Exhibit 99.1
BIOLASE REPORTS Q2 EARNINGS OF $0.08 ON $11.1 MILLION IN SALES
Earnings Exceed Analyst Average EPS Estimates of $0.05
BIOLASE Technology, Inc. (Nasdaq: BLTI), a medical technology company that designs, manufactures and markets proprietary dental laser systems and related products, today reported financial results for the three and six-month periods ended June 30, 2003.
For the three months ended June 30, 2003, net income was $1.7 million ($0.08 per diluted share) on sales of $11.1 million. For the three months ended June 30, 2002, net income was $669,000 ($0.03 per diluted share) on sales of $7.2 million. The sales figure for the three months ended June 30, 2003 represents a 55% growth over the same period in 2002. Gross margin for the three months ended June 30, 2003 was 61.8%, yielding a gross profit of $6.9 million. For the three months ended June 30, 2002, gross margin was 60.6% with a gross profit of $4.3 million.
For the six months ended June 30, 2003, net income was $2.4 million ($0.11 per diluted share) on sales of $19.7 million compared to net income of $788,000 ($0.04 per diluted share) on sales of $12.4 million for the six months ended June 30, 2002. Year-to-date, sales have increased 59% over the first two quarters of 2002.
Jeffrey W. Jones, President and Chief Executive Officer, commented, “Our market penetration continues to expand and our operating margins continue to grow, reaching 15% in the quarter just ended. Our financial position has also strengthened since the beginning of the year with cash now at $6.6 million and net working capital having more than doubled to $7.2 million.”
About BIOLASE
BIOLASE Technology, Inc. (http://www.biolase.com) is a medical technology company that designs, manufacturers and markets proprietary dental laser systems that allow dentists, oral surgeons and other specialists to perform a broad range of common dental procedures, including cosmetic applications. Our products incorporate patented and patent pending technologies focused on reducing pain and improving clinical results. Our primary product, the Waterlase system, is the best selling dental laser system. The Waterlase system uses a patented combination of water and laser to precisely cut hard tissue, such as bone and teeth, and soft tissue, such as gums, with minimal or no damage to surrounding tissue. We also offer the LaserSmile system, which uses a laser to perform soft tissue and cosmetic procedures, including tooth whitening. In May 2003, we acquired the American Dental Laser product line, including the Diolase and Pulsemaster systems, which can be used for common soft tissue procedures.
Cautionary Statement
This press release and earnings conference call may contain forward-looking statements that are based on our current expectations, estimates and projections about our industry as well as management’s beliefs and assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “may,” “will,” and variations of these words or similar expressions are intended to identify forward-looking statements. These statements speak only as of the date hereof and are based upon the information available to us now. Such information is subject to change and we will not necessarily inform you of such changes. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors.
The important factors which could cause actual results to differ materially from those in the forward-looking statements include, among others, a downturn or leveling off of demand for our products, the loss of a key distributor, the effectiveness of our expense and product cost control efforts, the availability and pricing of competing products and technologies, intellectual property disputes and other factors detailed in BIOLASE’s filings with the Securities and Exchange Commission including its prior filings on Form 10K and Form 10Q.
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BIOLASE TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, 2003 | December 31, 2002 | |||||||
| (Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 6,646,000 | $ | 3,940,000 | ||||
Accounts receivable, less allowance of $425,000 and $395,000 in 2003 and 2002, respectively | 5,308,000 | 4,790,000 | ||||||
Inventories, net of reserves of $420,000 and $239,000 in 2003 and 2002, respectively | 3,709,000 | 2,792,000 | ||||||
Prepaid expenses and other current assets | 815,000 | 1,028,000 | ||||||
Total current assets | 16,478,000 | 12,550,000 | ||||||
Property, plant and equipment, net | 1,861,000 | 1,733,000 | ||||||
Intangible assets, net | 5,549,000 | 67,000 | ||||||
Other assets | 278,000 | 45,000 | ||||||
Total assets | $ | 24,166,000 | $ | 14,395,000 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Line of credit | $ | 1,792,000 | $ | 1,792,000 | ||||
Accounts payable | 1,879,000 | 2,082,000 | ||||||
Accrued liabilities | 3,954,000 | 3,580,000 | ||||||
Customer deposits | 296,000 | 329,000 | ||||||
Deferred gain on sale of building, current portion | 63,000 | 63,000 | ||||||
Debt | 1,332,000 | 1,220,000 | ||||||
Total current liabilities | 9,316,000 | 9,066,000 | ||||||
Deferred gain on sale of building | 111,000 | 142,000 | ||||||
Total liabilities | 9,427,000 | 9,208,000 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, par value $0.001, 1,000,000 shares authorized, no shares issued and outstanding | — | — | ||||||
Common stock, par value $0.001, 50,000,000 shares authorized; issued and outstanding – 21,519,000 shares in 2003 and 20,131,000 shares in 2002 | 22,000 | 20,000 | ||||||
Additional paid-in capital | 56,704,000 | 49,497,000 | ||||||
Accumulated other comprehensive loss | (134,000 | ) | (57,000 | ) | ||||
Accumulated deficit | (41,853,000 | ) | (44,273,000 | ) | ||||
Total stockholders’ equity | 14,739,000 | 5,187,000 | ||||||
Total liabilities and stockholders’ equity | $ | 24,166,000 | $ | 14,395,000 | ||||
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BIOLASE TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2003 | 2002 | 2003 | 2002 | |||||||||||||
Net sales | $ | 11,080,000 | $ | 7,160,000 | $ | 19,748,000 | $ | 12,390,000 | ||||||||
Cost of sales | 4,228,000 | 2,818,000 | 7,365,000 | 4,927,000 | ||||||||||||
Gross profit | 6,852,000 | 4,342,000 | 12,383,000 | 7,463,000 | ||||||||||||
Other income | 16,000 | 16,000 | 32,000 | 32,000 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing | 3,680,000 | 2,551,000 | 7,251,000 | 4,646,000 | ||||||||||||
General and administrative | 979,000 | 858,000 | 1,823,000 | 1,334,000 | ||||||||||||
Engineering and development | 521,000 | 369,000 | 1,033,000 | 788,000 | ||||||||||||
Total operating expenses | 5,180,000 | 3,778,000 | 10,107,000 | 6,768,000 | ||||||||||||
Income from operations | 1,688,000 | 580,000 | 2,308,000 | 727,000 | ||||||||||||
Gain on foreign currency translation | 62,000 | 17,000 | 108,000 | 19,000 | ||||||||||||
Gain on forward contract | — | 101,000 | 22,000 | 101,000 | ||||||||||||
Interest income | 8,000 | 4,000 | 13,000 | 7,000 | ||||||||||||
Interest expense | (12,000 | ) | (33,000 | ) | (31,000 | ) | (66,000 | ) | ||||||||
Net income | $ | 1,746,000 | $ | 669,000 | $ | 2,420,000 | $ | 788,000 | ||||||||
Net earnings per share: | ||||||||||||||||
Basic | $ | 0.08 | $ | 0.03 | $ | 0.12 | $ | 0.04 | ||||||||
Diluted | $ | 0.08 | $ | 0.03 | $ | 0.11 | $ | 0.04 | ||||||||
Shares used in computing net income per share: | ||||||||||||||||
Basic | 21,179,000 | 20,027,000 | 20,776,000 | 19,910,000 | ||||||||||||
Diluted | 22,765,000 | 21,419,000 | 22,410,000 | 21,350,000 | ||||||||||||
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