Align Technology Inc. (ALGN) yesterday reported financial results for the third quarter of fiscal 2009. Earnings per share were 13 cents, surpassing the Zacks Consensus Estimate of 5 cents and the year-ago earnings of 11 cents. 

Net Sales 
Net sales increased 5.4% year over year to $79.3 million. Growth was driven by higher case shipments in the reported quarter. The total number of cases shipped in the quarter were 56,515, an increase of 6.6% sequentially and 7.0% year over year. 

Operational Metrics 
Align witnessed an expansion in most of its key business metrics. The total number of cases shipped to North American Orthodontists, North American GP Dentists and International increased 7.8%, 8.7% and 0.9%, respectively, compared to that in the prior quarter. In terms of cases shipped by products, Invisalign Full, Invisalign Express, Invisalign Teen, and Invisalign Assist increased 2.3%, 5.3%, 32.2%, and 25.3%, respectively, compared to the prior quarter. 

Total utilization rate − defined as the ratio of the number of cases shipped to the number of doctors to whom cases were shipped − was 3.1, compared to 3.0, both in the prior quarter and year-ago quarter. 

Total worldwide average selling price (ASP) in the quarter was $1,390, compared to $1,400 in the prior quarter and $1,390 in the year-ago quarter. International ASP was $1,560, compared to $1,530 in the prior quarter and $1,660 in the year-ago quarter. 

Balance Sheet 
Align ended the quarter with cash, cash equivalents, and short-term marketable securities of approximately $154.9 million, an increase of roughly 41% in the first nine months of the year. The company has no outstanding debt at the end of the quarter. 

Guidance 
Align has provided guidance for the next quarter. Net revenues are estimated between $77.5 million and $81.0 million. Earnings per share should be in the range of 8 to 10 cents. Total case shipments are estimated in the range of 57,000 to 59,000. Total capital expenditure should be $2.0 million to $4.0 million. 

Align Technology is engaged in the design, manufacture, and marketing of Invisalign, a proprietary system for treating malocclusion, or crooked teeth. Invisalign is approved for the treatment of all types of crooked teeth in patients with mature dentition or fully erupted molars.
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