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 28, 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
October 28, 2008, 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, 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 October 28,
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.
|
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 October 28,
2008
|
 |
 |
CONFIDENTIAL
FINAL DRAFT - FOR RELEASE ON OCTOBER 28, 2008 AT 1:00 PM PACIFIC
TIME
|
Press
Contact
|
||
|
Shirley
Stacy
|
Shannon
Mangum Henderson
|
|
|
Align
Technology, Inc.
|
Ethos
Communication, Inc.
|
|
|
(678)
540-9222
|
||
|
sstacy@aligntech.com
|
align@ethoscommunication.com
|
Align
Technology Announces Third Quarter Fiscal 2008 Results
SANTA
CLARA, Calif., October 28, 2008 / — Align Technology, Inc. (Nasdaq: ALGN) today
reported financial results for the third quarter of fiscal 2008, ended September
30, 2008.
Total
net
revenues for the third quarter of fiscal 2008 (Q3 08) were $75.2 million
compared to $71.5 million reported in the third quarter of 2007 (Q3 07) and
compared to $79.9 million reported in the second quarter of 2008 (Q2 08).
On
a
generally accepted accounting principles (GAAP) basis, net profit for Q3 08
was
$5.2 million, or $0.08 per diluted share. This is compared to net profit of
$9.5
million, or $0.13 per diluted share in Q3 07, and net profit of $4.0 million,
or
$0.06 per diluted share in Q2 08. Stock-based compensation expense included
in
Q3 08 net profit was $4.4 million, compared to $3.4 million in Q3 07, and $4.8
million in Q2 08.
“I
am
pleased with our results during these challenging times,” said Thomas M.
Prescott, president and CEO of Align Technology. “We
are
committed to continuing investment in new products and our key strategic
initiatives while lowering our overall cost structure, which will position
the
Company for renewed growth and profitability as the environment
improves.”
Non-GAAP
net profit for Q3 08 was $7.4 million, or $0.11 per diluted share. This is
compared to non-GAAP net profit of $9.5 million, or $0.13 per diluted share
in
Q3 07, and non-GAAP net profit of $4.0 million, or $0.06 per diluted share
in Q2
08.
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 following the financial tables of this
release.
Align
Technology Inc. 881 Martin Avenue Santa Clara, CA 95050 Tel: (408) 470-1000
Fax:
(408) 470-1201
Align
Technology, Inc. Q3 Fiscal 2008 Earnings Release
Q3
08 Operating Results
|
Key
GAAP Operating Results
|
Q3
08
|
Q2
08
|
Q3
07
|
|||||||
|
Gross
Margin
|
75.0
|
%
|
74.7
|
%
|
74.6
|
%
|
||||
|
Operating
Expense
|
$
|
50.7M
|
$
|
55.8M
|
$
|
44.9M
|
||||
|
Operating
Margin
|
7.6
|
%
|
4.8
|
%
|
11.7
|
%
|
||||
|
Net
Profit
|
$
|
5.2M
|
$
|
4.0M
|
$
|
9.5M
|
||||
|
Earnings
Per Diluted Share (EPS)
|
$
|
0.08
|
$
|
0.06
|
$
|
0.13
|
||||
|
Key
Non-GAAP Operating Results
|
Q3
08
|
Q2
08
|
Q3
07
|
|||||||
|
Non-GAAP
Operating Expense
|
$
|
48.5M
|
$
|
55.8M
|
$
|
44.9M
|
||||
|
Non-GAAP
Net Profit
|
$
|
7.4M
|
$
|
4.0M
|
$
|
9.5M
|
||||
|
Non-GAAP
Earnings Per Diluted Share (EPS)
|
$
|
0.11
|
$
|
0.06
|
$
|
0.13
|
||||
Liquidity
and Capital Resources
As
of
September 30, 2008, Align had $114.3 million in cash, cash equivalents, and
short term marketable securities compared to $127.9 million as of December
31,
2007. During
Q3
08, Align purchased 930,373 shares at an average price of $12.62 per share
for a
total of $11.7 million. There remains $10.7 million under the Company’s existing
stock repurchase authorization.
Key
Business Metrics
The
following table highlights business metrics for Align’s third quarter of 2008.
