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Apr 24, 2002
Align Technology Announces First Quarter 2002 Results
Align Technology Announces First Quarter 2002 Results
Align Technology Announces First Quarter 2002 Results
Santa Clara, Calif. - April 24, 2002 Align Technology, Inc. (Nasdaq: ALGN), the inventor of Invisalign®, a proprietary method of straightening teeth without wires and brackets, today announced that continued strength in case submissions from orthodontists and an encouraging ramp in initial cases submitted by dentists resulted in a 122 percent jump in revenues to $17.1 million for the first quarter ended March 31, 2002 over the $7.7 million in last year's first quarter. Revenue for the first quarter 2002 represented a sequential increase of 39 percent from $12.3 million in the fourth quarter ended December 31, 2001.
Net losses, for the first quarter of 2002, determined under generally accepted accounting principles ("GAAP") were $18.5 million, or a net loss per share of $0.40. This compares to net losses for the first quarter of 2001 of $43.1 million, or a net loss per share of $1.29. This GAAP net loss includes the effects of stock based compensation expense for both periods. In addition, the net loss for the first quarter of 2001 also includes the dividend related to the beneficial conversion feature of preferred stock and related interest charges from convertible subordinated notes on the preferred stock. Together these non-cash charges are called "special items".
Align President and Chief Executive Officer Tom Prescott said that the increasing revenue ramp and the continued improved operating margins were both good indicators as the company sharpens its focus on near-term profitability.
"I am encouraged that revenue levels showed solid growth," he said, "even prior to the national rollout of our new U.S. advertising campaign. We are starting to see some of the influence created by this campaign and a range of other marketing programs have an impact on both the orthodontist market as well as the general practice dentists, who are eagerly training and submitting initial cases for Invisalign. This growth engine combined with our continued ability to streamline our manufacturing process, fill excess capacity, and manage spending, are the prime drivers behind reaching profitability -- and we are committed to doing so."
The pro forma net loss for the first quarter of 2002, which excludes the above special items, was $12.9 million or $0.28 per share, compared to a pro forma net loss of $24.5 million or $0.73 per share for the first quarter of 2001.
Align Technology will host a webcast and conference call today, April 24, 2001 at 4:30 p.m. EDT, 1:30 p.m. PDT to review first quarter 2002 results, as well as discuss future operating trends and guidance on the outlook for the future. To access the webcast, go to the investor relations portion of Align Technology's website at www.invisalign.com. An archived webcast replay of the call will also be available at that website. To access the conference call please dial (415) 537-1878 approximately ten minutes prior to the start of the call and enter reservation number 20515114. If you are unable to listen to the call, a taped replay will also be available beginning approximately one hour after the call's conclusion and will remain available through 5:30 p.m. EDT on April 26, 2002 and can be accessed by dialing 800-633-8284 with reservation number 20515114. The replay may be accessed from international locations by dialing 858-812-6440 using the same reservation number.
About Align Technology, Inc.
Align Technology designs, manufactures and markets Invisalign, a proprietary new method for treating malocclusion, or the misalignment of teeth. Invisalign corrects malocclusion using a series of clear, nearly invisible, removable appliances that gently move teeth to a desired final position. Because it does not rely on the use of metal or ceramic brackets and wires, Invisalign significantly reduces the aesthetic and other limitations associated with braces. Invisalign is appropriate for treating adults and older teens. Align Technology was founded in March 1997 and received FDA clearance to market Invisalign in 1998.
To learn more about Invisalign or to find a certified Invisalign doctor, please visit www.invisalign.com or call 1-800-INVISIBLE.
