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| 8-K - FORM 8-K - BIOLASE, INC | d463002d8k.htm |
 Fred
Furry, COO & CFO January 7, 2013
Nasdaq: BIOL
PAGE
1
EXHIBIT 99.1 |
 This
presentation may contain forward-looking statements that are based on our current expectations, estimates
and projections about our industry as well as management’s beliefs and
assumptions. Words such as “anticipates,” “expects,”
“intends,”
“plans,”
“believes,”
“seeks,”
“estimates,”
“may,”
“will,”
and variations of these words or similar
expressions are intended to identify forward-looking statements. These statements
include projections about our future earnings and margins and speak only as of
the date hereof. Such statements are based upon the information available to us
now and are subject to change. We will not necessarily inform you of such changes. These
statements are not guarantees of future performance and are subject to certain risks,
uncertainties and assumptions that are difficult to predict. Therefore our
actual results could differ materially and adversely from those expressed in any
forward-looking statements as a result of various factors. The important
factors which could cause actual results
to differ materially from those in the forward-looking statements include, among
others, a downturn or leveling off of
demand for our products due to the availability and pricing of competing products and
technologies, adverse international market or political conditions, a domestic
economic recession, the volume and pricing of product sales, our ability to
control costs, intellectual property disputes, the effects of natural disasters and other events beyond our
control and other factors including those detailed in BIOLASE’s filings with the
Securities and Exchange Commission including its prior filings on Form 10-K
and 10-Q. PAGE
2
Safe Harbor Statement |
 •
We are a biomedical company focused on developing, manufacturing, and selling
dental lasers using our revolutionary, proprietary WaterLase technology.
•
We also market and distribute:
–
dental imaging equipment,
–
intra-oral scanners, and
–
other products designed for dental & medical procedures.
•
Net revenue of $49M in 2011; up 87% over 2010.
•
Projecting net revenue >$18M for Q4 and gross revenue >$57.4M for
2012. BIOLASE Company Overview
PAGE 3
–
up 34% over adjusted net revenues of $43M in 2011, which excludes prepaid purchase
orders to Schein totaling $5.9M. 2012 gross revenue excludes $1.1M
inventory repurchase in Q2. |
 Step
Technology
BIOLASE Product Offering
Diagnose and establish
treatment protocol
3D cone beam imaging
•
NewTom
(QR/Cefla)
•
DaVinci
Imaging
(Cefla)
Treatment: all tissue surgical
device
WaterLase
•
WaterLase iPlus
•
WaterLase MDX
•
WaterLase MD Turbo
Treatment: soft tissue
surgical device
Diode laser
•
EPIC
10
diode
laser
•
iLase
portable, battery operated diode
laser
Impression taking for crowns
Digital
•
TRIOS
intra-oral scanner (3Shape)
PAGE 4
BIOLASE’s Total Technology Solution |
 •
WaterLase is a biological method to cut tissue.
•
Water molecules within tissue absorb the laser energy from
the WaterLase, expand, and vaporize, which causes a
biological ablation of the tissue.
–
There is very little trauma or bleeding,
–
No heat or vibration are generated, and
–
Causes little or no pain.
–
Significantly reduces cross contamination.
WaterLase All-Tissue Lasers
PAGE 5
•
Extensive patent protection. |
 How It
Works: WaterLase High Speed Cutting PAGE 6 |
 WaterLase Side by Side with Drill
PAGE
7 |
 WaterLase Soft Tissue Lingual Frenectomy
PAGE
8 |
 WaterLase Atraumatic Pediatric Tooth Extraction
The WaterLase
aiming beam
does not cut the
tissue or generate
heat. The tissue
is cut biologically,
with little or no
pain, when the
laser energizes
water at the
molecular level.
PAGE 9 |
 176,000
dentists
in
US
&
Canada.
1.2M+ dentists in 134 countries.
–
rapid
growth
in
emerging
economies
e.g. China, India & Indonesia.
Current market penetration.
–
approx. 5.0% of dental practices in US.
–
approx. 1.5% worldwide.
Each incremental 1% market penetration equals over $600M revenue.
Dental laser market opportunity is in excess of $50B.
BIOLASE’s Market Opportunity
1
American Dental Association.
2
World Federation of Dentistry.
PAGE 10
Est. total global market
BIOLASE systems sold worldwide 1998-present
20,000+
1,200,000
1
2 |
 Dominant Market Position
Hard-tissue Dental Laser Market
Total Dental Laser Market
80%
45%
BIOLASE Market Share
PAGE 11 |
 EPIC
10 total diode solution –
regulatory clearance late Q3 (EU) & early Q4 (US) 2012.
–
cleared for 3 unique uses:
Soft Tissue Surgery,
Whitening,
Pain Therapy.
iLase
–
portable diode laser.
–
no foot pedal, power cord, or external controls.
