Sirona Reports Record Fiscal 2013 Fourth Quarter and Full Year Results

  Sirona Reports Record Fiscal 2013 Fourth Quarter and Full Year Results

  *Record fourth quarter revenues of $278.6 million, up 12.6% compared to
    prior year, or up 8.3% constant currency^*. Fiscal year 2013 revenues
    increased 12.5%, or up 11.7% constant currency.
  *Fourth quarter diluted earnings per share of $0.65 on a GAAP reported
    basis compared to $0.62 in the prior year. Fourth quarter non-GAAP
    adjusted EPS^* of $0.81, up 10.8% compared to $0.73 in the prior year.
    Fiscal 2013 EPS of $2.61 on a GAAP reported basis compared to $2.36 in the
    prior year. Fiscal 2013 non-GAAP adjusted EPS^* of $3.41, up 12.4%
    compared to $3.03 in the prior year.
  *Sirona announces fiscal 2014 guidance: revenue growth of 4% to 6% constant
    currency, and non-GAAP adjusted EPS* of $3.60 to $3.70 (reflecting growth
    of approximately 6% to 9%).

Business Wire

LONG ISLAND CITY, N.Y. -- November 22, 2013

Sirona (Nasdaq:SIRO), the dental technology leader, today announced its
financial results for the quarter and fiscal year ended September 30, 2013.

Fourth Quarter Fiscal 2013 vs. Fourth Quarter Fiscal 2012 Financial Results

Revenue was $278.6 million, an increase of $31.2 million or up 12.6% (and up
8.3% on a constant currency basis). The Company's business segments performed
as follows: CAD/CAM Systems increased 35.2% (up 30.3% on a constant currency
basis), Imaging Systems increased 5.5% (up 2.7% on a constant currency basis),
Instruments increased 3.0% (down 2.6% on a constant currency basis), and
Treatment Centers decreased 3.6% (down 8.9% on a constant currency basis).

Revenue in the United States increased another 2.8% on top of last year’s
34.1% growth. Q4 2012 was the first full quarter to benefit from the expanded
exclusivity with Patterson and saw increased demand from the CEREC 27.5 event.
Q4 2013 sales were particularly driven by the delivery of CAD/CAM trade-up
units. Sales in international markets were strong, up 17.0% (up 10.6% constant
currency), led by CAD/CAM and Imaging in Europe. Sales were exceptionally
strong in Germany, which benefited from a CAD/CAM trade-up program as well as
generally increasing demand for products in this segment.

Gross profit was $143.3 million, up $11.2 million. Gross profit margin was
51.4% in the fourth quarter of Fiscal 2013, compared to 53.4% in the prior
year. Gross profit margin as a percent of sales was negatively impacted by
unfavorable product mix which was partially offset by lower deal-related
amortization.

Net income for the fourth quarter of 2013 was $36.2 million, or $0.65 per
diluted share, versus $34.7 million, or $0.62 per diluted share in the prior
year period. Non-GAAP adjusted earnings per diluted share for the fourth
quarter of 2013 was $0.81 compared to $0.73 in the prior year quarter, or an
increase of 10.8%. A reconciliation of the non-GAAP measure to earnings per
share calculated on a GAAP basis is provided in the attached table.

At September 30, 2013, the Company had cash and cash equivalents of $241.7
million and total debt of $75.4 million, resulting in net cash of $166.3
million. This compares to net cash of $75.6 million at September 30, 2012.

Jeffrey Slovin, President and CEO of Sirona commented: “Our record fourth
quarter was led by CAD/CAM’s 30.3% constant currency growth, driven by robust
trade-up programs and new user demand. On a regional basis, Germany had
another exceptional quarter, ending the year with 23.4% growth, constant
currency.”

Mr. Slovin continued: “I am pleased to report that fiscal 2013 was an
extremely successful year filled with many strategic and operational
accomplishments. We delivered on our goals, including double digit top and
bottom line growth. This marks the third consecutive year of double digit
revenue growth which is the result of increasing adoption of Sirona’s
technology and products around the world.”

