Q3 2025 AngioDynamics Inc Earnings Call

Operator: Good morning and welcome to the AngioDynamics fiscal year 2025 third quarter earnings report. At this time, all participants are in a listen-only mode. This is a question and answer session.

Good morning, and welcome to the Android dynamics fiscal year 2025 third quarter earnings call.

At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation.

Operator: We'll follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone. As a reminder, this conference call is being recorded.

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.

Operator: The news release detailing AngioDynamics' fiscal 2025 3rd 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 investor section of the company's website at www.angiodynamics.com. A webcast replay of the call will be available at the same site approximately one hour after the end of today's call.

The news release detailing Android dynamics fiscal 2025 third 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 and Geodynamics dotcom.

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

Operator: Before we begin, I'd 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 statement. The company will also discuss certain non-GAAP and pro-forma financial measures during this 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 discuss certain non-GAAP and pro forma financial measures during this call.

Operator: 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 in the company's business over time. Investors should consider these non-GAAP and pro-former measures in addition to, not as a substitute for, or as superior to financial reporting measures prepared in accordance with GAAP.

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 in the company's business overtime.

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.

Operator: slide package offering insight into the company's financial results is also available in the investor section of the company's website under events and presentations. This presentation should be read in conjunction with a press release discussing the company's operating results and financial performance during this morning's conference call.

A slide package offering insight into the company's financial results is also available in 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.

Financial performance during this morning's conference call.

James Clemmer: Now I'd like to turn the call over to Jim Clemmer, AngioDynamics President and Chief Executive Officer. Mr. Clemmer? Thank you, operator. Good morning, everyone. And thank you for joining us for AngioDynamics Fiscal 2025 Third Quarter Earnings Call. Joining me on today's call is Steve Trowbridge, AngioDynamics Executive Vice President and Chief Financial Officer.

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

Thank you operator, good morning, everyone and thank you for joining us Ranger dynamics fiscal 2025 third quarter earnings call.

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

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

Steve Trowbridge: I will begin today's call by providing an overview of our recent performance. Steve will then provide a detailed analysis of our third quarter financial performance, including our increased guidance.

Stephen Trowbridge: Steve will then provide a detailed analysis of our 3rd quarter financial performance, including our increased guidance.

James Clemmer: And I will conclude with our outlook for the balance of the year before opening the line for questions. Unless otherwise noted, all financial results and growth rates mentioned during today's call are on a pro forma basis. which exclude the results of the dialysis and biocentry businesses that we divested in June 2023.

Steve Trowbridge: And I will conclude with our outlook for the balance of the year before opening the line for questions.

Steve Trowbridge: Unless otherwise noted.

Steve Trowbridge: Our financial results and growth rates mentioned during todays call are on a pro forma basis, which exclude the results of the dialysis and bio century businesses that we divested in June 2023.

James Clemmer: to pick and midline products that we divested in February 2024.

Steve Trowbridge: The Pic and midline products that we divested in February 2024.

James Clemmer: and the radiofrequency and Syntrax support catheter products that we discontinued in February 2020. Our third quarter was very strong, as momentum we developed during the first half of the year continued. Total worldwide revenue was $72 million, representing growth of over 9% year over year. Our medtech segment had yet another excellent quarter, growing 22%. led by growth across all of our platforms. Beyond the top line, we continued to show strong results with respect to profitability, reporting yet another quarter of improving gross margins and positive adjusted EBITDA. Our performance continues to highlight that our strategy to drive profitable growth in our high margin, large medtech markets is tracking ahead of plan.

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

Steve Trowbridge: Our third quarter was very strong as momentum we developed during the first half of the air continued.

Steve Trowbridge: Total worldwide revenue was $72 million.

Steve Trowbridge: Presenting growth of over 9% year over year.

Steve Trowbridge: Our med Tech segment had yet another excellent quarter.

Steve Trowbridge: 22% led by growth across all of our platforms.

Steve Trowbridge: Beyond the top line, we continued to show strong results with respect to profitability.

Steve Trowbridge: And yet another quarter of improving gross margins and positive adjusted EBIDTA.

Steve Trowbridge: Our performance continues to highlight that our strategy to drive profitable growth in our high margin large med Tech markets is tracking ahead of plan.

James Clemmer: Resulting in our decision to increase guidance for the year for total revenue. MedTech Growth. Gross Margin, Adjusted EBITDA, and Adjusted EPS.

Steve Trowbridge: Resulting in our decision to increase guidance for the year for total revenue.

Steve Trowbridge: Med Tech growth.

Steve Trowbridge: Gross margin adjusted EBITDA, and adjusted EPS, which Steve will touch upon shortly.

Stephen Trowbridge: which Steve will touch upon shortly.

James Clemmer: Now with an update on our medtech business. Ariane continued its sustained delivery of solid results. growing approximately 17% over the prior year. We have consistently driven revenue growth by leveraging our superior technology to take share, including increasing penetration in the hospital market.

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

Steve Trowbridge: Already on continued its sustained delivery of solid results.

Growing approximately 17% over the prior year.

Steve Trowbridge: We have consistently driven revenue growth by leveraging our superior technology to take share, including increasing penetration in the hospital market.

James Clemmer: Turning to our mechanical thrombectomy business. We are very encouraged by the performance of both AlphaVac and AngioVac, which in combination grew approximately 47% over the second quarter of last year. and we believe it further validates the strength of this broad, innovative portfolio. AngioVac and AlphaVac together provide AngioDynamics with an unparalleled product portfolio option. and we continue to realize commercial adoption synergy. between these two product lines.

Steve Trowbridge: Turning to our mechanical thrombectomy business, we are very encouraged by the performance of both Alpha Vac and angio back which in combination grew approximately 47% over the second quarter of last year.

Steve Trowbridge: And we believe it further validates the strength of this broad innovative portfolio.

Steve Trowbridge: And you are backing off of that together.

Steve Trowbridge: Provide angie dynamics with an unparalleled product portfolio option and.

Steve Trowbridge: And we continue to realize commercial adoption synergies between these two product lines.

James Clemmer: beginning with Alpha Theta. We saw solid performance in the quarter, with revenue increasing by over 160%. for the fourth quarter in a row, AlphaVac has seen sequential growth. highlighting its accelerating adoption for treating PE. We continue to see positive utilization trends within existing customer accounts.

Steve Trowbridge: Beginning with alpha that we.

Steve Trowbridge: We saw solid performance in the quarter with revenue increasing by over 160%.

Steve Trowbridge: For the fourth quarter in a row.

Steve Trowbridge: Off of Vac has seen sequential growth highly.

Steve Trowbridge: Highlighting its accelerating adoption for treating P.

Steve Trowbridge: We continued to see positive utilization trends within existing customer accounts and.

James Clemmer: just as important. We have made significant strides in growing the number of new customers reviewing AlphaVac within their hospital value analysis committee.

