"We are pleased with our results for the second quarter," stated Thomas M.Prescott, Align Technology's President and CEO. "Our marketing and salesinitiatives are gaining traction and have led to increased case shipments andrevenues. Our operating margins continue to improve and have begun todemonstrate the leverage in our business model. We are committed to providinga quality product for our customers and helping them achieve great results fortheir patients. This commitment to their success, along with consistentfinancial performance, and our long-term goal of becoming the most importantpart of our doctors' practices, will help us build a great company thatdelivers shareholder value."
The net profit for the second quarter of 2004 as determined undergenerally accepted accounting principles ("GAAP") was $3.8 million, orearnings per basic and diluted share of $0.06. This compares to a net profitfor the first quarter of 2004 of $557 thousand, or earnings per basic anddiluted share of $0.01, and a net loss for the second quarter of 2003 of $7.8million, or a net loss of $0.13 per share.
The non-GAAP net profit for the second quarter of 2004, which excludes$1.8 million of stock-based compensation, was $5.6 million, or non-GAAPearnings per basic and diluted share of $0.09. This compares to a non-GAAP netprofit of $2.8 million in the first quarter of 2004, which excludes $2.2million of stock-based compensation, or a non-GAAP basic net profit of $0.05per share and non-GAAP fully diluted net profit of $0.04. This also comparesto a non-GAAP net loss of $3.4 million in the second quarter of 2003, whichexcludes $4.4 million of stock-based compensation charges, or a non-GAAP netloss of $0.06 per share. The reconciliation of the GAAP to non-GAAPmeasurements for net profit for the second quarter of 2004 is set forth belowwithin Align Technology's financial statements.
As of June 30, 2004, Align had $56.4 million in cash, cash equivalents andmarketable securities, compared to $47.7 million as of December 31, 2003.
Align Technology will host a webcast and conference call today, July 22,2004 at 10:00 a.m. EDT, 7:00 a.m. PDT, to review second quarter of 2004results and discuss future operating trends and guidance on the outlook forthe future. To access the webcast, click on "Conference Calls" on AlignTechnology's Investor Relations website atwww.aligntech.com/generalapp/us/en/corporate/investor_frameset.jsp  .To access the conference call, please dial 212-271-4505 approximately tenminutes prior to the start of the call. If you are unable to listen to thecall, an archived webcast will be available beginning approximately one hourafter the call's conclusion and will remain available through 5:30 p.m. EDT onJuly 21, 2005. Additionally, a telephonic replay of the call can be accessedby dialing 800-633-8284 with reservation number 21200430. The replay may beaccessed from international locations by dialing 402-977-9140 using the samereservation number. The telephonic replay will be available through 5:30 p.m.EDT on August 5, 2004.
About Align Technology, Inc.
Align Technology designs, manufactures and markets Invisalign, a proprietary new 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 older teens. Align Technology was founded in March 1997 and received FDA clearance to market Invisalign in 1998.
To learn more about Invisalign or to find a certified Invisalign doctor, please visit www.invisalign.com  or call 1-800-INVISIBLE.
This news release may contain forward-looking statements based on Align Technology's current expectations. These forward-looking statements involve risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. These factors include the uncertainties involved in any litigation and the possibility of Align choosing to settle the litigation for business or other reasons. These factors, as well as other factors that could cause actual results to differ materially, are discussed in more detail in Align Technology's Annual Report on Form 10-K, Quarterly Report on Form 10-Q, as well as in other reports and documents filed from time to time with the Securities and Exchange Commission.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Align Technology, Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.
SOURCE Align Technology, Inc.