SANTA CLARA, Calif., April 29 /PRNewswire-FirstCall/ -- Align Technology, Inc. (Nasdaq: ALGN) today reported financial results for the first quarter of fiscal 2008, ended March 31, 2008.
Total net revenues for the first quarter of fiscal 2008 (Q1 08) were $74.8 million. This reflects a year-over-year increase of 17 percent compared to $63.8 million in the first quarter of 2007 (Q1 07). On a sequential basis, net revenues increased 3 percent from $72.5 million in the fourth quarter of 2007 (Q4 07).
"I'm pleased to report another good quarter for Align and a solid start to fiscal 2008. Our better than expected Q1 results were driven primarily by higher ASPs and expense management," said Thomas M. Prescott, president and CEO of Align Technology.
Net profit for Q1 08 was $5.3 million, or $0.07 per diluted share. This is compared to net profit of $7.0 million, or $0.10 per diluted share in Q1 07, and net profit of $5.7 million, or $0.08 per diluted share in Q4 07. Stock-based compensation expense included in net profit in Q1 08 was $4.0 million, compared to $2.5 million in Q1 07, and $3.4 million in Q4 07.
Liquidity and Capital Resources
As of March 31, 2008, Align had $132.4 million in cash, cash equivalents, marketable securities and restricted cash, compared to $127.9 million as of December 31, 2007.
Key Business Metrics
The following table highlights business metrics for Align's first quarter of 2008. Additional historical information is available on the Company's website at http://investor.aligntech.com.
For the second quarter 2008 (Q2 08), Align Technology expects net revenues to be in a range of $78.5 million to $81.5 million. Earnings per diluted share for Q2 08 is expected to be in a range of $0.04 to $0.06. Stock-based stock compensation expense for Q2 08 is expected to be approximately $4.9 million.
For fiscal 2008, the Company remains comfortable with its prior outlook. The increase in deferred revenue for fiscal 2008 is expected to be in the range of $6 million to $9 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 $18 million to $22 million.
A more comprehensive business outlook is available following the financial tables of this release.
Stock Repurchase Program
In a separate announcement today Align also announced that its board of directors has authorized a stock repurchase program of up to $50 million, effective immediately. For more information, please see Align's press release titled, "Align Technology Announces $50 Million Stock Repurchase Program."
Align Web Cast and Conference Call
Align Technology will host a conference call today, April 29, 2008 at 4:30 p.m. ET, 1:30 p.m. PT, to review its first 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 280015 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 May 14, 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 http://www.invisalign.com or call 1-800-INVISIBLE.
This news release, including the tables below, contains forward-looking statements, including statements regarding Align's anticipated financial results and certain business metrics for the second 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, 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, 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.
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.
SOURCE Align Technology, Inc.