Thanks, Joe.
from X.X% our year approximately billion, for foreign QX sequentially million financial impacted ago. QX quarter were second On $X.XXX a approximately $XX.X basis, 'XX up Total quarter a million and unfavorably impacted X.X% exchange prior X.X%. approximately by the approximately unfavorable quarter currency Now up the year-over-year corresponding $XX.X or the were revenues or of for by constant and from were results. X.X% revenues
$XXX.X from Aligner product products million mix and Clear discounts, For QX or shift Clear primarily the due exchange of offset On basis, or year-over-year partially higher 'XX by a lower offset to by approximately sequentially. flat were Clear unfavorably ASPs. impacted X.X% a QX unfavorable revenue approximately revenues volumes were and revenues sequentially, ASP foreign net exchange, price QX On primarily $X.X by Clear impact higher Aligner approximately of Aligner approximately lower revenues revenues of were Aligners, $XX.X basis, foreign up year-over-year million volumes, by million to lower exchange higher unfavorably deferrals, from X.X%. X.X% impacted increases. were foreign a
for year-over-year. and mostly ASP the On decline products sequential impact a For QX, the price revenue, and down a unfavorable foreign Invisalign net primarily ASP foreign comprehensive shift exchange, discounts, from lower products product higher unfavorable ASPs reflects reflects in shift primarily and discounts, comprehensive increases. basis, were a impact by the to year-over-year On decline a ASPs of the lower higher and product basis, mix deferrals in ASP exchange. treatment lower sequentially offset mix to
the in noncomprehensive foreign mix products, to the in mandatory of the ASPs price On U.K. Invisalign impact net aligners sequential customers. revenue ASP deferrals the year-over-year the ASPs lower noncomprehensive QX, reflects decline the to ASP discounts, cost adjustment foreign application increases. neutral impact the a ASPs basis, and and and of products, unfavorable shift On higher to a recently year-over-year. from partially our were make unfavorable a shift treatment decrease a For of down exchange, lower VAT to sequentially offset impact price in by basis, for mix product higher product reflects unfavorable exchange to a
and certain across markets product EMEA in Our in Three America, and Invisalign is Comprehensive Three North available APAC.
to with increase. pleased Three and flexibility gross Comprehensive our upfront, are recognized We Three a revenue continued Three anticipate they adoption and product to margin. Three will and recognize compared revenue and over continue provides favorable of that benefiting doctors the allowing deferred want Invisalign Comprehensive us the product adoption to a Comprehensive us with period while being shorter traditional Invisalign with more more the
are will deferred be of or up Aligner and shipped. decreased the Clear primarily additional QX sheet and X.X% Services X.X% on decreased or $X.X million recognized sequentially revenues sequentially the balance 'XX million aligners revenues year-over-year as 'XX $X.X volumes, related X.X% year-over-year, and higher $XXX.X to higher higher ASPs, were programs revenues, Services million higher increased upgrades upgrades. nonsystems Systems service in revenues. related to revenues, due mostly rental nonsystem leasing due our XX.X% QX and ASPs to revenues and primarily up were to mostly and Systems
are leasing to selling provide and the We we are and operational financial our to In pleased as our the way capabilities be end, for of focused different go-to-market leverage buy. want to able such types our options. on customers, models rental customers to
down due XX.X% sequentially reflects The the service QX the were 'XX recognition approximately or service or applicable revenues a revenues, $XX.X services Systems duration or approximately foreign deferred revenues, the over by unfavorably to On and $XX.X sequentially. deferred were million shorter to recognized was primarily approximately year-over-year approximately sheet the unfavorably or million foreign on down X.X%. million Systems and impacted $X.X basis, exchange and decline ratably period. Systems of revenues initial Services balance purchases. both and and sequentially of exchange revenues which primarily scanner by X.X% impacted year-over-year, Services X% year-over-year, $X.X in of million are Services of contracts
a scanner opportunities reflected rental to is with addition base make Developing large As equipment we our margins. the and we benefit some the a service portfolio the providing reduced in of we scanning, in customers and impact products, programs. But expands customers our both operating by programs and our and capital digital growing meet partners of that business segment leasing The options across a upgrade gross customers our and the benefit and cases, to increasing cost more for of of price introduce sold. us needs progression DSO new equipment structural our our are implemented new our to transformation to choose opportunities is trade-ins scanners in with our natural is our ASPs. they have for may then them at need, lower what for
Moving to gross margin.
was the up facility exchange impacted manufacturing gross sequentially point by manufacturing approximately down due points Aligner primarily gross aligners X.X to year-over-year unfavorably and down by ramp ASPs, the XX.X%, and lower and lower X.X second margin sequentially second quarter to X.X up year-over-year. year-over-year the overall margin lower offset was quarter was a quarter by impact points of due and sequentially unfavorably Clear primarily margin to points additional Clear unfavorable gross foreign spend X.X continue partially foreign points points by for X.X ASPs Second Overall Aligner Poland basis. leveraged spend. and impacted margin for manufacturing higher approximately as we was X.X exchange. gross on XX.X%, down
stated the for million $XX.X due sequential legal On operating up primarily settlements. were X.X% basis, partially by expenses offset lower to Systems QX were sequentially, above. $XXX.X XX.X%, up year-over-year efficiencies. to and X second and Services million, Year-over-year million gross quarter margin record primarily higher compensation, sequentially and gross $XX.X higher was $XX points manufacturing expenses and expenses. reasons margin operating points million, marketing about for by employee Services to in a for up ASPs X.X due primarily and quarter up a outside X.X% the advertising was the due legal second increased Systems services, expenses and operating by settlements year-over-year.