Steve Trowbridge: And just as importantly, we have made significant strides in growing the number of new customers reviewing alphabet within their hospital value analysis committees.

James Clemmer: turning to AngioVac. We maintained the strength that we exhibited in our second fiscal quarter. AngioVac contributed revenue of $6.8 million. representing 23% growth over the prior year period. AngioVac is a unique product with a compelling value proposition. In addition, as we noted last quarter. Alphavax PE indication has proven to become a positive catalyst for angiovax. and our combined mechanical thrombectomy portfolio. We expect to see continued increasing adoption going forward helping to drive sustained growth throughout this portfolio. and our mechanical thrombectomy product offerings taken together, portfolios available today.

Steve Trowbridge: Turning to angio back.

Steve Trowbridge: We maintained the strength that we exhibited in our second fiscal quarter.

Steve Trowbridge: Angio Vac contributed revenue of $6 $8 million, representing 23% growth over the prior year period.

Steve Trowbridge: Andrew a vac is unique product with a compelling value proposition.

Steve Trowbridge: In addition, as we noted last quarter.

Steve Trowbridge: Alpha Vacs P indication has proven to become a positive catalyst for angio back.

Steve Trowbridge: In our combined mechanical thrombectomy portfolio.

Steve Trowbridge: We expect to see continued increasing adoption going forward, helping to drive sustained growth throughout this portfolio.

Steve Trowbridge: With Oregon, and our mechanical thrombectomy product offerings taken together, we believe that we have one of the most innovative cardiovascular our portfolios available today.

James Clemmer: We are excited to provide a deeper dive into that portfolio and our plans for the future during our virtual cardiovascular technology event following this earnings call. Lastly, within our medtech segment is NanoKnife. All of the progress made in calendar year 2024, we are in a tremendous position to drive more widespread adoption, particularly within the urology community. as Nanomife represents a meaningful advancement in prostate cancer. In the quarter, we continue to be encouraged by trends in the adoption and utilization of nano. evidenced by over 16% growth in probe revenue during the quarter. Having received an expanded indication for the nanolife system for prostate tissue ablation from the FDA in early December of 2024.

Steve Trowbridge: We are excited to provide a deeper dive into that portfolio and our plans for the future during our virtual cardiovascular technology event.

Steve Trowbridge: Following this earnings call.

Steve Trowbridge: Lastly, within our Med Tech segment isn't their life with all of the progress made in calendar year 2024, we are in a tremendous position to drive more widespread adoption, particularly within the urology community as.

Speaker Change: As Dan a knife represents a meaningful advancement in prostate cancer treatment.

Speaker Change: In the quarter, we continued to be encouraged by trends in the adoption and utilization of their life.

Speaker Change: Evidenced by over 16% growth in probe revenue during the quarter.

Speaker Change: Having received an expanded indication for the analytics system for prostate tissue ablation from the FDA in early December of 2024.

James Clemmer: We are able to more proactively market, educate, and train for the procedure in ways that we have been previously unable to do so.

Speaker Change: We were able to more proactively market edge.

Speaker Change: Kate and trained for the procedure and ways that we have been previously unable to do so.

Speaker Change: A key component of our marketing and educational efforts is leveraging the high quality data generated during our preserve clinical study.

James Clemmer: and Rand Price.

James Clemmer: Thank you. is leveraging the high-quality data generated during our PRESERVE clinical study. Preserve met its primary effectiveness endpoint, demonstrating the performance of the nanolife system for the ablation of prostate tissue in patients with intermediate risk prostate cancer. And just as importantly, the study demonstrated extremely compelling quality of life outcomes. We are very encouraged by the interest we have seen for Nanolife post-FDA clearance. It is important to highlight that the expanded indication was contemplated in our guidance for fiscal 2025. and that we don't expect to see a material inflection in a projected performance. We're in the adoption and utilization until our recently approved CPT-1 code goes into effect and payers adopt cover.

Preserve met its primary effectiveness endpoint.

Speaker Change: Demonstrating the performance of the nano <unk> system for the ablation of prostate tissue in patients with intermediate risk prostate cancer.

Speaker Change: And just as importantly, the study demonstrated extremely compelling quality of life outcomes.

Speaker Change: We are very encouraged by the interest we have seen Fernando life post FDA clearance.

Speaker Change: It is important to highlight that the expanded indication was contemplated in our guidance for fiscal 2025.

Speaker Change: And that we don't expect to see a material inflection in our projected performance where in the adoption and utilization and to a recently approved CPT one code goes into effect and payers adopt coverage.

James Clemmer: The new codes will be effective on January 1 of next calendar year. As you are aware, reimbursement and coverage is a highly complex process encompassing many stakeholders. We will continue to work diligently with our market access team on coverage, coding, and payment initiatives. striving to ensure that reimbursement will be widely available across both commercial and private payers in advance of that effective date.

The new codes will be effective on January one of next calendar year.

Speaker Change: As you are aware reimbursement and coverage is a highly complex process encompassing many stakeholders.

Speaker Change: We will continue to work diligently with our market access team on coverage coding and payment initiatives.

Speaker Change: <unk> to ensure that reimbursement will be widely available across both commercial and private payers in advance of that effective date.

James Clemmer: Now turning to our med device. revenue was $40.7 million, an increase of approximately 1% over last We were very pleased with the execution of this team returning MedDevice segment to growth. Beyond our commercial execution, we completed another illustration of our sustained profitability. We reported adjusted EBITDA of $1.3 million during the third quarter. compared to a loss of $3.6 million during the third quarter of fiscal 2024. in the quarter. The adjusted EPS was a loss of $0.08 per share, improving from a loss of $0.16 per share in fiscal 2020.

Speaker Change: Now turning to our med device segment.

Speaker Change: Revenue was $47 million, an increase of approximately 1% over last year.

Speaker Change: We were very pleased with the execution of this team returning med device segment to growth.

Speaker Change: Beyond our commercial execution, we completed another illustration of our sustained profitability.

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

Speaker Change: Compared to a loss of $3 $6 million during the third quarter of fiscal 2024.

Speaker Change: In the quarter adjust.

Speaker Change: Adjusted EPS was a loss of eight cents per share improving from a loss of <unk> 16 per share in fiscal 2024.

James Clemmer: Before turning the call over to Steve for a financial review, I want to highlight the tremendous work being done by our clinical and regulatory to generate high quality clinical data supporting broader adoption of our technology. With Ariane, in January, we launched our Ambition BTK trial and registry with the BTK standing for Below the Knee. As a reminder, the Ariane laser can be used to treat all lower extremity lesion types. including below the knee, above the knee, and in stent restenosis. This trial will evaluate clinical outcomes when treating patients suffering from critical limb ischemia below their knee using Arion in combination with standard balloon angioplasty.

