Press Release
<< Back |
Align Technology Announces Update on Patients First Program and Q4 2006 Outlook
SANTA CLARA, Calif., Dec 21, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Align Technology, Inc. (Nasdaq: ALGN), the inventor of Invisalign(R), a proprietary method of straightening teeth without wires or brackets, today announced an update regarding its Patients First Program for providing no-charge Invisalign treatment to former OrthoClear patients, as well as updated the outlook for the fourth quarter of 2006.
At the beginning of the fourth quarter, Align launched the Patients First Program to provide no-charge Invisalign treatment to doctors and patients impacted by competitor OrthoClear, Inc.'s decision to cease business operations as part of a legal settlement with Align. Doctors who wished to take advantage of the program were required to register their OrthoClear patients with Align by December 15, 2006. Between the October 30, 2006 registration start date and the December 15 registration deadline, approximately 30,500 former OrthoClear patients were registered for Invisalign treatment. Align received case submissions for 16,200 of those registered patients and expects to ship 20 to 25 percent of received cases in Q4.
As a result of the influx of Patients First Program cases and a high number of regular Invisalign case submissions in Q4, Align expects to process all Patients First Program cases by late May 2007 at a total cost of $8-10 million. Processing time for Patients First Program cases may take 12 to 16 weeks due to manufacturing constraints, primarily for ClinCheck set-ups, which require highly-skilled, specially-trained dental technicians. Align has hired and is currently training 100 new technicians. The Company is also continuing to increase customer call center capabilities to handle the 40 percent increase in calls since the Patients First Program launch.
"Our initial plan for implementing the Patients First Program allowed us to help former OrthoClear patients without impact to our existing customers or new, paid Invisalign cases," said Thomas M. Prescott, Align president and CEO. "Based on higher than anticipated demand from the Patients First Program and from regular new patients, we have to re-set expectations going forward. Invisalign customers may see longer customer service hold times and slight delays in ClinCheck processing times for the next few months. The entire Align team is working to get all Invisalign patients started in treatment quickly and to minimize these temporary service delays for our customers. We appreciate the support and patience our customers have demonstrated in the last few weeks."
Invisalign doctors may experience temporary delays in customer service response times and ClinCheck preparation time for some new cases may be extended approximately 10 days. Once the ClinCheck is approved by the doctor, normal manufacturing times will apply. Doctors can always get accurate, up to date information on submitted cases through their Invisalign VIP account.
Q4 Case Metrics and Revenue Update
Registration for the Patients First Program ended on December 15, 2006. As of that day, the following metrics related to the Patients First Program and former OrthoClear cases were available.
(rounded to the nearest 100) Final number of OC cases 33,100 Cases registered 30,500 Cases submitted to Align 16,200 Number of OC doctors 5,300 % of Invisalign-certified OC doctors 87%
Outlook for the Company's fourth quarter of fiscal 2006 has been impacted due to OrthoClear ceasing operations. The higher than expected revenue outlook for the fourth quarter of fiscal 2006 is due to higher than expected ASP and higher than expected training revenue from former OrthoClear customers who were not Invisalign-certified . Align Technology expects to announce Q4 and FY 2006 financials on January 30, 2006.
Outlook for Outlook for 4th Quarter of 4th Quarter of FY 2006 on FY 2006 on 10/25/06 12/22/06 Revenues $48-52m $53.5-54.5m Invisalign Case Shipments 36-39k 38.5-39k PFP Case Shipments 3.7-4.1k Cost of PFP Program $10-13m $8-10m
More information on the Patients First Program is available to doctors and patients at www.invisalign.com.
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.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include, among other things, statements concerning Align's expected fourth quarter of fiscal 2006 revenue, Invisalign case shipments, Patients First Program case shipments and the cost of the Patients First Program as well as the anticipated time in which Patients First Program cases will be shipped and the expectation that the delays for Invisalign customers is temporary. 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 control expenses, fluctuations in demand for Invisalign, Align's ability to timely and effectively train newly hired highly-skilled, specially -trained dental technicians and foreign operational, political and other risks relating to Align's international manufacturing operations. 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, 2005, which was filed with the Securities and Exchange Commission on March 1, 2006, 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 Mangum Henderson Align Technology, Inc. Ethos Communication, Inc. (408) 470-1000 (678) 540-9222 investorinfo@aligntech.com align@ethoscommunication.com
SOURCE Align Technology, Inc.
investors, Barbara Domingo of Align Technology, Inc., +1-408-470-1000, or investorinfo@aligntech.com; or media, Shannon Mangum Henderson of Ethos Communication, Inc., +1-678-540-9222, or align@ethoscommunication.com
http://www.invisalign.com
Copyright (C) 2006 PR Newswire. All rights reserved
News Provided by COMTEX