SAN JOSE, CA -- (Marketwired) -- 07/18/13 -- Align Technology, Inc. (NASDAQ: ALGN)

• Q2 net revenues of $163.8 million increased 6.7% sequentially and 12.5% year-over-year
• Q2 Invisalign clear aligner shipments of 106.1 thousand increased 8.1% sequentially and 11.4% year-over-year
• Q2 Invisalign clear aligner revenue of $153.3 million increased 8.3% sequentially and 14.7% year-over-year
• Q2 GAAP earnings per diluted share (EPS) was $0.36

Align Technology, Inc. (NASDAQ: ALGN) today reported financial results for the second quarter ended June 30, 2013.

Total net revenues for the second quarter of fiscal 2013 (Q2 13) were $163.8 million. This is compared to $153.6 million reported in the first quarter of 2013 (Q1 13) and compared to $145.6 million reported in the second quarter of 2012 (Q2 12). Q2 13 Invisalign clear aligner revenue was $153.3 million, compared to $141.6 million in Q1 13 and $133.7 million in Q2 12. As expected, Q2 13 clear aligner revenue includes a $1.2 million decrease in revenue due to the change in our mid-course correction policy effective June 15, 2013. Q1 13 clear aligner revenue includes $4.4 million from the planned consolidation of Vivera Retainer product shipments, as well as a $2.7 million decrease in revenue due to the change in our mid-course correction policy. Q2 13 Invisalign clear aligner case shipments were a record 106.1 thousand, compared to 98.2 thousand in Q1 13 and 95.3 thousand in Q2 12. Q2 13 scanner and CAD/CAM services revenue was $10.5 million, compared to $12.0 million in Q1 13 and compared to $11.9 million in Q2 12. Q1 13 scanner and CAD/CAM services revenue includes $1.4 million that was deferred in Q3 and Q4 2012 for the new iTero scanner upgrade program which was launched in Q1 13.

"I'm pleased to report another good quarter with better than expected revenues, gross margins and earnings," said Thomas M. Prescott, Align president and CEO. "Strong second quarter results were driven by higher Invisalign volumes and ASPs, with sequential growth across all customer channels."

Net profit for Q2 13 was $29.3 million, or $0.36 per diluted share. This is compared to net loss of $42.0 million, or $(0.52) per diluted share in Q1 13 and net profit of $28.5 million, or $0.34 per diluted share in Q2 12. Net loss for Q1 13 includes an impairment of long-lived assets of $26.3 million and a goodwill impairment charge of $40.7 million. Net profit for Q2 12 includes pre-tax acquisition and integration related costs of $0.3 million, pre-tax severance and benefit costs of $0.2 million with a total income tax-related adjustment of $0.8 million.

As previously announced, beginning May 1, 2013 the six indirect country markets of Australia, New Zealand, Hong Kong, Singapore, Macau and Malaysia reverted back to a direct Invisalign sales region for us. We have completed the transition and began to recognize direct sales at our full Invisalign average sales price (ASP), rather than the significantly discounted ASP under the distribution agreement.

As of June 15, 2013, we no longer charge a fee associated with mid-course correction orders. Mid-course correction provides Invisalign customers with the option of ordering a treatment adjustment during active treatment if the case is not tracking to the original treatment plan or goals, giving doctors the ability to "adjust course" based on the needs of the individual patient. We now include up to three free mid-course correction orders per case in our list prices for Invisalign Full and Invisalign Teen products. As a result, Invisalign clear aligner revenue for Q2 13 was decreased by $1.2 million, which reflects the revenue deferred to provide free mid-course corrections for open cases shipped between April 1 through June 15, 2013 that are now eligible for the new mid-course correction policy. In Q1 13, Invisalign clear aligner revenue was decreased by $2.7 million, which reflected the estimated deferred revenue for open cases as of March 31, 2013 that were expected to be eligible for the new policy.

To supplement our consolidated financial statements, we use the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP operating expense, non-GAAP operating margin, non-GAAP net profit, non-GAAP earnings per diluted share, EBITDA and adjusted EBITDA. Detailed reconciliations between GAAP and non-GAAP information are contained in the tables following the financial tables of this release. Starting in fiscal year 2013, amortization of acquired intangible assets is no longer excluded as a non-GAAP measure. This expense is included in GAAP gross profit, operating expenses, profit (loss) from operations and net profit (loss) for the periods presented below and therefore is no longer a reconciling item.