Steve Trowbridge: Before turning the call over to Steve for a financial review.

Steve Trowbridge: Want to highlight the tremendous work being done by our clinical and regulatory teams to generate high quality clinical data supporting broader adoption of our technologies.

Steve Trowbridge: With Oregon in January we launched our ambition be Teekay trial, and registry with the BT K standing for below the knee.

Steve Trowbridge: As a reminder, the Oregon laser can be used to treat all lower extremity lesion types, including below the knee above the knee and in stent restenosis.

This trial will evaluate clinical outcomes in treating patients suffering from critical limb ischemia below their knee using Oregon in combination with standard balloon angioplasty.

James Clemmer: We believe this rigorous trial, which builds upon our earlier ARIAN-BT case study. could demonstrate an important advancement in the evidence supporting the benefits of Arion's laser arthrectomy in achieving acute and long-term procedural success in a US market where there is an unmet need, potentially driving increased adoption of Arion. Additionally, we're very pleased with the publication of the APEX-AV trowel results in JSCI. which validated the safety, efficacy, and efficiency of our AlphaVac F1885 system. pulmonary embolism. We are very excited about our performance. during the third quarter and throughout fiscal 2025. Through a combination of continued investment in top-line growth and operational efficiency initiatives, we have accelerated our march to profitability.

Steve Trowbridge: We believe this rigorous trial, which builds upon our earlier are you on BT case study.

Steve Trowbridge: Demonstrate an important advancement in the evidence supporting the benefits of our <unk> laser atherectomy and achieving acute and long term procedural success and a U S market, where there is an unmet need potentially driving increased adoption of <unk>.

Steve Trowbridge: Additionally, we're very pleased with the publication of the apex trial results in J Sky.

Steve Trowbridge: Which validated the safety efficacy and efficiency of our alphabet F $18 85 system for pulmonary embolism treatment.

Steve Trowbridge: We are very excited about our performance during the third quarter and throughout fiscal 2025.

Steve Trowbridge: Through a combination of continued investment in topline growth and operational efficiency initiatives, we have accelerated our march to profitability.

James Clemmer: We remain in a fantastic position to drive widespread adoption of our portfolio to meet the evolving demands of healthcare providers and patients while at the same time creating value for our shareholders.

Steve Trowbridge: We remain in a fantastic position to drive widespread adoption of our portfolio to meet the evolving demands of health care providers and patients while at the same time, creating value for our shareholders.

Stephen Trowbridge: With that, I'll turn the call over to Steve Trowbridge, our Executive Vice President and Chief Financial Officer, to review the quorum. Thanks, Jen. Good morning, everybody.

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

Steve Trowbridge: To review the quarter.

Speaker Change: Thanks, Jim.

Speaker Change: Morning, everybody.

Stephen 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 Jim mentioned, unless otherwise noted, all metrics and growth rates mentioned during today's call are on a pro forma basis, which exclude the results of the dialysis and biocentry businesses that we divested in June 2023, the PIC and midline products that we divested in February 2024, and the radiofrequency and Syntrex support catheter products that we discontinued in February 2024. Additionally, unless otherwise noted, all comparisons will be the third fiscal quarter of 2025 versus the third fiscal quarter of 2024.

Speaker Change: 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.

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 buy a century businesses that we divested in June 2023 to pick a midline products that we divested in February 2024, and the radio frequency and <unk> support catheter products that we discontinued in February 2000.

Speaker Change: 24 <unk>.

Speaker Change: Additionally, unless otherwise noted all comparisons will be the third fiscal quarter of 2025% versus the third fiscal quarter of 2024.

Speaker Change: Okay.

Stephen Trowbridge: Revenue increased 9.2% to $72 million, driven by growth in both our MedTech and U.S. MedDevice platforms. MedTech revenue was $31.3 million, a 22.2% increase, while MedDevice revenue was $40.7 million, a 0.9% increase. For the third quarter, our MedTech platforms comprised 44% of our total revenue, compared to 39% of total revenue a year ago, illustrating sustained execution on our strategy of increasing the percentage of our overall revenue base coming from our MedTech segment. Our Arion platform contributed $13.9 million in revenue, growing 17.3% compared to last year. Ariane has now delivered double-digit year-over-year growth in each of the 15 consecutive quarters following the anniversary of its launch.

Our revenue increased nine 2% to $72 million driven by growth in both our med Tech and U S med device platforms.

Speaker Change: Med Tech revenue was $31 3 million or 22, 2% increase while med device revenue was $40 7, million% to 0.9% increase.

Speaker Change: For the third quarter, our med tech platforms comprised 44% of our total revenue compared to 39% 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.

Speaker Change: Our ion platform contributed $13 9 million in revenue growing 17, 3% compared to last year.

Speaker Change: <unk> has now delivered double digit year over year growth in each of the 15 consecutive quarters following the anniversary of its launch.

Stephen Trowbridge: Mechanical thrombectomy revenue, which includes alpha-vac and angio-vac sales, increased 46.7% year over year. AlphaVac revenue was $3 million, an increase of 161.4% year-over-year, and a 20% sequential increase over the second quarter of 2025. resulting from the continued adoption of AlphaVac for PE. And we're also pleased to see the sustained strong performance of angiovectoring. which generated $6.8 million of revenue, an increase of 23.1%. As Jim mentioned, we're continuing to see synergies between the two product offerings, demonstrating our ability to take share in a highly competitive market. Total NanoKnife revenue was $6.3 million, an increase of 5.3%.

Speaker Change: Mechanical thrombectomy revenue, which includes alphabet and <unk> sales.

Speaker Change: Increased 46, 7% year over year.

Speaker Change: Alphabet revenue was $3 million, an increase of 161, 4% year over year, and a 20% sequential increase over the second quarter of 2025.

Speaker Change: Resulting from the continued adoption of alphabet for P/e.

Speaker Change: And we're also pleased to see the sustained strong performance of angio back during the quarter, which generated $6 $8 million of revenue an increase of 23, 1%.

Speaker Change: As Jim mentioned, we're continuing to see synergies between the two product offerings, demonstrating our ability to take share in a highly competitive market.

Speaker Change: Total net revenue was $6 3 million an increase of five 3%.

Stephen Trowbridge: NanoKnife's disposable revenue during the quarter increased 16.2%. As we've discussed throughout the year, we expected capital sales during this year to be approximately half of what they were in 2024. Capital Sales are performing better than expected. declining 21.6% during the quarter and down 26.5% year-to-date. We're particularly pleased with the trajectory of prospate cases in the quarter and are on track for our projections for NanoKnife for the full year. As a reminder, while we expect to see increasing contribution from NanoKnife following the positive reimbursement decision and prostate indication received towards the end of calendar 24, these milestones were built into our expectations for FY25 and are already reflected in our guidance for the year.

