Align Technology, Inc. (ALGN) has reported an 86 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $51.37 million, or $0.63 a share in the quarter, compared with $27.62 million, or $0.34 a share for the same period last year. Revenue during the quarter surged 34.17 percent to $278.59 million from $207.64 million in the previous year period. Gross margin for the quarter contracted 80 basis points over the previous year period to 75.09 percent. Total expenses were 77.72 percent of quarterly revenues, down from 81.68 percent for the same period last year. This has led to an improvement of 396 basis points in operating margin to 22.28 percent.
Operating income for the quarter was $62.08 million, compared with $38.05 million in the previous year period.
"Q3 was a solid quarter with revenue, margins and EPS above the high end of our guidance. Our results were driven by record Invisalign case volume, up 20.5% year-over-year reflecting growth across all customer channels and geographies, as well as continued demand for iTero scanners," said Joe Hogan, Align Technology president and chief executive officer.
For the fourth-quarter 2016, Align Technology, Inc. projects revenue to be in the range of $289.20 million to $293.90 million. The company projects operating income to grow in the range of 23 percent to 23.90 percent. It company forecasts diluted earnings per share to be in the range of $0.64 to $0.67.
Working capital increases
Align Technology, Inc. has recorded an increase in the working capital over the last year. It stood at $568.72 million as at Sep. 30, 2016, up 21.72 percent or $101.50 million from $467.22 million on Sep. 30, 2015. Current ratio was at 2.66 as on Sep. 30, 2016, down from 2.91 on Sep. 30, 2015. Cash conversion cycle (CCC) was almost stable at 41 days for the quarter, when compared with the last year period. Days sales outstanding were almost stable at 65 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 17 days for the quarter compared with 32 days for the previous year period. At the same time, days payable outstanding went down to 42 days for the quarter from 57 for the same period last year.
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