Additional historical information is available on the Company’s website at
http://investor.aligntech.com.
|
Revenue
by Channel:
|
Q3
08
|
Q3
08/Q2 08
%
Change
|
Q3
08/Q3 07
%
Change
|
|||||||
|
U.S.
Orthodontists
|
$
|
22.3
|
(4.2
|
)%
|
(0.8
|
)%
|
||||
|
U.S.
GP Dentists
|
$
|
35.2
|
(3.9
|
)%
|
1.0
|
%
|
||||
|
International
|
$
|
15.1
|
(8.0
|
)%
|
31.1
|
%
|
||||
|
Training
and Other
|
$
|
2.6
|
(28.3
|
)%
|
(1.3
|
)%
|
||||
|
Total
Revenue
|
$
|
75.2
|
(5.9
|
)%
|
5.2
|
%
|
||||
|
Average
Selling Price (ASP):
|
Q3
08
|
Q3
08/Q2 08
%
Change
|
Q3
08/Q3 07
%
Change
|
|||||||
|
Total
Worldwide Blended ASP
|
$
|
1,390
|
0.0
|
%
|
5.3
|
%
|
||||
|
Total
Worldwide ASP excluding Invisalign Express
|
$
|
1,500
|
0.0
|
%
|
4.9
|
%
|
||||
|
U.S.
Orthodontists Blended ASP
|
$
|
1,290
|
0.0
|
%
|
4.9
|
%
|
||||
|
U.S.
GP Dentists Blended ASP
|
$
|
1,360
|
1.5
|
%
|
3.8
|
%
|
||||
|
International
|
$
|
1,660
|
(2.4
|
)%
|
5.1
|
%
|
||||
|
Number
of Cases Shipped:
|
Q3
08
|
Q3
08/Q2 08
%
Change
|
Q3
08/Q3 07
%
Change
|
|||||||
|
U.S.
Orthodontists – Full Invisalign
|
15,000
|
1.1
|
%
|
(1.1
|
)%
|
|||||
|
U.S.
Orthodontists – Invisalign Express
|
2,970
|
(8.6
|
)%
|
(5.1
|
)%
|
|||||
|
U.S.
GP Dentists – Full Invisalign
|
21,070
|
(4.8
|
)%
|
(3.7
|
)%
|
|||||
|
U.S.
GP Dentists – Invisalign Express
|
4,620
|
(7.0
|
)%
|
0.4
|
%
|
|||||
|
International–
Full Invisalign
|
8,950
|
(6.0
|
)%
|
25.0
|
%
|
|||||
|
International–
Invisalign Express
|
190
|
18.8
|
%
|
46.2
|
%
|
|||||
|
Total
Cases Shipped
|
52,800
|
(3.8
|
)%
|
1.4
|
%
|
|||||
-2-
Align Technology, Inc. Q3 Fiscal 2008 Earnings
Release
|
Number
of Doctors Cases were Shipped to:
|
Q3
08
|
|||||||||
|
U.S.
Orthodontists
|
3,730
|
|||||||||
|
U.S.
GP Dentists
|
10,920
|
|||||||||
|
International
|
2,900
|
|||||||||
|
Total
Doctors Cases were Shipped to Worldwide
|
17,550
|
|||||||||
|
Number
of Doctors Trained Worldwide:
|
Q3
08
|
Cumulative
|
||||||||
|
U.S.
Orthodontists
|
90
|
8,600
|
||||||||
|
U.S.
GP Dentists
|
1,030
|
31,300
|
||||||||
|
International
|
330
|
13,670
|
||||||||
|
Total
Doctors Trained Worldwide
|
1,450
|
53,570
|
||||||||
|
Multiple
Case Doctors (Cumulative as of):
|
Q3
08
|
|||||||||
|
U.S.
Orthodontists
|
90.6
|
%
|
||||||||
|
U.S.
GP Dentists
|
86.4
|
%
|
||||||||
|
International
|
77.3
|
%
|
||||||||
|
Doctors
Starting Invisalign Treatment (Cumulative as of):
|
Q3
08
|
|||||||||
|
U.S.
Orthodontists
|
7,030
|
|||||||||
|
U.S.
