Q2 2025 AngioDynamics Inc Earnings Call

<unk> session will follow the formal presentation.

If anyone should require operator assistance. Please press star zero on your telephone keypad.

As a reminder, this conference is being recorded.

The news release detailing NGL dynamics fiscal 2025 second quarter results crossed the wire earlier. This morning and is available on the company's website.

This conference call is also being broadcast live over the Internet at the investors section of the company's website at Www Dot NGL dynamics Dot com.

The webcast replay of the call will be available at the same site approximately one hour after the end of today's call.

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 2025, as well as trends that may continue.

Management encourages you to review the company's past and future filings 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.

The company will also include 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 of the company's business over time.

Investors should consider these non-GAAP and pro forma measures. In addition to not as a substitute for or superior to financial reporting measures prepared in accordance with GAAP.

A slide package offering.

Site to the company's financial results is also available on the investors section of the company's website under the events and presentations.

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

I'd now like to turn the call over to Jim Clemmer.

Joe dynamics: And Joe dynamics, President and Chief Executive Officer, Mr. Clemmer.

Joe dynamics: Thank you operator, good morning, everyone and thank you for joining us for Andrew dynamics fiscal 2025 second quarter earnings call joining.

Speaker Change: Joining me on today's call is Steve Trowbridge, Angio dynamics, Executive Vice President and Chief Financial Officer.

Speaker Change: I will begin today's call by providing an overview of our recent performance.

Steve Trowbridge: He will then provide a detailed analysis of our second quarter financial performance.

Speaker Change: I will conclude with our outlook for the balance of the year before opening the line for questions.

Speaker Change: Unless otherwise noted all financial results and growth rates mentioned during todays call are on a pro forma basis, which exclude the results of the dialysis and by our century businesses that we divested in June 2023.

Speaker Change: And the Pic and midline products that we divested in February 2020 for Andy.

Speaker Change: And the radio frequency and syntax support catheter products that we discontinued in February 2024.

Speaker Change: We had a very strong second quarter total worldwide revenue was $73 million representing growth of approximately 9% year over year.

Speaker Change: Our med Tech segment had yet another excellent quarter.

Speaker Change: Growing 25%.

Speaker Change: Led by growth across all of our platforms.

Speaker Change: Beyond the top line, we continued to show strong results with respect to profitability reporting adjusted EBITDA of $3 1 million.

Speaker Change: And generated $2 5 million in operating cash flow.

Speaker Change: Based on our first half performance and the momentum we expect to deliver in the back half of the year.

Speaker Change: We now expect to deliver positive adjusted EBITDA for the full year.

Speaker Change: Illustrating continued execution on our goal of delivering sustained profitability.

Speaker Change: Starting with an update on our med Tech business.

Speaker Change: Are you on continued on a sustained delivery of solid results.

Speaker Change: Growing approximately 22% over the prior year.

Speaker Change: We have continued to execute on our strategy by taking share with a better product, allowing us to increase penetration.

Speaker Change: And drive a higher mix of revenue from hospital customers.

Speaker Change: Turning to our mechanical thrombectomy business.

Speaker Change: We are very encouraged by the performance of both Alfa back and Andrew back, which in combination drew approximately 46% over the second quarter of last year.

And the radio frequency and syntax support catheter products that we discontinued in February 2024.

We had a very strong second quarter total worldwide revenue was $73 million representing growth of approximately 9% year over year.

Speaker Change: And further validates the strength of this broad innovative portfolio.

Angio vacuum Alpha Vac together provide <unk> dynamics with an unparalleled product portfolio option.

Our med Tech segment had yet another excellent quarter.

Speaker Change: And we will continue to leverage the synergies between these two product lines to cement Andrew dynamics as a solid bonafide competitor in this large fast growing high margin market.

Growing 25%.

Led by growth across all of our platforms.

Beyond the top line, we continued to show strong results with respect to profitability reporting adjusted EBITDA of $3 $1 million.

Speaker Change: Beginning with Alfa Bank, we saw solid performance in the quarter.

Speaker Change: With revenue increasing by over 33% versus prior year.

And generated two and a half a million dollars in operating cash flow.

Speaker Change: This also marks the third consecutive quarter of sequential revenue growth.

Based on our first half performance and the momentum we expect to deliver in the back half of the year.

Speaker Change: Highlighting its adoption for treating p/e.

We now expect to deliver positive adjusted EBITDA for the full year.

Speaker Change: Following our FDA clearance in early April and our CE, marking in late May.

Illustrating continued execution on our goal of delivering sustained profitability.

Speaker Change: As noted on our prior call supported by our excellent clinical data.

Starting with an update on our med Tech business.

Speaker Change: And a fully trained sales force, we moved into full market release in both the U S and Europe in June.

Are you on the continued on a sustained delivery of solid results.

Speaker Change: We remain very encouraged by physicians and hospitals willingness to evaluate <unk> for the treatment of P ever.

Growing approximately 22% over the prior year.

We have continued to execute on our strategy.

Speaker Change: Evidenced by the positive utilization trends, we are seeing within existing customer accounts as.

Taking share with a better product, allowing us to increase penetration.

Speaker Change: As well as progress we are making within our new customer pipeline as Alpha Bank is being reviewed as part of a growing number of hospitals value analysis committees.

And drive a higher mix of revenue from hospital customers.

Turning to our mechanical thrombectomy business.

We are very encouraged by the performance of both Alfa back and Andrew attack, which in combination for approximately 46% over the second quarter of last year.

Speaker Change: As expected the vast majority of our growth in the quarter was driven within the U S.

Speaker Change: As our focused commercial efforts in combination with the strength of our apex data.

And further validates the strength of this broad innovative portfolio.

And Joe back in Alpha Vac, together provide engine diagnostics with an unparalleled product portfolio option and.

Speaker Change: Have been very successful.

Speaker Change: In late December data from the apex trial were published in the journal of the society for cardiovascular angiography and interventions.

And we will continue to leverage the synergies between these two product lines to cement Andrew dynamics as a solid bonafide competitor in this large fast growing high margin market.

Speaker Change: One of the Premier peer reviewed journals in the space.

Speaker Change: The publication confirmed the outstanding results announced in May of 2024.

Beginning with the alphabet, we saw solid performance in the quarter.

Speaker Change: Which highlighted that <unk> is safe.

Speaker Change: Effective and highly efficient in treating patients with acute intermediate risk p/e.

With revenue increasing by over 33% versus prior year.

This also marks the third consecutive quarter of sequential revenue growth.

Speaker Change: Importantly, the paper highlighted alpha Vacs 35, 5% reduction in clot burden from the baseline was.

Highlighting its adoption for treating P E. Following our FDA clearance in early April.

Speaker Change: Which compares favorably to the nine 3% reduction reported in the current market leaders I E data.

And our CE, marking in late and Mac.

As noted on our prior call.

Supported by our excellent clinical data.

Speaker Change: This publication is yet another point of validation within the clinical community.

And a fully trained sales force, we moved into full market release in both the U S and Europe in June.

Speaker Change: Should act as a catalyst as many physicians and hospital value analysis committees use studies like these.

We remain very encouraged by physicians and hospitals willingness to evaluate alpha vac for the treatment of P. F.

Speaker Change: To support their decision, making process when evaluating new technologies.

Evidenced by the positive utilization trends, we are seeing within existing customer accounts as.

Speaker Change: Turning to <unk>.

As well as progress we are making within our new customer pipeline as Alpha Bank is being reviewed as part of a growing number of hospitals value analysis committees.

Speaker Change: <unk> indication for alphabet has proven to be a positive catalyst for <unk>.

Speaker Change: As the awareness and utilization of alphabet has grown it has created opportunities for our commercial organization to educate physicians on our entire mechanical thrombectomy portfolio.

As expected the vast majority of our growth in the quarter was driven within the U S.

As our focused commercial efforts in combination with the strength of our apex data.

Speaker Change: This increased engagement has opened doors to new facilities and physicians.

Have been very successful.

Speaker Change: Which helped to drive revenue growth.

In late December data from the apex trial were published in the journal of the society for cardiovascular angiography and interventions.

Speaker Change: Approximately 51%.

Speaker Change: While we don't expect to see this level of growth during the balance of 2025, we.

Speaker Change: We do expect continued broader adoption to drive year over year growth moving forward.

One of the Premier peer reviewed journals in the space.

The publication confirmed the outstanding results announced in May of 'twenty 'twenty four.

Speaker Change: And lastly, within our Med Tech segment as nano knife, which has recently seen a number of exciting developments.

Which highlighted that Alpha bank is safe.

Speaker Change: We continue to be encouraged by trends in the adoption and utilization of nano knife.

Factors and highly efficient in treating patients with acute intermediate risk P E.

Speaker Change: In particular within the urology community as evidenced by approximately 23% growth in probe revenue in the quarter.

