Align Technology Announces First Quarter Fiscal 2011 Results

-- Q1 net revenues of $104.9 million increased 16.4% year-over-year
-- Q1 GAAP diluted EPS was $0.20 and Q1 Non-GAAP diluted EPS was $0.21
-- Q1 record case shipments of 71.4 thousand increased 12.2% year-over-year

SAN JOSE, Calif., April 20, 2011 (GLOBE NEWSWIRE) -- Align Technology, Inc.
(Nasdaq:ALGN) today reported financial results for the first quarter of fiscal
2011 ended March 31, 2011.

Total net revenues for the first quarter of fiscal 2011 (Q1 11) were $104.9
million compared to $92.9 million reported in the fourth quarter of 2010 (Q4 10)
and compared to $90.1 million reported in the first quarter of 2010 (Q1 10).
Invisalign case shipments for Q1 11 were a record 71.4 thousand, compared to
63.5 thousand in Q4 10 and compared to 63.6 thousand in Q1 10.

Gross margin for Q1 11 was 78.4%, compared to 77.2% in Q4 10 and 77.4% in Q1 10.
The sequential increase in gross margin primarily reflects higher case volume.

Net profit for Q1 11 was $15.8 million, or $0.20 per diluted share. This is
compared to net profit of $9.9 million, or $0.13 per diluted share in Q4 10 and
net profit of $14.9 million, or $0.19 per diluted share in Q1 10. Q1 11 net
profit includes pre-tax Cadent acquisition-related transaction costs of $1.5
million. Q4 10 net profit includes pre-tax litigation settlement costs of $1.2
million related to the settlement of the Leiszler class action lawsuit and Q1 10
net profit includes pre-tax Ormco royalties of $827 thousand.

"I'm pleased to report strong first quarter results with revenue, case
shipments, and EPS above the high end of our guidance," said Thomas M. Prescott,
Align president and CEO. "The strength we saw in the business toward the end of
2010 continued throughout the first quarter of 2011, particularly for North
American Orthodontists. This positive trend reflects increased patient traffic
in our customers' offices, along with renewed interest in high-value procedures
like Invisalign. In addition, we had good execution in the business and were
able to achieve traction from the new Advantage Rebate program and success with
practice development programs that help customers build sustainable practice
growth."

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 and non-GAAP earnings per share.
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 Q1 11 was $16.9 million, or $0.21 per diluted share.
This is compared to non-GAAP net profit of $11.0 million, or $0.14 per diluted
share in Q4 10 and non-GAAP net profit of $15.5 million, or $0.20 per diluted
share in Q1 10.

Q1 11 Operating Results
------------------------------

Key GAAP Operating Results Q1 11 Q4 10 Q1 10
---------- ---------- ----------
Gross Margin 78.4% 77.2% 77.4%
Operating Expense $61.2M $57.0M $49.0M
Operating Margin 20.0% 15.9% 23.0%
Net Profit $15.8M $9.9M $14.9M
Earnings Per Diluted Share
(EPS) $0.20 $0.13 $0.19

Key Non-GAAP Operating Results Q1 11 Q4 10 Q1 10
---------- ---------- ----------
Non-GAAP Gross Margin 78.4% 77.2% 78.3%
Non-GAAP Operating Expense $59.7M $55.7M $49.0M
Non-GAAP Operating Margin 21.5% 17.2% 23.9%
Non-GAAP Net Profit $16.9M $11.0M $15.5M
Non-GAAP Earnings Per Diluted
Share (EPS) $0.21 $0.14 $0.20

Total stock-based compensation expense included in Q1 11 was $4.3 million
compared to $3.9 million in Q4 10 and compared to $3.5 million in Q1 10. Stock
based compensation expense included in GAAP gross margin was $0.5 million in Q1
11 and $0.4 million in Q4 10 and Q1 10. Stock-based compensation expense
included in GAAP operating expense in Q1 11 was $3.8 million compared to $3.5
million in Q4 10, and $3.0 million in Q1 10.

Liquidity and Capital Resources

As of March 31, 2011, Align Technology had $322.6 million in cash, cash
equivalents, and marketable securities compared to $312.4 million as of December
31, 2010.

