AngioDynamics ups guidance after record sales increase third-quarter net income by 73%

By Angela McDaniels

Seattle, March 21 - AngioDynamics Inc. said net income increased by 73% to $1.9 million, or $0.14 per diluted share, for the fiscal third quarter of 2006 ended Feb. 25 from $1.1 million, or $0.09 per diluted share, for the third quarter of fiscal 2005.

The company also said it revised its fiscal 2006 financial guidance upward. AngioDynamics predicted net sales growth will exceed 29% over fiscal 2005 to at least $78 million, net income will grow by more than 60% to $7.3 million and earnings will increase to $0.57 per diluted share.

This compares with the company's prior guidance for net sales of at least $76 million, net income of at least $6.7 million and earnings of $0.52 per diluted share for fiscal 2006.

Net sales increased by 28% to a record $19.8 million for the quarter from $15.5 million for the fiscal third quarter of 2005, according to a company news release.

The company attributed the increase to strong growth from its newest products and continued market share gains across the product portfolio. The greatest increase in sales occurred in the company's disposable kits line, which grew 117% to $1.2 million for third quarter.

"Sales of our VenaCure disposable kits, which provide a significant source of high-margin recurring revenues, more than doubled over the third quarter of fiscal 2005," president and chief executive officer Eamonn P. Hobbs said in the release.

For the nine months ended Feb. 25, net income increased by 68% to $4.8 million from $2.9 million for the same period of fiscal 2005, net sales increased by 28% to $54.9 million from $43 million for the same period of 2005 and diluted earnings per share increased by 54% to $0.37 from $0.24.

As of Feb. 25, cash and short-term investments were $28.9 million, compared with $27.1 million at May 28, 2005.

AngioDynamics is based in Queensbury, N.Y., and makes medical devices for the diagnosis and treatment of peripheral vascular disease.

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