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) July 29, 2008
|
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
July
29, 2008, Align Technology, Inc. ("Align") is issuing a press release and
holding a conference call regarding its financial results for its second quarter
ended June 30, 2008. 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 July 29,
2008
|
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:
July 29, 2008
|
ALIGN TECHNOLOGY, INC. | |
| By: |
/s/Kenneth
B. Arola
|
|
|
Kenneth
B. Arola
|
||
|
Vice
President, Finance and Chief Financial
Officer
|
||
INDEX
TO EXHIBITS
|
Exhibit
No.
|
Description
|
|
99.1
|
Press
Release of Align Technology, Inc. dated July 29,
2008
|
|
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 Second Quarter Fiscal 2008 Results
|
·
|
Record
Q2 net revenues of $79.9 million increase 6.9 percent
sequentially
|
|
·
|
Q2
GAAP net profit of $4.0 million, or $0.06 per diluted
share
|
|
·
|
Case
shipments of 54,870 increase 6.0 percent
sequentially
|
|
·
|
Initiating
cost-saving measures including a workforce
reduction
|
SANTA
CLARA, Calif., July 29, 2008 / — Align Technology, Inc. (Nasdaq: ALGN)
today reported financial results for the second quarter of fiscal 2008, ended
June 30, 2008.
Total
net
revenues for the second quarter of fiscal 2008 (Q2 08) were a record $79.9
million. This reflects a year-over-year increase of 4.3 percent compared to
$76.6 million in the second quarter of 2007 (Q2 07). On a sequential basis,
net
revenues increased 6.9 percent from $74.8 million in the first quarter of 2008
(Q1 08). Q2 07 shipments included approximately four thousand cases and revenue
of $5.2 million from the reduction in backlog and cycle times caused by the
allocation of capacity to the Patients First Program during the fourth quarter
of 2006 and the first quarter of 2007.
“I’m
pleased with our solid performance in the second quarter despite an ever more
challenging economic environment for our doctors and their patients,” said
Thomas M. Prescott, president and CEO of Align Technology. “During the second
quarter, we continued to execute on our strategic initiatives including today’s
launch of Invisalign Teen following the successful pilot of the
product.”
Net
profit for Q2 08 was $4.0 million, or $0.06 per diluted share. This is compared
to net profit of $13.6 million, or $0.19 per diluted share in Q2 07, and net
profit of $5.3 million, or $0.07 per diluted share in Q1 08. Stock-based
compensation expense included in Q2 08 net profit was $4.8 million, compared
to
$2.9 million in Q2 07, and $4.0 million in Q1 08.
The
Company also announced measures to reduce operating expenses.
Align
Technology Inc. 881 Martin Avenue Santa Clara, CA 95050 Tel: (408) 470-1000
Fax:
(408) 470-1201
Align
Technology, Inc. Q2 Fiscal 2008 Earnings Release
Prescott
said, “As consumer spending has continued to soften, so has our outlook for
revenue growth. As a result, we’re reducing overall company spending and slowing
headcount growth while preserving the important investments in strategic
priorities. Unfortunately, valued employees will be affected, and those are
decisions that the management team and I do not take lightly. These actions
are
only the first steps in actively reducing our cost structure and moving towards
a financial model with greater operating leverage.”
The
cost-saving measures include: a reduction in full time headcount of 38, slowing
headcount growth for the remainder of 2008, and cuts in discretionary spending.
These actions will reduce expenses in the second half of 2008 by approximately
$5 million to $6 million. In addition, the company is implementing a phased
consolidation of its order acquisition operations in Santa Clara, California
into its existing operations in Juarez, Mexico by the end of 2008. Upon
completion, 29 positions in Santa Clara will be eliminated, resulting in
annualized cost savings of approximately $1.0 to $1.5 million in 2009. As part
of these actions, Align will record a restructuring charge estimated to be
approximately $2.6 million in the second half of fiscal 2008, of which
approximately $2.2 million will be realized in Q3 08. At the end of Q2 08,
Align
had a regular employee base of approximately 1,400 worldwide.