Q2 13 Operating Results ($M except for per share amounts and percentages)

Key GAAP Operating Results		Q2 13				Q1 13				Q2 12
Revenue		$	163.8			$	153.6			$	145.6
- Clear Aligner		$	153.3			$	141.6			$	133.7
- Scanner and CAD/CAM Services		$	10.5			$	12.0			$	11.9
Gross Margin			75.5	%			73.5	%			74.7	%
- Clear Aligner			78.4	%			77.2	%			79.0	%
- Scanner and CAD/CAM Services			33.9	%			29.3	%			26.6	%
Operating Expense		$	85.8			$	150.9			$	72.8
Operating Margin			23.1	%			(24.8	)%			24.7	%
Net Profit (Loss)		$	29.3			$	(42.0	)		$	28.5
Earnings (Loss) Per Diluted Share (EPS)		$	0.36			$	(0.52	)		$	0.34
Key Non-GAAP Operating Results			Q2 13				Q1 13				Q2 12
Non-GAAP Gross Margin			75.5	%			73.5	%			74.9	%
- Non-GAAP Clear Aligner			78.4	%			77.2	%			79.0	%
- Non-GAAP Scanner & CAD/CAM Services			33.9	%			29.3	%			28.4	%
Non-GAAP Operating Expense		$	85.8			$	83.9			$	72.5
Non-GAAP Operating Margin			23.1	%			18.8	%			25.1	%
Non-GAAP Net Profit		$	29.3			$	21.2			$	28.2
Non-GAAP Earnings Per Diluted Share (EPS)		$	0.36			$	0.26			$	0.34
EBITDA (Loss)		$	41.4			$	(34.2	)		$	40.8
Adjusted EBITDA		$	41.4			$	32.9			$	41.3

Total stock-based compensation expense included in Q2 13 was $7.3 million compared to $6.4 million in Q1 13 and $5.3 million in Q2 12. Stock based compensation expense included in GAAP gross margin in Q2 13 was $0.6 million, and Q1 13 and Q2 12 was $0.5 million. Stock-based compensation expense included in GAAP operating expense in Q2 13 was $6.7 million compared to $5.8 million in Q1 13 and $4.8 million in Q2 12.

Liquidity and Capital Resources
As of June 30, 2013, Align Technology had $341.3 million in cash, cash equivalents, and short and long-term marketable securities compared to $356.1 million as of December 31, 2012. During Q2 13, with the purchase of 2.6 million of our common stock at an average price of $35.02 per share for a total of approximately $92.7 million, we completed the remaining authorized repurchases under our stock purchase program.

Q3 Fiscal 2013 Business Outlook
For the third quarter of fiscal 2013 (Q3 13), Align Technology expects net revenues to be in a range of $154.9 million to $160.0 million. Invisalign clear aligner case shipments for Q3 13 are expected to be in a range of 103.6 to 106.1 thousand cases, which reflect a year-over-year increase of 12% to 15%. Earnings per diluted share for Q3 13 is expected to be in a range of $0.28 to $0.30.

Align Web Cast and Conference Call
Align Technology will host a conference call today, July 18, 2013 at 4:30 p.m. ET, 1:30 p.m. PT, to review its second quarter 2013 results, discuss future operating trends and business outlook. The conference call will also be web cast live via the Internet. To access the web cast, go to the "Events & Presentations" section under Company Information on Align Technology's Investor Relations web site at http://investor.aligntech.com. To access the conference call, please dial 201-689-8261 approximately fifteen minutes prior to the start of the call. An archived audio web cast will be available beginning approximately one hour after the call's conclusion and will remain available for approximately 12 months. Additionally, a telephonic replay of the call can be accessed by dialing 877-660-6853 with conference number 417357 followed by #. For international callers, please dial 201-612-7415 and use the same conference number referenced above. The telephonic replay will be available through 5:30 p.m. ET on July 26, 2013.

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 teens. Align Technology was founded in March 1997 and received FDA clearance to market Invisalign in 1998.The Invisalign product family includes Invisalign, Invisalign Teen, Invisalign Assist, Invisalign Express 10, Invisalign Express 5, Invisalign Lite, and Vivera Retainers. To learn more about Invisalign or to find an Invisalign trained doctor in your area, please visit www.invisalign.com.

