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) October 24, 2007
ALIGN
TECHNOLOGY, INC.
(Exact
Name of Registrant as Specified in Its Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
|
0-32259
|
94-3267295
|
|
(Commission
File Number)
|
(IRS
Employer Identification No.)
|
|
881
Martin Avenue, Santa Clara, California
|
95050
|
|
|
(Address
of Principal Executive Offices)
|
(Zip
Code)
|
(408)
470-1000
(Registrant’s Telephone Number, Including Area Code)
Not
applicable
(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):
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
ITEM
2.02 RESULTS
OF OPERATIONS AND FINANCIAL CONDITIONS
On
October 24, 2007, Align Technology, Inc. ("Align") is issuing a press release
and holding a conference call regarding its financial results for its third
quarter ended September 30, 2007. 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 the attached press release to the comparable GAAP financial measures is
contained in the attached press release and a reconciliation of these and
certain other non-GAAP financial information provided on the conference call
(to
the extent not reconciled on such call) is contained on the Investor Relations
section of our website at investor.aligntech.com.
ITEM
9.01 Financial Statements and Exhibits
(d)
Exhibits
|
Exhibit
No.
|
Description
|
|
99.1
|
Press
Release of Align Technology, Inc. dated October 24,
2007
|
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:
October 24, 2007
|
ALIGN
TECHNOLOGY,
INC.
|
|
|
By:
|
/s/
Eldon M. Bullington
|
|
|
Eldon
M. Bullington
|
||
|
Vice
President, Finance and Chief Financial
Officer
|
||
INDEX
TO EXHIBITS
|
Exhibit
No.
|
Description
|
|
99.1
|
Press
Release of Align Technology, Inc. dated October 24,
2007
|
 |
 |
FOR
RELEASE ON OCTOBER 24 AT 4:01 PM EASTERN TIME
|
Investor
Relations Contact
|
Press
Contact
|
|
Shirley
Stacy
|
Shannon
Mangum Henderson
|
|
Align
Technology, Inc.
|
Ethos
Communication, Inc.
|
|
(408)
470-1150
|
(678)
540-9222
|
|
sstacy@aligntech.com
|
align@ethoscommunication.com
|
Align
Technology Announces Third Quarter 2007 Results
Revenues
Increase 46% Year Over Year
|
·
|
Q3
Revenues of $71.5 Million Increase 46 Percent Year Over
Year
|
|
·
|
Q3
GAAP Net Profit of $9.5 Million, or $0.13 per diluted
share
|
|
·
|
Case
Shipments of 52,050 Increase 46 Percent Year Over
Year
|
Santa
Clara, Calif. - October 24, 2007 - Align Technology, Inc. (Nasdaq: ALGN) today
reported financial results for the third quarter, ended September 30, 2007.
Total revenues for the third quarter of 2007 (Q3 07) were $71.5 million. This
reflects a year-over-year increase of 46 percent compared to $49.0 million
in
the third quarter of 2006 (Q3 06). On a sequential basis revenues decreased
7
percent in a seasonally slower quarter, compared to $76.6 million in the second
quarter of 2007 (Q2 07). As disclosed previously, Q2 07 revenues of $76.6
million included $5.2 million in backlog shipments caused by the allocation
of
capacity to the Patients First Program during prior quarters.
“I’m
pleased with the financial results for the third quarter with revenue growth
of
46 percent year over year and EPS four cents higher than expectations. Continued
improvement from operations and stable ASPs resulted in stronger than expected
gross margin of 74.6 percent,” said Thomas M. Prescott, president and CEO of
Align Technology. “We continue to see strong consumer interest for the
Invisalign system and demand for doctor certification remains high.”
On
a
generally accepted accounting principles (GAAP) basis, net profit for Q3 07
was
$9.5 million, or $0.13 per diluted share. This reflects a significant increase
from a GAAP net loss of $10.3 million, or $0.16 loss per diluted share in Q3
06,
and a decrease in GAAP net profit from $13.6 million, or $0.19 per diluted
share
in Q2 07.
