Align Technology Announces Record Fourth Quarter and Fiscal

SAN JOSE, CA--(Marketwired - Jan 30, 2014) - Align Technology, Inc. (NASDAQ: ALGN)

Q4 Net revenues of $178.3 million increased 24.8% year-over-year
Q4 Invisalign clear aligner net revenues of $166.2 million increased 25.1% year-over-year
Q4 GAAP Earnings per diluted share (EPS) of $0.51
2013 Net revenues of $660.2 million, increased 17.9% year-over-year
2013 GAAP diluted EPS was $0.78, non-GAAP diluted EPS was $1.54

Align Technology, Inc. (NASDAQ: ALGN) today reported financial results for the fourth quarter and fiscal year ended December 31, 2013.

Consolidated net revenues and net profit for both the fourth quarter and fiscal year were each records for the Company.

Total net revenues for the fourth quarter of 2013 (Q4'13) was a record $178.3 million. This is compared to net revenues of $164.5 million reported in the third quarter of 2013 (Q3'13) and $142.8 million in the fourth quarter of 2012 (Q4'12). Q4'13 clear aligner net revenues was $166.2 million, compared to $153.5 million in Q3'13 and $132.8 million in Q4'12. Clear aligner case shipments in Q4'13 were 111.1 thousand, compared to 106.9 thousand in Q3'13 and 90.5 thousand in Q4'12. Q4'13 scanner and CAD/CAM services net revenues was a $12.1 million, compared to $11.0 million in Q3'13 and compared to $10.0 million in Q4'12.

For fiscal 2013 (FY'13), net revenues was $660.2 million, an increase of 17.9% from $560.0 million reported for fiscal 2012 (FY'12). FY'13 clear aligner net revenues of $614.6 million increased 19.0% from $516.6 million for FY'12. FY'13 clear aligner case shipments of 422.3 thousand increased 16.2% from 363.5 thousand for FY'12. FY'13 scanner and CAD/CAM services net revenues was $45.6 million compared to $43.5 million in FY'12.

"The fourth quarter was a solid finish to the year for Align and we're pleased to have delivered better than expected revenue, operating margins and earnings, driven by strong Invisalign growth from our international doctors in Europe and Asia Pacific," said Thomas M. Prescott, Align president and CEO. "While North American Invisalign case shipments were sequentially flat, Invisalign case receipts were softer than expected in December, as many Orthodontist and GP Dentist practices had fewer days in office due to the timing of the four major holidays between Thanksgiving and New Year's Day. However, January receipts are improving and it appears that doctors and their patients are getting back to business."

Net profit for Q4'13 was $42.4 million, or $0.51 per diluted share. This is compared to net profit of $34.5 million, or $0.42 per diluted share in Q3'13, and net profit of $9.6 million, or $0.12 per diluted share in Q4'12. Q4'12 net profit included a goodwill impairment charge of $11.9 million.

Net profit for FY'13 was $64.3 million or $0.78 per diluted share. This compares to net profit for FY'12 of $58.7 million or $0.71 per diluted share. Net profit in FY'13 and FY'12 included $63.2 million and $34.7 million, respectively, of various charges, net of tax, related to the impairment of goodwill and intangible assets and other non-recurring items. Excluding these charges, non-GAAP net profit for FY'13 was $127.5 million compared with non-GAAP net profit in FY'12 of $93.4 million (see "About Non-GAAP Financial Measures").

As of December 31, 2013, the Company had $472.0 million in cash, cash equivalents, and short and long-term marketable securities compared to $356.1 million as of December 31, 2012.

To supplement our consolidated financial statements, we provide the following GAAP and non-GAAP financial measures. Detailed reconciliations between GAAP and non-GAAP information are contained in the tables following the financial tables of this release. Starting in fiscal 2013, amortization of acquired intangible assets is no longer excluded as a non-GAAP measure. This expense is included in GAAP gross profit, operating expenses, operating profit and net profit for the periods presented below and therefore is no longer a reconciling item.

