Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to the AngioDynamics' First Quarter Fiscal 2014 Financial Results Conference Call. [Operator Instructions] This conference is being recorded today, Thursday, October 10, 2013. And at this time, I'd like to turn the conference over to Bob Jones, Investor Relations. Please go ahead, sir.

Thank you, Vince. Welcome, everyone, and thank you for joining us for AngioDynamics' conference call this afternoon to review the financial results for the fiscal 2014 first quarter, which ended on August 31, 2013. The news release is available on AngioDynamics' website at angiodynamics.com. A replay of this call will be archived on the company's website. Before we get started, during the course of this conference call, the company will make projections and forward-looking statements regarding future events, including statements about revenue and earnings for the fiscal year 2014. We encourage you to review the company's past and future filings with the SEC, including, without limitation, the company's forms 10-Q and 10-K, which identify specific factors that may cause the actual results or events to differ materially from those described in forward-looking statements. [Operator Instructions] We appreciate everyone's cooperation with this procedure. And with that, I would now like to turn the call over to Joe DeVivo, Chief Executive Officer.

Thank you, Bob. Good afternoon, ladies and gentlemen, and welcome to our conference call for our company's first fiscal quarter of '14. With me is Mark Frost, our Chief Financial Officer, who will review our financial information following my opening remarks. So very pleased with the progress that we're making as a company. We transitioned from a negative 2% growth last quarter to returning to growth here in the first quarter, net the supply agreement. I believe the contributors to our turnaround are: our U.S. sales force improvement and maturity, acceleration of our growth drivers that we've been talking about, as well as stability that we are gaining in our core business. I feel, as a business, in many ways, we've turned the corner. We have a very solid foundation across each of our 3 franchises and are now fully focused on execution: execution of continual operating efficiencies, execution of our growth initiatives and execution of our international channel build-out strategies. This quarter, we've delivered operating results at the top end of our guidance, which is a good start to the year. Mark and I anticipate that as we progress through the year, we will see improving growth, gross margin expansion and cash generation. While progress is being made, there are still areas in the business we are focusing on. It's not time for a victory lap yet. And today, we're pleased that the integration year of '13 is behind us. We're off to a good start to this new fiscal year. We have many highlights this quarter. Our Peripheral Vascular business started the year with momentum. We delivered over $1.4 million of AngioVac revenue, up 30% over last quarter and ahead of the plan that we've set for ourselves during the slowest procedure quarter of our year this first…

Thank you, Joe, and good afternoon, ladies and gentlemen. As you can see from our first quarter fiscal year 2014 results, we continue to take steps forward to drive improvement in our business. The quarter's financial results came in at the high end for both revenue and adjusted earnings per share. In addition, we delivered strong EBITDA and cash generation in a quarter which has been traditionally the weakest of our fiscal year. Now before I start my performance discussion, after being in my role for 9 months, we have made a couple of changes to how we present the business, which we think enhances the clarity and focus of the discussion. On the revenue side, we will present revenue by franchise and geography and then highlight key drivers versus providing all the product family detail. The reason for this change is the product family revenue is not linear by quarter and there is significant volatility because of the seasonality, so every quarter, there'll be a number of anomalies, which we think distracts from the key business messages. In addition, there is a competitive element. We are more comfortable to provide just franchise-level detail. On the forward earnings side, we will only be providing adjusted EPS without the amortization as we think this is a better measure of our operating performance, cash generation potential and value as a company. But turning to revenue, total revenue was flat, but excluding the impact of the planned wind-down of our supply agreement, we were up 1% compared to prior year. Consistent with our strategy, our growth drivers continue to ramp, with AngioVac delivering $1.4 million in the quarter, which puts us on pace to reach our goal for the fiscal year. BioFlo continued its expansion, with 30% of our U.S. PICCs now sold…

Thank you so much, Mark. So in conclusion, it was a good start to the year, which, I believe, will be a good year for the company. We have a very capable management team in place, wonderful growth opportunities proving themselves every day and many internal initiatives which will help us lean out our business to becoming more efficient and service our customers better, while creating greater value for shareholders. Our core business has stabilized. Our growth drivers are delivering, and our most challenged business, Vascular Access, is now seeing some momentum with BioFlo and finally, a set of tip-location solutions. While we are still operating in a difficult global environment, I believe AngioDynamics is poised for consistent future market and financial success. With that, operator, I'm going to open it up for questions.