Cadent Holdings, Inc. is a subsidiary of Align Technology and is a leading provider of 3D digital scanning solutions for orthodontics and dentistry. The Cadent family of products includes the iTero scanning systems, OrthoCAD iCast and OrthoCAD iRecord. For additional information, please visit www.cadentinc.com.

About non-GAAP Financial Measures
To supplement our consolidated financial statements and our business outlook, we use the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP operating expenses, non-GAAP profit from operations, non-GAAP net profit and non-GAAP earnings per share, which exclude, as applicable, acquisition and integration related costs, severance and benefit costs, impairment of goodwill, impairment of long-lived assets and any related income tax-related adjustments, and EBITDA and adjusted EBITDA. The presentation of this financial information is not intended to be considered in isolation, or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We use these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our "core operating performance". Management believes that "core operating performance" represents Align's performance in the ordinary, ongoing and customary course of its operations. Accordingly, management excludes from "core operating performance" certain expenditures and other items that may not be indicative of our operating performance including discrete cash and non-cash charges that are infrequent or one-time in nature. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management's internal evaluation of period-to-period comparisons. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making and (2) they are provided to and used by our institutional investors and the analyst community to facilitate comparisons with prior and subsequent reporting periods. A reconciliation of the GAAP and non-GAAP financial measures for the quarter and year and a more detailed explanation of each non-GAAP financial measure and its uses are provided in the footnotes to the table captioned "Reconciliation of GAAP to non-GAAP Key Financial Metrics" and "Business Outlook Summary" included at the end of this release.

Forward-Looking Statement
This news release, including the tables below, contains forward-looking statements, including statements regarding certain business metrics for the third quarter of 2013, including anticipated net revenue, gross margin, operating expense, operating income, earnings per share, case shipments and cash. Forward-looking statements contained in this news release and the tables below 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, difficulties predicting customer and consumer purchasing behavior, the willingness and ability of our customers to maintain and/or increase utilization in sufficient numbers, the possibility that the development and release of new products does not proceed in accordance with the anticipated timeline, the possibility that the market for the sale of these new products may not develop as expected, the risks relating to Align's ability to sustain or increase profitability or revenue growth in future periods while controlling expenses, growth related risks, including capacity constraints and pressure on our internal systems and personnel, our ability to successfully achieve the anticipated benefits from the scanner and the CAD/CAM services business, continued customer demand for our existing and new products, changes in consumer spending habits as a result of, among other things, prevailing economic conditions, levels of employment, salaries and wages and consumer confidence, the timing of case submissions from our doctors within a quarter, acceptance of our products by consumers and dental professionals, foreign operational, political and other risks relating to Align's international manufacturing operations, Align's ability to protect its intellectual property rights, continued compliance with regulatory requirements, competition from existing and new competitors, Align's ability to develop and successfully introduce new products and product enhancements, the loss of key personnel and impairments in the book value of goodwill or other intangible assets. 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, 2012, which was filed with the Securities and Exchange Commission on March 1, 2013. Align undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

ALIGN TECHNOLOGY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
			Three Months Ended							Six Months Ended
			June 30, 2013				June 30, 2012			June 30, 2013				June 30, 2012
Net revenues			$	163,828				145,626		$	317,408				280,705
Cost of revenues				40,137				36,826			80,868				71,145
Gross profit				123,691				108,800			236,540				209,560
Operating expenses:
	Sales and marketing			47,847				39,087			90,128				77,804
	General and administrative			27,027				23,021			57,375				46,532
	Research and development			10,916				10,680			22,198				21,206
	Impairment of goodwill			-				-			40,693
	Impairment of long-lived assets			-				-			26,320
Total operating expenses				85,790				72,788			236,714				145,542
Profit (loss) from operations				37,901				36,012			(174	)			64,018
Interest and other income (expense), net				(335	)			541			(1,323	)			(271	)
Profit (loss) before income taxes				37,566				36,553			(1,497	)			63,747
Provision for income taxes				8,246				8,061			11,166				14,271
Net profit (loss)			$	29,320			$	28,492		$	(12,663	)		$	49,476
Net profit (loss) per share
	- basic		$	0.36			$	0.35		$	(0.16	)		$	0.62
	- diluted		$	0.36			$	0.34		$	(0.16	)		$	0.60
Shares used in computing net profit (loss) per share
	- basic			80,576				80,384			80,909				79,810
	- diluted			82,149				82,954			80,909				82,446

