AngioDynamics(ANGO)2023-10-04 14:35Financial Data and Key Metrics Changes - Revenue for Q1 FY '24 was $78 million, representing a year-over-year growth of approximately 6%, driven by a 13% increase in the MedTech segment [8][20] - Adjusted pro forma EPS was a loss of $0.13, in line with expectations, excluding approximately $700,000 in sales from divested businesses [8][26] - Gross margin for Q1 FY '24 was 50.8%, a decrease of 20 basis points compared to the previous year [23] Business Line Data and Key Metrics Changes - MedTech revenue was $25.9 million, a 13.3% year-over-year increase, while Med Device revenue was $52.1 million, growing 2.3% compared to the first quarter of FY '23 [20] - NanoKnife business grew approximately 36% during the first quarter, with sales of probes growing 35% [11] - Mechanical thrombectomy business, including AngioVac and AlphaVac, declined roughly 6% year-over-year, with AngioVac revenue at $6.3 million, down 7.7% from the prior year [13][21] Market Data and Key Metrics Changes - International businesses grew 26% year-over-year, with strong growth from both MedTech and Med Device segments [12] - U.S. disposable growth for NanoKnife was 28%, while international markets saw a 44% growth [35] Company Strategy and Development Direction - The company aims to address treatment gaps in high-growth markets, focusing on cardiovascular disease and cancer [9] - Plans to submit data to the FDA in Q3 2024 to support an expanded indication for NanoKnife to treat prostate tissue [10] - The company is pursuing plans to gain an indication for Auryon to treat coronary artery disease [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of NanoKnife and the mechanical thrombectomy business, highlighting positive physician feedback [11][38] - The company anticipates FY '24 revenue in the range of $328 million to $333 million, with expected gross margins of 50% to 52% [29][30] Other Important Information - The company revised its annual equity grant practice for non-employee directors, impacting adjusted loss per share for the quarter [26] - Cash and cash equivalents at the end of Q1 FY '24 were $57.6 million, up from $44.6 million at the end of FY '23 [28] Q&A Session Summary Question: Can you break out NanoKnife growth U.S. versus internationally? - U.S. disposable growth was 28%, while international growth was about 44% [35] Question: What is the outlook for AlphaVac growth? - AlphaVac is expected to improve with ongoing clinical studies and design enhancements planned for next year [38] Question: Can you provide an update on Auryon installations? - The company finished the quarter with approximately 415 total lasers in the field, with a focus on driving utilization rather than new system placements [41] Question: What is the sustainability of NanoKnife performance internationally? - The company believes the strong growth is sustainable, supported by training and clinical support for partners [44] Question: How is the company balancing Med Tech growth with cash generation from Med Device? - The company aims to grow its Med Tech segment while maintaining stability from the Med Device segment, which currently provides cash flow [49]