Press Release
| << Back |
Align Technology Announces Final Decision of Arbitrators in Discus Dental Impressions Arbitration
SANTA CLARA, Calif., Feb. 10 /PRNewswire-FirstCall/ -- Align Technology, Inc. (Nasdaq: ALGN), the inventor of Invisalign®, a proprietary method of straightening teeth without wires and brackets, announced today the conclusion of legal arbitration proceedings initiated by Discus Dental Impressions (Discus). Under the final arbitration award, Discus is entitled to a judgment in the amount of $1.00 and reasonable attorney fees and costs in the amount of $2.1 million. In reaching their decision, the arbitrators found that Align's termination of its marketing agreement with Discus in April of 2002 was wrongful. As previously disclosed, because the final decision of the arbitrators has been issued prior to the filing of the Company's Form 10-K for fiscal 2003, the Company will include a charge relating to the final arbitration award in its 2003 financial statements in accordance with GAAP. The updated 2003 condensed consolidated financial statements are attached.
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 March 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.
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 (1)
(unaudited)
Three Months Ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
(in thousands, except 2003 2002 2003 2002
per share data) (as restated) (as restated)
Revenues $36,502 $20,751 $122,725 $69,698
Cost of revenues 12,926 11,639 51,565 44,991
Gross profit 23,576 9,112 71,160 24,707
Operating expenses:
Sales and marketing 11,138 11,533 43,689 45,313
General and administrative 8,666 9,538 34,296 39,265
Research and development 3,302 3,235 13,112 13,064
Total operating expenses 23,106 24,306 91,097 97,642
Profit (loss) from operations 470 (15,194) (19,937) (72,935)
Interest and other income
(expense), net (18) (202) (185) 116
Net profit (loss) $452 $(15,396) $(20,122) $(72,819)
Net profit (loss) per share -
basic $0.01 $(0.30) $(0.35) $(1.52)
Weighted-average shares used
in computing basic net profit
(loss) per share 58,398 51,796 57,759 47,878
Net profit (loss) per share -
diluted $0.01 $(0.30) $(0.35) $(1.52)
Weighted-average shares used
in computing diluted net
profit (loss) per share 63,704 51,796 57,759 47,878
(1) Certain reclassifications of prior period amounts have been made to
conform with current year presentation.
ALIGN TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (1)
(unaudited)
December 31, December 31,
(in thousands) 2003 2002
ASSETS
Current assets:
Cash and cash equivalents $44,939 $35,552
Restricted cash 439 3,261
Marketable securities, short-term 2,292 2,693
Accounts receivable, net 21,265 16,766
Inventories, net 1,395 1,533
Deferred costs 939 1,139
Other current assets 5,845 4,888
Total current assets 77,114 65,832
Property and equipment, net 23,121 25,078
Other long-term assets 1,967 1,946
Total assets $102,202 $92,856
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $3,095 $3,403
Accrued liabilities 19,180 9,683
Deferred revenue 13,113 9,403
Debt obligations, current portion 1,989 2,183
Total current liabilities 37,377 24,672
Debt obligations, long-term portion 1,667 3,333
Capital lease obligations, net of
current portion 182 504
Total liabilities 39,226 28,509
Total stockholders' equity 62,976 64,347
Total liabilities and
stockholders' equity $102,202 $92,856
(1) Certain prior period amounts have been adjusted to conform with
current year presentation.
ALIGN TECHNOLOGY, INC.
NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (1) (2)
(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 (loss), 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 (loss) 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 (loss) 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 loss prepared in accordance with generally accepted accounting principles in the United States of America.
Three Months Ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
(in thousands, except 2003 2002 2003 2002
per share data) (as adjusted) (as adjusted)
Revenues $36,502 $20,751 $122,725 $69,698
Cost of revenues 12,405 10,894 49,024 41,033
Gross profit 24,097 9,857 73,701 28,665
Operating expenses:
Sales and marketing 10,704 10,102 41,502 41,161
General and administrative 7,252 5,204 26,691 25,198
Research and development 2,634 2,490 9,898 9,762
Total operating expenses 20,590 17,796 78,091 76,121
Profit (loss) from operations 3,507 (7,939) (4,390) (47,456)
Interest and other income
(expense), net (18) (202) (185) 116
Net profit (loss) $3,489 $(8,141) $(4,575) $(47,340)
Net profit (loss) per share -
basic $0.06 $(0.16) $(0.08) $(0.99)
Weighted-average shares used in
computing basic net profit
(loss) per share 58,398 51,796 57,759 47,878
Net profit (loss) per share -
diluted $0.05 $(0.16) $(0.08) $(0.99)
Weighted-average shares used in
computing diluted net profit
(loss) per share 63,704 51,796 57,759 47,878
(1) Certain reclassifications of prior period amounts have been made to
conform with current year presentation.
ALIGN TECHNOLOGY, INC.
RECONCILIATION OF GAAP NET PROFIT (LOSS) TO ADJUSTED NON-GAAP NET PROFIT
(LOSS)
(unaudited)
Three Months Ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
(in thousands) 2003 2002 2003 2002
(as adjusted) (as adjusted)
Calculation of non-GAAP net profit
(loss) excluding special items:
Net profit (loss) $452 $(15,396) $(20,122) $(72,819)
Items:
Stock-based compensation expense
included in: (1)
- cost of revenues 521 745 2,541 3,399
- sales and marketing 434 927 2,187 3,002
- general and administrative 1,414 1,402 7,098 10,663
- research and development 668 745 3,214 3,221
Restructuring costs included in: (2)
- cost of revenues -- -- -- 559
- sales and marketing -- 504 -- 1,150
- general and administrative -- 2,932 507 3,404
- research and development -- -- -- 81
Non-GAAP net profit (loss) excluding
special items $3,489 $(8,141) $(4,575) $(47,340)
(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.
(2) Restructuring costs represent restructuring charges for severance,
facility closures, and losses on disposal and impairment of fixed
assets incurred as part of our July 2002 plan to streamline worldwide
operations during 2002, and the remainder of our indirect operational
activities related to the transition of operations from the United
Arab Emirates and Pakistan to Costa Rica during the first quarter of
2003.
SOURCE Align Technology, Inc.
/CONTACT: investors, Barbara Domingo of Align Technology, Inc.,
+1-408-470-1204, or bdomingo@aligntech.com; or press, Shannon Henderson of
Ethos Communications, Inc., +1-678-417-1767, or
shannon@ethoscommunication.com, for Align Technology, Inc./
/Web site: http://www.invisalign.com /
http://www.prnewswire.com