertain, the company is parallel-pathing the FDA and reimbursement processes [44][46] Question: What is the outlook for cash flow breakeven? - Management expects to reach cash flow positivity by the end of FY 2026, with Q1 being the highest cash utilization quarter [49][50]