Operating Results Summary ($M except for per share amounts and percentages)



Key GAAP Operating Results		Q4'13			Q3'13			Q4'12			FY'13			FY'12
Net Revenues		$	178.3		$	164.5		$	142.8		$	660.2		$	560.0
	- Clear Aligner	$	166.2		$	153.5		$	132.8		$	614.6		$	516.6
	- Scanner and CAD/CAM Services	$	12.1		$	11.0		$	10.0		$	45.6		$	43.4

Gross Margin			76.5	%		76.0	%		74.5	%		75.4	%		74.3	%
	- Clear Aligner		79.8	%		79.9	%		78.8	%		78.9	%		78.6	%
	- Scanner and CAD/CAM Services		31.1	%		22.2	%		18.5	%		29.1	%		24.0	%

Operating Expenses		$	83.6		$	83.6		$	89.4		$	403.9		$	330.8
Operating Margin			29.7	%		25.2	%		12.0	%		14.3	%		15.3	%
Net Profit		$	42.2		$	34.5		$	9.6		$	64.3		$	58.7
EPS		$	0.51		$	0.42		$	0.12		$	0.78		$	0.71

Key Non-GAAP Operating Results			Q4'13			Q3'13			Q4'12			FY'13			FY'12
Non-GAAP Gross Margin			76.5	%		76.0	%		74.5	%		75.4	%		74.5	%
	- Non-GAAP Clear Aligner		79.8	%		79.9	%		78.8	%		78.9	%		78.6	%
	- Non-GAAP Scanner and CAD/CAM Services		31.1	%		22.2	%		18.5	%		29.1	%		25.7	%

Non-GAAP Operating Expenses		$	83.6		$	83.6		$	77.5		$	336.9		$	292.9
Non-GAAP Operating Margin			29.7	%		25.2	%		20.3	%		24.4	%		22.2	%
Non-GAAP Net Profit		$	42.2		$	34.5		$	21.5		$	127.5		$	93.4
Non-GAAP EPS		$	0.51		$	0.42		$	0.26		$	1.54		$	1.13
EBITDA		$	56.9		$	45.8		$	21.7		$	110.0		$	102.1
Adjusted EBITDA		$	56.9		$	45.8		$	33.6		$	177.0		$	140.7

Stock-based Compensation (SBC)			Q4'13			Q3'13			Q4'12			FY'13			FY'12
Total SBC Expense		$	5.2		$	7.6		$	6.0		$	26.5		$	21.4
	- SBC included in Gross Margin	$	0.7		$	0.7		$	0.5		$	2.6		$	1.8
	- SBC included in Operating Expenses	$	4.5		$	6.9		$	5.5		$	23.9		$	19.6

Business Highlights
The following list highlights the Company's key strategic announcements over the past year:

Align announced the new iTero imaging system available as a single hardware platform with software options for restorative or orthodontic procedures.
Align announced the commercial availability of the Invisalign Outcome Simulator, the Company's first chair-side application designed to preview an Invisalign treatment after creating a digital impression with an iTero scanner.
Align announced the commercial availability of SmartTrack™, the next generation of Invisalign clear aligner material. SmartTrack is a highly elastic, proprietary new aligner material that delivers a gentle, more constant force to improve control of tooth movements with Invisalign clear aligner treatment.
Align announced the acquisition of its distributor for Invisalign products in the Asia Pacific region, marking the transitioning of Australia, New Zealand, Hong Kong, Singapore, Macau and Malaysia to a direct sales region.
Align and Henry Schein Dental announced the introduction of Realine™, an entry level, five-stage clear aligner product designed for very minor crowding and spacing issues.
Align announced the upcoming release of Invisalign G5 innovations, specifically designed for the treatment of deep bite malocclusions.

Q1 Fiscal 2014 Business Outlook
For the first quarter of 2014 (Q1'14), Align Technology provides the following guidance:

Net revenues in a range of $175.2 million to $179.6 million, which reflects a year-over-year increase of 14% to 17%.
Clear aligner case shipments in a range of 110.1 to 113.1 thousand cases.
EPS in a range of $0.32 to $0.34.