Speaker Change: And a nice disposable revenue during the quarter increased 16, 2% as we've discussed throughout the year, we expected capital sales during this year to be approximately half of what they were in 2024.

Speaker Change: The capital sales are performing better than expected declining 21, 6% during the quarter and down 26, 5% year to date.

Speaker Change: We're particularly 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: As a reminder, while we expect to see increasing contribution from nano knife. Following the positive reimbursement decision in prostate indication received towards the end of calendar 'twenty for <unk>.

Speaker Change: These milestones were built into our expectations for FY 'twenty five and are already reflected in our guidance for the year.

Stephen Trowbridge: Moving down the income statement, gross margin was 54%, an increase of 290 basis points compared to the year ago period, and ahead of our expectations for the quarter. Med Tech Gross Margin was 62.5%, an increase of 100 basis. primarily driven by mix associated with increased angio-vac revenue and Orion's increasing penetration into the hospital site of care. Med device gross margin was 47.4%.

Speaker Change: Moving down the income statement gross margin was 54% an increase of 290 basis points compared to the year ago period, and ahead of our expectations for the quarter.

Speaker Change: Med Tech gross margin was 62, 5% an increase of 100 basis points, primarily driven by mix associated with increased <unk> revenue and <unk>, increasing penetration into the hospital site of care.

Speaker Change: Med device gross margin was 47, 4%.

Stephen Trowbridge: In a moment, I will discuss our increased guidance for the balance of our fiscal year, including our increased expectations for gross margins.

Speaker Change: In a moment I will discuss our increased guidance for the balance of our fiscal year, including our increased expectations for gross margins I do want to take a quick moment to discuss the macro environment and potential tariffs.

Stephen Trowbridge: I do want to take a quick moment to discuss the macro environment and potential tariff. We're keeping a close eye on the ever-evolving tariff situation, and like most of you, we don't have a concrete projection on where this will all end. While we do have a small amount of subcomponent suppliers that may become subject to tariffs, we do not believe today that tariffs will materially impact our business. We've historically manufactured the vast majority of our products in the U.S., and most of our suppliers are also U.S. based. We're currently executing on our manufacturing transition plan, but this plan has never included moves to areas such as Mexico or China.

Speaker Change: And we're keeping a close eye on the ever evolving tariff situation and like most of you. We don't have a concrete projection on where this will all that while.

Speaker Change: While we do have a small amount of sub components suppliers that may become subject to tariffs. We do not believe today that tariffs were materially impact our business.

Speaker Change: And we've historically manufactured the vast majority of our products in the U S and most of our suppliers are also a U S based.

Speaker Change: We're currently executing on our manufacturing transition plan, but this plan is never included moves to areas, such as Mexico or China.

Stephen Trowbridge: We'll continue to monitor this dynamic situation and provide appropriate updates as they develop with any clarity.

Speaker Change: We will continue to monitor this dynamic situation and provide appropriate updates as they develop with any clarity.

Stephen Trowbridge: Turning to R&D, our research and development expense was $6.9 million, or 9.6% of sales, compared to $8.1 million, or 12.2% of sales a year ago. The earlier decrease is primarily related to timing, including the completion of our Preserve and APEX clinical study. We remain committed to investing in R&D initiatives to support the long-term growth of our med-tech segment and are targeting approximately 10% of sales going forward. SG&A expense was $36 million, representing 50% of sales, compared to $34.2 million, or 51.9% of sales a year ago. Our adjusted debt loss was $3.1 million, or an adjusted loss per share of $8.6 million.

Speaker Change: Turning to R&D, our research and development expense was $6 9 million or nine 6% of sales compared to $8 1 million or 12, 2% of sales a year ago.

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

Speaker Change: We remain committed to investing in R&D initiatives to support the long term growth of our med Tech segment and are targeting approximately 10% of sales going forward.

Speaker Change: SG&A expense was $36 million, representing 50% of sales compared to $34 2 million or <unk> 51, 9% of sales a year ago.

Speaker Change: Our adjusted net loss was $3 1 million or an adjusted loss per share of <unk> <unk> compared to an adjusted net loss of $6 5 million or adjusted loss per share of <unk> 16 in the third quarter of last year.

Stephen Trowbridge: compared to an adjusted net loss of $6.5 million or adjusted loss per share of $0.16 in the third quarter of last year. The year-over-year improvement is largely attributable to higher revenue and improving operating leverage during the third quarter of this year. Adjusted EBITDA was $1.3 million, compared to a loss of $3.6 million in the prior year.

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

Speaker Change: Adjusted EBITDA was $1 3 million compared to a loss of $3 6 million in the prior year.

Stephen Trowbridge: Turning now to an update on our balance sheet. At February 28 2025, we had $44.8 million in cash and cash equivalent. In the quarter, we used $13.2 million in operating cash, had capital expenditures of $1.8 million, and additions to Ariane placement and evaluation units of $1.4 million. As expected, we utilized total cash on the balance sheet of approximately $10 million, largely driven by scheduled payments associated with the settlement of our patent litigation with B.D. 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: Turning now to an update on our balance sheet at February 28, 2025, we had $44 $8 million in cash and cash equivalents.

Speaker Change: In the quarter, we used $13 2 million in operating cash had capital expenditures of $1 8 million and additions to our in placement and evaluation units of $1 4 million.

Speaker Change: As expected we utilized total cash on the balance sheet of approximately $10 million largely 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 <unk> business to <unk>.

Speaker Change: February of last year.

Stephen Trowbridge: In the fourth quarter, we expect to generate cash and end the year with approximately $55 million in cash and cash equivalents. The primary variable associated with our cash projection is related to the transition manufacturing arrangement I just mentioned. As we discussed on our last earnings call, subsequent to our third quarter end, we secured a commitment from J.P. Morgan to provide us with a revolving line of credit agreement. We expect to close this facility in the next few weeks, which will give us the ability to draw up to $25 million in cash at our discretion. While we are very comfortable with the amount of cash we have on the balance sheet, we view the addition of a revolver as a matter of prudent financial housekeeping and a good safety net to ensure that any short-term working capital fluctuations associated with the Spectrum Transition Manufacturing Agreement doesn't impact our execution on our strategy.

Speaker Change: In the fourth quarter, we expect to generate cash and end the year with approximately $55 million in cash and cash equivalents.

Speaker Change: Primary variable associated with our cash projection is related to the transition manufacturing arrangement I just mentioned.

Speaker Change: As we discussed on our last earnings call subsequent to our third quarter and we secured a commitment from J P. Morgan to provide us with a revolving line of credit agreement.

Speaker Change: We expect to close this facility in the next few weeks, which will give us the ability to draw up to $25 million in cash at our discretion.

Speaker Change: While we are very comfortable with the amount of cash we have on the balance sheet. We view. The addition of revolver as a matter of prudent financial housekeeping and a good safety net to ensure that any short term working capital fluctuations associated with the spectrum transition manufacturing agreement doesn't impact our execution on our strategy.

