Align Technology 1Q profit falls 24 percent on costs

SANTA CLARA, Calif.—Dental products company Align Technology Inc. said Tuesday its first-quarter profit dropped 24 percent due to higher costs but it was still able to beat Wall Street analyst estimates.

For the quarter ended March 31, net income fell to $5.3 million, or 7 cents per share, from $7 million, or 10 cents per share in the prior-year quarter.

Analysts polled by Thomson Financial expected profit of 3 cents per share.

The company's profit was hurt by a $1.8 million gain from a special program in the year-ago quarter. Costs and expenses also increased in the 2008 quarter.

Revenue grew 17 percent to $74.8 million from $63.8 million in the first quarter of 2007. Analysts predicted revenue of $72 million.

Much of the revenue increase came from stronger sales to U.S. dentists, who make up the biggest chunk of the company's revenue. Revenue from international markets also grew significantly.

Shares jumped $1.46, or 14.2 percent, to $11.78 in after-hours trading. During regular trading, shares fell 8 cents to close at $10.32.