Thursday, medical appliance manufacturer Align Technology Inc.(ALGN) reported a loss in its third quarter, reflecting litigation settlement costs and royalties, despite an increase in revenues.
Align reported third-quarter net loss of $49.9 million or $0.72 per share, compared with a net profit of $5.2 million or $0.08 per share in the year-ago period.
The company said its recent quarter included litigation settlement costs of $69.7 million and royalties of $1.9 million, for a total of $0.85 per share related to the settlement agreement with Ormco Corporation announced on August 17, 2009.
Non-GAAP net income increased to $8.9 million or $0.13 per share from $7.3 million or $0.11 per share in the same quarter last year.
On average, ten analysts polled by Thomson Reuters expected the company to report earnings of $0.05 per share for the quarter. Analysts' estimates typically exclude one-time items.
Total net revenue for the quarter increased to $79.3 million from $75.2 million in the comparable quarter last year. Analysts expected the company to report revenues of $73.78 million for the quarter.
Revenues for North American orthodontists were $22.7 million, $33.9 million for North American GP dentists and $18.5 million for international sector in the third quarter.
Gross profit for the quarter increased to $59.0 million from $56.4 million in the year-ago period. Non-GAAP gross profit totaled $60.90 million, up from $56.40 million in the same quarter last year.
Total operating expenses increased to $119.19 million from $50.71 million, while non-GAAP operating expense increased to $49.52 million from $48.52 million last year.
Loss from operations for the quarter was $60.19 million compared with profit of $5.69 million in the year-ago quarter.
For the nine months ended September 30, net loss was $42.76 million or $0.64 per share, compared with net profit of $14.49 million or $0.21 per share last year. Net sales decreased to $225.71 million from $229.85 million in the comparable period last year.
Looking ahead to the fourth quarter, the company expects earnings in the range of $0.07 - $0.09 per share, on net revenues of $77.5 million - $81.0 million. On a non-GAAP basis, earnings are expected in the range of $0.08 - $0.10 per share. Analysts currently anticipate earnings per share of $0.06, on revenues of $76.58 million, for the fourth quarter.
Align last traded at $15.38, up $0.44 or 2.95% on a volume of 0.89 million on the Nasdaq
For comments and feedback: editorial@rttnews.com