Stephen Trowbridge: We believe that this revolver will further bolster our balance sheet and provides for increased flexibility and optionality at a relatively low cost of capital and zero dilution.

Speaker Change: We believe that this revolver will further bolster our balance sheet and provides for increased flexibility and optionality at a relatively low cost of capital and zero dilution.

Stephen Trowbridge: Finally, we remain on track with our stated goal of being cash flow positive for the full fiscal year 2026. We're very pleased with our execution in managing our balance sheet through our strategic transition in a dynamic macro environment. We are in a very strong position driving double-digit growth in our medtech segment with sufficient net cash position on our balance sheet, a P&L that is delivering positive adjusted EBITDA each quarter, and an overall business model that will generate positive cash for the upcoming year and beyond.

Speaker Change: Finally, we remain on track with our stated goal of being cash flow positive for the full fiscal year 2026.

Speaker Change: We're very pleased with our execution in managing our balance sheet through our strategic transition in a dynamic macro environment.

Speaker Change: We're in a very strong position driving double digit growth in our med Tech segment with sufficient net cash position on our balance sheet.

Speaker Change: <unk> that is delivering positive adjusted EBITDA, each quarter and an overall business model that will generate positive cash for the upcoming year and beyond.

Stephen Trowbridge: So turning now to guidance, for fiscal 2025, we now expect revenue will be in the range of $285 million to $288 million, representing growth of between 5.3% and 6.4% over fiscal year 2024. Within each of our businesses, we now expect MedTechNet sales to grow in the range of 14-16%, ahead of our previously updated guidance of 12-15%. and we continue to expect med device net sales to be flat.

Speaker Change: Turning now to guidance for fiscal 2025, we now expect revenue will be in the range of 285 million to $288 million representing growth of between five 3% and six 4% over fiscal year 2024.

Speaker Change: Within each of our businesses, we now expect med Tech net sales to grow in the range of 14% to 16% ahead of our previously updated guidance of 12% to 15%.

Speaker Change: And we continue to expect med device net sales to be flat.

Stephen Trowbridge: From a quarterly cadence perspective, we expect the fourth quarter to be the strongest of the fiscal year.

Speaker Change: From a quarterly cadence perspective, we expect the fourth quarter to be the strongest of the fiscal year.

Stephen Trowbridge: For fiscal 2025, we now expect gross margin to be in the range of 53% to 54%, up from the previous guidance of 52% to 53%. We now expect adjusted EBITDA in the range of $4 million to $5 million up from the previously updated guidance of $1 to $3 million. And finally, we now expect an adjusted loss per share in the range of $0.31 to $0.34, an improvement from our previously updated guidance of a loss per share of $0.34 to $0.38.

Speaker Change: For fiscal 2025, we now expect gross margin to be in the range of 53% to 54%.

Speaker Change: From the previous guidance of 52% to 53%.

Speaker Change: We now expect adjusted EBITDA in the range of 4 million to $5 million up from the previously updated guidance of $1 million to $3 million.

Speaker Change: And finally, we now expect an adjusted loss per share in the range of 31% to 34 and.

Speaker Change: An improvement from our previously updated guidance of a loss per share of 34 to 38 cents.

James Clemmer: With that, I'll turn it back.

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

James Clemmer: Thanks, Steve. Looking to the fourth quarter, we remain focused on a number of key strategic areas of our business aimed at driving growth. Starting with Ariane, in the U.S. we will leverage the momentum built during the first three quarters of the year to continue to drive increased penetration with a particular focus on the hospital setting. outside of the U.S., we expect a full market release following our CE marking in Q1 to make a positive impact on revenue during the fourth quarter. We will continue to develop supporting clinical data and launching new product line extensions as we move forward.

Jim Clemmer: Thanks, Steve.

Jim Clemmer: <unk> to the fourth quarter, we remain focused on a number of key strategic areas of our business aimed at driving growth.

Jim Clemmer: Starting with ARIA in the U S. We will leverage the momentum built during the first three quarters of the year to continue to drive increased penetration with a particular focus on the hospital setting.

Jim Clemmer: Outside of the U S. We expect a full market release, following our CE, marking in Q1 to make a positive impact on revenue during the fourth quarter.

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

James Clemmer: with AlphaVac, we continue to push ahead commercially as we focus on driving increased adoption for the treatment of PE. To support that, we will continue to invest in high-quality clinical data, highlighting the differentiation of our products to help support long-term adoption. In addition, we continue to expect to launch new product enhancements. over the course of the year to further enhance our product. and lastly with NanoKnife with prostate indication in hand. as well as clarity around the reimbursement pathway in the U.S. We expect to leverage a well-established commercial infrastructure and our high-quality clinical data to drive increased long-term adoption in the U.S.

Jim Clemmer: With alphabet, we continued to push ahead commercially as we focus on driving increased adoption for the treatment of P/e.

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

Jim Clemmer: In addition, we continue to expect to launch new product enhancements over the course of the year to further enhance our product.

Jim Clemmer: And lastly, with nano knife with prostate indication in hand as.

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

James Clemmer: for prostate cancer.

James Clemmer: I would like to remind everyone that we will be hosting a virtual cardiovascular-specific event at 9 o'clock Eastern today. to provide an in-depth overview on our cardiovascular franchise, including our Arion, AngioVac, and AlphaVac technology. our respective market opportunities. and our strategic vision for these products moving forward.

Jim Clemmer: I would like to remind everyone that we will be hosting a virtual cardiovascular specific event at nine o'clock eastern today.

Jim Clemmer: To provide an in depth overview on.

Jim Clemmer: In our cardiovascular franchise, including our Oregon, Angio back and Alpha vacuum technologies.

Jim Clemmer: Irrespective of market opportunities.

And our strategic vision for these products moving forward.

James Clemmer: In summary, we remain very excited about the future at AngioDynamics. We have built a fantastic portfolio focused on large, high-growth markets. We have overhauled our financial profile and with the strength of our balance We are on the verge of delivering sustainable, profitable growth for years to come.

Jim Clemmer: In summary, we remain very excited about the future at Angio dynamics, we have built a fantastic portfolio focused on large high growth markets, we have overhauled our financial profile and with the strength of our balance sheet. We are on the verge of delivering.

Jim Clemmer: Sustainable profitable growth for years to come.

James Clemmer: With that, we'll open the line for questions. Thank you.

Jim Clemmer: With that we'll open the line for questions.

Speaker Change: Thank you at this time, we'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad.

Operator: At this time, we'll be conducting a question and answer session. If you'd like to ask a question, please press star one on your telephone. A confirmation tone will indicate your line is in the question. You may press star two if you'd like to remove your question from the. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions. Thank you.

