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): October 6, 2022
(Exact Name of Registrant as Specified in Charter)
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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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(Address of Principal Executive Offices) (Zip Code)
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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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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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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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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which
registered |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act
of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition
period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 – Results of Operations and Financial Condition.
On October 6, 2022, AngioDynamics, Inc. (“AngioDynamics”) issued a press release announcing financial results for the fiscal first
quarter ended August 31, 2022. A copy of the press release is furnished herewith as Exhibit 99.1.
The information set forth in Item 2.02 of this Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section. Furthermore, such information shall not be deemed to be incorporated by reference into any filing under the Securities
Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 7.01 – Regulation FD Disclosure.
Presentation slides discussing AngioDynamics and its fiscal first quarter ended August 31, 2022 are furnished herewith as Exhibit 99.2.
The presentation slides furnished pursuant to Item 7.01 of this Form 8-K (including Exhibit 99.2) shall not be deemed “filed” for
purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities under that Section. Furthermore, the presentation slides shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange
Act.
Forward-Looking Statements
This document and its attachments contain 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,” “projects”, “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 materially
from AngioDynamics’ expectations, expressed or implied. Factors that may affect the actual results achieved by AngioDynamics include, without limitation, the scale and scope of the COVID-19 global pandemic, the ability of AngioDynamics to develop its
existing and new products, technological advances and patents attained by competitors, infringement of AngioDynamics’ technology or assertions that AngioDynamics’ technology infringes the technology of third parties, the ability of AngioDynamics to
effectively compete against competitors that have substantially greater resources, 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 (including inflation, labor shortages and supply chain challenges including the cost and availability of raw materials), the results of on-going litigation, challenges with respect to third-party distributors or
joint venture partners or collaborators, the results of sales efforts, the effects of product recalls and product liability claims, changes in key personnel, the ability of AngioDynamics to execute on strategic initiatives, 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 obtain
regulatory clearances or approval of its products, or to integrate acquired 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, 2022. AngioDynamics does not assume any obligation to publicly update or revise any forward-looking statements for any reason.
Item 9.01 – Financial Statements and Exhibits.
(d) Exhibits.
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Exhibit No.
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Description
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Press Release, dated October 6, 2022.
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Presentation, dated October 6, 2022.
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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.
| ANGIODYNAMICS, INC. | ||||
| (Registrant) |
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Date: October 6, 2022
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By:
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/s/ Richard C. Rosenzweig | ||
| Name: | Richard C. Rosenzweig |
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| Title: |
Senior Vice President, General |
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| Counsel and Secretary | ||||
Exhibit 99.1
PRESS RELEASE
Investor Contact:
AngioDynamics, Inc.
Stephen Trowbridge, Executive Vice President & CFO
(518) 795-1408
AngioDynamics Reports Fiscal 2023 First Quarter
Financial Results; Reaffirms Guidance
Fiscal Year 2023 First Quarter Highlights
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•
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Net sales of $81.5 million increased 5.9% compared to the prior-year quarter
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o
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Med Tech net sales of $22.8 million increased 29.6%
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o
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Med Device net sales of $58.7 million decreased 1.1%
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•
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Gross margin of 51.9% declined 20 basis points year over year
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•
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GAAP loss per share of $0.33 and adjusted loss per share of $0.06
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•
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The Company commenced the Full Market Release of the AlphaVac F18 Mechanical Thrombectomy device
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Latham, New York, October 6, 2022 – AngioDynamics, Inc. (NASDAQ: ANGO), a leading
and transformative medical technology company focused on restoring healthy blood flow in the body’s vascular system, expanding cancer treatment options and improving quality of life for patients, today announced financial results for the first
quarter of fiscal year 2023, which ended August 31, 2022.
“We are pleased with our performance during the quarter as we continued to deliver on our long-term strategic objectives,” commented Jim Clemmer,
President and Chief Executive Officer of AngioDynamics, Inc. “The challenging and uncertain macro environment continued during our first fiscal quarter of 2023, with persistent inflation, as well as hospital staffing and procedural pressures. Our
commitment to executing our strategic plan based on our key growth drivers: Auryon, AngioVac, AlphaVac and NanoKnife, enabled us to build on the momentum we generated in fiscal 2022 to deliver solid results even in the face of this challenging
environment.”
First Quarter 2023 Financial Results
Net sales for the first quarter of fiscal 2023 were $81.5 million, an
increase of 5.9% compared to the prior-year quarter. Foreign currency translation did not have a significant impact on the Company's net sales in the quarter.
