AngioDynamics, Inc. (ANGO) yesterday reported first quarter fiscal 2010 earnings per share of 9 cents, surpassing the Zacks Consensus Estimate of 8 cents. Earnings per share in the year-ago quarter also reached 9 cents.

Sales

Net sales in the reported quarter were $50.1 million Incorporatedreasing 13% year over year. The increase was across all the business segments. On a geographic basis, U.S. sales contributed approximately 90% of total sales and increased roughly 15% year over year. International sales were roughly flat year over year.

Peripheral Vascular sales increased 14% year over year to $21.1 million. This was primarily due to the Benephit renal infusion system and Diomed acquisitions. Access sales increased 3% year over year to $16.2 million. Oncology/Surgery sales increased 25% year over year to $12.8 million.

Margins

Gross margin declined 170 basis points (bps) year over year to 60.2% in the quarter. The decline was primarily due to an unfavorable product mix, higher costs of raw materials, a competitive pricing environment and lower utilization rates. Operating expenses increased due to higher sales and marketing programs and the company’s continuing investments in irreversible electroporation [IRE] technology.

Lower gross margin and higher operating expenses were primarily responsible for lower operating and net margins. Operating margin declined 150 bps year over year to 7.1%. Net margin declined 80 bps year over year to 4.2%.

Balance Sheet

AngioDynamics ended the reported quarter with cash, cash equivalents and short-term investments of roughly $68.8 million, compared to $68.2 million in the prior quarter. The company ended the quarter with a long-term debt of $6.7 million.

Outlook

AngioDynamics has provided guidance for the full fiscal year 2010. Net sales are estimated between $211 million and $215 million, compared to the previous guidance of $209 million to $215 million. Gross margin should range between 61% and 62%. Operating income should be in the range of $18 million to $20 million.

AngioDynamics is engaged in the designing, development, manufacture and marketing of therapeutic and diagnostic devices to treat peripheral vascular disease [PVD] and other non-coronary diseases.

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