Jim Clemmer: <unk> tone will indicate your line is in the question queue.

Jim Clemmer: You May press star two if you'd like to remove your question from the queue.

Jim Clemmer: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star one moment. Please while we poll for questions.

Okay.

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

John Young: Our first question comes from the line of John Young with Canaccord Genuity. Please proceed with your question. Hi Jim and Steve, thanks for taking the question and congrats on a great quarter. Yeah, I just want to start first on AngioVac, you know, still remains strong, which was nice to see just, you know, despite the very strong quarter you had last quarter. Do you think the $6.8 million is a good new base that we should think about for the business going forward? And I have one follow-up thing. Yeah, thanks, John. Good to talk to you this morning.

John Young: Hi, Jeff and Steve Thanks for taking my question and congrats on a great quarter I just wanted to start first on Angio Vac.

Speaker Change: It still remains strong so it's nice to see.

Speaker Change: Despite the very strong quarter, you had last quarter do you think the $6 $8 million as it did new base that we should think about for the business going forward.

Speaker Change: Follow up thanks.

Speaker Change: Yes, Thanks, John Good to talk to you this morning.

James Clemmer: The answer is yes. I think as we talked about last quarter, we were very pleased with the performance we saw with AngioVac, and particularly we're pleased with the synergistic portfolio that we have with AngioVac together with the AlphaVac PE. We're seeing that our conversations with interventional cardiologists are driving increased awareness of our overall portfolio and certainly leading to good performance from both. So, as we said last quarter, we expect AngioVac will be a grower for us. Now, maybe not at these same growth rates, but I think this level, you know, kind of mid-sixes and seeing that as a growth platform moving forward is the right way to think about AngioVac going forward.

Speaker Change: The answer is yes, I think as we talked about last quarter. We were very pleased with the performance we saw with <unk> and particularly we're pleased with the synergistic portfolio that we have with angio back together with the alphabet P/e, we're seeing that our conversations with interventional cardiologists are driving increased awareness of our over portfolio of our overall portfolio.

Speaker Change: Palio and certainly leading to good performance from both so as we said last quarter, we expect <unk> will be a grower for US now maybe not at the same growth rates, but I think this level kind of mid sixes and seeing that as a growth platform. Moving forward is the right way to think about angi of that going forward and as we said, we expect youre going to see.

James Clemmer: And as we said, we expect you're going to see increasing growth coming from AlphaVac as we continue to see further adoption for our products for PE.

Speaker Change: <unk> growth coming from alphabet as we continue to see further adoption for our products for <unk> cases.

John Young: Okay, great. Thanks.

Speaker Change: Okay, great. Thanks, and then just on prostate.

John Young: And then just on nanoprostate, you know, any further details you could share with us just on your percentage of revenue that's attributable to the prostate in the quarter, any KPIs from your direct-to-consumer, you know, education or physician efforts that you've started with the marketing approval? And then for the CPP Level 1 code, should we still think of July as being kind of the first update into what the possible reimbursement for next year looks like? Thanks again for taking our question. Yeah, hi John, it's Jim. A couple questions. Yeah, we started our awareness and education campaign, as you know, right after we got the approval from the FDA for the prostate market.

Any further detail you could share with us based on your percentage of revenue that is attributable to the prostate in the quarter.

Any kpis in your direct to consumer.

Shannon: Shannon or physician accurate that.

Shannon: You started western marketing approval and then for the CPT. One code should we still think of July as being kind of first update in Q, what's the possible reimbursing for next year looks like thanks, guys for taking my questions.

Jim Clemmer: Yes, Hi, John this is Jim.

Jim Clemmer: Couple of questions. Yes, we started our awareness and education campaign as you know right. After we got the approval from the FDA for.

James Clemmer: So we're excited by the response we've seen, you know, some from individual patients who are trying to learn about their treatment pathways and options that exist. So that's been really kind of fun to watch new people learn about this new option that we offer. Also with physicians, people signing up for our training programs, getting involved, wanting to learn how to use this technology, bring it in house as part of a treatment protocol. So really, really good organic metrics we track. We don't share all those for competitive reasons. But we also measure every month the procedures that we use with NanoKnife.

Speaker Change: The prostate.

Speaker Change: Our market. So we're excited by the response, we've seen some from individual patients who are trying to learn about their treatment pathways and options that exist. So that's been really kind of fun to watch new people learn about this new option that we offer also with physicians people signing up for our training programs getting involved wanting to learn how to use this technology.

Bringing in house as part of the treatment protocol, so really really good organic metric.

Speaker Change: Metrics, we track, we don't share all of those for competitive reasons, but we also measure every month the procedures that we use of nanometers.

Stephen Trowbridge: And I think we've talked about it before, increasing percentages each month go by with prostates being treated at a higher and higher rate. It's now more than half of our treatments, liver and pancreas, as you know, are the second and third. But for years, prostate was third behind them. It's become number one, and it grows each month at a higher and higher rate of treatment. So we're really excited by the organic interest being created. Yeah, and John, getting to your question on reimbursement, it's the exact right question. As we've always said, there's really three pillars that are going to drive NanoKnife growth going forward.

Speaker Change: I think we've talked about it before increasing percentages each month go by with prostate is being treated at a higher and higher right now more than half of our treatments liver and pancreas. As you know are the second and third but for years prostate was third behind that makes become number one and it grows each month at a higher and higher rate of treatment. So we're really excited by the organic interest being created.

John Young: Yes, John getting to your question on reimbursement and it's the exact great question as we've always said Theres really three pillars that are going to drive nano knife growth going forward. It was important for us to get the specific indication that's kind of table Stakes, we were able to do that in December.

Stephen Trowbridge: It was important for us to get the specific indication. That's kind of table stakes. We were able to do that in December. The second one is increased awareness, and Jim just talked about that. We're really pleased with the uptick in interest that we're seeing with respect to NanoKnife coming on the heels of getting the indication and certainly the event that we did last year. And then the third and the most important in terms of driving adoption and getting to that inflection point is going to be reimbursement. We're still on track to hear the first readout in the summer, in July, and then we expect that the CPT-1 code will become permanent in January.

Speaker Change: The second one is increased awareness and Jim just talked about that we're really pleased with the uptick in interest that we're seeing with respect to Nana life coming on the heels of getting the indication and certainly the event that we did last quarter and in the third and the most important in terms of driving adoption and getting to that inflection point is going to be reimbursement, we're still on track to hear the first readout.

Speaker Change: In the summer in July and then we expect that the CPT one code will become permanent in January and so we're doing the work you would expect us to do now continuing to kind of beat the ground in and try to increase the amount of those private payers, they're going to be covering once we get to that permanent codes will continue to do that work. We will update you as we move forward, but yes.

