Q1 2024 AngioDynamics Inc Earnings Call

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Speaker 1: Good morning and welcome to the Angio Dynamics Fiscal Year 2024 first quarter earnings conference call. At this time all participants are in a-

Good morning, and welcome to the Angio dynamics fiscal year 'twenty 'twenty four first quarter earnings conference call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation.

Speaker 1: If anyone should require operator assistance during the conference, please press star zero on your telephone keypad.

If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad as a reminder, this conference call is being recorded.

Speaker 1: The news release detailing Angiodynamics Fiscal 2024 first quarter results crossed the wire earlier this morning.

News release detailing Angela dynamics fiscal 'twenty 'twenty four first quarter results crossed the wire earlier. This morning and is available on the Companys website. This conference call is also being broadcast live over the Internet at the investors section of the company's website at Www Dot Angio dynamics Dot com and the webcast replay of the call will be available.

Speaker 1: This conference call is also being broadcast live over the internet at the investors section of the company's website at www.sasktel.com.

Speaker 1: And the webcast replay of the call will be available at the same site approximately 1 hour after.

At the same site approximately one hour after the end of today's call.

Speaker 1: Before we begin, I would like to caution listeners that during the course of this conference call the company will make projections or forward-looking statements regarding

Before we begin I would like to caution listeners that during the course of this conference call. The company will make projections or forward looking statements regarding future events, including statements about expected revenue adjusted earnings and gross margins for fiscal year 'twenty 'twenty four as well as trends that May continue management encourage you to review the company's past and future filings.

Speaker 1: about expected revenue, adjusted earnings, and gross margins for fiscal year 20...

Speaker 1: Management encourages you to review the company's past and future filings with the SEC, including

With the SEC, including without limitation, the company's forms 10-Q, and 10-K, which identify specific factors that may cause the actual results or events to differ materially from those described in the forward looking statements.

Speaker 1: forms 10Q and 10K, which identify specific factors that may cause the actual results or

Speaker 1: The company will also discuss certain non-GAAP and pro forma financial measures during this call. The company uses these measures to establish operational goals and review operational goals.

Company will also discuss certain non-GAAP and pro forma financial measures during this call.

Management uses these measures to establish operational goals and review operational performance and believes that these measures may assist investors in analyzing the underlying trends and the companys business over time investors should consider these non-GAAP and pro forma measures. In addition to not as a substitute for or as superior to financial reporting measures.

Speaker 1: these measures may assist investors in analyzing the underlying trends in the company's business over time. Investors should consider these non-GAAP and pro forma measures in addition to not as a substitute for happening in the industry.

Prepared in accordance with GAAP.

Speaker 1: This slide package offering insight into the company's financial results is also available on the investor section of the company's website under events and presentations. This presentation should be read in conjunction with the press release discussing the...

A slide package offering insight into the company's financial results is also available on the investors section of the company's website under events and presentations.

This presentation should be read in conjunction with the press release discussing the company's operating results and financial performance joined this morning Conference call.

Speaker 1: I now turn the call over to Jim Clemmer, Angiodynamics President and Chief Executive Officer.

I'd now like to turn the call over to Jim Clemmer, Angio dynamics, President and Chief Executive Officer, Mr. Clemmer.

Speaker 2: Thank you and good morning everyone and thank you for joining us for Ranger Dynamics fiscal 2024 first quarter earnings call.

Thank you and good morning, everyone and thank you for joining us for Andrew dynamics fiscal 'twenty 'twenty four first quarter earnings call.

Speaker 2: Joining me on today's call is Steve Trowbridge, angiodynamics executive vice president and chief financial officer, who will provide a detailed analysis of our first quarter financial performance.

Joining me on today's call is Steve Trowbridge, Andrew dynamics, Executive Vice President and Chief Financial Officer, who will provide a detailed analysis of our first quarter financial performance.

Speaker 2: Unless otherwise noted, all financial metrics and growth rates provided during the call today will be on a performant basis, which excludes the impact of our divested dialysis and biocentric businesses in both our fiscal 24 and fiscal 24.

Unless otherwise noted all financial metrics and growth rates provided during the call today will be on a pro forma basis, which excludes the impact of our divested dialysis and virus century businesses in both our fiscal 'twenty four and.

In fiscal 'twenty three first quarters.

Speaker 2: in our first quarter of FY24 was highlighted by the attainment of important milestones in our long-term strategy and is a solid start financially against our fiscal year goal.

And our first quarter of FY 'twenty four was highlighted by the attainment of important milestones in our long term strategy.

A solid start financially against our fiscal year goals.

Speaker 2: Over the last few quarters, we've outlined for you several areas where we were focused on improving.

Over the last few quarters, we've outlined for you several areas, but we were focused on improving.

Speaker 2: And I'm happy to say that we are seeing improvements here during the first quarter, although there's still more to come.

And I'm happy to say that we are seeing improvements here during the first quarter, although there is still more to come.

Speaker 2: We ended the first quarter with revenue of $78 million, representing growth of approximately 6% year over year, led by growth of approximately 13% from our MedTech segment.

We ended the first quarter with revenue of $78 million representing growth of approximately 6% year over year.

Led by growth of approximately 13% from our med Tech segments.

Speaker 2: Our adjusted Proforma EPS was a loss of $0.13 and was in line with our expectations.

Our adjusted pro forma EPS was a loss of 13 cents and was in line with our expectations.

Speaker 2: This excludes approximately 700,000 in sales from the divested businesses during the six business days in June that we still own.

This excludes approximately 700000 in sales from the divested businesses during the six business days in June that we still own to them.

Speaker 2: Beyond our financial performance, we made important progress on key milestones related to our long-term strategy.

Beyond our financial performance, we made important progress on key milestones related to our long term strategy.

Speaker 2: As we have stated, it is our mission to address meaningful treatment gaps in large, high-growth markets with a focus on cardiovascular disease and cancer.

As we have stated it is our mission to address meaningful treatment gaps in large high growth markets with a focus on cardiovascular disease and cancer.

Speaker 2: During our first quarter, we enrolled and treated our final patient in our preserve study, which is designed to prove that NanoLIFE is a safe and effective treatment for men diagnosed with intermediate risk prostate cancer.

During our first quarter, we enrolled and treated our final patient in our preserve study.

Which is designed to prove that nano knife is as safe and effective treatment for men diagnosed with intermediate risk prostate cancer.

Speaker 2: We look forward to collecting data from this study at the 12 month follow-up stage, then submitting our data to the FDA in Q3 of calendar 2024 to support an expanded indication for nanolife to treat prostate tissue. We believe that the timing of...

We look forward to collecting data from this study at the 12 month follow up stage.

And submitting our data to the FDA in Q3 of calendar 2024 to support an expanded indication for nano life to treat prostate tissue.

We believe that the timing of our submission is ideal.

Speaker 2: It is clear that patients with intermediate risk prostate cancer are looking for new treatment options that better preserve their quality of life.

It is clear that patients with intermediate risk prostate cancer are looking for new treatment options that better preserve their quality of life.

Speaker 2: The interest and desire for focal therapy continues to build with both patients and physicians.

The interest and desire for focal therapy continues to build with both patients and physicians.

Speaker 2: We believe that Nanomife will be the best option for this patient population due to its simplicity, versatility, and ability to reduce the risk of undesirable side effects that other treatment options carry.

We believe that NAND and life will be the best option for this patient population.

Due to its simplicity versatility and ability to reduce the risk of undesirable side effects than other treatment options Kerry.

Speaker 2: Over the course of this fiscal year, we look forward to providing you with more details as physicians publish additional data detailing their experiences using Nanonife to treat front-line physicians if they can find some ambassador to your model, or if there are

Over the course of this fiscal year.

We look forward to providing you with more details as physicians publish additional data detailing their experiences using nano knife to treat prostate.

Speaker 2: Our NanoLife business performed very well and grew approximately 36% during the first quarter, with sales of probes growing 35%.

Our near term life business performed very well and grew approximately 36% during the first quarter.

Sales of probes growing 35%.

Speaker 2: Nanonife growth was strong again internationally as our international team continues to establish new relationships with partners who assist in supporting our procedures.

<unk> growth was strong again internationally as our international team continues to establish new relationships with partners, who assist in supporting our procedures and.

Speaker 2: and our strong US growth was driven by continuing interest in this technology as more physicians become aware of our direct and preserve trial.

Our strong U S growth was driven by continuing interest in this technology as more physicians become aware of our direct and preserve trials.

Speaker 2: We believe that Nanomife has the potential to be one of the most important breakthroughs for men who qualify for a focal treatment approach to their disease by driving beneficial outcomes and offering significant quality of life benefits.

We believe that in the end of life has the potential to be one of the most important breakthroughs for men who qualify for a focal treatment approach to their disease by driving beneficial outcomes and offering significant quality of life benefits.

Speaker 2: It has the potential to open up a roughly $700 million market in the U.S.

It has the potential to open up a roughly $700 million market in the U S and potentially $2 billion market globally for those intermediate risk patients.

Speaker 2: and potentially $2 billion market globally for those intermediate risk patients.

In the first quarter of FY 'twenty four.

Speaker 2: Our international businesses grew 26% year over year with impressive growth from both our med tech and our med devicing.

Our international businesses grew 26% year over year with impressive growth from both our med Tech and our med device segments.

Speaker 2: Our team is strong and we will continue to grow in international markets through a strategy that employs key partners to support our products, continued exposure through our series of scientific symposiums and further expansion of our MedTech portfolio as we gain important regulatory approvals around the globe.

Our team is strong and we will continue to grow in international markets through a strategy that employees key partners to support our products continued exposure through our series of scientific symposiums and further expansion of our med tech portfolio as we gain important regulatory.

Approval around the globe.

Speaker 2: We believe this is the right approach, and it allows us to leverage our partners in both the MedTech and MedDevice segments without the significant investment that would be required to build out a fully direct global sales force.

We believe this is the right approach.

Is it allows us to leverage our partners in both the med Tech and med device segments without the significant investment that would be required to buy that build out a fully direct global sales force.

Our mechanical thrombectomy business, which includes angio vac and Alpha Vac declined roughly 6% year over year.

Speaker 2: Our mechanical thrombectomy business, which includes angiovac and alphavac, declined roughly 6% year over year. We were encouraged to see that...

We were encouraged to see that Andrew back revenues, well down year over year grew sequentially and.