GP Dentists
|
24,900
|
|||||||||
|
International
|
7,740
|
|||||||||
|
Total
Doctors Starting Invisalign Treatment
|
39,670
|
|||||||||
|
Doctor
Utilization Rates*:
|
Q3
08
|
Q2
08
|
Q3
07
|
|||||||
|
U.S.
Orthodontists
|
4.8
|
4.9
|
4.9
|
|||||||
|
U.S.
GP Dentists
|
2.4
|
2.5
|
2.6
|
|||||||
|
International
|
3.2
|
3.3
|
3.1
|
|||||||
|
Total
Utilization Rate
|
3.0
|
3.1
|
3.2
|
*
Utilization = # of cases/# of doctors to whom cases were shipped
Business
Outlook
For
the
fourth quarter of fiscal 2008 (Q4 08), Align Technology expects net revenues
to
be in a range of $72.5 million to $76.5 million. GAAP earnings per diluted
share
for Q4 08 is expected to be in a range of $0.01 to $0.03. Non-GAAP earnings
per
diluted share for Q4 08 is expected to be in a range of $0.06 to $0.09.
Stock-based stock compensation expense for Q4 08 is expected to be approximately
$4.1 million.
For
fiscal 2008, Align Technology expects net revenues to be in a range of $302.5
million to $306.5 million. The Company continues to expect the increase in
deferred revenue for fiscal 2008 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 $0.22 to $0.24. Non-GAAP
earnings per diluted share for fiscal 2008 is expected to be in a range of
$0.31
to $0.33. Stock-based compensation expense for fiscal 2008 is expected to be
approximately $17.3 million.
A
more
comprehensive business outlook is available following the financial tables
of
this release.
-3-
Align
Technology, Inc. Q3 Fiscal 2008 Earnings Release
Restructuring
Announcement
On
October 23, 2008 Align, announced a restructuring plan to increase efficiencies
across the organization and lower the Company’s overall cost structure. The
restructuring plan includes a total reduction of 110 full time headcount in
Santa Clara, California. As part of these actions, Align will record a
restructuring charge estimated to be approximately $5 million, of which
approximately $3.5 million will be realized in Q4 08 and the remainder over
the
first half of 2009. This is in addition to the restructuring charge that the
Company announced in July 2008. For more information, please see Align's press
release titled, "Align Technology Announces Restructuring Plan."
Align
Web Cast and Conference Call
Align
Technology will host a conference call today, October 28, 2008 at 4:30 p.m.
ET,
1:30 p.m. PT, to review its third 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 289246
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 11, 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 teens. Align Technology was founded in
March
1997 and received FDA clearance to market Invisalign in 1998. Today, the
Invisalign product family includes Invisalign, Invisalign Teen, Invisalign
Assist, Invisalign Express, and Vivera Retainers.
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.
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 operating expenses,
non-GAAP net profit, non-GAAP earnings per share, which exclude the effect
of
charges associated with the restructuring. 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.
-4-
Align
Technology, Inc. Q3 Fiscal 2008 Earnings Release
Forward-Looking
Statement
This
news
release, including the tables below, contains forward-looking statements,
including statements regarding, the expected amount of and timing of the charges
to be incurred in connection with the restructuring and Align’s anticipated
financial results and certain business metrics for the fourth 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 and efficiencies
related to the restructuring, including a delay in the implementation of the
relocation of certain customer facing organizations from Santa Clara, California
to Costa Rica and greater than anticipated costs resulting from the relocation,
changes in the size of the expected restructuring charge, loss of key personnel
responsible for interpreting the relocation in a timely manner, failure to
effectively manage the relocation resulting in decreased customer service
levels, 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. Q3 Fiscal 2008 Earnings Release
ALIGN
TECHNOLOGY, INC.
