Biolase, Inc.

Biolase, Inc. (NASDAQ: BIOL) develops, manufactures, markets, and sells laser systems for dental practitioners and their patients. Waterlase (all-tissue) systems and diode (soft-tissue) systems are the two types of laser systems available.

Key Highlights

• The company reported YoY growth of 76% in net revenues to USD 9.53 million in Q3FY21 (ended September 30, 2021) compared to USD 6.54 million in Q3FY20.
• BIOL reported net loss of USD 3.28 million in Q3FY21 vs. net profit of USD 123 thousand in Q3FY20.
• As of September 30, 2021, the company had cash and cash equivalents of USD 33.39 million and total debt of USD 13.51 million.
• BIOL's Q3FY21 cash cycle of 227 days is higher than the industry median of 171 days.
• Its ROE was -10.3% in Q3FY21 vs. the industry median of 1.5%.
• On January 18, 2022, BIOL announced that BIOL and BMW PCW would continue to partner to bring dentists the precision, control, and performance of the sophisticated Waterlase dental laser and BMW award-winning automobiles in FY22.
• Stock is currently trading between its crucial short-term (50-day) and long-term (200-day) SMA support levels.
• The stock is leaning towards the lower end of its 52-week range of USD 0.31 to USD 1.50.
• BIOL's stock price decreased 30.58% and 34.14% in the past six and nine months, respectively.

Technical Price Chart (as of February 08, 2022). Analysis by Kalkine

Conclusion: Considering the sharp correction in the stock price in past nine months, long-term profitability issues, technical indicators, and associated risks, we recommend a "Avoid" rating on the stock at the closing price of USD 0.4096, up 3.88%, as of February 08, 2022.

*The reference data in this report has been partly sourced from REFINITIV.