BIOLASE(US:BIOL)2019-08-09 18:02Revenue Performance - Revenue from products and services recognized at a single point in time accounted for 81% and 82% of net revenue for the three and six months ended June 30, 2019, respectively[39]. - Revenue from services recognized over time accounted for 19% and 18% of net revenue for the three and six months ended June 30, 2019, respectively[40]. - Revenue from the United States for the three months ended June 30, 2019, was $5.9 million, down from $7.2 million for the same period in 2018[50]. - International revenue for the three months ended June 30, 2019, was $2.7 million, down from $5.0 million for the same period in 2018[50]. - For the three months ended June 30, 2019, net revenue was $8,645,000, a decrease of 28.5% from $12,154,000 in the same period of 2018[121]. - Total net revenue decreased by $3.5 million, or 28.9%, during the three months ended June 30, 2019, compared to the same period in 2018[150]. - In the U.S., net revenue decreased by $1.3 million, or 17.7%, primarily from laser systems sales, which decreased by $0.9 million, or 31.0%[153]. - International net revenue declined by $2.2 million, or 44.9%, primarily due to a $2.0 million, or 50.0% decrease in laser product sales outside the U.S.[153]. - For the six months ended June 30, 2019, total net revenue decreased by $3.2 million or 14.4% to $18.971 million compared to $22.174 million in the same period in 2018[165]. Product Sales Breakdown - For the three months ended June 30, 2019, laser systems accounted for 56.9% of total sales, down from 65.2% in the same period of 2018[54]. - Imaging systems represented only 0.7% of sales for the three months ended June 30, 2019, a decrease from 3.1% in the prior year[54]. - Consumables and other products increased to 24.2% of sales in the three months ended June 30, 2019, compared to 18.9% in the same period of 2018[54]. - Services contributed 18.2% to total sales for the three months ended June 30, 2019, up from 12.8% in the same period of 2018[54]. - Sales of laser systems accounted for 56.9% of total revenue in the three months ended June 30, 2019, down from 65.2% in the same period in 2018[150]. - The company experienced a significant decline in imaging systems revenue, which fell by 83.0% year-over-year[150]. - Imaging systems revenue decreased by $0.3 million or 83% during the three months ended June 30, 2019 compared to the same period in 2018, primarily driven by a focus on laser sales[154]. Financial Position - Total deferred revenue as of June 30, 2019, was approximately $2.5 million, compared to $2.5 million as of December 31, 2018[47]. - As of June 30, 2019, total inventory was valued at $12.334 million, slightly up from $12.248 million as of December 31, 2018[75]. - The company reported a net property, plant, and equipment value of $1.585 million as of June 30, 2019, down from $1.975 million at the end of 2018[76]. - Goodwill remained unchanged at $2.9 million as of both June 30, 2019, and December 31, 2018, with no impairment identified[78][79]. - Total accrued liabilities decreased to $4.899 million as of June 30, 2019, from $7.538 million at the end of 2018[80]. - Long-term debt increased to $13.328 million as of June 30, 2019, compared to $10.836 million at the end of 2018[83]. - The company maintains cash and cash equivalents with established commercial banks, which may exceed federally insured limits[29]. - The company has not had a significant amount of uninvoiced receivables at June 30, 2019, and December 31, 2018[46]. - Cash and cash equivalents decreased by $4.3 million at June 30, 2019, compared to December 31, 2018, primarily due to net cash used in operating activities of $6.6 million[177]. - As of June 30, 2019, working capital was approximately $13.8 million, consisting of $4.0 million in cash and $9.7 million in net accounts receivable[183]. Expenses and Losses - Gross profit for the three months ended June 30, 2019, was $3.38 million, representing 39.1% of net revenue, compared to $4.31 million, or 35.4%, for the same period in 2018[144]. - Total operating expenses for the three months ended June 30, 2019, were $6.72 million, or 77.7% of net revenue, compared to $8.99 million, or 73.9%, for the same period in 2018[144]. - The company reported a net loss of $3.90 million, or 45.1% of net revenue, for the three months ended June 30, 2019, compared to a net loss of $4.91 million, or 40.4%, for the same period in 2018[144]. - Non-GAAP net loss for the three months ended June 30, 2019, was $2.82 million, compared to a non-GAAP net loss of $4.06 million for the same period in 2018[149]. - Net loss totaled approximately $8.8 million for the six months ended June 30, 2019, compared to a net loss of $9.9 million for the same period in 2018[175]. - Cost of revenue for the six months ended June 30, 2019 was $12.070 million, a decrease of $2.763 million or 18.6% from $14.833 million in the same period in 2018[167]. - Gross profit for the six months ended June 30, 2019 was $6.901 million, down $440, or 6.0%, compared to $7.341 million in the same period in 2018[167]. - Sales and marketing expenses for the six months ended June 30, 2019 decreased by $1.4 million or 16.3% compared to the same period in 2018[170]. - General and administrative expenses decreased by $1.1 million or 18.4% for the six months ended June 30, 2019, compared to the same period in 2018[171]. Debt and Financing - The company entered into a five-year secured Credit Agreement with SWK Funding LLC, borrowing $12.5 million to support growth initiatives[94]. - Interest expense related to the SWK Loan was approximately $0.5 million for the period ended June 30, 2019, with a weighted-average interest rate of 12.7%[98]. - The company plans to use proceeds from the SWK Loan to broaden its customer base and increase product utilization for higher margin consumables revenue[94]. - The company has maintained compliance with financial and non-financial covenants under the Credit Agreement, including maintaining unencumbered liquid assets of no less than $1.5 million[95]. - An amendment to the Credit Agreement increased the total commitment from $12.5 million to $15.0 million, with warrants issued for 115,175 shares of common stock[141]. - The company’s total future payments for interest are estimated at $6.721 million as of June 30, 2019[106]. - The company must maintain minimum liquidity of $1.5 million, increasing to $3.0 million if certain revenue and EBITDA levels are not achieved by September 30, 2019[186]. Strategic Plans - The company plans to expand its product line and clinical applications, focusing on new clinical solutions for dental and adjacent medical applications[139]. - The company aims to increase consumables revenue by promoting single-use accessories used with its laser systems[138]. - The company intends to improve financial results by increasing revenues through product expansion and reducing expenses[188].