Non-GAAP
net profit for Q3 07 was $12.6 million or $0.17 per diluted share. This reflects
a significant increase from a non-GAAP net loss of $8.0 million, or $0.13 loss
per diluted share in Q3 06, and a decrease in non-GAAP net profit from $16.5
million, or $0.23 per diluted share in Q2 07. Non-GAAP financial measures should
be considered in addition to results prepared in accordance with GAAP, but
should not be considered a substitute for, or superior to, GAAP results. A
detailed reconciliation between GAAP and non-GAAP information is contained
in
the tables included below.
Q3
07 Operating Results
|
Key
GAAP Operating Results
|
Q3
07
|
Q2
07
|
Q3
06
|
|
Gross
Margin
|
74.6%
|
73.6%
|
65.8%
|
|
Operating
Expense
|
$44.9M
|
$42.9M
|
$43.2M
|
|
Net
Profit (Loss)
|
$9.5M
|
$13.6M
|
($10.3M)
|
|
Earnings
(Loss) Per Diluted Share (EPS)
|
$0.13
|
$0.19
|
($0.16)
|
|
Key
Non-GAAP Operating Results
|
Q3
07
|
Q2
07
|
Q3
06
|
|
Non-GAAP
Gross Margin
|
75.0%
|
73.8%
|
66.1%
|
|
Non-GAAP
Operating Expense
|
$41.8M
|
$40.3M
|
$41.1M
|
|
Non-GAAP
Net Profit (Loss)
|
$12.6M
|
$16.5M
|
($8.0M)
|
|
Non-GAAP
Earnings (Loss) Per Diluted Share
|
$0.17
|
$0.23
|
($0.13)
|
Liquidity
and Capital Resources
As
of
September 30, 2007, Align had $110.0 million in cash, cash equivalents,
marketable securities and restricted cash, compared to $64.1 million as of
December 31, 2006.
Key
Business Metrics
The
following table highlights business metrics for Align’s third quarter of 2007.
Additional historical information is available on the Company’s website at
http://investor.aligntech.com.
|
Revenue
by Channel:
|
Q3
07
|
Q3’07/Q2’07
%
Change
|
Q3’07/Q3’06
%
Change
|
|
U.S.
Orthodontists
|
$22.5
million
|
(9.9%)
|
38.5%
|
|
U.S.
GP Dentists
|
$34.8
million
|
(4.3%)
|
53.4%
|
|
International
|
$11.6
million
|
(0.0%)
|
58.6%
|
|
Training
and Other
|
$
2.6 million
|
(28.2%)
|
(7.3%)
|
|
Total
Revenue
|
$71.5
million
|
(6.7%)
|
45.7%
|
|
Average
Selling Price (ASP) :
|
Q3
07
|
Q3’07/Q2’07
%
Change
|
Q3’07/Q3’06
%
Change
|
|
Total
Worldwide Blended ASP
|
$1,320
|
(0.3%)
|
2.2%
|
|
Total
Worldwide ASP excluding Invisalign Express
|
$1,430
|
(0.4%)
|
(3.9%)
|
|
U.S.
Orthodontists Blended ASP
|
$1,230
|
(0.5%)
|
(2.0%)
|
|
U.S.
GP Dentists Blended ASP
|
$1,310
|
(0.0%)
|
6.0%
|
|
International
|
$1,580
|
(2.8%)
|
(3.2%)
|
|
Number
of Cases Shipped:
|
Q3
07
|
Q3’07/Q2’07
%
Change
|
Q3’07/Q3’06
%
Change
|
|
U.S.
Orthodontists - Full Invisalign
|
15,150
|
(10.0%)
|
58.7%
|
|
U.S.
Orthodontists - Invisalign Express
|
3,100
|
(6.9%)
|
(8.1%)
|
|
U.S.
GP Dentists - Full Invisalign
|
21,900
|
(3.9%)
|
74.8%
|
|
U.S.
GP Dentists - Invisalign Express
|
4,600
|
(6.5%)
|
(20.4%)
|
|
International-
Full Invisalign
|
7,200
|
1.8%
|
66.1%
|
|
International-
Invisalign Express
|
100
|
17.1%
|
(6.5%)
|
|
Total
Cases Shipped
|
52,050
|
(5.4%)
|
45.8%
|
-2-
|
Number
of Doctors Cases were Shipped to:
|
Q3
07
|
||
|
U.S.
