Cost cutting helped Biolase Technology increase its net profit in the second quarter of 2009 despite a 23% drop in sales.
For the period (end-June 30), the company reported net revenue of $14.3 million, compared to $18.7 million in the same quarter a year ago.
However, while revenue year-over-year has been significantly impacted by challenging economic conditions, second-quarter 2009 revenue more than doubled from the $6.6 million reported for the 2009 first quarter, according to Biolase.
Revenue rebounded from the first quarter due to new commitments from the company's distribution partner, Henry Schein, aggressive new sales and marketing programs, and the launch of the new Waterlase MD Turbo hard- and soft-tissue dental laser system, the company said.
Net income for the quarter was $2.3 million, compared with net income of $600,000 for the same period a year ago. Biolase attributed the improvement over the prior-year quarter to cost reductions in manufacturing and operating expenses.
"During the last six months, we have been leading the company in a new direction," said Biolase CEO David Mulder in a press release. "We streamlined operations, which reduced operating costs and improved margins; moved to a distribution model internationally that eliminated direct infrastructure costs, which accounted for over $4 million a year in losses; restructured our agreement with Henry Schein; and, together with Henry Schein, we continue to develop new approaches to making lasers a solid day-to-day dentistry tool."
Biolase said it is also considering some additional business growth initiatives, including the following:
Light-based oral care devices, including toothbrushes: The company continues to see opportunity in both the professional field (which it retains rights to) and the consumer field, and is in negotiations with Procter & Gamble regarding specific plans on moving ahead.
North Asia expansion: The company has been notified that it should shortly receive registration for the Waterlase MD in China, and distribution channels have already been planned.
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