Importantly, the paper highlighted alpha Vacs 35, 5% reduction in clot burden from the baseline.

Speaker Change: As outlined on our last call, we expected to achieve multiple key milestones for nano knife by the end of calendar 2024, all of which we did.

Which compares favorably to the 93% reduction reported in the current market leaders I D E data.

Speaker Change: We identified three key pillars that are necessary.

This publication is yet another point of validation within the clinical community.

Speaker Change: Five long term adoption and exciting growth Fernando life.

And should act as a catalyst as many physicians and hospital value analysis committees use studies like these to support their decision making process when evaluating new technologies.

Speaker Change: <unk> regulatory clearances for specific indications.

Speaker Change: Second reimbursement and market access.

Speaker Change: And third increased market awareness.

Turning to angio attack the P E indication for alphabet has proven to be a positive catalyst for angio back.

Speaker Change: We have made significant progress on all three fronts.

Speaker Change: Since our last update.

Speaker Change: With respect to regulatory clearance, we received an expanded indication for the nano knife system for prostate tissue ablation from the FDA in early December.

As the awareness and utilization of alphabet has grown.

It has created opportunities for our commercial organization to educate physicians on our entire mechanical thrombectomy portfolio.

Speaker Change: With this clearance in hand, we can now more proactively market.

This increased engagement has opened doors to new facilities and physicians.

Speaker Change: Educate and train for the procedure in ways that we've been previously unable to do.

Which helped to drive revenue growth.

Approximately 51%.

Speaker Change: With respect to reimbursement and market access.

While we don't expect to see this level of growth during the balance of 2025, we.

Speaker Change: Mid September we participated in the CPT editorial panel meeting.

We do expect continued broader adoption to drive year over year growth moving forward.

Speaker Change: <unk> to a proposal to create a new CPT category, one code specific to IRI and prostate procedures.

And lastly, within our Med Tech segment is narrow knife, which has recently seen a number of exciting developments.

Speaker Change: In October we were thrilled to have been granted a new CPT one code for the treatment of lesions in the prostate and in liver.

We continue to be encouraged by trends in the adoption and utilization of nano knife.

In particular within the urology community.

Speaker Change: The new codes will be effective with physician relative value units attached on January one.

Evidence by approximately 23% growth in probe revenue in the quarter.

As outlined on our last call.

Speaker Change: <unk> 2006.

Speaker Change: We continue to work diligently with our market access teams on coverage coding and payment initiatives to ensure that reimbursement will be widely available across both the commercial and private payers in advance of that effective date.

We expected to achieve multiple key milestones for nano knife by the end of calendar 'twenty 'twenty four all of which we did.

We identified three key pillars that are necessary to drive long term adoption and exciting growth Fernando knife.

Speaker Change: Finally, with respect to our marketing and education strategy to both urologist and patients.

First regulatory clearances for specific indications.

Second reimbursement and market access.

Speaker Change: We began highlighting the quality of outcomes generated during our preserve clinical study.

And third increased market awareness.

We have made significant progress on all three fronts since our last update.

Speaker Change: The pivotal trial, we ran in support of our narrow the knife prostate expanded indication.

With respect to regulatory clearance, we received an expanded indication for the nano life system for prostate tissue ablation from the FDA in early December.

Speaker Change: Preserve evaluated the safety and effectiveness of nano knife for the ablation of prostate tissue in patients with intermediate risk prostate cancer.

Speaker Change: Which included 121 patients enrolled across 17 clinical sites.

With this clearance in hand, we can.

Can now more proactively market educate and train for the procedure in ways that we've been previously unable to do.

Preserve met its primary effectiveness endpoint.

With respect to reimbursement and market access in mid September we participated in the CPT editorial panel meeting.

Speaker Change: Demonstrating the performance of an <unk> system for.

Speaker Change: For the ablation of prostate tissue in patients with intermediate risk prostate cancer.

Related to a proposal to create a new CPT category, one code specific to I R E and prostate procedures.

Speaker Change: At 12 months post procedure.

Speaker Change: 84% of men were free from any clinically significant cancer.

Speaker Change: And the targeted area.

In October we were thrilled to have been granted a new CPT one code for the treatment of lesions in the prostate and in liver.

Just as importantly.

Speaker Change: The study demonstrated extremely compelling quality of life outcomes.

Speaker Change: When men have prostate cancer and are evaluating treatment options there.

The new codes will be effective with physician relative value units attached on January one 'twenty 'twenty six.

Speaker Change: We're forced to choose between effectively treating the cancer.

Speaker Change: And maintaining the quality of life post treatment.

We continued to work diligently with our market access teams on coverage coding and payment initiatives to ensure that reimbursement will be widely available across both the commercial and private payers in advance of that effective date.

Speaker Change: Typically as it relates to sexual and urinary function.

Speaker Change: While traditional treatments, such as radical prostatectomy and radiation therapy.

Speaker Change: Often result in significant breaks of erectile dysfunction, and urinary incontinence following treatment.

Finally, with respect to our marketing and education strategy, So both urologist and patients.

Speaker Change: <unk> targeted approach demonstrates that men need not be forced to make this tradeoff.

We began highlighting the quality of outcomes generated during the or preserve clinical study.

And represents a meaningful advancement in prostate cancer treatment.

Pivotal trial, we ran and support Fernando knife prostate expanded indication.

Speaker Change: And the preserve study.

Speaker Change: Men treated with nano knife.

Preserve evaluated the safety and effectiveness of nano knife for the ablation of prostate tissue in patients with intermediate risk prostate cancer.

Speaker Change: Not have any higher rates of sexual dysfunction after 12 months.

Speaker Change: And as seen with active surveillance.

Speaker Change: Menu undergo no intervention.

Speaker Change: Just as impressively approximately 99% of men did not suffer increased urinary incontinence 12 months post procedure.

Which included 121 patients enrolled across 17 clinical sites.

Preserve met its primary effectiveness endpoint.

Speaker Change: To preserve study validates the robust safety and clinical efficacy, we have seen in more than 32 clinical studies involving over 2600 patients.

Demonstrating the performance of an enterprise system for.

For the ablation of prostate tissue in patients with intermediate risk prostate cancer.

Speaker Change: In addition to the publications that we expect over the coming months to preserve data will be featured at the <unk> annual meeting in Las Vegas at the end of April 2025.

At 12 months post procedure.

84% of men were free from any clinically significant cancer.

And the targeted area.

Just as importantly.

The study demonstrated extremely compelling quality of life outcomes.

Speaker Change: As we look forward to the future of nano knife. We are very excited about what this product can be with the validation of the specific prostate indication.

When men have prostate cancer and are evaluating treatment options. They.

We're forced to choose between effectively treating the cancer.

Speaker Change: In line of sight to a well established reimbursement pathway.

Maintaining the quality of life post treatment.

Speaker Change: With a solid foundation of existing users in the U S.

Particularly as it relates to sexual and urinary function.

Speaker Change: And then established commercial infrastructure.

While traditional treatments, such as radical prostatectomy and radiation therapy.

Speaker Change: We are able to hit the ground running.

Speaker Change: Nano knife has the potential to redefine the standard of care for prostate health.

Often result in significant breaks of erectile dysfunction.

Speaker Change: And delivered treatment outcomes that patients and physicians need.

And urinary incontinence following treatment.

Speaker Change: With its unique mechanism of action in combination with its efficiency and efficacy. It is a fantastic alternative to radical therapies.

They had a nice targeted approach demonstrates that men need not be forced to make this trade off.

And represents a meaningful advancement in prostate cancer treatment.

Speaker Change: Which force patients to make significant quality of life tradeoffs.

And at preserve study.

Men treated with nano knife.

Speaker Change: We believe that these tradeoffs have historically limited the widespread adoption of other focal therapies.

Not have any higher rates of sexual dysfunction after 12 months.

Dan is seen with active surveillance.

We are confident that <unk> can provide a new paradigm for men.

Or a menu undergo no intervention.

Just as impressively.

Speaker Change: We are very excited to provide a deep dive into nano knife and how it can revolutionize the treatment of prostate cancer with our virtual nanometer technology event. Following this earnings call.

Approximately 99% of men did not suffer increased urinary incontinence 12 months post procedure.

To preserve study validates the robust safety and clinical efficacy, we have seen in more than 32 clinical studies involving over 2600 patients.

Speaker Change: Turning to our medical device segment revenue was.

Speaker Change: Approximately flat to the prior year.

Speaker Change: With our U S med device business, increasing about 2% year over year.

In addition to the publications that we expect over the coming months.

Speaker Change: Beyond our commercial execution, we illustrated another significant step towards sustained profitability.

Reserve data.

It'd be featured at the <unk> annual meeting in Las Vegas at the end of April 2025.

Speaker Change: We reported adjusted EBITDA of $3 $1 million during the second quarter.

As we look forward to the future of nano knife. We are very excited about what this product can be with the validation of the specific prostate indication in.

