Earnings call transcript Q3 2023

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Operator

Good morning, and welcome to the AngioDynamics Fiscal Year 2023 Third Quarter Earnings Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference call is being recorded. The news release detailing our fiscal 2023 third quarter results crossed the wire earlier this morning and is available on the company's website. the also section live at approximately of the replay is at the www.angiodynamics.com, X call available webcast Investors be end the the of call. hour conference after being same of over broadcast Internet and at the This the will today's site call company's website

specific about projections course conference call, encourages statements may that the actual the or Before without we to revenue, Management future the forward-looking may like filings events events, this would expected the the statements caution results materially listeners future will trends and from to you of the continue. identify company's in limitation, for make or past earnings begin, and and I those factors to that review forward-looking regarding during as statements. gross XX-Q described the year fiscal adjusted company's cause company including, that well SEC, including margins Forms differ as XXXX with which XX-K,

addition should or underlying consider a as accordance company's GAAP. financial company goals the in time. financial uses investors establish measures analyzing also with assist to superior business during measures performance reporting in trends to measures these in this for, over to, as these the call. Investors operational Management not may The non-GAAP certain review believes substitute measures that discuss measures in and these operational and non-GAAP will prepared

results in morning's performance offering the financial Investors this The under release conference package Presentations. conjunction insight company's Events results the website read company's during call. in section should the press slide A company's on the with be operating discussed presentation also the and financial is into of available and

turn the Clemmer, over Officer. I'd Clemmer? Mr. AngioDynamics' President now Jim and Chief Executive like to to call

Jim Clemmer

thank and everyone, morning, earnings call. AngioDynamics' third us Good for for you Darryl. you, fiscal XXXX joining quarter Thank

of our call who on performance. provide third AngioDynamics' analysis is Executive Officer, quarter Financial Steve will President a and me Chief detailed financial Trowbridge, today's Joining Vice

our year-over-year, results. the ended of quarter We year. Tech XX% with of $XX.X third the by X% revenue of led Med to about of growth over last our Turning growth segment quarter million, representing from

make Thrombectomy growth platforms as to AlphaVac NanoKnife towards system. goals as including our our from continue progress during our solid and recently quarter, well the We launched strategic

Year-to-date, X.X%. XX% with our grown our net sales X%, Med our segment have segment Device Tech growing growing Med and

now XX-month plan are that launched into We ahead at we and progressing our targets. of months our of July in are we revenue XX 'XX, or

and soft approximately in of Our increasing Med its drove spot continued AlphaVac AngioVac QX. sequentially was led year in in XX% the offsetting strength Auryon the the over quarter, Auryon, the growing segment Tech in a portfolio. Med growth Tech prior the over by NanoKnife. performance saw the and quarter, rest the impressive quarter, we

we more since target Auryon. date, To remain and we achieve have on launch, patients than track full to year for XX,XXX treated our

mechanical Our and AlphaVac X.X% AngioVac quarter revenue $X AlphaVac million. quarter. the increased for during the thrombectomy was business comprising

that and is performance. to AlphaVac expectations being of expectations fell full short quarter said, remain revenue the track launch to With our mechanical AngioVac meet according to growth for plan, year. the progressing Our due business our thrombectomy we during on our

and the sales quarter AngioVac are in X% XX% down declined year-to-date.

support nature requiring of the and an last the stated of quarter, specialties, AngioVac staffing bed. sensitive we perfusionists challenges to ICU As complex procedure, usually is including the most to our products due numerous hospital requiring

not the AngioVac sole is softness. this However, of driver

played Our well. a execution as softness has in role

market we customer with strategy the XXXX. first the head improved quarter sales our the commercial into fiscal force execution as we as fourth focused enhancing on our fiscal optimizing of our the feedback bag. and last are quarter, own well as approach AlphaVac from implementing effective well same and selling As and of sales most targeting and are we on includes training discussed AngioVac which of quarter our the we in observations, as as messaging customer year selling improving our process, and goal Based

come new that the we growing platform, our them. launch integration with am pains tools to of confident really commercial I any team and and These have place in that to talented resolve are support the