ALIGN TECHNOLOGY, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
					June 30, 2013			December 31, 2012
ASSETS
Current assets:
	Cash and cash equivalents				$	164,497		$	306,386
	Restricted cash					516			1,575
	Marketable securities, short-term					113,933			28,485
	Accounts receivable, net					112,367			98,992
	Inventories					15,704			15,122
	Other current assets					35,076			35,233
		Total current assets				442,093			485,793
Marketable securities, long-term						62,885			21,252
Property and equipment, net						76,932			79,191
Goodwill and intangible assets, net						87,028			145,013
Deferred tax assets						30,622			21,609
Other long-term assets						4,673			3,454
		Total assets			$	704,233		$	756,312
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
	Accounts payable				$	21,556		$	19,549
	Accrued liabilities					75,776			74,247
	Deferred revenue					63,322			61,975
			Total current liabilities			160,654			155,771
Other long term liabilities						23,042			19,224
			Total liabilities			183,696			174,995
Total stockholders' equity						520,537			581,317
		Total liabilities and stockholders' equity			$	704,233		$	756,312

Starting in fiscal year 2013, amortization of acquired intangible assets is no longer excluded as a non-GAAP measure. This expense is included in GAAP gross profit, operating expenses, profit (loss) from operations and net profit (loss) for the periods presented below and therefore is no longer a reconciling item.

ALIGN TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP KEY FINANCIAL METRICS
Reconciliation of GAAP to Non-GAAP Gross Profit
(in thousands)
				Three Months Ended
				June 30, 2013			March 31, 2013				June 30, 2012
GAAP Gross profit				$	123,691		$	112,849			$	108,800
	Acquisition and integration costs related to cost of revenues (1)				-			-				72
	Severance and benefit costs related to cost of revenues (2)				-			-				135
Non-GAAP Gross profit				$	123,691		$	112,849			$	109,007
Reconciliation of GAAP to Non-GAAP Gross Profit Scanner and CAD/CAM Services
(in thousands)
				Three Months Ended
				June 30, 2013			March 31, 2013				June 30, 2012
GAAP Scanner and CAD/CAM Services gross profit				$	3,567		$	3,522			$	3,183
	Acquisition and integration costs related to cost of revenues (1)				-			-				72
		Severance and benefit costs related to cost of revenues (2)			-			-				135
Non-GAAP Gross profit				$	3,567		$	3,522			$	3,390
Reconciliation of GAAP to Non-GAAP Operating Expenses
(in thousands)
				Three Months Ended
				June 30, 2013			March 31, 2013				June 30, 2012
GAAP Operating expenses				$	85,790		$	150,924			$	72,788
	Acquisition and integration costs related to operating expenses (1)				-			-				(261	)
	Severance and benefit costs related to operating expenses (2)				-			-				(49	)
	Impairment of goodwill (3)				-			(40,693	)			-
	Impairment of long-lived assets (4)				-			(26,320	)			-
Non-GAAP Operating expenses				$	85,790		$	83,911			$	72,478
Reconciliation of GAAP to Non-GAAP Profit from Operations
(in thousands)
				Three Months Ended
				June 30, 2013			March 31, 2013				June 30, 2012
GAAP Profit (loss) from operations				$	37,901		$	(38,075	)		$	36,012
	Acquisition and integration costs (1)				-			-				333
	Severance and benefit costs (2)				-			-				184
	Impairment of goodwill (3)				-			40,693				-
	Impairment of long-lived assets (4)				-			26,320				-
Non-GAAP Profit from operations				$	37,901		$	28,938			$	36,529
Reconciliation of GAAP to Non-GAAP Net Profit
(in thousands, except per share amounts)
				Three Months Ended
				June 30, 2013			March 31, 2013				June 30, 2012
GAAP Net profit (loss)				$	29,320		$	(41,983	)		$	28,492
	Acquisition and integration costs (1)				-			-				333
	Severance and benefit costs (2)				-			-				184
	Impairment of goodwill (3)				-			40,693				-
	Impairment of long-lived assets (4)				-			26,320				-
	Income tax-related adjustments (5)				-			(3,788	)			(836	)
Non-GAAP Net profit				$	29,320		$	21,242			$	28,173
Diluted Net profit (loss) per share:
	GAAP			$	0.36		$	(0.52	)		$	0.34
	Non-GAAP			$	0.36		$	0.26			$	0.34
Shares used in computing diluted GAAP Net profit (loss) per share					82,149			81,248				82,954
Shares used in computing diluted Non-GAAP Net profit per share					82,149			83,003				82,954
Reconciliation of GAAP Net Profit to EBITDA and Adjusted EBITDA
(in thousands)
				Three Months Ended
				June 30, 2013			March 31, 2013				June 30, 2012
GAAP Net profit (loss)				$	29,320		$	(41,983	)		$	28,492
Provision for income taxes					8,246			2,920				8,061
Depreciation and amortization					3,846			4,944				4,267
EBITDA (6)					41,412			(34,119	)			40,820
Adjustments or charges:
	Acquisition and integration related costs (1)				-			-				333
	Severance and benefit costs (2)				-			-				184
	Impairment of goodwill (3)				-			40,693				-
	Impairment of long-lived assets (4)				-			26,320				-
EBITDA after adjustments (6)				$	41,412		$	32,894			$	41,337

