ANGO - Earnings call 2 2024 | AngioDynamics, Inc.

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Operator

Good morning, and welcome to the AngioDynamics Fiscal Year 2024 Second Quarter Earnings Call. [Operator Instructions] As a reminder, this conference call is being recorded.

The news release detailing AngioDynamics' fiscal 2024 second quarter results crossed the wire earlier this morning and is available on the company's website. This conference call is also being broadcast live over the Internet at the Investors section of the company's website at www.angiodynamics.com, and the webcast replay of the call will be available at the same site approximately 1 hour after the end of today's call.

future XX-K, materially company's which filings future would the including this caution Forms with discuss will and may conference XX-Q forma and or encourages the the statements forward-looking events and review I described certain specific the that company's make to results past and pro gross also begin, the about financial you cause identify trends forward-looking of without statements that year SEC, company that course call, from regarding factors well margins or we for limitation like during will adjusted XXXX listeners measures in call. non-GAAP to statements. The actual to during those projections expected fiscal differ this Before revenue, including as earnings as events, the the continue. Management company may uses Management that goals review time. underlying believes operational to and the business analyzing over trends performance may in operational these measures investors company's the in measures and these establish assist consider and in as superior pro not in to, or addition for substitute a financial non-GAAP should GAAP. with reporting measures to these accordance forma prepared measures Investors as

to the Officer. over and during Executive morning's this call now Clemmer, and the company's company's This performance to offering slide into operating A financial release discussing the the available of turn with results be Clemmer? read results should website presentation company's section the press conference call. I'd AngioDynamics' insight also is Mr. on like under package Events Chief Presentations. Investors Jim the financial & in conjunction President

James Clemmer

XXXX us morning, for good call. and thanks Rob, joining you, earnings today fiscal for our quarter and second Thank everyone,

Dialysis financial Officer, a Trowbridge, today's Chief performance call will call our that as with morning. all Vice rates the will respect and as quarter of provided Unless the restructuring is growth results we financial the more provide me be pro impact who which BioSentry forma Executive noted, and basis, on manufacturing our and our AngioDynamics' second during announced analysis on businesses. today excludes this and divested well Joining Steve otherwise President a detailed Financial to metrics of

our strategic into results, announcing our transformation. digging quarterly significant we long-term in steps Before are

quarter, progress we and that portfolio front. the pursue optimization second opportunities to we continued actively on During made

In by planned addition, announced to this morning, a of restructuring manufacturing we outsourced fully our model. footprint a moving

simultaneously will remain growth we moves, across and on Tech expansion. these continued Med With while both generating driving focused Med Device our margin businesses,

dust initiatives to I later of into the FY settles when we XXXX. in Importantly, now let QX. to our expect Both profitability achieve full at back Steve year me But the from call. additional end the X-year and in get details plan, our go will

'XX year-over-year second We thrombectomy second million, with of growth the Our $XX.X X% in year, by quarter revenue saw fiscal ended also but growth led particularly approximately business. our of Med segment. headwinds, Tech growth representing from our of faced of over we approximately quarter X%

remain particularly still expenses focused our spending the of managing long-term mechanical was a we of $X.XX adjusted growth. our a investing growth loss EPS was on in expectations, operating behind Med While segment in thrombectomy, while as bit Tech our and

Our year-over-year. X.X% declined AngioVac mechanical which and business, thrombectomy includes AlphaVac,

procedural longer traction. are as believe expected. these the but the we clearly to growth We quarter, this trajectory our gaining to are we this late softness attribute positive business taking the is business of than results to volumes by some also of are disappointed drive taking We had weaker-than-anticipated in we inflect steps slightly

approval FDA working our receiving diligently the with toward on the heels breakthrough we final example, to of use the designation For right of heart vegetation, receiving for AngioVac IDE remove the begin following to study. continue

