Align Technology Announces Second Quarter Fiscal Year 2012 Results

Align Technology Announces Second Quarter Fiscal Year 2012 Results

  *Q2 net revenues of $145.6 million increased 7.8% sequentially and 21.3%
    year-over-year
  *Q2 Invisalign clear aligner revenue of $133.7 million increased 8.4%
    sequentially and 17.6% year-over-year
  *Q2 Invisalign case shipments of 95.3 thousand increased 11.7% sequentially
    and 25.3% year-over-year
  *Q2 scanner and CAD/CAM services revenue of $11.9 million increased 1.8%
    sequentially
  *Q2 diluted EPS was $0.34

SAN JOSE, Calif., July 19, 2012 (GLOBE NEWSWIRE) -- Align Technology, Inc.
(Nasdaq:ALGN) today reported financial results for the second quarter of
fiscal 2012 ended June 30, 2012.

Total net revenues for the second quarter of fiscal 2012 (Q2 12) were $145.6
million. This is compared to $135.1 million reported in the first quarter of
2012 (Q1 12) and compared to $120.1 million reported in the second quarter of
2011 (Q2 11). Q2 12 Invisalign clear aligner revenue of $133.7 million
increased 8.4% sequentially and 17.6% year-over-year.Q2 12 Invisalign clear
aligner case shipments of 95.3 thousand increased 11.7% sequentially and 25.3%
year-over-year. Q2 12 scanner and CAD/CAM services revenue was $11.9 million,
compared to $11.8 million in Q1 12 and compared to $6.4 million in Q2 11. Q2
11 includes two months of scanner and CAD/CAM services financial results from
the acquisition of Cadent Holdings, Inc. which closed on April 29, 2011.

"The second quarter was another great one for Align and I'm pleased to report
strong results for revenue, operating margin and EPS – all better than our
outlook," said Thomas M. Prescott, Align president and CEO. "During the
quarter strong Invisalign volume grew across all products and customer
channels reflecting continued increased Invisalign utilization."Prescott
continued, "Our scanner business in North America also grew nicely this
quarter and continues to exceed our expectations, while scanner sales in
Europe remain challenging and our disappointing results there continue."

Net profit for Q2 12 was $28.5 million, or $0.34 per diluted share. This is
compared to net profit of $21.0 million, or $0.26 per diluted share in Q1 12
and net profit of $11.2 million, or $0.14 per diluted share in Q2 11. Net
profit for Q2 12 includes pre-tax acquisition and integration related costs of
$0.3 million, pre-tax amortization of acquired intangible assets of $1.1
million, pre-tax severance and benefit costs of $0.2 million with a total
income tax-related adjustment of $1.5 million. Net profit for Q1 12 includes
pre-tax acquisition and integration related costs of $0.7 million, pre-tax
amortization of acquired intangible assets of $1.1 million, pre-tax severance
and benefit costs of $0.5 million with a total income tax-related adjustment
of $1.2 million. Net profit for Q2 11 includes pre-tax acquisition and
integration related costs of $5.9 million, pre-tax amortization of acquired
intangible assets of $0.8 million, with a total income tax-related adjustment
of $1.6 million.

To supplement our consolidated financial statements, we use the following
non-GAAP financial measures: non-GAAP gross profit, non-GAAP operating
expense, non-GAAP operating margin, non-GAAP net profit, non-GAAP earnings per
share, EBITDA and adjusted EBITDA. Detailed reconciliations between GAAP and
non-GAAP information are contained in the tables following the financial
tables of this release.

Non-GAAP net profit for Q2 12 was $28.6 million, or $0.34 per diluted share.
This is compared to non-GAAP net profit of $22.1 million, or $0.27 per diluted
share in Q1 12 and non-GAAP net profit of $16.3 million, or $0.20 per diluted
share in Q2 11.

