ALBANY, N.Y.--(BUSINESS WIRE)--
AngioDynamics (NASDAQ: ANGO), a leading provider of
innovative, minimally invasive medical devices for vascular access,
surgery, peripheral vascular disease and oncology, today reported
preliminary unaudited financial results for the fiscal 2011 fourth
quarter, as well as a transition in company leadership and its IDE
filing for the NanoKnife® System study in pancreatic cancer.
Preliminary Fiscal Fourth Quarter Financial Results
The Company expects fourth quarter net sales to be approximately $56.4
million compared with fourth quarter 2010 net sales of $60.3 million.
NanoKnife System sales are expected to be approximately $2.7 million
compared with $1.9 million in the preceding quarter and $1.0 million in
the prior year fourth quarter. The Company had previously provided
guidance for fiscal 2011 that resulted in a fourth quarter revenue
outlook of between $57.5 and $60.5 million. For the full fiscal year,
net sales are expected to be flat compared with 2010 at $216.0 million
while NanoKnife System sales grew to $7.3 million from $2.5 million in
For the fiscal fourth quarter of 2011, Oncology/Surgery sales grew
approximately 11% from fourth quarter 2010 to approximately $18.5
million. Vascular sales declined approximately 13% to $37.9 million.
International sales in the fourth quarter increased 28% to approximately
$7.9 million from the prior year period, and domestic sales of
approximately $48.5 million declined 10% from the prior year period.
AngioDynamics will record a one-time, non-cash charge in the fourth
quarter of $4.2 million, or $0.11 after-tax loss per share, reflecting
the Company's decision to discontinue the development of a product using
technology licensed in 2006 from Medron. Prior to the recognition of
this non-cash charge, for the fourth quarter AngioDynamics is expected
to earn between $0.10 and $0.11 per fully diluted common share. On a
GAAP basis, the Company is expected to report approximately breakeven
EPS results for the fourth quarter. Cash and investments as of May 31,
2011, were approximately $131.5 million compared with $120.2 million at
February 28, 2011.
Final results for the fiscal fourth quarter and full year 2011 are
expected to be released on July 14, 2011.
AngioDynamics also reported today that Jan Keltjens has resigned as
President, Chief Executive Officer and a member of the Board of
Directors. A search for his replacement is underway and includes a
defined set of candidates. Mr. Keltjens resignation is effective
immediately, and Scott Solano, AngioDynamics' Senior Vice President and
Chief Technology Officer, will serve as the Company's interim CEO until
the appointment of a new CEO.
"The Board and Jan agree that now is an opportune time for a change in
the leadership of AngioDynamics," said Vincent Bucci, Chairman. "We
thank Jan for his efforts during the past two-plus years and wish him
the very best in his future endeavors.
"The Board believes that while AngioDynamics can and will become one of
the faster growing companies in the medical device industry, we have
underperformed in the recently-completed fiscal year," added Mr. Bucci.
"The Company's numerous strengths include a robust R&D pipeline being
well managed by Scott Solano and the very promising NanoKnife®
System, which is generating impressive clinical data. In May, the FDA
approved our IDE for the System's study in prostate cancer and we
recently submitted our IDE application to the FDA for the NanoKnife
study in pancreatic cancer. Additionally, we have more than $130 million
in cash, which can be invested in growth strategies. In executing our
search for a new CEO, the Board believes that the successful candidate
will have a track record of generating growth and shareholder value, as
well as strong experience with broad medical device product lines
involving complex sales and marketing processes.
"During this transition period, we are fortunate to have an executive
with the skills and experience that Scott brings to AngioDynamics,"
continued Mr. Bucci. "During our succession planning process, Scott
indicated he would not like to be considered for the CEO position should
it become available, but we are grateful for his willingness to serve in
that capacity on an interim basis, and we fully expect that he will
return to his CTO position with the appointment of the new CEO."
Before joining AngioDynamics, Mr. Solano served as President and Chief
Executive Officer of Arterial Vascular Engineering, a 6,000-person
company focused on cardiovascular stents, acquired by Medtronic, Inc. in
1999 for $3.7 billion. Mr. Solano worked at Medtronic for more than
seven years holding executive positions of increasing responsibility in
technology management, new product development and operations, primarily
in the Company's Interventional Vascular business.
Use of Non-GAAP Measures
Management uses non-GAAP measures to establish operational goals, and
believes that non-GAAP measures may assist investors in analyzing the
underlying trends in AngioDynamics' business over time. Investors should
consider these non-GAAP measures in addition to, not as a substitute for
or as superior to, financial reporting measures prepared in accordance
with GAAP. In this news release, AngioDynamics has reported non-GAAP
Earnings Per Share. Management uses this measure in its internal
analysis and review of operational performance. Management believes that
this measure provides investors with useful information in comparing
AngioDynamics' performance over different periods. By using this
non-GAAP measure, management believes that investors get a better
picture of the performance of AngioDynamics' underlying business.
Management encourages investors to review AngioDynamics' financial
results prepared in accordance with GAAP to understand AngioDynamics'
performance taking into account all relevant factors, including those
that may only occur from time to time but have a material impact on
AngioDynamics' financial results.
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, vascular access products, angiographic products and
accessories, angioplasty products, drainage products, thrombolytic
products, embolization products and venous products. More information is
available at www.angiodynamics.com.
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, prospects, 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," "promises," 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, future actions by the FDA or other regulatory agencies,
results of pending or future clinical trials, overall economic
conditions, the results of on-going litigation, 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, 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, 2010, and its Quarterly
Report on Form 10-Q for the quarterly period ended February 28, 2011.
AngioDynamics does not assume any obligation to publicly update or
revise any forward-looking statements for any reason.
Gersuk, CFO, 800-772-6446 x1608
Chris Gale, 646-201-5431
Source: AngioDynamics, Inc.
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