Orthodontists
|
3,710
|
||
|
U.S.
GP Dentists
|
10,200
|
||
|
International
|
2,330
|
||
|
Total
Doctors Cases were Shipped to Worldwide
|
16,240
|
||
|
Number
of Doctors Trained Worldwide:
|
Q3
07
|
Cumulative
|
|
|
U.S.
Orthodontists
|
90
|
8,230
|
|
|
U.S.
GP Dentists
|
1,220
|
25,980
|
|
|
International
|
260
|
11,840
|
|
|
Total
Doctors Trained Worldwide
|
1,570
|
46,050
|
|
|
Multiple
Case Doctors (Cumulative as of):
|
Q3
07
|
||
|
U.S.
Orthodontists
|
89.1%
|
||
|
U.S.
GP Dentists
|
87.3%
|
||
|
International
|
75.7%
|
||
|
Doctors
Starting Invisalign Treatment (Cumulative as of):
|
Q3
07
|
||
|
U.S.
Orthodontists
|
6,600
|
||
|
U.S.
GP Dentists
|
20,480
|
||
|
International
|
6,240
|
||
|
Total
Doctors Starting Invisalign Treatment
|
33,320
|
||
|
Doctor
Utilization Rates*:
|
Q3
07
|
Q2
07
|
Q3
06
|
|
U.S.
Orthodontists
|
4.9
|
5.3
|
4.7
|
|
U.S.
GP Dentists
|
2.6
|
2.7
|
2.5
|
|
International
|
3.1
|
3.1
|
2.7
|
|
Total
Utilization Rate
|
3.2
|
3.4
|
3.0
|
|
*Utilization
= # of cases/# of doctors cases were shipped to
|
Business
Outlook
For
the
fourth quarter 2007 (Q4 07), Align Technology expects revenues to increase
26 to
31 percent year over year and be in a range of $69.5 million and $72.2 million.
GAAP earnings per diluted share for Q4 07 is expected to be in a range of $0.06
and $0.09. Non-GAAP earnings per diluted share for Q4 07 is expected to be
in a
range of $0.11 and $0.13.
For
fiscal 2007, Align Technology expects revenues to increase 36 to 38 percent
year
over year and be in a range of $281.3 and $284.0 million. GAAP earnings per
diluted share for fiscal 2007 is expected to be in a range of $0.49 and $0.51.
Non-GAAP earnings per diluted share for fiscal 2007 is expected to be in a
range
of $0.63 and $0.65.
A
more
comprehensive business outlook, including a reconciliation of GAAP to Non-GAAP
financial measures, is available following the financial tables of this
release.
Align
Webcast and Conference Call
Align
Technology will host a conference call today, October 24, 2007 at 4:30 p.m.
ET,
1:30 p.m. PT, to review its third quarter 2007 results, discuss future operating
trends and business outlook. The conference call will also be webcast live
via
the Internet. To access the webcast, 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 201-689-8341 approximately fifteen
minutes prior to the start of the call. If you are unable to listen to the
call,
an archived webcast 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 account number 292 followed by # and conference number 227480
followed by #. The replay must 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.
ET
on November 7, 2007.
-3-
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 http://www.invisalign.com
or call
1-800-INVISIBLE.
About
non-GAAP Financial Measures
To
supplement our consolidated financial statements, which are prepared and
presented in accordance with generally accepted accounting principals (GAAP),
we
use the following non-GAAP financial measures: non-GAAP gross profit, gross
margin, profit (loss) from operations, net profit (loss), earnings (loss) per
share, and operating expenses, which exclude stock-based compensation. 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. For more information on these
non-GAAP financial measures, please see the tables captioned “Reconciliation of
GAAP to Non-GAAP Condensed Consolidated Statements of Operations” and “Business
Outlook Summary” included at the end of this release.
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 expenses and expenditures that may not
be indicative of our operating performance including not only non-cash charges,
such as stock-based compensation, but also discrete 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 help them analyze the health of our
business.
