Align Technology reported upticks to its aligner and imaging businesses in the fourth quarter of 2022, a year in which revenues fell 5.5%.
Align Technology reported financial results for the fourth quarter of 2022 and fiscal year 2022. The company reported $3.7 billion in total revenue for the year, representing a 5.5% decrease from 2021 totals.
In the fiscal year 2022, Clear Aligner revenues were $3.1 billion, and Imaging Systems and CAD/CAM Services revenues were $662.1 million.
In Q4, total revenues were $901.5 million, up 1.3% sequentially and down 12.6% year-over-year.
“Overall, I’m pleased to report fourth-quarter results that reflect a more stable environment for doctors and their patients than recent quarters, especially in the Americas and EMEA regions, as well as most APAC markets outside of China,” said Joe Hogan, president and chief executive officer of Align Technology. “This is the first quarter in a year that our total revenues and volumes for both scanners and clear aligners increased sequentially.”
Clear aligner revenues were $731.7 million, flat sequentially and down 10.3% year-over-year, while clear aligner volume was up 1.1% sequentially and down 7.5% year-over-year. Clear Aligner revenues were unfavorably impacted by foreign exchange of approximately $13.4 million or 1.8% sequentially and approximately $56.4 million or 7.2% year over year.
Imaging Systems and CAD/CAM Services revenues were $169.9 million, up 7.8% sequentially and down 21.3% year-over-year. Imaging Systems and CAD/CAM Services revenues were unfavorably impacted by foreign exchange of approximately $2.7 million or 1.5% sequentially and approximately $11.2 million or 6.2% year over year.
During Q4, Align Technology incurred a total of $14.3 million of restructuring and other charges, of which $2.9 million was included in the cost of net revenues and $11.5 million was included in operating expenses. Restructuring and other charges included $8.7 million of severance-related costs and $5.6 million of certain lease terminations costs and asset impairments.
“As we move through 2023, I am cautiously optimistic that we will see continued stability and an improving operating environment, but also recognize that the macroeconomic situation is fragile,” said Hogan. “Regardless, we remain confident in our large, untapped market opportunity for digital orthodontics and restorative dentistry.”
Photo 161502890 / Report © Artem Liubchenko | Dreamstime.com