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Q4 2013 Earnings Call
July 11, 2013 4:30 pm ET
Robert Jones - Senior Managing Director
Joseph M. DeVivo - Chief Executive Officer, President and Director
Mark T. Frost - Chief Financial Officer
Thomas J. Gunderson - Piper Jaffray Companies, Research Division
Jayson T. Bedford - Raymond James & Associates, Inc., Research Division
Charles Haff - Craig-Hallum Capital Group LLC, Research Division
Robert M. Goldman - CL King & Associates, Inc., Research Division
Larry Haimovitch - Haimovitch Medical Technology Consultants
Previous Statements by ANGO
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I would now like to turn the conference over to Mr. Bob Jones with EVC Group. Please go ahead, sir.
Thank you, Camille. Welcome, everyone, and thank you for joining us for AngioDynamics' conference call this afternoon to review the financial results for the fiscal 2013 fourth quarter and year end, which ended on May 31, 2013. The news release is available on AngioDynamics' website at www.angiodynamics.com. A replay of this call will be archived on the company's website.
Before we get started, during the course of this conference call, the company will make projections and forward-looking statements regarding future events, including statements about revenue and earnings for fiscal 2014. We encourage 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 forward-looking statements.
With that, I would now like to turn the call over to Joe DeVivo, Chief Executive Officer.
Joseph M. DeVivo
Thank you, Bob. Welcome, ladies and gentlemen, to our fourth quarter and year end 2013 call. I'd like to start off by saying what a difference a year makes. 2013 was a transition year, yet a transformative year for the company. We took very bold moves to reset our business. We learned a lot about ourselves, as well as the assets we purchased. We completed complex integrations; drove down costs; reengineered our sales and marketing models; filled our R&D pipeline with some great opportunities and added some excellent new talent; strengthened our quality systems; continued to invest in our rapidly growing international team; and launched a new brand of AngioDynamics, which is built on quality, integrity and performance.
We all know that our effort was a work in progress. We frankly executed this restructuring in one of the most difficult medical device environments in our history and of our industry. It's not a time for us to take a victory lap yet, but there are many positive signs the company is moving in the right direction. And our success, in my view, is no longer a matter of if, but when.
Last quarter, we learned we were not alone in seeing procedure bonds being way off and challenges in closing capital sales. It was hard at the time to differentiate our internal issues from market conditions. Our third quarter was as much of a surprise for us as it was to you. But our team quickly learned from it, refocused, kept on fighting. Our disappointment turned into mindful motivation to prove the pundits wrong through focus, commitment and believe that my team that this quarter has a lot to be proud.
Everyday, our team got stronger, closer, smarter and more productive. Our sales people were getting more comfortable with their territories and their products. Our new business pipelines are growing, and we're also seeing in our challenged sectors with less losses that we were seeing earlier in the year. I am so proud of the employees of AngioDynamics today. With your support, I know this team is the right team to take this company to great success in our future.
In Q4, there were much stronger performances in Peripheral Vascular, oncology and international. We saw successes in channels, as well as key technologies. We have not yet seen the same response in our Vascular Access business. It's frustrating as Vascular Access is probably our best new technology and greatest growth prospect, in my view, over the next 3 years. The good news is that we are responding in 2 of our 3 businesses, including our international team, and now can focus all of our attention on BioFlo and Vascular Access.
I know we usually view performance year-over-year, and this quarter should be no different. However, it's important to keep in mind that Q4 year-over-year was less indicative of our actual -- in my view, of the Q4 performance and is more due to attrition of losses occurring in the beginning of the year. I believe at this point, as I'm looking at the heartbeat of our business, a truer indicator of our Q4 performance is quarter-over-quarter trends and actual -- and average daily sales.
From Q1 to Q3, we saw some average daily sales decline in certain core parts of our business. However, in Q4, average daily sales grew pretty much across the board except in our Vascular Access business. While this is a positive trend and only for the quarter, but for me it signaled that we have some stabilization and overall improvement in the health of the business.
For those of you who attended our analyst meeting in January, you saw a talented team of people deliver a clear strategy for 3 distinct businesses, each with market-changing technologies that over the next 5 years will transform this company. Our performance last quarter was humbling but in no way changes our view of the quality of our organization, our excitement in our growth drivers, our pipeline and our future competitiveness.