Align Web Cast and Conference Call
Align Technology will host a conference call today, January 30, 2014 at 4:30 p.m. ET, 1:30 p.m. PT, to review its fourth quarter 2013 results, discuss future operating trends and the business outlook. The conference call will also be web cast live via the Internet. To access the web cast, go to the "Events & Presentations" section under Company Information on Align Technology's Investor Relations web site at http://investor.aligntech.com. To access the conference call, please dial 201-689-8261 approximately fifteen minutes prior to the start of the call. An archived audio web cast will be available beginning approximately one hour after the call's conclusion and will remain available for approximately 12 months. Additionally, a telephonic replay of the call can be accessed by dialing 877-660-6853 with conference number 13573937 followed by #. For international callers, please dial 201-612-7415 and use the same conference number referenced above. The telephonic replay will be available through 5:30 p.m. ET on February 7, 2014.

About Align Technology, Inc.
Align Technology is the leader in modern clear aligner orthodontics that designs, manufactures and markets the Invisalign system, which provides dental professionals with a range of treatment options for adults and teenagers. The Company also offers the iTero 3D digital scanning system and services for orthodontic and restorative dentistry. Align Technology was founded in March 1997 and received FDA clearance to market Invisalign in 1998. Visit www.aligntech.com for more information.

For additional information about Invisalign or to find an Invisalign provider in your area, please visit www.invisalign.com. For additional information about iTero, please visit www.itero.com

About Non-GAAP Financial Measures
To supplement our consolidated financial statements and our business outlook, we may use from time to time the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP operating expenses, non-GAAP operating profit, non-GAAP net profit and non-GAAP earnings per share, which exclude, as applicable, acquisition and integration related costs, severance and benefit costs, impairment of goodwill, impairment of long-lived assets and any related income tax adjustments, and EBITDA and adjusted EBITDA. The presentation of this financial information is not intended to be considered in isolation, or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We use these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our "core operating performance." Management believes that "core operating performance" represents Align's performance in the ordinary, on-going and customary course of its operations. Accordingly, management excludes from "core operating performance" certain expenditures and other items that may not be indicative of our operating performance including discrete cash and non-cash charges that are infrequent, or one-time in nature. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management's internal evaluation of period-to-period comparisons. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making, and (2) they are provided to and used by our institutional investors and the analyst community to facilitate comparisons with prior and subsequent reporting periods. A reconciliation of the GAAP and non-GAAP financial measures for the quarter and year and a more detailed explanation of each non-GAAP financial measure and its uses are provided in the footnotes to the table captioned "Reconciliation of GAAP to non-GAAP Key Financial Metrics" and "Business Outlook Summary" included at the end of this release.

Forward-Looking Statement
This news release, including the tables below, contains forward-looking statements, including statements regarding certain business metrics for the first quarter of 2014, including, but not limited to, anticipated net revenues, gross margin, operating expenses, operating profit, diluted earnings per share, case shipments and cash, cash equivalents and short-term and long-term investments. Forward-looking statements contained in this news release and the tables below relating to expectations about future events or results are based upon information available to Align as of the date hereof. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. As a result, actual results may differ materially and adversely from those expressed in any forward-looking statement. Factors that might cause such a difference include, but are not limited to, difficulties predicting customer and consumer purchasing behavior, the willingness and ability of our customers to maintain and/or increase product utilization in sufficient numbers, the possibility that the development and release of new products does not proceed in accordance with the anticipated timeline, the possibility that the market for the sale of these new products may not develop as expected, the risks relating to Align's ability to sustain or increase profitability or revenue growth in future periods while controlling expenses, growth related risks, including capacity constraints and pressure on our internal systems and personnel, our ability to successfully achieve the anticipated benefits from the scanner and the CAD/CAM services business, continued customer demand for our existing and new products, changes in consumer spending habits as a result of, among other things, prevailing economic conditions, levels of employment, salaries and wages and consumer confidence, the timing of case submissions from our doctors within a quarter, acceptance of our products by consumers and dental professionals, foreign operational, political and other risks relating to Align's international manufacturing operations, Align's ability to protect its intellectual property rights, continued compliance with regulatory requirements, competition from existing and new competitors, Align's ability to develop and successfully introduce new products and product enhancements, the loss of key personnel and impairments in the book value of goodwill or other intangible assets. These and other risks are detailed from time to time in Align's periodic reports filed with the Securities and Exchange Commission, including, but not limited to, its Annual Report on Form 10-K for the fiscal year ended December 31, 2012, which was filed with the Securities and Exchange Commission on March 1, 2013. Align undertakes no obligation to revise or update publicly any forward-looking statements for any reason.



