BIOLASE Reports Second Quarter, Six-Month Results
Most Profitable Quarter in Six Years; Sales Double From the Prior Consecutive Quarter

IRVINE, CA -- (Marketwire) -- 08/06/09 -- BIOLASE Technology, Inc. (NASDAQ: BLTI), the world's leading dental laser company, today reported operating results for the 2009 second quarter and six months ended June 30, 2009.

Net revenue for the second quarter of 2009 was $14.3 million, compared to $18.7 million in the prior year quarterly period. While revenue year-over-year has been significantly impacted by challenging economic conditions, second quarter 2009 revenue more than doubled from the $6.6 million reported for the 2009 first quarter. Revenue rebounded from the first quarter, due to new commitments from the Company's distribution partner, Henry Schein, Inc. (NASDAQ: HSIC), aggressive new sales and marketing programs, and the launch of the new Waterlase® MD Turbo(TM) hard and soft tissue dental laser system.

GAAP net income for the second quarter of 2009 was $2.3 million, or $0.10 per share, compared with net income of $0.6 million, or $0.03 per share, in the prior year quarterly period. Excluding stock based compensation expense of $0.3 million, non-GAAP earnings were $2.6 million or $0.11 per share on a non-GAAP basis for the second quarter of 2009. The improvement over the prior year quarterly period came in large part from manufacturing and operating expense cost reductions. Gross margin as a percentage of net revenue for the 2009 second quarter was 57 percent, compared with 54 percent for the 2008 second quarter. Operating expenses in this year's second quarter were $5.6 million, compared to $9.7 million in the year-earlier quarterly period, which reflected a 42 percent decrease in spending.

Net revenue for the first six months of 2009 was $20.9 million, compared to $37.7 million in the prior year period. GAAP net loss for the first six months of 2009 was $2.3 million, or $0.10 loss per share, compared to net income of $0.6 million, or $0.03 per share in the prior year period. Excluding stock based compensation expense of $0.8 million, non-GAAP net loss was $1.5 million or $0.06 loss per share on a non-GAAP basis for the first six months of 2009. Bottom-line improvements in the second quarter were offset by declines previously described in the 2009 first quarter earnings release.

BIOLASE Chief Executive Officer David M. Mulder said, "During the last six months, we have been leading the Company in a new direction. We streamlined operations which reduced operating costs and improved margins, moved to a distribution model internationally that eliminated direct infrastructure costs which accounted for over $4 million a year in losses, restructured our agreement with Henry Schein and, together with Henry Schein, we continue to develop new approaches to making lasers a solid day-to-day dentistry tool. The results of these efforts, not only by ourselves, but with our partners, helped us achieve the results as reported for the second quarter. We are very grateful to all those who joined in this effort, especially Henry Schein."

Mulder continued, "Nonetheless, despite some potential seasonal variations in future quarterly revenues, our goal of keeping cash flow positive at minimum purchase levels continues. We believe that the foundation of minimum purchases, $4 million in ongoing R&D expenditures, and a driving focus on commercializing our intellectual property have combined to allow us to move forward on a number of initiatives, some of which have been publicly disclosed. Along with our ongoing mission of making lasers an every day tool in dentistry, these initiatives fit with our long term strategy of leveraging our brands in dental and leveraging our technology in non-dental areas."

Some of the initiatives under review and consideration include:

--  Pain Management - The Company is currently fine-tuning its approach on
    entering this market, after the recently announced 510(k) clearance from
    the U.S. Food and Drug Administration (FDA) to market its ezlase diode
    laser system for therapeutic applications, including temporary pain relief.
    Initial sales into new channels could begin as early as the fourth quarter
    of 2009.
--  Ophthalmology - The Company has been reviewing specific new
    applications in this field with its lasers that other lasers are not
    capable of duplicating.  Development efforts could bring a product to
    market as early as mid-2010, and the Company is actively seeking partners
    to assist in both development and distribution.
--  Light Based Oral Care Devices (including toothbrushes) - The Company
    continues to see opportunity in both the professional field (which it
    retains rights to) and the consumer field.  The Company is currently in
    direct discussions and negotiations with Procter & Gamble (P&G) regarding
    specific plans on moving ahead.
--  North Asia Expansion - The Company has been notified that it should
    shortly receive registration for the Waterlase MD in China, and
    distribution channels have already been planned.
    

Mulder concluded, "Over the past six months, we have cleared away a significant number of past challenges and we believe we are now leaner, stronger, cash flow positive, closer to our partners, and poised with momentum. With a foundation of recent growth, we are today inspiring our team members and partners to tackle a challenging set of opportunities for the future."

Conference Call

As previously announced, the Company will host a conference call today at 11:00 a.m. Eastern Time to discuss its operating results for the second quarter and six months ended June 30, 2009, and to answer questions. The dial-in number for the call is toll-free 1-866-225-8754 or toll/international 1-480-629-9692. 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. (http://www.biolase.com), the world's leading dental laser company, develops, manufactures and markets Waterlase technology and lasers and related products 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 reduced pain, faster and biological 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, pain management 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.




                         BIOLASE TECHNOLOGY, INC.

            CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
                  (in thousands, except per share data)



                                    Three Months Ended   Six Months Ended
                                          June30,            June 30,
                                    ------------------  ------------------
                                      2009      2008      2009      2008
                                    --------  --------  --------  --------
Products and services revenue       $ 13,887  $ 17,795  $ 20,006  $ 35,832
License fees and royalty revenue         430       868       905     1,872
                                    --------  --------  --------  --------
Net revenue                           14,317    18,663    20,911    37,704
Cost of revenue                        6,219     8,556    11,045    18,015
                                    --------  --------  --------  --------
Gross profit                           8,098    10,107     9,866    19,689
                                    --------  --------  --------  --------
Operating expenses:
   Sales and marketing                 2,770     5,052     5,815    10,657
   General and administrative          1,735     3,398     4,304     6,475
   Engineering and development         1,119     1,271     2,202     2,732
                                    --------  --------  --------  --------
      Total operating expenses         5,624     9,721    12,321    19,864
                                    --------  --------  --------  --------
Profit (loss) from operations          2,474       386    (2,455)     (175)
                                    --------  --------  --------  --------
(Loss) gain on foreign currency
 transactions                           (109)      225       206       841
Interest income                            2        26         3        84
Interest expense                         (12)      (36)      (42)      (60)
                                    --------  --------  --------  --------
Non-operating (loss) income, net        (119)      215       167       865
                                    --------  --------  --------  --------
Income (loss) before income tax
 provision                             2,355       601    (2,288)      690
Income tax provision (benefit)            25       (21)       58        42
                                    --------  --------  --------  --------
Net income (loss)                   $  2,330  $    622  $ (2,346) $    648
                                    ========  ========  ========  ========
Net income (loss) per share:
   Basic                            $   0.10  $   0.03  $  (0.10) $   0.03
                                    ========  ========  ========  ========
   Diluted                          $   0.10  $   0.03  $  (0.10) $   0.03
                                    ========  ========  ========  ========
Shares used in the calculation of
 net income (loss) per share:
   Basic                              24,244    24,164    24,244    24,110
                                    ========  ========  ========  ========
   Diluted                            24,321    24,358    24,244    24,326
                                    ========  ========  ========  ========




                         BIOLASE TECHNOLOGY, INC.

                  CONSOLIDATED BALANCE SHEETS (Unaudited)
                  (in thousands, except per share data)


                                                    June 30,   December 31,
                                                      2009        2008
                                                  -----------  -----------
                     ASSETS
Current assets:
   Cash and cash equivalents                      $     3,487  $    11,235
   Accounts receivable, less allowance of $432
    and $526 in 2009 and 2008, respectively             2,538        3,758
   Inventory, net                                       9,006       12,410
   Prepaid expenses and other current assets              968        1,391
                                                  -----------  -----------
      Total current assets                             15,999       28,794
Property, plant and equipment, net                      2,621        3,040
Intangible assets, net                                    537          613
Goodwill                                                2,926        2,926
Deferred tax asset                                         32           29
Other assets                                              300          306
                                                  -----------  -----------
      Total assets                                $    22,415  $    35,708
                                                  ===========  ===========

        LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
   Line of credit                                 $        --  $     5,404
   Accounts payable                                     4,609        7,509
   Accrued liabilities                                  5,823        8,255
   Deferred revenue, current portion                    1,588        2,603
                                                  -----------  -----------
      Total current liabilities                        12,020       23,771
Deferred tax liabilities                                  409          376
Deferred revenue, long-term                             2,004        1,875
Other liabilities, long-term                              243          296
                                                  -----------  -----------
      Total liabilities                                14,676       26,318
                                                  -----------  -----------
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; 26,208 and 26,208 shares issued
    and 24,245 and 24,244 shares outstanding in
    2009 and 2008, respectively                            27           27
   Additional paid-in capital                         116,484      115,698
   Accumulated other comprehensive loss                  (278)        (187)
   Accumulated deficit                                (92,095)     (89,749)
                                                  -----------  -----------
                                                       24,138       25,789
   Treasury stock (cost of 1,964 shares
    repurchased)                                      (16,399)     (16,399)
                                                  -----------  -----------
Total stockholders' equity                              7,739        9,390
                                                  -----------  -----------
Total liabilities and stockholders' equity        $    22,415  $    35,708
                                                  ===========  ===========





                         BIOLASE TECHNOLOGY, INC.

Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Measures
                  (in thousands, except per share data)



                                    Three Months Ended   Six Months Ended
                                          June 30,           June 30,
                                    ------------------- -------------------
                                       2009      2008      2009      2008
                                    --------- --------- --------- ---------
GAAP net income (loss)              $   2,330 $     622 $ (2,346) $     648
Adjustments:
   Stock Based Compensation Expense       317       440      785        893
                                    --------- --------- --------  ---------
Non-GAAP net revenue (loss)             2,647     1,062   (1,561)     1,541
                                    --------- --------- --------  ---------


GAAP net income (loss) per share:
Basic and Diluted                   $    0.10 $    0.03 $  (0.10) $    0.03
                                    ========= ========= ========  =========
Adjustments:
   Stock Based Compensation Expense $    0.01 $    0.01 $   0.04  $    0.03
                                    --------- --------- --------  ---------
Non-GAAP net income (loss) per
 share:
Basic and Diluted                   $    0.11 $    0.04 $  (0.06) $    0.06
                                    ========= ========= ========  =========

For further information, please contact:
Jill Bertotti
Allen & Caron
+1-949-474-4300

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