Angeion to Change Name, Sell Off Product Line

The company, which sells various cardiorespiratory diagnostic systems, plans to change its name to MGC Diagnostics Corporation and has signed a letter of intent to sell off its New Leaf health and fitness product line; separately, Angeion reported a net loss of $409,000 on revenue of $6.3 million for the second quarter that ended in April.

Following a rough second quarter, Angeion Corporation announced plans to change its name and said that it has entered into a preliminary agreement to sell off one of its product lines.

Within the next several months, Vadnais Heights-based Angeion will become MGC Diagnostics Corporation, the company said in Thursday morning conference call with investors. The “MGC” references its primary brand—MedGraphics—under which it sells various cardiorespiratory diagnostic systems, CEO and President Gregg Lehman said during the call. The “Diagnostics,” meanwhile, calls attention to the specific markets in which Angeion competes.

Lehman said the new name will make Angeion’s mission more apparent to both customers and potential investors. The company hopes to have completed the name within the third quarter, which ends in late July.

Angeion also said Thursday that it has signed a letter of intent with a “non-affiliated third party” regarding the sale of its New Leaf health and fitness product line. The agreement is subject to negotiations and a definitive agreement with the unnamed third party.

The New Leaf brand provides metabolic assessment data. Its products, which are used in health clubs, test and provide data about a customer’s breathing and heart rate.

Angeion said in December that it was considering selling the New Leaf product line. Lehman said in the Thursday conference call that a sale will likely occur sometime within the third quarter, and that the company has already “downsized the [New Leaf] staff” in anticipation of a sale.

In addition to announcing its upcoming name change and the pending sale of New Leaf, Angeion on Thursday reported a net loss of $409,000, or 11 cents per share, for the second quarter that ended April 30; that compares to a net loss of $138,000, or 4 cents per share, for the same period last year. Sales for the recently completed quarter totaled $6.3 million, down about 8 percent from the same period the prior year.

Angeion attributed its second-quarter results, in part, to the fact that some of its customers requested medical equipment deliveries to be delayed. During the Thursday conference call, Lehman said that many of the equipment delivery delays resulted from construction delays at hospitals.

“However, delivery of those orders has commenced and we expect to deliver the majority of those delayed orders in the current quarter,” Lehman said in a statement. “We do not believe that these delays will have a material impact, and we expect solid operational and financial results throughout the remainder of fiscal year 2012.”

Angeion is among Minnesota’s 100-largest public companies based on revenue, which totaled $29.1 million for the fiscal year that ended in October—roughly flat with the prior year. Its net loss for the most recent fiscal year totaled $152,000, a marked improvement from an $849,000 net loss the prior year.