ALIGN TECHNOLOGY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)

		Three Months Ended						Year Ended
		December 31, 2013			December 31, 2012			December 31, 2013			December 31, 2012

Net revenues		$	178,292		$	142,840		$	660,206		$	560,041

Cost of net revenues			41,816			36,362			162,100			143,653

Gross profit			136,476			106,478			498,106			416,388

Operating expenses:
	Sales and marketing		44,694			37,769			180,046			152,041
	General and administrative		27,889			28,001			112,752			99,295
	Research and development		10,970			11,711			44,082			42,869
	Impairment of goodwill		-			11,926			40,694			36,591
	Impairment of long-lived assets		-			-			26,320			-
Total operating expenses			83,553			89,407			403,894			330,796

Operating profit			52,923			17,071			94,212			85,592

Interest and other income (expense), net			(199	)		(672	)		(1,073	)		(1,296	)

Profit before income taxes			52,724			16,399			93,139			84,296

Provision for income taxes			10,302			6,840			28,844			25,605

Net profit		$	42,422		$	9,559		$	64,295		$	58,691

Net profit per share
	- basic	$	0.53		$	0.12		$	0.80		$	0.73
	- diluted	$	0.51		$	0.12		$	0.78		$	0.71

Shares used in computing net profit per share
	- basic		80,432			81,043			80,551			80,529
	- diluted		82,438			82,981			82,589			83,040



ALIGN TECHNOLOGY, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

			December 31, 2013		December 31, 2012
ASSETS

Current assets:
	Cash and cash equivalents		$	242,953	$	306,386
	Marketable securities, short-term			127,040		28,485
	Accounts receivable, net			113,250		98,992
	Inventories			13,968		15,122
	Other current assets			47,464		36,808
		Total current assets		544,675		485,793

Marketable securities, long-term				101,978		21,252
Property and equipment, net				75,743		79,191
Goodwill and intangible assets, net				85,363		145,013
Deferred tax assets				15,766		21,609
Other long-term assets				8,622		3,454

		Total assets	$	832,147	$	756,312

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
	Accounts payable		$	17,718	$	19,549
	Accrued liabilities			80,345		74,247
	Deferred revenue			77,275		61,975
		Total current liabilities		175,338		155,771

Other long term liabilities				22,839		19,224

		Total liabilities		198,177		174,995

Total stockholders' equity				633,970		581,317

		Total liabilities and stockholders' equity	$	832,147	$	756,312



ALIGN TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP KEY FINANCIAL METRICS


Reconciliation of GAAP to Non-GAAP Operating Expenses
(in thousands)		Three Months Ended
		December 31, 2013		September 31, 2013		December 31, 2012

GAAP Operating expenses		$	83,553	$	83,626	$	89,407
	Impairment of goodwill (3)		-		-		(11,926	)
Non-GAAP Operating expenses		$	83,553	$	83,626	$	77,481


Reconciliation of GAAP to Non-GAAP Operating Profit
(in thousands)		Three Months Ended
		December 31, 2013		September 31, 2013		December 31, 2012

GAAP Operating profit		$	52,923	$	41,464	$	17,071
	Impairment of goodwill (3)		-		-		11,926
Non-GAAP Operating profit		$	52,923	$	41,464	$	28,997


