Good morning, and welcome to the AngioDynamics Fiscal Year 2020 Second Quarter Earnings Call. All participants are currently in a listen-only mode. As a reminder, this conference is being recorded. The news release detailing the fiscal 2020 second quarter results was issued earlier this morning and is available on the Company’s website. This conference call is also being broadcast live on the Internet at the Investors section of the Company’s website. The webcast replay of the call will be accessible at the same site about one hour after the call concludes. Before we begin, I would like to remind listeners that during this conference call, the Company will make projections or forward-looking statements related to future events, including expected revenue, adjusted earnings, and gross margins for fiscal year 2020. Management encourages you to review the Company’s past and future filings with the SEC, including forms 10-Q and 10-K, which identify specific factors that could lead to actual results or events differing significantly from those mentioned in the forward-looking statements. A slide package that provides insights into the Company's financial results is available on the Investors section of the Company's website under Events & Presentations. This presentation should be viewed alongside the press release discussing the Company's operating results and financial performance during this morning's call. I will now turn the call over to Jim Clemmer, AngioDynamics' President and Chief Executive Officer. Mr. Clemmer?

Thank you, Rob, and good morning, everyone, and thank you for joining us for AngioDynamics’ fiscal 2020 second quarter earnings call. Joining me on today's call is Steve Trowbridge, AngioDynamics’ General Counsel and Interim Chief Financial Officer, who will provide a detailed analysis of our second quarter financial performance. But first, I'd like to begin by providing an overview of our operational and execution highlights for the quarter. We achieved strong margin expansion and profitability during the quarter driven by ex-Asclera sales growth that continues to trend in the right direction. I’m pleased with our continued transition from a company with a broad portfolio of undifferentiated products to a much more focused medical technology company that delivers unique and innovative healthcare solutions. The new profile of our company is enabling us to move away from the mature lower growth markets where we have competed in the past by carving out significant space in larger and faster growing markets. We will continue to develop our foundational technologies such as NanoKnife, AngioVac and our recently acquired Eximo atherectomy laser to drive this transformation. We will also further accentuate our existing portfolio strengths by acquiring or developing technology to support these products as evidenced by the acquisition of the C3 Wave tip location device announced this morning. We remain focused on three drivers to continue our transformation: internal research and development, M&A and clinical and regulatory pathway expansion. A great example of execution through our internal R&D efforts is our AngioVac Generation 3 cannula insert kit that we launched late last quarter. AngioVac Gen 3 drove our ninth consecutive quarter of double-digit procedure and revenue growth in our thrombus management category. With respect to M&A, this morning, we announced the acquisition of the C3 Wave PICC tip location system. This wireless app-based ECG system eliminates the need for a confirmatory chest X-ray during PICC tip placement. The system has received FDA 510k, CE, Health Canada, and other international approvals. This product can be used as an aid when inserting PICCs at the bedside and fills a technology gap in our VA portfolio that has been a contributing factor in the decline of our PICC revenue over the past several years. As a result, we believe that this tip location system will allow for greater patient access to our unique BioFlo PICCs. In addition, we are continuously evaluating opportunities to reshape our portfolio. Our balance sheet allows us to remain opportunistic with regard to M&A that will enhance our existing oncology and thrombus management portfolios. We are also prepared to augment these existing portfolios with equally disruptive and innovative technology as evidenced by our acquisition of Eximo Medical. We have already made significant progress integrating this acquisition into AngioDynamics. We have begun building out a dedicated sales force to put this unique and highly innovative laser atherectomy technology in the hands of clinicians. We have