Key Business Metrics

The following table highlights business metrics for Align Technology's first
quarter of 2011. Additional historical information is available on the Company's
website at http://investor.aligntech.com.

Q1 11/Q4
% of Total 10
Revenue by Channel ($M): Q1 11 Revenue % Change
---------- ---------- ----------
North American Orthodontists $35.0 33.4% 21.1%
North American GP Dentists $39.3 37.4% 16.1%
International $25.2 24.0% 1.4%

Non-case Revenue* $5.4 5.2% 1.3%
---------- ---------- ----------

Total Revenue $104.9 100% 12.9%
========== ========== ==========

Q1 11/Q4
% of Total 10
Revenue by Product ($M): Q1 11 Revenue % Change
---------- ---------- ----------
Invisalign Full $71.1 67.8% 9.6%
Invisalign Express/Lite $10.1 9.6% 20.7%
Invisalign Teen $11.9 11.3% 11.7%
Invisalign Assist $6.4 6.1% 72.0%

Non-case Revenue* $5.4 5.2% 1.3%
---------- ---------- ----------

Total Revenue $104.9 100% 12.9%
========== ========== ==========
*includes training, ancillary products, and retainers

Q1 11/Q4
% of Total 10
Cases Shipped by Channel: Q1 11 Revenue % Change
---------- ---------- ----------
North American Orthodontists 26,890 37.7% 22.6%
North American GP Dentists 28,290 39.6% 11.9%

International 16,190 22.7% (0.6%)
---------- ---------- ----------

Total Cases Shipped 71,370 100% 12.4%
========== ========== ==========

Q1 11/Q4
% of Total 10
Cases Shipped by Product: Q1 11 Revenue % Change
---------- ---------- ----------
Invisalign Full 48,110 67.4% 9.7%
Invisalign Express/Lite 10,500 14.7% 18.3%
Invisalign Teen 7,930 11.1% 14.2%

Invisalign Assist 4,830 6.8% 26.9%
---------- ---------- ----------

Total Cases Shipped 71,370 100% 12.4%
========== ========== ==========

Average Selling Price (ASP),
as billed: Q1 11
----------
Total Worldwide Blended ASP $1,395
International ASP $1,555

Number of Doctors Cases were
Shipped to: Q1 11
----------
North American Orthodontists 4,150
North American GP Dentists 10,250

International 4,150
----------
Total Doctors Cases were
Shipped to Worldwide 18,550
==========

Doctor Utilization Rates*: Q1 11 Q4 10 Q1 10
---------- ---------- ----------
North American Orthodontists 6.5 5.6 5.5
North American GP Dentists 2.8 2.6 2.6

International 3.9 3.9 3.7
---------- ---------- ----------

Total Utilization Rate 3.9 3.6 3.5
========== ========== ==========
* Utilization = # of cases shipped/# of doctors to whom cases were
shipped

Number of Doctors Trained
Worldwide: Q1 11 Cumulative
---------- ----------
North American Orthodontists 75 9,345
North American GP Dentists 715 37,835

International 165 17,600
---------- ----------
Total Doctors Trained
Worldwide 955 64,780
========== ==========

Total Invisalign Patients
(cases shipped): Q1 11 Cumulative
---------- ----------
Number of Patients Treated or
in Treatment (cases) 71,370 1,496,890
========== ==========

Cadent Acquisition

On March 29, 2011 Align Technology, Inc. announced that it signed a definitive
agreement to acquire privately-held Cadent Holdings, Inc. (Cadent), a leading
provider of 3D digital scanning solutions for orthodontics and dentistry based
in Carlstadt, New Jersey. Cadent strengthens Align's ability to drive adoption
of Invisalign by integrating Invisalign treatment more fully with mainstream
tools and procedures in doctors' practices. The combination of the two companies
will help accelerate the use of intra-oral scanning in the dental industry by
leveraging Align's global sales reach, extensive professional and consumer
marketing capabilities and base of over 55 thousand ClinCheck software users. As
part of an ongoing program to evaluate interoperability of intra-oral scanning
systems for future use with Invisalign treatment, Align is in final beta tests
with Cadent's systems and expects to announce interoperability for their
scanners in the second quarter of 2011.Under the terms of the agreement, the
Company will pay approximately $190 million in cash in exchange for all shares
of Cadent. On April 13, the Company received early termination of the waiting
period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended (HSR Act) with respect to its proposed acquisition of Cadent Holdings,
Inc. The acquisition of Cadent, announced on March 29, remains subject to other
customary closing conditions. The Company expects the transaction to close in
late April or early May 2011.

