BIOLASE Technology, Inc. (NASDAQ: BLTI)
- GAAP Revenue of $12.3 Million, up 17 Percent Year over
Year
- GAAP Net Loss of $1.7 Million; Non-GAAP Net Loss of
$872,000
- Excluding One-Time Prepaid Purchase Orders for iLase™ Systems
to Schein in Q1 2011, Revenue of $12.3 Million Represents Growth of
62 Percent Year over Year, from Adjusted Revenue of $7.6 Million in
Q1 2011
- Q2 2012 Revenue Guidance: Approximately $13.0 Million to $14.0
Million
BIOLASE Technology, Inc. (NASDAQ: BLTI), the World's leading
dental laser manufacturer and distributor, today reported unaudited
operating results for its first quarter ended March 31, 2012.
As previously announced, net revenue for this year's first
quarter totaled $12.3 million, up 17 percent from $10.6 million in
the prior year period. Excluding $3.0 million in iLase™ product
sales to Henry Schein (NASDAQ: HSIC) to satisfy one-time prepaid
purchase orders during the first quarter ended March 31, 2011,
revenue in this year's first quarter reflects an increase of $4.7
million, or 62 percent, over adjusted revenue of $7.6 million for
the same period in the prior year.
Federico Pignatelli, Chairman and CEO, said, "In the first
quarter, we executed well across the organization and revenues came
in stronger than we had anticipated for our core laser systems
sales. Internally, we are continuing to reduce our production costs
and improve our gross margin while we invest heavily in sales and
marketing and engineering and development. Our focus in 2012 is on
growth, execution and making intelligent investments in
technologies that have the potential for significant shareholder
returns, and we have made a good start towards all of those goals
in the first quarter."
Approximately 65 percent of BIOLASE's revenues for the 2012
first quarter were from the sale of its all-tissue Waterlase
systems, the vast majority of which were from the sales of the
flagship Waterlase iPlus™. Sales of Waterlase systems for the 2012
first quarter increased 82 percent compared to the same period in
the prior year. Sales of BIOLASE's diode laser systems dropped to
approximately 11 percent of total revenues during the first quarter
of 2012, primarily due to the fulfillment of $3.0 million in iLase
systems during the 2011 first quarter related to the one-time
prepaid purchase orders from Schein.
On a GAAP basis, the net loss for the first quarter of 2012
totaled $1.7 million, or a loss of $0.05 per share, compared to a
net loss of $750,000, or a loss of $0.03 per share, in the 2011
first quarter. After removing non-cash depreciation and
amortization expenses of $125,000, stock-based, other equity
instruments, and other non-cash compensation expenses of $670,000,
and interest expense of $5,000, this year's first quarter resulted
in a non-GAAP net loss of $872,000, or a loss of $0.03 per share,
compared with non-GAAP net income of $153,000, or $0.01 per share,
for the first quarter of 2011.
The percentage of net revenue in the 2012 first quarter from the
U.S. and international markets, including unit sales and
consumables, totaled approximately 68 percent and 32 percent,
respectively, as compared to approximately 81 percent and 19
percent of net revenue in the prior year comparable period.
Recent Highlights A series of recent
actions, developments and key accomplishments include the
following:
- The introduction of the EPIC 10™, the next evolution of
BIOLASE's Total Diode Solution. This next generation, diode
soft-tissue laser will have the shortest pulse available in the
market today. Short pulses are known to cause less thermal damage
in tissue and produce cleaner cuts. In addition, the EPIC 10 will
have a built-in battery for a full day of operation and will be
used as a design platform to build more powerful versions with
different combinations of laser wavelengths. The EPIC 10 was
recently demonstrated at the California Dental Association's annual
tradeshow and several other concurrent dental industry events. The
EPIC 10 is not yet available for sale in the U.S. as it is pending
510k clearance from the Food and Drug Administration ("FDA").
- BIOLASE purchased the remaining inventory of Waterlase MD™
Turbo laser systems from Schein, formerly the Company's exclusive
global distributor. Pursuant to the agreement, the Company
purchased Schein's inventory of Waterlase MD Turbo laser systems
and Schein released its liens on BIOLASE's assets. BIOLASE paid the
entire purchase price by offsetting accounts receivable currently
due from Schein from sales made in the normal course of business.
None of the funds used to offset the purchase price were related to
the original sales of the Waterlase MD Turbo laser systems that
were purchased. BIOLASE plans to use the units primarily as a
source of parts for its newly released Waterlase MDX line of
all-tissue lasers and for its installed base of approximately 6,500
Waterlase MD Turbo laser systems. The Company also plans to place a
number of units in dental schools to promote its Waterlase
technology.
- The promotion of William E. Brown, a 30-year veteran of the
medical laser industry, from Vice President, International, to Vice
President, Sales & Marketing.
