CEO Todd Norbe accredited increased earnings to the reopening of dental clinics—around 95% of U.S. practices have now reopened. (Image: designium/Shutterstock)
BIOLASE reports revenue rebound
FOOTHILL RANCH, Calif., U.S.: Medical device company BIOLASE expects that its U.S. sales revenue for the third quarter of 2020 will be in line with that of the corresponding pre-COVID-19 period last year. The company’s sales fell sharply in the first half of this year, but its preliminary earnings announcement will bring a degree of optimism as a host of major dental companies prepare to release their third quarter earnings reports in the coming weeks.
No dental company was spared the financial impact of the SARS-CoV-2 pandemic in the first half of this year. The first quarter is typically the busiest period for BIOLASE, and yet the leading dental laser manufacturer’s net revenue of $4.7 million (€3.9 million) posted for the period represented a fall of 54% year over year. In the U.S.—the company’s home base and largest market—sales dipped by 62%.
The company’s earnings for the second quarter showed the extent to which the SARS-CoV-2 pandemic had impacted on dental sales in the U.S. The net revenue of $2.9 million reported for the second quarter represented a 66% year-over-year decrease, and the company’s core U.S. laser sales declined by 72% to $800,000. Positive investors will now interpret this as having been the low-tide mark.
The company said in October that it expects that its third quarter earnings for this year will be between $6.4 million and $6.6 million, which would represent a substantial improvement on the preceding quarters. For its home market, BIOLASE expects to report third quarter sales figures that would be comparable with those from the same quarter last year.
“We want to applaud dentists throughout the country as they are responding to the pandemic with a sense of urgency”
Todd Norbe, president and CEO of the company, said in a note to the press that the rebound could be accredited to the perseverance of dental professionals and the reopening of dental practices. “Our positive preliminary third quarter revenue and renewed optimism are due to several factors, including 95% of dentist offices having reopened in the U.S. and dental procedure levels at 70% of their pre-COVID-19 levels,” Norbe said.
He continued: “We want to applaud dentists throughout the country as they are responding to the pandemic with a sense of urgency, implementing the recommended Centers for Disease Control and American Dental Association guidelines, and ensuring they can care for patients in a safe environment.”
In the first quarter earnings report, Norbe commented that the company had been forced to adjust its operations, moving toward online educational forums to showcase its products and entering into a partnership with a manufacturer of intensive care units (ICUs) in order to supply ICU-grade portable ventilators from its manufacturing facility.