Align Technology Announces Second Quarter 2015 Results
(firmenpresse) - SAN JOSE, CA -- (Marketwired) -- 07/23/15 -- Align Technology, Inc. (NASDAQ: ALGN)
Q2 worldwide Clear Aligner shipments of 144.6 thousand, up 21.2% year-over-year, with North America up 17.4% and International up 30.4%
Q2 revenues of $209.5 million, up 8.8% year-over-year, and diluted EPS of $0.39
On a constant currency basis, total revenues up 14.2% year-over-year, and Clear Aligner revenues up 17.5% year-over-year
Align Technology, Inc. (NASDAQ: ALGN) today reported financial results for the second quarter ended June 30, 2015. Clear Aligner shipments in Q2''15 were 144.6 thousand, a 21.2% increase year-over-year from 119.3 thousand in Q2''14. Revenues for the second quarter of 2015 (Q2''15) were $209.5 million, an 8.8% increase year-over-year from $192.5 million in the second quarter of 2014 (Q2''14). Net profit for Q2''15 was $31.4 million, or $0.39 per diluted share, compared to $35.6 million, or $0.43 per diluted share in Q2''14. For Q2''15, on a constant currency basis, year-over-year total revenue growth would have been 14.2%, year-over-year Clear Aligner revenue growth would have been 17.5%, and earnings per diluted share would have been $0.03 per share higher.
"Our second quarter results were solid driven by strong Invisalign volume and growth across all customer channels and geographies," said Joe Hogan, Align president and CEO. "North America volumes grew 17% year-over-year and our international geographies were up 30% compared to last year. This reflects another record quarter for North American Ortho utilization and record volume in almost every major country in Europe, as well as China, Japan, Southeast Asia, and Taiwan."
As of June 30, 2015, Align had $596.7 million in cash, cash equivalents and marketable securities compared to $602.6 million as of December 31, 2014. During Q2''15, we paid out $70 million under an accelerated stock repurchase plan ("ASR") in which we received an initial delivery of approximately 824,000 shares of our common stock. The final number of shares repurchased will be determined upon completion of the ASR based on Align''s volume-weighted average stock price during the term of the ASR, less an agreed upon discount. The ASR is expected to be completed by July 29, 2015. There remains approximately $130 million available for repurchases under the existing stock repurchase authorization, of which $30 million is expected to be used for open market repurchases pursuant to a 10b-5 trading plan over the next nine months. These repurchases were collectively part of a three-year, $300 million stock repurchase program announced on April 23, 2014 of which the second $100 million was authorized to be purchased through April 2016.
"We are committed to delivering a better customer experience for our doctors and their patients," said Joe Hogan, Align president and CEO. "Our goal is to continue to improve how customers experience our products and services, our business processes and interactions with them, and the Invisalign and iTero brands. Over the past two years we have made improvements in each of these areas and as a result, our key customer experience measure for success, our Net Promoter Score (NPS), has continued to rise. We expect this new policy will result in significant improvement in customer satisfaction and loyalty, which we believe will further increase Invisalign utilization and volume over time."
On July 18, 2015, Align launched a new product policy called "Additional Aligners At No Charge" to address one of our customer''s top complaints. Previously, Align charged customers for additional aligners ordered beyond those covered by the initial treatment plan. With this new policy, Align will no longer distinguish between mid-course corrections and case refinements and allow doctors to order additional aligners to address either treatment need at no charge, subject to certain requirements. These changes will be effective for all new Invisalign Full, Teen, and Assist treatments shipped worldwide after July 18, 2015, as well as any open Invisalign Full, Teen, and Assist cases as of this date.
Based on this new policy, beginning in Q3''15, we will now defer more revenue as a result of providing free additional aligners for eligible treatments. Additionally, since we are "grandfathering" over 1 million open cases, we will recognize lower revenue when additional aligners are shipped for at least the next two years until these cases complete. Therefore, we expect this new product policy will decrease Clear Aligner net revenues by approximately $6 to $7 million in Q3''15 and $7 to $8 million in Q4''15.
