On July 16, 2024, AngioDynamics Inc (ANGO, Financial) released its 8-K filing for the second quarter of fiscal year 2024. AngioDynamics Inc designs, manufactures, and sells medical, surgical, and diagnostic devices used by healthcare providers for treating peripheral vascular disease and in oncology and surgical settings. The company generates maximum revenue from Endovascular Therapies, with the majority of its revenue derived from the United States.
Performance and Challenges
AngioDynamics Inc (ANGO, Financial) reported net sales of $78.68 million for the quarter, which, after pro forma adjustments, resulted in $66.74 million. This represents a 3.5% decline from the same period last year. The company faced significant challenges, including the sale and discontinuation of several business lines, which impacted its revenue and profitability.
The gross profit for the quarter was $40.06 million, or 50.9% of net sales, but after adjustments, the gross profit stood at $36.61 million, or 54.8% of net sales. Operating expenses were $52.87 million, which, after adjustments, were reduced to $50.19 million. The company reported a net loss of $2.73 million on a pro forma basis, compared to a net loss of $18.14 million in the same period last year.
Financial Achievements
Despite the challenges, AngioDynamics Inc (ANGO, Financial) achieved several financial milestones. The company's Med Tech segment reported net sales of $25.86 million, which, after adjustments, were $25.73 million, reflecting a 13.3% growth. The Med Device segment, however, saw a decline, with adjusted net sales of $41.02 million, down from $58.72 million.
Key Financial Metrics
| Metric | Q2 2024 (Pro Forma) | Q2 2023 (Pro Forma) |
|---|---|---|
| Net Sales | $66.74 million | $61.71 million |
| Gross Profit | $36.61 million | $34.06 million |
| Operating Expenses | $50.19 million | $52.50 million |
| Net Loss | $(2.73) million | $(18.14) million |
| Adjusted EBITDA | $(1.07) million | $(3.78) million |
Analysis
AngioDynamics Inc (ANGO, Financial) continues to navigate through a challenging period marked by strategic divestitures and restructuring. The company's focus on its core Med Tech segment has shown positive growth, but the decline in the Med Device segment highlights the impact of the recent business sales and discontinuations. The reduction in operating expenses and the improvement in adjusted EBITDA are positive signs, indicating that the company is managing its costs effectively.
Overall, while AngioDynamics Inc (ANGO, Financial) missed analyst estimates, the company's strategic moves and cost management efforts provide a foundation for potential future growth. Investors will need to monitor how the company leverages its core strengths and navigates the ongoing challenges in the medical devices and instruments industry.
Explore the complete 8-K earnings release (here) from AngioDynamics Inc for further details.
