Align Technology, Inc. (ALGN) has reported 71.21 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $69.42 million, or $0.85 a share in the quarter, compared with $40.55 million, or $0.50 a share for the same period last year. Revenue during the quarter surged 30 percent to $310.34 million from $238.72 million in the previous year period. Gross margin for the quarter expanded 26 basis points over the previous year period to 75.92 percent. Total expenses were 80.13 percent of quarterly revenues, up from 77.66 percent for the same period last year. That has resulted in a contraction of 247 basis points in operating margin to 19.87 percent.
Operating income for the quarter was $61.67 million, compared with $53.33 million in the previous year period.
Commenting on Aligns Q1 2017 results, Align Technology president and chief executive officer Joe Hogan said, "2017 is off to a great start with first quarter revenues, volumes, gross margin and EPS above our expectations. For the quarter, net revenues were up 30% year-over-year, driven by strong Invisalign case shipments of 27% year-over-year to a record 38.9 thousand doctors shipped to during the quarter. These results reflect growth from both our North America and International regions, and higher than expected teenage cases across the board, which increased 32% year-over-year. iTero scanner revenues increased 47% year-over-year, and were down sequentially as expected."
For the second-quarter, Align Technology, Inc. projects revenue to be in the range of $340 million to $345 million. The company projects operating income to grow in the range of 21 percent to 21.70 percent for the second-quarter. The company forecasts diluted earnings per share to be in the range of $0.71 to $0.74 for the second-quarter.
Working capital increasesAlign Technology, Inc. has recorded an increase in the working capital over the last year. It stood at $552.61 million as at Mar. 31, 2017, up 8.73 percent or $44.36 million from $508.25 million on Mar. 31, 2016. Current ratio was at 2.51 as on Mar. 31, 2017, down from 2.85 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 40 days for the quarter from 42 days for the last year period. Days sales outstanding went down to 62 days for the quarter compared with 64 days for the same period last year.
Days inventory outstanding has decreased to 21 days for the quarter compared with 33 days for the previous year period. At the same time, days payable outstanding went down to 43 days for the quarter from 55 for the same period last year.
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