While impact thrombectomy for reducing margin we about bullish of midterm expectations AngioVac business. and our outlook. are our EPS and softness, flows remain also revenue very We result long-term our prospects this XXXX mechanical fiscal as a the which down

just in of one is early mechanical our development. platform, component is still thrombectomy which AngioVac of the stages

data support with customers U.S. working generate also our toward while indications market. beyond We to international expansion current to closely continue future to additional work our

NanoKnife to both XX QX domestically disposable over cases believe strength performance quarter, during the in illustration our -- patient platform illustration more year. positive a during increase platform's saw of oncology than that with physicians platform NanoKnife ease prostate grew segment. of sales of and completed an strong is XX% use, cases quarter, the XXX uptick cases with our of an Turning with We of last the and continued outcomes. over NanoKnife, continued combined internationally. approximately that the We

the made at a the procedure progress versus is currently roughly of in while quality ahead of the this Day that we takes Investor Doctors XX treatments, NanoKnife I'm our XXXX, focal plan over with being safe has platform. you patients minutes with other thrilled for for and trending and life. shared our team that X appreciate hours X-year preserving NanoKnife with

supply labor year Device grew Device Med segment market disruptions. associated our ago headwinds declined quarter, segment when the the X% period and a due to Med the with chain compared During with tight

have diligently through deliberately working teams and way done environment. this Our their great job a

improvements and of and respect manufacturing the freight to a availability seen our number navigate specifically we of with macro of labor continue in supply have areas, pressures. While teams chain costs, inflationary

had approximately from markets our a quarter, and Device International expect backwarded growing expected were strong which to of our we solid quarter, fourth which year-over-year, million by contributions business. During -- components driven on Med had impacted our revenue, during NanoKnife we XX% third that $X quarter. we clear again

We expect growth contributor international be 'XX. a business in our to positive FY

our sales continues Auryon data team And Generating scientific platform our to role expand and regulatory international to and launch addressable plays a year receive our AlphaVac XXXX. to fiscal approvals to to as technologies our Tech global internationally presence, expand to clinical larger, bring our work continues strengthen key team higher-margin develop faster-growing, and Med during to and expect ability products in markets, markets. our effectively we hard our network our into

Our execute teams including our our trials, IDE studies. clinical continue X on to

study NanoKnife, AlphaVac PRESERVE cancer treatment Our study the our study APEX our for treatment of pulmonary for the pancreatic and for NanoKnife. prostate cancer DIRECT with with our with of the of FXX treatment embolism

be PRESERVE We continue of very quarter. to the pace enrollment pleased in during with the the study

Oncology's risk Consortium, provide life this quality Urologic can that to of with study disease remain Clinical be finish In the favorable partnership the with men this NanoKnife June. study an of effective around outcomes. focal and demonstrate to for Society intermediate Trial aims track in on treatment of end We option enrollment

the of reminder, pace have by XX alone. million believe we We the our ease to alone. pleased the is APEX We of by in addressable of will more close receiving sites PE, as estimate prove At With and U.S. calendar enrollment, while the opportunity market enrollment, We market unique an feedback the a a the XXXX. with are AlphaVac $X.X treating billion has the our estimate addressed prostate study that year for that early are study. activated in products are our particularly exceed in providing we in effectively This currently about from respect focal we we follow-up. to may of a encouraged use to APEX be with can PERT and follow-up. can a study X-year we be technology unlocking current partnership APEX that study, $XXX the in enrollment physicians. the treatment study XX-day that has NanoKnife U.S. pace Consortium And treat the that large expect cancer than potential total our

regulatory bolster adoption body and scientific clinical patient studies that access. of and the drives evidence These will worldwide clearances

