Joe. Thanks,
down Now million, impacted $XX.X the year-over-year for X.X% from were approximately year impacted our QX exchange ago. quarter currency financial X.X%. foreign were by unfavorably up or and not quarter million X.X% results. approximately significantly Total $XXX.X from for On constant the revenues sequentially basis, revenues quarter were corresponding third a by QX 'XX and a prior the
lowered foreign by $XX on offset product Aligners by lower-priced by lower mix Clear sequentially. net product exchange per million QX and For 'XX down $X,XXX case not offset discounts products Aligner were deferrals. geographic $XXX.X sequential net QX shipment mix, and lower were partially revenues higher was Clear deferrals. X.X% volume, partially revenue Clear Aligners, by to revenues impacted shift discounts higher basis to QX sequentially, primarily mix, significantly revenue lower due geographic a from of of
X%, exchange a approximately the year-over-year geographic the a million increases, U.K. U.K. tax be VAT higher and price shift QX and were in higher down basis, offset Product the of requires revenues lower ruling reflecting On discounts. from mix decrease Clear partially sales and revenues. higher $XX.X that in unfavorable Aligner lower-priced applied authorities XX% with non-case mix primarily was Aligner a U.K. X.X%, offset from reduction XX% or price along to foreign and 'XX deferrals a impact by the XXXX products, net of lower by ASPs to volumes Clear in This to QX
year-over-year increases. VAT case higher Clear geographic $XX 'XX $XX, product of and down due impact a partially discounts by was $X,XXX offset lower to $XX, of of exchange per mix, unfavorable basis and net U.K. deferrals price and QX, foreign revenue shipment Aligner of on
Three available markets APAC. EMEA Invisalign and and in America, product Three Our across in certain Comprehensive North is
Three We are adoption adoption Comprehensive of product will continued anticipate with the Invisalign continue. and the pleased Three and
want as the each Comprehensive our favorable revenues benefit decreased $XX.X or a Three compared million more which balance while shorter X% provides Invisalign under upfront, they to us and in and us recognized sales aligners Comprehensive turn decreased million X.X% allows recognize be will traditional with are product, recognized margin. doctors gross deferred revenue shipped to more allowing from deferred over being a sequentially Clear $X.X on to Three and period sheet contract. Aligner year-over-year flexibility additional or the revenue
due Systems offset were primarily and leasing rental our to in higher to offset were Services increased up revenue, upgrades nonsystem revenues, XX.X% primarily by down decreased programs and 'XX Services volumes. $XXX related mostly revenue revenue partially partially due higher year-over-year, to and million X.X% and lower higher QX upgrades, mostly by scanner 'XX and QX related scanner volumes. ASPs services sequentially to lower Systems fewer ASP of revenues nonsystem
million and XX.X% Services sequentially service foreign unfavorably revenues approximately $XX.X sequentially to QX of primarily exchange applicable impact duration the shorter services million 'XX scanner over On X.X% basis, Systems foreign Systems are ratably approximately down The reflects Services of to impacted service period. revenues, revenues revenue, a both The primarily of initial $X.X revenues exchange and which and approximately decline million contracts or purchases. and balance the by or year-over-year, $X.X and by recognition year-over-year down recognized the or year-over-year and deferred was was due deferred flat were the sheet Services X.X%. on Systems sequentially. in
to margin. on gross Moving
was year-over-year partially mix points by was year-over-year. points down due down sequentially sequentially overall higher exchange X.X points approximately significantly of to was margin up gross impacted X.X was spend. lower primarily not quarter by and gross unfavorably and aligners, for offset margin Third third margin XX.X%, quarter impacted X.X XX.X%, Overall basis. Aligner by foreign Clear on manufacturing lower gross points X.X sequentially a additional the ASPs and
year-over-year unfavorably quarter margin currency points was partially -- lower due to due basis, sequentially ASPs, primarily partially due Clear Aligner and spend. a offset gross third exchange freight gross by Services quarter Clear On points spend margin gross costs. the the for manufacturing X.X to and was constant Systems lower Aligner foreign offset by for third by down XX.X%, X.X year-over-year. was primarily margin manufacturing points mix, lower by impacted X.X down
year-over-year. was a costs. and up Services unfavorably currency year-over-year Systems gross ASPs, impacted and Services due service On and margin exchange quarter points gross by primarily to offset higher the margin by points third partially X.X basis, constant foreign freight by Systems was higher X.X for
$XX.X compensation. On operating increased million, million X.X% primarily and QX Year-over-year, million, sequential sequentially year-over-year. employee were expenses were compensation. expenses by down operating advertising settlements, and employee down a basis, due X.X% to $XXX.X operating and nonrecurring expenses due primarily legal marketing $XX.X up to
X.X% and basis, were acquisitions, restructuring, up stock-based settlements $XXX.X acquired related other operating On a certain and excluding to million, legal non-GAAP down amortization of charges compensation, year-over-year. expenses intangibles X.X% sequentially
of an points and charges, amortization operating primarily quarter for by million the which $XXX.X year-over-year. an expense to $X.X approximately compensation, margin income up year-over-year. acquisitions, 'XX margin legal and $X.X X.X income points to XX.X%, for quarter was related $X.X and operating third of sequentially 'XX. was the X.X non-GAAP sequentially sequentially expense QX of year-over-year.