Q2 12 Operating Results ($M)                              
Key GAAP Operating Results                Q2 12    Q1 12    Q2 11
Revenue                                   $145.6 $135.1 $120.1
- Clear Aligner                           $133.7 $123.3 $113.6
- Scanner and CAD/CAM Services            $11.9  $11.8  $6.4
                                                         
Gross Margin                              74.7%    74.6%    75.9%
- Clear Aligner                           79.0%    79.0%    78.4%
- Scanner and CAD/CAM Services            26.6%    28.7%    32.5%
                                                         
Operating Expense                         $72.8  $72.8  $74.5
Operating Margin                          24.7%    20.7%    13.8%
Net Profit                                $28.5  $21.0  $11.2
Earnings Per Diluted Share (EPS)          $0.34  $0.26  $0.14
                                                         
Key Non-GAAP Operating Results            Q2 12    Q1 12    Q2 11
Non-GAAP Gross Margin                     75.0%    75.1%    76.1%
- Non-GAAP Clear Aligner                  79.0%    79.0%    78.4%
- Non-GAAP Scanner & CAD/CAM Services     30.3%    34.6%    36.2%
                                                         
Non-GAAP Operating Expense                $71.6  $71.1  $68.1
Non-GAAP Operating Margin                 25.8%    22.4%    19.4%
Non-GAAP Net Profit                       $28.6  $22.1  $16.3
Non-GAAP Earnings Per Diluted Share (EPS) $0.34  $0.27  $0.20
EBITDA                                    $40.8  $31.1  $20.9
Adjusted EBITDA                           $41.3  $32.2  $26.8

Total stock-based compensation expense included in Q2 12 was $5.3 million
compared to $4.9 million in Q1 12 and $5.0 million in Q2 11. Stock based
compensation expense included in GAAP gross margin in Q2 12, Q1 12 and Q2 11
was $0.5 million.Stock-based compensation expense included in GAAP operating
expense in Q2 12 was $4.8 million compared to $4.4 million in Q1 12 and $4.5
million in Q2 11.

Liquidity and Capital Resources

As of June 30, 2012, Align Technology had $304.0 million in cash, cash
equivalents, and marketable securities compared to $248.1 million as of
December 31, 2011.

Q3 Fiscal 2012 Business Outlook

For the third quarter of fiscal 2012 (Q3 12), Align Technology expects net
revenues to be in a range of $136.8 million to $140.8 million. Invisalign
clear aligner case shipments for Q3 12 are expected to be in a range of 94.8
to 96.3 thousand cases, which reflect a year-over-year increase of 19.5% to
21.3%. GAAP earnings per diluted share for Q3 12 is expected to be in a range
of $0.26 to $0.28. Non-GAAP earnings per diluted share for Q3 12 is expected
to be in a range of $0.27 to $0.29. A more comprehensive business outlook is
available following the financial tables of this release.

Commenting on Align's Q3 12 business outlook, Ken Arola, Align CFO said,
"Total net revenues for the third quarter of 2012 will be impacted by lower
Invisalign ASPs resulting from revenue deferrals associated with the
Invisalign Teen/Vivera Retainer promotion, Advantage volume rebates, and
headwinds from foreign exchange rates. Our Q3 12 outlook for Invisalign case
shipment growth of 19.5% to 21.3% year-over-year is an important metric
pointing to the continued progress and strength of the business."

Align Web Cast and Conference Call

Align Technology will host a conference call today, July 19, 2012 at 4:30 p.m.
ET, 1:30 p.m. PT, to review its second quarter fiscal 2012 results, discuss
future operating trends and 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.If you are unable to listen to the call, an archived
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 account number 292 followed by # and conference number
396846 followed by #.The replay must be accessed from international locations
by dialing 201-612-7415 and using the same account and conference numbers
referenced above. The telephonic replay will be available through 5:30 p.m. ET
on July 26, 2012.

About Align Technology, Inc.

Align Technology designs, manufactures and markets Invisalign, a proprietary
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 teens. Align
Technology was founded in March 1997 and received FDA clearance to market
Invisalign in 1998.The Invisalign product family includes Invisalign,
Invisalign Teen, Invisalign Assist, Invisalign Express 10, Invisalign Express
5, and Vivera Retainers. To learn more about Invisalign or to find an
Invisalign trained doctor in your area, please visit www.invisalign.com.

Cadent Holdings, Inc. is a subsidiary of Align Technology and is a leading
provider of 3D digital scanning solutions for orthodontics and dentistry. The
Cadent family of products includes iTero and iOC scanning systems, OrthoCAD
iCast, OrthoCAD iQ and OrthoCAD iRecord. For additional information, please
visit www.cadentinc.com.

