Sustaining Financial Strength

This year's featured leaders illustrate medtech's ability to adapt and thrive in an ever-changing business environment.

Steve Halasey

May 1, 2008

2 Min Read
Sustaining Financial Strength


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The financial strength of AngioDynamics Inc. (Queensbury, NY) is evident in the company's 26 consecutive quarters of demonstrated profitability. For full-year 2007, the company's net sales reached a record $112 million, up 43% over fiscal 2006. Gross profits in 2007 were $66 million, or 59% of net sales. Such figures marked solid gains over 2006, when the company reported gross profits of $46 million, or 58% of net sales.

(click to enlarge)Share price for AngioDynamics Inc. (Queensbury, NY) from May 2007 through May 2008.

The company's strong financial performance has not gone unrecognized. In 2006, Forbes ranked the company as number 11 on its 200 Best Small Companies in America list. AngioDynamics was also recognized as one of the top newcomers on Forbes' annual listing of company results.

In its most recent quarterly report, AngioDynamics announced significant improvement in its gross profit margins, while maintaining healthy operating income and generating nearly $10 million in operating cash flow. Due to pricing pressure and declines among its legacy products, the company lowered its financial guidance for the full fiscal year of 2008 to a range of $165 million to $167 million from a range of $170 million to $175 million. Although the AngioDynamics' stock price took a large hit after the announcement, it quickly rebounded during the ensuing weeks as the company demonstrated that it is well-poised to counterbalance market pressures going forward.

(click to enlarge)AngioDynamics rang the closing bell at Nasdaq market on February 29, 2008. The event marked the company's 20th anniversary of its founding and fourth anniversary of its IPO.

The company recently introduced its Smart Port CT and the Profiler angioplasty catheters, both of which are reportedly making significant market inroads. The company also recently launched a new hemodialysis catheter called Centros, which is a central component of AngioDynamics' plan to continue to effectively compete in the dialysis market.

In addition—following a comprehensive internal review of industry and economic trends, as well as its sales force, competitive position, and sales strategy—AngioDynamics recently implemented a five-step plan to drive consistent growth. The plan includes additions to the company's sales force, a more rapid research and development pipeline conversion, tuck-in acquisitions, improved product life cycle management, and a more focused approach to the national account market.

Copyright ©2008 MX

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