(1) Acquisition costs and integration related. We have incurred acquisition-related and other expenses which include legal, banker, accounting and other advisory fees of third parties, retention bonuses, integration and professional fees. We do not engage in acquisitions in the ordinary course of business. We believe that it is important to understand these charges; however, we do not believe that these charges are indicative of future operating results. We believe that eliminating these expenses from our non-GAAP measures is useful because we generally would not have otherwise incurred such expenses in the periods presented as part of our continuing operations.

(2) Severance and benefits costs. These costs are related to the closure of our New Jersey operations and were realized through the first three quarters of 2012. We have engaged in various restructuring and exit activities in 2011 and 2009 that have resulted in costs associated with severance and benefits. Such activity has been a discrete event based on a unique set of business objectives or circumstances, and each has differed from the others in terms of its operational implementation, business impact and scope. We do not engage in restructuring and/or exit activities in the ordinary course of business. We believe that it is important to understand significant severance and benefits costs from restructuring and exit activities and believe that investors benefit from excluding these charges from our operating results to facilitate a more meaningful evaluation of current operating performance and comparisons to past operating performance.

(3) Impairment of goodwill. These costs represents non-cash write-downs of our goodwill generally related to negative trends in market and economic conditions, termination of relationships with distributors, or the increase in completive environment related to our Scanner and CAD/CAM Services reporting unit. We remove the impact of these charges to our operating performance to assist in assessing our ability to generate cash from operations. We believe this may be useful information to users of our financial statements and therefore we have excluded these charges for purposes of calculating these non-GAAP measures to facilitate an evaluation of our current operating performance, particularly in terms of liquidity.

(4) Impairment of long-lived assets. These costs represent non-cash write-downs of our long-lived assets generally related to the increase in completive environment related to our Scanner and CAD/CAM Services reporting unit. As a result of these conditions, we have assessed that our asset group within the reporting unit was not recoverable and therefore recorded an impairment charge. We remove the impact of these charges to our operating performance to assist in assessing our ability to generate cash from operations. We believe this may be useful information to users of our financial statements and therefore we have excluded these charges for purposes of calculating these non-GAAP measures to facilitate an evaluation of our current operating performance, particularly in terms of liquidity.

(5) Income tax-related adjustments. Non-GAAP financial information for the quarter is adjusted for a tax rate equal to our annual estimated tax rate on non-GAAP income. This rate is based on our estimated annual GAAP income tax rate forecast, adjusted to account for discrete tax items and items excluded from GAAP income in calculating the non-GAAP financial measures presented above. Our estimated tax rate on non-GAAP income is determined annually and may be re-calculated during the year to take into account events or trends that we believe materially impact the estimated annual rate.