Speaker Change: Compared to a loss of $10000.

Speaker Change: During the second quarter of fiscal 2024.

Speaker Change: In the quarter adjusted EPS was a loss of <unk> <unk> per share.

In line of sight to.

So a well established reimbursement pathway.

With a solid foundation of existing users in the U S.

Speaker Change: Improving from a loss of <unk> <unk> per share in fiscal 2024.

And then established commercial infrastructure.

Speaker Change: And importantly, we generated $2 5 million of operating cash flow.

We were able to hit the ground running.

They had a knife has the potential to redefine the standard of care for prostate health.

Speaker Change: These results highlight that our strategy to drive towards profitability is tracking ahead of plan and we now expect to deliver positive adjusted EBITDA for the full year.

And delivered treatment outcomes that patients and physicians need.

With its unique mechanism of action and <unk>.

Combination with its efficiency and efficacy it is a fantastic alternative to radical therapies.

Speaker Change: Before turning the call over to Steve I wanted to provide a quick update on our shift to outsource manufacturing.

Which force patients to make significant quality of life tradeoffs.

Speaker Change: We have continued to find ways to optimize the process.

We believe that these tradeoffs have historically limited the widespread adoption of other focal therapies.

Speaker Change: And as part of that we have made a decision to keep a portion of our Queensbury facility opened which allows us to make our supply chain more resilient.

We are confident that nano knife can provide a new paradigm for Matt.

Speaker Change: The process remains on track with our expectations.

We are very excited to provide a deep dive into NAND in life and how it can revolutionize the treatment of prostate cancer with our virtual nanometers technology event. Following this earnings call.

Speaker Change: And will allow us to fundamentally change our manufacturing overhead structure and.

Speaker Change: And take out those overhead costs, which will ultimately flow through to our bottom line.

Speaker Change: As a reminder, we.

Speaker Change: We expect this transition to generate approximately $15 million in annualized savings by fiscal 2027.

Turning to our medical device segment.

Revenue was approximately flat to the prior year.

With our U S med device business, increasing about 2% year over year.

Speaker Change: We are very excited about our performance during the second quarter and the momentum we have been able to generate during the first half of the year.

Beyond our commercial execution, we illustrated another significant step towards sustained profitability.

Speaker Change: Our achievements over the past six months in combination with the efforts of our organization over the last three years have transformed Andrew dynamics.

We reported adjusted EBITDA of $3 $1 million during the second quarter.

Compared to a loss of $10000.

Speaker Change: Our focus on driving growth within large and fast growing markets has paid off.

The second quarter of fiscal 2024.

In the quarter adjusted EPS was a loss of four cents per share in.

Speaker Change: Through strategic investments in R&D, and clinical research regulatory submissions and market access initiatives within our med Tech portfolio.

Improving from a loss of eight cents per share in fiscal 2024.

And importantly, we generated two and a half million dollars of operating cash flow.

Speaker Change: We have now successfully expanded our total addressable market.

Speaker Change: <unk> now stands at over $10 billion globally.

These results highlight that our strategy to drive towards profitability is tracking ahead of plan and we now expect to deliver positive adjusted EBITDA for the full year.

Speaker Change: Up from just $3 billion in.

In 2021.

Speaker Change: Not only have we deliberate improving growth, but we have also accelerated our pathway to profitability through operational efficiency initiatives.

Before turning the call over to Steve I wanted to provide a quick update on our shift to outsource manufacturing.

Speaker Change: Supported by the strength of our balance sheet, we are in a fantastic position to bring our innovative technologies to more health care providers and more patients while at the same time, creating shareholder value.

We have continued to find ways to optimize the process.

And as part of that we have made the decision to keep a portion of our Queensbury facility opened which allows us to make our supply chain more resilience.

The process remains on track with our expectations.

Steve Trowbridge: With that I'll turn the call over to Steve Trowbridge our.

And will allow us to fundamentally change our manufacturing overhead structure.

Steve Trowbridge: Our executive Vice President and Chief Financial Officer to review the quarter in more detail.

And take out those overhead costs, which will ultimately flow through to our bottom line.

Steve Trowbridge: Thanks, Jim Good morning, everybody.

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

As a reminder.

We expect this transition to generate approximately $15 million in annualized savings by fiscal 2027.

Speaker Change: As Jim mentioned, unless otherwise noted all metrics and growth rates mentioned during todays call are on a pro forma basis, which exclude the results of the dialysis and biocentric businesses that we divested in June 2023, the <unk> midline products that we divested in February 2024, and the radio frequency in Cintra support catheter products.

We are very excited about our performance during the second quarter and the momentum we have been able to generate during the first half of the year.

Our achievements over the past six months in combination with the efforts of our organization over the last three years have transformed angio dynamics.

Steve Trowbridge: Discontinued in February 2024.

Steve Trowbridge: Our revenue for the second quarter of FY 2025 increased nine 2% year over year to $73 million.

Our focus on driving growth within large and fast growing markets has paid off.

Steve Trowbridge: Driven by growth in both our med Tech and U S med device platforms.

Through strategic investments in R&D and clinical research regulatory submissions in market access initiatives within our med Tech portfolio.

Med Tech revenue was $31 6, million% to 25% year over year increase while med device revenue was $41 5 million flat compared to the second quarter of FY 2024, but as Jim mentioned, our U S. Med device business was up one 6% over the prior year.

We have now successfully expanded our total addressable market, which now stands at over $10 billion globally.

From just $3 billion in.

In 2021.

Steve Trowbridge: For the second fiscal quarter, our med Tech platforms comprised 43, 2% of our total revenue compared to 37, 7% of total revenue a year ago.

Not only have we delivered improving growth, but we have also accelerated our pathway to profitability through operational efficiency initiatives.

Steve Trowbridge: Illustrating sustained execution on our strategy of increasing the percentage of our overall revenue base coming from our Med Tech segment.

Supported by the strength of our balance sheet, we are in a fantastic position to bring our innovative technologies to more health care providers and more patients while at the same time, creating shareholder value.

Steve Trowbridge: Our our ion platform contributed $13 $7 million in revenue during the second quarter growing 21, 8% compared to last year.

Speaker Change: With that I'll turn the call over to Steve Trowbridge, Our executive Vice President and Chief Financial Officer to review the quarter in more detail.

Steve Trowbridge: <unk> has now delivered double digit year over year growth in each of the 14 consecutive quarters following the anniversary of its launch.

Steve Trowbridge: Mechanical thrombectomy revenue, which includes <unk> and <unk> sales increased 46, 2% over the second quarter of FY 2024.

Steve Trowbridge: Thanks, Jim Good morning, everybody.

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

Steve Trowbridge: Alphabet revenue for the second quarter was $2 5 million, an increase of 33, 3% year over year and 14% sequential increase over the first quarter of 2025, resulting from the continued adoption of Alphatec for PE.

Steve Trowbridge: As Jim mentioned, unless otherwise noted all metrics and growth rates mentioned during todays call are on a pro forma basis, which exclude the results of the dialysis and biosurgery businesses that we divested in June 2023.

Steve Trowbridge: Taking midline products that we divested in February 2024, and the radio frequency and <unk> support catheter products that we discontinued in February 2024.

Steve Trowbridge: We're pleased to see the strong performance of angio back during the quarter, which generated $8 1 million of revenue an increase of 57% year over year.

Steve Trowbridge: As Jim mentioned, the combined strength of <unk> and Alphatec illustrate the strength of our comprehensive mechanical thrombectomy portfolio there.

Steve Trowbridge: Our revenue for the second quarter of FY 2025 increased nine 2% year over year to $73 million driven by growth in both our med Tech and U S med device platforms.

Steve Trowbridge: We're definitely seeing synergies between the two product offerings, we remain very encouraged by the universally positive feedback, we're receiving regarding alphabet as well as the increased adoption of <unk>.

Steve Trowbridge: Med Tech revenue was $31 6, million% to 25% year over year increase while med device revenue was $41 5 million flat compared to the second quarter of FY 2024, but as Jim mentioned, our U S. Med device business was up one 6% over the prior year.

Steve Trowbridge: The mechanical thrombectomy market continues to be one of the most exciting fastest growing med tech markets. Although the market is currently led by two large scale competitors and geodynamics continues to demonstrate our ability to take share positioning us as a strong number three.

Steve Trowbridge: For the second fiscal quarter, our med Tech platforms comprised 43, 2% of our total revenue compared to 37, 7% of total revenue a year ago illustrating sustained execution on our strategy of increasing the percentage of our overall revenue base coming from our Med Tech segment.

Steve Trowbridge: We are excited about our current growth trajectory and our future prospects in this market led by our innovative portfolio.

Steve Trowbridge: Total net revenue was $6 million, an increase of four 9% over the prior year quarter.

Steve Trowbridge: And a nice disposable revenue during the quarter increased 23, 1%.

