California-based leading dental laser maker BIOLASE Technology ([stock]BLTI[/stock]) recently unveiled its plans to expand BIOLASE Europe GmbH, its European sales and support subsidiary in Germany, by adopting a direct and multi-distributor sales model.
Located in Floss, Germany, BIOLASE's existing fully-owned 16,000 square foot facility is certified to manufacture and service all models of its lasers. The expanded operations will support the rapid growth of dental lasers in emerging markets across Eastern Europe and the Middle East.
Germany, the largest economy in Western Europe, is the third-largest dental laser market in the world with more than 52,000 dentists, corresponding to a third of the U.S. dental market. However, the sales of the company’s all-tissue laser systems in Germany, under exclusive distribution agreements, have lagged other European markets and have been below its expectations.
BIOLASE has opted to adopt, after a thorough evaluation, a similar direct and multi-distributor model in Germany, which was successfully implemented in North America in September 2010. The new model has worked well for the company’s North American operations, which quickly returned to strong sales growth and profitability following its implementation. BIOLASE expects the same in Germany where it already has roughly 300 owners of its all-tissues lasers.
BIOLASE develops and markets lasers and related products for applications in medicine and dentistry. Its key products are dental laser systems that perform a broad spectrum of dental procedures, including cosmetic and complex surgical applications. Dental products distributor Henry Schein ([stock]HSIC[/stock]) is one of its key distributors.
BIOLASE recently stated that, based on preliminary data, it expects revenues for first-quarter 2011 to exceed its updated guidance issued in March 2011. The company expects net sales of roughly $ 10.4 million for the quarter compared with its forecast of $ 9.25-$ 9.75 million. BIOLASE is expected to report full results in May 2011.
The better-than-expected sales were primarily boosted by the expanded direct sales force in North America and healthy initial demand for the company’s new WaterLase iPlus all-tissue laser (launched in January 2011), which is shaping up to be a major future growth driver. BIOLASE, in March 2011, successfully introduced the device to the international dental community in Cologne, Germany.
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