-4-
Forward-Looking
Statement
This
news
release, including the tables below, contain forward-looking statements,
including statements regarding Align's anticipated financial results and certain
business metrics for the fourth quarter and full year of 2007, including
anticipated revenue, gross profit, gross margin, operating expense, net profit,
earnings per share, percentage of revenue by channel, case shipments and average
selling prices. 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, risks relating to Align's ability
to
sustain or increase profitability or revenue growth in future periods while
controlling expenses, continued customer demand for Invisalign, the timing
of
case submissions from our doctors within a quarter, 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, Align's ability to develop and successfully
introduce new products and product enhancements, 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, 2006, which was filed with the
Securities and Exchange Commission on March 12, 2007, and its Quarterly Reports
on Form 10-Q. Align undertakes no obligation to revise or update publicly any
forward-looking statements for any reason.
#
#
#
-5-
ALIGN
TECHNOLOGY, INC.
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in
thousands, except per share data)
|
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||
|
September
30,
|
September
30,
|
September
30,
|
September
30,
|
||||||||||
|
2007
|
2006
|
2007
|
2006
|
||||||||||
|
Revenues
|
$
|
71,451
|
$
|
49,034
|
$
|
211,815
|
$
|
151,163
|
|||||
|
Cost
of revenues
|
18,132 | 16,789 | 55,908 | 47,578 | |||||||||
|
Gross
profit
|
53,319 | 32,245 | 155,907 | 103,585 | |||||||||
|
Operating
expenses:
|
|||||||||||||
|
Sales
and marketing
|
24,226 | 19,165 | 71,729 | 59,872 | |||||||||
|
General
and administrative
|
13,949 | 19,238 | 38,014 | 49,656 | |||||||||
|
Research
and development
|
6,749 | 4,807 | 19,117 | 13,526 | |||||||||
|
Patients
First Program
|
- | - | (1,796 | ) | - | ||||||||
|
Total
operating expenses
|
44,924 | 43,210 | 127,064 | 123,054 | |||||||||
|
Profit
(loss) from operations
|
8,395 | (10,965 | ) | 28,843 | (19,469 | ) | |||||||
|
Interest
and other income, net
|
1,108 | 854 | 2,243 | 2,393 | |||||||||
|
Profit
(loss) before income taxes
|
9,503 | (10,111 | ) | 31,086 | (17,076 | ) | |||||||
|
Provision
for income taxes
|
(43 | ) | (209 | ) | (1,030 | ) | (618 | ) | |||||
|
Net
profit (loss)
|
$ | 9,460 |
$
|
(10,320
|
)
|
$
|
30,056
|
$
|
(17,694
|
)
|
|||
|
Net
profit (loss) per share
|
|||||||||||||
|
-
basic
|
$ | 0.14 |
$
|
(0.16
|
)
|
$ | 0.45 |
$
|
(0.28
|
)
|
|||
|
-
diluted
|
$ | 0.13 |
$
|
(0.16
|
)
|
$ | 0.42 |
$
|
(0.28
|
)
|
|||
|
Shares
used in computing net profit (loss) per share
|
|||||||||||||
|
-
basic
|
67,970 | 63,230 | 66,709 | 62,907 | |||||||||
|
-
diluted
|
72,230 | 63,230 | 71,058 | 62,907 | |||||||||
-6-
ALIGN TECHNOLOGY, INC.