Fiscal 2013 vs. Fiscal 2012 Financial Results

Revenue was $1,101.5 million, an increase of $122.1 million or up 12.5% (and
up 11.7% on a constant currency basis). The Company's business segments grew
as follows: CAD/CAM Systems increased 22.4% (up 21.6% on a constant currency
basis), Imaging Systems increased 10.0% (up 9.5% on a constant currency
basis), Treatment Centers increased 6.9% (up 5.8% on a constant currency
basis), and Instruments increased 1.0% (flat on a constant currency basis).

Revenue in the United States increased 18.2% and benefitted from strong demand
for our Imaging and CAD/CAM products, the impact of implementation of the
Medical Device Tax in 2013 and anticipated changes in tax benefits in the
first quarter, the delivery of Omnicam trade-ups particularly in the third and
fourth quarters, and the expanded agreement with Patterson. Revenues outside
the United States increased 10.1% (up 9.1% constant currency) and were
particularly driven by Germany, which increased 23.4% at constant currency. In
Germany, we benefitted from orders following the International Dental Show in
Cologne in March 2013, where we introduced a record 25 new products, a
successful trade-up program in the CAD/CAM segment, as well as last-edition
sales of our renowned M1+ treatment center unit.

Gross profit was $591.4 million, up $67.4 million. Gross profit margin was
53.7% for Fiscal 2013, compared to 53.5% in the prior year. Gross profit
margin as a percent of sales was positively impacted by lower deal-related
amortization which more than offset unfavorable product mix.

Fiscal 2013 net income was $146.7 million, or $2.61 per diluted share, versus
$133.8 million, or $2.36 per diluted share in the prior year period. Fiscal
2013 Non-GAAP adjusted earnings per diluted share was $3.41 compared to $ 3.03
in Fiscal 2012, or an increase of 12.4%.

Fiscal 2014 Guidance

Management anticipates fiscal year 2014 constant currency revenue growth to be
in the range of 4% to 6%, and EPS on a non-GAAP adjusted basis* in the range
of $3.60 to $3.70 (reflecting growth of approximately 6% to 9%).

“In fiscal 2014 we continue to see strong demand for our products and expect
to generate solid bottom line leverage. The 4% to 6% revenue guidance range
reflects the difficult comparisons created by this year’s 20% constant
currency growth in our two largest markets, the U.S. and Germany,” said Mr.
Slovin.

Conference Call/Webcast Information

Sirona will hold a conference call to discuss its financial results at 8:30
a.m. Eastern Time on November 22, 2013. The teleconference can be accessed by
calling +1-877-703-6107 (domestic) or +1-857-244-7306 (international) using
passcode # 17519230. The webcast will be available via the Internet at
http://ir.sirona.com, and a presentation relating to the call will be
available on our website. A replay of the conference call will be available
through November 29, 2013 by calling +1-888-286-8010 (domestic) or
+1-617-801-6888 (international) using passcode #73844233. A web archive will
be available for 30 days at www.sirona.com.

About Sirona Dental Systems, Inc.

Sirona, the dental technology leader, has served dealers and dentists
worldwide for more than 130 years. Sirona develops, manufactures, and markets
a complete line of dental products, including CAD/CAM restoration systems
(CEREC), digital intra-oral, panoramic and 3D imaging systems, dental
treatment centers, and handpieces. Visit http://www.sirona.com for more
information about Sirona and its products.

This press release contains forward-looking information about Sirona Dental
Systems, Inc.’s financial results, guidance and estimates, business prospects,
and products and services that involve substantial risks and uncertainties or
other factors that may cause actual results, performance or achievements to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. You can identify
these statements by the use of words such as "may," "could," "estimate,"
"will," "believe," "anticipate," "think," "intend," "expect," "project,"
"plan," "target," "forecast", and similar words and expressions which identify
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements are not guarantees of future
performance and involve known and unknown risks and uncertainties, and other
factors. Readers are cautioned not to place undue reliance on such statements,
which speak only as of the date hereof. For a discussion of such risks,
uncertainties and other matters that could cause actual results to differ
materially, including risks relating to, among other factors, the market for
dental product and services, pricing, future sales volume of the Company's
products, the possibility of changing economic, market and competitive
conditions, dependence on products, dependence on key personnel, technological
developments, intense competition, market uncertainties, dependence on
distributors, ability to manage growth, dependence on key suppliers,
dependence on key members of management, government regulation, acquisitions
and affiliations and currency exchange rate fluctuations, readers are urged to
carefully review and consider various disclosures made by the Company in its
Annual Report on Form 10-K and in its reports on Forms 10-Q and 8-K filed with
the U.S. Securities and Exchange Commission, which can be accessed through the
SEC’s website, www.sec.gov. This presentation contains non-GAAP financial
measures, which should not be viewed in isolation and do not purport to be an
alternative to net income (loss) as an indicator of operating performance or
an alternative to cash flows from operating activities as a measure of
liquidity. The Company assumes no obligation to and expressly disclaims any
obligation to update or revise any forward-looking statements contained in
this document to reflect new information or future events or developments
after the date any such statement is made.