also been working hard to build out a robust and scalable supply chain to ensure that our physicians' needs are met in a timely manner with high quality products. We remain on pace to continue to make our expected investments to ensure that we are prepared to properly launch this product into the marketplace. We have also been spending more time in the field with key opinion leaders discussing the opportunities and use cases of the Eximo laser atherectomy product. Hearing what these physicians have to say after using the product, we’re even more excited about the application of Eximo's unique technology and the competitive positioning in a large and growing market. One of these KOLs, Dr. John Rundback, a radiologist at Holy Name Medical Center in Teaneck, New Jersey, co-authored the results of Eximo's initial IDE study and recently spoke with us about the distinct advantages of Eximo's laser atherectomy product. Specifically, he highlighted Eximo's proprietary technology that allows the device to provide more energy than competing lasers, enabling more effective removal of both calcified and non-calcified lesions, while also more effectively preventing destruction of the surrounding vessel walls. As clinicians gain a better understanding of the improved outcomes and ease of use afforded by this technology compared to the current standard of care, we anticipate a meaningful increase in adoption and revenue over the coming years. As Dr. Rundback highlighted, this novel laser technology enables clinicians to perform atherectomy across both laser and mechanical procedures in a way that is more versatile and less risky than other methods and we remain confident that clinicians will see value in this product. As we continue to make solid progress building out our internal infrastructure, we remain on track to execute a commercial launch towards the end of our fiscal year. The third driver of our transformation is clinical and regulatory pathway expansion. The NanoKnife DIRECT study is an example of our ability to leverage our developing clinical and regulatory talents. As of today, 13 study sites have secured IRB approval and we anticipate up to an additional five sites achieving IRB approval by the end of our fiscal year. We are very pleased with the pace at which leading institutions are committing to our comprehensive clinical study and securing IRB approval. This pace and commitment supports our expectation that we will enroll the required 250 patients in the registry arm of the study over the coming 2.5 years. Separately, we are pleased to announce that our prostate safety study has secured central IRB approval. This will keep us on pace to complete this study by the end of the fiscal year. We look forward to providing you additional updates on both of these exciting NanoKnife related studies over the coming quarters. Lastly, we are pleased to announce that during the quarter, the American Medical Association CPT Editorial Panel posted two newly approved Category III CPT physician billing codes for irreversible electroporation. The AMA's approval of these physician billing codes recognizes the unique features of IRE and NanoKnife for patients with pancreatic and other serious cancers. The new codes enable physicians to distinguish this innovative technology when reporting IRE, which will also help generate new clinical data. I want to specifically recognize the Society of Interventional Radiology and the American College of Surgeons, who co-sponsored the application for new codes to the American Medical Association. We look forward to continuing to work with key specialty societies, our physician customers, patient advocacy groups and other stakeholders to advance access to the life-changing benefits of NanoKnife. We continue to build momentum, while putting a foundation in place to support higher organic revenue growth and the integration of Eximo, and as we expect to build further momentum into the back half of the year our team continues to execute against our strategic initiatives. Now before I turn the call over to Steve, I would like to take a moment and thank Michael Greiner for his many outstanding contributions during his time as part of the AngioDynamics' leadership team. As I frequently mentioned, this is a very different company than it was even two or three years ago, and Michael played a very large and valuable role in that transformation. I want to wish Michael and his family well, and we wish him much success going forward in his new role. With that, I would like to turn the call over to Steve Trowbridge, our General Counsel and Interim Chief Financial Officer.

