Jan. 7--QUEENSBURY -- AngioDynamics Inc. on Tuesday reported higher sales but a dip in earnings for its fiscal 2009 second quarter.

The Queensbury-based medical instruments manufacturer also trimmed its guidance for the remainder of the year.

Net income for the second quarter ended Nov. 30 fell to $2.9 million, or 12 cents a share, from $3.1 million, or 13 cents, a year earlier. Sales, meanwhile, climbed 17 percent to $48.5 million from $41.5 million a year earlier.

AngioDynamics reported the results after the markets closed.

The company said it recorded the first commercial sale of its NanoKnife probe, for $42,000. The product, which uses electrical fields to destroy cancerous cell tissue while sparing ducts, blood vessels and nerves, has been undergoing tests at five sites worldwide and has been approved for use in the European Union.

The sale was to an overseas customer, company officials said during a conference call held Tuesday afternoon.

AngioDynamics also updated its guidance for 2009, rolling back net sales by $5 million to a range of $198 million to $203 million. It also predicted a $1 million to $2 million reduction in operating income for the year, to a range of $19 million to $21 million.

There was no word Tuesday on a successor to Eammon Hobbs, president and CEO, who last month announced plans to step down. He will remain with the company as vice chairman of the board.

Company officials suggested a new chief would be on board later this fiscal year, which already is more than half over.

In the conference call, Hobbs said AngioDynamics is seeing the effects of a slowing economy.

"What we're seeing is a bit of a bunker mentality across the board," he told analysts. "Hospitals e_SLps are looking at every expenditure under a bigger microscope.

"We're not seeing people say no. They're taking a little longer" to make capital purchases, he said.

But Hobbs said the company is "still bullish" on being able to meet its $1 million target for sales of the NanoKnife this fiscal year.

Shares (Nasdaq: ANGO) gained 4 cents to close at $12.91, but fell 18 cents to $12.73 in after-hours trading.

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