Med Tech net sales were $22.8 million, a 29.6% increase from the prior-year period. Med Tech includes the Auryon peripheral atherectomy platform,
the thrombus management platform and the NanoKnife irreversible electroporation platform. Growth was driven by Auryon sales during the quarter of $8.8 million, which increased 50.0%, thrombectomy sales of $10.0 million, which increased 31.8% and
NanoKnife disposable sales, which increased 12.3% compared to the first quarter of fiscal 2022.
Med Device net sales were $58.7 million, a decline of 1.1% compared to the prior-year period.
U.S. net sales in the first quarter of fiscal 2023 were $69.0 million, an increase of 7.1% from $64.5 million a year ago. International net sales
were $12.5 million roughly flat compared to a year ago.
Gross margin for the first quarter of fiscal 2023 was 51.9%, a decrease of 20 basis points compared to the first quarter of fiscal 2022. Gross
margin for the Med Tech business was 63.2%, a decline of 220 basis points from the first quarter of fiscal 2022. Gross margin for the Med Device business was 47.5%, a decline of 70 basis points compared to the first quarter of fiscal 2022. Gross
margin was negatively impacted by macro forces including labor shortages and increased costs for labor, raw materials and freight.
The Company recorded a net loss of $13.0 million, or a loss per share of $0.33, in the first quarter of fiscal 2023. This compares to a net loss
of $7.0 million, or a loss per share of $0.18, a year ago.
Excluding the items shown in the non-GAAP reconciliation table below, adjusted net loss for the first quarter of fiscal 2023 was $2.5 million,
and adjusted loss per share was $0.06, compared to adjusted net loss of $0.9 million and adjusted loss per share of $0.02 in the prior-year period.
Adjusted EBITDA in the first quarter of fiscal 2023, excluding the items shown in the reconciliation table below, was $3.0 million, compared to
adjusted EBITDA of $3.6 million in the first quarter of fiscal 2022.
In the first quarter of fiscal 2023, the Company used $24.7 million in operating cash, had capital expenditures of $0.8 million and additions to
Auryon placement and evaluation units of $2.2 million.
On August 31, 2022, the Company had $24.6 million in cash and cash equivalents, compared to $28.8 million in cash and cash equivalents on May 31,
2022.
During the first quarter, the Company refinanced its credit facility. The new credit facility provides for a $75 million secured revolving
credit facility with a maturity date of August 30, 2027 and a $30 million delayed-draw term loan. The proceeds of the delayed-draw term loan may be used for general corporate purposes, including primarily to finance the manufacturing costs of the
Auryon laser capital equipment of AngioDynamics and its subsidiaries. The Company had $25.0 million outstanding on the delayed-draw term loan and $25.0 million outstanding under its revolving credit facility at August 31, 2022.
Fiscal Year 2023 Financial Guidance
Management is reaffirming its previously issued fiscal year 2023
guidance. Management expects net sales to be in the range of $342 to $348 million, gross margin to be approximately 52.5% to 54.5% and adjusted
earnings per share in the range of $0.01 to $0.06 as it continues to invest in new product launches to drive future growth.
Conference Call
The Company's management will host a conference call today at 8:00 a.m. ET to discuss its first quarter results.
To participate in the conference call, dial 1-877-407-0784 (domestic) or +1-201-689-8560 (international) and refer to the passcode 13732702.
This conference call will also be webcast and can be accessed from the
“Investors” section of the AngioDynamics website at www.angiodynamics.com. The webcast replay of the call will be available at the
same site approximately one hour after the end of the call.
A recording of the call will also be available from 11:00 a.m. ET on Thursday, October 6, 2022, until 11:59 p.m. ET on Thursday, October 13,
2022. To listen to this recording, dial 1-844-512-2921 (domestic) or +1-412-317-6671 (international) and enter the passcode 13732702.
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 adjusted EBITDA, adjusted net income and adjusted earnings per share.
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 AngioDynamics' performance over different periods. By using these non-GAAP measures, 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. Please see the tables that follow for a reconciliation of non-GAAP measures to measures prepared in accordance with GAAP.
About AngioDynamics, Inc.
AngioDynamics is a leading and transformative medical technology
company focused on restoring healthy blood flow in the body’s vascular system, expanding cancer treatment options and improving quality of life for patients.
The Company’s innovative technologies and devices are chosen by
talented physicians in fast-growing healthcare markets to treat unmet patient needs. For more information, visit www.angiodynamics.com.