Speaker 2: well down year over year, grew sequentially. We believe that the steps we are taking to drive this business are gaining positive traction.

And we believe that the steps we are taking to drive this business are gaining positive traction.

Speaker 2: As you saw in our press release, we recently received a breakthrough designation for the use of angiovac to remove right heart vegetation.

As you saw in our press release, we recently received a breakthrough designation for the use of angio back to remove right heart vegetation.

Speaker 2: We have engaged in productive conversations with the FDA. We expect to finalize our study design in our second fiscal quarter.

We have engaged in productive conversations with the FDA, we expect to finalize our study design in our second fiscal quarter.

Speaker 2: Our APEX PE study is now more than 75% enrolled.

Our apex P. E study is now more than 75% enrolled.

Speaker 2: This study is designed to prove that the AlfaVac F18 can be a safe and effective interventional treatment tool for physicians to treat patients who are at risk of a pulmonary embolism.

This study is designed to prove that the alpha Vac F 18 can be a safe and effective interventional treatment tool for physicians to treat patients who are at risk of a pulmonary embolism.

Speaker 2: We look forward to completing enrollment soon. And after the 30-day patient follow-up period, we'll collect and submit our data to the FDA.

We look forward to completing enrollment soon.

And after the 30 day patient follow up period, we will collect and submit our data to the FDA we.

Speaker 2: We expect the data to support a PE indication around the end of calendar Q2 2024.

We expect the data to support a P indication around the end of calendar Q2 2024.

We have been very pleased with the clinical feedback that we regard received regarding their success that physicians have had with alphabet.

Speaker 2: We have been very pleased with the clinical feedback that we've received regarding the success that physicians have had with alphabets.

Speaker 2: They tell us that the intuitive design allows for safe and effective clot removal.

They tell us that the intuitive design allows for safe and effective clot removal.

Speaker 2: and they also specifically comment about how quickly and effectively they can steer our device through an often torturous anatomy.

And they also specifically comment about how quickly and effectively they can steer our device through and often torturous anatomy.

Speaker 2: This gives AlphaVac an advantage over other competitive options.

This gives alpha vac and advantage over other competitive options. They feel that our product will soon be an important part of the treatment options that they can choose from to treat V. T E.

Speaker 2: they feel that our product will soon be an important part of the treatment options that they can choose from to treat VTE.

Speaker 2: in addition to the expected PE indication in calendar 2024.

In addition to the expected P indication in calendar 2024.

Speaker 2: Our customers will also see the second generation of Alpha...

Our customers will also see the second generation of Alpha back and a number of important product innovations that will enhance usability even further.

Speaker 2: and a number of important product innovations that will enhance usability even further.

Speaker 2: The rapidly developing venous thrombectomy market is highly competitive and contains numerous unmet clinical gaps.

The rapidly developing Venus thrombectomy market is highly competitive and contains numerous unmet clinical gaps. We are confident that we will be one of the top three players in this large and growing market for years to come.

Speaker 2: We are confident that we will be one of the top three players in this large and growing market for years to come.

Speaker 2: Not only will we win market share with our unique and innovative products.

Not only will we win market share with our unique and innovative products. We will also drive adoption to catheter based interventions and help move care in the <unk> space away from historic.

Speaker 2: We will also drive adoption to catheter-based interventions and help move care in the VTE space away from historic lytic-based therapies. During the first quarter, we saw continued strong growth

<unk> based therapies.

During the first quarter we.

We saw continued strong growth of our Oregon platform up 26% year over year.

Speaker 2: This solid growth is the result of the unique way we deliver laser energy and safely treat diseased vessels.

This solid growth is a result of the unique way, we deliver laser energy and safely treat diseased vessels.

Speaker 2: continue to gain share because physicians are gaining confidence in our technology while they are also getting exposure to data generated by their peers which is evidence of how special Ariane is as a treatment tool.

We continue to gain share because physicians are gaining confidence in our technology. While there are also getting exposure to data generated by their peers, which is evidence of how special Oregon is as a treatment tool.

Speaker 2: Last quarter, we discussed the Ariane laser micro CT data and its importance, which provides evidence that Ariane can effectively fracture medial arterial calcification in small vessels typically located.

Last quarter, we discussed the argon laser micro C T data and its importance, which provides evidence that oregon can be effective can effectively fracture medial arterial calcification and small vessels typically located below the knee.

Speaker 2: This data has resonated well with physicians, and we believe can be an additional reason for clinicians to choose Ariane over our competitors.

This data has resonated well with physicians and we believe.

Can be an additional reason for clinicians to choose ariane over our competitors.

Speaker 2: In addition, there were a number of presentations and podium discussions during this quarter's trade meetings that highlighted the power, versatility, and safety of Arian.

In addition, there were a number of presentations and podium discussions during this quarter as trade meetings that highlighted the power and versatility and safety of argon.

Oregon is special.

Speaker 2: We intend to launch catheters specially designed to allow Ariane to treat small vessel DVT in 2025.

We intend to launch catheters, especially designed to allow <unk> to treat small vessel DVT in 2025.

Speaker 2: We believe that Ariane will enhance our venous thrombectomy strength and allow treating physicians a new and powerful option to treat clots and small vessels.

We believe that <unk> will enhance our venous thrombectomy strength.

And allow treating physicians, a new and powerful options to treat clots and small vessels.

Speaker 2: We are also pursuing plans to gain an indication for Ariane to treat coronary artery disease.

We are also pursuing plans to gain an indication for Oregon to treat coronary artery disease.

Speaker 2: We believe that Ariane can be a safe and effective option to treat CAD.

We believe that <unk> can be a safe and effective option to treat C. A D and.

Speaker 2: And we expect that the soon to be released FARO study will support this position.

And we expect that the soon to be released Farro study will support disposition.

We continue to do our development planning and we'll give you further updates in subsequent quarters.

Speaker 2: We continue to do our development planning and will give you further updates in subsequent quarters.

Speaker 2: finally, we anticipate receiving CE mark for Ariane in the next few months.

And finally, we anticipate receiving CE mark for Oregon in the next few months.

As part of our ongoing focus to generate additional clinical data we are proud to be holding our fourth scientific symposium at the end of October .

Speaker 2: As part of our ongoing focus to generate additional clinical data, we are proud to be holding our fourth scientific symposium at the end of October where we'll be hosting global key opinion leaders interested in doing research on our devices to further prove safety and efficacy. We continue to build momentum.

We'll be hosting global key opinion leaders interested in doing research on our devices to further improve safety and efficacy.

We continue to build momentum with these kols and we can see how differently. Our company is viewed by them as our credibility has grown at an innovator that is committed to our physician customers and their patients.

Speaker 2: And we can see how differently our company is viewed by them as our credibility has grown as an innovator that is committed to our physician customers and their patients.

Speaker 2: In addition to the progress that our medical technology segment is making, our medical device segment posted solid results and continues to provide an earnings and cash generation foundation.

In addition to the progress that our medical technology segment is making our medical device segment posted solid results and continues to provide an earnings and cash generation Foundation.

Speaker 2: Growth in our med device segment was primarily driven by ports and our Solaro microwave ablation system.

Growth in our Med device segment was primarily driven by ports and our celerity microwave ablation system.

Speaker 2: Our ports, which grew over 22%, illustrate the strength and leadership of our Vascular Access product portfolio and our commercial team.

Our ports, which grew over 22%.

Illustrate the strength and leadership of our vascular access product portfolio and our commercial team.

Speaker 2: This is a very competitive market, and our team has continually shown the ability to win.

This is a very competitive market and our team is continually shown the ability to win.

Speaker 2: With that, I'd like to turn the call over to Steve Trowbridge, our executive vice president and chief financial officer, to review the quarter in more detail.

With that I'd like to turn the call over to Steve Trowbridge.

Executive Vice President and Chief Financial Officer to review the quarter in more detail.

Thanks, Jim Good morning, everyone.

Speaker 3: Before I begin, I'd like to direct everyone to the presentation on our investor relations website summarizing the key events from our quarterly results.

Before I begin I'd like to direct everyone to the presentation on our Investor Relations website summarizing the key events from our quarterly results.

Speaker 3: As Jim mentioned, unless otherwise noted, all metrics and growth rates mentioned during today's call are on a pro forma basis and exclude the results of the dialysis and biocentric businesses that we divested in mid-June.

As Jim mentioned, unless otherwise noted all metrics and growth rates mentioned during todays call are on a pro forma basis and exclude the results of the dialysis and biosurgery businesses that we divested in mid June .

Speaker 3: Our revenue for the first quarter of FY24 increased 5.7% year over year to $78 million, driven by continued strength in our MedTech platform.

Our revenue for the first quarter of FY 'twenty four increased five 7% year over year to $78 million driven by continued strength in our med Tech platform.

Speaker 3: This is exclusive of approximately 700,000 of revenue from Dialysis and Biocentry in June .

This is exclusive of approximately 700000 of revenue from dialysis and biosensors in June .

Speaker 3: On an as reported basis, revenue for the first quarter was 78.7.

On an as reported basis revenue for the first quarter was $78 7 million.

Speaker 3: Medtech revenue was $25.9 million, a 13.3% year-over-year increase, while Med device revenue was $52.1 million, growing 2.3% compared to the first quarter of FY23.

Med Tech revenue was $25 9 million or 13, 3% year over year increase while med device revenue was $52 $1 million growing two 3% compared to the first quarter of FY2023.

Speaker 3: For the first fiscal quarter, our MedTech platforms comprised 33% of our total revenue, compared to 31% of total revenue a year ago.

For the first fiscal quarter, our med tech platforms comprised 33% of our total revenue compared to 31% of total revenue a year ago.

Speaker 3: Our ARION platform contributed $11.1 million in revenue during the first quarter, growing 25.7% compared to last year.

Our Orion platform contributed $11 1 million in revenue during the first quarter growing 25, 7% compared to last year.

Speaker 3: The cancels from Beckney Revenue, which includes angiovac and alphavac sales, declines 5.8% over the first quarter of FY23. Alphavac Revenue for the first quarter.

Mechanical thrombectomy revenue, which includes <unk> and Alphatec sales declined five 8% over the first quarter of FY2023 alpha.

<unk> revenue for the first quarter was $1 8 million.