Thanks, Jim, and good morning, everyone. Before I begin, please remember that we post a presentation on our Investor Relations website summarizing the key items associated with our quarterly and year-to-date results, as well as our financial guidance. Unless otherwise noted, all prior year results and comparisons exclude the contribution of our Namic Fluid Management business. Additionally, we’ve anniversaried the acquisitions of BioSentry and RadiaDyne, and all results discussed today are on an organic basis. Our net sales for the second quarter of fiscal 2020 were $70 million, which is flat compared to a year ago. Excluding the fiscal 2019 revenue contribution from the Asclera therapy product, which we stopped distributing during the fourth quarter of fiscal year 2019, revenue growth for the second quarter was 2.5%. Our AngioVac, NanoKnife, and Alatus and IsoLoc balloon products exhibited solid growth during the quarter. These pockets of growth were partially offset by declines in our PICCs and port products. Our total VIT business grew 0.6% year-over-year and when excluding Asclera, grew 6.5% led by strong growth in AngioVac. AngioVac procedural volume remained strong with procedures increasing 31% year-over-year, representing our ninth consecutive quarter of double-digit volume and revenue growth. Our core business also returned to growth during the quarter. This combined with the strength of AngioVac is an encouraging sign as we enter the back half of the year. Vascular access revenue declined roughly 4% during the second quarter as growth in sales of our dialysis products was more than offset by declines in sales of PICCs and ports. As Jim mentioned earlier, we are very excited about the acquisition of the C3 Wave tip location system and expect that filling this technology gap will have a positive impact on our PICC business going forward. In addition, as we discussed last quarter, we were awarded the GPO agreement with Premier for ports. This agreement allows us to leverage Premier's extensive membership network of approximately 4,000 U.S hospitals and 165,000 other providers to sell our BioFlo, Vortex and Xcela products, and we expect this agreement to drive growth in the back half of the year. Revenue from our Oncology business increased 5.1%, primarily related to growth from NanoKnife and balloons. This growth was somewhat offset by a continued anticipated decline in sales of our radiofrequency ablation product. NanoKnife's growth in the quarter was strong, driven by significant capital sales, partially offset by a quarter-over-quarter decline in probe sales. We remain focused on driving future utilization and while sales of disposable probes in the quarter were soft, the significant amount of capital sales coupled with the pace of leading hospitals engagement with our DIRECT study that Jim mentioned earlier are both strong indicators of commitment to the NanoKnife platform, and we expect probe sales to grow in the back half. Moving down the income statement. Our gross margin for the second quarter of fiscal 2020 was 59.3%, up 140 basis points compared to a year ago, driven primarily by productivity and supply chain improvements, as well as positive product mix. Our research and development expenses during the second quarter of fiscal 2020 were $7.8 million or 11.1% of sales compared to $7.1 million or 10.1% of sales a year ago. As we have previously messaged, we are continuing to invest strategically in R&D and clinical to support the growth of our leading technologies. We continue to expect R&D spend to be between $32 million and $34 million in fiscal year 2020, including investments related to our acquisition of Eximo. SG&A expense for the second quarter of fiscal 2020 increased to $31.1 million, representing 44.4% of sales compared to $28.5 million, representing 40.8% of sales a year ago. We continue to anticipate SG&A spend between $126 million and $130 million for fiscal year 2020. This increase in spend will support our upcoming product launches as well as the needed investments for a commercial release of Eximo in the back half of our fiscal year. Our adjusted net income for the second quarter of fiscal 2020 was $2.2 million or $0.06 per share compared to adjusted net income of $2.9 million or $0.07 per share in the second quarter of last year. Adjusted EBITDA in the second quarter of fiscal 2020 was $6.4 million compared to $9 million in the second quarter of fiscal 2019. In the second quarter of fiscal '20, we began with roughly $83.6 million in cash and we used $5.9 million of cash in operating activities. Our free cash flow was $3.3 million. During the second quarter, we used $45.8 million of cash on hand to fund the acquisition of Eximo Medical that we discussed during last quarter's call. As of November 30, 2019, we had $41.2 million in cash and cash equivalents and no debt. With regards to our financial guidance for fiscal 2020, we continue to expect net sales in the range of $280 million to $286 million and gross margin in the range of 58% to 59%. We also continue to anticipate adjusted EPS in the range of $0.10 to $0.15. To provide further context around the earnings guidance, we acknowledge that our year-to-date earnings are already near the top end of our full year guidance range. As we discussed last quarter, we anticipate increasing investment over the back half of the fiscal year with respect to building the Eximo commercial team and supply chain infrastructure. These investments remain in line with our original plan and will impact earnings most significantly during the third quarter of fiscal 2020. With that, I would like to turn the call back to the operator to open the call for questions.

Thank you. Our first question is from Jason Mills with Canaccord Genuity. Please go ahead with your question.

Hi. Good morning, gentlemen. Thank you for taking the questions. Can you hear me okay, Jim?