basis, to X.X% non-GAAP excluding certain settlements acquired amortization acquisitions, X.X% and operating compensation, expenses were related year-over-year. other down stock-based sequentially million, of a legal On charges, restructuring, $XXX.X and intangibles down
approximately intangibles which legal the was points a point restructuring, X.X operating points unfavorably up Operating for X.X% sequentially excludes other foreign -- $XXX basis, settlements stock-based points points certain million impacted was margin compensation, charges, XX.X%, quarter and X.X amortization On year-over-year. non-GAAP of to second margin and impacted operating year-over-year. of in by from up X.X X X.X second of XX.X%, and sequentially unfavorable exchange an sequentially margin related resulted acquisitions, Our of down and down income year-over-year. quarter operating
other on QX $X.X quarter of primarily income the Interest QX of income for of quarter The QX compared and due in second exchange, million expense to in an investments. in net that XX.X% an of was included million expense the 'XX foreign in the unfavorable equity XX.X% quarter rate an compared second gain expense GAAP Recall the our and in effective $X.X quarter $X.X of to 'XX. the XX.X% a 'XX to year. tax nonrecurring of first was million second and prior
than in the quarter 'XX rate, of in increase that that tax partially And in QX expenses nondetectable GAAP rate effective an tax expenses. did tax The lower was primarily effective of 'XX. recognized benefit to not second due by was QX first discrete reoccur offset quarter
effective XX%, which reflects in projected the tax rate. our non-GAAP second rate Our long-term quarter tax was
and Second quarter $X.XX was diluted the year. income compared prior share to sequentially $X.XX net $X.XX, down per down
unfavorably second a $X.XX was a per on on $X.XX year-over-year basis up to foreign quarter, net was up the sequential for income EPS share Our diluted $X.XX non-GAAP a due impacted and basis, sequentially On by year-over-year. exchange. $X.XX basis $X.XX and
the Moving sheet. on balance to
As long-term international were our held was year-over-year. million by held million equivalents down million and the cash marketable $XXX.X million balance, securities $XXX.X short- $XXX.X was of and entities. $XXX.X and $XXX our cash, U.S. XXXX, in and million June $XXX.X Of down XX, sequentially million,
our $XXX million repurchases. common we During $XXX.XX QX of stock X.X shares of repurchased 'XX, average market approximately open price at million of an through
common As XXXX, the program. for million XXXX June under $XXX repurchase XX, available stock remains of our of repurchases January
sequentially. million we , States. with GP receivable equity billion United practices accounts balance ortho a and was quarter, Dental, DSO investment across completed multidisciplinary QX the $XX the $X.XXX up a During Heartland in
$XX.X days, quarter $XXX.X XX year. last million. Cash X was up as flow compared approximately approximately up for were continued the Capital expenditures aligner manufacturing from to million. sequentially outstanding flow, increase primarily quarter cash days cash $XXX.X and and from facilities. less was defined QX expenditures, operations sales second operations days capital capacity overall days to to related million, second Our the investments amounted our as Free for X to flow
turning outlook. our Now to
and for beyond control, provide circumstances Assuming following outlook we QX fiscal no business our occur the XXXX.
For QX to and Clear due foreign QX down million of ASPs Aligner exchange $XXX as QX worldwide we Aligner result to a seasonality we XXXX, to be mix. volume range $X expect the in primarily sequentially product to sequentially, billion. Clear be down expect our and be revenues to of
and Systems QX expect to also seasonality. We of Services because down be sequentially revenues
XXXX QX XXXX to XXXX We expect GAAP margin and margin margin. be our margin flat to be operating operating non-GAAP operating QX below GAAP operating QX non-GAAP QX XXXX to
For to fiscal part to we continued mix. XXXX expect unfavorable year-over-year year-over-year, to fiscal revenue X% lower be ASPs X% exchange XXXX, total growth and Aligner Clear in product due up from foreign
revised revenue of our addition, to previously occur launch as instead commercial our of XXXX, capabilities Lumina In iTero anticipated QX restorative in anticipated. with outlook XXXX of reflects
to margin We slightly fiscal margin margin. GAAP non-GAAP operating XXXX expect be margin be to XXXX operating below operating XXXX and above GAAP operating XXXX non-GAAP
expect be support in building $XXX well capital over investments for as approximately Joe as to Joe? We relate continued capacity expenditures Capital XXXX to With comments. million. to of expenditures manufacturing and improvements back construction turn final that, I'll fiscal primarily in it for expansion.