(6) EBITDA and adjusted EBITDA. We use EBITDA as a performance measure for benchmarking against our peers and competitors. We believe EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties to evaluate companies in the medical technology industry. We also use adjusted EBITDA which excludes certain special or non-recurring expenses, net of certain special or non-recurring benefits, detailed in the reconciliation tables that accompany this release, as an internal measure of business operating performance. We believe such financial measures provide a meaningful perspective of the underlying operating performance to our current business. EBITDA and adjusted EBITDA are not recognized terms under GAAP. Because all companies do not calculate EBITDA and similarly titled financial measures in the same way, those measures as used by other companies may not be consistent with the way we calculate such measures and should not be considered as alternative measures of operating or net profit.

ALIGN TECHNOLOGY
Q2 2013 EARNINGS RELEASE ADDITIONAL DATA
REVENUE PERFORMANCE AND CLEAR ALIGNER METRICS
(in thousands except per share data)
					Q1				Q2				Q3				Q4				FISCAL				Q1				Q2
					2012				2012				2012				2012				2012				2013				2013
Invisalign Clear Aligner Revenues by Geography:
	North America				$	86,871			$	92,997			$	89,568			$	91,686			$	361,122			$	97,045			$	102,217
		North American Orthodontists				41,688				43,942				43,090				43,812				172,532				48,859				50,476
		North American GP Dentists				45,183				49,055				46,478				47,874				188,590				48,186				51,741
	International					29,700				32,883				29,700				32,513				124,796				31,818				40,320
	Non-case*					6,757				7,789				7,457				8,660				30,663				12,709				10,766
		Total Clear Aligner Revenue			$	123,328			$	133,669			$	126,725			$	132,859			$	516,581			$	141,572			$	153,303
			YoY % growth			17.6	%			17.6	%			10.9	%			11.7	%			14.4	%			14.8	%			14.7	%
			QoQ % growth			3.7	%			8.4	%			-5.2	%			4.8	%							6.6	%			8.3	%
	*includes Invisalign training, ancillary products, and retainers
Invisalign Clear Aligner Revenues by Product:
	Invisalign Full				$	82,424			$	88,617			$	80,294			$	87,265			$	338,600			$	85,914			$	95,762
	Invisalign Express/Lite					11,806				13,632				12,779				13,269				51,486				16,083				19,158
	Invisalign Teen					15,148				16,380				19,144				16,455				67,127				18,573				19,937
	Invisalign Assist					7,193				7,251				7,051				7,210				28,705				8,293				7,680
	Non-case*					6,757				7,789				7,457				8,660				30,663				12,709				10,766
		Total Clear Aligner Revenue			$	123,328			$	133,669			$	126,725			$	132,859			$	516,581			$	141,572			$	153,303
Average Invisalign Selling Price (ASP):
	Worldwide ASP (1)				$	1,370			$	1,320			$	1,290			$	1,375			$	1,340			$	1,315			$	1,345
	Worldwide ASP, adjusted (2)				$	1,370			$	1,320			$	1,290			$	1,320			$	1,325			$	1,340			$	1,355
	International ASP				$	1,485			$	1,455			$	1,355			$	1,455			$	1,435			$	1,355			$	1,480
	(1) Invisalign case revenues / Invisalign case shipments
	(2) Adjusted for one-time adjustments (eg. Q4'12 refinement release and Q1'13 and Q2'13 grandfathered mid-course correction deferrals)
Invisalign Clear Aligner Cases Shipped by Geography:
	North America					65,280				72,685				70,610				68,140				276,715				74,730				78,865
		North American Orthodontists				32,235				35,420				35,885				33,505				137,045				38,000				39,545
		North American GP Dentists				33,045				37,265				34,725				34,635				139,670				36,730				39,320
	International					19,985				22,595				21,905				22,340				86,825				23,445				27,270
		Total Cases Shipped				85,265				95,280				92,515				90,480				363,540				98,175				106,135
Invisalign Clear Aligner Cases Shipped by Product:
	Invisalign Full					57,145				62,510				57,400				57,920				234,975				61,245				65,525
	Invisalign Express/Lite					12,855				15,300				14,610				15,940				58,705				18,940				21,285
	Invisalign Teen					9,935				11,860				15,265				11,255				48,315				12,580				13,920
