HispanicBusiness

Sales and marketing expenses totaled $5.3 million for the 2013 first quarter, an increase of $1.3 million, or 30%, as compared to $4.0 million for the prior year quarter. The increase was primarily due to significantly increased convention costs as well as continued development of the Company's direct sales force and increased media and advertising costs.

"Although we expect sales and marketing expenses to decrease overall as a percentage of revenue for 2013 as compared to 2012, many of the dental industry's largest and most important trade shows occur during the first quarter of the year," said Pignatelli. "Attending these shows places an additional burden on BIOLASE because our first quarter is traditionally our slowest and these events require a substantial investment. In addition to our standard trade shows, we attended the International Dental Show in Cologne, Germany, March 10-14, which is the largest dental show in the world and occurs every other year, we attended the 85th Western Veterinary Conference, and we hosted the WCLI Super Symposium, which was held March 21-24. We believe that investing in these additional marketing activities will result in increased revenues throughout the remainder of the year."

General and administrative expenses totaled $2.2 million during the 2013 first quarter, essentially in line with the prior year quarter, despite significantly increased legal expenses primarily related to the enforcement and defense of the Company's IP portfolio.

Pignatelli concluded, "Our IP portfolio is the cornerstone of laser technology in dentistry and a valuable asset of BIOLASE. Several of our competitors currently license our IP in their own laser products. We will not hesitate to enforce and protect our valuable IP portfolio."

Engineering and development totaled $1.0 million during the 2013 first quarter, essentially in line with the prior year quarter.

As a result, the net loss for the 2013 first quarter totaled $2.6 million, or a loss of $0.08 per share, compared to a net loss of $1.7 million, or a loss of $0.05 per share, for the 2012 first quarter.

After removing interest expense of $87,000, non-cash depreciation and amortization expenses of $145,000, and non-cash stock-based, other equity instruments, and other non-cash compensation expense of $494,000, the 2013 first quarter resulted in non-GAAP net loss of $1.9 million, or $0.06 per share, compared with a non-GAAP net loss of $873,000, or a loss of $0.03 per share, for the 2012 first quarter.

Liquidity and Capital Resources
As of March 31, 2013, BIOLASE had approximately $5.2 million in working capital. Cash and cash equivalents totaled approximately $1.2 million at March 31, 2013, compared to $2.5 million at December 31, 2012.

Accounts receivable totaled $10.6 million at March 31, 2013, compared to $11.7 million at December 31, 2012. At March 31, 2013, the Company had two revolving credit facilities totaling $8.0 million, with $4.7 million of available borrowings, in excess of the $3.3 million outstanding. In May 2013, the total of the revolving credit facilities was increased to $10 million.

Financial Outlook
For the year ending December 31, 2013, the Company is reiterating its revenue expectation of approximately $68 million to $72 million. The midpoint of $70 million represents a 22% increase over 2012 net revenue and would also represent record revenue for the Company. The Company also reiterates that it expects to generate cash from operations for the year ending December 31, 2013.