Active stock on News Spotlight – BIOLASE, Inc. (NASDAQ:BIOL)

BIOLASE, Inc. (NASDAQ:BIOL) dropped with a move of -6.12% to $0.46 for the day. The total traded volume was 221120 shares. The stock had closed at $0.49 on the previous day. The stock has recorded a 200-day Moving Average of -28.16% and the 50-Day Moving Average is 1.82%. Shares have moved -68.28% from its 1 Year high price and changed 64.29% from its 1 Year low price. The shares registered one year high at $1.45 and the one year low was seen at $0.28.

BIOLASE, Inc. (NASDAQ:BIOL) recently reported its financial results for its fourth quarter and year ended December 31, 2017.

Net revenue was $46.9 million in 2017, a decrease of 9% from the prior year; however, despite the decrease, the Company made substantial progress on several key fronts in 2017. It continued its strategy of increasing its focus on obtaining new customers, which resulted in new customers in direct markets buying approximately 80% of the all-tissue laser systems sold during the 2017 fourth quarter.

Driven by increased market acceptance and sales of its new Waterlase Express™ system and while continuing to restructure its sales organization, BIOLASE also produced solid increases in the number of placements of Waterlase® all-tissue lasers in the fourth quarter of 2017 compared to the fourth quarter of 2016 and the third quarter of 2017.

2017 Fourth Quarter and Full-Year Financial Results

Net Revenue. Net revenue for the quarter was $12.6 million, compared to net revenue of $13.8 million for the fourth quarter of 2016. The quarter-over-quarter decrease of 8% was primarily driven by decreases in domestic laser systems revenue and domestic imaging revenue, partially offset by increased international laser systems revenue, international imaging revenue, worldwide consumables and other revenue and services revenue. The net revenue for the fourth quarter of 2017 represented a $1.8 million, or 17%, increase over net revenue for the third quarter of 2017.

Net revenue for the year ended December 31, 2017 was $46.9 million, a 9% decrease when compared to net revenue of $51.8 million for the year ended December 31, 2016.

Gross Profit. Gross profit as a percentage of revenue for the fourth quarter of 2017 was 29%, compared to 39% in the fourth quarter of 2016. Gross profit as a percentage of revenue for the year ended December 31, 2017 was 32%, as compared to 39% for the year ended December 31, 2016.

The declines in gross profit as a percentage of revenue for the fourth quarter and the full year of 2017, compared to the comparable periods from last year, was mainly attributable to promotional introductory pricing of Waterlase Express, unabsorbed fixed costs due to lower revenue, and an increase in imaging revenue, which has lower product distribution margins than laser systems revenue. Gross profit typically fluctuates with product and regional mix, selling prices, product costs and revenue levels.

Operating Expenses. Total operating expenses for the fourth quarter of 2017 were $8.3 million, compared to $9.5 million for the fourth quarter of 2016. Sales and marketing expenses decreased $0.5 million, primarily due to decreased sales commission expense and convention related expenses. General and administrative expenses decreased by $0.3 million, primarily due to decreased patent and legal expenses. Engineering and development expenses decreased by $0.9 million, primarily due to payroll-related, consulting and temporary labor expenses and supplies expense. During the fourth quarter of 2017, the Company recognized a non-cash, pre-tax charge related to the disposal of internally developed software of $0.5 million, primarily due to the decision to cancel future deployments of SAP.

Total operating expenses for the year ended December 31, 2017 were $33.2 million, compared to $35.3 million for the year ended December 31, 2016.

Net Loss and Net Loss Per Share Attributable to Common Stockholders. Net loss and net loss per share attributable to common stockholders for the fourth quarter of 2017 was $3.8 million, or a $0.05 loss per share, compared to a net loss and net loss per share attributable to common stockholders of $4.4 million, or a $0.07 loss per share, for the fourth quarter of 2016. The $0.6 million decrease in net loss in this year’s fourth quarter was primarily attributable to a $1.2 million reduction in operating expenses, a $0.5 million increase in non-operating income, net, and an increase in income tax benefit of $0.7 million, partially offset by a reduction of $1.8 million in gross profit.

Net loss for the year ended December 31, 2017 was $16.9 million, or a $0.23 loss per share, compared to a net loss of $15.4 million, or a $0.25 loss per share, for the year ended December 31, 2016.  Net loss attributable to common stockholders for the year ended December 31, 2017, which included a deemed dividend on convertible preferred stock of $4.0 million, was $20.8 million, or a $0.28 loss per share, compared to a net loss attributable to common stockholders of $17.6 million, or a $0.29 loss per share, for the year ended December 31, 2016, which included a deemed dividend on convertible preferred stock of $2.2 million.

The non-GAAP net loss for the fourth quarter of 2017 totaled $3.1 million, or a loss of $0.04 per share, compared with a non-GAAP net loss of $3.5 million, or a loss of $0.05 per share, during the fourth quarter of 2016. The non-GAAP net loss for the year ended December 31, 2017 totaled $13.6 million, or a loss of $0.18 per share, compared with a non-GAAP net loss of $11.2 million, or a loss of $0.19 per share, for the year ended December 31, 2016.

Liquidity and Capital Resources

As of December 31, 2017, BIOLASE had approximately $22.7 million in working capital. Cash and restricted cash equivalents at the end of 2017 were $11.9 million, as compared to $9.2 million on December 31, 2016 and $4.7 million as of September 30, 2017.  Net accounts receivable totaled $10.1 million at December 31, 2017, as compared to $9.8 million at December 31, 2016.

Senior Vice President and CFO John R. Beaver said, “We were very pleased the Company was to close both the $11.4 million (net) rights offering in the fourth quarter along with a $6 million working capital facility in the first quarter of 2018. We are very appreciative of the support and confidence of both our investors and lenders as we continue the transformation of the Company. With our current liquidity, coupled with our borrowing capacity under our new line of credit, we believe we are well positioned

BIOLASE, Inc. is with Insider ownership of 0.60% and institutional ownership counts to 36.20%. Shares float is 69.47M and outstanding shares are at 104.38M. The float short is currently 2.71% and short ratio is 10.69. The stock made income -22.50M on sales of 48.10M. The shares registered RSI (14) at 50.67 and ATR factor was seen at 0.04.

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