XXXX. tissue NanoKnife look with details indication the to for We quarters. are approval the PE and both calendar over indication the providing United by you for AlphaVac for additional of We targeting coming regulatory the in end States the forward prostate

risk We'd single-blind for quality study randomized, prostate the cancer. NanoKnife la of use men Journal de with few a in of the published of a highlight IRE Professor prostate localized Urology describing multicenter, to safety recently in profile recent cancer. that and publications the ablation low-to-intermediate after Rosette like the of at [indiscernible] evaluates life

quality published XXX or We CROES. finding summary, IRE, it Office safety free significant article men. published Endourological is shows very favorable X profile conducted work Society, in of of also patients The months. on Research Clinical same control of data article JAMA at than life set the the a by the believe from focuses oncological in and after This Surgery. were XX% clinically cancer was more In

In also addition, is of treatment the Phillip that the in International, avoidance for patients. In XXX of senior Journal X-year at Stricker focal Professor at published long-term prostate conclude outcomes with this XX% in the author, of primary localized British a the years. cancer of radical median a Urology option IRE study, in X authors good IRE patients treatment

this products. studies support and great to our continue from results proud are work of clinical the We anticipate

of hard team here we high-growth, a becoming work I'd recognize profitable the Tech the to goals our over turning for Before company. Steve, call like our to continued AngioDynamics as Med pursue at

I in that of we the care. build made As my our progress mentioned existing life-saving initiatives on as continue improves team upon has to remarks, incredible technology standard the

Vice Chief detail. Financial the turn Executive review me let in that, over With and quarter to Trowbridge, Officer, President, Steve our to call more the

Steve Trowbridge

Thanks, Jim. morning, everyone. Good

key performance like quarterly while the begin, a number NanoKnife have the points driven growth year-over-year $XX.X summarizing there softer well And than as strong business. in X.X% from a we would in everyone on Device and Med I quarter website the our Auryon million, quarter. Revenue Relations by were presentation increased quarter during from our I'd strong items as our a to Before had of to liked, to we Investor results. direct the

while Tech year-over-year. revenue XX.X% of was Med revenue increase X.X% million, year-over-year $XX.X $XX.X a was increase, Device million, an Med

of quarter, the year-over-year, XX% X.X% Year-to-date, growth Med revenue driven segment total Device 'XX comprised our revenue increased Tech by and compared revenue Tech to our of For revenue FY Med X.X%. segment total XX.X% Med year segment of a XX% growth ago. of

platform Auryon the contributed year. last compared million revenue to during Our quarter, a XX.X% third in increase $XX.X

and confident in continue of to full revenue achieve Auryon $XX pleased the the with $XX be of to ability range year in the We remain to million. growth our platform million

beyond, supporting As XXXX the a are continued head of fiscal of and this performance number there into business. positive we indicators

hospitals OBLs. an from seeing shift First, we're accelerated towards

outpacing procedures, now Second, Auryon. the seeing knee which we're procedures above consistent in for are strength below-the-knee

finally, And Third, expect disposables, we our to which time enhancements during our drive we for have margins completed improved supply XXXX. markets international fiscal chain regulatory will clearance over enter

thrombectomy quarter AngioVac for Mechanical and which usability, to very AlphaVac sales, to of the for AlphaVac $X products, pleased third for and the We FY revenue revenue, Year-to-date the the AlphaVac on is FXX continues including full includes $X was respect the very and be to million generate revenue remain to of third features with performance X.X% remain with quarter feedback $X of and we our million. 'XX. FXX Physician million. year over AlphaVac outcomes. million, versions. positive $X.X revenue track AlphaVac fiscal increased

million the XX.X% the of over in a quarter, AngioVac $X.X revenue decline representing year. prior was

anticipate decline AngioVac of the XX%. growth grow XXXX, XX% a XX% AlphaVac address to $XX.X action it. mechanical quarter, to expectation X.X%. AngioVac below revenue is discussed, prior to of led now Year-to-date, Jim XX% challenges faced we've during our thrombectomy to platform fiscal We in by in million, taken our As

year-over-year. of will long a this Despite to we be platform. thrombectomy our disposable XX.X%. medium NanoKnife grew growth in continue disposables this the investments and of NanoKnife sales to increased and contributor revenue XX.X% strategy remain that we'll change, significant over mechanical prioritize confident term, Year-to-date,