Q2
08 Operating Results
|
Key GAAP Operating Results
|
Q2 08
|
Q1 08
|
Q2 07
|
|||||||
|
Gross
Margin
|
74.7
|
%
|
73.8
|
%
|
73.6
|
%
|
||||
|
Operating
Expense
|
$
|
55.8M
|
$
|
50.5M
|
$
|
42.9M
|
||||
|
Operating
Margin
|
4.8
|
%
|
6.2
|
%
|
17.6
|
%
|
||||
|
Net
Profit
|
$
|
4.0M
|
$
|
5.3M
|
$
|
13.6M
|
||||
|
Earnings
Per Diluted Share (EPS)
|
$
|
0.06
|
$
|
0.07
|
$
|
0.19
|
||||
Liquidity
and Capital Resources
As
of
June 30, 2008, Align had $110.1 million in cash, cash equivalents, and short
term marketable securities compared to $127.9 million as of December 31,
2007. During
Q2
08, Align purchased 2.2 million shares at an average price of $12.65 per share
for a total of $27.7 million. There remains $22.3 million under the Company’s
existing stock repurchase authorization.
Key
Business Metrics
The
following table highlights business metrics for Align’s second quarter of 2008.
Additional historical information is available on the Company’s website at
http://investor.aligntech.com.
|
Revenue by Channel:
|
Q2 08
|
Q2’08/Q1’08
% Change
|
Q2’08/Q2’07
% Change (a)
|
|||||||
|
U.S.
Orthodontists
|
$
|
23.3M
|
2.1
|
%
|
(6.7
|
)%
|
||||
|
U.S.
GP Dentists
|
$
|
36.6M
|
5.2
|
%
|
0.6
|
%
|
||||
|
International
|
$
|
16.4M
|
15.8
|
%
|
41.3
|
%
|
||||
|
Training
and Other
|
$
|
3.6M
|
20.2
|
%
|
(1.1
|
)%
|
||||
|
Total
Revenue
|
$
|
79.9M
|
6.9
|
%
|
4.3
|
%
|
||||
-
2
-
Align
Technology, Inc. Q2 Fiscal 2008 Earnings Release
|
Average Selling Price (ASP):
|
Q2 08
|
Q2’08/Q1’08
% Change
|
Q2’08/Q2’07
% Change
|
|||||||
|
Total Worldwide Blended ASP
|
$
|
1,390
|
0.7
|
%
|
4.5
|
%
|
||||
|
Total Worldwide
ASP excluding Invisalign Express
|
$
|
1,500
|
(0.7
|
)%
|
4.9
|
%
|
||||
|
U.S.
Orthodontists Blended ASP
|
$
|
1,290
|
(0.8
|
)%
|
4.9
|
%
|
||||
|
U.S.
GP Dentists Blended ASP
|
$
|
1,340
|
0.0
|
%
|
2.3
|
%
|
||||
|
International
|
$
|
1,700
|
0.0
|
%
|
4.3
|
%
|
||||
|
Number of Cases Shipped:
|
Q2 08
|
Q2’08/Q1’08
% Change
|
Q2’08/Q2’07
% Change (a)
|
|||||||
|
U.S.
Orthodontists – Full Invisalign
|
14,830
|
2.3
|
%
|
(11.9
|
)%
|
|||||
|
U.S.
Orthodontists – Invisalign Express
|
3,250
|
5.2
|
%
|
(3.6
|
)%
|
|||||
|
U.S.
GP Dentists – Full Invisalign
|
22,140
|
5.9
|
%
|
(2.7
|
)%
|
|||||
|
U.S.
GP Dentists – Invisalign Express
|
4,970
|
0.4
|
%
|
1.2
|
%
|
|||||
|
International–
Full Invisalign
|
9,520
|
16.1
|
%
|
35.4
|
%
|
|||||
|
International–
Invisalign Express
|
160
|
23.1
|
%
|
45.5
|
%
|
|||||
|
Total
Cases Shipped
|
54,870
|
6.0
|
%
|
(0.3
|
)%
|
|||||
|
Number of Doctors Cases were Shipped to:
|
Q2 08
|
|||
|
U.S.
