A Medical Device Daily Staff Report
Biolase Technology (Irvine, California) reported that it has completed a corporate-wide reorganization that has achieved the goal of reducing, by nearly 30%, its total current sales breakeven level.
The company said that it would also cut 20 positions from its workforce.
Federico Pignatelli, chairman/CEO, commented, "This restructuring was performed rapidly, but also with great care. I am pleased to report that the cost reduction was achieved while keeping the company structure intact."
Pignatelli continued, "In essence, what we eliminated was unnecessary and non-essential for Biolase to perform successfully and with efficiency. At the same time, we are continuing our critical innovation and new product development activities. As the technology leader in laser dentistry, it is paramount for us to keep our R&D efforts at their historical levels, and that is where they will remain. With that in mind, our R&D department has been minimally affected by this restructuring. He added that as a consequence of the new business model, and the reduction in overall fixed costs, the current yearly sales breakeven level is now at nearly $32 million on an EBITDA cash basis. It therefore becomes highly likely that Biolase will be profitable in the fourth quarter of 2010 and beyond."