Biolase Technology, a dental laser company, has reported revenues of $4.4m for the first quarter ended Mar 31, 2010, compared to $6.6m for the comparable period in 2009, due to a fundamental change in the purchasing pattern of its distribution partner Henry Schein.
Biolase Technology has posted a net loss of $5.3m for the first quarter 2010, or $0.22 per diluted share, compared to $4.7m, or $0.19 per diluted share, for the comparable period in 2009. Loss from operations was $5.3m, compared to $4.9m for the comparable period in 2009.
Earlier, Biolase announced an agreement to switch minimum laser purchase commitments from Henry Schein, which would have been recognized as revenue upon shipment of product in the first quarter, to prepayments for future deliveries, with revenue being recognized in future quarters.
In addition to the impact on revenues, the agreement with Henry Schein preserved cash flows and decreased pipeline inventories. During the period, the Biolase also announced a significant increase in its direct sales force, introduced a new dental laser, the iLase and restructured its sales and marketing management team.
David MulderBiolase, CEO of Biolase Technology, said: “We expect prepayment impacts should lessen as the year progresses and as we continue to shift our business model, add direct selling resources for the Waterlase MD product, work through remaining inventories and take advantage of the economic recovery that we believe is beginning to provide some lift in both domestic and international markets end user sales.
“The pre-launch and launch activities involved with iLase have been successful and we are very optimistic about the prospects of that device. The strategies we have launched and the new sales force have approximately doubled the end-user sales for April 2010 compared to same period in the prior year.
“We expect the second quarter revenues to improve over the first quarter, but prepaid orders by our distribution partner for iLase and other products may continue to push out some revenues in the near term.”