Q1 2013 Earnings Call
October 08, 2012 4:30 pm ET
Doug Sherk - Founder and Chief Executive Officer
Joseph M. DeVivo - Chief Executive Officer, President and Director
D. Joseph Gersuk - Chief Financial Officer, Chief Accounting Officer, Executive Vice President and Treasurer
Matthew Hewitt - Craig-Hallum Capital Group LLC, Research Division
Brooks E. West - Piper Jaffray Companies, Research Division
Jayson T. Bedford - Raymond James & Associates, Inc., Research Division
Previous Statements by ANGO
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Thank you, Camille, and thank you, everyone for joining us today for the AngioDynamics conference call to review the results of the fiscal 2013 first quarter, which ended on August 31, 2012. The news release announcing the results across the wire this afternoon after the market closed, in addition a separate news release announcing the acquisition of Vortex Medical, was also issued this afternoon. These press releases are available on the AngioDynamics website at www.angiodynamics.com.
The call is being broadcast live with accompanying presentation slides and is available on the AngioDynamics' website. A replay of the call will also be archived on the AngioDynamics website. To access both the live webcast and the archived replay, including the presentation slides, go to the Investors section of the AngioDynamics website and click on Events and Presentations. If you are listening by telephone, to view the slide presentation, navigate to the Live Webcast, as noted, and choose the No Audio Slides-Only Option to view the slides in conjunction with the live conference call.
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 2013. 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 actual results or events to differ materially from those described in forward-looking statements.
Finally, during the question-and-answer period today, we'd like to request each caller to limit themselves to 2 questions and encourage callers to requeue to ask additional questions. We appreciate everyone's cooperation with this procedure.
And now I'd like to turn the call over to Joseph DeVivo, President and Chief Executive Officer of AngioDynamics.
Joseph M. DeVivo
Thank you, Doug, and thank you, everyone, for joining us today on a very successful first quarter, and thank you for joining us on this call. Today, we plan on providing you with an update on our results for the quarter, highlight key accomplishments and then do a review of our financials. After that, we will review an exciting new acquisition of Vortex Medical, which will add revolutionary new technology to our Peripheral Vascular product offering. Following a review of the Vortex Medical, I'll give you an outlook for the balance of fiscal year 2013.
So I'm pleased to announce a very positive operating results for our first full quarter following the acquisition of Navilyst Medical. Our integration activities have all proceeded on schedule. We completed the integration of the U.S. sales organization mid-quarter, completed our international structure, our new corporate structure, integrated quality systems, management teams, our operations teams, financial organizations, HR and other functions. We continue making progress on our longer-term efficiency projects, such as our Oracle and Agile implementations, as well as key cost reduction activities to improve vendor management.
Our worldwide Oncology business was well -- as well as our international sales, showed very strong revenue performance, posting consistent double-digit gains of 15% and 18%, respectively. Our U.S. sales organization for Peripheral Vascular and Vascular Access is finding its footing from a very significant reorganization. They've had new products to learn, new customers to serve and most likely new managers managing them. And while the structure of the organization is sound, and we clearly are committed to our strategy the task at hand required significant change management and patience. None of these was unexpected, as in line with our guidance.
Now after all this change, our focus is on rebuilding revenue momentum for the second half of the year. As I've mentioned on our last call, while it should take time to regain revenue momentum, as with any acquisition of this magnitude, we should immediately demonstrate cost improvements, and we have delivered just that.
On a non-GAAP basis, our EPS grew 25% year-over-year, making the acquisition on a non-GAAP basis accretive, our first quarter out, driving greater value for our shareholders with far greater upside potential. This quarter, we won FDA clearance of BioFlo, a novel device that in laboratory test showed to reduce thrombus formation by 87% over standard devices. BioFlo is launched on our PICC portfolio in combination with our PASV valve technology, providing a competitive advantage over standard PICC technology. We are currently working on testing for BioFlo to be added to our port and dialysis portfolios, which we will be filing new 510(k) submissions for by the end of calendar 2012. We hope by mid-calendar 2013, we have this advanced formulation throughout our Vascular Access product line. BioFlo PICCs with PASV began shipping October 1, 2012. And while we continue to feel headwinds with a lack of a tip location to the device, it is our top priority. BioFlo will help us move the PICC needle. I look forward to a very positive announcement soon on tip location.