BIOLASE Technology reports operating results for the 2009 third-quarter

BIOLASE Technology, Inc. (NASDAQ: BLTI), the world's leading dental laser company, today reported operating results for the 2009 third quarter and nine months ended September 30, 2009.

Net revenue for the third quarter of 2009 was $12.1 million, compared to $15.3 million in the prior year quarterly period. The change in revenue was driven primarily by the inclusion of initial distributor orders for Waterlase® C100 laser systems in the prior year period, current economic conditions, and the amortization of historic licensing contracts. Non-laser sales benefited from a 98 percent increase in consumable sales and a 34 percent increase in global service revenues, driven by the Company's initiatives to expand offerings in upgrades, accessories, and services to its existing customer base.

Gross margin as a percentage of net revenue for the 2009 third quarter was 48 percent, compared to 49 percent for the 2008 third quarter. Operating expenses in the 2009 third quarter were $4.9 million, compared to $11.3 million in the year-earlier quarterly period, which reflects a significant 57 percent decrease in Company expenditures.

GAAP net income for the 2009 third quarter was $0.9 million, or $0.04 per share, compared to a net loss of $4.5 million, or $0.19 loss per share, in the 2008 third quarter. Non-GAAP net income was $1.5 million or $0.06 per share on a non-GAAP basis for the 2009 third quarter.

Net revenue for the first nine months of 2009 was $33.0 million, compared to $53.0 million in the prior nine-month period. GAAP net loss for the first nine months of 2009 was $1.5 million, or $0.06 loss per share, compared to a net loss of $3.8 million, or $0.16 loss per share in the prior year period. Non-GAAP net income was $0.8 million or $0.03 income per share on a non-GAAP basis for the first nine months of 2009.

BIOLASE Chief Executive Officer David M. Mulder said, "During the first half of the year we restructured the Company, established new global relationships and adjusted our core domestic sales and marketing efforts -- achieving lower spending and targeting better overall long-term results. Immediate results were evident in the 2009 second quarter in our sales and profitability results, as compared to the prior two consecutive quarters. Building upon that domestic core business groundwork, in the 2009 third quarter we applied ourselves to expanding our global consumable and service offerings, reigniting our international growth, and focusing on the long-term commercialization of the Company's considerable intellectual property portfolio, both inside and outside of dentistry. We are very pleased that consumable sales have nearly doubled, that our overall international business has shown both consecutive and year-over-year growth, and that the first targeted commercialization of our intellectual property outside of core dental was achieved earlier this week, with the launch of the Diolase 10™."

Mulder continued, "In October, we launched a multi-media mass marketing campaign that combined the best components of past consumer marketing campaigns with the best new research and expertise available in the dental industry from inside the Company and with our key partners. The resulting interest level from new doctors, as measured by lead generation, has just recently hit the highest levels recorded in recent years, and it is very exciting to witness."

"The high number of dentists asking for a 'first look' at BIOLASE lasers is an indicator that greater levels of adoption rates in the dental industry are feasible. To date we have trained a base of over 10,000 dentists and we continue to work on accelerating that adoption. In the meantime, we have achieved another quarter of profitability as we consider both core and additional lines of business," Mulder concluded.