Align Technology Shares Up 6% As Q2 Results Top Estimates

(RTTNews) - Shares of Align Technology, Inc. (ALGN) gained more than six percent in Thursday's extended trade after the medical devices company reported results for the second quarter that topped analysts' expectations. The company also issued earnings and revenue guidance for the third quarter.

The company reported a profit for the quarter that edged up from last year, reflecting double-digit revenue growth amid improved Invisalign clear aligner sales and shipments.

Separately, the company announced the appointment of David White as its new CFO, effective immediately. White will replace Kenneth Arola, who resigned in early March.

White joins Align from Enecsys, Ltd., where he most recently served as CFO. Prior to that, he served as CFO at NVIDIA Corp. and Asyst Technologies Corp., as well as CEO at Candescent Technologies Corp. The company also said John Graham will also join as vice president marketing and chief marketing officer, effective July 22. Graham previously served as vice president and chief marketing officer of GlaxoSmithKline Consumer Healthcare, and also held multiple marketing leadership roles at Johnson & Johnson (JNJ).

"I'm pleased to report another good quarter with better than expected revenues, gross margins and earnings. Strong second quarter results were driven by higher Invisalign volumes and ASPs, with sequential growth across all customer channels," President and CEO Thomas Prescott said in a statement.

The San Jose, California-based company reported net income of $29.3 million or $0.36 per share for the second quarter, higher than $28.5 million or $0.34 per share in the prior-year quarter.

On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of $0.28 per share for the quarter. Analysts' estimates typically exclude special items.

Total net revenue for the quarter increased 12.5 percent to $163.8 million from $145.6 million in the same quarter last year, and topped twelve Wall Street analysts' consensus estimate of $156.20 million.

Invisalign clear aligner sales totaled $153.3 million for the quarter, up 14.7 percent from a year ago, with the company shipping 106,100 cases, up 11.4 percent from 95,300 cases last year. Meanwhile, scanner and CAD/CAM services revenue declined to $19.5 million from last year's $11.9 million.

Operating margin for the quarter contracted 160 basis points to 23.1 percent from last year's 24.7 percent, while gross margin expanded 60 basis points to 75.5 percent from last year. Total operating expenses increased to $85.8 million from $72.8 million in the year-ago quarter.

Looking ahead to the third quarter of fiscal 2013, the company expects earnings in a range of $0.28 to $0.30 per share, on anticipated revenues between $154.9 million and $160.0 million, with the company expecting to ship between 103.6 to 106.1 thousand cases of Invisalign clear aligner, a 12 to 15 percent year-over-year growth.

Street is currently looking for third-quarter earnings of $0.31 per share on quarterly revenues of $155.86 million.

ALGN closed Thursday's regular trading session at $39.65, up $0.73 or 1.88% on a volume of 1.13 million shares. The stock soared a further $2.45 or 6.18% in after-hours trading.