                                                              
SIRONA DENTAL SYSTEMS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
                                                                    
                      UNAUDITED
                      Three month ended             Year ended
                      September 30,                  September 30,
                      2013            2012           2013           2012
                      $'000s (except per share       $'000s (except per share
                      amounts)                       amounts)
Revenue             $ 278,604       $ 247,364      $ 1,101,491    $ 979,351
Cost of sales         135,313         115,285        510,136        455,400
Gross profit          143,291         132,079        591,355        523,951
                                                                    
Selling, general
and                   83,372          76,912         332,849        295,659
administrative
expense
Research and          14,649          12,606         59,575         52,622
development
Provision for
doubtful accounts     (152)           (338)          613            (75)
and notes
receivable
Net other             (2,500)         (2,500)        (14,414)       (10,000)
operating income
Operating income      47,922          45,399         212,732        185,745
                                                                    
(Gain)/loss on
foreign currency      1,848           (382)          12,355         5,873
transactions, net
(Gain)/loss on
derivative            (738)           (2,147)        (421)          (1,961)
instruments
Interest expense,     822             984            3,410          3,767
net
Other                 (1,227)         (529)          (183)          (257)
(income)/expense
Income before         47,217          47,473         197,571        178,323
taxes
Income tax            10,741          12,622         49,022         42,718
provision
Net income            36,476          34,851         148,549        135,605
Less: Net income
attributable to       241             115            1,804          1,773
noncontrolling
interests
Net income
attributable to     $ 36,235        $ 34,736       $ 146,745      $ 133,832
Sirona Dental
Systems, Inc.
                                                                    
Income per share
(attributable to
Sirona Dental
Systems, Inc.
common
shareholders):
- Basic             $ 0.66          $ 0.63         $ 2.67         $ 2.41
- Diluted           $ 0.65          $ 0.62         $ 2.61         $ 2.36
Weighted average      54,980,287      55,128,904     54,979,044     55,524,188
shares - basic
Weighted average      56,090,777      56,388,273     56,213,992     56,755,396
shares - diluted
                                                                    

                                                           
SIRONA DENTAL SYSTEMS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
                                                                 
                                             September 30,       September 30,
                                             2013                2012
                                                                 
                                             $'000s (except per share amounts)
ASSETS
                                                                 
Current assets
Cash and cash equivalents                  $ 241,745           $ 151,088
Restricted cash                              681                 -
Accounts receivable, net of allowance
for doubtful accounts
of $1,588 and $1,408, respectively           145,212             132,569
Inventories, net                             109,175             81,007
Deferred tax assets                          31,370              24,781
Prepaid expenses and other current           32,556              17,622
assets
Income tax receivable                        2,345               2,213
Total current assets                         563,084             409,280
                                                                 
Property, plant and equipment, net of
accumulated depreciation
and amortization of $156,730 and             182,737             143,351
$125,706, respectively
Goodwill                                     672,086             631,077
Intangible assets, net of accumulated
amortization of
$503,130 and $446,447, respectively          301,718             288,556
Other non-current assets                     5,620               9,382
Deferred tax assets                          13,174              12,888
Total assets                               $ 1,738,419         $ 1,494,534
                                                                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                                                                 
Current liabilities
Trade accounts payable                     $ 73,235            $ 51,961
Short-term debt and current portion of       447                 478
long-term debt
Income taxes payable                         9,319               14,906
Deferred tax liabilities                     745                 817
Accrued liabilities and deferred income      162,341             118,075
Total current liabilities                    246,087             186,237
                                                                 
Long-term debt                               75,000              75,000
Deferred tax liabilities                     131,455             122,441
Other non-current liabilities                27,447              16,852
Indebtedness to related parties
Pension related provisions                   65,985              61,629
Deferred income                              34,401              40,000
Total liabilities                            580,375             502,159
                                                                 
