AngioDynamics Provides Preliminary Fiscal 2013 Third Quarter Results

Thu Mar 7, 2013 4:30pm EST

* Reuters is not responsible for the content in this press release.

http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20130307:nGNXUXIBLa

ALBANY, N.Y., March 7, 2013 (GLOBE NEWSWIRE) -- AngioDynamics (Nasdaq:ANGO), a leading provider of
innovative, minimally invasive medical devices for vascular access, surgery, peripheral vascular
disease and oncology, today provided preliminary unaudited financial results for the fiscal 2013
third quarter ended February 28, 2013.

Currently, the Company expects to report net sales for the third quarter of approximately $82
million, compared to the Company's previous net sales forecast of $89 million to $90 million. The
Company's third quarter net sales were primarily impacted by sales attrition in its Vascular
Access business, softness in procedure volumes in the Company's Peripheral Vascular business, and
delays in capital equipment purchases that reduced Oncology/Surgery sales. During the third
quarter, the Company continued to implement its cost reduction initiatives, which partially offset
the lower than expected sales level. As a result, the Company expects to report adjusted net
income for the third quarter in the range of $0.04 per share to $0.06 per share.

"We just ended a disappointing quarter," said Joseph M. DeVivo, President and Chief Executive
Officer of AngioDynamics. "At the beginning of the year, we expected to build momentum and grow in
the second half, and achieving our goals has been delayed. Across most of our product lines, when
comparing the third to the second quarter, our average daily sales were flat. The continued
development of our global commercial organization post our integration contributed to our third
quarter performance, but we also clearly did not anticipate the weaknesses we saw in elective
procedures and in the overall market. Specifically, procedure volumes for VenaCure EVLT and
Cardiology were below our expectations. So, too, were capital equipment sales.

"We did see many encouraging signs of progress in the quarter," continued Mr. DeVivo. "We executed
a sole-sourced IDN agreement potentially worth more than $2 million annually, recognized our first
U.S. Microsulis sales, converted several large PICC accounts to BioFlo, which now represents 10%
of our overall PICC sales and generated more than $500,000 of AngioVac revenue while completing
sales force training. Our original goal of $1 million in AngioVac sales during fiscal 2013 is well
within reach. At the same time, we have managed cash, inventory and expenses well and remained
solidly profitable while continuing to generate cash from operations.

"We're viewing the third quarter top line performance as a temporary setback. It is simply taking
us more time to build momentum as we continue to onboard new technologies while our sales force
settles in. However, we remain as confident as ever in our strategy for growth, our business model
and in the management team we have in place," Mr. DeVivo concluded.

The anticipated preliminary results for the third quarter are based on management's initial
analysis of operations and remain subject to completion of the financial statements. The Company
will discuss fiscal 2013 third quarter financial results, and comment on the outlook for the
fiscal 2013 fourth quarter ending May 31, 2013, on its third quarter earnings conference call on
April 9, 2013. The time and access information for the conference call will be announced
separately.

Conference Call

AngioDynamics will host a conference call on March 8, 2013 at 8:30 a.m. Eastern Time. To
participate in the call, please dial 877-941-9205. In addition, a live webcast and archived replay
of the call will be available at http://investors.angiodynamics.com
http://www.globenewswire.com/newsroom/ctr?d=10024468&l=8&a=http%3A%2F%2Finvestors.angiodynamics.com&u=http%3A%2F%2Finvestors.angiodynamics.com%2F
. To access the live webcast, please go to the website 15 minutes prior to its start to register,
download and install the necessary software.

About AngioDynamics 

AngioDynamics Inc. is a leading provider of innovative, minimally invasive medical devices used by
professional healthcare providers for vascular access, surgery, peripheral vascular disease and
oncology. AngioDynamics' diverse product lines include market-leading ablation systems, fluid
management systems, vascular access products, angiographic products and accessories, angioplasty
products, drainage products, thrombolytic products and venous products. More information is
available at www.AngioDynamics.com
http://www.globenewswire.com/newsroom/ctr?d=10024468&l=10&a=www.AngioDynamics.com&u=http%3A%2F%2Fwww.angiodynamics.com%2F
.

Trademarks

AngioDynamics, the AngioDynamics logo, AngioVac and VenaCure EVLT are trademarks and/or registered
trademarks of AngioDynamics Inc., an affiliate or a subsidiary.

