IRVINE, CA -- (Marketwire) -- 08/07/08 -- BIOLASE Technology, Inc. (NASDAQ: BLTI), the
world's leading dental laser company, today reported operating results for
its second quarter and first six months ended June 30, 2008.
Net revenue for this year's second quarter and first six months was $18.7
million and $37.7 million, respectively, up from $18.2 million and $33.2
million in the respective prior year periods. Gross profit for the second
quarter and first six months of 2008 increased $97,000 and $1.5 million,
respectively. Gross margin as a percentage of sales decreased to 54
percent and 52 percent of net revenue as compared with 55 percent of net
revenue for both the second quarter and first six months of 2007.
Operating expenses in this year's second quarter and first six months were
$9.7 million and $19.9 million compared to operating expenses of $10.9
million and $20.9 million in the respective prior year periods. Net income
for the second quarter of 2008 was $622,000, or $0.03 per share, compared
with a net loss of $901,000, or $0.04 loss per share, in the same period of
2007. For this year's first six months, net income was $648,000, or $0.03
per share, compared with a net loss of $2.6 million, or $0.11 loss per
share.
Other income in this year's second quarter and first six months increased
$81,000 and $542,000 including a gain on foreign currency of $225,000 and
$841,000, respectively, compared to a gain of $15,000 and $68,000 in the
same periods of 2007.
BIOLASE Chief Executive Officer Jake St. Philip said the two consecutive
quarters of profitability in a challenging economic environment were
encouraging and that the Company continues to push forward on
organizational initiatives designed to bring BIOLASE to a normalized
pattern of growth and profitability. He also noted that the Company is
pleased with the improved performance in the domestic markets, which was a
major focus for the first six months, and has initiated short-term
corrective actions and longer-term planning to improve what has been a
disappointing performance in international markets.
"We believe our new strategy is sound and, while any new strategy takes
time to gain traction, it will ultimately prove itself in the marketplace,"
St. Philip said. "We have improved our relationship with Henry Schein,
reorganized our domestic sales team and processes, and have a new emphasis
on market segmentation and corresponding product development programs.
Many of those programs are underway and the organization is responding
well; cost controls continue to be strong and while we still anticipate
somewhat uneven revenue growth in the near term, the team has made a great
deal of progress toward our goals."
In July, the quarter was capped off by the introduction of the Waterlase®
C100, a product that rounds out the Company's hard-tissue offering and
provides a solution for practices that seek a device with fewer features
than the Waterlase® MD at a lower price point. First customer deliveries
of the new Waterlase C100 are expected to begin by the end of this year's
third quarter.
"While overall sales grew 3 percent year-over-year in the second quarter,
Waterlase sales experienced a 7 percent decline due to weaker international
performance. The summer months traditionally make the third quarter a more
challenging one, so this is an ideal time for launching our new two-tiered
product strategy. There may be some transitional impact of these changes
in the third quarter, but we are confident in the long-term benefits of our
strategy," St. Philip added.
As of June 30, 2008, the balance sheet showed cash and cash equivalents of
$14.5 million, total assets of $38.6 million and total stockholders' equity
of $18.6 million. As of June 30, 2008, the Company also paid off all of
its outstanding debt, which totaled $3.6 million as of December 31, 2007
and $2 million as of March 31, 2008.
Conference Call
As previously announced, the Company will host a conference call today at
4:30 p.m. Eastern Time to discuss its operating results for the second
quarter and first six months ended June 30, 2008 and to answer questions.
Slides will be used during this call. Directions for accessing the slides
can be found below.
Phone Participation
To listen to the conference call live via telephone, please dial
1-800-762-8908 from the U.S. or, for international callers, please dial
+1-480-248-5085, approximately 10 minutes before the start time. In order
to access the slides that will be used on the call, click on the link
provided on the Investors section of the BIOLASE website at www.biolase.com
to listen to the event, register and select the "No Audio, Slides Only"
option.
Webcast Participation
To listen to the conference call live and view the slide presentation via
the Internet, visit the Investors section of the BIOLASE website at
www.biolase.com. Please go to the website 15 minutes prior to the call to
register, download and install the necessary software.
Replay
A telephone replay will be available for two days by dialing 1-800-406-7325
from the U.S., or +1-303-590-3030 for international callers, and entering
passcode number 3904490. In addition, a replay will be available on
BIOLASE's website.
About BIOLASE Technology, Inc.
BIOLASE Technology, Inc. (http://www.biolase.com), the world's leading
dental laser company, is a medical technology company that develops,
manufactures and markets lasers and related products focused on
technologies that advance the practice of dentistry and medicine. The
Company's products incorporate patented and patent pending technologies
designed to provide clinically superior performance with less pain and
faster recovery times. BIOLASE's principal products are dental laser
systems that perform a broad range of dental procedures, including cosmetic
and complex surgical applications. Other products under development address
ophthalmology and other medical and consumer markets.
