Company profile

Ticker
BIOL
Exchange
CEO
Todd A. Norbe
Employees
Incorporated in
Location
Fiscal year end
Former names
Biolase Technology Inc
SEC CIK
IRS number
870442441

BIOL stock data

(
)

Calendar

9 Aug 19
22 Sep 19
31 Dec 19

News

Company financial data Financial data

Quarter (USD) Jun 19 Mar 19 Dec 18 Sep 18
Revenue 8.65M 10.33M 13.05M 10.94M
Net income -3.9M -4.9M -6.92M -4.67M
Diluted EPS -0.18 -0.23 -0.34 -0.23
Net profit margin -45.10% -47.45% -53.04% -42.66%
Operating income -3.34M -4.36M -6.51M -4.51M
Net change in cash 764K -5.09M 5.81M -657K
Cash on hand 3.72M 2.96M 8.04M 2.24M
Cost of revenue 5.27M 6.8M 7.43M 7M
Annual (USD) Dec 18 Dec 17 Dec 16 Dec 15
Revenue 46.16M 46.93M 51.81M 48.48M
Net income -21.52M -16.85M -15.37M -20.28M
Diluted EPS -1.05 -1.41 -1.45 -0.35
Net profit margin -46.62% -35.91% -29.67% -41.83%
Operating income -20.89M -18.04M -14.96M -19.92M
Net change in cash -3.6M 2.72M -2.78M -19.86M
Cash on hand 8.04M 11.65M 8.92M 11.7M
Cost of revenue 29.26M 31.8M 31.5M 32.53M

Financial data from BIOLASE earnings reports

Financial report summary

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Risks
  • We have experienced net losses for each of the past three years and we could experience additional losses and have difficulty achieving profitability in the future.
  • We could need to raise additional capital in the future, and if we are unable to secure adequate funds on terms acceptable to us, we could be unable to execute our business plan.
  • Dentists and patients have been hesitant in adopting laser technologies, and our inability to overcome this hesitation could limit the market acceptance of our products and our market share.
  • Any failure in our efforts to train dental practitioners could result in the misuse of our products, reduce the market acceptance of our products and have a material adverse effect on our business, financial condition, and results of operations.
  • We face competition from other companies, many of which have substantially greater resources than we do. If we do not successfully develop and commercialize enhanced or new products that remain competitive with products or alternative technologies developed by others, we could lose revenue opportunities and customers and our ability to grow our business would be impaired.
  • Our ability to use net operating loss carryforwards could be limited.
  • We could be subject to significant warranty obligations if our products are defective, which could have a material adverse effect on our business, financial condition, and results of operations.
  • Adverse publicity regarding our technology or products could negatively impact us.
  • Our suppliers may not supply us with a sufficient amount or adequate quality of materials, which could have a material adverse effect on our business, financial condition, and results of operations.
  • Rapidly changing standards and competing technologies could harm demand for our products, result in significant additional costs, and have a material adverse effect on our business, financial condition, and results of operations.
  • We have significant international sales and are subject to risks associated with operating in international markets.
  • Our revenue and operating results fluctuate due to seasonality and other factors, so you should not rely on quarter-to-quarter comparisons of our operating results as an indication of our future performance.
  • Litigation against us could be costly and time-consuming to defend and could materially and adversely affect our business, financial condition, and results of operations.
  • Our operations are consolidated primarily in one facility. A disruption at this facility could result in a prolonged interruption of our business and have a material adverse effect on our business, financial condition, and results of operations.
  • Acquisitions involve risks and uncertainties, including difficulties integrating acquired businesses successfully into our existing operations and risks of discovering previously undisclosed liabilities.
  • Failure to meet covenants in the Credit Agreement, dated as of November 9, 2018 (the “Credit Agreement”), between BIOLASE, Inc. and SWK Funding LLC, as agent (“SWK”), could result in acceleration of our payment obligations thereunder, and we may not be able to find alternative financing.
  • If we fail to comply with the reporting obligations of the Exchange Act and Section 404 of the Sarbanes-Oxley Act, or if we fail to maintain adequate internal control over financial reporting, our business, financial condition, and results of operations, and investors’ confidence in us, could be materially and adversely affected.
  • Climate change initiatives could materially and adversely affect our business, financial condition, and results of operations.
  • If the patents that we own or license, or our other intellectual property rights, do not adequately protect our technologies, we could lose market share to our competitors and be unable to operate our business profitably.
  • If third parties claim that we infringe their intellectual property rights, we could incur liabilities and costs and have to redesign or discontinue selling certain products, which could have a material adverse effect on our business, financial condition, and results of operations.
  • Changes in government regulation or the inability to obtain or maintain necessary government approvals could have a material adverse effect on our business, financial condition, and results of operations.
  • We could be subject to or otherwise affected by federal and state health care laws, including fraud and abuse and health information privacy and security laws, and we could face substantial penalties if we are unable to fully comply with such regulations.
  • We could be exposed to liabilities under the FCPA, and any determination that we violated the FCPA could have a material adverse effect on our business, financial condition, and results of operations.
  • Our products are subject to recalls and other regulatory actions after receiving FDA clearance or approval.
  • The liquidity and trading volume of our common stock could be low, and our ownership is concentrated.
  • You could experience substantial dilution of your investment as a result of subsequent exercises of our outstanding warrants and options, future sales of our equity, or the future grant of equity by us.
  • Because we do not intend to pay dividends, our stockholders will benefit from an investment in our common stock only if it appreciates in value.
Management Discussion
  • In addition to the financial information prepared in conformity with GAAP, we provide certain historical non-GAAP financial information. Management believes that these non-GAAP financial measures assist investors in making comparisons of period-to-period operating results and that, in some respects, these non-GAAP financial measures are more indicative of the Company’s ongoing core operating performance than their GAAP equivalents.
  • Management believes that the presentation of this non-GAAP financial information provides investors with greater transparency and facilitates comparison of operating results across a broad spectrum of companies with varying capital structures, compensation strategies, derivative instruments, and amortization methods, which provides a more complete understanding of our financial performance, competitive position, and prospects for the future. However, the non-GAAP financial measures presented in this Form 10-Q have certain limitations in that they do not reflect all of the costs associated with the operations of our 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. Further, the non-GAAP financial measures presented by the Company may be different from similarly named non-GAAP financial measures used by other companies.
  • Typically, we experience fluctuations in revenue from quarter to quarter due to seasonality. Revenue in the first quarter typically is lower than average, and revenue in the fourth quarter typically is stronger than average, due to the buying patterns of dental practitioners. We believe that this trend exists because a significant number of dentists purchase their capital equipment towards the end of the calendar year in order to maximize their practice earnings while seeking to minimize their taxes. They often use certain tax incentives, such as accelerated depreciation methods for purchasing capital equipment, as part of their year-end tax planning. In addition, revenue in the third quarter may be affected by vacation patterns which can cause revenue to be flat or lower than in the second quarter of the year. Our historical seasonal fluctuations may also be impacted by sales promotions used by large dental distributors that encourage end-of-quarter and end-of-year buying in our industry.
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