AngioDynamics(US:ANGO)2026-01-06 14:02Financial 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% [5][14] - Adjusted EBITDA nearly doubled year-over-year, reaching $5.9 million compared to $3.1 million in the previous year [22] - Gross margin improved to 56.4%, a 170 basis point increase from the previous year [18][19] - Adjusted net loss reduced to $0.1 million, or an adjusted loss per share of $0.001, compared to an adjusted net loss of $1.7 million, or an adjusted loss per share of $0.04 in the prior year [22] Business Line Data and Key Metrics Changes - Med Tech revenue was $35.7 million, a 13% increase, contributing 45% of total revenue compared to 43% a year ago [14] - Auryon platform revenue grew 18.6% to $16.3 million, marking 18 consecutive quarters of double-digit growth [14][15] - Mechanical thrombectomy revenue increased by 3.9% to $11 million, with AlphaVac revenue up 40.2% to $3.5 million, while AngioVac revenue decreased by 7.5% to $7.5 million [15][16] - NanoKnife revenue rose 22.2% to $7.3 million, driven by increased demand for prostate cancer procedures [17] Market Data and Key Metrics Changes - International sales for Auryon are expected to grow following CE mark approval, with ongoing efforts to increase market penetration [6][58] - The company is targeting expansion into coronary applications, although significant R&D spending is not anticipated in the current fiscal year [59] Company Strategy and Development Direction - The company is focused on increasing the percentage of revenue from higher growth, higher margin Med Tech segments [14] - Strategic initiatives include expanding the addressable market for Auryon and enhancing the mechanical thrombectomy portfolio through regulatory approvals [6][8] - The company aims to balance current operational efficiency with investments for long-term growth [11][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to generate cash flow and maintain profitability while investing in growth initiatives [11][23] - The company raised its full-year guidance for revenue and adjusted EBITDA based on strong second-quarter performance [24][25] - Management highlighted the importance of regulatory milestones in enhancing competitive positioning and expanding clinical applications [8][9] Other Important Information - The company announced a leadership transition, with the current CEO planning to retire after a decade, and a search for a new CEO is underway [28][29] - A favorable court ruling regarding patent litigation with C.R. Bard eliminates a potential $3 million payment, concluding a long-standing legal matter [26] Q&A Session Summary Question: Comments on gross margin expectations - Management noted strong gross margin performance driven by positive pricing and a favorable product mix, but anticipated structural underabsorption in the second half due to manufacturing transitions [34][36] Question: Insights on mechanical thrombectomy performance - Management expressed optimism about AlphaVac's growth and acknowledged AngioVac's challenging year-over-year comparison, but remained confident in its long-term potential [39][40] Question: Update on prostate procedures and CPT code changes - Management indicated that it is too early to assess the impact of the new CPT code on insurer responses but sees it as a potential catalyst for growth [49] Question: Adjusted EBITDA expectations for the third quarter - Management expects positive adjusted EBITDA in the third quarter, though it may not be as robust as the first half due to planned investments [53]