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Align Tech gives low 4Q outlook, cuts jobs

SAN JOSE, Calif. (AP) -- Align Technology Inc. said Wednesday that it expects to reach only the low end of its guidance for earnings per share in the fourth quarter because of continued weakness in the dental market and business disruptions caused by Superstorm Sandy.

The maker of the Invisalign clear-braces system also said it will eliminate 25 jobs as it restructures some of its operations. Align said it will take $2.1 million in severance charges, with most of those costs coming in the fourth quarter. The company had 3,090 employees as of Sept. 30.

In October, the company forecast net income of 21 to 23 cents per share in the fourth quarter on revenue of $134.2 million to $137.8 million.

Analysts currently expect net income of 23 cents per share and $136 million in revenue, according to FactSet.

Shares of Align Technology dropped $1.41, or 5.4 percent, to $24.73 in aftermarket trading following the announcement.