Leading dental laser maker BIOLASE Technology (BIOL) recently announced preliminary sales data for fourth-quarter 2011. Based on preliminary review, the company expects revenues for the quarter to shoot up 35% year over year to roughly $13.1 million.
For the full year, the California-based company envisions revenues of roughly $48.8 million, an 86% year-over-year surge. BIOLASE noted that barring equipment revenues to Henry Schein (HSIC), net sales for the fourth quarter is expected to climb 82% year over year.
Analysts polled by Zacks are currently expecting revenues of $15 million and $50 million on average for the fourth quarter and fiscal 2011, respectively. The company is expected to report full results on March 8.
According to BIOLASE, the fourth quarter results were disappointing given exceptionally weak sales in December. The company stated that aggressive marketing efforts by Henry Schein led to sales of roughly 180 units of its Waterlase MD Turbo laser systems in the quarter with roughly 120 recorded in December alone.
The aggressive selling effort by Henry Schein to clean-up its inventory of Waterlase MD Turbo lasers ahead of new product launches (the Waterlase MDX 300 and MDX 450 systems) by BIOLASE caused intense competition and disrupted the company’s direct sales efforts in the quarter.
Separately, BIOLASE said that it has inked a definitive agreement with Henry Schein to buy the remaining inventory of Waterlase MD Turbo lasers held by the latter for an undisclosed price. The company expects to use the repurchased units as a source of parts to service the large installed base (of roughly 6,500 units) of Waterlase MD Turbo systems. The new agreement terminates all previous deals between the two parties.
BIOLASE develops and markets lasers and related products for applications in medicine and dentistry. Its key products are dental laser systems that perform a broad spectrum of dental procedures, including cosmetic and complex surgical applications.Read the Full Research Report on HSIC
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- Henry Schein