- The introduction of the Waterlase MDX™ line of all-tissue
lasers, the technological evolution of the highly successful
Waterlase MD Turbo, expanding the Company's product offerings and
complementing the flagship Waterlase iPlus.
- BIOLASE became the distributor for Cefla Dental Group's NewTom
Cone Beam 3D imaging products in the U.S. and Canada, thereby
complementing the Company's large family of BIOLASE DaVinci
Imaging™ products. Cefla is a leading Italian dental equipment
manufacturer and its NewTom products are considered to be among the
highest quality 3-D dental imaging products in the world.
- The declaration of a one-half percent stock dividend payable on
March 30, 2012 to stockholders of record on March 15, 2012, and the
adoption of a two percent annual stock dividend policy by the Board
of Directors for 2012.
For this year's first quarter, gross profit as a percentage of
net revenue was 47.1 percent compared to 45.8 percent for the prior
year comparable period and 42.2 percent in the fourth quarter of
2011. The Company has worked hard to improve its manufacturing and
production processes over the last six months and the impact of
these efforts are beginning to be seen in the financial
results.
Operating expenses in the first quarter of 2012 were $7.4
million compared to $5.2 million in the prior year period.
Operating expenses were up year over year as the Company
strengthened spending on sales and marketing, and engineering and
development in order to invest in programs, including both dental
and other segments, that it believes will have both short- and
long-term potential benefits.
As of March 31, 2012, cash and cash equivalents totaled
approximately $2.8 million, accounts receivable totaled $9.0
million, and shareholders' equity was $11.9 million.
Moving onto financial guidance, BIOLASE expects unadjusted
revenue for the second quarter of 2012 of approximately $13.0
million to $14.0 million, an increase of approximately $900,000 to
$1.9 million, or 7 to 16 percent, compared to $12.1 million for the
second quarter of 2011; and, on a non-GAAP adjusted basis, an
increase of approximately $3.0 million to $4.0 million, or 30 to 40
percent, compared to the same period after excluding the product
revenues associated with the irrevocable one-time purchase orders
from Schein. Note, however, that the Company's second quarter
revenues may be impacted by accounting consequences related to its
purchase of Schein's inventory of Waterlase MD Turbos, which was
completed on April 12, 2012. Full-year revenue guidance for 2012
remains $57 million to $60 million. Excluding equipment sales to
Henry Schein to satisfy one-time prepaid purchase orders of
approximately $5.9 million during 2011, the midpoint of the
Company's guidance of $58.5 million represents an increase of 36
percent, year over year.
Conference Call As previously announced,
BIOLASE is conducting a conference call today at 4:30 p.m. Eastern
Time to review these financial results. The dial-in number for the
call is toll-free 1-877-941-4774 or toll/international
1-480-629-9760. The live webcast and archived replay of the call
can be accessed in the Investors section of the BIOLASE website at
www.biolase.com.
About BIOLASE Technology, Inc. BIOLASE
Technology, Inc., the World's leading Dental Laser Company, is a
medical technology company that develops, manufactures and markets
dental lasers and also distributes and markets dental imaging
equipment; products that are focused on technologies that advance
the practice of dentistry and medicine. The Company's laser
products incorporate approximately 285 patented and patent pending
technologies designed to provide clinically superior performance
with less pain and faster recovery times. Its imaging products
provide cutting-edge technology at competitive prices to deliver
the best results for dentists and patients. BIOLASE's principal
products are dental laser systems that perform a broad range of
dental procedures, including cosmetic and complex surgical
applications, and a full line of dental imaging equipment. BIOLASE
has sold more than 19,600 lasers among 16,000 customers. Other
products under development address ophthalmology and other medical
and consumer markets.
For updates and information on laser and Waterlase dentistry,
find BIOLASE at http://www.biolase.com, Twitter at
http://twitter.com/GoWaterlase, and YouTube at
http://www.youtube.com/user/Rossca08.
Non-GAAP Financial Measures The non-GAAP
financial measures contained herein are a supplement to the
corresponding financial measures prepared in accordance with
generally accepted accounting principles (GAAP). The non-GAAP
financial measures presented exclude the items summarized in the
below table. Management believes that adjustments for these items
assist investors in making comparisons of period-to-period
operating results and that these items are not indicative of the
Company's on-going core operating performance.
Management uses non-GAAP net income (loss) and non-GAAP net
income (loss) per diluted share in its evaluation of the Company's
core after-tax results of operations and trends between fiscal
periods and believes that these measures are important components
of its internal performance measurement process. Management
believes that providing these non-GAAP financial measures allows
investors to view the Company's financial results in the way that
management views the financial results.
The non-GAAP financial measures presented herein have certain
limitations in that they do not reflect all of the costs associated
with the operations of the Company's business as determined in
accordance with GAAP. Therefore, investors should consider non-GAAP
financial measures in addition to, and not as a substitute for, or
as superior to, measures of financial performance prepared in
accordance with GAAP. The non-GAAP financial measures presented by
the Company may be different from the non-GAAP financial measures
used by other companies.
