ANGIODYNAMICS INC Q1 FY2025 earnings call

• Kicked off FY 2025 with solid Q1, total revenue $67.5M, +1% y-o-y. - MedTech segment grew ~9%, led by Auryon (+20%+) and AlphaVac (+20%+). - Made progress towards profitability, adjusted EBITDA loss $200k. - Auryon had CE mark approval, starting limited market release in EU. - AlphaVac saw strong interest post-FDA clearance and CE marking, RECOVER-AV trial launched in EU. - NanoKnife had prostate case growth, PRESERVE study data supported efficacy, FDA submission filed. - Manufacturing transition to outsourced manufacturing tracking as expected, aiming for ~$15M annualized savings by FY 2027.

Total worldwide revenue was $67.5 million, up ~1% y-o-y. MedTech segment: $28 million, up 8.7% y-o-y. Auryon contributed $13.7 million, up 24.9%. AlphaVac was a strong contributor. Mechanical Thrombectomy (includes AlphaVac and AngioVac) had mixed results; AngioVac revenue up 21.1% y-o-y. NanoKnife had disposable revenue down 4.6% and capital sales down 15%. Med Device segment: Revenue down ~4%, U.S. Med Device up 2.1%, international down due to order timing and microwave product softness. MedTech segment contributed 41.4% of total revenue, up from 38.5% y-o-y.

• Reiterates revenue range $282M-$288M (+4.2%-6.4% y-o-y). - MedTech net sales to grow 10%-12%, Med Device net sales 1%-3%. - Gross margin 52%-53%. - Adjusted EBITDA loss $2.5M to zero. - Adjusted loss per share $0.38-$0.42.

• Choppiness in international orders due to new distributor timings. - Short-term impact on gross margin from manufacturing transition as overhead costs are still being adjusted while transitioning from discontinued product lines.

Q: On AlphaVac PE, any color on launch ramp like number of physicians trained and accounts using it?

A: Good feedback on design elements (intuitive handle, wireless option, Vortex funnel tip), measuring new customer interactions and take-ups, pleased with results.

Q: On Auryon Hospital market opportunity, details on initiatives?

A: Shift focus to hospital setting post-COVID, leveraging momentum from Q1, targeting increased penetration, new customer growth from Auryon XL launch, CE mark in EU for commercialization.

Q: On manufacturing transition, potential savings and gross margin ramp?

A: Manufacturing transfer on plan, gross margin benefit comes at end of program, mixed shift from MedTech higher margin products offset by overhead costs during transition.

Q: On NanoKnife CPT pathway, timelines and pricing?

A: Waiting on CPT panel decision in Oct, parallel path with FDA clearance and reimbursement, plan to drive adoption through coverage, coding, and awareness, no specific pricing changes mentioned yet.

Q: On cash burn and cash flow breakeven?

A: Q1 cash use in line with expectations (incentive comp, insurance, royalty payments), expect cash to increase in Q2-Q4, target cash flow positivity by FY 2026.

Q: On Med Device OUS order timing, revenue push to F Q2?

A: International orders have choppiness with new distributors, Q2 expected to have different comps, some revenue vendors pushed to F Q2.

Q: On Auryon Europe launch trajectory and sales similarity to U.S.?

A: CE mark received, starting limited market release in EU, European PAD market less mature but encouraged by demand, updates expected on progress.

Q: On international order timing recurrence?

A: Choppiness expected with new distributors, but expects to smooth out over time as business grows