value the design XXXX. than the make in revenues softer past new forward durability, product this we've second-generation and over of quarter, simplicity look that this introduction the and the we that learned to have later physicians device, more liked AlphaVac what calendar appealing enhancements of X will safety is would we were XX While months even

highly of the competing competitive fully we some from studies, AlphaVac enrolled do. We product as study, the PE ahead. indication we performance community, and at of approach clearance physician down we December, FDA enrollment which continued sales from stage, during thrombus device embolism. We the We a at treat once what completion the path submitting tremendous pulmonary APEX-PE XX-day underpenetrated, patient year excited support of final year, partially early to from remains and we in were we collecting data able the letter against study products the expect part existing as AlphaVac our a in sites completion our the we XXXX FDA calendar early to of our quarter assess the receive burden between approval the we for wind improving then designed many APEX-AV did are previous we right our the is competitive in in and time not trial in the the of study system expect the an is approval our forward that softness trial, large, FXX this the and expanded the quickly announced the have complete look that as ventricular about interest this believe and will have a function. a X as calendar the As softer-than-anticipated in to to FXX a PE AlphaVac of to differentiated specific reducing outpaced high-growth anticipated indication follow-up to our stem that the data in market. Because and later does

in will quarter in the business, the XX.X%. bringing the Year-to-date, but future NanoKnife previous year's sales as to and online. distributors and saw sales sales sales international probes second were periods timing NanoKnife grow X.X% capital of declined quarter, total come during probes those decline sales units U.S. growth during this offset declining probes due NanoKnife new during our orders up both are XX.X%, with distributor of to probe and internationally additional grew we approximately during year's Turning the on Probe in quarter X.X%. quarter. Stronger up the drive

We historically from sales while an capital continue business been to both in has as basis this probes annual quarter-to-quarter and on anticipating the expect strong growth fluctuations case.

and deliver In growth safely approximately driven by and ports, angiographic catheter provide continue product in foundation laser During strong preauthorizations, way that believe milestone over vessels but attention and the X.X%, XXXX. We the second growth. Growth respectively. from FY that drive in of increased second important the to will and quarter, Med in delays energy our experience year-over-year, sales since the of long our segments. September with term, revenue both Auryon share saw grew for was products achieved we X% to our we our tell unique Med we we're XX.X% solid launched continued reached grew treat this Device primarily increased which $XXX of and our around disease November, to up we that X% Med platform, XXXX, Device excited Tech our growth we did in of business the in an international year-over-year, quarter recent some and million cumulative double-digit related segment the having you XX.X%

which third excited for of a we global hosted our products and increased international meaningful who have are also to to led pipeline symposium, our products patients. Tech clinical life physicians interest our in generated their We utilize has Med in caring

Med told Now portfolio products second the with engaged further that and the able initiative in active mentioned to the forward and additional discussions quarters providing look We when evaluating just I that. do to during that to quarter Device soon we advanced initiatives are We turning are we past details this our in strategic our earlier. remain you several we over we to. you

to upstate efforts, fully footprint In structural New within also optimization our increasing operations on our addition next we transitioning focus outsourced model to X continued York and years. manufacturing the manufacturing portfolio costs our the are a over reducing our

already As of Tech XX% is manufacturing Med this model. a third-party reminder, leveraging roughly revenue our

of you past facilities. years couple see began moving capacity over in many know, we of we to already as Rica the labor began Med York New Device upstate As of Costa manufacturing our some shortages our to

will planned radio second will enabling less Auryon launch. drive of received provide Fully X in our 'XX, profitability. Shifting closer month, the 'XX. Steve back This we've XXXX. important, margin of believe term. for giving get the design provide enhancements the We're access of in market us our strategy Auryon profitability as FY savings new at and commence by around be calendar year of more releases while XXXX. In growth calendar but long-term physician model faster, Tech Med we us AlphaVac, this Tech in as moving equally still to full XXXX, point a and procedures. near what pathway for for which annualized FY limited business and of will physicians our to this X we both detail, will is significant Device risk, will year half the more gross improvement, while Med $XX feedback our we to release ahead lies the of portfolio operations overall a driving the that launch by release and during long-term million this an first calendar those product This significant to year will the we'll excited driving invest we our advancement details invasive allowing roughly designed simplifies on Med cover an to catheter,

