Align Technology, Inc. Q2 2010 Earnings Call Transcript

Overall, Q2 volumes were strong, particularly for our international channel which helped drive sequential and year-over-year growth for Align. We are pleased to see continued strong interest among our leading customers.

At key customer events including the AAO and CDA in North America and several smaller meetings in Europe, we’ve had a chance to spend time with many of our customers and gain a current view of how they’re doing and what we can do to help continue or we can continue to help to them grow their businesses.

On a sequential basis, we also saw improvement with our lower volume customers. Field sales reps in North America continue to focus their efforts on helping those doctors that want to increase their confidence in treating with Invisalign and grow their practices.

A significant number of our lower volume customers are very interested in increasing their use of Invisalign and practice development programs such as Invisalign days in which a full day is allocated for Invisalign consultations in case management have been particularly helpful for those practices.

The primary way we’re building our business is to continue driving adoption of Invisalign into existing practices while expanding our customer base by training the right practices in North America and internationally.

We made progress in both these areas in Q2, so let’s review the key metrics that measure our performance. Utilization rates are what we call same practice sales of our product and the number of new doctors trained. In Q2, total utilization increased across our customer base and was up again both sequentially and year-over-year to 3.7 cases per quarter. This is compared to 3.5 in Q1 and 3.0 in the same quarter last year and reflects an increase of 6% and 23% respectively.

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