Steve Trowbridge: Our our ion platform contributed $13 7 million in revenue during the second quarter growing 21, 8% compared to last year all.

Steve Trowbridge: As we've discussed throughout the year, we expect capital sales during the year to be approximately half of what they were in 2024 and in line with those expectations capital sales declined 39, 7% during the quarter.

Steve Trowbridge: Alright, one has now delivered double digit year over year growth in each of the 14 consecutive quarters following the anniversary of its launch.

Steve Trowbridge: Mechanical thrombectomy revenue, which includes alphabet and <unk> sales increased 46, 2% over the second quarter of FY 2024.

Steve Trowbridge: We were very pleased with the trajectory of prostate cases in the quarter and are on track for our projections for nano night for the full year.

Steve Trowbridge: While we expect to see increasing contribution from nano nice following the positive reimbursement decision received in October and the prostate indication received in December. These milestones were built into our expectations for fiscal year 2025 and are already reflected in our guidance for the year.

Steve Trowbridge: Alphabet revenue for the second quarter was $2 5 million, an increase of 33, 3% year over year and 14% sequential increase over the first quarter of 2025, resulting from the continued adoption of Alphatec for P.

Steve Trowbridge: Moving down the income statement, our gross margin for the second quarter of FY 2025 was 54, 7% a decrease of 10 basis points compared to the year ago period, but ahead of our expectations for the quarter.

Steve Trowbridge: We're pleased to see the strong performance of angio back during the quarter, which generated $8 1 million of revenue an increase of 57% year over year.

Speaker Change: As Jim mentioned, the combined strength of angio vacuum alphabet illustrate the strength of our comprehensive mechanical thrombectomy portfolio.

Speaker Change: For the second fiscal quarter Med Tech gross margin was 63, 7% an increase of 120 basis points.

Speaker Change: They're definitely seeing synergies between the two product offerings, we remain very encouraged by the universally positive feedback, we're receiving regarding alphabet as well as the increased adoption of NGL back.

Primarily driven by mix associated with increased <unk> revenue.

Speaker Change: Med device gross margin was 47, 8% a decrease of 240 basis points, primarily driven by inflationary pressures and costs associated with the transition to outsource manufacturing.

Speaker Change: The mechanical thrombectomy market continues to be one of the most exciting fastest growing med tech markets. Although the market is currently led by two large scale competitors Andrew dynamics continues to demonstrate our ability to take share positioning us as a strong number three.

Speaker Change: Turning to R&D, our research and development expense during the second quarter of FY 2025 was $6 4 million or eight 8% of sales compared to $8 3 million or 12, 5% of sales a year ago.

We are excited about our current growth trajectory and our future prospects in this market led by our innovative portfolio.

Speaker Change: The year over year decrease is primarily related to timing, including the completion of our preserve and apex clinical studies.

Speaker Change: Yeah.

Speaker Change: Total net revenue was $6 million, an increase of four 9% over the prior year quarter.

Speaker Change: We remain committed to investing in R&D initiatives to support the long term growth of our Med Tech segment.

Speaker Change: They had a nice disposable revenue during the quarter increased 23, 1%.

Speaker Change: As we've discussed throughout the year, we expect capital sales during the year to be approximately half of what they were in 2024 and in line with those expectations capital sales declined 39, 7% during the quarter.

SG&A expense for the second quarter of FY 2025 was $36 million, representing 49, 3% of sales compared to $33 2 million or <unk> 49, 7% of sales a year ago.

Speaker Change: We were very pleased with the trajectory of prostate cases in the quarter and are on track for our projections for nano night for the full year.

Speaker Change: Our adjusted net loss for the second quarter of FY 2025 was $1 7 million or an adjusted loss per share of <unk> <unk> compared to an adjusted net loss of $3 4 million or an adjusted loss per share of <unk> <unk> in the second quarter of last year.

While we expect to see increasing contribution from nano and I. Following the positive reimbursement decision received in October and the prostate indication received in December. These milestones were built into our expectations for fiscal year 2025 and are already reflected in our guidance for the year.

Speaker Change: Year over year improvement is largely attributable to higher revenue and improving operating leverage during the second quarter of this year.

Speaker Change: Moving down the income statement, our gross margin for the second quarter of FY 2025 was 54, 7% a decrease of 10 basis points compared to the year ago period, but ahead of our expectations for the quarter.

Speaker Change: Adjusted EBITDA in the second quarter of FY 2025 was a gain of $3 1 million compared to a loss of 10000 in the second quarter of 2024.

Speaker Change: Turning to an update on our balance sheet at November 32024, we had $54 1 million in cash and cash equivalents inclusive of the cash utilized in our stock repurchase program compared to $55 million in cash and cash equivalents at August 31 2024.

For the second fiscal quarter Med Tech gross margin was 63, 7% an increase of 120 basis points.

Speaker Change: Primarily driven by mix associated with increased <unk> revenue.

Speaker Change: Med device gross margin was 47, 8% a decrease of 240 basis points, primarily driven by inflationary pressures and costs associated with the transition to outsource manufacturing.

Speaker Change: As a reminder, we currently have zero debt.

Speaker Change: In the second quarter of fiscal 'twenty, five we generated $2 5 million in operating cash and capital expenditures of <unk> 8 million and additions to Oregon placement and evaluation units of $1 2 million.

Speaker Change: Turning to R&D, our research and development expense during the second quarter of FY 2025 was $6 4 million or eight 8% of sales compared to $8 3 million or 12, 5% of sales a year ago.

For the balance of the year, we expect to utilize approximately $10 million of cash in the third quarter before returning to cash generation in the fourth quarter.

Year over year decrease is primarily related to timing, including the completion of our preserve and apex clinical studies.

Speaker Change: As we stated in July we're targeting to end the year with approximately $60 million of cash on the balance sheet.

We remain committed to investing in R&D initiatives to support the long term growth of our Med Tech segment.

Speaker Change: Cash utilization in the third quarter will be driven by scheduled payments associated with the settlement of our patent litigation with BD Bard that we executed last year and working capital usage connected with our transition manufacturing arrangement with spectrum vascular the company, we sold our pick and midline business to in February of last year.

Speaker Change: SG&A expense for the second quarter of FY 2025 was $36 million, representing 49, 3% of sales compared to $33 2 million or 49, 7% of sales a year ago.

Speaker Change: While we have been managing working capital associated with this transition manufacturing arrangement since the divestiture, we do expect working capital requirements to increase during the back half of our fiscal year as we progress towards full manufacturing transfer during our calendar 2025.

Speaker Change: Our adjusted net loss for the second quarter of FY 2025 was $1 7 million or an adjusted loss per share of <unk> compared to an adjusted net loss of $3 4 million or an adjusted loss per share of <unk> in the second quarter of last year.

To leverage the strength of our balance sheet. We are evaluating the addition of a working capital revolving credit facility, while we're very comfortable with the current amount of cash on the balance sheet. We view. The addition of our revolver as a matter of prudent financial housekeeping when that further bolsters our balance sheet and provides for increased flexibility and optionality at a relatively low cost capital <unk>.

Speaker Change: Year over year improvement is largely attributable to higher revenue and improving operating leverage during the second quarter of this year.

Adjusted EBITDA in the second quarter of FY 2025, with a gain of $3 1 million compared to a loss of 10000 in the second quarter of 2024.

Speaker Change: Zero dilution.

Speaker Change: Turning to an update on our balance sheet at November 32024, we had $54 1 million in cash and cash equivalents inclusive of the cash utilized in our stock repurchase program compared to $55 million in cash and cash equivalents at August 31 2024.

Speaker Change: We are extremely proud of our cash position and balance sheet management and will continue to appropriately manage working capital as we turn to proving that our business model generates cash for the full year in the next couple of quarters.

Speaker Change: Through the continued execution of our growth strategy and operational efficiency initiatives and our demonstrated progress towards profitability. We remain on track with our stated goal of being cash flow positive for the full year of fiscal 2026.

Speaker Change: As a reminder, we currently have zero debt.

In the second quarter of fiscal 'twenty, five we generated $2 5 million in operating cash and capital expenditures of <unk> 8 million and additions to Oregon placement and evaluation units of $1 2 million.

Speaker Change: As announced in July of calendar 2024, the company approved a stock repurchase program authorizing purchases of up to $15 million of our outstanding common shares.

Speaker Change: For the balance of the year, we expect to utilize approximately $10 million cash in the third quarter before returning to cash generation in the fourth quarter as we stated in.

Speaker Change: Through the end of the fiscal second quarter, we purchased approximately $1 7 million worth of stock at an average share price of $6 82.

Speaker Change: <unk>, we're targeting to end the year with approximately $60 million of cash on the balance sheet.

Speaker Change: We will continue to be opportunistic about our decision to make further repurchases on a number of factors including market conditions.