Speaker 3: And your back revenue was 6.3M in the quarter representing a decline of 7.7% over the prior year, but up sequentially from the 4th quarter and trending in the right direction.

<unk> revenue was $6 3 million in the quarter, representing a decline of seven 7% over the prior year, but up sequentially from the fourth quarter and trending in the right direction.

Speaker 3: Angiovac continues to stabilize and rebound from the challenges we faced in Q2 and Q3 of fiscal 23. And we continue to take meaningful steps to address those challenges, including new sales leadership as well as a more robust sales training platform.

<unk> continues to stabilize and rebound from the challenges we faced in Q2 and Q3 of fiscal 'twenty, three and we continue to take meaningful steps to address those challenges, including new sales leadership as well as a more robust sales training platform.

Speaker 3: Additionally, we recently received the Breakthrough Device Designation for the use of Angiovac in Right Heart. We believe this is an illustration of the distinct role that Angiovac can play in the VTE system.

Additionally, we recently received a breakthrough device designation for the use of <unk> in right Heart and we believe this is an illustration of the distinct role that <unk> can play in the <unk> space.

Speaker 3: We remain confident that mechanical thrombectomy will be a significant contributor to our growth strategy, and we will continue to prioritize investments in this platform, including the new product and introductions that Jim mentioned, as well as our clinical initiatives, such as the Apex PE Study.

We remain confident that mechanical thrombectomy there'll be a significant contributor to our growth strategy and we will continue to prioritize investments in this platform, including the new product introductions that Jim mentioned as well as our clinical initiatives such as the apex study.

Speaker 3: Nanonite disposable revenue during the quarter increased 34.5% year over year.

Nandonet disposable revenue during the quarter increased 34, 5% year over year.

Speaker 3: Early in the quarter, we announced that enrollment in Preserve is now 100% complete. And as this data starts to be made public over the course of this year, we look forward to sharing it.

Early in the quarter, we announced that enrollment and preserve is now 100% complete and is this data starts to be made public over the course of this year, we look forward to sharing it with you.

Speaker 3: In the first quarter, our med device segment grew 2.3% year over year, led by strength in our port products, angiographic catheter products, and microwave ablation.

In the first quarter, our med device segment grew two 3% year over year led by strength in our port products Angiographic catheter products and microwave ablation business.

Speaker 3: At the end of our first quarter, our backlog stood at 3.3 million.

As of the end of our first quarter, our backlog stood at $3 3 million.

Moving down the income statement, our gross margin for the first quarter of FY 'twenty four was 58% a decrease of 20 basis points compared to the year ago period.

Speaker 3: Moving down the income statement, our gross margin for the first quarter of FY24 was 50.8%. A decrease of 20 basis points compared to...

Speaker 3: The first fiscal quarter MedTech gross margin was 64.7%, an increase of 150 basis.

For the first fiscal quarter Med Tech gross margin was 64, 7% an increase of 150 basis points.

Speaker 3: And MedDevice Grossmargin was 43.9%, a decrease of 170 basis points each when compared to the first quarter of last.

Device gross margin was 43, 9% a decrease of 170 basis points, each when compared to the first quarter of last year.

Speaker 3: Med Tech gross margins were positively impacted by sales mix driven by our Nano-Knife.

Med Tech gross margins were positively impacted by sales mix driven by our nano nice performance.

Speaker 3: the vice gross margins were negatively impacted by raw material inflationary pressures and sales mix driven by growth in our international market.

Device gross margins were negatively impacted by raw material inflationary pressures and sales mix driven by growth in our international markets.

Speaker 3: As we've discussed, our strategic business model contemplates gross margin expansion as our high margin MedTech segment continues to become a larger portion of our overall revenue.

As we've discussed our strategic business model contemplates gross margin expansion as our high margin Med Tech segment continues to become a larger portion of our overall revenue base.

Speaker 3: As mentioned last quarter, the next phase of our transformation is to address the scale and structural limitations of our operating footprint in a capital-efficient manner, which will reduce the impacts of many of the raw material and inflationary headwinds that we've seen.

As mentioned last quarter. The next phase of our transformation is to address the scale and structural limitations of our operating footprint in a capital efficient manner, which will reduce the impacts of many of the raw material inflationary headwinds that we've seen recently.

Speaker 3: We look forward to continuing to update you on our plans and actions to drive margin enhancement in the short and medium term.

And we look forward to continuing to update you on our plans and actions to drive margin enhancement in the short and medium term.

Turning to R&D, our research and development expense during the first quarter of FY 'twenty, four with $7 9 million or 10, 1% of sales compared to $8 3 million or 11, 2% of sales a year ago.

Speaker 3: Turning to R&D, our research and development expense during the first quarter of FY 24 was 7.9 million or 10.1% of sales compared to 8.3 million or 11.2% of sales a year ago.

Speaker 3: Spending on clinical programs was 32% of total R&D spend during the first quarter of fiscal 2020.

Spending on clinical programs was 32% of total R&D spend during the first quarter of our fiscal 'twenty four.

Speaker 3: compared to 26% during the first quarter of last year and 16% for the full fiscal year of 2021.

Compared to 26% during the first quarter of last year and 16% for the full fiscal year 2021.

Speaker 3: This mixed shift within our R&D spending is well aligned with our long-term strategy to support increased physician adoption of our MedTech platform technologies through the generation of data and clinical evidence.

This mix shift within our R&D spending is well aligned with our long term strategy to support increased physician adoption of our med Tech platform technologies through the generation of data and clinical evidence.

Speaker 3: SG&A expense for the first quarter of FY24 was 38.2 million, representing 49% of sales, compared to 36.6 million, or 49.6% of sales, a year ago.

SG&A expense for the first quarter of FY 'twenty, four was $38 2 million, representing 49% of sales compared to $36 6 million or 49, 6% of sales a year ago.

Speaker 3: Our adjusted net loss for the first quarter of FY24 was $5.2 million, or adjusted loss per share of $13.5 million.

Our adjusted net loss for the first quarter of FY 'twenty, four was $5 2 million or adjusted loss per share of <unk> 13.

Speaker 3: compared to an adjusted net loss of $6 million or adjusted loss per share of $0.15 in the first quarter of last year.

Compared to an adjusted net loss of $6 million or adjusted loss per share of <unk> 15 in the first quarter of last year.

Speaker 3: During the first quarter of fiscal 24, we revised our annual equity grant practice for our non-employee directors, moving from granting shares with a one-year vesting term to granting immediately vested shares. The target grant value was $2.5 million.

During the first quarter of fiscal 'twenty four we revised our annual equity grant practice for our non employee directors moving from granting shares with a one year vesting term to granting immediately vested shares to targa.

That grant value has not changed from the prior year.

This change is reflected in adjusted loss per share for the quarter of 13 meeting.

James Clemmer: Conference. Unless otherwise noted, all financial metrics and growth rates provided during the call today will be on a performer basis which excludes the impact of our divested dialysis and bioscentry businesses in both our fiscal 24 and fiscal 23 first quarters. In our first quarter of FY 24 was highlighted by the attainment of important milestones in our long-term strategy and is a solid start financially against our fiscal year goals. Over the last few quarters, we've outlined for you several areas where we were focused on improving and I'm happy to say that we are seeing improvements here during the first quarter, although there's still more to come.

Meaning that approximately <unk> of the negative 13 was shifted into this fiscal quarter instead of radically being included in our second third and fourth quarters of fiscal 'twenty four.

Speaker 3: Gap net income, as reported in our earnings release this morning, included a gain on the sale of assets related to our med device segment in connection with the divestiture of our dialysis and biocentric business.

GAAP net income as reported in our earnings release. This morning included a gain on the sale of assets related to our med device segment in connection with the divestiture of our dialysis and biosurgery businesses.

James Clemmer: We ended the first quarter with revenue of $78 million dollars, representing growth of approximately 6% year over year, led by growth of approximately 13% from our Medtech segment. Our adjusted, Proforma EPS was a loss of 13 cents and was in line with our expectations. This excludes approximately 700,000 in sales from the divested businesses during the six business days in June that we still own to them. Beyond our financial performance, we made important progress on key milestones related to our long-term strategy.

Speaker 3: As we mentioned last quarter, these businesses that were divested on June 8th, 2023, subsequent to the company's fiscal year end, were accounted for as held for sale as of May 31st, 2023. As a result, we recorded a goodwill impairment during the fiscal fourth quarter ended May 31, 2023.

As we mentioned last quarter. These businesses that were divested on June eight 2023 subsequent to the company's fiscal yearend were accounted for as held for sale as of May 31, 2023 as.

As a result, we recorded a goodwill impairment during the fiscal fourth quarter ended May 31 2023.

Speaker 3: The impairment resulted in the loss of $14.5 million, or 37 cents per share base.

The impairment resulted in the loss of $14 5 million or <unk> 37 cents on a per share basis.

Speaker 3: Due to the timing of transaction, the loss is recorded in our fourth fiscal quarter of FY23, with the loss set in game on the sale of assets recorded as part of this quarter's result.

Due to the timing of the transaction the losses recorded in our fourth fiscal quarter of FY2023 with the offsetting gain on the sale of assets recorded as part of this quarter's results.

As a result of large GAAP loss in the fourth quarter of FY 'twenty, three and a larger gap gain in the first quarter of FY 'twenty four.

Adjusted EBITDA in the first quarter of FY 'twenty four it was <unk> 4 million compared to negative EBITDA of $1 6 million in the first quarter of FY2023.

Speaker 3: In the first quarter of fiscal 24, we used 25.9 million in operating cash, had capital expenditures of 0.8 million, and additions to Ari on placement and evaluation units of 0.8.

In the first quarter of fiscal 'twenty, four we used $25 9 million in operating cash and capital expenditures of $1 8 million. In addition to already on placement and evaluation units of <unk> 8 million.

Speaker 3: At August 31, 2023, we had $57.6 million in cash and cash equivalents, compared to $44.6 million in cash and cash equivalents at May 31, 2023.

At August 31, 2023, we had $57 $6 million in cash and cash equivalents compared to $44 6 million in cash and cash equivalents at May 31 2023.

James Clemmer: As we have stated, it is our mission to address meaningful treatment gaps in large, high-growth markets with a focus on cardiovascular disease and cancer. During our first quarter, we enrolled and treated our final patient in our Preserve study, which is designed to prove that nanonife is a safe and effective treatment for men diagnosed with intermediate risk prostate cancer. We look forward to collecting data from this study at the 12-month follow-up stage, then submitting our data to the FDA in Q3 of calendar 2024 to support an expanded indication for nanonife to treat prostate tissue.