Shareholders' equity
Preferred stock ($0.01 par value;
5,000,000 shares authorized;                 0                   0

none issued and outstanding)
Common stock ($0.01 par value;
95,000,000 shares authorized;
                                                                 
57,213,615 shares issued and 54,999,436
shares outstanding at Sept. 30, 2013;
56,598,045 shares issued and 55,051,673      572                 566
shares outstanding at Sept. 30, 2012
Additional paid-in capital                   723,288             699,279
Treasury stock (at cost)
2,214,179 shares held at cost at Sept.
30, 2013;
1,546,372 shares held at cost at Sept.       (111,955)           (69,058)
30, 2012
Excess of purchase price over                (49,103)            (49,103)
predecessor basis
Retained earnings                            584,216             437,471
Accumulated other comprehensive              8,607               (29,797)
income/(loss)
Total Sirona Dental Systems, Inc.            1,155,625           989,358
shareholders' equity
Noncontrolling interests                     2,419               3,017
Total shareholders' equity                   1,158,044           992,375
Total liabilities and shareholders'        $ 1,738,419         $ 1,494,534
equity
                                                                 

                                                           
SIRONA DENTAL SYSTEMS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                 
                                               Year ended        Year ended
                                               September 30,     September 30,
                                               2013              2012
                                               $'000s
Cash flows from operating activities
Net income                                   $ 148,549         $ 135,605
Adjustments to reconcile net income to
net cash provided by operating
activities
Depreciation and amortization                  75,596            77,749
(Gain)/loss on disposal of property,           93                (91)
plant and equipment
(Gain)/loss on derivative instruments          (421)             (1,961)
(Gain)/loss on foreign currency                12,355            5,873
transactions
Deferred income taxes                          (2,665)           (17,274)
Amortization of debt issuance cost             554               631
Share-based compensation expense               12,813            8,623
Changes in assets and liabilities
Accounts receivable                            (13,174)          (38,301)
Inventories                                    (26,778)          8,824
Prepaid expenses and other current             (14,345)          (1,935)
assets
Restricted cash                                (698)             646
Other non-current assets                       (278)             (290)
Trade accounts payable                         16,398            4,600
Accrued liabilities and deferred income        22,857            (6,674)
Other non-current liabilities                  7,555             15,144
Income taxes receivable                        (59)              1,954
Income taxes payable                           (6,327)           8,246
Net cash provided by operating               $ 232,025         $ 201,369
activities
                                                                 
Cash flows from investing activities
Investment in property, plant and              (70,715)          (47,131)
equipment
Proceeds from sale of property, plant          83                105
and equipment
Prepayments for other assets                   -                 (4,612)
Purchase of intangible assets                  (1,194)           (514)
Acquisition of business, net of cash           (35,019)          -
acquired
Net cash used in investing activities        $ (106,845)       $ (52,152)
                                                                 
                                               Year ended        Year ended
                                               September 30,     September 30,
                                               2013              2012
                                               $'000s
Cash flows from financing activities
Repayments of short-term and long-term       $ (98)            $ (434,364)
debt
Proceeds from borrowings                       -                 138,932
Purchase of treasury stock                     (42,897)          (49,309)
Debt issuance cost                             -                 (2,765)
Purchase of shares from noncontrolling         (1,386)           -
interest
Dividend distributions to noncontrolling       (1,435)           (1,689)
interest
Common shares issued under share based         7,926             3,932
compensation plans
Tax effect of common shares exercised          (183)             (181)
under share based compensation plans
Net cash used in financing activities        $ (38,073)        $ (345,444)
                                                                 
Change in cash and cash equivalents            87,107            (196,227)
Effect of exchange rate change on cash         3,550             1,456
and cash equivalents
Cash and cash equivalents at beginning         151,088           345,859
of period
Cash and cash equivalents at end of          $ 241,745         $ 151,088
period
                                                                 

                        
Reconciliation of GAAP and Non-GAAP Information (unaudited)

HISTORICAL
                          
Non-GAAP Adjusted Net
Income Financial
Measures
(unaudited)
                          
