Jul. 21--QUEENSBURY -- Medical device maker AngioDynamics Inc. said Wednesday that sales jumped 13 percent and profits increased fivefold in the fourth quarter ended May 31.

The drastic increase in earnings for the quarter, however, was largely attributed to a $700,000 write-off during the recent fourth quarter related to an unrealized facility expansion in Queensbury, and a $6.8 million litigation expense in the prior-year fourth quarter. Excluding those two items, AngioDynamics said fourth-quarter profits fell almost 28 percent year over year to $3.4 million. The company attributed the decline to an increased investment in its NanoKnife tumor-treating technology, as well as sales and marketing expenses.

For the full year, profits were also down. Net income fell 9 percent to $9.9 million as compared to the previous year. The year-end results include the acquisition of two companies, Diomed and FlowMedica. Still, AngioDynamics says sales were strong. Sales revenue grew 17 percent to $195.1 million for the full year; in the fourth quarter, sales were up 13 percent to $52.8 million. President and CEO Jan Keltjens said the fourth-quarter results in particular indicate an ongoing restructuring. Since taking over the company on March 1, Keltjens has laid out a plan to bring focus to the various business units and increase manufacturing and supply chain efficiency.

"We have identified the business areas that can drive global growth and are moving forward on streamlining the organization, increasing accountability, focusing R&D efforts and creating a center of expertise for manufacturing and process engineering," Keltjens said in an investor conference call Wednesday.

AngioDynamics also plans to establish a corporate office near Albany, instead of pursuing previously announced plans to expand the Queensbury facility.

Chief Financial Officer Joseph Gersuk characterized the recent 2009 fiscal year as "transitional" and said that would continue into the 2010 fiscal year.

Looking ahead to 2010, AngioDynamics expects sales to increase 7 to 10 percent to between $209 million and $215 million. About 10 percent of revenue will be invested in research and development, Keltjens said. The NanoKnife, specifically, will receive almost a quarter of all earnings per share in 2010. Keltjens defended the investment, saying it showed the firm's confidence in the technology. However, he held back on details surrounding clinical trials for the product expected to begin in the coming months. Also in the 2010 fiscal year, Keltjens said he plans to create an international business unit and hire a manager to lead that division in Europe.

AngioDynamics reported cash and investments of $68.2 million and long-term debt of $6.8 million as of May 31. AngioDynamics shares ended the day down 2 cents to $13. In after-hours trading on the Nasdaq, shares were down $1.10 to $11.90.

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