(RTTNews) - Therapeutic and diagnostic device maker AngioDynamics (ANGO: News ), Tuesday reported a first quarter profit that edged down from a year ago on higher expenses, yet coming in ahead of Street estimates. Quarterly sales rose driven by growth in Oncology/Surgery business unit and VenaCure EVLT product line, and also came in above Street estimates. Looking ahead, AngioDynamics tightened its fiscal 2010 guidance from its previous outlook, raising the lower end of earnings and revenue range.

For the first quarter, net income of the Queensbury, New York-based company decreased to $2.11 million or $0.09 per share from $2.21 million or $0.09 per share in the same quarter a year ago.

On average, seven analysts polled by Thomson Reuters expected earnings of $0.08 per share for the quarter. Analysts' estimate typically excludes one-time items.

AngioDynamics attributed the decline in net income primarily to increased operating expenses associated with sales and marketing programs and continuing investment in irreversible electroporation technology.

Sales for the quarter rose 13% to $50.09 million from $44.32 million in the prior-year quarter, beating Street estimates of $47.79 million.

Peripheral Vascular sales rose by 14% to $21.1 million, and included sales of the Benephit renal infusion system acquired from FlowMedica in January 2009, as well as the sales from the acquisition of Diomed assets since June 17, 2008.
Access sales were $16.2 million, up 3% from the first quarter a year ago, while Oncology/Surgery sales jumped 25% to $12.8 million from same quarter last year.

Sequentially, AngioDynamics reported a rise in fourth quarter profit to $2.90 million or $0.12 per share from $0.51 million or $0.02 per share in the prior-year quarter. Quarterly revenues grew 13% to $52.82 million.

For the quarter under review, gross margin was 60.2%, down from 61.9% a year ago, with the decline primarily attributable to product mix, material cost increases, a competitive pricing environment and utilization factors.

Jan Keltjens, President & CEO said, "We are addressing this through our stated focus on manufacturing excellence and inventory management. We believe this focus will result in gross margin improvement and lower inventory levels beginning in the second half of the fiscal year. In addition, our focus on innovation keeps us on schedule to launch an additional seven new products, for a total of 11, by the end of the fiscal year."

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