Irvine-based dental laser maker Biolase Technology Inc.’s shares shot up Monday after it said it would be profitable after a restructuring and landing a big order.
Biolase shares closed up 56% with a market value of about $31 million, after rising as high as 90% during the day.
The company said in a statement that it cut 20 jobs as part of a restructuring.
Biolase, which has annual revenue of just more than $40 million, said the restructuring, including cutting costs, would reduce the amount of sales it needs to break even by about 30% to $32 million on an earnings before items basis.
Chief Executive Federico Pignatelli said that it now “becomes highly likely” that Biolase will be profitable in the fourth quarter and beyond.
Biolase also said it received a $9 million order for dental lasers from Henry Schein Inc., its Melville, N.Y.-based distributor that will be completed next June.
The company said it amended its exclusive distribution deal with Henry Schein in North America and would now be allowed to sign supply deals with other companies.
Analyst Jennie Tsai of Rye, N.Y.-based Gabelli & Co. told Reuters that the changes were positive.
She said they allowed Biolase to get more incremental orders and lower its fixed costs to start generating profits.