This press release may contain forward-looking statements within the
meaning of safe harbor provided by the Securities Reform Act of 1995 that
are based on the current expectations and estimates by our management.
These forward-looking statements can be identified through the use of words
such as "anticipates," "expects," "intends," "plans," "believes," "seeks,"
"estimates," "may," "will," and variations of these words or similar
expressions. Forward-looking statements are based on management's current,
preliminary expectations and are subject to risks, uncertainties and other
factors which may cause the Company's actual results to differ materially
from the statements contained herein, and are described in the Company's
reports it files with the Securities and Exchange Commission, including its
annual and quarterly reports. No undue reliance should be placed on
forward-looking statements. Such information is subject to change, and we
undertake no obligation to update such statements.
-- TABLE FOLLOWS --
BIOLASE TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------
Products and services revenue $ 17,795 $ 17,148 $ 35,832 $ 31,248
License fees and royalty revenue 868 1,029 1,872 1,989
-------- -------- -------- --------
Net revenue 18,663 18,177 37,704 33,237
Cost of revenue 8,556 8,167 18,015 15,090
-------- -------- -------- --------
Gross profit 10,107 10,010 19,689 18,147
-------- -------- -------- --------
Operating expenses:
Sales and marketing 5,052 6,934 10,657 13,327
General and administrative 3,398 2,802 6,475 5,179
Engineering and development 1,271 1,197 2,732 2,407
-------- -------- -------- --------
Total operating expenses 9,721 10,933 19,864 20,913
-------- -------- -------- --------
Profit (loss) from operations 386 (923) (175) (2,766)
-------- -------- -------- --------
Gain on foreign currency
transactions 225 15 841 68
Interest income 26 126 84 278
Interest expense (36) (7) (60) (23)
-------- -------- -------- --------
Non-operating income, net 215 134 865 323
-------- -------- -------- --------
Income (loss) before income tax
provision 601 (789) 690 (2,443)
Income tax (benefit) provision (21) 112 42 181
-------- -------- -------- --------
Net income (loss) $ 622 $ (901) $ 648 $ (2,624)
======== ======== ======== ========
Net income (loss) per share:
Basic $ 0.03 $ (0.04) $ 0.03 $ (0.11)
======== ======== ======== ========
Diluted $ 0.03 $ (0.04) $ 0.03 $ (0.11)
======== ======== ======== ========
Shares used in the calculation of
net income (loss) per share:
Basic 24,164 23,841 24,110 23,816
======== ======== ======== ========
Diluted 24,358 23,841 24,326 23,816
======== ======== ======== ========
BIOLASE TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(in thousands, except per share data)
June 30, 2008 December 31, 2007
---------------- -----------------
ASSETS
Current assets:
Cash and cash equivalents $ 14,507 $ 14,566
Accounts receivable, less allowance
of $1,018 and $1,033 in 2008 and
2007, respectively 5,354 11,266
Inventory, net 9,340 7,627
Prepaid expenses and other current
assets 1,288 2,317
---------------- ----------------
Total current assets 30,489 35,776
Property, plant and equipment, net 3,805 4,040
Intangible assets, net 1,023 1,208
Goodwill 2,926 2,926
Deferred tax asset 65 50
Other assets 307 308
---------------- ----------------
Total assets $ 38,615 $ 44,308
================ ================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Line of credit $ -- $ 3,552
Accounts payable 7,208 6,151
Accrued liabilities 6,209 9,431
Deferred revenue, current portion 4,068 5,649
---------------- ----------------
Total current liabilities 17,485 24,783
Deferred tax liabilities 379 342
Deferred revenue, long-term 1,778 2,236
Other liabilities, long-term 354 456
---------------- ----------------
Total liabilities 19,996 27,817
---------------- ----------------
Stockholders' equity:
Preferred stock, par value $0.001,
1,000 shares authorized, no shares
issued and outstanding -- --
Common stock, par value $0.001,
50,000 shares authorized; 26,204
and 25,967 shares issued and
24,240 and 24,003 shares outstanding
in 2008 and 2007, respectively 27 26
Additional paid-in capital 114,849 113,430
Accumulated other comprehensive gain 114 54
Accumulated deficit (79,972) (80,620)
---------------- ----------------
35,018 32,890
Treasury stock (cost of 1,964 shares
repurchased) (16,399) (16,399)
---------------- ----------------
Total stockholders' equity 18,619 16,491
---------------- ----------------
Total liabilities and
stockholders' equity $ 38,615 $ 44,308
================ ================
For further information, please contact:
David M. Mulder
Chief Financial Officer of BIOLASE Technology, Inc.
+1-949-361-1200
or
Jill Bertotti
Allen & Caron
+1-949-474-4300.
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