Hi, Jason. We can. Good morning.

Good. Happy New Year to you. I have a few questions. There are certainly some positive signs this quarter. Let me go over a couple of them, and then I will rejoin the queue. First, I wanted to discuss the acquisition of the tip location system. In this quarter, Vascular access probably didn't meet your expectations. How quickly do you think the addition of the tip location systems to your portfolio will improve that business? Also, looking ahead over the next couple of years, what kind of growth do you anticipate for that business overall with this new system?

Yes. So a couple of good questions, Jason. So a couple of things in the vascular access portfolio, this year we will grow our ports. The first half of the year, ports are behind prior year. In the second half, we have the Premier contract kicking in as we previously identified and communicated. And we know that our port business will pick up in the second half and have good momentum into next year. Also with PICCs, we think the acquisition of the C3 Wave system is really important for us. It won't really affect our numbers this year, Jason, we will integrate the product into our technology, into our portfolio. But as we grow, it's really important to us because we want to do both tip location and navigation. Today, the products are ready for tip location. It's not yet ready for navigation, we will continue that development during the process. So we expect over time, we will guide you more clearly to '21 in our 3-year guidance soon. But we expect our whole vascular access portfolio to grow in the low single digits over the next few years.

That's helpful information. Regarding the Eximo product line, could you provide more details about the commercial infrastructure you're planning to have in place to effectively compete in a market that demands a strong direct sales team? Many investors are curious about how AngioDynamics intends to compete against the extensive sales forces and aggressive tactics of other teams across the country with Eximo. Can you elaborate on that? Additionally, what do you consider to be a reasonable first-year revenue projection post-launch for Eximo? If possible, could you give a range? I have one more follow-up question and will return to the queue.

Sure. Yes, there is a lot to discuss, Jason. As we mentioned nearly three months ago when we made the acquisition, Eximo Medical is a technology company based in Tel Aviv with remarkable technology. They have excelled not only in the science behind their device but also in securing FDA approval. Currently, there is only one commercial representative in the U.S. on the Eximo team, and that individual is highly skilled and knowledgeable in the field. In the last 90 days, we've taken the actions we promised during that call. We have added another commercial leader to help manage the workload and have also hired and trained our first group of sales representatives and field support personnel for clinical assistance. We are still on track with our goals. This is why we are investing significantly now despite minimal revenue. We expect to meet our internal target for sales reps in the field by the end of this quarter and to establish further goals by May 31 in our next fiscal quarter. Due to competitive reasons, we have not disclosed specific locations or numbers of these personnel yet, but we are executing the plan we roughly outlined to you in October. We have not provided specific revenue guidance apart from what we discussed a few months ago, in which we projected achieving 8% to 10% market share by the end of year three, and we remain confident in those estimates.

To clarify, I wanted to emphasize what Jim mentioned. By the end of three years, we are aiming for an 8% to 10% target. You will notice an increase, with year two ending at a higher rate than year one. You can visualize this ramp up in a typical way as it progresses. We recognize that this is a high touch business, and we are aware of that. The adjustments to our fiscal 2020 earnings guidance, which we revised last quarter due to the acquisition, reflect this awareness along with the work we've done in the first quarter. Moving forward, as we build our commercial team in the latter half of the year, it is crucial that we have the necessary infrastructure in place, along with sales and clinical specialists, to fully support our launch.

Thank you. Lastly for me, AngioVac has shown great growth, and the increase in procedures is equally impressive, which is not particularly surprising. Our research indicates that the venous space is growing quite rapidly. Could you elaborate on the types of accounts where you are seeing the best adoption of AngioVac and what feedback you are receiving from physicians regarding the treatment of pulmonary embolisms and VTE in general with these mechanical thrombectomy technologies? What are your expectations for the future in this area?

