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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) April 20, 2005
ALIGN TECHNOLOGY, INC.
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(Exact Name of Registrant as Specified in Its Charter)
DELAWARE
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(State or Other Jurisdiction of Incorporation)
0-32259 94-3267295
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(Commission File Number) (IRS Employer Identification No.)
881 Martin Avenue, Santa Clara, California 95050
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(Address of Principal Executive Offices) (Zip Code)
(408) 470-1000
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(Registrant's Telephone Number, Including Area Code)
Not applicable
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On April 20, 2005, Align Technology, Inc. ("Align") is issuing a press
release and holding a conference call regarding its financial results for its
first quarter ended March 31, 2005. The full text of the press release is
furnished as Exhibit 99.1 to this Form 8-K.
This information shall not be deemed "filed" for purposes of Section 18 of
the Securities and Exchange Act of 1934, as amended (the "Exchange Act"), or
incorporated by reference in any filing under the Securities Act of 1933, as
amended, or the Exchange Act, except as shall be expressly set forth by specific
reference in such a filing.
Align is making reference to non-GAAP financial information in both the
press release and the conference call. A reconciliation of non-GAAP financial
measures contained in this press release to the comparable GAAP financial
measures is contained in the attached press release and a reconciliation of
these and other non-GAAP financial information provided on the conference call
is contained on the Investor Relations section of our website at
investor.aligntech.com.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
(C) EXHIBITS.
EXHIBIT NO. DESCRIPTION
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99.1 Press Release of Align Technology, Inc. dated April 20, 2005
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: April20, 2005 ALIGN TECHNOLOGY, INC.
By: /s/ Eldon M. Bullington
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Eldon M. Bullington
Vice President of Finance and Chief
Financial Officer
INDEX TO EXHIBITS
EXHIBIT NO. DESCRIPTION
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99.1 Press Release of Align Technology, Inc. dated April 20, 2005
Exhibit 99.1
ALIGN TECHNOLOGY, INC. REPORTS Q1 2005 REVENUES OF $51.2M AND EPS OF $0.03
SANTA CLARA, Calif., April 20 /PRNewswire-FirstCall/ -- Align Technology,
Inc. (Nasdaq: ALGN), the inventor of Invisalign(R), a proprietary method of
straightening teeth without wires and brackets, today reported financial results
for the first quarter of 2005. Total revenues for the first quarter of 2005 were
$51.2 million, compared to $39.2 million in the first quarter of 2004, an
increase of 30.5 percent.
"We are pleased with the solid progress made in the first quarter, yet far
from satisfied," stated Thomas M. Prescott, Align Technology's President and
CEO. "2005 promises to be an important year for Align representing significant
changes. We believe these changes will make us a better company and make
Invisalign the best product for our customers. We are on track to providing
customers with additional product options that will help expand their practices.
And we are continuing our journey to make Invisalign the preferred alternative
for straightening teeth and Align Technology a leader in the orthodontic
industry."
The net profit for the first quarter of 2005, as reported on a GAAP basis,
was $1.9 million, or earnings per share (EPS) of $0.03. This compares to a GAAP
net profit of $557 thousand for the first quarter of 2004, or EPS of $0.01 per
share. For comparison purposes, this also compares to a non-GAAP net profit of
$2.8 million for the first quarter of 2004 or non-GAAP EPS of $0.04. Non-GAAP
net profit excludes the effects of stock-based compensation. The reconciliation
of the GAAP to non-GAAP measurements for net profit and EPS for the first
quarter of 2004 is set forth below within Align Technology's financial
statements.
As of March 31, 2005, Align had $69.5 million in cash, cash equivalents, and
marketable securities, compared to $70.0 million as of December 31, 2004.
Align Webcast and Conference Call
Align Technology will host a webcast and conference call today, April 20,
2005 at 10:00 a.m. EDT, 7:00 a.m. PDT, to review the first quarter of 2005
results and discuss future operating trends and guidance. To access the webcast,
click on "Webcasts & Presentations" on Align Technology's Investor Relations web
site at http://investor.aligntech.com . To access the conference call, please
dial 201-689-8341 approximately fifteen minutes prior to the start of the call.
If you are unable to listen to the call, an archived web cast will be available
beginning approximately one hour after the call's conclusion and will be
available on our website. Additionally, a telephonic replay of the call can be
accessed by dialing 877-660-6853 with account number 292 followed by # and
conference number 142992 followed by #. The replay may be accessed from
international locations by dialing 201-612-7415 and using the same account and
conference numbers referenced above. The telephonic replay will be available
through 5:30 p.m. EDT on May 5, 2005.
About Align Technology, Inc.
Align Technology designs, manufactures and markets Invisalign, a proprietary
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 April 1997 and received FDA clearance to market
Invisalign in 1998.
To learn more about Invisalign or to find a certified Invisalign doctor in
your area, please visit www.invisalign.com or call 1-800-INVISIBLE.
Forward-Looking Statements
This news release contains forward-looking statements, including statements
regarding Align's ability to provide its customers with additional product
options to help expand their practice. Forward-looking statements contained in
this news release relating to expectations about future events or results are
based upon information available to Align as of the date hereof. Readers are
cautioned that these forward-looking statements are only predictions and are
subject to risks, uncertainties and assumptions that are difficult to predict.