Jim As of the clinical with very sales as we're as pace growth our mentioned, enrollment pleased NanoKnife well of platform.

chain in was products, stemming our offsetting the comp Our positively the in last a dialysis the third challenging growth year's and a quarter. Med during we by third our quarter. year-over-year, disruptions due X.X% Device EVLT microwave, less decline grew the during quarter with labor market angiographic ports, from tight supply strength business headwinds in segment impacted to and The faced

supply capacity are chain continued we progress with driving in team's strategies. operational and pleased Nonetheless, our

the $X.X our end Device grown our at Med segment stood backlog third our X.X%. of quarter, As million. has Year-to-date, of

down Moving the statement. income

third quarter the XXX compared and Our gross XX.X% for decrease ago margin period. was the FY of to points 'XX basis of year a

for benefit and a basis As positively third mix from the increased of the point Gross 'XX fiscal a XXX quarter were impacted roughly reminder, in sales XXX CARES gross Act. basis production the points. by margin margins third XXXX fiscal quarter of included roughly of

of including points inflation roughly freight XXX placements. offset raw basis was and of basis hardware basis inflationary points by benefit points of of basis inflation, increased XXX this depreciation XX labor from However, points XX costs material pressures, and

and I depreciation to those installed costs margin XXX AngioVac year In Med mentioned the AngioVac was addition, compared segment drivers period. decrease by lower a Tech ago offset period. by the from And XXX Device compared sales. that our the was our basis XX.X%, ago was Device were basis benefit base. Gross for decrease year for sales growing segment Med margin lower Auryon to the the from mix Gross driven previously. of points of was for year-over-year The Med point a XX.X%, had decrease

quarter or a million X.X% our was of of of the and continue We'll 'XX platforms, ago. our Med key compared year product sales Our in technology third driving research FY R&D, focused investment portfolio. X.X% to during development Tech for development $X.X the million including our disciplined spend sales and on $X.X expense or clinical

FY to by annualization of a The compared spending X% for XX% or XX.X% XX.X% target For was $XX.X R&D million, ago. of investments the FY year-over-year the spend 'XX sales Auryon. representing sales increase in of expense quarter to SG&A sales SG&A team, million driven third of in anticipate our we of particularly $XX.X was primarily to year 'XX, sales.

to anticipate For FY to revenue. XX% XX% SG&A 'XX, of to we spend target continue

an of of year. $X.X or was quarter third million 'XX earnings $X quarter third to per million of net of per $X.XX loss the FY for loss share adjusted compared or net adjusted adjusted income $X.XX last in share Our the of adjusted

of adjusted were roughly Our as directly $XXX,XXX excess the quarter our inflation this impacted in of expectations. as AngioVac by shortfall well earnings revenue

FY as which Adjusted the of in quarter the share expenses EBITDA included the certain employee benefit a adjusted third retention $X.X in million the part million of 'XX under the earnings CARES addition, million third reminder, the reimbursement million FY last our of related of CARES In $X.X as per was year a quarter quarter share $X.X to per 'XX, $X.XX or credit to $X.X included Act. from Act. third the in the compared of

cash by $X.X increasing third $XXX,XXX. the of generated we During quarter, million cash operations from net

Turning FY 'XX to our outlook.

our a million of of range million. our $XXX loss guidance $XXX full $XXX share. $X.XX revising earnings to FY guidance million revising to to guidance of from We our to earnings $X.XX revenue are of 'XX $X.XX year $X.XX of our a We're to a of $XXX per to from guidance million per share loss prior prior adjusted range a of

by primarily secondarily our weaker-than-anticipated This the previously fueled by reduction higher guidance performance pressure inflationary in is and anticipated. AngioVac than

the of $X million our Year-to-date, inflation, which we've roughly over in was half guidance absorbed original for of contemplated year.

has On XX.X% gross As margin the year a to our XX%, XXXX this from did a and EBITDA expect X.X% to additional XX.X%. profitability. last down we said different company, this, We we're we're result would Year-to-date, expect that. fiscal million to or very grown XX% year. that of over July of range in drop revenue $XX.X just of we be XXXX, doing building and