For the third quarter of 2015 (Q3''15), Align provides the following guidance:
Clear Aligner case shipments in the range of 141.8 thousand to 144.3 thousand, up approximately 18.5% to 20.6% over the same period a year-ago.
Net revenues in the range of $201.4 million to $205.7 million.
Diluted EPS in the range of $0.28 to $0.31.
For Q3''15, on a constant currency basis and excluding the impact of the Additional Aligners policy, year-over-year total net revenues growth is expected to be 12.5% to 15.3%, year-over-year Clear Aligner net revenues growth expected to be 13.9% to 16.6%, and earnings per diluted share with the additional costs associated with the organizational change is expected to be $0.09 to $0.10 per share higher.
In a separate press release today, Align announced that it is simplifying the commercial reporting structure for its three key regions and global marketing to better support regional growth and priorities, and to extend best practices across the company.
Align will host a conference call today, July 23, 2015 at 4:30 p.m. ET, 1:30 p.m. PT, to review its second quarter 2015 results, discuss future operating trends and the 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''s Investor Relations web site at . To access the conference call, please dial 201-689-8261 approximately fifteen minutes prior to the start of the call. An archived audio 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 conference number 13612927 followed by #. For international callers, please dial 201-612-7415 and use the same conference number referenced above. The telephonic replay will be available through 5:30 p.m. ET on July 30, 2015.
Align Technology is the leader in modern clear aligner orthodontics that designs, manufactures and markets the Invisalign® system, which provides dental professionals with a range of treatment options for adults and teenagers. Align also offers the iTero 3D digital scanning system and services for orthodontic and restorative dentistry. Align was founded in March 1997 and received FDA clearance to market the Invisalign system in 1998. Visit for more information.
For additional information about the Invisalign system or to find an Invisalign provider in your area, please visit . For additional information about the iTero 3D digital scanning system, please visit .
This news release, including the tables below, contains forward-looking statements, including statements regarding the expectation that the program simplification "Additional Aligners for No Charge" will help increase Invisalign utilization and volume, as well as the expected impact this program change will have on Invisalign Clear Aligner net revenues in the third and fourth quarter of 2015, in addition to certain other business metrics for the third quarter of 2015, including, but not limited to, anticipated net revenues, deferrals, gross margin, operating expenses, operating profit, diluted earnings per share, case shipments, and additional common stock repurchases. 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, difficulties predicting customer and consumer purchasing behavior, the willingness and ability of our customers to maintain and/or increase product utilization in sufficient numbers, 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, growth related risks, including capacity constraints and pressure on our internal systems and personnel, our ability to successfully achieve the anticipated benefits from the scanner and services business, continued customer demand for our existing and new products, changes in consumer spending habits as a result of, among other things, 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 our products by consumers and dental professionals, foreign operational, political and other risks relating to Align''s international manufacturing operations, Align''s ability to protect its intellectual property rights, continued compliance with regulatory requirements, competition from existing 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 year ended December 31, 2014, which was filed with the Securities and Exchange Commission on February 26, 2015. Align undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
To supplement our consolidated financial statements and our business outlook, we may use from time to time the following non-GAAP financial measures: non-GAAP constant currency revenue growth and non-GAAP constant currency earnings per share. 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.
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, on-going and customary course of its operations. Accordingly, management excludes from "core operating performance" certain expenditures and other items that may not be indicative of our operating performance, such as our revenues and earnings per share excluding the impact for foreign currency fluctuations, severance and other costs related to organizational changes, amounts related to the Additional Aligners at no Charge policy change, as well as discrete cash and non-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. A reconciliation of the GAAP and non-GAAP financial measures for the quarter and year and a more detailed explanation of each non-GAAP financial measure and its uses are provided in the footnotes to the table captioned "Reconciliation of GAAP to non-GAAP Key Financial Metrics" and "Business Outlook Summary" included at the end of this release.
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Datum: 23.07.2015 - 14:00 Uhr
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