Speaker Change: Cash utilization in the third quarter will be driven by scheduled payments associated with the settlement of our patent litigation with BD Bard that we executed last year and working capital usage connected with our transition manufacturing arrangement with spectrum vascular the company, we sold our picking midline business to in February of last year.

Speaker Change: As the need to balance investment in our growth strategy as we seek to leverage the strength of our balance sheet to create value for our shareholders.

Speaker Change: And turning now to guidance for fiscal year 2025, we continue to expect revenue will be in the range of $282 million to $288 million representing growth of between four 2% and six 4% over fiscal year 2024.

Speaker Change: We've been managing working capital associated with this transition manufacturing arrangement since the divestiture, we do expect working capital requirements to increase during the back half of our fiscal year as we progress towards full manufacturing transfer during our calendar 2025.

Speaker Change: Within each of our businesses, we now expect med Tech net sales to grow in the range of 12% to 15% ahead of our previous guidance of 10% to 12% and we now expect med device net sales to be about flat down from the previous guidance of 1% to 3%.

Speaker Change: To leverage the strength of our balance sheet. We're evaluating the addition of a working capital revolving credit facility, while we're very comfortable with the current amount of cash on the balance sheet. We view. The addition of a revolver as a matter of prudent financial housekeeping when that further bolsters our balance sheet and provides for increased flexibility and optionality at a relatively low cost capital <unk>.

Speaker Change: From a quarterly cadence perspective, we expect the balance of the year to follow a typical seasonality pattern with total revenue in the third quarter being slightly down sequentially from the second quarter with the fourth quarter being the strongest of the fiscal year.

Speaker Change: Zero dilution.

Speaker Change: We are extremely proud of our cash position and balance sheet management, and we will continue to appropriately manage working capital.

For fiscal 2025, we continue to expect gross margin to be in the range of 52% to 53%.

Speaker Change: As we turn to proving that our business model generates cash for the full year in the next couple of quarters.

Speaker Change: We now expect adjusted EBITDA in the range of a gain of $1 million to $3 million up from the previous guidance of a loss of $2 5 million to zero.

Speaker Change: Through the continued execution of our growth strategy and operational efficiency initiatives and our demonstrated progress towards profitability. We remain on track with our stated goal of being cash flow positive for the full year of fiscal 2026.

Speaker Change: And finally, we now expect an adjusted loss per share in the range of 34 to 38.

Speaker Change: An improvement from our previous guidance of a loss per share of 38 to 42.

Speaker Change: As announced in July of calendar 2024, the company approved a stock repurchase program authorizing purchases of up to $15 million of our outstanding common shares.

Jim: With that I'll turn it back to Jim.

Jim: Thanks, Steve looking to the balance of the year, we will remain focused on a number of key strategic areas of our business aimed at driving growth.

Speaker Change: Through the end of the fiscal second quarter, we purchased approximately $1 7 million worth of stock at an average share price of $6 82.

Jim: Starting with Oregon, and the U S. We will leverage the momentum built during the first half of the year to continue to drive increased penetration with a particular focus on the hospital setting.

Speaker Change: We will continue to be opportunistic about our decision to make further repurchases on a number of factors, including market conditions as well as the need to balance investment in our growth strategy as we seek to leverage the strength of our balance sheet to create value for our shareholders.

Jim: Having received a CE mark in late Q1.

Speaker Change: And turning now to guidance for fiscal year 2025, we continue to expect revenue will be in the range of $282 million to $288 million representing growth of between four 2% and six 4% over fiscal year 2024.

Jim: We have now shifted to a full market release in Europe.

Jim: Which we expect to make a positive impact on revenues during the back half of the year.

Jim: We will continue to develop supporting clinical data and launching new product line extensions as we move forward.

Speaker Change: Within each of our businesses, we now expect med Tech net sales to grow in the range of 12% to 15% ahead of our previous guidance of 10% to 12% and we now expect med device net sales to be about flat down from the previous guidance of 1% to 3%.

Speaker Change: With alphabet.

Speaker Change: We continue to push ahead commercially as we focus on driving increased adoption for the treatment of P/e.

Speaker Change: To support that.

Speaker Change: We will continue to invest in high quality clinical data highlighting the differentiation of our products to help support long term adoption.

Speaker Change: From a quarterly cadence perspective, we expect the balance of the year to follow a typical seasonality pattern with total revenue in the third quarter being slightly down sequentially from the second quarter with the fourth quarter being the strongest of the fiscal year.

Speaker Change: In addition, we continue to expect to launch new product enhancements over the course of the year to refine and improve usability.

Speaker Change: For fiscal 2025, we continue to expect gross margin to be in the range of 52% to 53%.

Speaker Change: And lastly, with nanometers with prostate indication in hand, as well as the clarity around the reimbursement pathway in the U S.

Speaker Change: We now expect adjusted EBITDA in the range of a gain of $1 million to $3 million up from the previous guidance of a loss of $2 5 million to zero.

Speaker Change: We expect to leverage our well established commercial infrastructure and high quality clinical data to drive increased long term adoption in the U S for prostate.

And finally, we now expect an adjusted loss per share in the range of 34 to 38 cents and.

Speaker Change: Movement from our previous guidance of a loss per share of 38 to 42.

Speaker Change: To that end I would like to remind everyone that we will be hosting a virtual <unk> specific event at 930 am eastern time to provide an in depth overview on our market opportunity.

Jim: With that I'll turn it back to Jim.

Jim: Thanks, Steve looking to the balance of the year, we will remain focused on a number of key strategic areas of our business aimed at driving growth.

Jim: Starting with Oregon, and the U S. We will leverage the momentum built during the first half of the year to continue to drive increased penetration with a particular focus on the hospital setting.

Speaker Change: <unk> technology, and our go to market strategy.

Speaker Change: We continue to be very excited about the future at angio dynamics.

Speaker Change: With the tremendous work done.

Jim: Having received a CE mark in late Q1.

Speaker Change: Cross our organization to transform our portfolio to focus on large high growth markets and overhaul our financial profile supported by the strength of our balance sheet.

Jim: We have now shifted to a full market release in Europe.

Jim: Which we expect to make a positive impact on revenues during the back half of the year.

Speaker Change: We are on the precipice of being able to deliver sustainable profitable growth for years to come.

Jim: We will continue to develop supporting clinical data and launching new product line extensions as we move forward.

Speaker Change: With that operator, I will now open the line for questions.

Jim: With alphabet, we continue to push ahead commercially as we focus on driving increased adoption for the treatment of P E.

Speaker Change: Thank you well now be conducting a question and answer session.

Speaker Change: If you'd like to ask a question at this time you May press star one from your telephone keypad and a confirmation tone will indicate your line is in the question queue.

Jim: To support that.

Jim: We will continue to invest in high quality clinical data highlighting the differentiation of our products to help support long term adoption.

Speaker Change: You May press star two if he like to withdraw your question from the queue.

Speaker Change: This is city using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Jim: In addition, we continue to expect to launch new product enhancements over the course of the year to refine and improve usability.

Speaker Change: One moment, please while we poll for questions. Thank.

Speaker Change: Thank you.

Jim: And lastly, with nano life with prostate indication in hand, as well as the clarity around the reimbursement pathway in the U S.

Speaker Change: Our first question today comes from the line of John Young with Canaccord Genuity. Please proceed with your questions.

John Young: Hey, Jim and Steve.

John Young: Thanks for taking the questions. This morning, and congrats on a great quarter I think I'll hold my prostate questions until the event later, so maybe I could just start on Mr. Thrombectomy progress that you guys made.

Jim: We expect to leverage our well established commercial infrastructure and high quality clinical data to drive increased long term adoption in the U S for prostate.

It's really encouraging to see it first what drove that.

Jim: To that end I would like to remind everyone that we will be hosting a virtual inner life specific event at 930, a M. Eastern time to provide an in depth overview of.

John Young: Acceleration angio back in house.

John Young: Sustainable do you think Baxter <unk> could be.

John Young: And then for Alfa back really just a matter of effective commercial execution here to be successful.

Jim: On our market opportunity.

John Young: What are the plans of what's working what's not and how do you think about that back.

Jim: In analytics technology, and our go to market strategy.

John Young: Pipeline that you guys mentioned on the call and then maybe just sneak in a third question here just in light of the M&A and the stack JV saw this week.

Jim: We continue to be very excited about the future at angio dynamics.

Jim: With the tremendous work done.

Jim: Across our organization to transform our portfolio to focus on large high growth markets and overhaul our financial profile supported by the strength of our balance sheet.

John Young: What.

John Young: What changes in your commercial plans because of that and then also how do you think about monetizing any value creation here in terms of getting the best tariff technology in your hands or someone else's hands.

Jim: We are on the precipice of being able to deliver sustainable profitable growth for years to come.

John Young: Hi, John Thanks for the question.