EPS. to inflation has $X top. leading $X.XX total amount significant a exceeded inflation million, quarters, of of off costs However, three costs taken approximately inflationary adjusted of the excess right Through has

year's depicted becoming external achieving prioritizing highlighting our a dedication their EBITDA continue wrap medical transformation year-over-year for to Act while platform-focused I'll AngioDynamics this, are growth by for of my to pursue entire in We'll spite our as EPS manage up our In when company. CARES investments drive and our goals in persistence up accounting costs environment last adjusted ongoing towards the to impact. we technology the three-year plan. and comments team the

With that, Jim. back I'll to turn it

Jim Clemmer

we with Thanks, and long-term, we areas profitable place our say, that many identified plans have things company, in that Steve. like pleased in the to becoming that high-growth do I'd can AngioDynamics making closing, for and a also we're In while doing of we're better. progress I'm put to

and customers, will our to investors. to So to We value bring employees want turn our our our focus areas. those

that of time. that we constituencies We We'll hard those three to do plan. over a know each have for great work

to you turn back the Thank call Darryl, for I'll you. listening today.

Operator

[Operator Markets. proceed from Instructions] Matthew line questions Mishan KeyBanc questions. with Our first come with of Capital the your Please

Brett Fishbin

on This for is Brett Matt. Fishbin today

off bit start macro to little a wanted Just the some on broader of trends.

quarters, have Just them inflation, given pieces a moving just several wondering some how kind incrementally themes at staffing moving for a constraints lot the today January you're of of free and been discussed costs, what those like looking then chain changed little versus around supply dynamics bit like forward? and and of

Jim Clemmer

Jim. it's Brett,

couple of from It's We getting in the environment we it macro or So regional a from customer getting actually approach better. speak in are months angle, that better. a hospital to the our We X that think challenges think ago. their X We it's customers. spot things. better when was is staffing side than our think

some we to that. all don't So part attention challenge put mentioned, due the but of AngioVac we've that from again, there. dynamics is the The we want to seen of that,

we also we execute We can know we better, there. and do and how will

our talked Brett, employee seeing stabilization supply about we're internal which more a our we bit, the it, still side. seen costs And is But chain terrific. supply freight from abate we chain some have in disruptions we've partners. from Also,

And we're seeing raw not also the materials inflation getting there. we're the still Sometimes hit order, we all parts order. we

still So what normal. not back we things but they're are to call better,

Brett Fishbin

bit a Mechanical to Thrombectomy. over shifting just then And

the some selling could processes. wondering also expand if you Just on bit new a of

involved that's sequential AngioVac just how and growth which And And some on in well? here? limiting Could the are into be as environment, would thinking dynamics? you the in XQ procedural about from some see then early thoughts current we to staffing this FY the of like current You do AngioVac. for is maybe all also challenging mentioned given it procedure, 'XX

Jim Clemmer

questions. Good Sure.

a of things. So couple

we've sales June we'd back love this we've the bag a new from to indication great we Remember, also X, running last integrated So in combined as devices taken going how our for We're our but enter are, to get bag because our to we're also learning how with But customers, very AlphaVac this that being we're our look a at year, with FXX. products aligned in putting market. study them AngioVac. the APEX how fiscal learning PE sell bag. AlphaVac cautious the

we bag don't we'd point. indications Over have only Auryon Brett. to small full like limited we've looking We have for again, we're at have for launch thrombectomy over time. the time, this And our as identified, to vessel

we're the middle customers, What program. So our what and do we and don't thrombectomy we're can mechanical of making whole is we in kind identifying better internal of better. we can what do sure our innings to how that do do the our messaging we clearly

and people We we customers train own also can better. believe our our

of and off We sequentially. we a customers. have in properly. watch great grow our to customers and our clinical work force a to We'll team the together trained start can make We're quarter. our AngioVac with field actually And get this sales resources AlphaVac that we'll sure good

a expect today. So that quarter to to uptick we program think we current and back it's we as performance we is put the we're sit place in already a positive working -- seeing at where sign as good look be our we sign in the