Speaker 3: We continue to expect to finish the year with cash balances in the range of 65 to 70 million and we expect to be cashful, positive, exiting FY25. Having utilized an aggregate of 10 to 20 million of cash over a two-year period.

So we continue to expect to finish the year with cash balances in the range of $65 million to $70 million and we expect to be cash flow positive exiting FY 'twenty five having utilized in aggregate of 10% to $20 million of cash over two year period.

Speaker 3: Given the timing of Q1 payments and managing our working capital, Q1 exhibited the highest level of cash utilization we will see in FYT.

Given the timing of Q1 payments in managing our working capital Q1 exhibited the highest level of cash utilization, we will see in FY 'twenty for <unk>.

Speaker 3: As has historically been the case, our first fiscal quarter is expected to have the highest utilization of cash during the fiscal year, with cash balances building throughout the remainder of the fiscal year.

It's historically been the case, our first fiscal quarter is expected to have the highest utilization of cash during the fiscal year with cash balances building throughout the remainder of the fiscal year.

Speaker 3: We believe that we have more than sufficient cash to execute on our strategic initiatives as we move to generating positive cash flow towards the end of FY25.

We believe that we have more than sufficient cash to execute on our strategic initiatives as we move to generating positive cash flow towards the end of FY 'twenty five.

Speaker 3: Turning now to guidance, we continue to anticipate that FY24 revenue will be in the range of $328 million to $333 million, and we expect full year adjusted loss per share to be in the range of $0.28 to $0.34.

Turning now to guidance, we continue to anticipate that FY 'twenty four revenue will be in the range of $328 million to $333 million and we expect full year adjusted loss per share to be in the range of 28 to 34.

James Clemmer: We believe that the timing of our submission is ideal. It is clear that patients with intermediate risk prostate cancer are looking for new treatment options that better preserve their quality of life. The interest in desire for focal therapy continues to build with both patients and physicians. We believe that nanonife will be the best option for this patient population due to its simplicity, versatility, and ability to reduce the risk of undesirable side effects that other treatment options carry.

Speaker 3: As a reminder, this compares to pro forma revenue and loss per share, excluding the recently divested assets of $306.38 million and a loss of $0.43 respectively for FY23.

And as a reminder, this compares to pro forma revenue and loss per share. Excluding the recently divested assets of $306 3 million and a loss of <unk> 43, respectively for FY2023.

Speaker 3: We expect FY24 gross margin to be in the range of 50 to 52% compared to pro forma FY23 gross margin of 50.5.

We expect FY 'twenty four gross margin to be in the range of 50% to 52% compared to pro forma FY2023 gross margin of 55%.

Speaker 3: We expect FY 24, a mid-tech revenue growth in the range of 20 to 25% and a mid-device revenue growth in the range of 1 to 3%.

We expect FY 'twenty for Med Tech revenue growth in the range of 20% to 25% and med device revenue growth in the range of 1% to 3%.

Speaker 3: We expect MedTech gross margins in the range of 63 to 65% and MedDevice gross margins in the range of 43 to 40.

James Clemmer: Over the course of this fiscal year, we look forward to providing you with more details as physicians publish additional data detailing their experiences using nanonife to treat prostate. Our nanonife business performed very well and grew approximately 36% during the first quarter with sales of probes growing 35%. Nanonife Growth was strong again internationally as our international team continues to establish new relationships with partners who assist in supporting our procedures and our strong U.S, growth was driven by continuing interest in this technology as more physicians become aware of our direct and preserved trials.

We expect med tech gross margins in the range of 63% to 65% and med device gross margins in the range of $43 to 45%.

Speaker 3: We're continuing to transition our company with a focus on delivering value to our global customers.

We're continuing to transition our company with a focus on delivering value to our global customers. We also understand that investors expect us to be a company that will grow at attractive rates, while improving profitability and cash generation and we believe that our first quarter exhibits execution against those expectations.

Speaker 3: We also understand that investors expect us to be a company that will grow at attractive rates while improving profitability and cash generation.

Speaker 3: We believe that our first quarter exhibits execution against those expectations.

Speaker 3: Finally, I'd like to thank our team here at Angeo Dynamics for their hard-working commitment. And we're looking forward to executing further on our strategy and delivering a strong fiscal year 24. With...

Finally, I'd like to thank our team here at Angio dynamics for their hard work and commitment and we're looking forward to executing further on our strategy and delivering a strong fiscal year 'twenty four.

With that I'll turn it back to Jim.

Speaker 2: Thank you, Steve. And before we open up the call for questions, I'd like to say a few words.

Thank you, Steve and before we open up the call for questions I'd like to say a few words.

Speaker 2: Like Steve and I, many of you have had the pleasure of knowing Matt Mashon, who sadly unexpectedly passed away several weeks ago.

Like Stephen I. Many of you have had the pleasure of knowing Matt Mashona, who sadly and unexpectedly passed away several weeks ago.

James Clemmer: We believe that Nanonife has the potential to be one of the most important breakthroughs for men who qualify for a focal treatment approach to their disease by driving beneficial outcomes and offering significant quality of life benefits. It has the potential to open up a roughly $700 million market in the U.S, and potentially $2 billion market globally for those intermediate risk patients. In the first quarter of FY24, our international businesses grew 26% year-over-year with impressive growth from both our MedTech and our MedDevice segments.

Speaker 2: Matt did an excellent job following our company for many years, and all of us here at Angiodynamics truly enjoyed working with him, both as an analyst and as a person.

Matt did an excellent job of following our company for many years and all of US here at Angio dynamics truly enjoyed working with them both.

Both as an analyst and as a person.

Matt will be missed.

Speaker 4: And we offer our condolences to his family and his KeyBank colleagues, particularly Brett. Now, operator, could you please open up the call for questions? Thank you. If you'd like to ask a question at this time.

And we offer our condolences to his family and his keybanc colleagues, particularly breath.

Now operator could you please open up the call for questions.

Thank you.

If you'd like to ask a question at this time. Please press star one from your telephone keypad.

James Clemmer: Our team is strong and we will continue to grow international markets through a strategy that employs key partners to support our products, continued exposure through our series of scientific symposiums, and further expansion of our MedTech portfolio as we gain important regulatory approvals around the globe. We believe this is the right approach that is it allows us to leverage our partners in both the MedTech and MedDevice segments without this significant investment that would be required to build out a fully direct global sales force.

<unk> tone will indicate your line is in the question queue you.

You May press star two if he like to remove your question from the queue.

Speaker 4: For participants that may be using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

For participants that may be using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

One moment, please how we poll for questions. Thank you.

Speaker 4: And our first question today comes from the line of Jason Bedford with Raymond James. Please proceed with your questions.

Thank you.

Our first question today comes from the line of Jason Bedford with Raymond James. Please proceed with your questions.

Okay.

Hi, good morning, guys.

Speaker 5: Maybe just to start on the business. Nanonife use is quite strong. I was wondering if you could break out growth US versus internationally. Internationally, are you seeing it mostly in prostate or are you seeing use in other businesses?

Maybe just to start on the business.

Nano nice use is quite strong I was wondering if you could breakout growth U S versus internationally and internationally or are you seeing it mostly in prostate or are you seeing Houston and other.

James Clemmer: Our mechanical thrombectomy business, which includes angiovac and alphavac, declined roughly 6% year-over-year. We were encouraged to see that angiovac revenues, well down year-over-year, grew sequentially and we believe that the steps we are taking to drive this business are gaining positive traction. As you saw in our press release, we recently received a breakthrough designation for the use of angiovac to remove right heart vegetation. We have engaged in productive conversations with the FDA and we expect to finalize our study design in our second fiscal quarter.

In other areas.

Speaker 2: and they were actually seeing it in both. So we tracked the different organs that we treat. There's been some, the international team has had head start in the US team. They've done a great job establishing relationships internationally with some really strong Frosty physicians. And then I'll refer back to the July call we had for Q4. We announced that NICE had upgraded our status.

Hi, Jason actually we are seeing in both so we track different organs that we treat there has been some of the international team has had a head start in the U S team they've done a great job establishing establishing relationships.

Holly with some really strong for us the physicians and then I'll refer back to the July call. We have for Q4, we announced that nice had upgraded our status in the U K. So we think that also has a knock on effect in other areas within Europe , Jason So we're going to continue.

Speaker 3: in the UK. So we think that also has a knock-on effect in other areas within Europe , Jason. So we're going to continue to work with our clinicians and grow in Europe and the US. Steve, do you have a breakdown? Yeah, and then Jason, we saw a strong growth in both geographies. So in the US, disposable growth was 28%.

James Clemmer: Our APAC's PE study is now more than 75% enrolled. This study is designed to prove that the alphavac F-18 can be a safe and effective interventional treatment tool for physicians to treat patients who are at risk of a pulmonary embolism. We look forward to completing enrollment soon and after the 30-day patient follow-up period, we'll collect and submit our data to the FDA. We expect the data to support a PE indication around the end of calendar Q2 2024.

To work with our clinicians and grow in.

In Europe any of US Steve do you have the breakdown yeah, and then Jason we saw strong growth in both geographies. So in the U S. Disposable growth was 28% and in the international markets are disposable growth Fernando knife was about 44%. So we've seen really strong growth both both sides of the ocean.

Speaker 3: And in the international markets, our disposable growth for NAN and Ike was about 44%. So we've seen really strong growth both both.

Okay.

Yeah.

Speaker 5: On mechanical thrombectomy, you seem to be stabilizing Angiovac. AlphaVac still seems like it's kind of stuck in first year. Can you just give us a little indication as to why growth should improve in AlphaVac? And I think you also alluded to a second gen product and I apologize I may have missed it.

On mechanical thrombectomy, you seem to be stabilizing and you back.

Also vac still seems like it's kind of stuck in first year.

Can you just give us a little indication as to why growth should improve and I'll go back and I think you also alluded to a second gen product and I apologize I may have missed the timing there.

James Clemmer: We have been very pleased with the clinical feedback that we've regard received regarding the success that physicians have had with the alphavac. They tell us that the intuitive design allows for safe and effective clot removal and they also specifically comment about how quickly and effectively they can steer our device through an often torturous anatomy. This gives AlphaVac an advantage over other competitive options. They feel that our product will soon be an important part of the treatment options that they can choose from to treat VTE.

