Revenue during the quarter went down marginally by 2.10 percent to $85.60 million from $87.43 million in the previous year period. Gross margin for the quarter expanded 137 basis points over the previous year period to 51.16 percent. Total expenses were 94 percent of quarterly revenues, down from 97.75 percent for the same period last year. This has led to an improvement of 376 basis points in operating margin to 6 percent.

Operating income for the quarter was $5.14 million, compared with $1.97 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $15.51 million compared with $13.89 million in the prior year period. At the same time, adjusted EBITDA margin improved 224 basis points in the quarter to 18.12 percent from 15.89 percent in the last year period.

"The quarter demonstrates continued execution on our core imperatives to improve our operational efficiency, strengthen our balance sheet and move forward on initiatives that will enable us to deliver sustainable top line revenue growth," said Jim Clemmer, president and chief executive officer of AngioDynamics. "We have already taken several positive steps to improve our operational efficiency and simplify our supply chain, and in February we made the decision to consolidate operations in Denmead, U.K. and Manchester, Ga. into our New York facilities."

For financial year 2017, AngioDynamics projects revenue to be in the range of $352 million to $355 million. The company forecasts diluted earnings per share to be in the range of $0.68 to $0.70 on adjusted basis.

The company has spent $1.81 million cash to meet investing activities during the nine month period as against cash outgo of $3.89 million in the last year period.

The company has spent $31.42 million cash to carry out financing activities during the nine month period as against cash outgo of $19.17 million in the last year period.

Cash and cash equivalents stood at $35.57 million as on Feb. 28, 2017, up 62.45 percent or $13.67 million from $21.90 million on Feb. 29, 2016.

Working capital increases
AngioDynamics has recorded an increase in the working capital over the last year. It stood at $94.41 million as at Feb. 28, 2017, up 7.50 percent or $6.59 million from $87.82 million on Feb. 29, 2016. Current ratio was at 2.86 as on Feb. 28, 2017, up from 2.43 on Feb. 29, 2016.

Cash conversion cycle (CCC) has decreased to 74 days for the quarter from 156 days for the last year period. Days sales outstanding went down to 52 days for the quarter compared with 56 days for the same period last year.

Days inventory outstanding has decreased to 62 days for the quarter compared with 142 days for the previous year period. At the same time, days payable outstanding went down to 40 days for the quarter from 41 for the same period last year.