SAN JOSE, Calif., July 24, 2014 /PRNewswire/ -- Align Technology, Inc. (Nasdaq: ALGN) today reported financial results for the second quarter ended June 30, 2014.
Total revenues for the second quarter of 2014 (Q2'14) were a record $192.5 million, a 17.5% increase year-over-year. Clear aligner case shipments in Q2'14 were 119.3 thousand, a 12.4% increase year-over-year. Net profit for Q2'14 was $35.6 million, or $0.43 per diluted share, an increase of 21.4% year-over-year from $29.3 million, or $0.36 per diluted share for Q2'13.
“Our second quarter results were good and we’re pleased to get the important summer Teen season off to a solid start,” said Thomas M. Prescott, Align president and CEO. “Record revenues, which increased 17.5% year-over-year, were driven by increased Invisalign volume across North America, EMEA and the Asia Pacific regions, as well as higher Invisalign ASPs. We also had a record quarter for scanner and services revenues with unit volume up over 50% year-over-year.”
Summary Financial Comparisons | ||||||
(In millions except for shipments and per share amounts) | ||||||
Q2'14 | Q1'14 | Q2'13 | Q/Q | Y/Y | ||
GAAP | ||||||
Clear Aligner Shipments | 119,300 | 112,180 | 106,135 | +6.3% | +12.4% | |
Net Revenues | $192.5 | $180.6 | $163.8 | +6.6% | +17.5% | |
Clear Aligner | $179.7 | $168.2 | $153.3 | 1 | +6.8% | +17.2% |
Scanner and Services | $12.8 | $12.4 | $10.5 | +3.1% | +21.6% | |
Net Profit | $35.6 | $32.4 | $29.3 | +9.7% | +21.4% | |
Earnings Per Share | $0.43 | $0.39 | $0.36 | +$0.04 | +$0.07 | |
Notes: | |
(1) | Q2'13 clear aligner revenue includes a $1.2 million decrease in revenue due to the change in our mid-course correction policy effective June 15, 2013. |
As of June 30, 2014, Align had $502.7 million in cash, cash equivalents and short-term and long-term marketable securities compared to $472.0 million as of December 31, 2013. During Q2'14, we paid $70 million under an accelerated stock repurchase plan (“ASR”) in which we received an initial delivery of approximately 997,000 shares of its common stock. The final number of shares repurchased will be determined at 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, 2014. There remains approximately $230 million available for repurchases under the existing stock repurchase authorization, of which $30 million is expected to be used for repurchases over the next nine months.
We also announced today the appointment of Simon Beard as vice president and managing director of Europe, Middle East and Africa (EMEA) effective November 3, 2014 reporting directly to Raphael Pascaud, vice president, international. Mr. Beard assumes the position vacated by Mr. Pascaud in January, 2014. He is currently regional director for Smith & Nephew’s South East Asia business. Mr. Beard has an extensive background in the medical industry where he has held multiple commercial, strategic, and general management positions in companies such as DePuy, Johnson & Johnson, Sankyo and Sanofi Aventis.
In addition, we announced further expansion in the EMEA region with 14 additional European countries moving from distributor coverage to our direct sales organization beginning in Q3 14. These new countries include; Faroe Islands, Albania, Kosovo, Poland, Czech Republic, Slovakia, Hungary, Slovenia, Croatia, Bosnia & Herzegovina, Serbia, Romania, Bulgaria, and Macedonia. As with the Q1'14 integration of 11 countries, we do not expect a material impact from these countries for some time. In the near term we will leverage our existing infrastructure in adjacent country markets as we build local sales organizations to drive long-term market penetration.
Q3 Fiscal 2014 Business Outlook
For the third quarter of 2014 (Q3'14), Align provides the following guidance:
- Clear aligner case shipments in a range of 118.1 thousand to 120.5 thousand.
- Net revenues in a range of $186.3 million to $190.2 million, which reflects a year-over-year increase of 13.2% to 15.6%.
- EPS in a range of $0.41 to $0.44.
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