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," “projects”, "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 materially from
AngioDynamics' expectations, expressed or implied. Factors that may affect the actual results achieved by AngioDynamics include, without limitation, the scale and scope of the COVID-19 global pandemic, the ability of AngioDynamics to develop its
existing and new products, technological advances and patents attained by competitors, infringement of AngioDynamics' technology or assertions that AngioDynamics' technology infringes the technology of third parties, the ability of AngioDynamics to
effectively compete against competitors that have substantially greater resources, 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 (including inflation, labor shortages and supply chain challenges including the cost and availability of raw materials), the results of on-going litigation, challenges with respect to third-party distributors or
joint venture
partners or collaborators, the results of sales efforts, the effects of product recalls and product liability claims, changes in key personnel,
the ability of AngioDynamics to execute on strategic initiatives, 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 obtain regulatory clearances or approval of its products, or to integrate acquired 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, 2022. AngioDynamics does not assume any obligation to publicly update or revise any forward-looking statements for any reason.
In the United States, the NanoKnife System has received a 510(k) clearance by the Food and Drug Administration for use in the surgical ablation
of soft tissue and is similarly approved for commercialization in Canada, the European Union and Australia. The NanoKnife System has not been cleared for the treatment or therapy of a specific disease or condition.
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ANGIODYNAMICS, INC. AND SUBSIDIARIES
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CONSOLIDATED INCOME STATEMENTS
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(in thousands, except per share data)
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Three Months Ended
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||||||||
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Aug 31, 2022
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Aug 31, 2021
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|||||||
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(unaudited)
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||||||||
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Net sales
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$
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81,537
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$
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76,971
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||||
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Cost of sales (exclusive of intangible amortization)
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39,232
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36,832
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||||||
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Gross profit
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42,305
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40,139
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||||||
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% of net sales
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51.9
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%
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52.1
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%
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||||
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Operating expenses
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||||||||
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Research and development
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8,333
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7,394
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||||||
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Sales and marketing
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26,543
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24,446
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||||||
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General and administrative
|
10,101
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8,943
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||||||
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Amortization of intangibles
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4,837
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4,821
|
||||||
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Change in fair value of contingent consideration
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211
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195
|
||||||
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Acquisition, restructuring and other items, net
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5,581
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2,440
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||||||
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Total operating expenses
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55,606
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48,239
|
||||||
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Operating loss
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(13,301
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)
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(8,100
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)
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||||
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Interest expense, net
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(381
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)
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(156
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)
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||||
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Other expense, net
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(175
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)
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(352
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)
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||||
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Total other expense, net
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(556
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)
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(508
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)
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||||
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Loss before income tax benefit
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(13,857
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)
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(8,608
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)
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||||
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Income tax benefit
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(853
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)
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(1,636
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)
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||||
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Net loss
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$
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(13,004
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)
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$
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(6,972
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)
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||
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Loss per share
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||||||||
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Basic
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$
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(0.33
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)
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$
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(0.18
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)
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Diluted
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$
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(0.33
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)
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$
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(0.18
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)
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Weighted average shares outstanding
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||||||||
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Basic
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39,302
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38,734
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||||||
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Diluted
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39,302
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38,734
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||||||
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ANGIODYNAMICS, INC. AND SUBSIDIARIES
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GAAP TO NON-GAAP RECONCILIATION
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(in thousands, except per share data)
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Reconciliation of Net Loss to non-GAAP Adjusted Net Loss:
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||||||||
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Three Months Ended
|
||||||||
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Aug 31, 2022
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Aug 31, 2021
|
|||||||
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(unaudited)
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||||||||
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Net loss
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$
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(13,004
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)
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$
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(6,972
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)
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||
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Amortization of intangibles
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4,837
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4,821
|
||||||
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Change in fair value of contingent consideration
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211
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195
|
||||||
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Acquisition, restructuring and other items, net (1)
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5,581
|
2,440
|
||||||
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Tax effect of non-GAAP items (2)
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(111
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)
|
(1,371
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)
|
||||
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Adjusted net loss
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$
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(2,486
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)
|
$
|
(887
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)
|
||
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Reconciliation of Diluted Loss Per Share to non-GAAP Adjusted Diluted Loss Per Share:
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||||||||
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Three Months Ended
|
||||||||
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Aug 31, 2022
|
Aug 31, 2021
|
|||||||
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(unaudited)
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||||||||
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Diluted loss per share
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$
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(0.33
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)
|
$
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(0.18
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)
|
||
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Amortization of intangibles
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0.12
|
0.12
|
||||||
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Change in fair value of contingent consideration
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0.01
|
0.01
|
||||||
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Acquisition, restructuring and other items, net (1)
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0.14
|
0.06
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||||||
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Tax effect of non-GAAP items (2)
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—
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(0.03
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)
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|||||
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Adjusted diluted loss per share
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$
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(0.06
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)
|
$
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(0.02
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)
|
||
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Adjusted diluted sharecount (3)
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39,302
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38,734
|
||||||
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(1) Includes costs related to merger and acquisition activities, restructuring, and unusual items, including asset impairments and
write-offs, certain litigation, and other items.