Speaker 2: No, it's fine. Again, Angel Vack, we're really confident in, you know, obviously, how the device works and what it does. And gaining the breakthrough designation from the FDA's important, because they've acknowledged an area of unmet need that we think Angel Vack can fit or work with them on the study design and get that communicated soon. Second, AlphaVack, we love the product and the physician feedback is really strong. I was at Perk two weeks ago talking to many, many physicians who've used it, want to try it. The trick for us Jason, are two things.

It's fine again, Andrew back, we're really confident and obviously, how the device works and what it does in gaining the breakthrough designation from the FDA is important because they've acknowledged an area of unmet need that we think and you have that can fit we'll work with them on the study design and get that communicated soon second Alpha <unk>, we love the product and the physician feedback is really strong.

<unk> I was at two weeks ago talking to many many physicians who have used it want to try it.

The trick for us Jason with two things completing the apex P/e enrollment you saw we announced today, where 75% of the way there, which is actually a great timeline being that there are two other good products are already with a P indication and we're growing at the same pace I think the first one of those one at a couple of years ago. When they got their indications we're really pleased.

Speaker 2: Completing the APEX PE enrollment, you saw we announced today were 75% of the way there, which is actually a great timeline, in a being that there are two other good products already with the PE indication. And we're going at the same pace, I think the first one of those went out a couple years ago, and they got their indication. We're really pleased to take up with the product.

James Clemmer: In addition to the expected PE indication in calendar 2024, our customers will also see the second generation of AlphaVac in a number of important product innovations that will enhance usability even further. The rapidly developing venous thrombectomy market is highly competitive and contains numerous unmet clinical gaps. We are confident that we will be one of the top free players in this large and growing market for years to come. Not only will we win market share with our unique and innovative products, we will also drive adoption to catheter-based interventions and help move care in the VTE space away from historic, litig-based therapies.

Take up with the product so.

Speaker 2: So we do, if we did announce this morning, we have a couple design enhancements that will launch next calendar year, Jason. So you'll see those enhancements. So really next year is really important for us. We'll have that PE indication we believe about mid calendar year next year.

So we do it we did announce this morning, we have a couple of design enhancements that will launch next calendar year, Jason So youll see those enhancements. So really next year is really important for US we'll have that PE indication. We believe about mid calendar year next year. We will also have some design enhancements to the product anybody does when you. After you launch a first gen just based on physician feedback.

Speaker 2: We'll also have some design enhancements to the product. Anybody does when you know, after you launch the first gen, just base them for the physician feedback.

Speaker 2: to make it a little more intuitive and user friendly. But we have full confidence that the AlphaVac F18 will be a major player. Not just PE, but other clot removal within the entire.

To make it a little more intuitive and user friendly, but we have full confidence that alphabet F 18 will be a major player not just <unk>, but other clot removal within the anatomy.

Speaker 5: And do the design enhancements require an additional filing?

Okay.

Designer enhancements requiring additional filings.

James Clemmer: During the first quarter, we saw continued strong growth of our Arion platform, up 26 percent year over year. This solid growth is the result of the unique way we deliver laser energy and safely treat diseased vessels. We continue to gain share because physicians are gaining confidence in our technology while they are also getting exposure to data generated by their peers, which is evidence of how special Arion is as a treatment tool.

Speaker 2: No, no, these are simple enhancements I think that's just done as letters of file to our current design. Again, I'm answering it for my regulatory team, but I'm pretty sure that's the case, Jason.

No no the simple enhancements I think they've just done has led us to file to our current design.

Again im answering for Mike My regulatory team, but I'm pretty sure. That's the case, Jason will let you know.

Speaker 5: And then just lastly, and I'll let others jump in on Oreon. Strong, can you just give us an update in terms of the installed base? And I realize you don't get a lot up front for the capital, but is this...

Okay, and then just lastly, and I'll, let others jump in.

<unk>.

Strong can.

Can you just give us an update in terms of the installed base and I realize you don't get a lot of upfront for the capital but is this.

Speaker 5: the growth you're seeing, is it procedure driven or have you seen a bullus in placement or capital?

The growth Youre seeing.

Procedure, driven or have you seen a bolus in placements or is there a capital sale.

Speaker 3: Yeah, so in terms of placement, Jason, the net new placement for this quarter, we're about 10 from where we were finished last year, but we have also, as we talked about in the past, seen a lot of shifting of lasers from some of the lower volume users and moving in the higher volume.

Yes, so in terms of placements, Jason the net new placements for this quarter were about 10 from where we finished last year, but we have also as we've talked about in the past seen a lot of shifting of lasers from some of the lower volume users and moving into higher volume users. So as we talked last year, we were going to pare back a little bit on buying the new system.

James Clemmer: Last quarter, we discussed the Arion laser micro CT data and its importance, which provides evidence that Arion can effectively fracture medial arterial calcification in small vessels typically located below the name. This data has resonated well with physicians and we believe can be an additional reason for clinicians to choose Arion over our competitors. In addition, there are a number of presentations and podium discussions during this quarter's trade meetings that highlighted the power, versatility, and safety of Arion.

Speaker 3: So as we talked last year, we were going to pair back a little bit on buying the new systems and the cache utilization that goes along with that, but we were going to focus on driving utilization. And that's what we've seen. So we've finished the quarter with right around 415 total lasers in the field. That's about 10 new net from the end of the year, but then also a significant number of lasers that we've been shifting from maybe lower performing customers to finding some of those higher performance.

<unk> and the cash utilization that goes along with that but we're going to focus on driving utilization and that's what we've seen.

So.

We finished the quarter with right around 415 total lasers in the field. That's about 10, new net from the end of the year, but then also a significant number of lasers that we have been shifting from maybe lower performing customers defining some of those higher performing customers.

Okay. Thank you.

James Clemmer: Arion is special. We intend to launch catheters, especially designed, to allow Arion to treat small vessel DVT in 2025. We believe that Arion will enhance our Venus thrombectomy strength and allow treating physicians a new and powerful options to treat clots and small vessels. We are also pursuing plans to gain an indication for Arion to treat coronary artery disease. We believe that Arion can be a safe and effective option to treat CAD and we expect that as soon to be released, pharaoh study will support this position. We continue to do our development planning and will give you further updates in subsequent quarters. And finally, we anticipate receiving CE Mark for Ariane in the next few months.

Speaker 4: Our next question is for the line of Steve Lichtmann with Optinheimer. Please excuse me.

Our next question is from the line of Steve Lichtman with Oppenheimer. Please proceed with your question.

Speaker 6: Thank you. Good morning, guys. I'm wondering if you could provide a little more detail on Nano Night performance outside of the US. Sounds like that business has been a key performer in your international growth overall.

Thank you good morning, guys.

Just wondering if.

Goodbye.

<unk> nano performance outside of the U S sounds like.

That business has been a key performing your international growth overall.

Speaker 6: If you give us any disability on what that could look like in the coming quarters of years, what are you seeing on the ground there, how sustainable it is?

Can you give us any visibility on what that could look like in the coming quarters and years. What are you seeing on the ground there.

Sustainable is that.

Speaker 2: Hi Steve, you know, we think it's sustainable, you know, that was a really strong number Q1. I don't know if I expect that number throughout the course of the year. The team did a great job, you know, but they're also training, you know, our partner network to get, you know, clinical support during cases and procedures.

Hi, Steve we think its sustainable that was.

Really strong number Q1, I don't know if I expect that number throughout the course of the year. The team did a great job, but Theyre also training our partners network to get clinical support during cases and procedures. We're.

Speaker 2: We're going to have our in Monte Carlo at the end of this month, you know, our fourth clinical symposium where we have physicians presenting on their experiences and their data with nanomife and a lot of it is highly compelling.

We're going to have our Monte Carlo at the end of this month, our fourth clinical symposium, where have physicians presenting on their experiences and their data with nano might have been a lot of it is highly compelling. So we've got a lot of things happening you also have a little knock on effect here as well with our Soliris growth too we think that nano there as it gets more widely recognized as to how.

James Clemmer: As part of our ongoing focus to generate additional clinical data, we are proud to be holding our fourth scientific symposium at the end of October, where we'll be hosting global key opinion leaders interested in doing research on our devices to further prove safety and efficacy. We continue to build momentum with these KOLs, and we can see how differently our company is viewed by them as our credibility has grown at an innovator that is committed to our position customers and their patients.

Speaker 2: So we've got a lot of things happening. You also have a little knock on effect here as well with our Solaro growth. We think that nano...

Speaker 2: as it gets more widely recognized as to how it works, the mechanism of action.

It works the mechanism of action, we're getting doctors also utilizing our solera at a higher rate. We've got some great competitors in the microwave space. We think our solera is the most effective tool out there. We're seeing doctors also give that a try and adopt it with I think Nana life side by side. So a lot of good things are happening Steve it's going to grow strongly this year I don't know if I would expect the same growth rate during the next cut.

Speaker 2: We're getting doctors also utilizing our salarot a higher rate. We've got some great competitors in the microarray space. We think our salarot is the most effective tool out there. We're seeing doctors also give that a try and adopt it.

Speaker 2: with I think the analyte side by side. So a lot of good things are happening, Steve. It's gonna grow stronger this year. I don't know if I'd expect the same growth right during the next couple quarters, but we're also working here in the US, as you know, to wrap up the data collection on preserve, which would be done next summer, submit, and then we hope to get that indication in the US next year, but we just still see strong growth, US, and internationally.

Quarters, but we're also working here in the U S. As you know to wrap up the data collection on preserve which will be done next summer submit and then we hope to get that indication in the U S next year, but we should still see strong growth.

James Clemmer: In addition to the progress that our medical technology segment is making, our medical device segment posted solid results and continues to provide an earnings and cash generation foundation. Growth in our MedDevice segment was primarily driven by ports and our Solero microwave ablation system. Our ports, which grew over 22 percent, illustrate the strength and leadership of our vascular access product portfolio and our commercial team. This is a very competitive market, and our team has continually shown the ability to win.

And internationally, even prior to that.

Speaker 6: Got it. Thanks. And then, Orion small vessel DDT, I think you reiterated calendar year 25. You talked about some docs that are, you know, using it in the field. Can we expect any...