A few things we learned it has gone really well now with our selling and marketing team and our clinical support teams are fully trained on both <unk> and Alphatec and we've really found from the customer pointing synergies back to us. So our teams are sometimes I'll give you. An example, making sales presentations on the P/e device with alphabet, why we think thats, a safe and effective to use and along the way we get a lot of agree.

Jim: With that operator, I will now open the line for questions.

Jim: Thank you well now be conducting a question and answer session.

Jim: Do you like to ask a question at this time you May press Star one from your telephone keypad, a confirmation tone will indicate your line. This is the question queue.

Jim: You May press star two if he like to Australia. Your question from the queue.

John Young: And then the doctors are saying wait a and you guys also have a <unk> device I've seen it before I'm not sure about or walk me through it. So we're getting a lot of synergistic selling opportunities that didnt occur before we the ones opening the door for the other which is terrific. So as we go forward, our selling and marketing teams are really selling mechanical thrombectomy products and thats really what the pipeline that we have built.

Jim: This facility using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Jim: One moment, please while we poll for questions. Thank.

Jim: Thank you.

Speaker Change: Our first question today comes from the line of John Young with Canaccord Genuity. Please proceed with your questions.

John Young: Tough around both products, which are both unique both very very different and solve different needs of the market. So we're going to continue to do that John we've learned a lot and we're adding new selling and marketing resources as we go and we're getting more people who joined our company that come already from the space that are skilled and knowledgeable and have relationships. They want to join our team represent.

John Young: Hey, Jim and Steve.

Speaker Change: Thanks for taking the questions. This morning, and congrats on a great quarter I think I'll hold my prostate questions until the event later, so maybe I could just start on Mr. Thrombectomy progress that you guys made.

John Young: It's really encouraging to see it first what drove that.

John Young: Acceleration angio backend.

John Young: Our products. So that's been helpful. John we think that will keep the momentum going in both Asia vacuum alphabet, Steve, Yes, I think thats exactly right just to build a little bit on what Jim said, we are learning that there is a.

John Young: Sustainable do you think that acceleration could be.

John Young: And then for Alfa back really just a matter of effective commercial execution here to be successful.

John Young: What are the plans of what's working what's not and how do you think about that back.

Steve Trowbridge: Very identifiable benefit to the comprehensive portfolio offering that we have with both <unk> and alphabet.

John Young: Pipeline that you guys had mentioned on the call and then maybe just sneak in a third question here just in light of the M&A and the stack JV saw this week.

Steve Trowbridge: It's something that we're finding some that we're pleasantly surprised about how well theyre working together as we go to market now.

John Young: What.

Steve Trowbridge: A little bit last year about some of the changes in <unk> and some of the new training with our sales force as Jim said I think the training of the full sales force has allowed us to really leverage this comprehensive portfolio.

John Young: What changes in your commercial plans because of that and then also how do you think about monetizing any value creation here in terms of getting the best tariff technology in your hands or someone else's hands.

Steve Trowbridge: So when you look at our results. The overall mechanical thrombectomy combined with Andrew back in alphabet is something that has us really excited we're pleased with alphabet. We're pleased with the progress that we're seeing the feedback we're getting is universally positive from physicians, who have had their chance to get their hands on the device. We think our device and alpha that can do things that no. Other device on the market can do as a reminder, we're still.

Speaker Change: Hi, John Thanks for the question.

Speaker Change: A few things we learned it has gone really well now with our selling and marketing team and our clinical support teams are fully trained on both ends you're backing off of that and we've really found from the customer pointing synergies back to us. So our teams are sometimes I'll give you. An example, making sales presentations on the P/e device with alphabet why do we think thats, a safe and effective to use and along the way we get a lot of agree.

Steve Trowbridge: And our first generation. So we've got some line extension that Jim talked about coming out. This year will continue to innovate on that but we're going to continue to really leverage the combined portfolio that we have because we're seeing that that gives us a little bit of a different story than some other folks in the market with your question on the back pipeline absolutely getting the data published we think is going to be important.

Speaker Change: And then the doctors are saying wait or are you guys also have this andrew back device I've seen it before I'm not sure about or walk me through it. So we're getting a lot of synergistic selling opportunities that didnt occur before we the ones opening the door for the other which is terrific. So as we go forward, our selling and marketing teams are really selling mechanical thrombectomy products and that's really what the pipeline that we have built.

You know that this is a little bit of a crowded space.

Steve Trowbridge: It's been kind of some top heavy market leaders and Theres a lot of folks who are in trials as we speak we have already gone through that we've committed.

Speaker Change: Around both products, which are both unique both very very different and solve different needs of the market. So we're going to continue to do that John we've learned a lot and we're adding new selling and marketing resources as we go and we're getting more people who joined our company that come already from the space that are skilled and knowledgeable and have relationships. They want to join our team represent.

Steve Trowbridge: Performed in our trial, we completed it you saw the results, particularly when it comes to removal of clot burden and how we believe the alphabet is significantly better than the other products that are on the market. We think continuing to leverage that is going to drive some some expansion through the back process. While they go back to what we were saying before and really leverage that combined portfolio.

Speaker Change: Our products. So that's been helpful. John we think that will keep the momentum going in both paid your vacuum alphabet, Steve Yes, I think thats exactly right just to build a little bit on what Jim said, we are learning that there is a very identifiable benefit to the comprehensive portfolio offering that we have with both <unk> and alphabet.

Steve Trowbridge: Sure.

Speaker Change: That's not lost on US the news that you were talking about some of the M&A activity. You question in terms of what changes in our commercial plants look we're always going to assess that and on what it means for us I think the what we're going to continue to do is leverage the combined portfolio as Jim mentioned continue to invest in our sales and marketing teams and invest in the resources that we give those teams.

Speaker Change: It's something that we're finding some that we're pleasantly surprised about how well theyre working together as we go to market now can you talk a little bit last year about some of the changes in NGL back in some of the new training with our sales force as Jim said I think the training of the full sales force has allowed us to really leverage this comprehensive portfolio and so when you look at our results the AUM.

Speaker Change: And we think that we are very well positioned to continue to show that we are a strong player in this exciting market and we're going to continue to take share and drive growth.

Speaker Change: Great. Thanks, and then maybe just a follow up on oriented quarter.

On mechanical thrombectomy combined with Andrew back in alphabetic is something that has us really excited we're pleased with Alphatec. We're pleased with the progress that we're seeing the feedback we're getting is universally positive from physicians, who have had their chance to get their hands on the device. We think our device and alpha that can do things that no. Other device on the market can do as a reminder, we're still in our first generation. So we've got some line extensions.

Speaker Change: Quarter over quarter, seeing a little bit of slowing here I know you guys are really focused on the hospital outpatient opportunity. When it comes to OBL do you think that opportunity essentially as breach and feeling and then on the <unk> opportunity for the second half of this year can you talk about the reimbursement dynamics in Europe, and maybe impacted asps.

Speaker Change: Jim talked about coming out this year, we will continue to innovate on that but we're going to continue to really leverage the combined portfolio that we have because we're seeing that that gives us a little bit of a different story than some other folks in the market with your question on the Bakken pipeline are absolutely getting the data published we think is going to be important.

Speaker Change: Expected, thanks, again for taking our questions.

Speaker Change: Thanks, John I think the RF team is off to a great start the first six months of this year quarter to quarter dynamics.

Speaker Change: We don't measure that closely there is always a couple of little things, but they are off to a great start this great momentum there and it's really built upon the actual product itself is a really amazing product improvement already how safe and effective it is that our shift our team to really did a great job of about 18 months ago, we talked about it publicly with that shift in our focus going from the <unk> initial focus over to the hospital.

Speaker Change: Know that this is a little bit of a crowded space.

Speaker Change: And then kind of some top heavy market leaders and Theres a lot of folks who are in trials as we speak we've already gone through that we've committed.

Speaker Change: Performed in our trial, we completed it you saw the results, particularly when it comes to removal of clot burden and how we believe the alphabet is significantly better than the other products that are on the market. We think continuing to leverage that is going to drive some some expansion through the vac process. While we go back to what we were saying before and really leverage that that combined portfolio.

Gone really well I think we're now a little over 35% of our revenue is coming from the hospital customer shows how well received now and again when we win share. There wondering if I'm really good companies that are entrenched in those spaces that have the ability to bundle other products that we don't have so we are winning those share based upon the ability of our product outperformed the other products. So we're bullish there.

Speaker Change: That's not lost on US the news that you were talking about in some of the M&A activity. Your question in terms of what changes in our commercial plants look we're always going to assess that and on what it means for us I think the what we're going to continue to do is leverage the combined portfolio as Jim mentioned continue to invest in our sales and marketing teams investing the resources that we.

Speaker Change: We'll continue to do so John and grow in that space, but we're not abandoning the OBL those are still good customers, we're getting new opportunities all the time, there but for US we've talked about it publicly we standby the shift to the hospital customer is really important for us and we will continue there.

