SAN JOSE, Calif., Sept. 7, 2011 (GLOBE NEWSWIRE) -- Align Technology, Inc. (Nasdaq:ALGN) today announced plans to consolidate its CAD/CAM services and scanner-related activities based in Carlstadt, New Jersey with its existing manufacturing and shared services organizations in order to optimize efficiency, consolidate customer-facing functions, and reduce operating costs. All existing scanner research and development and manufacturing operations will remain in Or Yehuda, Israel. These actions include a phased transition of the following activities over the next few quarters:
* Consolidation of CAD/CAM services and scanner customer care into Align's existing shared services organization in San Jose, Costa Rica;
* Transition of CAD/CAM services and scanner distribution and repair to Align's state-of-the-art Treat operations in San Jose, Costa Rica and world-class manufacturing facilities in Juarez, Mexico; and
* Consolidation of accounting and finance functions at Align's corporate headquarters in San Jose, California.
* Closure of the New Jersey facility by the third quarter of 2012.
"After acquiring Cadent, our initial integration focus was on identifying revenue synergies and leveraging Align's sales and marketing resources to better drive and support go-to-market initiatives for iTero and iOC scanners. Now, with the bulk of integration well under way, we can accelerate other initiatives such as enhancing the customer experience, improving operational efficiency, and reducing costs," said Thomas M. Prescott, president and CEO of Align Technology. "As a result of today's announcement many valued employees will be impacted. These actions, while difficult, are necessary to create the most streamlined service for customers and optimize efficiency across the business. Once the consolidation is complete, we expect to realize annualized net savings of approximately $4.0 million per year."
The consolidation of Align's New Jersey operations includes a total reduction of 119 full time headcount in Carlstadt, New Jersey. The transition will begin in the fourth quarter of 2011 and is expected to be completed by the third quarter of 2012. As part of this consolidation, Align will incur costs for severance estimated to be approximately $2.0 million, of which approximately $1.1 million will be realized in 2011 and $0.9 million over the first three quarters of 2012. The Company does not expect this to be material to its fiscal 2011 GAAP and non-GAAP diluted EPS. As of June 30, 2011, Align had a regular employee base of approximately 2,400 worldwide.
Align also announced today that it has closed on the purchase of land and a manufacturing facility in Juarez, Mexico, adding approximately 150,000 square feet of space. This new property is in addition to the Company's existing world-class manufacturing facility in Juarez. As previously disclosed, Align paid approximately $3.2 million in cash for the property and plans to transition its aligner fabrication and scanner-related activities into this facility in 2012.
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.The Invisalign product family includes Invisalign, Invisalign Teen, Invisalign Assist, Invisalign Express, and Vivera Retainers. To learn more about Invisalign or to find an Invisalign trained doctor in your area, please visit www.invisalign.com.
Cadent Holdings, Inc. is a subsidiary of Align Technology and is a leading provider of 3D digital scanning solutions for orthodontics and dentistry. The Cadent family of products includes iTero and iOC scanning systems, OrthoCAD iCast, OrthoCAD iQ and OrthoCAD iRecord. For additional information, please visit www.cadentinc.com.
This news release contains forward-looking statements, including statements regarding expected net savings per year, the impact on fiscal 2011 earnings per share as well as the expected completion of the transition by the third quarter of 2012. Forward-looking statements contained in this news release 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, lower than anticipated reductions in headcount or expenses in connection with the consolidation, a delay in the implementation of the consolidation for any reason or greater than anticipated costs resulting from the relocation. 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, 2010 and its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2011, which were filed with the Securities and Exchange Commission on February 24, 2011 and August 8, 2011, respectively. Align undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
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Align Technology, Inc.
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Ethos Communication, Inc.