[Operator Instructions] Our first question is from the line of Tom Gunderson with Piper Jaffray.

So Joe, in Q3 and Q4 reports, you talked about the general tough environment out there, not only for procedures but for capital equipment and that, even in your Q4, where you did better than expected, you didn't think that the overall environment had gotten better. It was just execution. Can you give us a sense of that for Q1 and maybe tie it in a little bit to, I don't know, an example of NanoKnife sales or something?

Sure, Tom. I think it's consistent. I think the -- we don't see the market falling off, but we don't see it getting any better. We are -- I think, we are, as a selling organization, much more in command of our business today, and I think we are able, given our share position, to kind of determine our own future. We do see capital sales, especially on the NanoKnife side, with -- looking for $0.25 million sale, for -- still an early procedure, without reimbursement, is definitely more of a challenge. And we are seeing institutions be very judicious with their capital dollars, so hence, this financing option we're looking at and other ways to free that up. So from a market environment side, we think it's still a challenging market. We don't see it getting better than it's been over the last several quarters, but I don't think we could say it's getting much worse either than the increasing challenge of closing some of our capital.

Got it. And then, Mark, I'll use up my second question by looking for a clarification here. Higher-than-expected gross margin, higher than we expected at least, in Q1, and that was with the last of the negative variances, right? So we should see a step-up in Q2?

Yes. We should -- you should see continued gross margin improvement through the year, as the contribution, particularly like the AngioVac microwave, drive a better gross margin mix in our business and we start ramping faster some of the productivity projects we're working on now.

Our next question is from the line of Jayson Bedford with Raymond James. Jayson T. Bedford - Raymond James & Associates, Inc., Research Division: So I guess, just to start, what's the expected revenue contribution from the acquired business in the Netherlands?

It's going to be low, minimal, $1 million to $2 million. It's a low number, Jason. Jayson T. Bedford - Raymond James & Associates, Inc., Research Division: Okay. And I think I understand some of the changes in disclosures, but I think I missed the growth in PICCs. Did you mention that number, Mark?

No, I didn't. PICCs did improve from negative 10% to about negative 5% in the quarter. Jayson T. Bedford - Raymond James & Associates, Inc., Research Division: Negative 5%, okay. And then just lastly, a quick one on Clinical Devices. Are you taking on the R&D of the tip-location project? And kind of what's the timeline around commercialization there?

Yes, we've taken on the R&D, and timeline for commercialization's probably 1.5 years to 2 years.

[Operator Instructions] Our next question is from the line of Charles Haff with Craig-Hallum Capital Group.

Mark, I wasn't able to keep up with some of the numbers that you were giving. When you said operating cash flow for fiscal '14, what was that growth rate versus fiscal '13?

45% to 50% increase.

Okay, great. Hopefully, that's not one of my questions that I've used up. But on the Clinical Devices, B.V., can you -- I know for competitive reasons, you probably don't want to disclose too much on this next-generation tip location. But is there anything you can say to kind of help us understand this a little bit more?

Well, I think, we're very pleased with our partnership today. I think it's -- our Medcomp partnership with the Celerity system is going to provide great value to customers and a strategic asset for our sellers. We do see that there is opportunity to look at positioning systems that can benefit other products in our portfolio. And so we felt it important to have an internally developed R&D program that gave us control as the market moved from one technology to the other. We've been really scanning, ever since I've walked in the building, the entire landscape of technologies. And we -- this provides us with -- we won't talk about what it's based on or what the platform is based on because we -- I think that's proprietary. But it is a wireless system. It is a system that can be developed for multiple applications, tremendously ergonomic and sexy. And I think it's going to make up for years that this company has been out of this domain. I think it will not only transfer to catching up, but, at least from our view, we think we might even get ahead of it.