Orthodontists
|
3,730
|
|||
|
U.S.
GP Dentists
|
11,030
|
|||
|
International
|
2,910
|
|||
|
Total
Doctors Cases were Shipped to Worldwide
|
17,670
|
|
Number of Doctors Trained Worldwide:
|
Q2 08
|
Cumulative
|
|||||
|
U.S.
Orthodontists
|
100
|
8,510
|
|||||
|
U.S.
GP Dentists
|
1,630
|
30,260
|
|||||
|
International
|
600
|
13,340
|
|||||
|
Total
Doctors Trained Worldwide
|
2,330
|
52,110
|
|||||
|
Multiple Case Doctors (Cumulative as of):
|
Q2 08
|
|||
|
U.S.
Orthodontists
|
90.5
|
%
|
||
|
U.S.
GP Dentists
|
86.6
|
%
|
||
|
International
|
77.2
|
%
|
||
|
Doctors Starting Invisalign Treatment (Cumulative as of):
|
Q2 08
|
|||
|
U.S.
Orthodontists
|
6,920
|
|||
|
U.S.
GP Dentists
|
23,820
|
|||
|
International
|
7,390
|
|||
|
Total
Doctors Starting Invisalign Treatment
|
38,130
|
|||
|
Doctor Utilization Rates*:
|
Q2 08
|
Q1 08
|
Q2 07(a)
|
|||||||
|
U.S.
Orthodontists
|
4.9
|
4.8
|
5.3
|
|||||||
|
U.S.
GP Dentists
|
2.5
|
2.4
|
2.7
|
|||||||
|
International
|
3.3
|
3.2
|
3.1
|
|||||||
|
Total
Utilization Rate
|
3.1
|
3.1
|
3.4
|
|||||||
*
Utilization = # of cases/# of doctors to whom cases were shipped
(a)
Q2
07
shipments included approximately four thousand cases and revenue of $5.2 million
from the reduction in backlog and cycle times caused by the allocation of
capacity to the Patients First Program during the fourth quarter of 2006 and
the
first quarter of 2007
-
3
-
Align
Technology, Inc. Q2 Fiscal 2008 Earnings Release
Business
Outlook
For
the
third quarter of fiscal 2008 (Q3 08), Align Technology expects net revenues
to
be in a range of $74 million to $76 million. GAAP earnings per diluted share
for
Q3 08 is expected to be in a range of $0.01 to $0.03. Non-GAAP earnings per
diluted share for Q3 08 is expected to be in a range of $0.04 to $0.06.
Stock-based stock compensation expense for Q3 08 is expected to be approximately
$4.7 million.
For
fiscal 2008, Align Technology expects net revenues to be in a range of $309
million to $314 million. The increase in deferred revenue for fiscal 2008 is
expected to be in the range of $5 million to $8 million primarily associated
with new products, which will be recognized in future periods, bringing the
Company’s total deferred revenue balance at the end of 2008 to a range of $17
million to $20 million. GAAP earnings per diluted share for fiscal 2008 is
expected to be in a range of $0.26 to $0.30. Non-GAAP earnings per diluted
share
for fiscal 2008 is expected to be in a range of $0.29 to $0.33. Stock-based
compensation expense for fiscal 2008 is expected to be approximately $17.9
million.
A
more
comprehensive business outlook is available following the financial tables
of
this release.
Invisalign
Teen
In
a
separate announcement today Align also announced a new addition to its
Invisalign product family: Invisalign Teen for non-adult, comprehensive
orthodontic treatment. For more information, please see Align's press release
titled, " Align
Technology Targets Mainstream Orthodontics Market with Invisalign Teen."
Align
Web Cast and Conference Call
Align
Technology will host a conference call today, July 29, 2008 at 4:30 p.m. ET,
1:30 p.m. PT, to review its second quarter fiscal 2008 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 201-689-8341 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 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 289687
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 4:30 p.m.
ET
on August 12, 2008.
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.
