Biolase Technology reported revenues of $5.9 million for the second quarter of 2010 (end-June 30), compared to $14.3 million in the same quarter a year ago. Net loss for the quarter was $4.2 million, compared to net income of $2.3 million in the 2009 second quarter.
The year-over-year change in revenue in the second quarter and the first half of this year was driven by minimized domestic laser purchases by Henry Schein as it reduced its inventories, Biolase stated in a press release. Under the renegotiated distribution agreement with Henry Schein, the majority of its required minimum laser orders for the first quarter were replaced by prepayments for future deliveries of Biolase products, primarily the iLase personal dental laser.
This arrangement delayed the recognition of approximately $6 million in revenue from the first half of 2010 to future periods, while maintaining some portion of normal cash flows during the transition. The company is currently accelerating shipping, which is expected to improve revenue results in the last half of the year as the iLase production continues to rise.
"We believe we are now on the cusp of announcing a new long-term distribution model and look forward to taking advantage of the economic recovery that we believe is beginning to provide some lift in both domestic and international markets end-user sales," said David Mulder, Biolase chairman and CEO, in the release.
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