regulatory an exciting clearances on also horizon. of got schedule We've the

calendar are EU approval We in AlphaVac-PE first XXXX. and Auryon of half of the projecting year

critical mid-calendar for we late in Investor higher-growth introductions or July, open expect XXXX finally, markets. These FDA you putting out up AlphaVac-PE and significantly calendar Technology the parts in approval regulatory be of addressable July in are and complete, XX-month strategy U.S. larger, the laid will XXXX. track on our Next, for us XXXX calendar year. And we PRESERVE of Day. also then early clearances approval potential that These follow-up

the portfolio, quarter. about this strategic are and our shared morning and our we've of transformation the becoming apparent future impacts initiatives of the excited hope more We we with about are strategic that you each

review the to turn Steve Trowbridge to I'll detail. quarter the in that, Steve? call With more over

Stephen Trowbridge

Good morning, everyone. Jim. Thanks,

direct begin, on results. Before I'd like everyone items the from to website, our quarterly key I summarizing the presentation Investor our to Relations

exclude and are mentioned, forma the and in divested unless pro growth all we metrics mid-June. mentioned call rates that results noted, the Jim during basis BioSentry of As Dialysis a and businesses today's on otherwise

before to today's Similar announcements. second I'll start to the Jim, shifting with quarter strategic

'XX for second FY increase, of platforms. our X.X% second a was million, our growth Tech X.X%. Med Device in Device Med year-over-year million, our year-over-year, both Year-to-date, while 'XX. $XX.X X.X% X.X% Med Med $XX.X revenue and FY of Our million, was year-over-year revenue Med was the Tech to revenue $XX.X quarter increased revenue by our and Device with up Med Tech overall segment growing X.X% quarter up to segment compared X.X%, the driven up

total ago. the our total of of XX.X% fiscal to a second Med quarter, platforms Tech XX.X% revenue For compared revenue our year comprised

For our months November X XX.X% Med XXXX, the total ago. as segment year of ended of comprised X versus revenue base XX.X% XX, Tech our

$XX.X platform the in compared Our to million Year-to-date, during XX.X% platform up contributed our Auryon year. Auryon growing year-over-year. quarter, revenue last is second XX.X%

in second revenue, the XX.X% over was procedure the of late in over the quarter, million. includes and revenues lighter Mechanical in second that revenue $X.X volumes the $X.X had not AlphaVac thrombectomy quarter. AngioVac which came see 'XX. rebound did of AngioVac FY representing as AlphaVac expected, declined year. AngioVac than X.X% for we anticipated decline quarter particularly the We was a in prior sales, million revenue the quarter

mentioned that the mechanical as strategy contributor strategic our pulmonary well excited a to the study. clinical as new such product growth long-term are confident about be remain as introductions thrombectomy and we Jim that will APEX embolism We initiatives, our

in disposable X.X% decline quarter growth a was revenue markets. Disposable the NanoKnife X% by year-over-year. in international offset U.S. the during decreased of year-over-year

sales. growing were As NanoKnife volume total the markets in in and the a distributor sales decline quarter, orders, sales this NanoKnife driven of quarterly Year-to-date, XX.X%. quarter. Capital timing although year-over-year primarily strong and the driver XX.X% up XX.X%, up disposable remained robust said, very are disposable future sales Jim was of is international during procedure are by strong

by And earlier forward we In public the enrollment sharing our as Device starts angiographic grew complete. X.X% addition, to of be XXX% led look announced you. In made as second this we is this Med the a this course in segment year, in products. port over reminder, and to it our data that year, catheter with quarter, PRESERVE year-over-year, now strength

