UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
__________
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date
of Report (Date of earliest event reported): January 3, 2008
AngioDynamics,
Inc.
(Exact
Name of Registrant as Specified in Charter)
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Delaware
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000-50761
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11-3146460
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(State
or Other Jurisdiction
of Incorporation)
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(Commission
File
Number)
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(IRS
Employer
Identification
No.)
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603
Queensbury Avenue, Queensbury, New
York 12804
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(Address
of Principal Executive
Offices) (Zip
Code)
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(518)
798-1215
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(Registrant’s
telephone number, including area
code)
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Check
the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the filing
obligation of the registrant under any of the following provisions:
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o
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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o
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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o
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2 (b))
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o
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4 (c))
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Item
2.02 Results of Operations and Financial Condition
On
January 3, 2008, AngioDynamics, Inc. (the “Company”) issued a press release, a
copy of which is attached as Exhibit 99.1, announcing its financial results
for
the second quarter of fiscal 2008, which ended on November 30, 2007, and that
it
will hold a conference call beginning at 4:30 p.m. Eastern time, which will
also
be webcast live, to discuss the announcement.
The
information provided pursuant to this Item 2.02 of this current report,
including the information contained in Exhibit 99.1 is being furnished pursuant
to such Item and shall not be deemed to be “filed” for the purpose of Section 18
of the Securities Exchange Act of 1934, as amended, or otherwise subject to
the
liabilities of that Section.
Forward-Looking
Statements
This
document and its attachments include "forward-looking statements" intended
to
qualify for the safe harbor from liability established by the Private Securities
Litigation Reform Act of 1995. Investors can identify these statements by the
fact that they do not relate strictly to historical or current facts. These
statements contain words such as "expect,"
"reaffirm," "anticipate," "plan," "believe," "estimate," "may," "will,"
"predict," "project," "might," "intend," "potential," "could," "would,"
"should," "estimate," "seek," "continue," "pursue," or "our future success
depends," or the negative or other variations thereof or comparable terminology,
are intended
to identify such forward-looking statements. In particular, they include
statements relating to, among other things, future actions, strategies, future
performance, future financial results of the Company. These
forward-looking statements are based on current expectations and projections
about future events.
Investors
are cautioned that forward-looking statements are not guarantees of future
performance or results and involve risks and uncertainties that cannot be
predicted or quantified and, consequently, the actual performance or results
of
the Company may differ materially from those expressed or implied by such
forward-looking statements. Such risks and uncertainties include, but
are not limited to, the factors described from time to time in the Company's
reports filed with the SEC, including the Company's Form 10-K for the fiscal
year ended June 2, 2007 and Form 10-Q for the period ended August 31, 2007,
financial community and rating agency perceptions of the Company; the effects
of
economic, credit and capital market conditions on the economy in general, and
on
medical device companies in particular; domestic and foreign health care reforms
and governmental laws and regulations; third-party relations and approvals,
technological advances and patents attained by competitors; and challenges
inherent in new product development, including obtaining regulatory
approvals. In addition
to the
matters described above, the ability of the Company to develop its products,
future actions by the FDA or other regulatory agencies, results of pending
or
future clinical trials, the outcome of pending patent litigation, overall
economic conditions, general market conditions, market acceptance, foreign
currency exchange rate fluctuations, and the effects on pricing from group
purchasing organizations and competition, may affect the actual results achieved
by the Company.
Any
forward-looking statements are made pursuant to the Private Securities
Litigation Reform Act of 1995 and, as such, speak only as of the date made.
The
Company disclaims any obligation to update the forward-looking
statements. Investors are cautioned not to place undue reliance on
these forward-looking statements which speak only as of the date stated, or
if
no date is stated, as of the date of this document.
Item
9.01 – Financial Statements and Exhibits.
(d)
Exhibits.
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Exhibit No.
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Description
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99.1
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Press
Release dated January 3, 2008.
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SIGNATURE
Pursuant
to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report
to
be signed on its behalf by the undersigned hereunto duly authorized.
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ANGIODYNAMICS,
INC.
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(Registrant)
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||||||
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Date:
January 4, 2008
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By:
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/s/
Joseph Gersuk
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Joseph
Gersuk
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||||||
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Chief
Financial Officer
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EXHIBIT
INDEX
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Exhibit No.
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Description
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99.1
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Press
Release dated January 3, 2008.