Speaker Change: Dr. <unk> put on the European reimbursement Thats, probably very complicated don't know if I have all the knowledge here John to give you that country by country than people, who lead our business are very well knowledgeable in the space. They plan for this they've been fully trained our distributor partners are fully trained ready to go and establish ourselves in the European market based on opportunity first as you know.

Speaker Change: Give those teams.

Speaker Change: And we think that we are very well positioned to continue to show that we are a strong player in this exciting market and we're going to continue to take share and drive growth.

Speaker Change: Great. Thanks, and then maybe just a follow up on oriented just quarter over quarter being a little bit of slowing here. I know you guys are really focused on the hospital outpatient opportunity. When it comes to OBL do you think that opportunity is actually as breaches ceiling and then on the O U S opportunity for the second half of this year can you talk about the reimbursement.

Speaker Change: The company our size can't approach all markets, we have a targeted approach platform ready to go when we're doing that as we speak so maybe over time, we can give you more details on that and specifically to your question on reimbursement here in the U S and the dynamics in the OBL versus the AUC or area in hospital as you know theres been some reimbursement pressures in this business over the last.

Speaker Change: Dynamics in Europe, and maybe impacted as TWC expected. Thanks again for taking my questions.

Speaker Change: Few years.

Speaker Change: As we said from the beginning it's something we expected it's something we expected when we did the due diligence and looking to buy this product. So if we took it from zero revenue when we bought at a run rate that exceeds over $50 million now we're pretty pleased with the process and we said that we didn't think any of those changes would be derailing and they haven't been in terms of what you've seen recently over the last quarter not surprising to us and fits right.

Speaker Change: Yes.

Speaker Change: John I think the R&D team is off to a great start in the first six months of this year.

Speaker Change: After the quarter dynamics, we don't measure that closely there's always a couple of little things, but they are off to a great start this great momentum there.

Speaker Change: Really built upon the actual product itself is a really amazing product improvement already how safe and effective it is that our shift our team to really did a great job of about 18 months ago, we talked about it publicly with that shift in our focus going from the <unk> initial focus over to the hospitals, it's gone really well I think we're now a little over 35% of our revenue is coming from the hospital costs.

Speaker Change: Within our strategy.

Ken: Thanks, Ken.

Speaker Change: Our next questions are from the line of Steve Lichtman with Oppenheimer. Please proceed with your questions.

Speaker Change: It shows how well received now and again when we win share there, but wondering if I'm really good companies that are entrenched in those spaces that have the ability to bundle other products that we don't have so we're winning those share based upon the ability of our products outperformed the other products. So we're bullish that we'll continue to do so John and grow in that space, but we're not abandoning the OBL those are still good customers.

Steve Lichtman: Thank you good morning, guys and congrats on the continued progress.

Steve Lichtman: I wanted to start on mechanical thrombectomy, great to see the cross selling opportunities beginning here.

Steve Lichtman: As you look at the portfolio across the two products.

Steve Lichtman: What is your outlook for for growth here in the back half of the year, obviously, Andrew back came in well ahead of expectations in the second quarter. So just trying to get a sense of how youre thinking about the combined as we look out here over the next couple of quarters.

We're getting new opportunities all the time, there, but for US we've talked about it publicly we standby the shifted the hospital customer is really important for us and we'll continue there.

Speaker Change: Back to you put on the European reimbursement Thats, probably very complicated I don't know if I have all the knowledge here John to give you that country by country than people, who lead our business are very well knowledgeable in the space. They have planned for this statement fully trained our distributor partners are fully trained and ready to go and establish ourselves in the European market based on opportunity first as you know.

Steve Lichtman: Yeah. So we haven't given specific guidance on what we expect as we did say that we expect mechanical thrombectomy as a portfolio to be a meaningful contributor to our growth for this year and we feel we're clearly on track to show that we're very pleased with the performance that we saw in the first half we expect to continue to see sequential growth as well as significant growth year over year.

Speaker Change: The company our size can't approach all markets, we have a targeted approach platform ready to go when we're doing that as we speak so maybe over time, we can give you more details on that and specifically to your question on reimbursement here in the U S and the dynamics in the OBL versus the AUC or area in hospital as you know theres been some reimbursement pressures in this business over the.

Steve Lichtman: We proceed through the full year.

Steve Lichtman: As we continue to assess and have learnings around the portfolio opportunity that we have we'll refine those expectations a little bit but your expectation should be you continue to see double digit growth in the back half.

Steve Lichtman: Okay great.

Speaker Change: Last few years.

Steve Lichtman: You already spoke to some of the near term.

Speaker Change: As we said from the beginning it's something we expected it's something we expected when we did the due diligence and looking to buy this product. So we took it from zero revenue when we bought at a run rate that exceeds over $50 million now we're pretty pleased with the process and we said that we didn't think any of those changes would be derailing and they haven't been in terms of what you've seen recently over the last quarter not surprising to us and fits right.

Steve Lichtman: Potential drivers for Ari on longer term I know you had been looking at potential.

Steve Lichtman: Indication expansion to Iliofemoral DVT.

In coronary can you update us on where you are relative to those.

Steve Lichtman: Yes.

Speaker Change: Within our strategy.

Steve Lichtman: So a couple of things going on we believe this unique product actually performed really well in the two areas that you just mentioned, we believe it could be a DVT product the way. It works that will take a little more work from us not just on the R&D work with the regulatory clearances that are in front of us. So we've not talked about.

Ken: Thanks, Ken.

Speaker Change: Our next questions are from the line of Steve Lichtman with Oppenheimer. Please proceed with your questions.

Steve Lichtman: Thank you good morning, guys and congrats on the continued progress.

Steve Lichtman: <unk> are yet to open up a program. There. We've also talked about we believe it can be really effective in the coronary space, we understand the pathway process. There. It's complicated. So we're looking at it internally does that make sense for us. It's a really great market opportunity. We think our product performed really well in that space. It's really we got to decide if that's the right place to put our energy and our.

Steve Lichtman: I wanted to start on mechanical thrombectomy, great to see the cross selling opportunities beginning here.

Steve Lichtman: As you look at the portfolio across the two products.

Steve Lichtman: What is your outlook for growth here in the back half of the year, obviously, Andrew back came in well ahead of expectations in the second quarter. So just trying to get a sense of how youre thinking about the combined as we look out here over the next couple of quarters.

Steve Lichtman: We also think June there was a study that came out last year that showed that we can correct me.

Steve Lichtman: Also vacation like some of the IVF product can do and were really affected a cracking that calcification from what this study showed that interest us as well as we know there are a lot of people interested in that space. So we've got to leave as a product is really performing well taking share in the market. We're focused on today, but there is at least these three runways for us to pursue over time as you know.

Yeah. So we haven't given specific guidance on what we expect we did say that we expect mechanical thrombectomy as a portfolio to be a meaningful contributor to our growth for this year and we feel we're clearly on track to show that we're very pleased with the performance that we saw in the first half we expect to continue to see sequential growth as well as significant growth year over year is.

Steve Lichtman: For a company our size only have so many resources, we want to make sure we apply them to the right area for us to give our shareholders a growth opportunity. They deserve and will give you more detail on that when we have those decisions made.

Steve Lichtman: We proceed through the full year.

Steve Lichtman: As we continue to assess and have learnings around the portfolio opportunity that we have we'll refine those expectations a little bit but your expectation should be you continue to see double digit growth in the back half.

Speaker Change: Thanks, Jim and then just lastly, Steve on gross margin first half coming in North of 54%. Obviously you came in ahead of expectations in the second quarter and maintained full year guidance.

Speaker Change: Okay great.

You already spoke to some of the near term.

Speaker Change: Potential drivers for Ari on longer term I know you had been looking at potential <unk>.

Speaker Change: Any conservatism in that full year or are we thinking back half mix wood.

Speaker Change: <unk>.

Speaker Change: The Delta that would bring the full year down how should we think about that.

Speaker Change: Indication expansion to Iliofemoral DVT.

Speaker Change: Yeah. So the main driver for the performance that we saw is the mix that you mentioned and so the continued growth in tech and the uptick in the tech guidance will be a tailwind to gross margin in the back half. The other thing Thats happening, though is the dynamic we talked about as we're working through our manufacturing transfer as we get products out of Queensbury and get them to.

Speaker Change: In coronary can you update us on where you are relative to those.

Speaker Change: Yep.

Speaker Change: So a couple of things going on we believe this unique product actually performed really well and the two areas that you just mentioned, we believe it could be a DVT product the way it works that'll take a little more work from us not just on the R&D work with the regulatory clearances that are in front of us. So we have not talked about.

Speaker Change: Costa Rica, it kind of accelerates us double paying overhead and having some additional unabsorbed overhead in the in the structure until we're able to take those costs out as part of the manufacturing transfer. So as we mentioned we're right on track of that manufacturing transfer and we're going to get the benefit of our program for the full year 2007, but it does have a.