So, Jason, we believe that the mechanical thrombectomy market will experience significant growth as physicians become more confident and the device becomes more available. This includes not only our unique device but also several other strong options in the market. I am confident that people will start to trust mechanical thrombectomy as a viable treatment option. Specifically regarding our device, we are very satisfied with the launch of AngioVac 3.0. Our marketing and research and development teams took customer feedback seriously, which guided the development of the 3.0 device. As you mentioned about new customers, there are two main groups to consider, Jason. One group consists of those who previously tried our 2.0 device and set it aside while waiting for the improvements we incorporated in 3.0. The second group includes those who have not yet used our device but are now interested because of its unique capabilities, including our perfusion system, which helps minimize blood loss and effectively address large thrombus. We're pleased with the initial rollout of 3.0. Additionally, as we've indicated, there are other research and development projects in our pipeline that will enhance the device's applicability for more physicians and potentially enable further treatments. We are also committed to exploring mergers and acquisitions as a way to incorporate external innovations into our offerings, and now I'll let Steve discuss the PE and VTE.

Yes. To reiterate what Jim mentioned, we are very happy with the growth that AngioVac has demonstrated, and what excites us most is that it is primarily in the areas where we have been active. We have observed physicians focusing mainly on the right heart and also treating some vegetation, specifically tricuspid valve vegetation. With the R&D programs we have in place and by utilizing our clinical and regulatory expertise that Jim talked about, we see new opportunities for AngioVac that we have not explored yet. We view AngioVac similarly to how we view NanoKnife, as a platform that can drive future growth in the medium to long-term, while we continue to experience solid growth in the current market.

Thanks, folks.

Thank you. Our next question comes from the line of Matthew Mishan with KeyBanc Capital Markets. Please proceed with your questions.

Good morning and thank you for taking the questions. Just first, Jim, on the NanoKnife clinical trial, you’re making very good progress in enrolling sites. I'm just curious where you are with the randomized control arm? I think that's the more difficult part of enrolling the study?

Steve?

Yes, Matt, thanks for the question. So we haven't talked about specific enrollment on either of the registry or the RCT side. What we're focusing on is getting the sites up and running and that’s what we've been disclosing. As you know, it's a tough process in terms of getting patients in with a long protracted inclusion and exclusion assessment process. They have to make sure that they're properly staged and then there is three months of induction chemotherapy and then you have to restage and go from there. So it does have some longer lead-time to get the patients in. There's no doubt that the RCT side is moving slower than the registry side, but that's to be expected. We haven't seen anything that tells us that it's going to be harder than we thought on the RCT side. So it's really progressing along with our expectations. Again, as we are focusing getting the hospitals through the IRB process, which can be very long and protracted and we're really excited with the momentum that we made with getting those 13 sites in today and then moving on to the site-specific enrollment efforts throughout the back half of this year and into the rest of the process of running the trial.

As a follow-up to it, of the 13 study sites that have been approved, is one of them approved as like a randomized control site or is that still up, are you still working on that?

No. A number of them are approved on both the RCT and the registry side. So I think the majority of those sites are approved for both. Some sites are just registry sites and some slides are actually just RCT sites and we do have a mix, but it's not like we only have one or two.

Okay, excellent. When considering the guidance, for the second half of the year, the sales growth required to reach even the lower end of the guidance is around 6 to 6.5%. What changes do you anticipate in the second half, and are you still projecting a 20% growth in oncology for the year, or has that been adjusted?

So, Matt, you're correct. In each of our three businesses, we know precisely where we stand, and we agree with your numbers for the second half. In the Vascular Access business, we have the Premier contract that just started in November, and it's in compliance with two of the three arms. They have a 90-day period to become compliant, and that's currently in progress. We're pleased with the adoption, along with a few small product launches in our Vascular Access business that we expect to succeed. Moving on to VIT, our venous business has faced challenges over the last couple of years and has negatively impacted revenue, but this year, thanks to our innovative radio laser technology and effective sales and marketing efforts, we've managed to stabilize that business and potentially achieve slight growth going forward. The team has done a commendable job as this area has been a strain on our growth, and we anticipate good performance in the second half. Regarding thrombus, our thrombus business is on a positive trajectory, especially with the launch of AngioVac 3.0 and other developments in that segment, which we are well-prepared for. In oncology, we expect strong growth primarily in three areas: the two acquisitions from last year, BioSentry and RadiaDyne, related to balloons and gel, will perform well in the second half. Additionally, our microwave business had a slower start than expected, but we are now winning significant customers, which should reflect positively in the second half. Lastly, we are seeing robust adoption of our new NanoKnife 3.0, as evidenced by substantial hardware and capital sales in the first half of the year. We anticipate continued strong demand and an increase in our probes as treatments for patients progress. Therefore, we are very confident in the numbers you indicated for the second half.