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EXHIBIT
99.1
FOR
IMMEDIATE RELEASE
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Company
Contact:
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Investor
Relations Contacts:
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Media
Contact:
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AngioDynamics,
Inc.
D.
Joseph Gersuk, CFO
(800)
772-6446 x1608
jgersuk@AngioDynamics.com
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EVC
Group, Inc.
Doug
Sherk
(415)
896-6820
dsherk@evcgroup.com
Julie
Huang
(646)
443-6963
jhuang@evcgroup.com
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EVC
Group, Inc.
Steve
DiMattia
(646)
201-5445
sdimattia@evcgroup.com
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AngioDynamics
Reports 70% Second Quarter
Sales Growth
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·
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Operating
Income Increases
59%
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·
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Net
Income Grows 26% to $3.1 Million
or $0.13 Per
Share
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·
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(Non
GAAP) Adjusted Income
Increases140%
to
$7.3 Million or $0.30 Per
Share
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·
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Guidance
Reaffirmed
for
Fiscal Year
2008
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·
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Conference
Call Begins Today at
4:30 p.m. Eastern Time
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QUEENSBURY,
NY
(January 3, 2008) –AngioDynamics
(NASDAQ: ANGO), a leading
provider of innovative medical devices used by interventional radiologists
and surgeons
for the minimally invasive treatment of cancer and peripheral vascular disease,
today reported financial results for the second quarter of fiscal 2008, which
ended on November 30,
2007.
For
the second fiscal quarter,
the Company reported
$41.5
million in net sales, which is 70% higher than the $24.4 million reported for
the second quarter of fiscal 2007. The growth in sales includes sales
from RITAMedical Systems which
was acquired on January 29,
2007. Operating income rose 59%
to $4.8million
from $3.0 million for the same
period a year ago.
Gross
margin rose to
61.3% from
58.5% in the prior-year second
quarter. Second quarter net income increased 26% to $3.1 million from
$2.5 million, while GAAP EPS decreased to $0.13 per share from $0.15 per share
from the same period a year ago due to the 53% increase in diluted shares outstanding primarily
related to
the acquisition of RITA
Medical Systems.
“We
had another excellent quarter where
we executed and delivered results in
line with our expectations,”said
Eamonn Hobbs, president and chief executive
officer. “Net
sales
were
70%
higher over the same period last
year. We are
particularly pleased with the 20% year over year sales growth in our vascular
access ports businessand
the 26% year over year sales growth, on a pro forma basis, of our oncology
products group.”
“The
quarter featured strong sales performance
from the
Habib®electrosurgical
device, Morpheus®CT PICC
and bedside insertion kit, SmartPort™vascular access port,
Profiler®balloon dilatation catheter
and LC
Beads™embolization
particles. Second quarter fiscal 2008 AngioDynamics
product lines sales faced a
very difficult comparison and grew 7% over the prior year
period. The
difficult comparison resulted after AngioDynamics product lines sales grew
30%
in the second quarter of fiscal 2007 over the same period of fiscal
2006. Based on
current trends, we believe that the AngioDynamics product lines sales will
grow
at least 15% year over year during the third quarter of fiscal
2008,” continued Mr.
Hobbs.
Of
the $41.5 million in second quarter net sales, AngioDynamics products
constituted $26.2 million and RITA Medical products constituted $15.3 million.
AngioDynamics product sales grew 7% in the second quarter over the year ago
quarter. On a pro forma basis, RITA Medical product sales grew 18% in the second
quarter versus the comparable period a year ago.
For
the first half of fiscal 2008, net sales were $79.0 million, which is 77% higher
than net sales of $44.6 million in the first half of fiscal 2007, and reflected
sales gains across the Company's diverse product portfolio. Net income for
the
first half of fiscal 2008 was $5.5 million, up 26% over net income of $4.4
million in the comparable fiscal 2007 period, and diluted earnings per share
were $0.23, compared to $0.27 earnings per share a year ago.
The
Company continued to execute on its product development and research plans.
During the second quarter of fiscal 2008, the Company:
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·
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Highlighted
a study outlining a significant 5-year survival rate after the ablation
of
colorectal liver metastases published in the October 2007 issue of
the
Annals of Surgery.
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Received
a U.S. Patent that covers its endovascular laser treatment device
with a
spacer that positions the fiber tip away from the vessel wall, and
for the
method of using that device.
