BLTI: BIOLASE Technology Reports Record Sales For 1999 4Q and Year-End Periods.
Jenna:
Please have a look at BLTI in the medical device area. The company's marketing of a recently-approved laser dental surgery system has resulted in a significant increase in sales (see below).
Regards,
Jake Blackmerlin
BIOLASE Technology Reports Record Sales For 1999 Fourth Quarter and Year-End Periods
SAN CLEMENTE, Calif., Mar 30, 2000 /PRNewswire via COMTEX/ --
BIOLASE Technology, Inc. (Nasdaq: BLTI ), today reported record financial
results for the fourth quarter and fiscal year ended Dec. 31, 1999.
For the 12 months, the company reported record sales of $7,004,272, an
increase of $5,539,081, or 378 percent, compared with $1,465,191 for fiscal
1998. The net loss for the 12 months ended Dec. 31, 1999, inclusive of
$1,093,175 in non-recurring charges, of which $1,056,925 were non-cash
related, was $4,797,137, or 28 cents per share, compared with a net loss for
fiscal year 1998 of $10,346,069, or 69 cents per share.
The 1999 non-recurring charges included costs associated with a severance
agreement with the company's former president, a consulting agreement, a
write-off of assets related to product development and a provision for the
company's reacquiring of distribution rights in Germany from its previous
distributor. Operations in 1998 included a non-recurring cash charge of
$5,134,920, representing a write-off of purchased research and development
costs related to an acquisition of certain undeveloped technology. Without these
non-recurring charges, the net loss for the 12 months ended Dec. 31, 1999, and
1998, would have been $3,703,962, or 21 cents per share, and $5,211,149, or
35 cents per share, respectively.
For the three months ended Dec. 31, 1999, sales rose 105 percent to
$1,799,210, an increase of $920,322 over the $878,888 reported for the
corresponding period in 1998. The net loss for the three-month period ended
Dec. 31, 1999, was $2,008,250, or 11 cents per share, compared with a net loss
of $1,646,146, or 10 cents per share, for the comparable quarter of 1998. The
net loss for the 1999 fourth quarter included non-recurring, non-cash charges of
$862,413, representing the previously mentioned write-off of product
development assets and the provision for reacquiring certain distribution rights.
Excluding these charges, the net loss for the three-month period ended Dec. 31,
1999, would have been $1,145,837, or 7 cents per share.
The company attributes the significant improvement in sales for the fiscal year and
fourth quarter to the successful transition from a primarily R&D company to the
initial phases of a sales and marketing organization. BIOLASE's 1999 sales and
marketing activities started the process of educating dentists about the financial
and clinical benefits of BIOLASE's products. These activities also initiated
awareness of the general public regarding the superior patient care and painless
dentistry provided by BIOLASE's products.
Gross profits improved significantly for the fiscal year and fourth quarter of 1999
to 41 percent and 38 percent, respectively, from 3 percent and 19 percent
reported for the comparable periods in 1998, and were due principally to
increased sales. Operating expenses decreased $2,767,975 in fiscal 1999, to
$7,600,682 from $10,368,657 reported for fiscal 1998. Operating expenses in
fiscal 1999 included $1,093,175 in non-recurring charges while 1998 operating
expenses included $5,134,920 of non-recurring charges. Excluding these charges,
operating expenses for fiscal 1999 would have reflected an increase of
$1,273,770, or 24 percent, compared to fiscal 1998. The comparative increase
was due principally to (a) increased costs associated with significantly higher sales
volume, (b) higher employee-related expenses related to the company's increase
in staffing and (c) increases in engineering project costs associated with new
product development and continued enhancements to existing products.
Operating expenses for the 1999 fourth quarter totaled $2,674,656, compared
with $1,794,203 for the corresponding period in 1998. The 1999 fourth quarter
included $862,413 in non-recurring charges, without which operating expenses
for the quarter would have been $1,812,243 compared to $1,794,203 for the
prior year comparable period, a nominal increase of $18,040 or 1 percent. The
company attributes the increase to higher sales volume, along with higher
engineering and development costs associated with new product development and
enhancements to existing products.
Jeffrey W. Jones, president and CEO of BIOLASE, said, "The past year proved
a pivotal one for BIOLASE, not only evidenced by the rise in sales but in many
operational and strategic accomplishments. Overall, we successfully made the
critical transition from research & development of our primary technologies to
production, sales & marketing. During 1999, we initiated the design and
completed the development of two major new products, the Millennium(R) II and
the Twilite diode. As of the date of this press release, both products have begun
shipping. We currently have a significant backlog of orders for the Millennium(R)
II and the Twilite."
Jones added, "On the regulatory and patent side of our business, we received
several new FDA clearances, including use of our flagship Millennium(R) on
children, and also for our new Twilite diode laser for dental soft tissue procedures
and for its use in many other medical specialties. In the second half of 1999, we
introduced the new MVP HydroKinetic(R) delivery system with disposable tips.
These tips created a valuable recurrent revenue stream. We were granted two
additional new patents to further strengthen our key medical technology for laser,
water and HydroKinetics(R), and recently, we filed for several additional new
patents to further expand our medical technology base.
"We are aggressively entering the next phase of marketing and sales, dramatically
ramping up our activities and staff in these areas. Our sales and marketing strategy
is focusing on the increasing public demand for painless procedures and the need
for dental practices to implement innovative marketing. Launching the new year,
our HydroKinetic(R) technology and products have been the subject of numerous
academies, accredited societies and respected clinical publications. We are
establishing more relationships while strengthening existing ones with key doctors
and educational institutions. In 2000, we will aggressively use the Internet for
education and training of dentists and doctors on the use of our revolutionary
technology. We will also use the Internet to inform the public about painless
dentistry and HydroKinetic(R) technology. We have established and begun the
promotion of www.nopaindentistry.com and also purchased the available related
'common use' names that will lead people to our site, where, as an example,
patients can locate a dentist in their area using the pain-free HydroKinetic(R)
technology.