Moving the down statement. income

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

Tech margin was of Device of for XX.X% and gross expenses the were both Device a each fiscal positively for Med mix, margins a XX.X%, decrease was the labor year. The retention volume prior second labor with XX points Med margins a quarter freight payments points, For margin reduced, year, points, albeit continued, volume, year-to-date cost gross quarter, and and basis to of XX basis Med decrease sales were gross but XX.X%, and basis impacted Med decrease reduced was the by FY gross placements XX.X%. Year-over-year year-to-date margins and hardware direct second when sales margin Tech offset compared XX.X%, last of 'XX both inflation. versus quarter gross of production XXX for by and material gross of and

base. become revenue a model contemplates margin portion expansion our higher-margin tech as our to segment of med our gross we've overall continues larger As business discussed, strategic

our York lead address transitioning 'XX. year phase EPS is model a to footprint morning's last a capital-efficient address our the these quarter, full to and New structural next adjusted fully operations restructuring upstate of transformation to our outsourced cost manufacturing in announcement in scale manner. This margins manufacturing gross mentioned FY and meaningfully will footprint improve our and limitations the profitability operating limitations, As regarding of structural

of We in realized annualized will roughly full our 'XX. expect being FY result million, the savings with manufacturing that restructuring annualized in impact $XX

continuing we more In will our discussed, previously when to we're further details appropriate. provide you productive conversations as around portfolio addition, we and have optimizing with

R&D. to Turning

$X.X was aligned million the strategy of and and clinical of sales year during XX.X% within to XX.X% $X.X X.X% full ago. compared spending Tech fiscal was well adoption and evidence. SG&A the support quarter during is mix Spending a expense spend on increased last of technologies the Our of or data for million, XX.X% generation our sales our to sales, was million year the a XX.X% quarter 'XX XXXX. This to research FY ago. quarter of of Med second XX% through our the sales representing expense compared second shift development clinical $XX.X total XX.X% programs platform long-term second for of or of 'XX during compared year, R&D FY million 'XX R&D fiscal to second quarter of physician with of $XX.X of year or the

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

operating units million, In $X.X of in placement the had to $X.X million additions capital cash, million. we $X.X quarter 'XX, evaluation in and generated expenditures of of fiscal Auryon second

debt equivalents sheet. cash have At November X $XX.X million and XX, we And the compared on XXXX, as we in cash a cash cash in $XX.X had equivalents May and XX, XXXX. million at reminder, to balance

in million, million guidance. range full million anticipate the year This million. the primarily the now SKU continue 'XX guidance to per the which with adjusted that prior we morning. We range rationalization below throughout thrombectomy be the the to $X.XX half $XXX to and quarter, well softer associated now fiscal be of expect now announced now share revenue impacts as to $X.XX. will we will other second of FY $XXX this to restructuring back expect certain manufacturing $XXX the sales as year for $XXX We loss in our of of Turning during accounts

FY result 'XX the of of pro to XX.X% expected compared FY due forma mixed Med occurred range Tech. 'XX lower gross XX% XX% the to a margin gross the in of as shift expect to margin We be to

year. to we FY revenue thrombectomy expect For this to the down the XX% from of account during XX% Tech 'XX, now Med for through quarter XX%, in of XX% the we saw weakness growth persisting remainder range second the to

the of revenue X%. Device XX%. growth Device to Tech the expect now Med the X% of in to to expect of range margins XX% XX% Med continue margins XX%, in range We range Med gross gross We and in to

As in that outcomes high-growth underpenetrated Today's look earlier, providing in our announcement profitable that transformation is the you technology forward coming impact gets the the restructuring work on we we a over a in mentioned strive to coming the gets more patient significant with strategic underway us we to have expect markets. margin company and A improve be. our months. as structure platforms details on step manufacturing closer to that medical meaningful business focused large to unique years

commitment, to for executing strong to it for hard coming with like and here to and further initiatives and months would about you fiscal I strategy thank their our half our these forward team we're delivering I'll second the AngioDynamics that, Jim. at on more work turn 'XX. With a looking in sharing Finally, while back