This news release may contain forward-looking statements based on Align Technology's current expectations. These forward-looking statements involve risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. These factors include Align Technology's ability to achieve profitability, the ability to control costs and continue to achieve efficiencies, the adoption by orthodontists, dentists, and consumers of Invisalign, Align Technology's successful enforcement of its intellectual property and avoidance of infringement on third party patents, Align Technology's ability to establish and maintain reliable, high-volume manufacturing capacity in the U.S. and internationally and Align Technology's ability to manage its significant growth and retain its key personnel. These factors, as well as other factors that could cause actual results to differ materially, are discussed in more detail in Align Technology's Annual Report on Form 10-K, as well as in other reports and documents filed from time to time with the Securities and Exchange Commission.
Net losses, for the first quarter of 2002, determined under generally accepted accounting principles ("GAAP") were $18.5 million, or a net loss per share of $0.40. This compares to net losses for the first quarter of 2001 of $43.1 million, or a net loss per share of $1.29. This GAAP net loss includes the effects of stock based compensation expense for both periods. In addition, the net loss for the first quarter of 2001 also includes the dividend related to the beneficial conversion feature of preferred stock and related interest charges from convertible subordinated notes on the preferred stock. Together these non-cash charges are called "special items".
Align President and Chief Executive Officer Tom Prescott said that the increasing revenue ramp and the continued improved operating margins were both good indicators as the company sharpens its focus on near-term profitability.
"I am encouraged that revenue levels showed solid growth," he said, "even prior to the national rollout of our new U.S. advertising campaign. We are starting to see some of the influence created by this campaign and a range of other marketing programs have an impact on both the orthodontist market as well as the general practice dentists, who are eagerly training and submitting initial cases for Invisalign. This growth engine combined with our continued ability to streamline our manufacturing process, fill excess capacity, and manage spending, are the prime drivers behind reaching profitability -- and we are committed to doing so."
The pro forma net loss for the first quarter of 2002, which excludes the above special items, was $12.9 million or $0.28 per share, compared to a pro forma net loss of $24.5 million or $0.73 per share for the first quarter of 2001.
Align Technology will host a webcast and conference call today, April 24, 2001 at 4:30 p.m. EDT, 1:30 p.m. PDT to review first quarter 2002 results, as well as discuss future operating trends and guidance on the outlook for the future. To access the webcast, go to the investor relations portion of Align Technology's website at www.invisalign.com. An archived webcast replay of the call will also be available at that website. To access the conference call please dial (415) 537-1878 approximately ten minutes prior to the start of the call and enter reservation number 20515114. If you are unable to listen to the call, a taped replay will also be available beginning approximately one hour after the call's conclusion and will remain available through 5:30 p.m. EDT on April 26, 2002 and can be accessed by dialing 800-633-8284 with reservation number 20515114. The replay may be accessed from international locations by dialing 858-812-6440 using the same reservation number.
About Align Technology, Inc.
Align Technology designs, manufactures and markets Invisalign, a proprietary new method for treating malocclusion, or the misalignment of teeth. Invisalign corrects malocclusion using a series of clear, nearly invisible, removable appliances that gently move teeth to a desired final position. Because it does not rely on the use of metal or ceramic brackets and wires, Invisalign significantly reduces the aesthetic and other limitations associated with braces. Invisalign is appropriate for treating adults and older teens. Align Technology was founded in March 1997 and received FDA clearance to market Invisalign in 1998.
To learn more about Invisalign or to find a certified Invisalign doctor, please visit www.invisalign.com or call 1-800-INVISIBLE.
This news release may contain forward-looking statements based on Align Technology's current expectations. These forward-looking statements involve risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. These factors include Align Technology's ability to achieve profitability, the ability to control costs and continue to achieve efficiencies, the adoption by orthodontists, dentists, and consumers of Invisalign, Align Technology's successful enforcement of its intellectual property and avoidance of infringement on third party patents, Align Technology's ability to establish and maintain reliable, high-volume manufacturing capacity in the U.S. and internationally and Align Technology's ability to manage its significant growth and retain its key personnel. These factors, as well as other factors that could cause actual results to differ materially, are discussed in more detail in Align Technology's Annual Report on Form 10-K, as well as in other reports and documents filed from time to time with the Securities and Exchange Commission.