About non-GAAP Financial Measures

To supplement our consolidated financial statements and our business outlook,
we use the following non-GAAP financial measures: non-GAAP gross profit,
non-GAAP operating expenses, non-GAAP profit from operations, non-GAAP net
profit and non-GAAP earnings per share, which exclude, as applicable,
acquisition and integration related costs, amortization of acquired intangible
assets, severance and benefit costs, and any related income tax-related
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, ongoing 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
second quarter of 2012, including anticipated net revenue, gross margin,
operating expense, operating income, earnings per share, case shipments and
cash.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 utilizationin 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 acquisition
of Cadent Holdings, Inc., 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,
and the loss of key personnel. 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, 2011, which was filed with the Securities
and Exchange Commission on February 29, 2012. 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   Six Months Ended
                                    June 30,   June 30,  June 30,   June 30,
                                     2012       2011      2012       2011
                                                                 
Net revenues                         $145,626 120,086  $280,705 224,942
                                                                 
Cost of revenues                    36,826    28,949   71,145    51,579
                                                                 
Gross profit                         108,800   91,137   209,560   173,363
                                                                 
Operating expenses:                                               
Sales and marketing                  39,087    38,586   77,804    71,407
General and administrative           22,152    26,094   44,778    45,086
Research and development             10,680    9,270    21,206    18,660
Amortization of acquired intangible  869       592      1,754     592
assets
Total operating expenses             72,788    74,542   145,542   135,745
                                                                 
Profit from operations               36,012    16,595   64,018    37,618
                                                                 
Interest and other income (expense), 541       (306)    (271)     (217)
net
                                                                 
Profit before income taxes           36,553    16,289   63,747    37,401
                                                                 
Provision for income taxes           8,061     5,127    14,271    10,398
                                                                 
Net profit                          $28,492  $11,162 $49,476  $27,003
                                                                 
Net profit per share                                              
- basic                              $0.35    $0.14   $0.62    $0.35
- diluted                            $0.34    $0.14   $0.60    $0.34
                                                                 
Shares used in computing net profit                               
per share
- basic                              80,384    77,888   79,810    77,369
- diluted                            82,954    80,321   82,446    79,903

                                                     
                                                     
ALIGN TECHNOLOGY, INC.                                
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS       
(in thousands)                                       
                                                     
                                           June 30,   December 31,
                                            2012       2011
ASSETS                                                
                                                     
Current assets:                                       
Cash and cash equivalents                   $262,799 $240,675
Restricted cash                             1,178     4,026
Marketable securities, short-term           20,752    7,395
Accounts receivable, net                    102,149   91,537
Inventories                                 14,623    9,402
Other current assets                        33,634    31,781
Total current assets                        435,135   384,816
                                                     
Marketable securities, long-term            20,475    --
Property and equipment, net                 72,207    53,965
Goodwill and intangible assets, net         183,728   185,405
Deferred tax asset                          29,853    22,337
Other long-term assets                      2,765     2,741
                                                     
Total assets                                $744,163 $649,264
                                                     
LIABILITIES AND STOCKHOLDERS' EQUITY                  
                                                     
Current liabilities:                                  
Accounts payable                            $15,226  $19,265
Accrued liabilities                         69,207    76,600
Deferred revenue                            59,403    52,252
Total current liabilities                   143,836   148,117
                                                     
Other long term liabilities                 14,032    10,366
                                                     
Total liabilities                          157,868   158,483
                                                     
Total stockholders' equity                  586,295   490,781
                                                     
Total liabilities and stockholders' equity $744,163 $649,264

                                                                   
                                                                   
ALIGN TECHNOLOGY, INC.                                              
RECONCILIATION OF GAAP TO NON-GAAP KEY FINANCIAL                    
METRICS
                                                                   
                                                                   
Reconciliation of GAAP to Non-GAAP Gross Profit                     
(in thousands)                                                     
                                                 Three Months Ended
                                                 June 30,  March 31, June 30,
                                                  2012      2012      2011
                                                                   
GAAP Gross profit                                 $108,800 $100,760 $91,137
Acquisition and integration costs related to cost 72       134      57
of revenues (1)
Amortization of acquired intangible assets        232      261      183
related to cost of revenues (2)
Severance and benefit costs related to cost of    135      300      --
revenues(3)
Non-GAAP Gross profit                             $109,239 $101,455 $91,377
                                                                   
                                                                   
Reconciliation of GAAP to Non-GAAP Gross Profit                     
Scanner and CAD/CAM Services
(in thousands)                                                     
                                                 Three Months Ended
                                                 June 30,  March 31, June 30,
                                                  2012      2012      2011
                                                                   