James Clemmer

Thanks, your Steve, for you thank and for those morning. time joining, this

in but benefit of to a products, bottom opportunity the is an don't What out that spend costs important a costs, sure transformation, outcomes company to today set us. are the We'll serve that that. we that investments steps balance markets the we've optimize do the we we structural to our looking you we we of also grow Taking in to significant line, continue investments and in markets our in. maintaining eye the have see making aligned customer forth see of that do with and to lot are front to in want seek the to

make want opportunity we venous in can the needs. in We primarily in large and have opportunities maximize disease, cardiovascular unique or treat We markets. to sure fast-growing to arterial

solid tumors treat in our We also know prostate can areas cancer. that NanoKnife unique like

with back Rob, turn joining to We our seek products. our they us to you. look I'll Thanks to where it customers for grow following to forward today.

Operator

coming Yi first H.C. Wainwright. have question [Operator our the Instructions] line from Chen We of with

Yi Chen

until to the want clarify. manufacturing? to complete Just shift margin, gross The continue it will to you decrease third-party the

Stephen Trowbridge

and back some costs to be are taken forth, out this through be going There Yi. to see You'll process. going are that

You're we do doors and benefit the to are that the going the when see come most shift able impactful close finally to to full manufacturing.

into we cadence and more move we around future you that. you giving 'XX little 'XX, a as give guidance As clarity the for from we'll bit into years, head

and of movement, expect the the would going bit movement see I a for X-year 'XX. FY of little the of period, year that So most end being coming certainly with you're there significant full to at but then

James Clemmer

that as a period product corporate that our Tech have average And, mix X-year gross as Yi, the well, during margin gross shift Med faster-growing the than piece. products a become margin higher will

long throughout as Steve of cycle as that see far positive as mix out and those also the costs shift said, we we beyond. end, that's expect back to take So a X-year

Yi Chen

regarding any factors And for sales you to expect sales are the thrombectomy, years? the the to there sales that in coming the increase drive

James Clemmer

Yi. are, There

all, of that for again, that larger heart back, graft AngioVac, to we to the significant than that AngioVac, the vegetation the months with but think IDE our aligned a we right FDA announcing and to First expectations designation few opportunity is that then received breakthrough from getting AlphaVac.

for And in Yi, year FXX the have opens half Yi, we the that series a for up we our first the CE get, FDA market earlier will us. it's of mentioned significant our in XXXX, PE calendar to mark forward in the our on believe, U.S. indication we that call timed same almost, here for look the

we've completed to educate elements the really that the see large our from train not The hard would the design the sales it clinical ready in serve. fast we study to teams to really didn't are to next AlphaVac, the novel These APEX was positive have physicians people product. months, go and that can markets. What led the we'll like we during if work patient are that learned X and been what really and markets over as as think study get features design novel outcomes. So

make XXXX. tight calendar later prepared we're for in a sit we've sure bit and So, Yi, global a really for full to got launch

Operator

And our of Young the question Genuity. next John line comes Canaccord from with

John Young

about you just about. the the you the Just the and start, I more headwinds past, you're to little and device sales new to you leadership vegetation. know designation go AngioVac bit breakthrough recently on that can got a in maybe training heart talking put right detail there in

you What to there? what to going isn't are working this? do remedy And

James Clemmer

been do market AlphaVac. serve it's smaller AngioVac, opportunity than for before challenge. we with we John, a mentioned AngioVac We with that

a we're only that So you heart vegetation last a were we these environment that terrific opening up sales serve sales to But new important the with being that open work What around going wanted working already new built on is opportunity summer, largest. the who's to some markets, us. here limited this we a since to market. and up team, in brand for that leader when we've knew is right people products AlphaVac-PE done FDA AngioVac talked the again, new

we our realized force sales fully time. staffed also training fully new now We've and a module the first for

for So We're a capabilities, will AlphaVac-PE mentioned, the AngioVac, both training developing really limited which granted. phase less markets becomes open future educated, larger, market when you us that We're we're as to and limited know, serve complex, the and as getting the now. is you their and is in and their ready. them we in

clinical these training in and sales educating open up our teams, teams back So we're the markets. work our doing end, to and our