Reconciliation of GAAP to Non-GAAP Net Profit
(in thousands, except per share amounts)		Three Months Ended
		December 31, 2013		September 31, 2013		December 31, 2012

GAAP Net profit		$	42,422	$	34,537	$	9,559
	Impairment of goodwill (3)		-		-		11,926
	Income tax-related adjustments (5)		-		-		42
Non-GAAP Net profit		$	42,422	$	34,537	$	21,527

Diluted Net profit per share:
	GAAP	$	0.51	$	0.42	$	0.12
	Non-GAAP	$	0.51	$	0.42	$	0.26

Shares used in computing diluted GAAP Net profit per share			82,438		81,848		82,981
Shares used in computing diluted Non-GAAP Net profit per share			82,438		81,848		82,981


Reconciliation of GAAP Net Profit to EBITDA and Adjusted EBITDA
(in thousands)		Three Months Ended
		December 31, 2013		September 31, 2013		December 31, 2012

GAAP Net profit		$	42,422	$	34,537	$	9,559
Provision for income taxes			10,302		7,376		6,840
Depreciation and amortization			4,178		3,858		5,278
EBITDA (6)		$	56,902	$	45,771	$	21,677

Adjustments or charges:
	Impairment of goodwill (3)		-		-		11,926
EBITDA after adjustments (6)		$	56,902	$	45,771	$	33,603



ALIGN TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP KEY FINANCIAL METRICS


Reconciliation of GAAP to Non-GAAP Gross Profit
(in thousands)			Year Ended
			December 31, 2013			December 31, 2012

GAAP Gross profit			$	498,106		$	416,388
	Acquisition and integration costs related to cost of revenues (1)			-			261
	Severance and benefit costs related to cost of revenues (2)			-			474
Non-GAAP Gross profit			$	498,106		$	417,123



Reconciliation of GAAP to Non-GAAP Gross Profit Scanner and CAD/CAM Services
(in thousands)			Year Ended
			December 31, 2013			December 31, 2012

GAAP Scanner and CAD/CAM Services gross profit			$	13,271		$	10,418
	Acquisition and integration costs related to cost of revenues (1)			-			261
	Severance and benefit costs related to cost of revenues (2)			-			474
Non-GAAP Gross profit			$	13,271		$	11,153



Reconciliation of GAAP to Non-GAAP Operating Expenses
(in thousands)			Year Ended
			December 31, 2013			December 31, 2012

GAAP Operating expenses			$	403,894		$	330,796
	Acquisition and integration costs related to operating expenses (1)			-			(1,010	)
	Severance and benefit costs related to operating expenses (2)			-			(306	)
	Impairment of goodwill (3)			(40,694	)		(36,591	)
	Impairment of long-lived assets (4)			(26,320	)		-
Non-GAAP Operating expenses			$	336,880		$	292,889



Reconciliation of GAAP to Non-GAAP Operating Profit
(in thousands)			Year Ended
			December 31, 2013			December 31, 2012

GAAP Operating profit			$	94,212		$	85,592
	Acquisition and integration costs (1)			-			1,271
	Severance and benefit costs (2)			-			780
	Impairment of goodwill (3)			40,694			36,591
	Impairment of long-lived assets (4)			26,320			-
Non-GAAP Operating profit			$	161,226		$	124,234



Reconciliation of GAAP to Non-GAAP Net Profit
(in thousands, except per share amounts)			Year Ended
			December 31, 2013			December 31, 2012

GAAP Net profit			$	64,295		$	58,691
	Acquisition and integration costs (1)			-			1,271
	Severance and benefit costs (2)			-			780
	Impairment of goodwill (3)			40,694			36,591
	Impairment of long-lived assets (4)			26,320			-
	Income tax-related adjustments (5)			(3,788	)		(3,900	)
Non-GAAP Net profit			$	127,521		$	93,433

Diluted Net profit per share:
		GAAP	$	0.78		$	0.71
		Non-GAAP	$	1.54		$	1.13

Shares used in computing diluted GAAP Net profit per share				82,589			83,040
Shares used in computing diluted Non-GAAP Net profit per share				82,589			83,040



