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Align Technology, Inc. Reports Revenues of $51.2M for Q4 2005 and $207.1M for Fiscal Year 2005
Additional Quarterly Information
Jan 25, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Align Technology, Inc. (Nasdaq: ALGN), the inventor of Invisalign®, a proprietary method of straightening teeth without wires and brackets, today reported financial results for the fourth quarter and full year of 2005. Total revenues for the fourth quarter of 2005 were $51.2 million, compared to $50.9 million in the third quarter of 2005, an increase of 0.6 percent, and $43.7 million in the fourth quarter of 2004, an increase of 17.2 percent. For fiscal year 2005, Align reported revenues of $207.1 million, compared to $172.8 million for fiscal year 2004, an increase of 19.8 percent.
"We are pleased with our results for 2005," stated Thomas M. Prescott, Align Technology's President and CEO. "Revenues were up 20 percent and case volumes grew by 23 percent. We continued to provide value for our customers through our national advertising campaign, new products and software, superb clinical education events, and new pricing initiatives. In 2006, we will continue our strategy of ensuring product leadership, being responsive to our customers' needs, and improving operational effectiveness across the company. Delivering on this strategy, combined with our superior value proposition for customers, will enhance shareholder value."
The net profit for the fourth quarter of 2005, as reported on a GAAP basis, was $528 thousand, or earnings per share (EPS) of $0.01. This compares to GAAP net profit of $1.1 million for the fourth quarter of 2004, or EPS of $0.02 per share. For comparison purposes, this also compares to a non-GAAP net profit of $1.3 million for the fourth quarter of 2004 or non-GAAP EPS of $0.02. Non-GAAP net profit excludes the effects of stock-based compensation.
For fiscal year 2005, the net profit was $1.4 million, or EPS of $0.02. This compares to a GAAP net profit of $8.8 million for fiscal year 2004, or EPS of $0.14 per share. For comparison purposes, this also compares to a non-GAAP net profit of $14.4 million for fiscal year 2004, or EPS of $0.22. The reconciliation of the GAAP to non-GAAP measurements for net profit and EPS is set forth below within Align Technology's financial statements.
As of December 31, 2005, Align had $74.4 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, January 25, 2006 at 10:00 a.m. EST, 7:00 a.m. PST, to review the fourth quarter and fiscal year 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 remain available through 5:30 p.m. EST on January 24, 2007. Additionally, a telephonic replay of the call can be accessed by dialing 877-660-6853 with account number 292 followed by # and conference number 151235 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. EST on January 31, 2006.
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.
Forward-Looking Statements
This news release contains forward-looking statements, including statements regarding Align's statement that it will continue to execute its strategy of ensuring product leadership, responsiveness to customer needs and producing high quality products and that delivering on this strategy will enhance shareholder value. 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, customer demand for Invisalign, acceptance of Invisalign by consumers and dental professionals, Align's third party manufacturing processes and personnel, foreign operational, political and other risks relating to Align's international manufacturing operations, Align's ability to protect its intellectual property rights, competition from manufacturers of traditional braces and new competitors, such as OrthoClear, Align's ability to develop and successfully introduce new products, and the loss of key personnel, including members of its direct sales force. 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 9, 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.
408-470-1000 678-417-1767
investorinfo@aligntech.com shannon@ethoscommunication.com
ALIGN TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2005 2004 2005 2004
(in thousands, except
per share data)
Revenues $51,164 $43,655 $207,125 $172,830
Cost of revenues 16,711 14,961 63,784 57,526
Gross profit 34,453 28,694 143,341 115,304
Operating expenses:
Sales and marketing 18,570 15,377 80,068 55,932
General and administrative 11,293 8,655 42,242 33,851
Research and development 3,927 4,006 18,585 15,756
Total operating expenses 33,790 28,038 140,895 105,539
Profit from operations 663 656 2,446 9,765
Interest and other income
(expense), net 255 616 283 (3)
Provision for income taxes (390) (151) (1,316) (994)
Net profit $528 $1,121 $1,413 $8,768
Net profit per share
- basic $0.01 $0.02 $0.02 $0.15
- diluted $0.01 $0.02 $0.02 $0.14
Shares used in computing
net profit per share
- basic 62,045 60,744 61,644 59,963
- diluted 63,247 63,560 63,152 64,089
ALIGN TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
December 31, 2005 December 31, 2004
(in thousands)
ASSETS
Current assets:
Cash and cash equivalents $74,219 $69,659
Restricted cash 150 303
Accounts receivable, net 29,305 28,809
Inventories, net 2,930 2,852
Other current assets 4,982 5,211
Total current assets 111,586 106,834
Property and equipment, net 26,427 21,702
Other long-term assets 4,097 2,176
Total assets $142,110 $130,712
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,489 $3,361
Accrued liabilities 29,372 23,481
Deferred revenue 16,747 16,257
Debt obligations, current portion -- 1,849
Total current liabilities 48,608 44,948
Other long term liabilities 64 25
Total liabilities 48,672 44,973
Total stockholders' equity 93,438 85,739
Total liabilities and
stockholders' equity $142,110 $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 Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2005 2004 2005 2004
(in thousands, except
per share data)
Revenues $51,164 $43,655 $207,125 $172,830
Cost of revenues 16,711 14,922 63,784 56,632
Gross profit 34,453 28,733 143,341 116,198
Operating expenses:
Sales and marketing 18,570 15,361 80,062 55,281
General and administrative 11,293 8,527 42,236 31,115
Research and development 3,927 3,975 18,585 14,423
Total operating expenses 33,790 27,863 140,883 100,819
Profit from operations 663 870 2,458 15,379
Interest and other income
(expense), net 255 616 283 (3)
Provision for income taxes (390) (151) (1,316) (994)
Net profit $528 $1,335 $1,425 $14,382
Net profit per share
- basic $0.01 $0.02 $0.02 $0.24
- diluted $0.01 $0.02 $0.02 $0.22
Shares used in computing net profit
per share
- basic 62,045 60,744 61,644 59,963
- diluted 63,247 63,560 63,152 64,089
ALIGN TECHNOLOGY, INC.
RECONCILIATION OF GAAP NET PROFIT TO ADJUSTED NON-GAAP NET PROFIT
(unaudited)
Three Months Ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2005 2004 2005 2004
(in thousands)
Calculation of non-GAAP
net profit excluding
special items:
Net profit $528 $1,121 $1,413 $8,768
Items:
Stock-based compensation
expense included in: (1)
- cost of revenues -- 39 -- 894
- sales and marketing -- 16 6 651
- general and administrative -- 128 6 2,736
- research and development -- 31 -- 1,333
Non-GAAP net profit excluding
special items $528 $1,335 $1,425 $14,382
(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.
SOURCE Align Technology, Inc.
investors, Barbara Domingo of Align Technology, Inc., +1-408-470-1000, or investorinfo@aligntech.com; or media, Shannon Henderson of Ethos Communications, Inc., +1-678-417-1767, or shannon@ethoscommunication.com, for Align Technology, Inc.http://www.prnewswire.com
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