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Made
preparations to provide its venous product line customers with
uninterrupted supply regardless of the outcome of pending
litigation.
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Continued
to work alongside Oncobionic on the Irreversible Electroporation
(IRE)
development program which uses needles and image guidance similar
to
existing thermal ablation technologies, but instead of ‘cooking’ or
‘freezing’ the targeted tissue, IRE disrupts the cell membrane, thereby
destroying the targeted cells. Important new parameters and stricter
requirements were added to the
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| human trials focused on malignant prostate cancer which are expected to be performed by a leading clinician based in Italy in calendar 2008. |
Fiscal
2008 Guidance
The
Company affirmed its outlook for fiscal 2008:
--
Net sales in the range of $170-$175 million
--
Gross profit margin in the range of 61-62%
--
The completion of the RITA Medical integration is expected to yield $9 million
in cost savings in fiscal 2008
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GAAP operating income in the range of $20-$22 million
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GAAP EPS in the range of $0.56-$0.60
--
Non-GAAP adjusted income of at least $30 million. Non-GAAP adjusted income
excludes stock-based compensation, amortization of intangibles and includes
the
cash benefit from the use of NOLs.
Conference
Call
AngioDynamics
management will host a conference call to discuss this announcement today
beginning at 4:30 p.m. Eastern Time. To participate in the call, please dial
(800) 218-0204 from the U.S. or (303) 262-2142 from outside the U.S.
In
addition, individuals can listen to the call on the Internet by visiting the
investor relations portion of the Company's Web site at
http://investor.angiodynamics.com. To listen to the live call, please
go to the website 15 minutes prior to its start to register, download, and
install the necessary audio software.
A
replay will be available on the website. A telephone replay of the call will
be
available from 7:30 p.m. Eastern Time today through 11:59 p.m. Eastern Time
on
January 11 by dialing (800) 405-2236 from the U.S. or (303) 590-3000 from
outside the U.S., and entering the passcode 11104157.
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
the
Company's 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, the Company
has
reported non-GAAP adjusted income and adjusted EPS. Adjusted income and adjusted
EPS excludes certain non-cash expenses relating to the acquisition of RITA
Medical, stock-based compensation expense (net of tax), and includes the cash
benefit from the use of acquired net operating losses. Management
uses these measures in its internal analysis and review of operational
performance. Management believes that these measures provide investors with
useful information in comparing the Company's performance over different
periods,
particularly
when comparing this period to periods in which the Company did not incur any
expenses relating to these activities or items. By using these non-GAAP
measures, management believes that investors get a better picture of the
performance of the Company's underlying business. Management encourages
investors to review the Company's financial results prepared in accordance
with
GAAP to understand the Company's performance taking into account all relevant
factors, including those that may only occur from time to time but have a
material impact on the Company's financial results. Please see the tables that
follow for a reconciliation of GAAP to non-GAAP measures.
Safe
Harbor
The
statements made in this document include forward-looking statements intended
to
qualify for the safe harbor from liability established by the Private Securities
Litigation Reform Act of 1995. Words such as "expects," "reaffirms,"
"anticipates," "plans," "believes," "estimates," or variations of such words
and
similar expressions, are intended to identify such forward-looking statements.
Investors are cautioned that actual events or results may differ from the
Company's expectations. In addition to the matters described above, the ability
of the Company to develop its products, timing associated with initiation or
completion of its clinical trials, future actions by the FDA or other regulatory
agencies, results of pending or future clinical trials, the outcome of pending
patent litigation, overall economic conditions, general market conditions,
market acceptance, foreign currency exchange rate fluctuations, the effects
on
pricing from group purchasing organizations and competition, as well as the
risk
factors listed from time to time in the SEC filings of AngioDynamics, including
but not limited to its Annual Report on Form 10-K for the year ended June 2,
2007, may affect the actual results achieved by the Company.
About
AngioDynamics
AngioDynamics,
Inc. is a leading provider of innovative medical devices used by interventional
radiologists, surgeons, and other physicians for the minimally invasive
treatment of cancer and peripheral vascular disease. The Company's diverse
product line includes market-leading radiofrequency ablation systems, vascular
access products, angiographic products and accessories, dialysis products,
angioplasty products, drainage products, thrombolytic products, embolization
products and venous products.
More
information is available at www.angiodynamics.com.
(Tables
to Follow)