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in
thousands, except per share data)
|
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||
|
|
September 30,
2008
|
September 30,
2007
|
September 30,
2008
|
September 30,
2007
|
|||||||||
|
Net
revenues
|
$
|
75,173
|
$
|
71,451
|
$
|
229,851
|
$
|
211,815
|
|||||
|
Cost
of revenues
|
18,766
|
18,132
|
58,617
|
55,908
|
|||||||||
|
Gross
profit
|
56,407
|
53,319
|
171,234
|
155,907
|
|||||||||
|
Operating
expenses:
|
|||||||||||||
|
Sales
and marketing
|
28,214
|
24,226
|
88,737
|
71,729
|
|||||||||
|
General
and administrative
|
14,395
|
13,949
|
45,905
|
38,014
|
|||||||||
|
Research
and development
|
5,918
|
6,749
|
20,214
|
19,117
|
|||||||||
|
Restructuring
|
2,189
|
-
|
2,189
|
-
|
|||||||||
|
Patients
First Program
|
-
|
-
|
-
|
(1,796
|
)
|
||||||||
|
|
|||||||||||||
|
Total
operating expenses
|
50,716
|
44,924
|
157,045
|
127,064
|
|||||||||
|
Profit
from operations
|
5,691
|
8,395
|
14,189
|
28,843
|
|||||||||
|
Interest
and other income, net
|
264
|
1,108
|
1,673
|
2,243
|
|||||||||
|
Profit
before income taxes
|
5,955
|
9,503
|
15,862
|
31,086
|
|||||||||
|
Provision
for income taxes
|
(798
|
)
|
(43
|
)
|
(1,371
|
)
|
(1,030
|
)
|
|||||
|
Net
profit
|
$
|
5,157
|
$
|
9,460
|
$
|
14,491
|
$
|
30,056
|
|||||
|
Net
profit per share
|
|||||||||||||
|
-
basic
|
$
|
0.08
|
$
|
0.14
|
$
|
0.21
|
$
|
0.45
|
|||||
|
-
diluted
|
$
|
0.08
|
$
|
0.13
|
$
|
0.21
|
$
|
0.42
|
|||||
|
Shares
used in computing net profit per share
|
|||||||||||||
|
-
basic
|
67,367
|
67,970
|
68,330
|
66,709
|
|||||||||
|
-
diluted
|
68,704
|
72,230
|
69,906
|
71,058
|
|||||||||
-6-
Align
Technology, Inc. Q3 Fiscal 2008 Earnings Release
ALIGN
TECHNOLOGY, INC.
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(in
thousands)
|
September 30,
2008
|
December 31,
2007
|
||||||
|
ASSETS
|
|||||||
|
Current
assets:
|
|||||||
|
Cash
and cash equivalents
|
$
|
79,756
|
$
|
89,140
|
|||
|
Marketable
securities, short-term
|
34,499
|
38,771
|
|||||
|
Accounts
receivable, net
|
48,872
|
44,850
|
|||||
|
Inventories,
net
|
3,015
|
2,910
|
|||||
|
Other
current assets
|
7,412
|
8,846
|
|||||
|
Total
current assets
|
173,554
|
184,517
|
|||||
|
Property
and equipment, net
|
29,568
|
25,320
|
|||||
|
Goodwill
and intangible assets, net
|
8,966
|
11,093
|
|||||
|
Other
long-term assets
|
4,432
|
1,831
|
|||||
|
Total
assets
|
$
|
216,520
|
$
|
222,761
|
|||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||
|
Current
liabilities:
|
|||||||
|
Accounts
payable
|
$
|
7,485
|
$
|
9,222
|
|||
|
Accrued
liabilities
|
33,877
|
39,875
|
|||||
|
Deferred
revenues
|
15,380
|
12,362
|
|||||
|
Total
current liabilities
|
56,742
|
61,459
|
|||||
|
Other
long term liabilities
|
124
|
148
|
|||||
|
Total
liabilities
|
56,866
|
61,607
|
|||||
|
Total
stockholders' equity
|
159,654
|
161,154
|
|||||
|
Total
liabilities and stockholders' equity
|
$
|
216,520
|
$
|
222,761
|
|||
-7-
Align
Technology, Inc. Q3 Fiscal 2008 Earnings Release
ALIGN
TECHNOLOGY, INC.
