Align 2nd-Quarter Net Up 2.9% on Higher Invisalign Shipments

   By Ben Fox Rubin 
 

Align Technology Inc.'s (ALGN) second-quarter earnings rose 2.9% as the maker of Invisalign braces posted increased revenue on higher shipments.

Shares were up 5.6% at $41.86 after hours as the company's results beat estimates. As of Thursday's close, the stock was up 43% so far this year.

For the current quarter, Align expects earnings of 28 cents to 30 cents a share, and revenue of $154.9 million to $160 million. Analysts polled by Thomson Reuters recently predicted income of 31 cents a share and $156 million in revenue.

Recently, Align said it was cutting jobs and shuffling its management ranks amid an effort to drive growth and encourage adoption of its Invisalign products.

For the latest quarter, Align reported a profit of $29.3 million, or 36 cents a share, up from $28.5 million, or 34 cents a share, in the like period a year earlier. Revenue rose 12% to $163.8 million.

The company in April forecast 26 cents to 28 cents a share in earnings and revenue of $153.6 million to $157.4 million.

Gross margin widened to 75.5% from 74.7%.

Invisalign case shipments reached about 106,100, up from 95,300 a year ago.

Separately, the company named David L. White as chief financial officer and John P. Graham as chief marketing officer. Mr. White has held financial chief positions at several technology companies and was recently chief financial officer at Enecsys Ltd., a privately held supplier of solar micro inverters and monitoring systems. Mr. Graham has more than 18 years of experience in the health care sector and was recently chief marketing officer at GlaxoSmithKline Consumer Healthcare.

Additionally, Align Technology said a district court in Germany granted permanent injunctions against Ortho Caps GmbH and Rasteder KFO Spezial-Labor GmbH. Align asserted in separate patent infringement lawsuits filed in December 2011 that both Ortho Caps and Rasteder KFO Spezial-Labor infringe Align patents.

Write to Ben Fox Rubin at [e-mail]

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