Lower PVD device prices hurt AngioDynamics' Q1

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AngioDynamics, a developer of medical devices for the minimally invasive treatment of cancer and peripheral vascular disease (PVD), has reported for the fiscal 2011 first quarter, which ended Aug. 31, indicating a drop in net income, despite a slight increase in net sales.

The Albany, N.Y.-based company reported its net income was $1.89 million in the fiscal first quarter of 2011, compared with $2.11 million in the 2010 fiscal first quarter.

Net sales in the first quarter were $51.5 million, a 3 percent increase over the $50.1 million reported in the prior-year period, AngioDynamics said.

For its specific units, oncology/surgery sales increased 22 percent to $15.6 million from the prior year, and included $1.1 million in NanoKnife system sales. Peripheral vascular sales were $20.7 million—a decrease of 2 percent—and access sales were $15.2 million—a decrease of 6 percent—from the first quarter a year ago.

“The year-over-year decline is primarily due to lower average selling prices for peripheral vascular and access products due to a competitive pricing environment, and sales mix,” the company reported. Its operating income was $3.5 million in the quarter compared with $3.6 million a year ago. Other expenses increased to $528,000 in the first quarter of 2011 from $165,000 in the first quarter a year ago “primarily due to the cost of an interest rate swap and foreign exchange losses,” and the impact of this increase was a reduction in earnings of $0.01 per share.