"BIOLASE has quickly become the world leader in hard tissue lasers. We are in
a dominant position with the successful introduction of the next-generation
Millennium(R) and our new Twilite, both of which have quickly risen to become
the preferred products for the most respected dental courses. Looking ahead, we
are confident that we can expect continued strong sales growth in 2000 and for
several years to come."
The company also reported that subsequent to its fiscal year-end, it had received
a capital infusion of about $4,000,000 composed of approximately $2,500,000 in
net proceeds received from a private placement of restricted common stock to
institutional investors and about $1,500,000 in proceeds from the exercise of
certain stock purchase warrants and stock options.
Jones commented, "This capital infusion reflects the confidence that the investment
community has in the company's future. We intend to use the proceeds to enhance
our sales and marketing efforts for both the Millennium(R) and Twilite lasers to
take full advantage of the many exciting opportunities that the market place offers
to us."
BIOLASE Technology, Inc. (www.BIOLASE.com), is a medical technology
company, which possesses and develops advanced dental, cosmetic, aesthetic
and surgical products, including HydroKinetic(R) surgical cutting systems and
other advanced laser and non-laser based products for the professional and home
consumer market. The company's products incorporate patented and
patent-pending technologies in the pursuit of painless surgery. BIOLASE is the
world leader in painless hard and soft tissue dental laser technology.
The matters discussed in this news release include forward-looking statements,
which are subject to various risks, uncertainties and other factors that could cause
actual results to differ materially from the results anticipated in such
forward-looking statements. Such risks, uncertainties and other factors include,
but are not limited to, the effect of actions of third parties, including governmental
officials, the timely development and acceptance of new products, the impact of
competitive products and pricing, and other risks detailed from time to time in the
Company's filings with the Securities and Exchange Commission, including the
reports on Forms 10-K and 10-Q. These forward-looking statements represent
the Company's judgment as of the date of this release. The Company disclaims,
however, any intent or obligation to update these forward-looking statements.
For further information, please contact Jeffrey W. Jones, President and CEO of
BIOLASE Technology, Inc., 949-361-1200; or Lori Parks, VP, or Leighton
Foster, Investor Relations, both of Porter, LeVay & Rose, Inc., 212-564-4700,
for BIOLASE Technology, Inc.
BIOLASE TECHNOLOGY, INC.
Operating Results
For the Three Months Ended For the Year Ended
12/31/99 12/31/98 12/31/99 12/31/98
Sales $1,799,210 $878,888 $7,004,272 $1,465,191
Cost of sales 1,118,955 713,741 4,151,746 1,418,560
Gross profit 680,255 165,147 2,852,526 46,631
Operating expenses:
Sales and marketing 829,918 659,370 2,700,628 1,628,821
General and
administrative(1) 925,650 640,348 2,472,544 1,780,015
Engineering and
development(2) 919,088 494,485 2,427,510 1,824,901
Write-off of
purchased research
and development
costs --- --- --- 5,134,920
Total operating
expenses 2,674,656 1,794,203 7,600,682 10,368,657
Loss from
operations (1,994,401) (1,629,056) (4,748,156) (10,322,026)
Other income (expense)
Interest income 8,455 11,164 44,666 57,591
Interest expense (22,304) (28,254) (93,647) (81,634)
Net loss ($2,008,250) ($1,646,146) ($4,797,137) ($10,346,069)
Loss per share -
basic and diluted ($0.11) ($0.10) ($0.28) ($0.69)
Weighted average
shares outstanding 17,561,985 16,299,475 17,254,005 15,061,814
(1) Includes $480,000 and $609,981 of non-recurring costs for the three
and twelve months ended Dec. 31, 1999, respectively.
(2) Includes $382,413 and $483,194 of non-recurring costs for the three
and twelve months ended Dec. 31, 1999, respectively.
BIOLASE TECHNOLOGY, INC.
Consolidated Balance Sheets
12/31/99 12/31/98
ASSETS
Current Assets:
Cash and cash equivalents $1,180,982 $424,539
Marketable securities --- 251,485
Accounts receivable, less allowance of
$117,745 in 1999 and $118,015 in 1998 330,840 563,236
Inventories, net of reserves of $309,420
in 1999 and $227,694 in 1998 658,462 1,930,117
Prepaid expenses and other current assets 110,062 168,725
Total current assets 2,280,346 3,338,102
Property and equipment, net 203,529 407,142
Patents, trademarks and licenses, less
accumulated amortization of $151,277 in
1999 and $129,312 in 1998 126,958 147,199
Other assets 61,480 18,929
Total assets $2,672,313 $3,911,372
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Line of credit $1,341,925 $1,705,025
Accounts payable 792,073 806,335
Accrued expenses 997,287 738,160
Accrued costs related to reacquisition
of foreign distribution rights 480,300 ---
Total current liabilities 3,611,585 3,249,520
Stockholders' equity:
Preferred stock, par value $.001,
1,000,000 shares authorized: no shares
issued and outstanding in 1999 or 1998 --- ---
Common stock, par value, $.001, 50,000,000
shares authorized: issued 17,583,305 in
1999 and 16,312,007 in 1998 (after
deducting 182,880 of escrow shares
in 1999 and 1998) 17,583 16,312
Additional paid-in capital 41,809,690 38,614,948
Accumulated deficit (42,766,545) (37,969,408)
Net stockholders' equity (deficit) (939,272) 661,852
Total liabilities and stockholders' equity $2,672,313 $3,911,372
SOURCE BIOLASE Technology, Inc. |