Q2 Fiscal 2011 Business Outlook for Align Technology Only (Excludes Acquisition
of Cadent)

For the second quarter of fiscal 2011 (Q2 11), Align Technology expects net
revenues to be in a range of $106.5 million to $110.5 million. GAAP earnings per
diluted share for Q2 11 is expected to be in a range of $0.13 to $0.15. A more
comprehensive business outlook is available following the financial tables of
this release.

Align Web Cast and Conference Call

Align Technology will host a conference call today, April 20, 2011 at 4:30 p.m.
ET, 1:30 p.m. PT, to review its first quarter fiscal 2011 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 369895 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 May 3, 2011.

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. Today, the Invisalign product family includes Invisalign,
Invisalign Teen, Invisalign Assist, Invisalign Express, and Vivera Retainers.

To learn more about Invisalign or to find an Invisalign trained doctor in your
area, please visit www.invisalign.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 revenue, 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,
royalties associated with the settlement with Ormco, the impacts of litigation
settlements, acquisition-related costs and any related tax effects. 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. For more information on these
non-GAAP financial measures, please see the tables captioned "Business Outlook
Summary" included at the end of this release.

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, revenues 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.

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 2011, including anticipated revenue, gross margin, operating
expense, operating income, earnings per share, case shipments and cash, whether
and when the transactions contemplated by the merger agreement with Cadent will
be consummated, as well as the expected timing of interoperability for Cadent
scanners. 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 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, continued customer demand for Invisalign 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
Invisalign 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 manufacturers of
traditional braces and new competitors, Align's ability to develop and
successfully introduce new products and product enhancements, the loss of key
personnel, the timing of completion of the Cadent acquisition, and the
satisfaction of the various conditions to the closing of the Cadent acquisition.
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, 2010,
which was filed with the Securities and Exchange Commission on February 26,
2011. 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
---------------------

March 31,
March 31,
2011 2010
---------- ---------

Net revenues $ 104,856 $ 90,090

Cost of revenues 22,630 20,380
---------- ---------

Gross profit 82,226 69,710
---------- ---------

Operating expenses:
Sales and marketing 32,821 27,946
General and administrative 18,992 14,951

Research and development 9,390 6,116
---------- ---------

Total operating expenses 61,203 49,013
---------- ---------

Profit from operations 21,023 20,697

Interest and other income
(expense), net 89 (553)
---------- ---------

Profit before income taxes 21,112 20,144

Provision for income taxes 5,271 5,214
---------- ---------

Net profit $ 15,841 $ 14,930
========== =========

Net profit per share

- basic $ 0.21 $ 0.20
========== =========

- diluted $ 0.20 $ 0.19
========== =========

Shares used in computing
net profit per share

- basic 76,844 75,166
========== =========

- diluted 79,361 77,597
========== =========

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

December
March 31, 31,
2011 2010
---------- ----------
ASSETS

Current assets:
Cash and cash equivalents $ 308,608 $ 294,664
Restricted cash 7,991 --
Marketable securities,
short-term 8,328 8,615
Accounts receivable, net 73,904 65,430
Inventories 2,867 2,544

Other current assets 16,243 17,358
---------- ----------
Total current assets 417,941 388,611

Marketable securities,
long-term 5,615 9,089
Property and equipment, net 30,722 30,684
Goodwill and intangible
assets, net 1,966 2,666
Deferred tax asset 38,024 42,439

Other long-term assets 2,714 3,454
---------- ----------

Total assets $ 496,982 $ 476,943
========== ==========

LIABILITIES AND
STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable $ 6,594 $ 7,768
Accrued liabilities 44,201 51,358