                          Three months ended September 30, 2013
                                                                Per Diluted
                          Pre Tax    Tax Impact*   After Tax     Share
                          $'000s, except per share amount
GAAP net income
attributable to Sirona                               $ 36,235    $ 0.65
Dental Systems, Inc.
shareholders
Adjustments
Amortization and
depreciation expense
resulting from the
step-up to fair values    $ 10,457    $    2,378       8,079
of intangible assets
related to past
business combinations
(Gain)/loss on foreign
currency transactions,      1,848          406         1,442
net
(Gain)/loss on              (738)          (176)       (562)       
derivative instruments
Non-GAAP adjusted net
income attributable to                               $ 45,193    $ 0.81
Sirona Dental Systems,
Inc. shareholders
                                                                   
* tax impact calculated
using estimated
effective tax rate of
22.5%
                                                                   
                                                                   
                          Three months ended September 30, 2012
                                                                   Per Diluted
                          Pre Tax    Tax Impact**  After Tax     Share
                          $'000s, except per share amount
GAAP net income
attributable to Sirona                               $ 34,736    $ 0.62
Dental Systems, Inc.
shareholders
Adjustments
Amortization and
depreciation expense
resulting from the
step-up to fair values    $ 11,419    $    3,092       8,327
of intangible assets
related to past
business combinations
(Gain)/loss on foreign
currency transactions,      (382)          88          (470)
net
(Gain)/loss on              (2,147)        (571)       (1,576)     
derivative instruments
Non-GAAP adjusted net
income attributable to                               $ 41,017    $ 0.73
Sirona Dental Systems,
Inc. shareholders
                                                                   
** tax impact
calculated using
estimated effective tax
rate of 26.6%
                                                                   

                        
                          Twelve months ended September 30, 2013
                                                                Per Diluted
                          Pre Tax    Tax Impact**  After Tax     Share
                          $'000s, except per share amount
GAAP net income
attributable to Sirona                               $ 146,745   $ 2.61
Dental Systems, Inc.
shareholders
Adjustments
Amortization and
depreciation expense
resulting from the
step-up to fair values    $ 40,212    $   9,530        30,682
of intangible assets
related to past
business combinations
(Gain)/loss on foreign
currency transactions,      12,355        2,928        9,427
net
(Gain)/loss on              (421)         (100)        (321)
derivative instruments
Other items:
Non-cash remeasurement
of deferred tax assets
and liabilities due to      2,196         -            2,196
an increase in German
trade tax rate
Non-cash compensation
charge for the
revaluation of share
based compensation in       3,764         892          2,872       
connection with the
Transition Agreement
for the departing CEO
and Chairman
Non-GAAP adjusted net
income attributable to                               $ 191,600   $ 3.41
Sirona Dental Systems,
Inc. shareholders

* tax impact calculated
using estimated
effective tax rate of
23.7%
                                                                   
                                                                   
                          Twelve months ended September 30, 2012
                                                                   Per Diluted
                          Pre Tax    Tax Impact**  After Tax     Share
                          $'000s, except per share amount
GAAP net income
attributable to Sirona                               $ 133,832   $ 2.36
Dental Systems, Inc.
shareholders
                                                                   
Adjustments
Amortization and
depreciation expense
resulting from the
step-up to fair values    $ 46,622    $   11,189       35,433
of intangible assets
related to past
business combinations
                                                                   
(Gain)/loss on foreign
currency transactions,      5,873         1,526        4,347
net
(Gain)/loss on              (1,961)       (528)        (1,433)     
derivative instruments
Non-GAAP adjusted net
income attributable to                               $ 172,178   $ 3.03
Sirona Dental Systems,
Inc. shareholders
                                                                   
** tax impact
calculated using
estimated effective tax
rate of 24%
                                                                   

                                                                   
FORWARD-LOOKING
                                                                   
Non-GAAP Adjusted EPS
Guidance (unaudited)
                                                                   
                             Low End of Guidance
                                                                    Per
                                                                       Diluted
                             Pre-Tax           Tax           After     Share
                                               Impact        Tax
                             $ millions, except per share amount
GAAP net income
attributable to Sirona                                    $  175     $ 3.11
Dental Systems, Inc.
shareholders
Adjustments
Amortization and
depreciation expense
resulting from the
step-up to fair values   $   36             $  9          $  27
of intangible assets
related to past business
combinations
(Gain)/Loss Foreign
Currency Transactions,       --                --            --
net**
(Gain)/Loss on
derivative instruments,      --                --            --        
net**
Non-GAAP adjusted net
income attributable to                                    $  202     $ 3.60
Sirona Dental Systems,
Inc. shareholders
                                                                       
