AngioDynamics Picks Getinge's Eric Honroth As CEO, Effective November 2, As Jim Clemmer Retires After 10 Years
The CEO change came with first-quarter revenue of $80.9 million and unchanged full-year guidance, the company said on its earnings call.
AngioDynamics CEO Jim Clemmer said on the company's fiscal first-quarter earnings call Thursday that the board has chosen Eric Honroth, a former Getinge executive, as his successor, effective November 2. Quarterly revenue rose 6.9% to $80.9 million, and management kept its full-year guidance.
Who Honroth is
Clemmer, the company's President and Chief Executive Officer, opened the call by saying the board had finished a comprehensive search for his successor. Honroth will join as President and Chief Executive Officer.
Clemmer said Honroth has more than 20 years in medical devices and life sciences. He most recently served as Global President, Life Science at Getinge (the transcript spells it "Getting"), and before that ran its $1.2 billion North American business.
His earlier roles were at Abbott Vascular, Beck & Dickinson, Care Fusion and Boston Scientific, Clemmer said. The board wanted "someone who's driven real growth and profitability in large, complex organizations and who knows our markets firsthand."
Clemmer said he will "remain closely involved" to keep the handover smooth. Analysts from Canaccord Genuity and others congratulated him on his 10 years and his retirement.
The quarter and guidance
CFO Steve Trowbridge reported MedTech revenue of $39.9 million, up 13.2%, lifting its share of sales to 49% from 47% a year earlier. The med device segment grew 1.4% to $41 million.
Gross margin was 59.4%, up 410 basis points (4.1 percentage points). Without $1.2 million of tariff refunds, Trowbridge said, it would have been 57.8%.
The GAAP net loss was $7.1 million, or 17 cents a share, versus $10.9 million, or 26 cents, a year earlier. Adjusted EBITDA was $5 million versus $2.2 million.
The company used $15.3 million of cash in operations and ended with $34 million in cash and no debt. Guidance stays at $336 million to $341 million in sales, with adjusted EBITDA of $13 million to $16 million.
NanoKnife and the BPH study
NanoKnife revenue was $8.3 million, up 29%, with probes up 24.1% and capital sales up 53.5%. Trowbridge said capital sales are lumpy and will not keep growing at that rate.
Clemmer said the FDA approved the company's study of NanoKnife for BPH, an enlarged-prostate condition, in a market the company estimates at about $1.9 billion. Trowbridge said it is early stage and the pilot will not settle durability. He said R&D should stay near 10% of sales.
Honroth takes over November 2, and Clemmer's closing message to analysts was to stay with the company's journey.
Sources
- AngioDynamics: Fiscal Q1 Earnings Snapshot – WTOP News — wtop.com
- AngioDynamics Affirms FY2027 Adj EPS Guidance... — benzinga.com
