AngioDynamics Stock Earnings Reports

Q1 Financial Performance

Total revenue was $67.5 million, a year-over-year increase of 1.1%.

• The MedTech segment achieved approximately 9% growth, primarily driven by strong sales of Auryon and AlphaVac.
• Adjusted EBITDA loss narrowed to $200,000, an improvement from $1.1 million in Q1 FY 2024.
• Adjusted net loss was $4.4 million, or a loss of $0.11 per share, improved from a loss of $6.2 million ($0.16 per share) year-over-year.

Growth Drivers

• Auryon: Revenue increased by 25% to $13.7 million. Recent CE mark approval opens access to the European market where a limited release has begun.
• AlphaVac: Showed strong growth with a 21% increase in revenue, bolstered by positive physician feedback and successful clinical data from the APEX trial.
• AngioVac: Stabilization reported with $5.8 million in revenue, showing sequential growth.
• NanoKnife: Revenue declined 6.9% due to tough comparisons, but adoption rates among urologists are encouraging.

Cost Management and Manufacturing Transition

• Transition to outsourced manufacturing is on track, with expected annual savings of approximately $15 million by FY 2027.
• Gross margins for the quarter were 54.4%, slightly below last year but ahead of expectations, driven by product mix shifting toward higher-margin MedTech products.

Cash Position

• Cash and cash equivalents stood at $55 million; however, the company used $18.3 million in operating cash during Q1.
• Stock repurchase program approved, with approximately $500,000 worth of stock purchased at an average price of $7.62.

Guidance for FY 2025

• Revenue guidance maintained in the range of $282 million to $288 million, indicating growth of 4.2% to 6.4% over FY 2024.
• Expected MedTech sales growth of 10% to 12%, and Med Device growth of 1% to 3%.
• Anticipated gross margin in the range of 52% to 53%, and adjusted EBITDA expected to show a loss of $2.5 million to breakeven.

Future Product Launches & Market Expansion

• Plans for further penetration into hospital markets for Auryon.
• AlphaVac to undergo ongoing commercial push and new enhancements scheduled for release.
• FDA approval expected for NanoKnife by the end of calendar 2024, with a pursuit for reimbursement clarity through CPT code applications.

Market Dynamics

• Anticipated disruptions in international orders have been noted but are expected to normalize as distributor relationships solidify.
• Management emphasizes strong feedback on current products and ongoing market demand.

Conclusion

AngioDynamics is showing solid revenue growth, driven by key products in its MedTech segment, while also improving its cash position and narrowing losses. The company is focused on strategic product launches and operational efficiencies that promise to enhance profitability in the coming quarters, making it a company to watch as it capitalizes on growth opportunities in the medical technology space.