Align Tech falls in pre-market on decline in Q2 earnings
Orthodontics manufacturer Align Technology Inc. (Nasdaq:ALGN) is off 15% in pre-market trading today after announcing after Tuesday’s close a decline in its second-quarter earnings. Net profit was $4 million, or $0.06 per share, compared to net profit of $13.6 million, or $0.19 per share, for the same quarter a year earlier. Net revenues for the quarter ended June 30 were $79.9 million, compared with $76.6 million for the same period a year ago. The company said it encountered challenges from the weak economy and dips in consumer spending. The Santa Clara, Calif.-based company said it would take measures to reduce operating expenses.
“As consumer spending has continued to soften, so has our outlook for revenue growth. As a result, we're reducing overall company spending and slowing headcount growth while preserving the important investments in strategic priorities. Unfortunately, valued employees will be affected, and those are decisions that the management team and I do not take lightly. These actions are only the first steps in actively reducing our cost structure and moving towards a financial model with greater operating leverage,” said Thomas M. Prescott, president and CEO, in a statement.
Ahead of the opening, shares are at $9.52, down $1.67 from Tuesday’s close.
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