Speaker Change: Wade are yet to open up a program. There. We've also talked about we believe it can be really effective in the current aerospace we understand the pathway process. There. It's complicated. So we're looking at it internally does that makes sense for us. It's a really great market opportunity. We think our product performed really well in that space. It's really we got to decide if that's the right place to put our energy and a resource.

Speaker Change: <unk> will impact where it may create some under absorption here in the back half so youre going to see those two dynamics happening benefit coming from the mix shift which is really our overall gross margin long term strategy for Azure dynamics. If you remember when we first started reporting in.

Speaker Change: We also think June there was a study that came out last year that showed that we can correct me.

Speaker Change: Deprecation like some of the IVF product can do and were really affected a cracking that calcification from what the study showed that interest us as well as we know there are a lot of people interested in that space. So we've got a product that's really performing well taking share in the market. We're focused on today, but there is at least these three runways for us to pursue over time as you know.

Speaker Change: In our two segments Med tech was less than 17% of our overall revenue base, Jim mentioned at 43% of our revenue base. This quarter. So youre seeing that mix shift and then as we can get through the manufacturing transfer of take out some of those overhead costs right size that overall structure youre not going to see the full benefit of that drop the gross margin as well as the bottom line.

Speaker Change: A company our size I only have so many resources, we want to make sure we apply them to the right area for us to give our shareholders the growth opportunity. They deserve and will give you more detail on that when we have those decisions made.

Speaker Change: Yeah got it thanks guys.

Steve: Thanks, Steve Thanks, Steve.

Speaker Change: Our next questions are from the line of <unk> Chen with H C. Wainwright. Please proceed with your question.

Thanks, Jim and then just lastly, Steve on gross margin first half coming in North of 54%. Obviously you came in ahead of expectations in the second quarter you maintained the full year guidance.

Steve: Yes.

Speaker Change: Alright, Thank you for taking my questions.

Steve: Could you comment on the.

Steve: The feedback from the limited market release of all EU.

Speaker Change: Any conservatism in that full year or are we thinking back half mix would.

Steve: You can trees and when do you plan to transition to a full market launch.

Speaker Change: The Delta that would bring the full year down how should we think about that.

Steve: Hi, good question, so really good feedback.

Speaker Change: Yeah. So the main driver for the performance that we saw is the mix that you mentioned and so the continued growth in tech and the uptick in the in the tech guidance will be a tailwind to gross margin in the back half. The other thing Thats happening, though is the dynamics, we talked about as we're working through our manufacturing transfer as we get products out of Queensbury and get them to.

Steve: We've been able to participate as Steve and I have both been able to attend our European team has done a really good job setting up a series of scientific symposiums on a semiannual basis. So over the last 18 to 24 months, we've really developed a good understanding of the global market a lot of thought leaders have attended our symposium some of charter device. The reporting some of the results of their studies.

Speaker Change: Costa Rica, it kind of accelerates us double paying overhead and having some additional unabsorbed overhead in the in the structure until we're able to take those costs out as part of the manufacturing transfer. So as we mentioned we're right on track of that manufacturing transfer, we're going to get the benefit of our program for the full year 2007, but it does have a store.

Steve: Their findings so it's kind of generate a lot of organic interest overseas, which have been helpful for our teams and to target the best spot for us to part of energy is so our team is really focused we got through the regulatory clearances that we needed to get the CE Mark and now we have access to that market. We have mentioned that this year. We don't expect a lot this year it'll be a small single digit.

Speaker Change: <unk> will impact where it may create some under absorption here in the back half so you're going to see those two dynamics happening benefit coming from the mix shift which is really our overall gross margin long term strategy for angi dynamics. If you remember when we first started reporting in our two segments Med Tech was less than 17% of our overall revenue base, Jim mentioned at 43% of our revenue.

Steve: Contributor to our revenue you'll see that come in in the back half year, and then we will see more revenue performance into next fiscal year, but our team is well prepared they're going to do a great job with this amazing product, but again a company our size with limited resources, we're very selective as to where we're going to target and how we get there and we know there's a lot of demand and interest in the product.

Speaker Change: This quarter, so youre seeing that mix shift and then as we can get through the manufacturing transfer of take out some of those overhead costs right size that overall structure you are not going to see the full benefit of that drop the gross margin as well as the bottom line.

Speaker Change: Got it thank you and could you talk about the status of the recover AAV.

Steve: <unk> you.

Steve: Four P M.

Steve: Do you expect the sales of alphabet for P. B limited compared to the U S until the readout from the recover trial.

Speaker Change: Yeah got it thanks guys.

Speaker Change: Thanks, Steve Thanks, Steve.

Steve: Yeah.

Speaker Change: Our next questions are from the line of <unk> Chen with H C. Wainwright. Please proceed with your question.

Steve: So starting with the last question I don't expect the sales in the U S to be limited until the readout of recover I think apex as we talked about the publication there and how that helps us with some of those activities here in the U S and just continued commercial execution around our combined portfolio in the U S is what we're focusing on for alphabet here.

Chen: Alright, Thank you for taking my questions.

Could you comment on the.

Chen: The feedback from the maybe get market release of all EU.

Chen: <unk> countries and when do you plan to transition to a full market launch.

Steve: And the European question around recovered ongoing it's part of our continued commitment to providing data generation in this space. We think that data is very important to continue to support your own product support the physicians, who are moving from medical interventions to adopting mechanical intervention for thrombectomy, we're going to continue.

Chen: Hi, good question, so really good feedback.

Chen: We've been able to participate Steve and I have both been able to attend our European team has done a really good job setting up a series of scientific symposiums on a semiannual basis. So over the last 18 to 24 months, we've really developed a good understanding of the global market a lot of thought leaders have attended our symposium. Some have tried our device the reporting some of the results of their studies.

Steve: To invest in that area again, as we really continue to cement ourselves as a primary player in thrombectomy globally. So we're excited about where we're going with recovery.

Chen: Their findings so I was kind of generated a lot of organic interest overseas, which have been helpful for our teams and to target the best spot for us to part of energy is so our team is really focused we got through the regulatory clearances that we needed to get the CE Mark and now we have access to that market. We have mentioned that this year. We don't expect a lot this year it'll be a small single digit.

Speaker Change: Got it thank you very much.

Speaker Change: Thank you at this time I will turn the floor back to Mr. Clemmer for closing remarks.

Mr. Clemmer: Thank you operator again I'd like to thank everybody for participating today on the call. We will invite you to join US at 930. This morning Eastern time for our special presentation on why we believe our nano <unk> product is a really effective opportunity for people with intermediate risk prostate cancer to be treated.

Chen: Contributor to our revenue you'll see that come in in the back half here.

And then we will see more revenue performance into next fiscal year, but our team is well prepared they're going to do a great job with this amazing product, but again a company our size with limited resources, we're very selective as to where we're going to target how we get there and we know there's a lot of demand and interest in the product.

Mr. Clemmer: I also want to thank our employees for their hard work and dedication to our customers the patients that they serve.

Mr. Clemmer: What I also mentioned too that we're thinking of our employees and the other folks in the west coast affected by the terrible wildfires today, we hope they can all be safe of this terrible tragedy. Thank you operator, and thanks for joining us today.

Speaker Change: Got it thank you and could you talk about the status of the recover AAV.

Chen: <unk> you.

Chen: Beck for PD.

Mr. Clemmer: Thank you. This will conclude today's conference you may disconnect your lines at this time.

Chen: Do you expect the sales of alphabet for P to be liberated compared to the U S until the readout from the recover trial.

Chen: So starting with the last question I don't expect the sales in the U S to be limited until the readout of recover I think apex as we talked about the publication there and how that helps us with some of the Vac committees here in the U S and just continued commercial execution around our combined portfolio in the U S is what we're focusing on for alphabet.

Chen: <unk> and the European question around recovered ongoing it's part of our continued commitment to providing data generation in this space. We think that data is very important to continue to support your own products support the physicians, who are moving from medical interventions to adopting mechanical intervention for thrombectomy, we're going.

Chen: Continue to invest in that area again, as we really continue to cement ourselves as a primary player in thrombectomy globally. So we're excited about where we're at all with recovered.

Speaker Change: Got it thank you very much.

Speaker Change: Thank you at this time I will turn the floor back to Mr. Clemmer for closing remarks.

Thank you operator again I'd like to thank everybody for participating today on the call. We will invite you to join US at 930. This morning Eastern time for our special presentation on why we believe our nano <unk> product is a really effective opportunity for people with intermediate risk prostate cancer to be treated.

Speaker Change: I also want to thank our employees for their hard work and dedication to our customers the patients that they serve.

What I also mentioned too that we're thinking of our employees and the other folks in the west coast affected by the terrible wildfires today, we hope they've got all be safe. This terrible tragedy. Thank you operator, and thanks for joining us today.

Speaker Change: Thank you. This will conclude today's conference you may disconnect your lines at this time.