On April 4, 2024, AngioDynamics Inc (ANGO, Financial), a leader in medical technology for vascular and oncology therapeutics, released its 8-K filing detailing the financial results for the third quarter of fiscal year 2024, which ended on February 29, 2024. The company reported net sales of $75.2 million, with pro forma net sales of $66.0 million after adjusting for recent divestitures, marking an 8.0% growth compared to the same quarter last year. However, the company experienced a significant GAAP net loss of $190.4 million, or $4.73 per share, largely due to a $159.5 million goodwill impairment and other charges.
AngioDynamics Inc designs, manufactures, and sells medical, surgical, and diagnostic devices primarily in the United States, focusing on peripheral vascular disease treatments and oncology and surgical settings. The company's Med Tech and Med Device portfolios showed growth, with Med Tech net sales increasing by 12.6% to $25.7 million, driven by sales of the Auryon peripheral atherectomy platform and the NanoKnife irreversible electroporation platform.
The company's financial performance is critical as it reflects the ongoing transformation of AngioDynamics' portfolio and its efforts to focus on higher-growth areas. Despite the reported net loss, the company's adjusted loss per share of $0.16 on a pro forma basis is indicative of the underlying operational progress, excluding the impact of divestitures and discontinued products.
AngioDynamics' financial achievements, particularly its strong cash position with $78.5 million in cash and cash equivalents and no debt, are significant for a company in the Medical Devices & Instruments industry. This liquidity provides the company with the flexibility to invest in growth opportunities and navigate the challenges of the healthcare market.
President and CEO Jim Clemmer commented on the quarter's results, stating:
"During our fiscal third quarter, we took another significant step in our transformation with the divestiture of our PICC and Midline product portfolios, further strengthening our balance sheet and providing us with an opportunity to enhance our focus on the growth of our Med Tech portfolio."
Furthermore, Clemmer highlighted the company's recent FDA 510(k) clearance for AlphaVac in the treatment of pulmonary embolism, which represents a significant milestone in AngioDynamics' long-term strategy.
The company has updated its fiscal year 2024 guidance to reflect the asset divestiture, projecting net sales to be in the range of $270 to $275 million and an adjusted loss per share between $0.54 to $0.58.
For detailed financial tables and a full reconciliation of GAAP to non-GAAP measures, please refer to the company's earnings release.
AngioDynamics' performance analysis reveals a company in transition, with divestitures aimed at streamlining operations and focusing on growth areas. While the net loss is significant, it is primarily attributable to non-recurring charges. The company's pro forma results and updated guidance reflect a strategy aimed at long-term growth and profitability in the evolving medical technology landscape.
Explore the complete 8-K earnings release (here) from AngioDynamics Inc for further details.