John Young

Great. And then to just shifting you. to AlphaVac

is X.X just now talk pricing talk that Can your do or the par that? about maybe versus a bit improvement? And calendar the and the to year. with you any above market this mentioned market? or can see you going you about the below And pricing You today, launch increases the on ASP

James Clemmer

John. Good question,

published being is are available. But device. unique. become study for calendar and really elements see they unique some results again, the novel a study when Hopefully, there's some I'll And AlphaVac with let year design this itself. you'll speak data So that

guidewires through so placing treating the used of you're catheters and this the to wires For and with part guiding using which torturous, anatomy, so instance, anatomy when physicians are forth. is

physicians don't the need minute, that at if place that wire. drop a wire it you Most AlphaVac do But a to or unique you time, designed look confident we with the allows between faster forth It built to body elements the need steerability design different do in "Why one safer, and wait they We in do different of It's of over the and a them we design found still that. the go and of atrium elements to we choose. they can't really don't and get that," and is parts device. treat way. to like, comfortable can the the They options back the with they believe. a

point. They've high. adapt know with priced shown can't uniquely In in the It's product, So to value is elements be some from there. design has price point that think on. already built We feedback we've is we'll great we competitive we've really when that other price are receive, this second-gen other design heard later And will offer see. that's which be in really we timed product the companies. year, I our unique us enhancements they collected range, a products other talked out that market. their the expansion. Today, for to speak customers price well the really about indication a the pricing think, to been with that $X,XXX some we like mark. where in John, right the come in And this the think And really to we good our PE we product. is that feedback market out willingness what what our calendar they'd with

product think that in have spot and margin we a The good pricing differently. for range it there. grow of will we're a we high that to to at look do range in But Some years gross come.

Operator

of the Raymond next with Bedford Our line from question Jayson James. is

Jayson Bedford

few a questions. Just

additional regulatory the a approvals? you XXX(k)? regulatory improvements, do new just AlphaVac the any some -- can require can launch without On an standpoint, Or from they

James Clemmer

so Jayson, with the is regulatory team. the team working R&D

XXX(k). So one and -- enhancements in with planned I regulatory so of are design the R&D changes a not that newer requires the the these were that teams. One does actually think

cycle regulatory we're that quality teams we those calendar teams, targeted, half R&D cycles. The we'll teams year. So at feel of that's why and second confident our have this that hit looking

Jayson Bedford

the mentioned just do I'm then attribute in some procedural you the quarter. just you And Okay. late on softness wondering, to? what thrombectomy, softness

James Clemmer

Jason, had of with very customers. closely actually the study was our our end down. And saw our a APEX measure things study, knew obviously to very We X this getting talked Yes, sites and November we frame, and close softness wind occur, that. that to we time customers. happening. We're that There the we

So winding some down. are some up, were finishing

we're So how we careful kind this. measure of

had do. us, But still getting a we That's the them and shrugged growing. not also that had through our patients to said, "same-store come -- bit small us. less AlphaVac had business down. with at normally conversations who usage lately we spoke We a for just you couple amount the lot people seen know, haven't they rate shoulders The sales," little certain with "Hey, product. control for they a we customers, less the use or A enough over of went marketplace." It was of huge, almost their a a but and

So it's impactful We it watch for closely. us.

put couple our there. particular. in a We one So factors of there's want around any to don't arms

team, training we that and us. a for there's of this opportunity, the because forth later the education for we opportunity impactful. getting year, matter our launch calendar them PE we is and of think with the won't most significant ready bit Again, Whether softness have believe, really upside back is then

Jayson Bedford

of a a in seen bit have rebound And December? you

James Clemmer

where was little bit, differently. final the said, factor little days first whole a Yes, Again, of Jayson, in I as patients lot. have December, other where we a it the we're And a the step couple also, measuring it not bit, enrolled. back were

the pull market. the PE December, of which then study in until down really we enabled can't days product the the back, of of study the study. first and market We to So us the couple get and of the education the sell completed outside study obviously, we shut terms on

same So the that. having there's to make a parts aware time. you I at just want couple of moving of

So we're watching all those elements together.