-
4
-
Align
Technology, Inc. Q2 Fiscal 2008 Earnings Release
About
non-GAAP Financial Measures
To
supplement our business outlook, we use the following non-GAAP financial
measures: non-GAAP operating expenses, net profit (loss), earnings (loss) per
share, which excludes the restructuring charge. 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 “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 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 facilitate comparisons
with
prior and subsequent reporting periods.
Forward-Looking
Statement
This
news
release, including the tables below, contains forward-looking statements,
including statements regarding Align's anticipated amount of cost savings due
to
the cost-saving measures, the expected amount of and timing of the charges
to be
incurred in connection with these measures and Align’s anticipated financial
results and certain business metrics for the third quarter and full year of
2008, including anticipated revenue and deferred 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, failure to achieve the expected cost savings, including a delay
in
the implementation of the relocation of order acquisition to Mexico and greater
than anticipated costs resulting from the relocation, changes in the size of
the
expected restructuring charge, 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, continued customer demand for Invisalign and new products, changes
in
consumer spending habits as a result of, among other tings, 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
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. 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, 2007, which was filed with the Securities and Exchange
Commission on February 26, 2008. Align undertakes no obligation to revise or
update publicly any forward-looking statements for any reason.
-
5
-
Align
Technology, Inc. Q2 Fiscal 2008 Earnings Release
ALIGN
TECHNOLOGY, INC.
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in
thousands, except per share data)
|
|
Three Months Ended
|
Six Months Ended
|
|||||||||||
|
|
June 30, 2008
|
June 30, 2007
|
June 30, 2008
|
June 30, 2007
|
|||||||||
|
Net
revenues
|
$
|
79,902
|
$
|
76,603
|
$
|
154,678
|
$
|
140,364
|
|||||
|
Cost
of revenues
|
20,243
|
20,247
|
39,851
|
37,776
|
|||||||||
|
Gross
profit
|
59,659
|
56,356
|
114,827
|
102,588
|
|||||||||
|
Operating
expenses:
|
|||||||||||||
|
Sales
and marketing
|
32,464
|
24,353
|
60,523
|
47,503
|
|||||||||
|
General
and administrative
|
16,322
|
11,880
|
31,510
|
24,065
|
|||||||||
|
Research
and development
|
7,001
|
6,675
|
14,296
|
12,368
|
|||||||||
|
Patients
First Program
|
-
|
-
|
-
|
(1,796
|
)
|
||||||||
|
Total
operating expenses
|
55,787
|
42,908
|
106,329
|
82,140
|
|||||||||
|
Profit
from operations
|
3,872
|
13,448
|
8,498
|
20,448
|
|||||||||
|
Interest
and other income, net
|
443
|
680
|
1,409
|
1,135
|
|||||||||
|
Profit
before income taxes
|
4,315
|
14,128
|
9,907
|
21,583
|
|||||||||
|
Provision
for income taxes
|
(285
|
)
|
(510
|
)
|
(573
|
)
|
(987
|
)
|
|||||
|
Net
profit
|
$
|
4,030
|
$
|
13,618
|
$
|
9,334
|
$
|
20,596
|
|||||
|
Net
profit per share
|
|||||||||||||
|
-
basic
|
$
|
0.06
|
$
|
0.20
|
$
|
0.14
|
$
|
0.31
|
|||||
|
-
diluted
|
$
|
0.06
|
$
|
0.19
|
$
|
0.13
|
$
|
0.29
|
|||||
|
Shares
used in computing net profit per share
|
|||||||||||||
|
-
basic
|
68,581
|
66,696
|
68,817
|
66,068
|
|||||||||
|
-
diluted
|
69,916
|
71,207
|
70,478
|
70,346
|
|||||||||
-
6
-
Align
Technology, Inc. Q2 Fiscal 2008 Earnings Release
ALIGN
TECHNOLOGY, INC.