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(2) Adjustment to reflect the income tax provision on a non-GAAP basis has been calculated assuming no valuation allowance on the Company's U.S. deferred
tax assets and an effective tax rate of 23% for the periods ended August 31, 2022 and 2021.
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(3) Diluted shares may differ for non-GAAP measures as compared to GAAP due to a GAAP loss.
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ANGIODYNAMICS, INC. AND SUBSIDIARIES
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GAAP TO NON-GAAP RECONCILIATION (Continued)
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(in thousands, except per share data)
|
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Reconciliation of Net Loss to Adjusted EBITDA:
|
||||||||
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Three Months Ended
|
||||||||
|
Aug 31, 2022
|
Aug 31, 2021
|
|||||||
|
(unaudited)
|
||||||||
|
Net loss
|
$
|
(13,004
|
)
|
$
|
(6,972
|
)
|
||
|
Income tax benefit
|
(853
|
)
|
(1,636
|
)
|
||||
|
Interest expense, net
|
381
|
156
|
||||||
|
Depreciation and amortization
|
7,621
|
6,958
|
||||||
|
Change in fair value of contingent consideration
|
211
|
195
|
||||||
|
Stock based compensation
|
3,024
|
2,429
|
||||||
|
Acquisition, restructuring and other items, net (1)
|
5,581
|
2,440
|
||||||
|
Adjusted EBITDA
|
$
|
2,961
|
$
|
3,570
|
||||
|
Per diluted share:
|
||||||||
|
Adjusted EBITDA
|
$
|
0.08
|
$
|
0.09
|
||||
|
(1) Includes costs related to merger and acquisition activities, restructuring, and unusual items, including asset impairments and
write-offs, certain litigation, and other items.
|
|
ANGIODYNAMICS, INC. AND SUBSIDIARIES
|
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NET SALES BY PRODUCT CATEGORY AND BY GEOGRAPHY
|
|
(in thousands)
|
|
Three Months Ended
|
|||||||||
|
Aug 31, 2022
|
Aug 31, 2021
|
% Growth
|
Currency Impact
|
Constant Currency Growth
|
|||||
|
(unaudited)
|
|||||||||
|
Net Sales
|
|||||||||
|
Med Tech
|
$ 22,817
|
$ 17,607
|
29.6%
|
||||||
|
Med Device
|
58,720
|
59,364
|
(1.1)%
|
||||||
|
$ 81,537
|
$ 76,971
|
5.9%
|
0.6%
|
6.5%
|
|||||
|
Net Sales by Geography
|
|||||||||
|
United States
|
$ 69,023
|
$ 64,464
|
7.1%
|
||||||
|
International
|
12,514
|
12,507
|
0.1%
|
3.7%
|
3.8%
|
||||
|
$ 81,537
|
$ 76,971
|
5.9%
|
0.6%
|
6.5%
|
|||||
GROSS PROFIT BY PRODUCT CATEGORY
(in thousands)
|
Three Months Ended
|
||||||||||||
|
Aug 31, 2022
|
Aug 31, 2021
|
% Change
|
||||||||||
|
(unaudited)
|
||||||||||||
|
Med Tech
|
$
|
14,429
|
$
|
11,517
|
25.3
|
%
|
||||||
|
Gross profit % of sales
|
63.2
|
%
|
65.4
|
%
|
||||||||
|
Med Device
|
$
|
27,876
|
$
|
28,622
|
(2.6
|
)%
|
||||||
|
Gross profit % of sales
|
47.5
|
%
|
48.2
|
%
|
||||||||
|
Total
|
$
|
42,305
|
$
|
40,139
|
5.4
|
%
|
||||||
|
Gross profit % of sales
|
51.9
|
%
|
52.1
|
%
|
||||||||
|
ANGIODYNAMICS, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(in thousands)
|
|
Aug 31, 2022
|
May 31, 2022
|
|||||||
|
(unaudited)
|
(audited)
|
|||||||
|
Assets
|
||||||||
|
Current assets:
|
||||||||
|
Cash and cash equivalents
|
$
|
24,564
|
$
|
28,825
|
||||
|
Accounts receivable, net
|
53,586
|
52,304
|
||||||
|
Inventories
|
57,609
|
51,392
|
||||||
|
Prepaid expenses and other
|
15,612
|
10,824
|
||||||
|