Jayson Bedford

And just to going process is to model? this fully logistical how of -- Like a work? the outsourced what's moving

James Clemmer

Yes.

was company that Upstate when have sites XX sites, New York X sites manufacturing in well. we So We've in founded distribution upstate were York. New as here our started years ago got almost

The we'll X-year wind starts yesterday do a is So what that Jayson. down, made process. X-year announcement we

This So people at employees period. our we years the months, and to phase. operations couple the seen, started we for, the because capacity of Costa XX operators. Rica a talked of also we planned has planning less new yesterday. ago, during can you've availability been imagine, moving the some And pandemic site of to had We needed X you to

of period. some started we that those So during for moves Device products our Med

protocols. have we established So now

supplier partners. some So good

have quality up. validation that our well. We chain part set They're of metrics already supply works

do So we gave move we and if more be, levels things to confidence and we the time, to cost couldn't. capacity where the couldn't get we more, over and us can it need

So this plan B we pocket. our had in

as earlier, segment in partners that bulk said I our revenue our chain of Tech from today are Med you see, supply in our the as And comes today. suppliers

complete have move operations in regulatory processes partner That's make are validations So plan around and those that a really back manufactured the our sure to that place. we've quality window, of those supplier and logistics, why here and are each are we ready, sites that down Jayson, to of a to wind X-year the those a the in each a to got cycle. product around segments all still

Jayson Bedford

Okay.

I table? a on Just still goal million one exiting year. cash flow, me out the had for Is million, $XX maybe last Cash there, the $XX now. have for that you think

Stephen Trowbridge

the be just you transfer we parts of will about. little when talked bit manufacturing that a it about think Jayson, moving

going said, time. another a There going probably of we've working up. for the to from to a for going a be on Jim prepare to of is of as inventory where We're spot, we fundamentally these be been to movements. That example, balance we're our long but some shifts balance said, plan in build very the For this sheet, one cash move being the spot not there's on as that change may some going that's sheet to going expectations end up asset it's little to some right?

Jayson Bedford

sorry, -- end? $XX or to So low $XX still towards million the million

Stephen Trowbridge

shifting, So you as know, expect you you inventory to would bit that going it little less terribly not when right? we expect bit cash buildup I a that. But wouldn't cash, a that maybe about said, will think I below as that there's current be prepare, into move assets. some be little might like have different but be I

Operator

Lichtman Our Steven Oppenheimer. next is line of the from question with

Steven Lichtman

of guess assume? outsourced first, shift. just of anticipated What what Med transition is costs of percent couple cleanup we on manufacturing should Device the a the questions I And currently? cash

Stephen Trowbridge

with were Steve, quarters a up this of manufacturing is of already your portfolio to that third-party partnership. respect mentioned with Costa number started device Jim current roughly made by as Rica building process we question, the capacity our So first ago we partners. XX%

that. we're to going So doing continue

full it's that over important the taking think a outsourced. talking started can fully really last point to it's that I or the we understand XX something it about that was and this is talked months to process where That's XX continuation of months. get so. we're about Jim there the

that to supports move a have benefit the that, going be structure where management FY opposed one $XX the about we hybrid managing structure manufacturing is, process. you're the company-owned finish X-year outsourced then have that of that And drivers well 'XX. And of going that once talked really as this going to fundamental as fully both we roll that structure, which into this one, annual can million to us we're to to to today, gives as we see is savings

well plans. investment, the is good, planning to you'd within of always the procedures our as these X just months. see. Jim there's going terms to for And expect be very In what investment. types we've said, are payback It's that That's of the for been last something, something

