), a provider of therapeutic and diagnostic devices for the
treatment of peripheral vascular and other non-coronary diseases,
has released its preliminary financial results for the third
quarter of fiscal 2013. The company will report its full results
on Apr 9, 2013.
AngioDynamics expects to generate total sales of $82 million
in the third fiscal quarter. This is significantly lower than the
company's previously announced guidance of $89-$90 million.
Additionally, average daily sales of most products remained flat
Management believes that softer sales in the Vascular Access
franchise, delayed capital equipment sales in the
Oncology/Surgery business coupled with weak procedure volume in
the Peripheral Vascular unit led to the decline in revenues.
Particularly, procedure volumes for AngioDynamics' Cardiology and
VenaCure EVLT offerings were below expectations.
As a result of softness in elective procedures and persisting
austerity measures in the market, AngioDynamics expects adjusted
net income in the range of 4 cents-6 cents per share. The current
Zacks Consensus Estimates for revenues and earnings per share for
the third quarter of fiscal 2013 are $88 million and 8 cents,
However, management believes that the unexpected lower sales
were a temporary impediment and the company is on track to
achieve its financial goals going forward. AngioDynamics
successfully acquired Mircosulis, a developer of minimally
invasive microwave ablation technology for the coagulation of
soft tissues. In addition, AngioDynamics effectuated a
sole-sourced IDN agreement worth more than $2 million annually
and completed training its sales force.
On a positive note, management affirmed its earlier target of
$1 million AngioVac sales in fiscal 2013. The company shifted
PICC (peripherally inserted central catheter) accounts to the
Bioflo technology in the quarter, which now comprises 10% of
total PICC revenues and generates $500,000 of AngioVac sales.
The company currently carries a Zacks Rank #3 (Hold). While we
prefer to remain on the sidelines on AngioDyanmics, other medical
stocks such as
Given Imaging Ltd.
) with a Zacks Rank #1 (Strong Buy) are worth considering.
ANGIODYNAMICS (ANGO): Free Stock Analysis
CYBERONICS INC (CYBX): Free Stock Analysis
GIVEN IMAGING (GIVN): Free Stock Analysis
NUVASIVE INC (NUVA): Free Stock Analysis
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