Diode Soft-Tissue Dental Lasers
PAGE 12 |
 TRIOS
intra-oral scanner and cart:
–
digital impression
taking.
–
handheld scanner,
operator's control
cart, and software.
–
North American
distribution
agreement
through Aug 2017.
In-Licensed Products
NewTom and Cefla
3D cone beam
imaging products:
–
medical grade
imaging
technology.
–
less cost, less
radiation exposure.
–
U.S. & Canada
distribution
agreement through
Feb 2015.
PAGE 13 |
 PAGE 14
•
291 patents issued & pending.
•
70% are related to WaterLase technology & medical lasers.
Extensive Patent Portfolio
Issued &
Active
Pending
Total
U.S.
81
52
133
International
81
77
158
Total
162
129
291 |
 Returned to direct sales model in North America in August 2010.
Currently consists of 47-person team:
–
37 direct outside sales.
–
10 inside sales representatives and lead generators.
Targeted plans for 42-45 outside reps and 12-15 inside reps.
Global sales offices:
–
Current: Irvine, CA (USA), Floss (Germany), Madrid (Spain),Shanghai (China),
and Mumbai (India).
–
Planned: Dubai (UAE) and Rio de Janero (Brazil).
Sales and Marketing
PAGE 15 |
 Gross
Revenue and Influencers Launched
Cefla’s NewTom
Cone Beam
Imaging products
Introduced iLase™
hand-held soft-
tissue diode laser
Introduced DaVinci
Imaging™
products
Launched
WaterLase
®
iPlus™
all-tissue laser
Launched 3Shape’s
TRIOS™
intra-oral
scanner
CE Mark & FDA
clearance for EPIC 10
F. Pignatelli becomes
Chairman and CEO;
Ended exclusive global
distribution agreement
with Henry Schein, Inc.
Introduced
WaterLase
®
MDX™
all-
tissue lasers
PAGE 16
$4.4
$5.9
$6.2
$9.7
$10.6
$12.1
$13.1
$13.2
$12.3
$13.3
$13.8
>$18M
$0.0
$5.0
$10.0
$15.0
$20.0
Q1 '10
Q3 '10
Q4 '10
Q1 '11
Q2 '11
Q3 '11
Q4 '11
Q1 '12
Q2 '12
Q3 '12
Q4 '12
Q2 '10 |
 Gross
Revenue Trend Analysis (1) Represents gross revenue for Q2 2012, which
does not reflect $1.1 million inventory repurchase from Henry Schein, Inc.
(2) Estimated revenue guidance of >$18M for Q4 2012, last revised January 7,
2013. PAGE 17
$-
$5
$10
$15
$20
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012 (1)
Q3 2012
Q4 2012 (2)
Royalties
Other
Imaging
Diodes
WaterLase |
 •
Continued adoption of core laser products.
–
The WaterLase product line, particularly the iPlus, has demonstrated a solid
growth trend over the past 8 quarters.
–
Significant demad for our EPIC 10 diode soft tissue laser.
•
Growth of Imaging Division (cone beam and cad-cam).
•
Additional new product introductions based on our core technologies.
–
Two
510(k) submissions currently under FDA review.
–
Three additional submissions planned to be filed in near term.
–
More submissions planned for later in 2013.
•
Expand into new markets beyond dentistry.
Growth Strategy
PAGE 18 |
 •
Ongoing growth in core WaterLase sales and trend of adoption.
•
High demand for our new EPIC 10 soft tissue diode laser.
•
Recent & planned new product introductions.
–
EPIC 10 & TRIOS introduced second half of 2012.
–
Additional product launches based on core technologies planned for 2013 and
beyond.
•
Strong IP protection with additional patents pending.
•
Addressing $50B dental laser market opportunity.
–
Large market with little competition for all-tissue lasers.
–
Significant opportunities for WaterLase in other medical markets.
•
Improved financial position.
Investment Considerations
PAGE 19 |
 PAGE 20
•
Over 180 employees worldwide.
•
Sales offices in Floss (Germany), Madrid (Spain),
Shanghai (China), and Mumbai (India); expansion
planned in Dubai (UAE), and Rio de Janero (Brazil).
•
Floss also has service and manufacturing capabilities.
BIOLASE Europe in Floss, Germany
•
Corporate HQ: Irvine, California.
•
57,000 sq. ft. facility houses finance &
administrative, sales, marketing, customer care,
training, manufacturing, and R&D.
•
Can accommodate growth to $250 million.
BIOLASE Today
BIOLASE Corporate Headquarters in Irvine, California |
 Fred
Furry COO & CFO, BIOLASE, Inc.
949.226.8124
ffurry@biolase.net
PAGE
21
Lisa Wilson
President, In-Site Communications, Inc.
212.759.3929
lwilson@insitecony.com |