Irvine, CA-based dental laser company Biolase Technology (NASDAQ: BLTI) is eliminating 20 positions and making additional cost-cutting moves "to better position" it for future profitability. The announcement comes with the departure of CFO Brett Scott, whose responsibilities will be taken on by Chairman and CEO David Mulder and the company's corporate controller in the interim.
The job cuts and other cost-cutting measures are expected to reduce corporate expenses by approximately $3 million on an annual basis, Biolase says in a statement. "As previously discussed, the top-line performance of the Company in the first half of the year was expected to be impaired by the challenging economic times and the recent change in our commercial business model," Mulder says in a statement. "That said, we see many reasons to be positive about the future of the business, and we remain fully committed to ongoing vigilance on our cost-controls and improving our balance sheet."
Biolase changed the way it accounts for revenue from its distribution partner, Melville, N.Y.-based Henry Schein, during the first quarter, according to the Orange County Business Journal. The company takes prepayment from Schein, which allows revenue to be recognized in future quarters, instead of it being recognized upon shipment of the devices, the paper adds.
Shares of Biolase closed at $1.38 Monday on NASDAQ, Reuters reports.