GAAP Scanner and CAD/CAM Services gross profit    $3,183  $3,371  $2,090
Acquisition and integration costs related to cost 72       134      57
of revenues (1)
Amortization of acquired intangible assets        232      261      183
related to cost of revenues (2)
Severance and benefit costs related to cost of    135      300      --
revenues(3)
Non-GAAP Gross profit                             $3,622  $4,066  $2,330
                                                                   
                                                                   
                                                                   
Reconciliation of GAAP to Non-GAAP Operating                        
Expenses
(in thousands)                                                     
                                                 Three Months Ended
                                                 June 30,  March 31, June 30,
                                                  2012      2012      2011
                                                                   
GAAP Operating expenses                           $72,788 $72,754 $74,542
Acquisition and integration costs related to      (261)    (570)    (5,850)
operating expenses (1)
Amortization of acquired intangible assets        (869)    (885)    (592)
related to operating expenses(2)
Severance and benefit costs related to operating  (49)     (152)    --
expenses (3)
Non-GAAP Operating expenses                       $71,609 $71,147 $68,100
                                                                   
Reconciliation of GAAP to Non-GAAP Profit from                      
Operations
(in thousands)                                                      
                                                 Three Months Ended
                                                 June 30,  March 31, June 30,
                                                  2012      2012      2011
                                                                   
GAAP Profit from operations                       $36,012 $28,006 $16,595
Acquisition and integration costs (1)             333      704      5,907
Amortization of acquired intangible assets (2)    1,101    1,146    775
Severance and benefit costs (3)                   184      452      --
Non-GAAP Profit from operations                   $37,630 $30,308 $23,277
                                                                   
Reconciliation of GAAP to Non-GAAP Net Profit                      
(in thousands, except per share amounts)                           
                                                 Three Months Ended
                                                 June 30,  March 31, June 30,
                                                  2012      2012      2011
                                                                   
GAAP Net profit                                  $28,492 $20,984 $11,162
Acquisition and integration costs (1)             333      704      5,907
Amortization of acquired intangible assets (2)    1,101    1,146    775
Severance and benefit costs (3)                   184      452      --
Income tax-related adjustments (4)                (1,512)  (1,164)  (1,565)
Non-GAAP Net profit                              $28,598 $22,122 $16,279
                                                                   
Diluted Net profit per share:                                       
GAAP                                              $0.34   $0.26   $0.14
Non-GAAP                                          $0.34   $0.27   $0.20
                                                                   
Shares used in computing diluted GAAP Net profit  82,954   81,856   80,321
per share
Shares used in computing diluted Non-GAAP Net     82,954   81,856   80,321
profit per share
                                                                   
Reconciliation of GAAP Net Profit to EBITDA                         
Adjusted EBITDA
(in thousands)                                                     
                                                 Three Months Ended
                                                 June 30,  March 31, June 30,
                                                  2012      2012      2011
                                                                   
GAAP Net profit                                  $28,492 $20,984 $11,162
Provision for income taxes                        8,061    6,210    5,127
Depreciation and amortization (5)                 4,267    3,899    4,605
EBITDA (6)                                        40,820   31,093   20,894
                                                                   
Adjustments or charges:                                             
Acquisition and integration related costs (1)     333      704      5,907
Severance and benefit costs (3)                   184      452      --
EBITDA after adjustments (6)                      $41,337 $32,249 $26,801

(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) Amortization of acquired intangible assets. When conducting internal
development of intangible assets (including developed technology, customer
relationships, trademarks, etc.), GAAP accounting rules require that we
expense the costs as incurred. In the case of acquired businesses, however, we
are required to allocate a portion of the purchase price to the accounting
value assigned to intangible assets acquired and amortize this amount over the
estimated useful lives of the acquired intangibles. The acquired company, in
most cases, has itself previously expensed the costs incurred to develop the
acquired intangible assets, and the purchase price allocated to these assets
is not necessarily reflective of the cost we would incur in developing the
intangible asset. We eliminate these amortization charges for our non-GAAP
operating results to provide better comparability of pre and post-acquisition
operating results and comparability to results of businesses utilizing
internally developed intangible assets.