Okay, great. And my last question, I'll jump back in queue, on BioFlo, price premium for PICCs, is that 15% premium still sticking?

Yes.

[Operator Instructions] We have a follow-up question from the line of Jayson Bedford with Raymond James. Jayson T. Bedford - Raymond James & Associates, Inc., Research Division: Just a couple of clarifications. Joe, I think you mentioned early on the international channel build-out. And so certainly, with this acquisition in the Netherlands, that seems to be the case there. Are you looking at other smaller-type deals where you bring in distributors?

Yes. It's a good question. Jayson, right now, I think we've done a pretty good job of bringing some disruptive technology into the company. I think we've done a pretty good job with filling the R&D pipeline with new opportunities. I do think that a part of our balance sheet going forward will be dedicated to developing out our international channel. Where we can acquire those, we will. And so we've been very domestically focused over the last couple of years. I expect and we've had -- and we've been able to do so because we've had such a strong international operating team. We're going to be dedicating a lot of time now, with strong momentum in the U.S. building, to focus on accelerating our international footprint. Jayson T. Bedford - Raymond James & Associates, Inc., Research Division: Okay. And you mentioned the financing option that you'll put in place, and I think it includes tip location. Do you know if Medcomp, which I'm guessing will be selling it as well, do they have a similar type of financing options available?

I'm unaware if they do.

Yes. Jayson, I'm not aware of any of our competitors having. I'm sure they have some options, but this will be a complete program we're going to put in place. Jayson T. Bedford - Raymond James & Associates, Inc., Research Division: Okay. And then last one for me. Mark, you mentioned microwave sales doubled in the quarter. Is that year-over-year or quarter-over-quarter?

That was year-over-year.

Our next question is a follow-up from the line of Charles Haff from Craig-Hallum Capital Group.

So we attended the VIVA meeting earlier this week and saw the AngioVac product, and there seemed to be a lot of physician interest there. Wondering if you've received any feedback from your sales guys there in terms of lead generation or anything that you've heard so far.

What's exciting about AngioVac is that it's still in the medical circles in a little-known quantity. We've been out talking about how the device works, and we've been a part of some really exciting and clinically meaningful operations. What's occurring now is the word is getting out. We've just recently -- there's a paper in Endovascular Today talking about its application in -- clinically, that we were excited to see. And I think we'll be entering a phase that the world will start waking up to the fact that they have an option to deal with, with this type of material and this magnitude of material in some of the worst places in the body. So we do think the word is -- right now, at the early stage of the marketplace understanding, what it's got, and I think that bodes well for us in the future.

Okay, great. And then, Mark, a question for you around the gross margin. What assumption do you think we should use for fiscal '14? And are there plant consolidations? Can you kind of outline that at all for us for fiscal '14, if there's some that are available?

Yes. What I can talk to is we're very confident that we should be able to improve gross margin to 75 to 100 basis points versus fiscal year '13. We are evaluating now a next phase of operational opportunities. It will involve a number of different areas. And we're going to have more color on that as we progress through the year. I think it's a little too early to talk to specifics on what we're going to do, Charles. But I'd say, probably, by the next conference call, we'll have a lot more detail on that.

[Operator Instructions] At this time, I'm showing no further questions. I'd like to turn the conference back over to Mr. DeVivo for any closing remarks.

Great. Well, thank you, everyone, for your interest and being on the call. I'm very pleased to see the amount of good news coming from the company. It's a testament of a lot of hard work from a lot of incredibly good people. And as I said earlier, we have great people, a lot of great opportunities. And a lot of the uncertainty that plagued us in the last couple of years is behind us, and I think the keys to our success are purely in our hands. And we're going to put them in the ignition and turn -- hit that gas pedal. So we're pretty excited. So thank you very much for your interest. And we look forward to updating you through the quarter. Thank you.

Ladies and gentlemen, that does conclude our conference for today. Thank you very much for your participation. And at this time, you may now disconnect.