AngioDynamics(US:ANGO)2026-01-06 14:00Financial Data and Key Metrics Changes - Revenue increased by 8.8% to $79.4 million, with Med Tech up 13% and Med Device up 5.6% [12][5] - Adjusted EBITDA nearly doubled year-over-year to $5.9 million from $3.1 million [21] - Gross margin improved to 56.4%, a 170 basis point increase from the previous year [18] - Adjusted net loss reduced to $0.1 million, or an adjusted loss per share of $0.001, compared to a loss of $1.7 million or $0.04 per share last year [21] Business Line Data and Key Metrics Changes - Med Tech revenue was $35.7 million, a 13% increase, contributing 45% of total revenue [12][13] - Auryon platform revenue grew 18.6% to $16.3 million, marking 18 consecutive quarters of double-digit growth [13][14] - Mechanical thrombectomy revenue increased by 3.9% to $11 million, with AlphaVac growing 40.2% to $3.5 million, while AngioVac revenue decreased by 7.5% to $7.5 million [14][15] - NanoKnife revenue rose 22.2% to $7.3 million, driven by prostate procedures [16] Market Data and Key Metrics Changes - International sales for Auryon are beginning to contribute following CE Mark approval, with expectations for growth in the atherectomy market [6][44] - The company is targeting expansion into coronary applications, although significant R&D spending is not expected this year [46] Company Strategy and Development Direction - The company is focused on increasing penetration in hospitals and expanding its addressable market through various studies and regulatory approvals [6][8] - The leadership transition is underway, with the current CEO announcing retirement plans, which may impact strategic direction [26][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to balance revenue growth with profitability, raising full-year guidance for revenue and adjusted EBITDA [5][23] - The company anticipates continued growth in Med Tech and a slight increase in Med Device sales, with gross margin expected to remain stable [24][23] Other Important Information - The company received favorable court rulings regarding patent litigation, eliminating potential financial liabilities [25] - The transition to a distribution model in France is expected to enhance international sales and market presence [16] Q&A Session Summary Question: Comments on gross margin expectations - Management noted strong gross margin performance driven by positive pricing and product mix, but structural underabsorption is expected in the second half due to manufacturing transitions [31][33] Question: Insights on mechanical thrombectomy performance - Management highlighted strong growth in AlphaVac and expressed confidence in AngioVac's future growth despite a tough year-over-year comparison [34][35] Question: Update on prostate procedures and CPT code changes - Management is optimistic about the impact of the new CPT code on adoption rates, particularly in the Medicare market, and noted strong capital sales related to this [40][41] Question: Adjusted EBITDA expectations for the third quarter - Management expects positive EBITDA in the third quarter but not as robust as the first half due to planned investments [42] Question: International sales expectations for Auryon - Management is pleased with the uptake of Auryon internationally and anticipates gradual growth in sales as awareness increases [44]