Brett Fishbin

question me. last then And from

that approvals time in investors AlphaVac. opportunities the come the Auryon for any in should ones be particular on possible and you that some you there quarters focusing earlier as mentioned markets bigger line? think international could or coming Just Are

Jim Clemmer

we we questions. as now have And Europe. We Western Thanks, today, a actually Brett. think actually in great in Good speak Rome. we're right holding team

world-renowned AngioDynamics are of some use and scientific professors products to is clinicians leaders products. outcomes our they've speak they third trained our who Our and be that symposium with XXX opinion in attending today over hosting symposium that and key clinical the foreseen when our to

opportunity we lot of to. on have going these first. a we're European to going we're a Western and products there's lot So to need for of focus growth that unique where are that our align

in products as starting with important will Brett, to they So also a calendar because the get can which we AlphaVac years make Asia-Pacific well. drivers growth next be for right we sure Auryon, and indications as then America, the come. see, in launched, indications year, We'll then first we'll Middle Latin company the in Canada, are global have two East for think

Operator

Our next of the come Oppenheimer. Lichtman with to Steven questions line

Steven Lichtman

ask I runway disposable little How strong NanoKnife. from you about ongoing and wanted indication enrollment before you get see complete bit that a for a guys expansion had sales after the to effect We've trial studies profile of continuing and much do

Jim Clemmer

So good question.

XX% back we that well. fiscal last that. year, look you at and disposable overachieving guided This growth XX% we again, if and we're guided So disposable growth we about year, about overachieved as

the about patients NanoKnife -- just the halo we special to think People it delicate organs now PRESERVE. works, getting cancer and treat from effect pancreatic on very So it's how due are more of some in DIRECT and the is awareness are so can a study unique manner. it's why

more interest So that treat there's data be think train physicians, generated, to when them awareness I sources getting how they seeing prove published where and more inbound can the choose interest committed they properly, these we're from to them to while there's to able we're treat let areas. want we're think I generated, and more

a identified, complete for risk good also we on XX study when we million and chance as that about we'll believe months in a open up U.S. we patients, enrollment the treatment. We later give focal preserve, market a the them those $XXX know, complete intermediate final for

trying grow we we can do product and together, customer think there a up it's a factors. So approvals we can the and regulatory rate with patient few you we at continue of this special indication that reimbursement those is grow align awareness. and when end indication to the get do. then we of next business more have that combination what a this we'll until year, we'll guidance going be to to think We're in of give about really And We market.

Steven Lichtman

question Auryon. other my was then about And

that is it pretty you're feedback and and you you that is But You to want this say guys where process you Can unfolding? know field. docs Have about you got pressuring little bit development opportunity. followed that going new the that a us to be from definitely receivable wished point let this said through? can they in how have

Jim Clemmer

Yes.

I please me So in your wrong, or stop again. let question If take it. chime me get a swing at

So we're XXXX that good we Again, of been great September physician there's hearing rolling we the product. field, competitors of a systems and the out lot received launched And we feedback. really Auryon in from They're feedback pandemic the effective hit, when in date knew this And our we different. are But has out there. tremendous. is

year. PAD looking the we're give we Auryon atherectomy. a this access also what to to tools, catheters launched going coating point, this year, physicians, platform So done our we physicians told with launch use products, in that a to Later use calendar a anatomy. We're do way radio in is new a our to new already we've grow we first atherectomy the And this our way technology. new and hydrophilic

it. So we'll not continue behind also the the with just to products science we're but working develop

Auryon that driven efficacy we a and this You've you science see of wall seen for XXXX unique believe version, vessel safety physicians Auryon give we some the vessel how platform during anatomy. will physicians utilizing with energy as complement the thrombectomy thrombectomy. course have of calendar small We're a mechanical committed, new will Auryon seen who mechanical elements believe also it within the and the that more believe our and the know, treats the and a we'll of power to to year in an treat the DVT, in manner a publications delivers of coming that year way by thrombectomy, end

Operator

come Jayson Bedford your of Raymond with question. the James. with next Our line proceed from Please questions

Jayson Bedford

Device the just a to margin of a Device on the guess headwinds, I dynamics, I up margin of the popped understand nature few start of more gross surprised quarter-on-quarter, Is what bit I'm meaning inflationary that on down side questions. year-over-year. was the in acute but Med Med the there of at down new anything margin. some gross Maybe gross kind some quarter?