RECONCILIATION
OF GAAP TO NON-GAAP KEY FINANCIAL METRICS
Reconciliation
of GAAP to Non-GAAP Operating Expenses
(in
thousands)
|
Three Months Ended
|
||||||||||
|
September 30,
2008
|
June 30,
2008
|
September 30,
2007
|
||||||||
|
GAAP
Operating expenses
|
$
|
50,716
|
$
|
55,787
|
$
|
44,924
|
||||
|
Restructuring
Cost
|
(2,189
|
)
|
-
|
-
|
||||||
|
Non-GAAP
Operating expenses
|
$
|
48,527
|
$
|
55,787
|
$
|
44,924
|
||||
Reconciliation
of GAAP to Non-GAAP Net Profit (Loss)
(in
thousands, except per share amounts)
|
Three Months Ended
|
||||||||||
|
September 30,
2008
|
June 30,
2008
|
September 30,
2007
|
||||||||
|
GAAP
Net profit
|
$
|
5,157
|
$
|
4,030
|
$
|
9,460
|
||||
|
Restructuring
|
2,189
|
-
|
-
|
|||||||
|
Tax
effect on Restructuring
|
85
|
-
|
-
|
|||||||
|
Non-GAAP
Net profit
|
$
|
7,431
|
$
|
4,030
|
$
|
9,460
|
||||
|
Diluted
Net profit per share:
|
||||||||||
|
GAAP
|
$
|
0.08
|
$
|
0.06
|
$
|
0.13
|
||||
|
Non-GAAP
|
$
|
0.11
|
$
|
0.06
|
$
|
0.13
|
||||
|
Shares
used in computing diluted net profit per share
|
68,704
|
69,916
|
72,230
|
|||||||
-8-
Align
Technology, Inc. Q3 Fiscal 2008 Earnings Release
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)
|
Q4
2008
|
FY
2008
|
||||||||||||||||||
|
GAAP
|
Adjustment
|
(a) |
Non-GAAP
|
FY
2008
|
Adjustment
|
(a) |
Non-GAAP
|
||||||||||||
|
Net
Revenue
|
$72.5
- $76.5
|
$72.5
- $76.5
|
$302.5
- $306.5
|
$302.5
- $306.5
|
|||||||||||||||
|
|
|||||||||||||||||||
|
Gross
Margin
|
72.5%
- 73.0%
|
|
72.5%
- 73.0%
|
|
74.0%
- 74.1%
|
|
74.0%
- 74.1%
|
|
|||||||||||
|
|
|||||||||||||||||||
|
Operating
Expenses
|
$52.1
- $53.6
|
$4.0
|
(a)
|
$48.1
- $49.6
|
$209.1
- $210.6
|
$6.2
|
(a)
|
$202.9
- $204.4
|
|||||||||||
|
|
|
||||||||||||||||||
|
Net
Profit %
|
1%
- 3%
|
|
5%
|
|
6%
- 8%
|
|
5%
- 6%
|
|
2%
|
|
7%
- 8%
|
|
|||||||
|
|
|
||||||||||||||||||
|
Net
Profit per Diluted Share
|
$0.01
- $0.03
|
$0.05
- $0.06
|
$0.06
- $0.09
|
$0.22
- $0.24
|
$0.09
|
$0.31
- $0.33
|
|||||||||||||
|
|
|
||||||||||||||||||
|
Stock
Based Compensation Expense:
|
|
||||||||||||||||||
|
Cost
of Revenues
|
$0.4
|
$0.4
|
$1.7
|
$1.7
|
|||||||||||||||
|
Operating
Expenses
|
$3.7
|
$3.7
|
$15.6
|
$15.6
|
|||||||||||||||
|
Total
Stock Based Compensation Expense
|
$4.1
|
$4.1
|
$17.3
|
$17.3
|
|||||||||||||||
|
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:
|
|||||||||||||||||||
|
|
Q4 2008
|
FY 2008
|
|||||||||||||||||
|
Case
Shipments
|
52.5K
- 55.0K
|
211.9K
- 214.4K
|
|||||||||||||||||
|
Cash
|
$115M
- $120M
|
$115M
- $120M
|
|
||||||||||||||||
|
DSO
|
~59
days
|
~59
days
|
|||||||||||||||||
|
Capex
|
$3.0M
- $5.0M
|
$15.0M
- $17.0M
|
|
||||||||||||||||
|
Depreciation
& Amortization
|
$2.0M
- $3.0M
|
$13.0M
- $14.0M
|
|||||||||||||||||
|
Diluted
Shares Outstanding
|
68.1
|
69.4
|
|||||||||||||||||
-9-