(3) Severance and benefits costs. These costs are related to the closure of
our New Jersey operations and will be realized through the first three
quarters of 2012. We have engaged in various restructuring and exit activities
in 2011 and 2009 that have resulted in costs associated with severance and
benefits. Such activity has been 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 these charges and, we
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.

(4) 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 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.

(5) Includes the amortization of acquired intangible assets.

(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
Q2 2012 EARNINGS RELEASE ADDITIONAL DATA
REVENUE PERFORMANCE AND CLEAR ALIGNER METRICS
(in thousands except per share data)
                                                                          
              Q1         Q2         Q3         Q4         FISCAL     Q1         Q2
              2011       2011       2011       2011       2011       2012       2012
Invisalign
Clear Aligner                                                              
Revenues by
Geography:
North America  $74,258  $79,755  $79,678  $81,789  $315,480 $86,871  $92,997
North American 35,017    37,112    37,450    37,939    147,518   41,688    43,942
Orthodontists
North American 39,241    42,643    42,228    43,850    167,962   45,183    49,055
GP Dentists
International 25,179    27,898    28,346    30,054    111,477   29,700    32,883
Teen Deferred
Revenue        --       --       --       --       --       --       --
Release
Non-case*      5,419     5,994     6,254     7,089     24,756    6,757     7,789
Total Clear
Aligner        $104,856 $113,647 $114,278 $118,932 $451,713 $123,328 $133,669
Revenue
YoY % growth   16.4%      5.0%       19.1%      28.0%      16.7%      17.6%      17.6%
QoQ % growth   12.9%      8.4%       0.6%       4.1%                 3.7%       8.4%
*includes Invisalign training, ancillary products, and retainers                 
                                                                          
Invisalign
Clear Aligner                                                              
Revenues by
Product:
Invisalign     $71,128  $76,636  $75,158  $79,469  $302,391 $82,424  $88,617
Full
Invisalign     10,051    11,095    10,498    10,865    42,509    11,806    13,632
Express/Lite
Invisalign     11,876    12,817    15,393    14,443    54,529    15,148    16,380
Teen
Invisalign     6,382     7,105     6,974     7,066     27,527    7,193     7,251
Assist
Non-case*      5,419     5,994     6,255     7,089     24,757    6,757     7,789
Total Clear
Aligner        $104,856 $113,647 $114,278 $118,932 $451,713 $123,328 $133,669
Revenue
                                                                          
Average
Invisalign
Selling Price                                                              
(ASP), as
billed:
Total
Worldwide      $1,395     $1,410     $1,385     $1,360     $1,385     $1,370     $1,335
Blended ASP
International  $1,555     $1,660     $1,560     $1,530     $1,575     $1,485     $1,455
ASP
                                                                          
Invisalign
Clear Aligner                                                              
Cases Shipped
by Geography:
North America  55,180     59,230     61,190     62,990     238,585    65,280     72,685
North American 26,890     28,520     30,070     29,890     115,370    32,235     35,420
Orthodontists
North American 28,290     30,710     31,120     33,100     123,215    33,045     37,265
GP Dentists
International 16,190     16,790     18,170     19,600     70,750     19,985     22,595
Total Cases    71,370     76,020     79,360     82,590     309,335    85,265     95,280
Shipped
                                                                          
Invisalign
Clear Aligner                                                              
Cases Shipped
by Product:
Invisalign     48,110     51,100     51,360     55,700     206,270    57,145     62,510
Full
Invisalign     10,500     11,310     11,020     11,385     44,215     12,855     15,300
Express/Lite
Invisalign     7,930      8,615      11,730     9,810      38,080     9,935      11,860
Teen
Invisalign     4,830      4,995      5,250      5,695      20,770     5,330      5,610
Assist
Total Cases    71,370     76,020     79,360     82,590     309,335    85,265     95,280
Shipped
                                                                          
Number of
Invisalign                                                                 
Doctors Cases
Shipped to:
North American 4,150      4,160      4,260      4,280      5,280      4,460      4,575
Orthodontists
North American 10,250     10,665     11,040     10,875     17,305     11,365     12,120
GP Dentists
International 4,150      4,260      4,590      4,795      7,625      5,085      5,480
Total Doctors
Cases were     18,550     19,085     19,890     19,950     30,210     20,910     22,175
Shipped to
Worldwide
                                                                          