Reconciliation of GAAP Net Profit to EBITDA and Adjusted EBITDA
(in thousands)			Year Ended
			December 31, 2013			December 31, 2012

GAAP Net profit			$	64,295		$	58,691
Provision for income taxes				28,844			25,605
Depreciation and amortization				16,825			17,811
EBITDA (6)				109,964			102,107

Adjustments or charges:
	Acquisition and integration related costs (1)			-			1,271
	Severance and benefit costs (2)			-			780
	Impairment of goodwill (3)			40,694			36,591
	Impairment of long-lived assets (4)			26,320			-
EBITDA after adjustments (6)			$	176,978		$	140,749

Notes:

(1) Acquisition costs and integration related. We have incurred acquisition-related and other expenses which include legal, banker, accounting and other advisory fees of third parties, retention bonuses, integration and professional fees. We do not engage in acquisitions in the ordinary course of business. We believe that it is important to understand these charges; however, we do not believe that these charges are indicative of future operating results. We believe that eliminating these expenses from our non-GAAP measures is useful because we generally would not have otherwise incurred such expenses in the periods presented as part of our continuing operations.

(2) Severance and benefits costs. These costs are related to the closure of our New Jersey operations and were realized through the first three quarters of 2012. This closure resulted in us incurring various restructuring and exit activities in 2011 and costs associated with severance and benefits. Such activity was a discrete event based on a unique set of business objectives or circumstances, and each has differed from the others in terms of its operational implementation, business impact and scope. We do not engage in restructuring and/or exit activities in the ordinary course of business. We believe that it is important to understand significant severance and benefits costs from restructuring and exit activities and believe that investors benefit from excluding these charges from our operating results to facilitate a more meaningful evaluation of current operating performance and comparisons to past operating performance.

(3) Impairment of goodwill. These costs represents non-cash write-downs of our goodwill generally related to negative trends in market and economic conditions, termination of relationships with distributors, or the increase in competitive environment related to our Scanner and CAD/CAM Services reporting unit. We remove the impact of these charges to our operating performance to assist in assessing our ability to generate cash from operations. We believe this may be useful information to users of our financial statements; therefore, we have excluded these charges for purposes of calculating these non-GAAP measures to facilitate an evaluation of our current operating performance, particularly in terms of liquidity.

(4) Impairment of long-lived assets. These costs represents non-cash write-downs of our long-lived assets generally related to the increase in competitive environment related to our Scanner and CAD/CAM Services reporting unit. As a result of these conditions, we have assessed that our asset group within the reporting unit was not recoverable and therefore recorded an impairment charge. We remove the impact of these charges to our operating performance to assist in assessing our ability to generate cash from operations. We believe this may be useful information to users of our financial statements; therefore, we have excluded these charges for purposes of calculating these non-GAAP measures to facilitate an evaluation of our current operating performance, particularly in terms of liquidity.

(5) Income tax-related adjustments. Non-GAAP financial information for the quarter is adjusted for a tax rate equal to our annual estimated tax rate on non-GAAP income. This rate is based on our estimated annual GAAP income tax rate forecast, adjusted to account for discrete tax items and items excluded from GAAP income in calculating the non-GAAP financial measures presented above. Our estimated tax rate on non-GAAP income is determined annually and may be re-calculated during the year to take into account events or trends that we believe materially impact the estimated annual rate.

(6) EBITDA and adjusted EBITDA. We use EBITDA as a performance measure for benchmarking against our peers and competitors. We believe EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties to evaluate companies in the medical technology industry. We also use adjusted EBITDA which excludes certain special or non-recurring expenses, net of certain special or non-recurring benefits, detailed in the reconciliation tables that accompany this release, as an internal measure of business operating performance. We believe such financial measures provide a meaningful perspective of the underlying operating performance to our current business. EBITDA and adjusted EBITDA are not recognized terms under GAAP. Because all companies do not calculate EBITDA and similarly titled financial measures in the same way, those measures as used by other companies may not be consistent with the way we calculate such measures and should not be considered as alternative measures of operating or net profit.