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(in
thousands)
|
June 30, 2008
|
December 31, 2007
|
||||||
|
ASSETS
|
|||||||
|
Current
assets:
|
|||||||
|
Cash
and cash equivalents
|
$
|
64,339
|
$
|
89,140
|
|||
|
Marketable
securities, short-term
|
45,723
|
38,771
|
|||||
|
Accounts
receivable, net
|
51,173
|
44,850
|
|||||
|
Inventories,
net
|
3,017
|
2,910
|
|||||
|
Other
current assets
|
10,132
|
8,846
|
|||||
|
Total
current assets
|
174,384
|
184,517
|
|||||
|
Property
and equipment, net
|
29,525
|
25,320
|
|||||
|
Goodwill
and intangible assets, net
|
9,675
|
11,093
|
|||||
|
Other
long-term assets
|
3,585
|
1,831
|
|||||
|
Total
assets
|
$
|
217,169
|
$
|
222,761
|
|||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||
|
Current
liabilities:
|
|||||||
|
Accounts
payable
|
$
|
8,965
|
$
|
9,222
|
|||
|
Accrued
liabilities
|
34,708
|
39,875
|
|||||
|
Deferred
revenues
|
14,144
|
12,362
|
|||||
|
Total
current liabilities
|
57,817
|
61,459
|
|||||
|
Other
long term liabilities
|
133
|
148
|
|||||
|
Total
liabilities
|
57,950
|
61,607
|
|||||
|
Total
stockholders' equity
|
159,219
|
161,154
|
|||||
|
Total
liabilities and stockholders' equity
|
$
|
217,169
|
$
|
222,761
|
|||
-
7
-
Align
Technology, Inc. Q2 Fiscal 2008 Earnings Release
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. This outlook excludes the effects of any stock
repurchases.
Financials
(including reconciliation of GAAP to non-GAAP financial
measures):
(in
millions, except per share amounts and percentages)
|
Q3
2008
|
FY
2008
|
||||||||||
|
GAAP
|
Adjustment
|
(a)
|
Non-GAAP
|
FY
2008
|
Adjustment
|
(a)
|
Non-GAAP
|
||||
|
Net
Revenue
|
$74.0 - $76.0
|
$74.0 - $76.0
|
$309.0 - $314.0
|
$309.0 - $314.0
|
|||||||
|
Gross Margin
|
73.6% - 74.4%
|
73.6% - 74.4%
|
73.7% - 74.2%
|
73.7% - 74.2%
|
|||||||
|
Operating
Expenses
|
$53.7
- $55.2
|
$2.2
|
(a)
|
$51.5
- $53.0
|
$210.8
- $213.8
|
$2.6
|
(a)
|
$208.2 - $211.2
|
|||
|
Net
Profit %
|
1%
-
2%
|
3%
|
4%
-
5%
|
6%
-
7%
|
1%
|
7%
-
8%
|
|||||
|
Net
Profit per Diluted Share
|
$0.01 - $0.03
|
$0.03
|
$0.04 - $0.06
|
$0.26 - $0.30
|
$0.03
|
$0.29 - $0.33
|
|||||
|
Stock
Based Compensation Expense:
|
|||||||||||
|
Cost
of Revenues
|
$0.4
|
$0.4
|
$1.7
|
$1.7
|
|||||||
|
Operating
Expenses
|
$4.3
|
$4.3
|
$16.2
|
$16.2
|
|||||||
|
Total
Stock Based Compensation Expense
|
$4.7
|
$4.7
|
$17.9
|
$17.9
|
|||||||
|
Increase
in Deferred Revenue
|
$5.0
- $8.0
|
$5.0
- $8.0
|
|||||||||
|
Total
Deferred Revenue Balance
|
$17.0
- $20.0
|
$17.0
- $20.0
|
|||||||||
(a)
Restructuring charges
Business
Metrics:
|
Q3
2008
|
FY
2008
|
||||
|
Case
Shipments
|
51.0K
- 53.0K
|
213.0K
- 216.5K
|
|||
|
Cash
|
$116M - $120M
|
$130M - $135M
|
|||
|
DSO
|
~57
days
|
~57
days
|
|||
|
Capex
|
$3.0M
- $5.0M
|
$14.0M
- $18.0M
|
|||
|
Depreciation
& Amortization
|
$2.0M
- $3.0M
|
$13.0M
- $14.0M
|
|||
|
Diluted
Shares Outstanding
|
70.0M
|
70.0M
|
-
8
-