Okay. Regarding Solero, why has it started off slow? It seems to be flat for the first half of the year while RF has decreased significantly. How should we consider the relationship between your microwave business growth and the decline in RF?

Yes, as I mentioned earlier, it's slightly below our expectations. One thing we're doing internally is that in the past, we competed with Solero mainly in smaller treatment sites because we were cautious about competing with major players like J&J and Medtronic. Now, the team we've assembled has a strong understanding of the market, and our technology is superior; we need to communicate that more effectively. Over the last six months, the sales teams have been focusing on larger centers and sites, challenging J&J and Medtronic based on how our technology functions and what makes it different. While gaining larger sites offers significant potential, the process takes longer. Therefore, we are a bit behind our original expectations, but we are confident in our pipeline and believe the second half will be strong.

Do you have orders for those sites, or are you still in the process and they just haven't shipped yet, or are you still trying to win that business?

A little bit of both, Matt, but I don't want to mislead you. It's not like we get an order and have it ship. That's not too much of our business, I want to be clear with you. We have hardware produced, we have probes available or applicators in this case. But no, if you go through the purchasing cycle, we know where we are in our pipeline. We measure very closely. So I don't want to mislead you, say, we have a bunch of teed up orders we haven't shipped that wouldn't be fair. We just know the process of our pipeline, it's timing related.

Okay. Understood. And last question I am going to jump out, on the tip location, you previously discontinued efforts several years ago, PICCs continue to erode. I guess why is now the right time to come back in and trying to stabilize and with this product?

It's a really good time for us, a couple of things you identified. When I first arrived at AngioDynamics a few years ago I communicated to our external parties why we discontinued our internal development on tip location. There were some challenges there from a technology standpoint and from an IP standpoint, frankly. And we know that our other competitors had bought up some of the other existing opportunities to market. So we kind of took a time out and pushed out to the side while we did other things develop other platforms here. So for us, two things occurred, Matt. One is we then got back because R&D process had worked well. We launched AngioVac 3.0, NanoKnife 3.0, even some other products in the VA bag are being launched and we also know now exactly why and how our growth has been inhibited in the PICC area. Part of that again is due to our lack of a tip location and navigation system and the other part, we believe very, very clearly and I will remind you again why we filed a suit against Bard because we know that they are unfairly restricting trade access for our customers to have access in that market and as you know, as we've publicly communicated on the lawsuit we placed on Bard. So we have a couple of different things restricting it, Matt, but we're highly confident. We also have a sales and marketing team that has delivered in that space and grown other categories that are very well. So the timing was right. We got a great technology, it worked out really well, again tip location over right away for us to use, it will continue and finish development on the navigation asset.

All right. Thanks, Jim and congratulations, Steve, on the new role.

Thank you, Matt.

The next question is from Jayson Bedford with Raymond James. Please go ahead with your question.

Hi. Good morning and Happy New Year, guys. Few questions and I will kind of jump all over the place a little bit here. But on the tip location device, when was it approved and did Medcomp actually launch the device?

So it's been approved about 18 months ago, I think, Jason, and they have had the device in the market for about 18 months.

Okay. And I assume it's agnostic to what type of PICC or will this be dedicated to Angio PICCs?

So the Medcomp system is an open system and it was approved as an open system. We will keep it that way. We will certainly be selling it with Angio PICCs, but it will also be open to be used with other PICCs as well. The way that we think the whole market should be.