Got it thanks and then.

Orient.

No.

You reiterated.

Wonder year 'twenty five.

You guys talked about some docs that are using it in the field can we expect any.

Speaker 6: data or anything you're getting a sense on that from some of those customers from in small vessel TV.

Single Center data Youre going to get a sense on that.

From your customers from some of those customers.

And so our vessel TVT.

Speaker 2: We're not sure if you'll see any data published by our customers prior to 2025. You know, we hear anecdotes too where people try it in different areas is so confident in how it works. We're focused on our internal R&D process and the research is shown. We're really, really excited about what it does.

Steve we're not sure if you'll see any data published by our customers prior to 2025.

Stephen Trowbridge: With that, I'd like to turn the call over to Steve Troberge, our executive vice president and chief financial officer, to review the quarter in more detail. Thanks, Jim. Good morning, everyone.

We hear antidotes to where people try it in different areas and so confident in how it works we're focused on our internal R&D process in the research has shown we're really really excited about what it does.

Speaker 2: you know, there's a good aspiration device on the market today. It does a really good job in small vessel DVT, but we think what Ariad does in addition to aspiration, the way our laser can disrupt and break up some of the clock where we found that our testing is really significant.

Theres a good aspiration device on the market today that does a really good job and small vessel DVT, but we think what <unk> does in addition to aspiration the way our laser can disrupt and break up some of the clock. We found that our testing is really significant so we're going to continue to focus on our internal testing get the product ready for launch in the meantime, doctors are always free to do their own.

Stephen Trowbridge: Before I begin, I'd like to direct everyone to the presentation on our investor relations website, summarizing the key events from our quarterly results. As Jim mentioned, unless otherwise noted, all metrics and growth rates mentioned during today's call are on a pro-forma basis and exclude the results of the dialysis and biocentric businesses that we divested in mid-June. Our revenue for the first quarter of FY24 increased 5.7 percent year over year to $78 million, driven by continued strength in our Medtech platforms.

Speaker 2: So we're going to continue to focus on our internal testing, get the product ready for launch. In the meantime, doctors are always free to do their own research, but I wouldn't expect to see anything I don't believe prior to our launch.

The research, but I wouldn't expect to see anything I don't believe prior to our launch.

Stephen Trowbridge: This is exclusive of approximately 700,000 of revenue from dialysis and biocentric in June. On an as reported basis, revenue for the first quarter was 78.7 million. Medtech revenue was 25.9 million, a 13.3 percent year over year increased, while MedDevice revenue was 52.1 million growing 2.3 percent compared to the first quarter of FY23. For the first fiscal quarter, our Medtech platforms comprised 33 percent of our total revenue, compared to 31 percent of total revenue a year ago.

Speaker 6: And then just lastly, as you're thinking about the devices business, how are you thinking about balancing the

Okay got it and then just lastly.

As youre thinking about.

How.

How are you thinking about that.

<unk>.

Speaker 6: the potential benefits of additional sales on the top line versus margin versus I think you mentioned again, Jim, some of the cash benefits.

Just.

The benefit of additional sales on the top line gross margin versus I think you mentioned again, Jim and some of the cash benefit.

Speaker 6: that those products provide to the overall company. So, you know, should we be thinking about, you know, potential additional product line divestitures ahead, or, you know, however you think about balance?

That those products provide to the overall company.

Are you thinking about potential additional product line divestitures ahead, or how are you thinking about balancing those two things.

Speaker 2: A couple of things we've always talked about, you know, our role as an active portfolio manager as we grow our mid-tech businesses. But the mid-device segment does a terrific job in providing us that cash and the stability to invest in the other side of the house. And we really love what the business does. We mentioned today we're highlighted our ports.

Yes couple of things, we've always talked about our role as an active portfolio manager as we grow our med tech businesses.

But the med device segment does a terrific job in providing us that cash and the stability to invest in the other side of the house.

Stephen Trowbridge: Our Ariane platform contributed 11.1 million in revenue during the first quarter, growing 25.7 percent compared to last year. Mechanical thrombectomy revenue, which includes angiovac and alpavac sales, declined 5.8 percent over the first quarter of FY23. Alpavac revenue for the first quarter was 1.8 million. Angiovac revenue was 6.3 million in the quarter, representing a decline of 7.7 percent over the prior year, but up sequentially from the fourth quarter and trending in the right direction.

And we really love what the business does we mentioned today were highlighted our ports here, we compete against a really great company. The number one company in that market as a strong great company. Our ports are better and our company is better and our team is strong. So although were the small guy here David versus Goliath, we're going to continue to win in categories like ports are mid lines, and really well as well <unk>.

Speaker 2: Here we compete against a really great company. The number one company in that market is a strong, great company. Our ports are better, and our company is better, and our team is strong. So although we're the small guy here, David versus Goliath, we're gonna continue to win in categories like ports. Our midline's did really well as well. Pics will always be a better place.

Always be a battle and we know that but it's a good business, Steve we like the balance it provides us today, let's go back two years ago. When we first talked about our transformation into the med Tech business that we want to be Mitek was only 15% of our revenue now you see it about a third of our revenue. So as that continues to grow will be less reliant on the device cash and.

Speaker 2: We know that, but it's a good business, Steve. We like the balance it provides us today. Let's go back two years ago when we first talked about our transformation into the MedTech business that we want to be. MedTech was only 15% of our revenue. Now you see it about a third of our revenue.

Stephen Trowbridge: Action. AngioDynamics continues to stabilize and rebound from the challenges we faced in Q2 and Q3 of fiscal 23 and we continue to take meaningful steps to address those challenges including new sales leadership as well as a more robust sales training platform. Additionally, we recently received the breakthrough device designation for the use of AngioDynamics in right heart and we believe this is an illustration of the distinct role that AngioDynamics can play in the VTE space.

Speaker 2: So as that continues to grow, we'll be less reliant on the device cache and stability. But today we still think it has a good mix. Over time that could change.

Stability, but today, we still think it has a good mix overtime that could change.

Thanks, Dan.

Speaker 4: The next question is from the line of John Young with Cantercord Genuity. Please excuse your question.

The next question is from the line of John Young with Canaccord Genuity. Please proceed with your question.

Stephen Trowbridge: We remain confident that mechanical thrombectomy will be a significant contributor to our growth strategy and we will continue to prioritize investments in this platform including the new product introductions that Jim mentioned as well as our clinical initiatives such as the Apex P.E. Study. Nanonite Disposable Revenue during the quarter increased 34.5% year over year. Early in the quarter, we announced that enrollment in preserve is now 100% complete and as this data starts to be made public over the course of this year, we look forward to sharing it with you.

Speaker 1: Jim and Steve, thanks for taking our questions this morning. First from us, just on a Medtech Rosemargin, it was a great number to see. I know you got to 65% on the high end of the Fiskelgions for the year from Medtech specifically, but it feels a bit conservative. Can you talk about the puts and takes here on the growth margin for Medtech?

Hey, Jim Thanks for taking our questions. This morning.

<unk> sits on a med tech gross margin. It was a great number to see I know you guided to 65% on the high end of the fiscal guidance for the year from Med Tech typically but it seems a bit conservative can you just talk about the puts and takes here on the gross margin for med Tech.

Speaker 3: Yeah, so, John , as we've talked about, right, the overall gross margin kind of long-term strategy for Angio is that you're going to see gross margin increase in coming from this mixed shift as we have the MedTech products comprise a larger portion of our overall revenue base. We've seen that, but we've seen it at the corporate level be chewed up a little bit by some of those inflationary pressures that we've talked about. So on the MedTech side specifically...

Yes, so John as we've talked about right. The overall gross margin kind of long term strategy for angio is that youre going to see gross margin accretion coming from this mix shift as we have the med tech products comprised a larger portion of our overall revenue base, we have seen that but we've seen it at a corporate level be chewed up a little bit by some of those inflationary.

Stephen Trowbridge: In the first quarter, our med-device segment grew 2.3% year over year, led by strength in our port products, angiographic catheter products and microwave ablation business. As the end of our first quarter, our backlog stood at 3.3 million. Moving down the income statement, our gross margin for the first quarter of FY24 was 50.8%, a decrease of 20 basis points compared to the year ago period. For the first fiscal quarter, med-tech gross margin was 64.7%, an increase of 150 basis points and med-device gross margin was 43.9%, a decrease of 170 basis points, each when compared to the first quarter of last year.

<unk> that we've talked about so on the med tech side specifically.

Speaker 3: increased sales in Nanonife, as we've stabilized, as Jason talked about, the mechanical thrombectomy business, those are both going to be pretty good tailwinds for us on the gross margin. And then you've also seen, as we've talked about, pulling back a little bit on brand new lasers being put in the field and trying to increase utilization with those lasers on the Ariane business. All of those things are going to be supportive of that continued shift with the medtech business kind of driving that shift overall.

Increased sales in nano knife as we stabilize as Jason talked about the mechanical thrombectomy business. Those are both going to be a pretty good tailwind for us on the gross margin.

And then you've also seen as we've talked about pulling back a little bit on brand new lasers being put in the field and trying to increase utilization with those lasers on the <unk> business all of those things are going to be supportive of that continued shift.

Stephen Trowbridge: Med-tech gross margins were positively impacted by sales mix driven by our nanonite performance. Med-device gross margins were negatively impacted by raw material inflationary pressures and sales mix driven by growth in our international markets. As we've discussed, our strategic business model contemplates gross margin expansion as our high margin med-tech segment continues to become a larger portion of our overall revenue base. As mentioned last quarter, the next phase of our transformation is to address the scale and structural limitations of our operating footprint in a capital efficient manner, which will reduce the impacts of many of the raw material inflationary headwinds that we've seen recently.

With the med tech business kind of driving that shift over overall gross margins.

Great. Thanks, and then on apex, two getting enrollment now I saw on the <unk>.

Speaker 7: Great, thanks. And then on APEX too, getting enrollment now, I saw on the slides, you know, it's now guide for complete by early calendar 24. Feels like a bit of a push there. Have the other ongoing PE studies in this space impacted the ability to get patients enrolled.

It is now guide for complete by early calendar 'twenty four.

Dave a question there.

Other ongoing studies in the space impacted your ability to get patients enrolled.

Speaker 2: i'd you on the same that no i don't think so i think if you think it looking when we started enrollment and when we think we'll have to finish a romance about an eighteen month window we believe from start to finish

Hi, John It's Jim.