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(in
thousands)
|
September
30, 2007
|
December
31, 2006
|
||||||
|
ASSETS
|
|||||||
|
Current
assets:
|
|||||||
|
Cash
and cash equivalents
|
$
|
87,969
|
$
|
55,113
|
|||
|
Restricted
cash
|
20
|
93
|
|||||
|
Marketable
securities, short-term
|
22,022
|
8,931
|
|||||
|
Accounts
receivable, net
|
46,002
|
33,635
|
|||||
|
Inventories,
net
|
3,542
|
3,090
|
|||||
|
Other
current assets
|
7,592
|
7,227
|
|||||
|
Total
current assets
|
167,147
|
108,089
|
|||||
|
Property
and equipment, net
|
26,014
|
26,904
|
|||||
|
Goodwill
and intangible assets, net
|
11,802
|
14,302
|
|||||
|
Other
long-term assets
|
1,931
|
2,263
|
|||||
|
Total
assets
|
$
|
206,894
|
$
|
151,558
|
|||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||
|
Current
liabilities:
|
|||||||
|
Line
of credit
|
$
|
-
|
$
|
11,500
|
|||
|
Accounts
payable
|
6,344
|
5,034
|
|||||
|
Accrued
liabilities
|
36,706
|
40,307
|
|||||
|
Deferred
revenue
|
12,942
|
10,942
|
|||||
|
Total
current liabilities
|
55,992
|
67,783
|
|||||
|
Other
long term liabilities
|
195
|
219
|
|||||
|
Total
liabilities
|
56,187
|
68,002
|
|||||
|
Total
stockholders' equity
|
150,707
|
83,556
|
|||||
|
Total
liabilities and stockholders' equity
|
$
|
206,894
|
$
|
151,558
|
|||
-7-
ALIGN
TECHNOLOGY, INC.
RECONCILIATION
OF GAAP TO NON-GAAP
|
Reconciliation
of GAAP to Non-GAAP Gross Profit
|
||||||||||
|
(in
thousands, except percentages)
|
|
Three
Months Ended
|
||||||||||
|
September
30,
|
June
30,
|
September
30,
|
||||||||
|
2007
|
2007
|
2006
|
||||||||
|
GAAP
Gross profit
|
$
|
53,319
|
$
|
56,356
|
$
|
32,245
|
||||
|
Stock
based compensation expense
|
259 | 210 | 186 | |||||||
|
Non-GAAP
Gross profit
|
$
|
53,578
|
$
|
56,566
|
$
|
32,431
|
||||
|
Non-GAAP
Gross margin
|
75.0 | % | 73.8 | % | 66.1 | % | ||||
|
Reconciliation
of GAAP to Non-GAAP Operating Expenses
|
||||||||||
|
(in
thousands)
|
|
Three
Months Ended
|
||||||||||
|
September
30,
|
June
30,
|
September
30,
|
||||||||
|
2007
|
2007
|
2006
|
||||||||
|
GAAP
Operating expenses
|
$
|
44,924
|
$
|
42,908
|
$
|
43,210
|
||||
|
Stock
based compensation expense
|
3,129 | 2,655 | 2,091 | |||||||
|
Non-GAAP
Operating expenses
|
$
|
41,795
|
$
|
40,253
|
$
|
41,119
|
|
Reconciliation
of GAAP to Non-GAAP Net Profit (Loss)
|
||||||||||
|
(in
thousands, except per share
amounts)
|
|
Three
Months Ended
|
||||||||||
|
September
30,
|
June
30,
|
September
30,
|
||||||||
|
2007
|
2007
|
2006
|
||||||||
|
GAAP
Net profit (loss)
|
$
|
9,460
|
$
|
13,618
|
$
|
(10,320
|
)
|
|||
|
Stock
based compensation expense
|
3,388 | 2,865 | 2,277 | |||||||
|
Tax
effect of stock based compensation expense
|
(261 | ) | (33 | ) | - | |||||
|
Non-GAAP
Net profit (loss)
|
$
|
12,587
|
$
|
16,450
|
$
|
(8,043
|
)
|
|||
|
Diluted
Net profit (loss) per share:
|
||||||||||
|
GAAP