Fair enough. On Nano, the new sites that you've added to the trial, are they new to the therapy or the existing users that have decided to participate in the trial?

We've seen both. We've seen both sites that are existing users that have gotten through their IRB process because they've got familiarity with the technology. We've also seen sites that are coming on board now because of the fact that we have the IDE approved and that they're using the IDE as part of our proposed PMA to bring in the technology that maybe they had some institutional barriers before. We've also seen some sites that haven't been Nano users at all that we're getting in as a control sites, which we need as part of our registry arm that are also flipping now and saying, hey, once I understand more about NanoKnife, let me get inside the NanoKnife part of it too. So we're seeing both of those and we like that encouraging sign.

Okay. And I missed the comment on the disposables on Nano? Were they down year-over-year or quarter-over-quarter or both?

It's both. It's both. So they were down quarter-over-quarter and they are down year-over-year.

Okay.

I'm sorry. Year-to-date and then quarter year-over-year.

Okay. BioSentry, down year-over-year. I think your expectations entering the year looks for faster growth. Why is the growth slower and kind of what needs to happen for the growth to pick up?

We made a change to the go-to-market model for BioSentry. We removed two large distributors from our supply chain and restructured our acquisition process. This was a bold move because we wanted to take control over our customers and pricing, and we accomplished that. However, we may have underestimated the amount of product still in the supply chain, which caused some disruption. But that is now resolved, and we have full ownership. We're optimistic about the second half of the year, as we have observed positive run rates and ordering patterns that support our projected numbers.

Just to add a little more color to that, Jayson. We segment the customers for BioSentry into three different categories. So there's new customers, which we are absolutely bringing on since we purchased the product. We are bringing in new customers and we're seeing good volume that they're doing. Existing customers that were purchasing direct from BioSentry before we bought it. We are seeing growth there as well. That’s a very encouraging sign. And then to Jim's last point, there's a number of ways that you can move from a distributor to direct model, we chose to do it pretty quickly, ripped the band-aid off, could have made other choices, but we thought this was the right long-term choice. And as we head into the second half of the year, we're absolutely seeing those customers that used to purchase from distributors coming back online. So when you put all three of those together with growth, we are very confident that we are going to see growth in the back half of the year.

Okay. That's helpful. And just my last one on AngioVac 3.0, I think the revenue growth for AngioVac was 53%. Volume growth, I think you mentioned at 31%. Is the variance just price, or is there a capital component that I'm forgetting here?

There's not a capital component. There is a price, and the new AngioVac 3.0 is priced at a higher point in the market. Part of that is new users coming on board to utilize the product, as I mentioned earlier. Sometimes they purchase a few devices before their first treatment. It's a bit of both. These will converge over time. We're very focused on our procedural growth, which is very important to us. In this instance, we are seeing strong numbers in both procedures and actual revenue, and you've identified the reasons quite well. Again, it's the average selling price and the uptake of new technologies, with customers stocking them on the shelf.

Thank you.

Thank you. I would now like to turn the call back over to Mr. Clemmer for any closing remarks.

So thank you for listening to our call today. We appreciate your interest in our company. If you go back to the comments that we've made publicly over the past 18 to 24 months, we talked about changing our portfolio as one of the most significant ways that we will drive value at AngioDynamics. Over the past 18 months, we've now made five moves with our portfolio. We've divested one asset that we don't think we were the rightful owner of going forward, and we've acquired four assets. This morning with the C3 Wave tip being our fourth. Those are really important for us in a number of ways. We are now competing in markets with higher total addressable markets for us to compete in, they're healthier and faster growing and they also offer us a chance to let our technology innovation shine. So we're really pleased and hopefully you will see that our actions have at least met the words that we've used to identify our transition as a company and we couldn't do that without the scores of people that work here, people who've joined our company, being part of this, they drive our outcomes with our patients and our outcomes with our customers and caregivers. We are pleased with our results and we look forward to sharing you our Q3 soon. Thank you for your time this morning.

Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.