                             High End of Guidance
                                                                       Per
                                                                       Diluted
                             Pre-Tax           Tax           After     Share
                                               Impact        Tax
                             $ millions, except per share amount
GAAP net income
attributable to Sirona                                    $  180     $ 3.21
Dental Systems, Inc.
shareholders
Adjustments
Amortization and
depreciation expense
resulting from the
step-up to fair values       36                9             27
of intangible assets
related to past business
combinations
(Gain)/Loss Foreign
Currency Transactions,       --                --            --
net**
(Gain)/Loss on
derivative instruments,      --                --            --        
net**
Non-GAAP adjusted net
income attributable to                                    $  207     $ 3.70
Sirona Dental Systems,
Inc. shareholders
                                                                       
** We are unable to provide estimates for these items because we
are unable to predict the 2014 and long-term impact of foreign
exchange due to unpredictability of future changes in foreign
exchange rates.
                                                                   

To supplement our consolidated financial statements and our business outlook,
we use the following non-GAAP financial measures: (i) non-GAAP adjusted net
income, and (ii) non-GAAP adjusted earnings per diluted share, which exclude,
as applicable, amortization and depreciation expense resulting from the
step-up to fair values of intangible and tangible assets related to past
business combinations gain/loss on foreign currency transactions, gain/loss on
derivative instruments and any related tax effects and to the extent relevant
in a particular period, any other cash or non-cash items that management does
not view as indicative of its ongoing operating performance. Also set forth
above under the heading “FORWARD-LOOKING” are reconciliations of
forward-looking non-GAAP financial measures to the most directly comparable
GAAP financial measures.

Management recognizes that the use of these non-GAAP measures has limitations,
including the fact that they might not be comparable with similar non-GAAP
measures used by other companies and that management must exercise judgment in
determining which types of charges and other items should be excluded from its
non-GAAP financial measures. Management currently compensates for these
limitations by providing full disclosure of each non-GAAP financial measure
and a reconciliation to the most directly comparable GAAP measure. 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 Sirona’s
operating performance in the ordinary, ongoing and customary course of its
operations. Accordingly, management excludes from "core operating performance"
the impact of acquisition-related intangible depreciation and amortization in
order to compare our underlying financial performance to prior periods,
certain charges related to currency revaluation of assets and liabilities that
do not reflect our period-to-period core operating performance, and to the
extent relevant in a particular period, any other cash or non-cash items that
management does not view as indicative of its ongoing operating performance.
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.

Constant Currency: We have included certain revenue information in this press
release on a constant currency basis. This information is a non-GAAP financial
measure. We additionally present revenue on a constant currency basis because
we believe it facilitates a comparison of our operating results from period to
period without regard to changes resulting solely from fluctuations in
currency rates.

Sirona calculates constant currency revenue growth by comparing current period
revenues to prior period revenues with both periods converted at the U.S.
Dollar/Euro average foreign exchange rate for each month of the current
period. The average exchange rate for the three months ended September 30,
2013, was $1.35. The average exchange rate for the fiscal year ended September
30, 2013 was $1.31 and varied from $1.28 to $1.34. For the three months and
full year ended September 30, 2012, an average exchange rate converting Euro
denominated revenues into U.S. Dollars of $1.25 and $1.30, respectively, was
applied.

Our forecasted 2014 constant currency net revenue guidance excludes the impact
of foreign exchange. We are unable to reconcile our projected 2014 constant
currency net revenue growth to our full-year projected 2014 net revenue growth
because we are unable to predict the 2014 and long-term impact of foreign
exchange due to the unpredictability of future changes in foreign exchange
rates. Therefore, we are unable to provide a reconciliation of these measures.

________________________________
^* Non-GAAP adjusted EPS and constant currency growth and results are non-GAAP
financial measures that exclude certain items. Please refer to “Reconciliation
of GAAP and non-GAAP Information (unaudited)” in the attached exhibits for a
description of these items.


Contact:

Sirona Dental Systems, Inc.
Joshua Zable, +1-718-482-2184
Vice President, Investor Relations
joshua.zable@sirona.com
 
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