Align Technology, Inc. (Align Technology), a California-based medical device company engaged in the orthodontics market, has reported total net revenues of $70.1 million for the first quarter of 2009, compared with the total net revenues of $74.8 million in the year-ago quarter. It has also reported a net profit of $2.6 million, or $0.04 per diluted share, for the first quarter of 2009, compared with a net profit of $5.3 million, or $0.07 per diluted share, in the year-ago quarter.
“I’m pleased that the year is off to a good start with financial results that were better than our outlook,” said Thomas M. Prescott, president and chief executive officer of Align Technology. “Our first quarter performance reflects higher than expected revenue, case volumes and gross margins, and the benefit of our lower operating expenses. This combined with a $1.5 million credit for reimbursement of legal costs resulted in earnings that exceeded our guidance.”
Non-GAAP net profit for first quarter of 2009 was $3.2 million, or $0.05 per diluted share. This is compared to non-GAAP net profit of $4.9 million, or $0.07 per diluted share in fourth quarter of 2008. In first quarter of 2008, there was no difference between GAAP and non-GAAP net profit.
Liquidity and Capital Resources
As of March 31, 2009, Align had $124.7 million in cash, cash equivalents, and short term marketable securities compared to $110.2 million as of December 31, 2008.
Q2 Fiscal 2009 Business Outlook
Looking ahead for the second quarter, the company anticipates net revenues to be in a range of $67.5 million to $70.5 million. Operating margin for Q2 09 is expected to be in a range of 0% to 1%. GAAP earnings per diluted share for Q2 09 is expected to be in a range of a breakeven to $0.01. Non-GAAP earnings per diluted share for Q2 09 is expected to be in a range of $0.01 to $0.02. Stock-based compensation expense for Q2 09 is expected to be about $4.9 million.