Align Reports 3Q Loss On Settlement Charge

SANTA CLARA, Calif. (AP) — Dental products company Align Technology Inc. said Thursday that hefty costs for a patent lawsuit settlement caused a third-quarter loss, but adjusted profit topped Wall Street expectations.

The company lost $49.9 million, or 72 cents per share, compared with profit of $5.2 million, or 8 cents per share, during the same period a year prior. Revenue rose 5 percent to $79.3 million from $75.2 million.

In August, the company said it would spend $90 million in a cash-and-stock deal to settle a patent dispute with Danaher Corp. The deal included a $13 million cash payment to Danaher unit Ormco. In June, a jury ruled that Align's Invisalign teeth-straightening system infringed on a patent held by Danaher.

Excluding charges, the company said it earned 13 cents per share. Analysts surveyed by Thomson Reuters expected profit of 5 cents per share on revenue of $73.6 million.

Looking ahead, the company said it expects adjusted profit between 8 cents and 10 cents per share in the fourth quarter, on revenue of $77.5 million to $81 million. Analysts expect profit of 6 cents per share on revenue of $76.4 million.

Shares jumped $1.62, or 10.5 percent, to $17 in after-hours trading. During regular trading, shares rose 44 cents to close at $15.38.