Deferred revenue 37,199 33,848
---------- ----------
Total current
liabilities 87,994 92,974

Other long term liabilities 6,883 6,222
---------- ----------

Total liabilities 94,877 99,196

Total stockholders' equity 402,105 377,747
---------- ----------

Total liabilities and
stockholders' equity $ 496,982 $ 476,943
========== ==========

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
-------------------------------

December
March 31, 31, March 31,
2011 2010 2010
--------- --------- ---------

GAAP Gross profit $ 82,226 $ 71,756 $ 69,710

Ormco royalties -- -- 827
--------- --------- ---------

Non-GAAP Gross profit $ 82,226 $ 71,756 $ 70,537
========= ========= =========

Reconciliation of GAAP to
Non-GAAP Operating Expenses
(in thousands)

Three Months Ended
-------------------------------

December
March 31, 31, March 31,
2011 2010 2010
--------- --------- ---------

GAAP Operating expenses $ 61,203 $ 56,986 $ 49,013
Litigation settlement -- (1,239) --
Acquisition related transaction
costs (1,481) -- --
--------- --------- ---------

Non-GAAP Operating expenses $ 59,722 $ 55,747 $ 49,013
========= ========= =========

Reconciliation of GAAP to
Non-GAAP Profit from Operations
(in thousands)

Three Months Ended
-------------------------------

December
March 31, 31, March 31,
2011 2010 2010
--------- --------- ---------

GAAP Profit from operations $ 21,023 $ 14,770 $ 20,697
Ormco royalties -- -- 827
Litigation settlement -- 1,239 --
Acquisition related transaction
costs 1,481 -- --
--------- --------- ---------

Non-GAAP Profit from operations $ 22,504 $ 16,009 $ 21,524
========= ========= =========

Reconciliation of GAAP to
Non-GAAP Net Profit
(in thousands, except per share
amounts)

Three Months Ended
-------------------------------

December
March 31, 31, March 31,
2011 2010 2010
--------- --------- ---------

GAAP Net profit $ 15,841 $ 9,905 $ 14,930
Ormco royalties -- -- 827
Litigation settlement -- 1,239 --
Acquisition related transaction
costs 1,481 -- --
Tax effect on non-GAAP
adjustments (379) (179) (216)
--------- --------- ---------

Non-GAAP Net profit $ 16,943 $ 10,965 $ 15,541
========= ========= =========

Diluted Net profit per share:

GAAP $ 0.20 $ 0.13 $ 0.19
========= ========= =========

Non-GAAP $ 0.21 $ 0.14 $ 0.20
========= ========= =========

Shares used in computing diluted
GAAP net profit per share 79,361 78,724 77,597
========= ========= =========
Shares used in computing diluted
non-GAAP net profit per share 79,361 78,724 77,597
========= ========= =========

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.

The outlook figures provided below are for Align's business

only.

Financials

(in millions, except per share amounts and

percentages)

Q2 2011

-----------------------------------------------------------------

GAAP Adjustment
Non-GAAP
------------------ --------------- (a)
------------------

Net Revenue $106.5 - $110.5
$106.5 - $110.5

Gross Profit $83.0 - $86.8
$83.0 - $86.8

Gross Margin 78.0% - 78.5%
78.0% - 78.5%

Operating Expenses $68.1 - $69.1 $5.7 (a)
$62.4 - $63.4

Operating Margin 14.0% - 16.0%
19.4% - 21.1%

Net Income per Diluted

Share $0.13 - $0.15 $0.06
$0.19 - $0.21

Stock Based

Compensation Expense:

Cost of Revenues $0.5
$0.5

Operating Expenses $4.5
$4.5
------------------
------------------
Total Stock Based

Compensation Expense $5.0
$5.0

(a) Cadent related

transaction costs

Business Metrics:

Q2 2011

------------------

Case Shipments 72.5K - 75.0K

Cash $340M - $345M

Capex $3.0M - $5.0M

Depreciation &

Amortization $2.0M - $3.0M

Diluted Shares

Outstanding 81M

Full Year 2011: FY 2011

------------------

Diluted Shares

Outstanding 81M

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