ALIGN TECHNOLOGY

Q4 and FISCAL 2013 EARNINGS RELEASE ADDITIONAL DATA

REVENUE PERFORMANCE AND CLEAR ALIGNER METRICS

(in thousands except per share data)


				Q4			FISCAL			Q1			Q2			Q3			Q4			FISCAL
				2012			2012			2013			2013			2013			2013			2013
Invisalign Clear Aligner Net Revenues by Geography:
	North America			$	91,686		$	361,122		$	97,045		$	102,217		$	103,888		$	105,059		$	408,209
		North American Orthodontists			43,812			172,532			48,859			50,476			52,504			52,104			203,943
		North American GP Dentists			47,874			188,590			48,186			51,741			51,384			52,955			204,266
	International				32,513			124,796			31,818			40,320			38,983			50,595			161,716
	Non-case*				8,660			30,663			12,709			10,766			10,679			10,570			44,724
		Total Clear Aligner Net Revenues		$	132,859		$	516,581		$	141,572		$	153,303		$	153,550		$	166,224		$	614,649
	*includes Invisalign training, ancillary products, and retainers
Invisalign Clear Aligner Net Revenues by Product:
	Invisalign Full			$	87,265		$	338,600		$	85,914		$	95,762		$	93,945		$	106,433		$	382,054
	Invisalign Express/Lite				13,269			51,486			16,083			19,158			17,702			19,475			72,418
	Invisalign Teen				16,455			67,127			18,573			19,937			23,779			22,561			84,850
	Invisalign Assist				7,210			28,705			8,293			7,680			7,445			7,185			30,603
	Non-case*				8,660			30,663			12,709			10,766			10,679			10,570			44,724
		Total Clear Aligner Net Revenues		$	132,859		$	516,581		$	141,572		$	153,303		$	153,550		$	166,224		$	614,649

Average Invisalign Selling Price (ASP):
	Worldwide ASP (1)			$	1,375		$	1,340		$	1,315		$	1,345		$	1,335		$	1,400		$	1,350
	Worldwide ASP, adjusted (2)			$	1,320		$	1,325		$	1,340		$	1,355		$	1,335		$	1,400		$	1,360
	International ASP			$	1,455		$	1,435		$	1,355		$	1,480		$	1,455		$	1,630		$	1,490
	(1) Invisalign case net revenues / Invisalign case shipments
	(2) Adjusted for one-time adjustments (eg. Q4'12 refinement release and Q1'13 and Q2'13 grandfathered mid-course correction deferrals)

Invisalign Clear Aligner Cases Shipped by Geography:
	North America				68,140			276,715			74,730			78,865			80,130			80,120			313,845
		North American Orthodontists			33,505			137,045			38,000			39,545			41,610			40,420			159,575
		North American GP Dentists			34,635			139,670			36,730			39,320			38,520			39,700			154,270
	International				22,340			86,825			23,445			27,270			26,770			31,010			108,495
		Total Cases Shipped			90,480			363,540			98,175			106,135			106,900			111,130			422,340

Invisalign Clear Aligner Cases Shipped by Product:
	Invisalign Full				57,920			234,975			61,245			65,525			64,600			70,985			262,355
	Invisalign Express/Lite				15,940			58,705			18,940			21,285			19,230			19,525			78,980
	Invisalign Teen				11,255			48,315			12,580			13,920			17,740			15,350			59,590
	Invisalign Assist				5,365			21,545			5,410			5,405			5,330			5,270			21,415
		Total Cases Shipped			90,480			363,540			98,175			106,135			106,900			111,130			422,340

Number of Invisalign Doctors Cases Shipped To:
	North American Orthodontists				4,615			5,665			4,760			4,940			4,970			5,060			6,040
	North American GP Dentists				11,685			19,285			12,520			13,130			13,170			13,435			21,290
	International				5,715			9,285			5,840			6,355			6,510			6,925			10,800
		Total Doctors Cases Shipped To			22,015			34,235			23,120			24,425			24,650			25,420			38,130