On of exchange stock-based million, XX.X%, of operating restructuring, Our points Operating margin to in and point income impacted from net resulted down and of impacted in quarter down favorably settlements of million of of expense intangibles excludes certain QX was third an million X.X points compared other up third Interest a other foreign an X.X foreign X.X X.X and and basis, due unfavorably in points exchange
prior tax The quarter XX.X% in of third and effective in XX.X% the the quarter year. the the GAAP in third to rate second XX.X% quarter compared was
quarter tax GAAP position offset rate the increase in return tax due than adjustments related to rate quarter effective primarily tax uncertain third tax to lower partially small effective The filings, was a reserves. by second
third application issued of was to GAAP prior third in guidance to higher tax the a third the quarter rate primarily during year. tax quarter the rate related prior The effective in quarter, benefit effective due tax than quarter recognizing third year the the onetime of the
Our non-GAAP third our which long-term the projected rate XX%, tax reflects tax in was effective rate. quarter
prior net and diluted $X.XX, quarter third the sequentially year. per down income up The share was compared $X.XX $X.XX to
share On primarily impacted favorably to and income and a for exchange due basis. $X.XX was net basis, on quarter, per a a the year-over-year. unfavorably due up year-over-year on by $X.XX non-GAAP EPS down $X.XX was by diluted sequential Our foreign impacted sequentially third $X.XX $X.XX basis
on Moving to sheet. the balance
XX, entities. As million $XXX.X million $X.XXX down was [ by the in $XXX.X cash XXXX, and year-over-year. our held and were and Of balance, our of million held cash ], sequentially billion up equivalents international U.S. billion $XXX September $X.XXX was $XXX.X million
common $XXX stock have January We available for million repurchase our our repurchase under of program. XXXX
Beginning expect a our an QX XXXX accounts QX accelerated was open $XXX $X.XXX common and receivable of billion, stock down in through market agreement. repurchase repurchase either million of continued QX we 'XX or sequentially. to into combination balance up to repurchases stock
approximately Our year. X last up overall sales outstanding as X day QX was XX days days to approximately days sequentially and up compared
quarter million. Free cash $XXX.X Cash amounted related flow $XXX.X $XX.X flow were million, primarily less as for third our investments for from operations flow, manufacturing operations and the cash expenditures in million. expenditures to defined quarter third capacity facilities. capital to Capital from was the
Turning to our XXXX outlook.
occur Assuming fourth we for following circumstances including control, exchange, the no beyond outlook business foreign quarter. our expect the
$X.XXX $XXX We billion. revenues expect the to range be QX of 'XX in worldwide to million
slightly and Aligner Clear 'XX volume QX up ASPs expect We sequentially. to be
consistent typical We Services QX 'XX and revenues sequentially Systems seasonality. up with QX be to expect
operating QX to margin than GAAP related XX% restructuring due lower be impacted expect We slightly severance to to 'XX employees. charges for primarily
restructuring impact these QX 'XX slightly points. operating QX non-GAAP estimate operating approximately will GAAP margin anticipate margin We by sequentially. X to 'XX We up be charges
as expansion. we million. in expect well to building XXXX, improvements of construction capacity primarily $XXX support and expenditures expenditures relate be fiscal above investments to Capital capital For manufacturing in continued as
them have responsibly. our to patients said while to treat the doctors managing we need and evaluate tools our and that As operations continually they best many with resources their evolve model provide business we times, help
our more closely environment. business Today's designed the adjust is with to align existing restructuring business action to
today announced we even year us XXXX expect the restructuring as full up printing give will for in accretion margin direct we XD next-generation scale our fabrication We actions manufacturing.
With that, comments. over it back final Joe I'll for to turn Joe?