|
$ | 0.13 |
$
|
0.19
|
$
|
(0.16
|
)
|
|||
|
Non-GAAP
|
$ | 0.17 |
$
|
0.23
|
$
|
(0.13
|
)
|
|||
|
Shares
used in computing diluted net profit (loss) per share
|
72,230 | 71,207 | 63,230 |
|
Summary
of Stock Based Compensation Expense
|
||||||||||
|
(in
thousands)
|
|
Three
Months Ended
|
||||||||||
|
September
30,
|
June
30,
|
September
30,
|
||||||||
|
2007
|
2007
|
2006
|
||||||||
|
Cost
of revenues
|
$ | 259 |
$
|
210
|
$
|
186
|
||||
|
Sales
and marketing
|
1,301 |
898
|
714 | |||||||
|
General
and administrative
|
1,403 |
1,429
|
1,015 | |||||||
|
Research
and development
|
425 |
328
|
362 | |||||||
|
Total
stock based compensation expense
|
$
|
3,388
|
$
|
2,865
|
$
|
2,277
|
-8-
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
(including reconciliation of GAAP to non-GAAP financial
measures)
(in
millions, except per share amounts and percentages)
|
GAAP
|
Adjustment
|
Non-GAAP
|
|||||||||||
|
Revenue
|
|||||||||||||
|
Q4
2007
|
$
|
69.5
- $72.2
|
-
|
$
|
69.5
- $72.2
|
||||||||
|
FY
2007
|
$
|
281.3
- $284.0
|
-
|
$
|
281.3
- $284.0
|
||||||||
|
Gross
Profit
|
|||||||||||||
|
Q4
2007
|
$
|
50.4
- $52.8
|
$
|
0.3
|
(a
|
)
|
$
|
50.7
- $53.1
|
|||||
|
FY
2007
|
$
|
206.3
- $208.7
|
$
|
1.0
|
(a
|
)
|
$
|
207.3
- $209.7
|
|||||
|
Gross
Margin
|
|||||||||||||
|
Q4
2007
|
72.5%
- 73.1
|
%
|
0.4%
- 0.5
|
%
|
(a
|
)
|
73.0%
- 73.5
|
%
|
|||||
|
FY
2007
|
73.3%
- 73.5
|
%
|
0.3%
- 0.4
|
%
|
(a
|
)
|
73.7%
- 73.8
|
%
|
|||||
|
Operating
Expenses
|
|||||||||||||
|
Q4
2007
|
$
|
46.4
- $47.3
|
$
|
3.0
- $3.1
|
(a
|
)
|
$
|
43.3
- $44.3
|
|||||
|
FY
2007
|
$
|
173.5
- $174.4
|
$
|
9.4
|
(a),(b
|
)
|
$
|
164.1
- $165.0
|
|||||
|
Net
Profit
|
|||||||||||||
|
Q4
2007
|
$
|
4.7
- $6.3
|
$
|
3.4
|
(a),(c
|
)
|
$
|
8.1
- $9.7
|
|||||
|
FY
2007
|
$
|
34.8
- $36.4
|
$
|
10.0
|
(a),(b),(c
|
)
|
$
|
44.8
- $46.4
|
|||||
|
Net
Profit per Diluted Share
|
|||||||||||||
|
Q4
2007
|
$
|
0.06
- $0.09
|
$
|
0.04
- $0.05
|
$
|
0.11
- $0.13
|
|||||||
|
FY
2007
|
$
|
0.49
- $0.51
|
$
|
0.14
|
$
|
0.63
- $0.65
|
|||||||
(a)
Non-cash stock-based compensation
(b)
Includes Patient First Program credit of $1.8 million
(c)
Tax
impacts on Non-GAAP adjustments.
|
Business
Metrics
|
|||||||
|
4Q
2007
|
|
FY
2007
|
|
||||
|
Channel
as a % of Revenue
|
|||||||
|
U.S.
Orthodontists - Full
|
28
|
%
|
29
|
%
|
|||
|
U.S.
GP Dentists - Full
|
42
|
%
|
43
|
%
|
|||
|
International
Invisalign
|
17
|
%
|
16
|
%
|
|||
|
Invisalign
Express
|
8
|
%
|
8
|
%
|
|||
|
Training/Other
|
4
|
%
|
4
|
%
|
|||
|
Case
Shipments
|
50K
- 52K
|
202.1K
- 204.1K
|
|||||
|
Blended
ASP, excl Express
|
|
$1,430
|
$1,430
|
||||
|
Blended
ASP, incl Express
|
|
$1,330
|
$1,330
|
||||
|
Cash
|
|
$115
- $120
|
$115
- $120
|
||||
|
DSO
|
~56
days
|
~56
days
|
|||||
|
Capex
|
|
$8.0M
- $10.0M
|
|||||
|
Depreciation
& Amortization
|
$13.0M
- $14.0M
|
||||||
-9-