Stephen Trowbridge: And so we're doing the work you would expect us to do now, continuing to kind of beat the ground and try to increase the amount of those private payers that are going to be covering once we get to that permanent code. So we'll continue to do that work. We'll update you as we move forward. But yes, the way that you're talking about it is exactly right. Expect the first readout in the summer and that code to go into effect in January. Thank you.

The way that Youre talking about it is exactly right expect the first readout in the summer and that code to go into effect in January.

Speaker Change: Thanks again.

Speaker Change: Thank you. Our next question comes from the line of Steven Lichtman with Oppenheimer <unk> Company. Please proceed with your question.

Stephen Lichtman: Our next question comes from the line of Stephen Lichtman with Oppenheimer and Company. Thank you. Good morning, guys, and congratulations.

Speaker Change: Thank you good morning, guys and congratulations.

Stephen Lichtman: I just wanted to also ask on MT, you know, given the strength you're seeing in AngioVac post the AlphaVac launch, can you give us an update on your commercial efforts across mechanical thrombectomy? I know initially you were working through where the team focused. Obviously, you're seeing success. Are you looking to further add to the commercial team? Are you feeling good about sort of the coverage going after AlphaVac and keeping this AngioVac momentum going? Yeah, thanks, Steve. So as we spoke previously, our team did a really good job targeting where our first batch of sales professionals will be located, as we were expecting that PE indication and launch for the AlphaVac product.

Speaker Change: Just wanted to also ask on <unk>, given the strength youre seeing in angio back post the alphabet launch can you give us an update on your commercial efforts across mechanical thrombectomy.

Speaker Change: So youre working through where the team focused obviously youre seeing success.

Speaker Change: Are you looking to further add to the commercial team are you feeling good about sort of the coverage going after alpha backend keeping this Andrew vac momentum going.

Speaker Change: Yes, Thanks, Steve.

Speaker Change: Spoke previously our team did a really good job targeting where our first batch of sales professionals will be located as we were expecting that p/e indication and launch for the Alpha <unk> product. So we did that we've got the right people in the right places that we thought were the 40 or so starting markets. We wanted to be in and that's going really well as youre seeing the effect of both products.

James Clemmer: So we did that, we've got the right people in the right places that we thought were the 40 or so starting markets we wanted to be in. And that's going really well, as you're seeing the effect of both products being sold together as well. The team is good, they're well trained, and they're educated now to serve our customers. We also talked about us expanding that group. If you go back and look at how we built out Aureon in the past five years, in a similar fashion, we played ahead, we invested ahead, but we wanted to see where opportunity existed.

Speaker Change: Being sold together as well the team is good well trained and they're educated now to serve our customers. We also talked about us expanding that group. If you go back and look at how we built out already on the past five years in a similar fashion. We plan ahead, we invested head, but we wanted to see where opportunity existed so youre going to see over this course of this calendar year expansion and then alpha.

James Clemmer: So you're going to see over this course of this calendar year expansion in that AlphaVac, AngioVac sales force, we're looking now to expand, we'll do that over the course of this year. And we're set up well to grow that product, again, with sequential customers who've already adopted it, and getting new customers putting it through the VAC process and bringing it in house. So we're excited. Great, thanks. Thanks, Jim.

Speaker Change: Can't give back sales force, we're looking now to expand we'll do that over the course of this year and we're set up well to grow that product again with sequential customers have already adopted it and getting new customers, putting it through the vac process and bringing it in house. So we're excited.

Speaker Change: Great. Thanks, Thanks, Jim and then just on <unk> can you give us an update on how things are progressing on the EU launch and any updated thoughts on the opportunity there I guess.

James Clemmer: And then just on Orion, can you give us an update on how things are progressing on the EU launch? And, you know, any updated thoughts on the opportunity there, you know, I guess, you know, a couple quarters into the post to see Yeah, it's a good question. You know, it's funny, we've done a really good job training people. We have these scientific life symposiums that we've held every six months for the last few years. And we just had one last weekend in Barcelona, well attended by global folks came, folks from the U.S. came over and spoke about Ariane globally.

Speaker Change: A couple of quarters into the post to CE Mark.

Speaker Change: Yes, it's a good good question you know it's funny, we've done a really good job training people, we have the scientific like symposiums that we've held every six months for the last few years and we just had one last weekend in Barcelona, well attended by global.

Speaker Change: Global folks came both from the U S came over and spoke about <unk> globally, we're training and teaching physicians around the globe why oregano, So special and how it works. So we've done a lot of education, we have a great distributor network supporting us. They also do training education for us in markets that we don't have reach into so it help expand that we really expect.

James Clemmer: So we're training and teaching physicians around the globe why Ariane is so special and how it works. So we've done a lot of education. We have a great distributor network supporting us. They also do training and education for us in markets that we don't have reach into. So it helped expand that. We really expect now in Q4, Steve, you'll probably see some revenue coming in in Q4 from Ariane. And we'll start to build that. We expect sequential growth going forward, but we've done a good job. Our team is really strong globally. They've done the right education campaigns, awareness campaigns, and now we're gonna build that business out.

Speaker Change: Now in Q4, Steve you'll probably see some revenue coming in in Q4 from Oregon, and we will start to build that we expect sequential growth going forward, but we've done a good job. Our team is really strong globally, they've done the right education campaigns awareness campaigns and now we're going to build that business out so youll see a business over time than with still strong U S growth in RF and now the.

Stephen Lichtman: So you'll see a business over time then with still strong U.S. growth in Ariane. And now the international growth kicking in. And just a reminder, Steve, international market isn't as big as the US market. And so, you know, while it will be a contributor, I wouldn't expect it to be a material contributor right away. But as Jim said, we're very pleased with the traction that we're starting. Got it. Thanks, James. I'll jump back in queue. Thank you.

Speaker Change: So growth kicking in.

Speaker Change: And just a reminder, Steven international market isn't as big as the U S market. So it will be a contributor.

Speaker Change: I wouldn't expect it to be a material contributor right away, but as Jim said, we're very pleased with the traction that we're starting to get there.

Speaker Change: Got it thanks, Tim and Steve I'll jump back in queue.

Speaker Change: Thanks, Steve.

Speaker Change: Thank you. Our final question. This morning comes from the line of E. Chen with H C. Wainwright. Please proceed with your question.

Yi Chen: Our final question this morning comes from the line of Yi Chen with HC Wainwright. Please proceed with your question. Good morning. This is Eduardo on for Yi, congrats on the great quarter. In the same line of Arian, I'm curious how you view, if you could give an update on the timeline for the ambition study, and how you see the results? What do you measure as success there? And how do you see the application, the below the knee indication? Do you see any specific advantages for the technology in that space that you could really leverage and capture market there?

Speaker Change: Good morning.

E. Chen: Is it water on for you congrats on the great quarter.

Same line of ion I'm curious, how you view if you could give an update on the timeline for the ambition study and how you see the results what do you measure success, there and how you see the application of the below the knee indication.

