Biolase shares tank after the medical device company reports gaping 3rd-quarter losses and sacks its sales vice presidents, saying it will court a potential acquirer.
Biolase (NSDQ:BIOL) shares plunged today after the medical device company said it's headed for the auction block, having seen its 3rd-quarter losses widen by a whopping 639% and sacked its sales and marketing heads after badly missing Wall Street's earnings expectations for the quarter.
Biolase said it's interviewing investment banks to lead the search for potential acquirers "to explore possible M&A transactions with the goal of maximizing shareholder value," according to a press release.
"The company is currently valued at approximately 1x revenue, and we believe that certain of its assets could be worth significantly more. With developmental pre-launch business opportunities in ophthalmology, otolaryngology, orthopedics, podiatry, pain management, and veterinary therapeutic laser products, Biolase has more opportunities than we can pursue on our own. Selling 1 or more of them could generate the funds that could give us the working capital we need for our core businesses," chairman & CEO Federico Pignatelli said in prepared remarks.