BioLase Postpones Investor Meetings After Stock Sale Delay
The company and its outside auditor aren't commenting on why the SEC had questions about its proposed offering.
From Bloomberg News
August 5, 2003
BioLase Technology Inc., a manufacturer of dental lasers, postponed 12 investor meetings across the U.S. because of a delay in obtaining Securities and Exchange Commission approval for the company's offering of 2.5 million new shares, Chairman Federico Pignatelli said Monday.
The San Clemente-based company has decided to put off the roadshow until next month, said Jerry Brown, a managing director of Needham & Co., a managing underwriter for the stock sale. He said the delay came after a partner at BioLase's outside audit firm requested more time to study the company's finances.
PricewaterhouseCoopers, BioLase's auditor, is studying several issues, including the company's methods of accounting for revenue, Brown said.
PricewaterhouseCoopers spokesman Mike Ascolese declined to comment, citing the firm's confidentiality policy.
Pignatelli said the company's revenue accounting practices aren't being questioned, calling it an "unfounded rumor." He did not return telephone calls to his home and office asking him to explain why Brown said the postponement was because of revenue-recognition issues.
Pignatelli said the delay in regulatory approval occurred because the SEC asked the company to answer questions about the registration document BioLase filed for its proposed stock sale.
He declined to say what the SEC questions were. The registration, filed June 19, has been amended twice by the company.
BioLase postponed presentations that were scheduled to begin last week in New York and continue to cities including Kansas City, Chicago, Dallas, San Diego and Salt Lake City.
Edson Rood, chief financial officer of BioLase, said that PricewaterhouseCoopers assigned the company a new audit partner earlier this year because of the Sarbanes-Oxley law, which requires rotation of auditor partners every five years. He declined to comment on whether the company's revenue accounting policies are under review.
BioLase's flagship product is Waterlase, which dentists use to cut through bone and teeth instead of using a drill. BioLase sells the laser for $50,000.
BioLase shares, which have doubled this year, fell 50 cents to $10.95 in Nasdaq trading.
The company on July 23 reported net income of $1.7 million, or 8 cents a share, in the quarter ended June 30, compared with a loss of $669,000, or 3 cents, in the year-earlier period. Sales increased 55% to $11.1 million.
For Mr. Brown look at Federal District Court Ann Arbor, Michigan fall 1998. He has recently been signing invitation to the conferene in Atlantic City presented by Biolase.
Mr Shock is a past oficer of the company currenty has a title of regional manager splits residence between Hawthorne, Fl and a yacht that has been in Fort Lauderdale, Fl I believe it has recently moved to the islands or St Augistine Mr. Schock has exercised and sold 10 of thousands of options over the last 120 days you should be able to confirm this at Biolase.
I do not find the people you named listed as either members of the board or as executives with Biolase.
Can you give me some documentation that shows these folks are currently employed by Biolase or have some verifiable influence on the activities of the company?
If these people, Brown and Shock, are employed by Biolase, then we must trust the management of the company to make sound personnel decisions. Since I have never heard of either person before, I know nothing of their background. Their biggest fault in life may be that they are willing to join organizations that require a greater tolerance for risk than most are willing to accept.
I believe you have an agenda that goes farther than informing this board of Mr Brown's past business afiliations. Unless you can produce firm evidence that Mr Brown sought to decieve I think that you should shut your mouth and open your mind.
I agree but these people have a history over several years of leaving investors and customers with nothing Mr Brown also has been involved with Dicon, Humphery reativ and other companies that have fizzled. Mr. Shock American Dental Technologies and Premier and the list goes on.
There was a time in Silicon Valley when it was said that venture capital firms would not listen to an entrepeneur who had not gone bankrupt at least once.
There are so many things that can cause a company to fail. If manufacturing quality was poor, should the marketing executive be barred from the industry? Should Biolase focus on hiring only people who have backgrounds in railroading or radio broadcasting to insure they are not contaminated by people who have background in their industry?
It would be a contribution to this board for someone to point out a current member of Biolase board or a Biolase executive who has been implicated in fraud at any other company.
Or explain why a salesperson from a failed company with a similar product line should be barred from employment if Biolase believes that person can make a contribution.
cats. Not sure where you're getting the idea I'm out of blti. It remains my biggest holding (followed by MRGE). I remain quite attached.
You can ignore my disturbance over the secondary (posted the day it came out and ever since) but when it comes to financial facts, ratios, SEC clippings and CC notes All I'm doing is posting facts.
When parrying with a basher like pebster (pkewl is on ignore for me) I acknowledge the valid points they make. That doesn't make me out.
If you have the csh blti is a buy right here. The only reason it isn't a screaming buy is the uncertainty and the shorts. The fact that I've girded my loins for a trip below 10 is my way of dealing with the short term technical reality, not my long term investment decision.
Speaking of management and companies how about BILLY BROWN the new marketing guy, remember KREATIV and the total loss of the company, lawsuits by ADLI for false advertiing deceptive marketing pratices etc. convicted in federal court in Michigan large fine assesed sale to WELCH ALLYN and closing of company.