E. Chen: Do you see any specific advantages for the technology in that space that you can really leverage and capture market.

James Clemmer: Just kind of your vision and rationale and the ambition study and expectations. Yeah, thanks, Eduardo. It's a great question. We're really excited about the Ambition PTK study. So we mentioned that we're going through the committees now. We expect to begin enrollment probably within the next quarter or so. And then it's a pretty comprehensive trial. So we'll give you some updates as we continue to go through it. But I think your questions around the rationale for the trial are really important. So remember, Ariane already has a very broad indication base. So it's currently indicated for use in hard and soft calcifications, above the knee, below the knee, and in instant restenosis.

E. Chen: There just kind of your vision and rationale the ambition study and expectation.

Speaker Change: Yes, Thanks, Eduardo it's a great question, we're really excited about the ambition PK study.

E. Chen: We mentioned that we're going through the <unk>.

E. Chen: <unk> now we expect to begin enrollment probably within the next quarter or so and then it's a pretty comprehensive trials. So we'll give you some updates as we continue to go through it but I think your question's around the rationale for the trial are really important. So remember <unk> already has a very broad indication base. So its currently indicated for use in hard and soft calcification.

E. Chen: <unk> above the knee below the knee and in stent restenosis, it's really the only atherectomy product out there that has that versatile.

James Clemmer: It's really the only atherosclerosis product out there that has that versatile of a use case scenario. The reason we're doing this study is we believe we've been able to show before that using Ariane specifically below the knee in conjunction with balloon angioplasty will provide better results than balloon angioplasty by itself. And we think that's a vitally important data point, one, to continue to support the use of Ariane below the knee, but potentially also to increase the overall market of atherectomy. And so we're really excited about getting into this study. We've worked with our physician thought leaders.

Speaker Change: Of a use case scenario. The reason we're doing this study is we believe we've been able to show before that using Oregon, specifically below the knee in conjunction with balloon angioplasty. It will provide better results and balloon angioplasty by itself and we think that Thats a vitally important data 0.1 to continue to support the use of <unk>.

E. Chen: On below the knee, but potentially also to increase the overall market of atherectomy.

E. Chen: And so we're really excited about getting into the study we've worked with our physician thought leaders. This is a study that has a tremendous amount of scientific rigor behind it and it's the kind of study that our customers are really looking forward to.

James Clemmer: This is a study that has a tremendous amount of scientific rigor behind it. And it's the kind of study that our customers are really looking forward to and excited to work with us as we continue to build out this dataset going forward. So as we continue to move forward, we'll give you some more details, but we think it's exactly the right study to do with this type of technology. That's great. And do you envision, obviously, because it's already approved in this indication, you imagine that the existing commercial team would be sufficient to market it? You're not expecting an expansion?

E. Chen: And excited to work with us as we continue to build out this type of data set going forward. So as we continue to move forward, we'll give you some more details, but we think it's exactly the right study to do with this type of technology.

E. Chen: That's great and do you in.

E. Chen: Envision obviously, because it's already approved in this indication you would imagine that the existing commercial team would be sufficient to market unexpected and expansion.

Stephen Trowbridge: Yeah, so if you look at how we built this team, we were certainly building ahead of the curve as we were getting Ariane from from the initial launch to where it is today. As Jim has mentioned, we're going to continue to invest opportunistically in our sales force. I think, you know, don't expect you're going to see a significant amount of additional investment right now. In that business, we're going to be making some investments in our thrombectomy team, as Jim talked about, as we head into next calendar year and getting that CPT code with oncology expect we'll be investing in that business to support that.

E. Chen: Yes. So if you look at how we built this team we were certainly building ahead of the curve as we were getting <unk> from from the initial watch to where it is today as Jim has mentioned, we're going to continue to invest opportunistically in our sales force I think don't expect youre going to see a significant amount of additional investment right now in that business, we're going to be making some investments in our thrombectomy team.

As Jim talked about as we head into next calendar year, and getting that CPT code with oncology expect we'll be investing in that business to support that we will continue to invest in <unk>, there's no doubt about it but I wouldn't expect a huge bolus right away.

Operator: We'll continue to invest in Ariane, there's no doubt about it, but I wouldn't expect a huge bullish right away. Okay, that's really helpful. Thank you so much. Thank you, Eduardo. Thank you, ladies and gentlemen. That concludes our question and answer session.

Speaker Change: Okay. That's really helpful. Thank you so much.

Eduardo: Thank you Eduardo.

Speaker Change: Thank you, ladies and gentlemen that concludes our question and answer session I will turn the floor back to Mr. Clemmer for any final comments.

James Clemmer: I'll turn the floor back to Mr. Clemmer for any final Thank you very much. I want to thank our team here at AngioDynamics. They worked really hard. We've got a lot of priorities here that we're getting over the goal line and getting things done. Hopefully investors are seeing the progress we've made in our transformation. Transformation that started with a portfolio shift. So we've got really good teams now. Our medical device products are sold to the markets that we can become a major player in. We do it with a great selling and marketing team, a great clinical support team.

Jim Clemmer: Thank you very much I want to thank our team here to answer your dynamics. They worked really hard we've got a lot of priorities here that we're getting over the goal line and getting things done and hopefully investors are seeing the progress we've made in our transformation transformation that started with a portfolio shift. So we've got really good teams now are medical device products are sold to the markets that we can become a major player.

Jim Clemmer: We do it with a great selling and marketing team a great clinical support team gives us efficiency enables us to invest in our med tech platforms that you've heard about today that have really large opportunities our products are dynamic and they are good our design and development teams are great our regulatory and market access teams are great and lets not forget to our supply chain teams.

James Clemmer: Gives us efficiency, enables us to invest in our medtech platforms that you heard about today that have really large opportunities. Our products are dynamic and they're good. Our design and development teams are great. Our regulatory and market access teams are great. And let's not forget too, our supply chain teams. While we're doing all this work in our market with our customers, we announced over a year ago we're changing our supply team base, how we're operating, where we're going to operate. They've done a really good job delivering on that transformation. Over time, that's going to make sure we have a stable supply chain to supply our customers for years to come and also take some of that stranded cost out that would drop to the bottom line over the next two fiscal years.

Jim Clemmer: While we're doing all this work in our market with our customers, we announced over a year ago with changing our supply team base. How we're operating where we are going to operate they have done a really good job delivering on that transformation over time, that's going to make sure. We have a stable supply chain to supply our customers for years to come and also take some of that stranded cost out that will drop to the bottom line over the next two.

Jim Clemmer: For years, So our company is well well set up to succeed for years to come. Thank you for joining us today.

James Clemmer: So our company is well set up to succeed for years to come. Thank you for joining us today. Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

Speaker Change: Thank you. This concludes today's conference you may disconnect. Your lines at this time. Thank you for your participation.