*Invisalign Doctor Utilization Rates:**
	North American Orthodontists				7.3			24.2			8.0			8.0			8.4			8.0			26.4
	North American GP Dentists				3.0			7.2			2.9			3.0			2.9			3.0			7.3
	International				3.9			9.4			4.0			4.3			4.1			4.5			10.0
		Total Utilization Rates			4.1			10.6			4.3			4.4			4.3			4.4			11.1
	* # of cases shipped/# of doctors to whom cases were shipped
Number of Invisalign Doctors Trained:
	North American Orthodontists				75			385			65			115			90			105			375
	North American GP Dentists				920			3,310			690			1,015			705			1,355			3,765
	International				780			3,145			970			1,020			875			1,060			3,925
		Total Doctors Trained Worldwide			1,775			6,840			1,725			2,150			1,670			2,520			8,065
		Total to Date Worldwide			76,495			76,495			78,220			80,370			82,040			84,560			84,560

Scanner and CAD/CAM Services Net Revenues:
	North America Scanner and CAD/CAM Services			$	9,940		$	42,251		$	11,952		$	10,454		$	10,875		$	11,980		$	45,261
	International Scanner and CAD/CAM Services				41			1,209			56			71			81			88			296
		Total Scanner and CAD/CAM Net Revenues		$	9,981		$	43,460		$	12,008		$	10,525		$	10,956		$	12,068		$	45,557

	Scanner Net Revenues			$	4,643		$	20,059		$	6,625		$	5,027		$	5,538		$	6,508		$	23,698
	CAD/CAM Services Net Revenues				5,338			23,401			5,383			5,498			5,418			5,560			21,859
		Total Scanner and CAD/CAM Services Net Revenues		$	9,981		$	43,460		$	12,008		$	10,525		$	10,956		$	12,068		$	45,557

Total Net Revenues by Geography:
	Total North America Net Revenues			$	101,626		$	403,373		$	108,997		$	112,671		$	114,763		$	117,039		$	453,470
	Total International Net Revenues				32,554			126,005			31,874			40,391			39,064			50,683			162,012
	Total Non-case Net Revenues				8,660			30,663			12,709			10,766			10,679			10,570			44,724
		Total Worldwide Net Revenues		$	142,840		$	560,041		$	153,580		$	163,828		$	164,506		$	178,292		$	660,206
			YoY % growth		10.8	%		16.7	%		13.7	%		12.5	%		20.5	%		24.8	%		17.9	%
			QoQ % growth		4.6	%					7.5	%		6.7	%		0.4	%		8.4	%
Note: Historical public data may differ due to rounding. Additionally, rounding may effect totals.



ALIGN TECHNOLOGY, INC.
BUSINESS OUTLOOK SUMMARY
(unaudited)

The outlook figures provided below and elsewhere in this press release are approximate in nature since Align's business outlook is difficult to predict. Align's future performance involves numerous risks and uncertainties and the company's results could differ materially from the outlook provided. Some of the factors that could affect Align's future financial performance and business outlook are set forth under "Forward Looking Information" above in this press release.

Financial Outlook
(in millions, except per share amounts and percentages)

	Q1'14 Guidance

	GAAP

Net Revenues	$175.2 - $179.6

Gross Margin	73.9% - 74.5%

Operating Expenses	$94.5 - $96.9

Operating Margin	approximately 20.5%

Net Income per Diluted Share	$0.32 - $0.34

Stock Based Compensation Expense:
Cost of Net Revenues	$0.9
Operating Expenses	$8.9
Total Stock Based Compensation Expense	$9.8



Business Metrics:	Q1'14

Case Shipments	110.1K - 113.1K
Cash, Cash Equivalents, and Marketable Securities	$488M - $498M
Capex	$6.1M - $7.6M
Depreciation & Amortization	$4.3M - $4.8M
Diluted Shares Outstanding	82.8M

Align Technology Announces Record Fourth Quarter and Fiscal 2013 Results

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