As a result, actual results may differ materially and adversely from those
expressed in any forward-looking statement. Factors that might cause such a
difference include, but are not limited to, risks relating to Align's ability to
sustain or increase profitability or revenue growth in future periods while
controlling expenses, Align's limited operating history, demand for Invisalign
and acceptance of Invisalign and any new enhancements or new products by
consumers and dental professionals, our ability to develop and successfully
introduce new products, Align's ability to protect its intellectual property
rights, potential intellectual property or product liability claims or
litigation, Align's ability to manage its rapid growth, competition from
manufacturers of traditional braces and new competitors, Align's ability to
comply with regulations enforced by the Food and Drug Administration and other
regulatory authorities and risks related to any deterioration in the general
economic condition or specifically in the markets in which Align sells its
products. These and other risks are detailed from time to time in Align's
periodic reports filed with the Securities and Exchange Commission, including,
but not limited to, its Annual Report on Form 10-K for the fiscal year ended
December 31, 2004, which was filed with the Securities and Exchange Commission
on March 3, 2005, and its Quarterly Reports on Form 10-Q. Align undertakes no
obligation to revise or update publicly any forward-looking statements for any
reason.
Investor Relations Contact: Press Contact:
Barbara Domingo Shannon Henderson
Align Technology, Inc. Ethos Communications, Inc.
408-470-1204 678-417-1767
bdomingo@aligntech.com shannon@ethoscommunication.com
ALIGN TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended
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(in thousands, except per share data) March 31, 2005 March 31, 2004
- ---------------------------------------- -------------- --------------
Revenues $ 51,155 $ 39,205
Cost of revenues 15,478 13,393
Gross profit 35,677 25,812
Operating expenses:
Sales and marketing 19,134 13,272
General and administrative 9,511 8,277
Research and development 4,903 3,346
Total operating expenses 33,548 24,895
Profit from operations 2,129 917
Interest and other income (expense), net (60) (227)
Provision for income taxes (206) (133)
Net profit $ 1,863 $ 557
Net profit per share
- basic $ 0.03 $ 0.01
- diluted $ 0.03 $ 0.01
Shares used in computing net profit
per share
- basic 61,246 59,091
- diluted 63,148 64,559
ALIGN TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
March 31, December 31,
(in thousands) 2005 2004
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ASSETS
Current assets:
Cash and cash equivalents $ 68,988 $ 69,659
Restricted cash 293 303
Marketable securities, short-term 250 --
Accounts receivable, net 31,875 28,809
Inventories, net 3,071 2,852
Other current assets 6,450 5,211
Total current assets 110,927 106,834
Property and equipment, net 22,105 21,702
Other long-term assets 3,639 2,176
Total assets $ 136,671 $ 130,712
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,018 $ 3,361
Accrued liabilities 23,567 23,481
Deferred revenue 17,996 16,257
Debt obligations, current portion 1,349 1,849
Total current liabilities 45,930 44,948
Other long-term liabilities 35 25
Total liabilities 45,965 44,973
Total stockholders' equity 90,706 85,739
Total liabilities and
stockholders' equity $ 136,671 $ 130,712
ALIGN TECHNOLOGY, INC.
NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Use of Non-GAAP Financial Information
To supplement our condensed consolidated financial statements presented on a
GAAP basis, Align uses a non-GAAP measure of net profit, which is adjusted to
exclude certain costs and expenses and any associated tax effects of such
adjustments. We believe that our non-GAAP net profit gives an indication of our
baseline performance before other charges that are considered by management to
be outside of our core operating results. In addition, our non-GAAP net profit
is among the primary indicators management uses as a basis for our planning and
forecasting of future periods. The presentation of this additional information
should not be considered in isolation or as a substitute for net profit prepared
in accordance with generally accepted accounting principles in the United States
of America.
Three Months Ended
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(in thousands, except per share data) March 31, 2005 March 31, 2004
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Revenues $ 51,155 $ 39,205
Cost of revenues 15,478 12,995
Gross profit 35,677 26,210
Operating expenses:
Sales and marketing 19,128 12,978
General and administrative 9,505 7,122
Research and development 4,903 2,976
Total operating expenses 33,536 23,076
Profit from operations 2,141 3,134
Interest and other income (expense), net (60) (227)
Provision for income taxes (206) (133)
Net profit $ 1,875 $ 2,774
Net profit per share
- basic $ 0.03 $ 0.05
- diluted $ 0.03 $ 0.04
Shares used in computing net profit
per share
- basic 61,246 59,091
- diluted 63,148 64,559
ALIGN TECHNOLOGY, INC.
RECONCILIATION OF GAAP NET PROFIT TO ADJUSTED NON-GAAP NET PROFIT
(unaudited)
Three Months Ended
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(in thousands) March 31, 2005 March 31, 2004
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Calculation of non-GAAP net profit
excluding special items:
Net profit $ 1,863 $ 557
Items:
Stock-based compensation expense
included in: (1)
- cost of revenues -- 398
- sales and marketing 6 294
- general and administrative 6 1,155
- research and development -- 370
Non-GAAP net profit excluding special
items $ 1,875 $ 2,774
(1) Stock-based compensation expense represents the amortization of deferred
stock-based compensation recorded in connection with the granting of stock
options to employees and non-employees. Stock-based compensation expense
also includes the accelerated vesting of options to several employees in
connection with severance packages.
SOURCE Align Technology, Inc.
-0- 04/20/2005
/CONTACT: investors, Barbara Domingo of Align Technology, Inc.,
+1-408-470-1204, or bdomingo@aligntech.com; or media, Shannon Henderson of
Ethos Communications, Inc., +1-678-417-1767, or
shannon@ethoscommunication.com, for Align Technology, Inc./
/Web site: http://www.invisalign.com /