ANGIODYNAMICS INC Q2 FY2025 earnings call

MedTech Business - Aireon continued sustained growth at ~22% year-over-year, with increased penetration in hospital customers. - Mechanical thrombectomy (AlphaVac and AngioVac) combined grew ~46% year-over-year, with AlphaVac seeing 33%+ growth for third consecutive quarter, driven by FDA and CE clearances. - NanoKnife received expanded FDA indication for prostate tissue ablation, new CPT code, and PRESERVE study results showing strong safety and efficacy for prostate cancer treatment. ### Manufacturing - Continued to optimize outsourced manufacturing, keeping part of Queensbury facility open for resilient supply chain, expecting ~$15M annualized savings by Fiscal 2027. ### Profitability - Reported adjusted EBITDA of $3.1 million and operating cash flow of $2.5 million, expecting full-year positive adjusted EBITDA, demonstrating progress towards sustained profitability.

Total worldwide revenue for the second quarter was $73 million, up 9% year-over-year. MedTech segment revenue was $31.6 million, a 25% year-over-year increase, making up 43.2% of total revenue. Med device revenue was $41.5 million, flat compared to the prior year, with US med device business up 1.6%. Aireon platform contributed $13.7 million in revenue, growing 21.8%. Mechanical thrombectomy revenue (AlphaVac and AngioVac) increased 46.2%, with AlphaVac up 33.3% and AngioVac up 50.7%. NanoKnife revenue was $6 million, up 4.9%.

Fiscal 2025 - Revenue expected in range of $282M to $288M (4.2%-6.4% growth over Fiscal 2024). - MedTech net sales expected to grow 12%-15% (up from prior 10%-12%), med device net sales flat (previously 1%-3%). - Gross margin expected 52%-53%. - Adjusted EBITDA expected $1M to $3M (up from prior loss $2.5M to zero). - Adjusted loss per share expected $0.34 to $0.38 (improvement from prior $0.38 to $0.42).

• Manufacturing transition may have short-term overhead impacts. - Reimbursement and regulatory challenges in new markets (e.g., Europe for Aireon). - Competition in the MedTech space could impact market share.

Q: John Young asked about thrombectomy progress, Aireon's hospital opportunity, and European reimbursement for Aireon.

A: Jim Clemmer and Steve Trowbridge discussed synergies in selling AngioVac and AlphaVac, Aireon's focus on hospital customers with ~35% of revenue from hospitals, and that European reimbursement dynamics are complex but their teams are prepared.

Q: Steve Lichtman inquired about mechanical thrombectomy growth, Aireon's potential indications, and gross margins.

A: Jim Clemmer and Steve Trowbridge talked about mechanical thrombectomy portfolio growth, Aireon's potential expansion into ileofemoral DVT and coronary spaces, and gross margin impacts from manufacturing transfer and product mix shift.

Q: Yi Chen asked about Aireon's EU feedback and AlphaVac trial status in EU.

A: Jim Clemmer mentioned positive EU feedback from Aireon's symposiums, and Steve Trowbridge stated RECOVER AV trial in EU is ongoing and focused on data generation for AlphaVac.