Steven Lichtman

it. Got Okay.

you that sort we've to on shifting to went on more front, -- what seeing of pre-off as And you're you as fiscal gone color mentioned? we some headwinds this Can Just provide the Auryon. quarter? into

James Clemmer

Yes. QX call, we touch Steve, it it out it. we there. our in did our touched upon We've last seen upon --

or I've have. X in companies I think other detail the in more about meantime, it X than talked we

marketplace. by demand strong being balancing how the here. in it's and still created and a got generating Auryon We got and it really excitement the thing We've the data works

trained So Auryon. at I our about new doctors in the this be of of interest ago we've X.X Auryon. overseas, tailwind got months Global capability and cool watching talk was Symposium

a that's field. interest. But there got of in So cool We've tailwind the we've headwind seen created. it yes, is been that

players kind always it. have which of in pre-authorizations, cycle, the more on the So of part are up and have tightened

down slowed So it has procedures.

are groups process. to with We through industry customers our working go and that

but said down out slowed We significantly, or come and haven't no procedures them our impact. There's it stopped made an it has doubt.

all have You headwind. but is done this work We're have think without We stronger it, doing customers we been there. quarter procedures can with minimize been still saw would to growth strong quarter. and our it in a to would the more

Steven Lichtman

mentioned And guess lastly, small think Auryon, then about don't expansion and coronary. today DVT, Any for vessel just update I on the including those? potentially indication anything you I

James Clemmer

of Yes. A couple things.

it have CE of cycle for MDR has a now, been all year. the industry, Auryon challenge of but We're process us always good European regulatory with we'll have couple in as our a first a in approval approved calendar half our the for for control. of we first regulatory know, bit again, the in team years, cautious half a Auryon, past the with the So MDR aspect cycle is our of of calendar overseas We year. think you

told which gets Second, speak. here, our U.S., the of Auryon product catheter expand you to one almost X those some as we call, ways in in here, launches part really which we the new about is happens X immediately That's of want I radial earlier of exciting. launched

be things And looking the to coronary a soon Europe completed those expansion. Auryon summer study with protocol been in There's showing also We'll it. about how working embark it talk used some was produced leaders X working them it's the understanding a FDA, called with for and to study, as on it the up here the with U.S. that we can applications. We more with [indiscernible] There's study coronary a effectively open design. thought that and safely see beyond can just do. in published, can study that things look being other clinicians forward what happening last and how on about

the move it safe in natural So next we market. effective think that will we as for be Auryon, know that's and

Steven Lichtman

And on the nothing small DVT? thrombectomy vessel new for on

James Clemmer

the there, now. work doing process schedule on news we new our We're the put forward. No follows

laid teams pathway Our that we on out and before. working regulatory R&D teams are

no really there's Steve, new on So front. news, that

Operator

for this the At turn Clemmer? over Mr. time, Clemmer any closing I'll you. Thank remarks. call Mr. to

James Clemmer

we joining environment first, through We the and especially in itself us Med do. what hard transforming as today. of AngioDynamics company Thank is appreciate commitment when you second, environment, the work an into difficult for our fast we to as and the portfolio your employees. Tech work do how It's very paced

product, company announcement instruction for of better years. can that today's few costs drive our going We're of our those reallocate manufacturing that benefit. So think costs some is next over significant there, to those don't we customer or stranded company. We utilize the are

you to joining transformation, exist and technologies company to opening employees go some investments, more make Some these for in direction customers, launching. We're a for investors. Thank in with we're up us and will the new line company strong allocated opportunities to our our a today. be we're for company will clear bottom the our expansion valuable but that's our that

Operator

conference. today's concludes This you. Thank

you may for your your this disconnect You time. lines at Thank participation.

AngioDynamics (ANGO) 5 Jan 242024 Q2 Earnings call transcript