I don't think so I think if you take a look at when we started enrollment and when we think we'll finish enrollment is about an 18 month window, we believe from start to finish.

Speaker 2: What you think if you go back and look at the market leader, I think is what they took a few years ago when there's nothing else in the field.

Would you think if you go back and look at the market leader I think because what they took a few years ago and there is nothing else in the field. So we were a little cautious coming out knowing that we'd be third and behind the other two players there we thought it might be a little challenging and it probably was initially I think theres a lot of momentum building in the product and physicians there appears that use it.

Stephen Trowbridge: We look forward to continuing to update you on our plans and actions to drive margin enhancement in the short and medium term. Turning to R&D, our research and development expense during the first quarter of FY24 was 7.9 million or 10.1% of sales compared to 8.3 million or 11.2% of sales a year ago. Spending on clinical programs was 32% of total R&D spend during the first quarter of FY24 compared to 26% during the first quarter of last year and 16% for the full fiscal year 2021.

Speaker 2: So we were a little cautious coming out and knowing that we'd be third in behind the other two players there. We thought it might be a little challenging. And it probably was initially, I think there's a lot of momentum building in the product.

Speaker 2: And physicians, their peers that use it, talked about great outcomes and shared some great outcomes along the way. So I think the momentum is building. John , we're really pleased with the schedule.

Talking about great outcomes and shared some great outcomes along the way. So I think the momentum is building John we're really pleased with the schedule that fits what we internally have projected and we can't wait to get on label next year, but we will do the work to finish it right. Now your question is a good one because it is a space now will be third in and.

Speaker 2: fits what we internally had projected and we can't wait to get on label next year but we'll do the work.

Speaker 2: finish it right now. The question is a good one because it is a space now. We'll be third in and it probably will be harder for others. You know, I can't speculate for them, but we have a unique novel device We're bringing into that space with two other good products there. So we think we'll really get people in

Stephen Trowbridge: This mixed shift within our R&D spending is well aligned with our long-term strategy to support increased physician adoption of our Med-tech platform technologies through the generation of data and clinical evidence. SGNA expense for the first quarter of FY24 was 38.2 million, representing 49% of sales compared to 36.6 million or 49.6% of sales a year ago. Our adjusted net loss for the first quarter of FY24 was 5.2 million or adjusted loss per share of 13%.

It probably will be harder for others I can't speculate for them, but we have a unique novel device, we're bringing into that space with two other good products. There. So we think we're really give people a choice.

Speaker 7: Great, thanks, Jim. And maybe this is my last one, I'd like to sneak it in. Just the strategy on capital allocation. Just thoughts on stock buyback, given the strength of the balance sheet and current stock price. Thank you.

Great. Thanks, and maybe just my last one if I can sneak it in just on the strategy on capital allocation just thoughts on stock buyback given the strength of the balance sheet and current stock price.

Speaker 2: Yeah, you know, Steve and I talk about that a lot and we have conversations with our board. I think today given that the external market, you know, kind of disruptions and were things have gone, we want our investors to say, hey, we have a strong balance sheet. They won't take a time out for a second. Steve has given you guidance as to where we think our cash utilization will be this year.

Yes, Steve and I talked about it a lot and we have conversations with our board I think today, given the external market kind of disruptions and where things have gone we want our investors to say hey, we have a strong balance sheet. They weren't taking time out for a second Steve has given you guidance as to where we think our cash utilization will be this year and if people look back a year ago. After Q1.

Stephen Trowbridge: Inc, compared to an adjusted net loss of 6 million or adjusted loss per share of 15 cents in the first quarter of last year. During the first quarter of fiscal 24, we revised our annual equity grant practice for our non-employee directors, moving from granting shares with a one-year investing term to granting immediately vested shares. The target grant value was not changed from the prior year. This change is reflected in adjusted loss per share for the quarter of 13 cents, meaning that approximately two cents of the negative 13 cents was shifted into this fiscal quarter instead of radically being included in our second, third, and fourth quarters of fiscal 24.

Speaker 2: And if people look back a year ago after Q1, Steve gave the same guidance. We really hit that by the end of the year. So we're really, we think, in a good position to utilize the cash we have. We do have a good, strong balance sheet with cash. We'll always talk about the investments that we're looking at. And I'm sure at some point it will be a good conversation around a buyback. We believe there's a disconnect in our value today, a strong disconnect.

Steve gave the same guidance, we really hit that by the end of year. So we're really we think we're in good position to utilize the cash we have we do have a good strong balance sheet with cash we're always talking about the investments that we're looking at and Im sure at some point it will be.

Good.

<unk> around a buyback we believe theres a disconnect in our value today, a strong disconnect. We'll take a look at that but we also wanted to share with investors.

Speaker 2: We'll take a look at that, but we also want to share with investors who want to ensure that we have a stable balance for a while. We get their view as well.

We want to ensure that we have a stable balance sheet for a while we get their view as well.

Stephen Trowbridge: Gap net income, as reported in our earnings release this morning, included a game on the sale of assets related to our med-device segment in connection with the divestiture of our dialysis and biosentry businesses. As we mentioned last quarter, these businesses that were divested on June 8, 2023, subsequent to the company fiscal year end, were accounted for as held for sale as of May 31, 2023. As a result, we recorded a good will impairment during the fiscal fourth quarter ended May 31, 2023.

Thanks.

Thanks, John .

Speaker 4: I'd now like to turn the call back over to Mr. Clemmer for any closing remarks.

I'd now like to turn the call back over to Mr. Clemmer for any closing remarks, Mr. Clemmer.

Speaker 2: Thank you, operator. And thanks again to all of our end-to-dynamics employees. We are on a transformation here, changing our company to one that is highly differentiated by our science and technology that provides meaningful outcomes and patient wellness when our products are utilized. Thanks again to our tremendous employees who enabled us to occur every day. I look forward to speaking with you at the end of our Q2. Thank you.

Thank you operator, and thanks again to all of our <unk> dynamics employees. We are on a transformation here changing our company to one that is highly differentiated by our science and technology and provides meaningful outcomes and patient wellness. When our products are utilized thanks again to our tremendous employees, who enabled us to recur every day I look forward to speaking with you at the end of our <unk>.

Stephen Trowbridge: The impairment resulted in the loss of 14.5 million or 37 cents per share basis. Due to the timing of transaction, the loss is recorded in our fourth fiscal quarter of FY23, with the offset in game on the sale of assets recorded as part of this quarter's results. The results were large gap loss in the fourth quarter of FY23 and a larger gap game in the first quarter of FY24. Adjusted EBITDA on the first quarter of FY24 was 0.4 million compared to negative EBITDA of 1.6 million in the first quarter of FY23.

You too thank you.

Speaker 4: This will conclude today's conference. We now disconnect your lines at this time. Thank you for your participation.

This will conclude today's conference you may now disconnect your lines at this time and thank you for your participation.

Stephen Trowbridge: In the first quarter of FY24, we used 25.9 million in operating cash at capital expenditures of 0.8 million in addition to Ari on placement and evaluation units of 0.8 million. At August 31, 2023, we had 57.6 million in cash and cash equivalents compared to 44.6 million in cash and cash equivalents at May 31, 2023. So we continue to expect to finish the year with cash balances in range of 65 to 70 million and we expect to be cashful, positive, exiting FY25, having utilized an aggregate of 10 to 20 million of cash over a two-year period.

Stephen Trowbridge: Given the timing of Q1 payments and managing our work in capital, Q1 exhibited the highest level of cash utilization we will see in FY24. As a historic, we've been the case, our first fiscal quarter is expected to have the highest utilization of cash during the fiscal year with cash balances building throughout the remainder of the fiscal year. We believe that we have more than sufficient cash to execute on our strategic initiatives as we move to generating positive cash flow towards the end of FY25.

Stephen Trowbridge: Turning out of guidance, we continue to anticipate that FY24 revenue will be in the range of 328 million to 333 million and we expect full-year adjusted loss per share to be in the range of 28 to 34 cents. As a reminder, this compares to pro forma revenue and loss per share excluding the recently divested assets of 306.3 million and a loss of 43 cents respectively for FY23. We expect FY24 gross margin to be in the range of 50 to 52 percent compared to pro forma FY23 gross margin of 50.5.

Stephen Trowbridge: We expect FY24 MedTech revenue growth in the range of 20-25% and MedDevice revenue growth in the range of 1-3% We expect MedTech gross margins in the range of 63-65% and MedDevice gross margins in the range of 43-45% We're continuing to transition our company with a focus on delivering value to our global customers. We also understand that investors expect us to be a company that will grow at attractive rates while improving profitability and cash generation. We believe that our first quarter exhibits execution against those expectations.

Stephen Trowbridge: Finally, I'd like to thank our team here at AngioDynamics for their hard work and commitment and we're looking forward to executing further on our strategy and delivering a strong fiscal year 24.

James Clemmer: With that, I'll turn it back to Jim. Thank you, Steve.

James Clemmer: And before we open up the call for questions, I'd like to say a few words.

James Clemmer: Like Steve and I, many of you have had the pleasure of knowing Matt Mashan, who sadly and unexpectedly passed away several weeks ago. Matt did an excellent job following our company for many years and all of us here at AngioDynamics truly enjoyed working with him, both as an analyst and as a person. Matt will be missed and we offer our condolences to his family and his key bank colleagues, particularly Brett.

Operator: Now operator, could you please over up the call for questions? Thank you. If you'd like to ask a question at this time, please press star one from your telephone keypad and the confirmation tone of indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For a distance that may be eating speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please. I'll be poll for questions. Thank you.

Jayson Bedford: Thank you, and our first question today comes from the line of Jason Bedford with Raymond James. Please receive your questions. Hi, good morning, guys. Maybe just to start on the business. Nana nice use is quite strong. I was wondering if you could break out growth US versus internationally and internationally. Are you seeing it mostly in prostate or are you seeing use in other in other areas? Hi, Jason, and actually we're seeing in both.

Jayson Bedford: So we tracked different organs that we treat. There's been some international team has had head start in the US team. They've done a great job establishing establishing relationships internationally with some really strong prostate physicians. And then I'll refer back to the July call we had for Q4. We announced that nice had upgraded our status in the UK. So we think that also has a knock on effect in other areas within Europe Jason.