Invisalign
Doctor                                                                     
Utilization
Rates*:
North American 6.5        6.9        7.1        7.0        21.9       7.2        7.7
Orthodontists
North American 2.8        2.9        2.8        3.0        7.1        2.9        3.1
GP Dentists
International 3.9        3.9        4.0        4.1        9.3        3.9        4.1
Total
Utilization    3.9        4.0        4.0        4.1        10.2       4.1        4.3
Rates
*# of cases shipped/# of doctors to whom cases were shipped                     
                                                                          
Number of
Invisalign                                                                 
Doctors
Trained:
North American 75         80         100        100        355        90         95
Orthodontists
North American 715        765        630        855        2,960      720        995
GP Dentists
International 165        520        855        970        2,510      715        965
Total Doctors
Trained        955        1,365      1,585      1,925      5,825      1,525      2,055
Worldwide
Total to Date  64,780     66,145     67,730     69,655     69,655     71,180     73,235
Worldwide
                                                                          
Scanner and
CAD/CAM                                                                    
Services
Revenue:
North America
Scanner and    $--     $5,241   $9,098   $9,611   $23,950  $11,120  $11,752
CAD/CAM
Services
International
Scanner and    --       1,198     2,518     362       4,078     631       205
CAD/CAM
Services
Total Scanner
and CAD/CAM    $--     $6,439   $11,616  $9,973   $28,028  $11,751  $11,957
Revenue
                                                                          
Scanner        $--     $2,735   $5,420   $5,228   $13,383  $5,361   $6,032
Revenue
CAD/CAM
Services       --       3,704     6,196     4,745     14,645    6,390     5,925
Revenue
Total Scanner
and CAD/CAM    $--     $6,439   $11,616  $9,973   $28,028  $11,751  $11,957
Revenue
                                                                          
Total Revenue                                                              
by Geography:
Total North
America        $74,258  $84,996  $88,776  $91,400  $339,430 $97,991  $104,749
Revenue
Total
International  25,179    29,096    30,864    30,416    115,555   30,331    33,088
Revenue
Total Non-case 5,419     5,994     6,254     7,089     24,756    6,757     7,789
Revenue
Total
Worldwide      $104,856 $120,086 $125,894 $128,905 $479,741 $135,079 $145,626
Revenue
YoY % growth   16.4%      11.0%      31.2%      38.8%      23.9%      28.8%      21.3%
QoQ % growth   12.9%      14.5%      4.8%       2.4%                 4.8%       7.8%
                                                                          
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.
                                                          
Financials                                                
(in millions, except per share amounts and                  
percentages)
                                                          
                         Q3 2012
                                                          
                         GAAP             Adjustment   (a)   Non-GAAP
                                                          
Net Revenue               $136.8 - 140.8                    $136.8 - 140.8
                                                          
Gross Profit              $100.4 - $104.0  $0.3              $100.7 - 104.3
                                                          
Gross Margin              73.4% - 73.8%                    73.6% - 74.1%
                                                          
Operating Expenses        $71.7 - $72.4    $1.1              $70.6 - $71.3
                                                          
Operating Margin          21.0% - 22.4%                     22.0% - 23.5%
                                                          
Net Income per Diluted    $0.26 - $0.28    $0.01             $0.27 - $0.29
Share
                                                          
Stock Based Compensation                                   
Expense:
Cost of Revenues          $0.5                              $0.5
Operating Expenses        $5.1                              $5.1
Total Stock Based         $5.6                              $5.6
Compensation Expense
                                                          
(a) Includes scanner and CAD/CAM services amortization of acquired intangibles
assets, severance and benefit costs, and integration costs.
                                                          
Business Metrics:                                          
                         Q3 2012                           
Invisalign Case Shipments 94.8K - 96.3K                     
Cash, Cash Equivalents,   $345M - $355M *                   
and Marketable Securities
Capex                     $6.5M - $8.0M                     
Depreciation &            $4.4M - $4.8M                     
Amortization
Diluted Shares            83.5M*                            
Outstanding
                                                          
* Excludes any stock repurchases during the quarter

CONTACT: Investor Relations Contact
         Shirley Stacy
         Align Technology, Inc.
         (408) 470-1150
         sstacy@aligntech.com
        
         Press Contact
         Shannon Mangum Henderson
         Ethos Communication, Inc.
         (678) 261-7803
         align@ethoscommunication.com
 
Press spacebar to pause and continue. Press esc to stop.