After a fiscal 2013 second quarter that grew like gangbusters, AngioDynamics ($ANGO) warns that its third quarter numbers will come in below earlier, rosier projections. Investors reacted harshly, driving the stock down 12% in trading late Friday morning to just over $11.
AngioDynamics' third quarter ended Feb. 28, and the maker of vascular access devices disclosed it expects net sales to reach $82 million. That's a robust number all the same, but much lower than the $89 million to $90 million originally forecast by the company.
So what happened? Details will crop up during the company's third quarter earnings call on April 9. But in its announcement of preliminary results, AngioDynamics blames vascular access sales attrition, softer procedure volumes in its peripheral vascular business and reduced oncology/surgery sales based on capital equipment purchasing delays. In a preventative measure, AngioDynamics pursued a continued "cost reduction" plan that helped offset the sales decline. So investors have some small solace in the notion that AngioDynamics still expects to make 4 cents to 6 cents per share.
AngioDynamics President and CEO Joseph DeVivo put a positive spin on things, arguing in a statement that the sales dips reflect a goal delay rather than a downward trend and can be corrected over time.
"We're viewing the third quarter top line performance as a temporary setback," DeVivo said. "It is simply taking us more time to build momentum as we continue to onboard new technologies while our sales force settles in."
There was a lot more momentum in the company's 2013 second quarter, which saw large sales increases boosted by acquisitions, new products and soaring international demand. So far this winter, the company continues to pursue acquisitions to fuel future growth. In January, for example, AngioDynamics spent $15 million to snatch up minimally invasive microwave ablation technology from Microsulis Medical.
- read the release
- here's The Business Review's take