Jayson Bedford: So we're going to continue to work with our clinicians and grow in Europe in the US. Steve, you have to break them. Yeah, and then Jason we saw strong growth in both geographies. So in the US disposable growth was 28% and in the international markets are disposable growth for Nana knife was about 44%. So we've seen really strong growth both sides of the ocean. On mechanical thrombectomy, you seem to be stabilizing AngioVAC.

Jayson Bedford: AlphaVAC still seems like it's kind of stuck in first year. Can you just give us a little indication as to why growth should improve in AlphaVAC? And I think you also alluded to a second-gen product and I apologize that I may have missed the timing there. No, it's fine. Again, AngioVAC, we're really confident in obviously how the device works at what it does and gaining the breakthrough designation from the FDA's important, because they've acknowledged an area of unmet need that we think AngioVAC can fit or work with them on the study design and get that communicated soon.

Jayson Bedford: Second AlphaVAC, we love the product and the physician feedback is really strong. I was at Perk two weeks ago talking to many, many physicians who've used it, want to try it. The trick for us, Jason, are two things. Completing the APEX PE enrollment, you saw we announced today were 75% of the way there, which is actually a great timeline in being that there are two other good products already with the PE indication.

Jayson Bedford: And we're going at the same pace I think the first one of those went at a couple of years ago and they got their indication. We're really pleased to take up with the product. So we do, if we did announce this morning, we have a couple design enhancements that will launch next calendar year, Jason. So you'll see those enhancements, so really next year is really important for us. We'll have that PE indication we believe about mid calendar year next year.

Jayson Bedford: We'll also have some design enhancements to the product. Anybody does when you know, after you launch the first gen, just base them for the physician feedback to make it a little more intuitive and user friendly, but we have full confidence that AlphaVac F-18 will be a major player, not just PE, but other clot removal within the anatomy. Can you do the design enhancements require an additional filing? No, the simple enhancements, I think they've just done as letters of file to our current design.

Jayson Bedford: Again, I'm answering my regulatory team, but I'm pretty sure that's the case, Jason. We'll let you know. And then just lastly, a lot of others jump in on Orion. Strong. Can you just give us an update in terms of the install base and I realize you don't get a lot upfront for the capital, but is this the growth you're seeing as a procedure driven or have you seen a bulls and placements or capital sound?

Jayson Bedford: Yeah, so in terms of placement, Jason, the net new placements for this quarter were about 10 from where we were finished last year, but we have also, as we talked about in the past, seen a lot of shifting of lasers from some of the lower volume users and moving in the higher volume users. So as we talked last year, we were going to pair back a little bit on buying the new systems and the cache utilization that goes along with that, but we're going to focus on driving utilization, and that's what we've seen.

Jayson Bedford: So we've finished the quarter with right around 415 total lasers in the field. That's about 10 new net from from the end of the year, but then also a significant of a number of lasers that we've been shifting from maybe lower performing customers to finding some of those higher performing customers. Okay, thank you.

Steve Lichtman: Our next question is from the line of Steve Lichtman with Openheimer. Please just use your question. Thank you.

Steve Lichtman: Good morning, guys. It's wondering if, by looking forward to you, Kelpon NanoNight performance outside of the US. Sounds like, you know, that business has been a key performer in your international growth overall. Can you give us any visibility on what that could look like in the coming quarters of the years? What are you seeing on the ground there? How sustainable is that? I see. We think it's sustainable. That was a really strong number Q1.

Steve Lichtman: I don't know if I'll expect that number throughout the course of the year. The team did a great job. But they're also training our partner network to get clinical support during cases and procedures. We're going to have our in Monte Carlo at the end of this month, our fourth clinical symposium. We're have physicians presenting on their experiences and their data with nanolife and a lot of it is highly compelling. So we've got a lot of things happening.

Steve Lichtman: You also have a little knock on effect here as well with our salera growth. We think that nano that as it gets more widely recognized as to how it works, the mechanism of action. We're getting doctors also utilizing our salera at a higher rate. We've got some great competitors in the microwave space. We think our salera is the most effective tool out there. We're seeing doctors also give that a try and adopt it with I think nanolife side by side.

Steve Lichtman: So a lot of good things are happening, Steve. It's going to grow strongly this year. I don't know if I expect the same growth rate during the next couple quarters. But we're also working here in the U.S, as you know to wrap up the data collection on preserve, which will be done next summer. Submit and we hope to get that indication in the U.S, next year. But we just still see strong growth U.S, and actually even prior to that.

Steve Lichtman: Thanks. And then orient small vessel of DBT. You reiterated calendar year 25. You'll talk about some docs that are using it in the field. Can we expect any single center data or anything you're getting a sense on that from your customers from some of those customers from in small vessel TVT. Steve, we're not sure if you'll see any data published by our customers prior to 2025. You know, we hear anecdotes too where people try it in different areas is so confident in how it works.

Steve Lichtman: We're focused on our internal R&D process and the research has shown we're really, really excited about what it does. You know, there's a good aspiration device on the market today that does a really good job in small vessel DBT. But we think what Ariad does in addition to aspiration, the way our laser can disrupt and break up some of the clock we found that our testing is really significant. So we're going to continue to focus on our internal testing, get the product ready for launch.

Steve Lichtman: In the meantime, you know, doctors are always free to do their own research, but I wouldn't expect to see anything I don't believe prior to our launch. And then just lastly, as you're thinking about the mental devices business, how are you thinking about the, you know, balancing the potential benefits of additional sales on the top line or smartgen versus I think you mentioned. Here's some of the cash benefits that those, that those products provide to the overall company.

Steve Lichtman: So, you know, should we be thinking about, you know, potential, additional product line investors ahead or how are you thinking about balancing those two tanks? A couple of things. We've always talked about, you know, our role as an active portfolio manager as we grow our mid tech businesses. But the mid device segment does a terrific job in providing us that cash and the stability to invest in the other side of the house.

Steve Lichtman: And we really love what the business does. We mentioned today, we're highlighted our ports, you know, here we compete against a really great company, the number of company in that market is a strong, great company. Our ports are better and our company is better and our team is strong. So although we're the small guy here, David versus Goliath, you know, we're going to continue to win the categories like ports are mid lines that really well as well.

Steve Lichtman: Pics will always be a battle and we know that, but it's a good business. Steve, we like to balance it provides us today. Let's go back two years ago when we first talked about our transformation into the mid tech business that we want to be. The mid tech was only 15% of our revenue. Now you see it about a third of our revenue. So as that continues to grow, we'll be less reliant on the device, you know, cash and stability, but today we still think it has a good mix over time that could change. Thanks.

John Young: The next question is from the line of John Young with Candigo Genuity. Please excuse your questions.

John Young: Hey Jim, thanks for taking our questions this morning. First from us, just on a MedTech gross margin. It was a great number to see. I know you got to 65% on the high end of the fiscal guidance for the year from MedTech specifically, but it feels a bit conservative. Can you talk about the puts in case here on the gross margin for MedTech? Thanks. Yes, so John, as we've talked about, the overall gross margin, kind of long-term strategy for Angios, that you're going to see gross margin and creation coming from this mixed shift as we have the MedTech products comprise a larger portion of our overall revenue base.

John Young: We've seen that, but we've seen it at the corporate level be chewed up a little bit by some of those inflationary pressures that we've talked about. On the MedTech side, specifically, increased sales and nanonife, as we've stabilized, as Jason talked about, the mechanical thrombectomy business. Those are both going to be pretty good tailwinds for us on the gross margin. Then you've also seen, as we've talked about, pulling back a little bit on brand new lasers being put in the field and trying to increase utilization with those lasers on the Ariane business. All of those things are going to be supportive of that continued shift with the MedTech business, kind of driving that shift over all gross margins. Great. Thanks.

John Young: And then on Apex 2, getting enrollment now, I saw on the side, you know, it's now guide for complete by early calendar 24. It feels like a bit of a push there. Have the other ongoing PE studies in the space impacted the ability to get patients enrolled?

John Young: Hi, John, it's Jim. No, I don't think so. I think if you take a look at when we started enrollment, and when we think we'll finish enrollment, it's about an 18-month window we believe from start to finish. Which I think if you go back and look at the market leader, I think is what they took a few years ago when there's nothing else in the field. So we were a little cautious coming out and knowing that we'd be third in behind the other two players there.

John Young: We thought it might be a little challenging, and it probably was initially, I think there's a lot of momentum building in the product. And physicians, you know, the peers that use it, talk about great outcomes and share some great outcomes along the way. So I think the momentum is building, John, we're really pleased with the schedule. It fits what we internally had projected, and we can't wait to get on label next year, but we'll do the work to finish it right now.

John Young: The question is a good one, because it is a space now. We'll be third in, and it probably will be harder for others. I can't speculate for them, but we have a unique novel device. We're bringing into that space with two other good products there. So we think we'll really get people a choice. Great. Thanks, Jim.

John Young: And me and my last one, I sneak in just on the strategy on capital location. Just thoughts on stock buyback given the strength of the balance sheet and current stock price. Thanks. Yeah, you know, Steve and I talked about that a lot, and we have conversations with our board. I think today given that the external market, you know, kind of disruptions and were things have gone. We want our investors to say, hey, we have a strong balance sheet.

John Young: They won't take a time out for a second. Steve has given you guidance as to where we think our cash utilization will be this year. And if people look back here, go after Q1, Steve gave the same guidance. We really hit that by the end of years. So we're really, we think we're in a good position to utilize the cash we have. We do have a good strong balance sheet with cash.

John Young: We'll always talk about investments that we're looking at. And I'm sure at some point it would be a good conversation around a buyback. We believe there's a disconnect in our value today, a strong disconnect. We'll take a look at that, but we also want to share with investors who want to ensure that we have a stable balance sheet for a while. We get there for you as well. Thanks. Thanks, John.

James Clemmer: I'd now like to turn the call back over to Mr. Clemmer for any closing remarks. Mr. Clemmer. Thank you, your operator.

James Clemmer: And thanks again to all of our AngioDynamics employees. We are on a transformation here, changing our company to one that is highly differentiated by our science and technology that provides meaningful outcomes in patient wellness when our products are utilized. Thanks again to our tremendous employees who enabled us to occur every day. I look forward to speaking with you at the end of our Q2. Thank you.

Operator: This will conclude to these conference. We now disconnect your lines at this time and thank you for your participation.