The announcement arrived amid expectations that revenue and earnings per share will be at the low end of its previously reported fourth quarter guidance.
Roughly 25 full-time employees will be affected, and the company will incur approximately $2.1 million in costs for severance. Those costs, continued softness in the dental market, and the disruption of business caused by Superstorm Sandy led to the reduced expectations for the fourth quarter, the company noted.
While the company saw an 8.4% year-over-year revenue growth in the third quarter of 2012, the results were "disappointing," according to an article on Nasdaq.com. Invisalign sales to orthodontists were anticipated to increase but never met expectations.
In related news, Dana Cambra, vice president of research and development (R&D), has left the company. On an interim basis, Align President and CEO Thomas Prescott will oversee R&D and information technology.
Product and brand marketing veteran Greg Morrow will join Align as vice president and general manager for the clear aligner product line, reporting directly to Tim Mack, senior vice president of marketing and business development. Mack will take on the additional role of general manager for the scanner and CAD/CAM services product line.
As of September 2012, Align had an employee base of approximately 3,090 worldwide.
Align Technology Q3 revenues continue upward trend, October 23, 2012
Align Technology expands aligner material product line, October 22, 2012
Align Technology Q2 profits double, July 20, 2012
Align Technology clarifies ClearCorrect case, July 5, 2012
Align Technology awards $220K for orthodontic research, May 17, 2012
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