Safe Harbor

This release contains forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. All statements regarding AngioDynamics' expected future financial
position, results of operations, cash flows, business strategy, budgets, projected costs, capital
expenditures, products, competitive positions, growth opportunities, plans and objectives of
management for future operations, as well as statements that include the words such as "expects,"
"reaffirms," "intends," "anticipates," "plans," "believes," "seeks," "estimates," "optimistic," or
variations of such words and similar expressions, are forward-looking statements. These forward
looking statements are not guarantees of future performance and are subject to risks and
uncertainties. Investors are cautioned that actual events or results may differ from
AngioDynamics' expectations. Factors that may affect the actual results achieved by AngioDynamics
include, without limitation, the ability of AngioDynamics to develop its existing and new
products, technological advances and patents attained by competitors, future actions by the FDA or
other regulatory agencies, domestic and foreign health care reforms and government regulations,
results of pending or future clinical trials, overall economic conditions, the results of on-going
litigation, the effects of economic, credit and capital market conditions, general market
conditions, market acceptance, foreign currency exchange rate fluctuations, the effects on pricing
from group purchasing organizations and competition, the ability of AngioDynamics to integrate
purchased businesses, including Navilyst Medical and its products, R&D capabilities,
infrastructure and employees as well as the risk factors listed from time to time in
AngioDynamics' SEC filings, including but not limited to its Annual Report on Form 10-K for the
year ended May 31, 2012. AngioDynamics does not assume any obligation to publicly update or revise
any forward-looking statements for any reason.

 SUPPLEMENTAL INFORMATION                                                                           
 PRELIMINARY UNAUDITED NET SALES                                                                    
 BY PRODUCT CATEGORY AND BY GEOGRAPHY                                                               
 (in thousands)                                                                                     
                                                                                              
                         Three months ended (b)                 Nine months ended (c)             
                         Feb 28,          Feb 29,   %         Feb 28,    Feb 29,    %         
                         2013             2012      Growth    2013       2012       Growth    
                                                                                                
 PRELIMINARY                                                                                  
 Net Sales by Product Category                                                                 
 Vascular                                                                                     
 Peripheral Vascular     $ 43,300         $ 22,851  89%       $ 132,361  $ 66,898   98%       
 Vascular Access         26,400           15,063    75%       79,741     45,864     74%       
 Total Vascular          69,700           37,914    84%       212,102    112,762    88%       
 Oncology/Surgery        9,800            13,653    (28%)     33,039     51,335     (36%)     
 Supply Agreement        2,100            --        N/A       6,882      --         N/A       
 Total                   $ 81,600         $ 51,567  58%       $ 252,023  $ 164,097  54%       
                                                                                              
 Net Sales by Geography                                                                       
 United States           $ 65,900         $ 43,629  51%       $ 203,580  $ 140,587  45%       
 International           15,700           7,938     98%       48,443     23,510     106%      
 Total                   $ 81,600         $ 51,567  58%       $ 252,023  $ 164,097  54%       
                                                                                              
 PRO FORMA (a)                                                                                
 Net Sales by Product Category                                                                 
 Vascular                                                                                     
 Peripheral Vascular     $ 43,300         $ 44,412  (3%)      $ 132,361  $ 131,926  0%        
 Vascular Access         26,400           27,598    (4%)      79,741     83,306     (4%)      
 Total Vascular          69,700           72,010    (3%)      212,102    215,232    (1%)      
 Oncology/Surgery        9,800            9,521     3%        33,039     30,080     10%       
 Supply Agreement        2,100            1,838     14%       6,882      7,037      (2%)      
 Total                   $ 81,600         $ 83,369  (2%)      $ 252,023  $ 252,349  (0%)      
                                                                                              
 Net Sales by Geography                                                                       
 United States           $ 65,900         $ 69,064  (5%)      $ 203,580  $ 210,247  (3%)      
 International           15,700           14,305    10%       48,443     42,102     15%       
 Total                   $ 81,600         $ 83,369  (2%)      $ 252,023  $ 252,349  (0%)      
                                                                                              
 (a) As if AngioDynamics (excluding LC Beads) and Navilyst Medical were combined in all periods.    
 (b) Days sales outstanding for the three months ended Feb 28, 2013 and Feb 29, 2012, were 60 and 61 days, respectively. 
 (c) Days sales outstanding for the nine months ended Feb 28, 2013 and Feb 29, 2012, were 187 and 188 days, respectively. 


(c) Days sales outstanding for the nine months ended Feb 28, 2013 and Feb 29, 2012, were 187 and
188 days, respectively.

CONTACT: Company Contact:
         AngioDynamics Inc.
         Mark Frost, CFO
         (800) 772-6446 x1981
         mfrost@AngioDynamics.com
         
         Investor Relations Contacts:
         EVC Group, Inc.
         Greg Gin/Robert Jones
         (646) 445-4801; (646) 201-5447
         ggin@evcgroup.com;
         bjones@evcgroup.com
         
         Media Contact:
         EVC Group, Inc.
         Chris Gale
         (646) 201-5431
         cgale@evcgroup.com

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.