What led to AngioDynamics, Inc. (NASDAQ: ANGO) stock crash

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AngioDynamics, Inc. (NASDAQ: ANGO) stock fell 9.05% on January 7th, 2020 (Source: Google finance) after the company posted mixed results for the second quarter of FY 20. In the second quarter of fiscal 2020. ANGO in the second quarter of FY 20 has reported the adjusted earnings per share of 5 cents, while reported the adjusted revenue growth of 2.5 percent to $70 million in the second quarter of FY 20, missing the analysts’ estimates for revenue of 2.61%.

The Company had used $5.9 million in operating cash and had capital expenditures of $2.6 million. As of November 30, 2019, the Company had generated $41.2 million in cash and cash equivalents and has no debt outstanding. The Company has posted a net loss from continuing operations of $2.7 million, in the second quarter of fiscal 2020. This compares to a net loss from continuing operations of approximately $3.6 million.

Adjusted EBITDA in the second quarter of fiscal 2020, was $6.4 million, compared to $9 million in the second quarter of fiscal 2019. Gross margin for the second quarter of fiscal 2020 was 59.3%, which is an increase of 140 basis points compared to the second quarter of fiscal 2019, mainly due to productivity and supply chain improvements as well as positive product mix

During the second quarter, Oncology net sales grew 5.1% to $16.1 million, from $15.3 million a year ago, on the back of higher sales of NanoKnife and the Alatus and IsoLoc balloon products. Vascular Interventions and Therapies (“VIT”) net sales were $31.2 million, which is an increase of 0.6%, compared to $31.0 million a year ago. Excluding last year’s Asclera sales of $1.7 million in the second quarter, VIT has posted the growth of 6.5%, due to growth in sales of the Company’s AngioVac and core VIT products. Vascular Access net sales were $22.8 million, which is a decline of 4% from $23.7 million a year ago, mainly due to lower sales of Ports and PICCs.

For fiscal 2020, the company expects net sales to be in the range of $280 to $286 million and gross margin is expected to be in the range of 58% to 59%. The adjusted earnings per share is expected to in the range of $0.10 to $0.15. In FY 20, the company will invest in the full-market launch of the products acquired from Eximo anticipated in the second half of the fiscal year.

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