Steve Trowbridge

Jayson, supply seeing this disruption is chain it. of has our been remarks, partners in some we're our his had prepared that That and some of Jim the suppliers. Steve. part component of mentioned from

quarter. were we QX. would the million $X to million that pushed get We They were the told that mentioned, do have revenue allowed come us of expect to about to out We get $X.X be As expecting those we were in of earlier components into in to quarter. scheduled there's were that going be about they out. in to

So in terms disruption. chain WIP of supply from some tied that the of was coming and up the

raw And the other material piece really is inflation. the

not about, device got our that talked just we've that As throughout there. specifically products the largest all the the in number And in of business purchaser we're for SKUs business, we've a are large different most of suppliers.

into the We're we really a probably stickier the not to line dealing next were that will the volume we're year in bit of to we enough at drive the summer which be there, benefits. some those And the same end time, the bit well. increases, as of so the and little we're at this found not a as the macro than with but middle price of extend finding little expecting year continues, environment in line, extensive

we that's thinking year. And next the we're to going we to -- as the build about expect going happen into

just So as driven out product door. that have a timing some turning into as the of big well and mix part them of getting those goods finished raw the components of material and

Jayson Bedford

the not here Is $X will you word, right that mentioned, expectation? is or here probably out the all loss was And but lost the fourth that that million pushed that million quarter. the $X benefit the

Steve Trowbridge

fourth to the expected clear We quarter. definitely

same that said, level. component be Now issues going that issues to expect vanish. the a -- managing completely be there supplier we may going at do it's while. to clear to be on supplier day-to-day as the are component yes, a not expect is we But our it those don't We're like into to we with team basis. dealing quarter. for And fourth But

Jayson Bedford

math million the $X little kind backlog, into talked but Is a on reduction the that $X about the here million it? of think $X added quarter, on you I math a just last the Is million. total. you over another from And it with in of

Steve Trowbridge

think about The timing right to way that is of the it. you're talking

So think stood although you QX, QX of mix the the were different. of that very of if to about the back was consistent where numbers quarter, the end end at order the from relatively the

quarters. is exactly And same the clearing the of end it the so way that the were supply into up we quarter. component past eating mix of over timing been kind end at it few at it the a And you on the of pace We had then means you that described with different the right. some

Jayson Bedford

just switching is, question AngioVac question it you that do guess, gears fewer have the number the same makes dynamic of technology? to for here using fewer the in have just do Maybe users you the the I users me sense. cases? in other quarter. Or for If

Jim Clemmer

does of Jim. make mix everything. little sense, It it's a of bit -- it's A

we're So always users. gaining new

And you sometimes lose users, too.

just we're new it's of special unique happens a that always users. that product the The interest and So in kind all so is getting time. mix new

competitive a With between AngioVac sure been where can we've trained that that use to the work. usage work works, can gray products it. -- physicians our challenged under continue other can things or happening, AlphaVac sometimes And there's also other to and make area

had X it I right sat with our of change a in learned So again see weeks little over users. after a weekend training getting choppiness new master afterwards, the a as market couple of customers some the a the of in master there. trained, we'll to use class. And aligned a users is first we're right week lot ago, class better learning and We've that better where

of see how it, drives user the the it's to easy benefits that it and are patient So use, it standpoint although we value people complex is from know outcomes dynamic.

So some leaving, there's moving answer, it's I'm but choppy. some Jayson, coming Yes, always accounts to you a trying accounts straight it's a give are in. target.