Total current assets
|
151,371
|
143,345
|
||||||
|
Property, plant and equipment, net
|
46,189
|
45,005
|
||||||
|
Other assets
|
11,078
|
10,963
|
||||||
|
Intangible assets, net
|
147,976
|
152,380
|
||||||
|
Goodwill
|
201,038
|
201,058
|
||||||
|
Total assets
|
$
|
557,652
|
$
|
552,751
|
||||
|
Liabilities and stockholders' equity
|
||||||||
|
Current liabilities:
|
||||||||
|
Accounts payable
|
$
|
29,258
|
$
|
28,047
|
||||
|
Accrued liabilities
|
25,558
|
34,842
|
||||||
|
Current portion of contingent consideration
|
8,892
|
8,783
|
||||||
|
Other current liabilities
|
2,682
|
2,652
|
||||||
|
Total current liabilities
|
66,390
|
74,324
|
||||||
|
Long-term debt
|
49,798
|
25,000
|
||||||
|
Deferred income taxes
|
15,115
|
16,037
|
||||||
|
Contingent consideration
|
8,266
|
8,165
|
||||||
|
Other long-term liabilities
|
4,042
|
4,736
|
||||||
|
Total liabilities
|
143,611
|
128,262
|
||||||
|
Stockholders' equity
|
414,041
|
424,489
|
||||||
|
Total Liabilities and Stockholders' Equity
|
$
|
557,652
|
$
|
552,751
|
||||
|
ANGIODYNAMICS, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(in thousands)
|
|
Three Months Ended
|
||||||||
|
Aug 31, 2022
|
Aug 31, 2021
|
|||||||
|
(unaudited)
|
||||||||
|
Cash flows from operating activities:
|
||||||||
|
Net loss
|
$
|
(13,004
|
)
|
$
|
(6,972
|
)
|
||
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
|
Depreciation and amortization
|
7,660
|
6,997
|
||||||
|
Non-cash lease expense
|
621
|
602
|
||||||
|
Stock based compensation
|
3,024
|
2,429
|
||||||
|
Change in fair value of contingent consideration
|
211
|
195
|
||||||
|
Deferred income taxes
|
(907
|
)
|
(1,690
|
)
|
||||
|
Change in accounts receivable allowances
|
45
|
(44
|
)
|
|||||
|
Fixed and intangible asset impairments and disposals
|
87
|
30
|
||||||
|
Other
|
(96
|
)
|
(46
|
)
|
||||
|
Changes in operating assets and liabilities:
|
||||||||
|
Accounts receivable
|
(1,425
|
)
|
(36
|
)
|
||||
|
Inventories
|
(6,238
|
)
|
(670
|
)
|
||||
|
Prepaid expenses and other
|
(5,733
|
)
|
(3,354
|
)
|
||||
|
Accounts payable, accrued and other liabilities
|
(8,990
|
)
|
(6,345
|
)
|
||||
|
Net cash used in operating activities
|
(24,745
|
)
|
(8,904
|
)
|
||||
|
Cash flows from investing activities:
|
||||||||
|
Additions to property, plant and equipment
|
(809
|
)
|
(1,021
|
)
|
||||
|
Additions to placement and evaluation units
|
(2,227
|
)
|
(4,471
|
)
|
||||
|
Acquisition of intangibles
|
(540
|
)
|
—
|
|||||
|
Cash paid in acquisition
|
—
|
(3,600
|
)
|
|||||
|
Net cash used in investing activities
|
(3,576
|
)
|
(9,092
|
)
|
||||
|
Cash flows from financing activities:
|
||||||||
|
Proceeds from borrowings on long-term debt
|
70,000
|
5,000
|
||||||
|
Repayment of long-term debt
|
(45,000
|
)
|
—
|
|||||
|
Deferred financing costs on long-term debt
|
(706
|
)
|
—
|
|||||
|
Proceeds from exercise of stock options and employee stock purchase plan
|
82
|
446
|
||||||
|
Net cash provided by financing activities
|
24,376
|
5,446
|
||||||
|
Effect of exchange rate changes on cash and cash equivalents
|
(316
|
)
|
(139
|
)
|
||||
|
Decrease in cash and cash equivalents
|
(4,261
|
)
|
(12,689
|
)
|
||||
|
Cash and cash equivalents at beginning of period
|
28,825
|
48,161
|
||||||
|
Cash and cash equivalents at end of period
|
$
|
24,564
|
$
|
35,472
|
||||
Exhibit 99.2