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.
BIOLASE TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited)
(in thousands, except per share data)
Three Months Ended
March 31,
------------------
2012 2011
-------- --------
Products and services revenue $ 12,312 $ 10,546
License fees and royalty revenue 8 15
-------- --------
Net revenue 12,320 10,561
Cost of revenue 6,513 5,722
-------- --------
Gross profit 5,807 4,839
-------- --------
Operating expenses:
Sales and marketing 4,028 2,453
General and administrative 2,211 1,699
Engineering and development 1,190 1,093
-------- --------
Total operating expenses 7,429 5,245
-------- --------
Loss from operations (1,622) (406)
-------- --------
Loss on foreign currency transactions (17) (38)
Interest income 1 --
Interest expense (5) (73)
Nonrecurring charge, unamortized debt-related cost
expense -- (225)
-------- --------
Non-operating loss, net (21) (336)
-------- --------
Loss before income tax provision (1,643) (742)
Income tax provision 29 8
-------- --------
Net loss (1,672) (750)
Other comprehensive loss items:
Foreign currency translation adjustments 63 114
-------- --------
Comprehensive loss $ (1,609) $ (636)
======== ========
Net loss per share:
Basic $ (0.05) $ (0.03)
======== ========
Diluted $ (0.05) $ (0.03)
======== ========
Shares used in the calculation of net loss per share:
Basic 30,721 27,343
======== ========
Diluted 30,721 27,343
======== ========
BIOLASE TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(in thousands, except per share data)
March 31, December 31,
2012 2011
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 2,772 $ 3,307
Accounts receivable, less allowance of $305
and $289 in 2012 and 2011, respectively 8,983 8,899
Inventory, net 10,337 11,312
Prepaid expenses and other current assets 1,163 1,808
------------ ------------
Total current assets 23,255 25,326
Property, plant and equipment, net 1,338 1,148
Intangible assets, net 179 212
Goodwill 2,926 2,926
Deferred tax asset 8 8
Other assets 187 187
------------ ------------
Total assets $ 27,893 $ 29,807
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 7,524 $ 7,804
Accrued liabilities 5,442 6,177
Customer deposits 20 165
Deferred revenue, current portion 2,232 2,136
------------ ------------
Total current liabilities 15,218 16,282
Deferred tax liabilities 612 594
Deferred revenue, long-term 17 25
Other liabilities, long-term 139 337
------------ ------------
Total liabilities 15,986 17,238
------------ ------------
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; 32,769 and 32,502 shares issued
in 2012 and 2011, respectively; and 30,805
and 30,538 shares outstanding in 2012 and
2011, respectively 33 33
Additional paid-in capital 139,454 138,507
Accumulated other comprehensive loss (297) (360)
Accumulated deficit (110,884) (109,212)
------------ ------------
28,306 28,968
Treasury stock (cost of 1,964 shares
repurchased) (16,399) (16,399)
------------ ------------
Total stockholders' equity 11,907 12,569
------------ ------------
Total liabilities and stockholders' equity $ 27,893 $ 29,807
============ ============
BIOLASE TECHNOLOGY, INC.
Reconciliation of GAAP Financial Results to Non-GAAP Financial Measures
(Unaudited)
(in thousands, except per share data)
Three months ended March 31,
2012 2011
------------- -------------
GAAP revenue $ 12,320 $ 10,561
Less: equipment sales to Henry Schein for
irrevocable purchase orders -- 2,915
------------- -------------
Subtotal 12,320 7,646
Less: royalty revenue 8 15
------------- -------------
GAAP revenue less equipment sales to Henry
Schein for irrevocable purchase orders and
royalty revenue $ 12,312 $ 7,631
============= =============
GAAP net loss $ (1,672) $ (750)
Adjustments:
Interest expense 5 73
Nonrecurring charge, unamortized debt-related
cost expense -- 225
Depreciation and amortization expense 125 228
Stock-based, other equity instruments, and
other non-cash compensation expenses 670 377
------------- -------------
Non-GAAP net loss $ (872) $ 153
============= =============
GAAP net loss per share:
Basic and Diluted $ (0.05) $ (0.03)
Adjustments:
Interest expense 0.00 0.00
Nonrecurring charge, unamortized debt-related
cost expense 0.00 0.01
Depreciation and amortization expense 0.00 0.01
Stock-based, other equity instruments, and
other non-cash compensation expenses 0.02 0.02
Non-GAAP net loss per share:
------------- -------------
Basic and Diluted $ (0.03) $ 0.01
============= =============
Basic and Diluted Shares 30,721 27,343
For further information, please contact: Jill Bertotti Allen
& Caron +1-949-474-4300 jill@allencaron.com
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