Jayson Bedford

heard heart don't you or think mention regulatory And left time line are process? and AngioVac where with I I you

Jim Clemmer

take they the believe believe FDA gave that AngioVac we want we kind do treat. size Yes. have heart, us We're really in excited by They've us different is What what initially. the the of left us market, can than different approach we've of given gotten they we to guidance. how and the the can rethought guidance from

changing approach it's our So towards it.

bar that they to the they line at how what the new will communicated us. again have the and we with really affect raised they've want level time and initially look of what So

we've push than to was. got our from Jayson back us request means to perspective more a out. little for come to that and time communicate will So it because you a time they've what the comprehensive asked What is line initial line

Operator

your with Plovanic come the next from questions. of proceed Please Our Canaccord. questions line Bill with

Bill Plovanic

big is, the at we My first to will that help in as get the look was the low quarter. be a guidance to jump end. -- just us for pretty I just year, question fourth

what low getting end, low help us to understand terms meeting to getting So end you're high the that the in or guidance. contemplating end of even of the updated

Steve Trowbridge

the than selling part in days third Yes, about the Bill, understand I I things question. it's more mean, is the quarter X it good a structurally fourth has quarter. of

had. same So -- QX holiday cadence that the have the and doesn't it

So going we the our QX big into a year seasonality. typical typically see given QX jump every from

part the that's So I first it. of think

far. a mentioned. from they're expect seen you at if to excited the with that going seen we look Jim as are increased here those in is AngioVac, see growth to pleased and mentioned. selling at month that trajectory, AngioVac we've pickup we're coming that and some have Auryon been of days. And part changes growth, continue going first very some going do We've the to their which had sequential of the March of Second in very like that pace Jim so We to products we're add is that on their NanoKnife

we're the that that talking give us all were were when you end the dynamics there, around on Jayson those of you you the call looking that of range clearing to But and with the previous bottom as range. to certainly at and back the into the build those we And asking put imagine, some -- we and about range what we're components some confidence, is together out midpoint. targeting in that, getting dynamics can then order, of

Bill Plovanic

the you that a being flow standpoint, from for year would wrong, me -- neutral cash you originally, I'm end then year. And think cash if flow the were and correct I targeting

Do still where Given about kind the do sit you you case? think that? of you feel today, how that's

Steve Trowbridge

Look, we're still striving for that.

maybe you the towards generation we strive I for we continue cash $X to we'll and midpoint do where talked of at to off expect significant here, that guidance of so going, to the going about our think that, midpoint think million see do look we we're going revenue kind We change that. or push if original to continue but given we're from that be still it. we're to to may

Bill Plovanic

as AngioVac, just just the I of AlphaVac cannibalization new and that AlphaVac then look drawing at just decrease with AngioVac the and of AngioVac, doctors going just Or customer of the really down mean growth do you're this the customers? same and share? you And and is think and kind a in AlphaVac of the kind of with some kind in the is losing you

Jim Clemmer

the who Back So last when done, Bill, of some did AlphaVac And performed every what have we we as and which saw a alternative. procedure which procedure little that they used bit the physician procedure early the we've on, launched both. tracked tracked cannibalization. an of would had specialty, we summer,

little pressure and and the seen also Now there some change, was last other employee we're in a fall, X X as finding less lot was less. finding technology It's were as -- We other challenges we've a treatment and when ago. so than or less cannibalization. some far replacing we're summer that or protocol knew there. and other we be last Lately, or hospitals that shift staffing a we're there'd potential products months gotten

the our will use It during is think educate like teams is to and working which it for way we been as us year, there. that always occurring. product to shift and remain our has a how. the well we this as But we So shift customers challenge and when

Operator

for to like over back any the Mr. Mr. remarks. call now Clemmer to closing I'd Clemmer? turn

Jim Clemmer

we've listeners treat grow We'll globe. to to become thanks feedback hard the continue today. We as a listening in can for need we we today. company our profitable and growth the work around Thanks, investors patients you Thank Darryl, received. to and the appreciate our company show and

Operator

This your teleconference. today's participation. you. appreciate We does Thank conclude

time. of your rest day. You this the at may disconnect Enjoy your lines

AngioDynamics (ANGO) 30 Mar 232023 Q3 Earnings call transcript