	Invisalign Assist					5,330				5,610				5,240				5,365				21,545				5,410				5,405
		Total Cases Shipped				85,265				95,280				92,515				90,480				363,540				98,175				106,135
Number of Invisalign Doctors Cases Shipped to:
	North American Orthodontists					4,460				4,575				4,660				4,615				5,665				4,760				4,940
	North American GP Dentists					11,365				12,120				11,925				11,685				19,285				12,520				13,130
	International					5,085				5,480				5,400				5,715				9,285				5,840				6,355
		Total Doctors Cases were Shipped to Worldwide				20,910				22,175				21,985				22,015				34,235				23,120				24,425
Invisalign Doctor Utilization Rates*:
	North American Orthodontists					7.2				7.7				7.7				7.3				24.2				8.0				8.0
	North American GP Dentists					2.9				3.1				2.9				3.0				7.2				2.9				3.0
	International					3.9				4.1				4.1				3.9				9.4				4.0				4.3
		Total Utilization Rates				4.1				4.3				4.2				4.1				10.6				4.3				4.4
	* # of cases shipped/# of doctors to whom cases were shipped
Number of Invisalign Doctors Trained:
	North American Orthodontists					90				95				125				75				385				65				115
	North American GP Dentists					720				995				675				920				3,310				690				1,015
	International					715				965				685				780				3,145				905				1,020
		Total Doctors Trained Worldwide				1,525				2,055				1,485				1,775				6,840				1,660				2,150
		Total to Date Worldwide				71,180				73,235				74,720				76,495				76,495				78,155				80,305
Scanner and CAD/CAM Services Revenue:
	North America Scanner and CAD/CAM Services				$	11,120			$	11,752			$	9,439			$	9,940			$	42,251			$	11,952			$	10,454
	International Scanner and CAD/CAM Services					631				205				332				41				1,209				56				71
		Total Scanner and CAD/CAM Revenue			$	11,751			$	11,957			$	9,771			$	9,981			$	43,460			$	12,008			$	10,525
	Scanner Revenue				$	5,361			$	6,032			$	4,023			$	4,643			$	20,059			$	6,625			$	5,027
	CAD/CAM Services Revenue					6,390				5,925				5,748				5,338				23,401				5,383				5,498
		Total Scanner and CAD/CAM Services Revenue			$	11,751			$	11,957			$	9,771			$	9,981			$	43,460			$	12,008			$	10,525
Total Revenue by Geography:
	Total North America Revenue				$	97,991			$	104,749			$	99,007			$	101,626			$	403,373			$	108,997			$	112,671
	Total International Revenue					30,331				33,088				30,032				32,554				126,005				31,874				40,391
	Total Non-case Revenue					6,757				7,789				7,457				8,660				30,663				12,709				10,766
		Total Worldwide Revenue			$	135,079			$	145,626			$	136,496			$	142,840			$	560,041			$	153,580			$	163,828
			YoY % growth			28.8	%			21.3	%			8.4	%			10.8	%			16.7	%			13.7	%			12.5	%
			QoQ % growth			4.8	%			7.8	%			-6.3	%			4.6	%							7.5	%			6.7	%
Note: Historical public data may differ due to rounding. Additionally, rounding may effect totals.

ALIGN TECHNOLOGY, INC.

BUSINESS OUTLOOK SUMMARY

(unaudited)

The outlook figures provided below and elsewhere in this press release are approximate in nature since Align's business outlook is difficult to predict. Align's future performance involves numerous risks and uncertainties and the company's results could differ materially from the outlook provided. Some of the factors that could affect Align's future financial performance and business outlook are set forth under "Forward Looking Information" above in this press release.

Financials
(in millions, except per share amounts and percentages)
	Q3 2013
	GAAP
Net Revenue	$154.9 - $160.0
Gross Profit	$114.2 - $118.6
Gross Margin	73.7% - 74.2%
Operating Expenses	$84.8 - $86.9
Operating Margin	19.0% - 19.8%
Net Income per Diluted Share	$0.28 - $0.30
Stock Based Compensation Expense:
Cost of Revenues	$0.8
Operating Expenses	$7.1
Total Stock Based Compensation Expense	$7.9
Business Metrics:
	Q3 2013
Case Shipments	103.6K - 106.1K
Cash, Cash Equivalents, and Marketable Securities	$370M - $380M
Capex	$5.5M - $7.0M
Depreciation & Amortization	$4.2M - $4.7M
Diluted Shares Outstanding	81.6M

Source: Align Technology

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