Align Technology reported revenues of $154 million for the first quarter of 2013 (end-March 31), up from $135 million in the same quarter a year ago.
However, the company reported a net loss of $42 million for the quarter, compared with net profit of $21 million in the first quarter of 2012.
"Recent changes in the competitive environment for intraoral scanners including announcements in March 2013 of new low-priced scanners targeted at orthodontists and [general practitioner] dentists in North America caused us to lower our expectations for growth and profitability for our scanner and CAD/CAM services business during Q1 13," the company noted in a press release.
In addition, beginning in the first quarter, Align began consolidating Vivera Retainer shipments down to one shipment per year instead of four shipments per year. As a result, the full amount of Vivera Retainer revenue is now recognized upon shipment rather than ratably over four quarters.
Also, beginning in June, Align will no longer charge a fee associated with midcourse correction orders. Midcourse correction provides Invisalign customers with the option of ordering a treatment adjustment during active treatment if the case is not tracking to the original treatment plan or goals.
As of June 15, Align will include up to three free midcourse correction orders per case in its list prices for Invisalign Full and Invisalign Teen. As a result, Invisalign clear aligner revenues for the first quarter of 2013 were decreased by $2.7 million, representing the revenue deferred to provide free midcourse corrections for open cases that are expected to be eligible for this new policy when it is implemented.
