Biolase Technology Inc., while relatively small in terms of revenue, has been one of the fastest-growing companies based in Orange County. The San Clemente-based medical device manufacturer ranked No. 4 on the Business Journal’s annual list of fastest-growing OC companies, with sales growth of 672.7% in the three years ended June 30.
In raw numbers, Biolase went from $1.72 million in revenue for the 12-month period ended June 30, 1998, to $13.29 million in sales through the 12 months ended this June 30.
For the third quarter, Biolase reported earnings of $102,000 on revenue of $4.7 million, compared with a net loss of $1.2 million on revenue of $2.2 million for the third quarter of 2000.
Biolase’s third-quarter earnings performance was ahead of schedule, according to Jeffrey Jones, the company’s chief executive. In a release, Jones noted that the company had forecast reaching profitability by the end of this year’s fourth quarter. He said the company expects demand for Biolase’s dental laser technology to grow.
In particular, Biolase noted that the introduction of LaserSmile, a cosmetic tooth-whitening system, made a contribution to its third-quarter sales growth. Biolase officials said they believe that their research and development efforts position the firm to be a player in that and similar markets.
“The market for dental lasers is potentially larger than any other medical laser market, and the market for cosmetic procedures is expected to increase proportionately with the aging of the youth-conscious baby boom generation,” said Keith Bateman, Biolase’s vice president of global sales.
According to Biolase, the prospective U.S. dental laser market is estimated at $1 billion; the company projects worldwide potential to exceed $5 billion. Competitors include American Medical Technologies Inc. of Corpus Christi, Texas, BriteSmile Inc. of Walnut Creek and Lumenis Ltd., formerly ESC Medical Systems, an Israeli company.
Perhaps Biolase’s best-known product is the Waterlase, a hard- and soft-tissue laser cutting system introduced in 1996. Waterlase uses electromagnetic energy to transform atomized water droplets into smaller energized water particles to remove hard and soft tissue.
In September, Biolase began marketing LaserSmile in Europe, presenting the system at a symposium in Mallorca, Spain. Biolase officials report that distributors committed to initial purchases of the system.
Additionally, Biolase said it received approval to sell Waterlase in South Korea, and projects sales in that country to reach $1 million in 2002.
Besides lasers, Biolase also produces what it calls specialized biomaterials for medical and dental specialties.
Biolase employs 71 people in San Clemente and 98 companywide, 31% more than in 2000. It began developing and shipping laser-based dental systems in 1991; five years later, it began to phase out traditional dental laser systems. n
