Align Technology, Inc. (ALGN) has reported a 2.57 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $47.62 million, or $0.59 a share in the quarter, compared with $48.88 million, or $0.60 a share for the same period last year.
Revenue during the quarter grew 27.33 percent to $293.20 million from $230.28 million in the previous year period. Gross margin for the quarter expanded 7 basis points over the previous year period to 75.12 percent. Total expenses were 76.68 percent of quarterly revenues, up from 74.23 percent for the same period last year. That has resulted in a contraction of 245 basis points in operating margin to 23.32 percent.
Operating income for the quarter was $68.37 million, compared with $59.34 million in the previous year period.
Commenting on Align's Q4 and 2016 results, Align Technology president and chief executive officer Joe Hogan said, "Q4 was another record quarter for Align, reflecting continued strong growth across all geographies and customer channels compared to the prior quarter last year. These results helped us to exceed $1 billion in annual revenue for the first time in our history. In addition, more than 700 thousand patients started orthodontic treatment with Invisalign clear aligners in 2016, helping us to surpass our 4 millionth Invisalign patient. We also saw strong adoption of our new iTero Element scanner this year, which more than tripled our scanner shipments over the prior year."
For the first-quarter, Align Technology projects revenue to be in the range of $295 million to $298 million. The company projects operating income to grow in the range of 19.10 percent to 19.30 percent. The company forecasts diluted earnings per share to be in the range of $0.64 to $0.67.
Working capital increases sharply
Align Technology, Inc. has recorded an increase in the working capital over the last year. It stood at $598.64 million as at Dec. 31, 2016, up 30.04 percent or $138.31 million from $460.34 million on Dec. 31, 2015. Current ratio was at 2.69 as on Dec. 31, 2016, down from 2.69 on Dec. 31, 2015.
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