Revenue during the quarter grew 17.76 percent to $13.23 million from $11.23 million in the previous year period. Gross margin for the quarter expanded 1227 basis points over the previous year period to 42.37 percent. Operating margin for the quarter stood at negative 23.80 percent as compared to a negative 47.64 percent for the previous year period.

Operating loss for the quarter was $3.15 million, compared with an operating loss of $5.35 million in the previous year period.

President and Chief Executive Officer Harold Flynn, Jr. said, "We had a solid third quarter overall with continued operational improvements and excellent financial results. In what is seasonally a weak quarter in the dental industry, total worldwide revenues grew 18 percent, gross margins improved materially and our cash burn decreased significantly. We also completed a $10 million private placement, providing us funds to further the ongoing transition of BIOLASE into a successful, disciplined commercial enterprise. The exceptional work of our U.S. team continued to be a highlight. In the U.S., our largest and most profitable geographic market, the team grew overall revenues by 33 percent and our flagship Waterlase product revenues by 77 percent. International revenues were down slightly, but we are taking the necessary steps to build a substantial international enterprise, which we believe is an important and significant opportunity in the longer term. To help lead our international expansion program, we recruited veteran dental industry executive Holger Arens to fill the newly-created position of Vice President and Managing Director for EMEA. Holger joined our leadership team in early October and is already making important contributions to our efforts to grow and improve our business in EMEA."

The company has spent $1.06 million cash to meet investing activities during the nine month period as against cash outgo of $1.23 million in the last year period.

Cash flow from financing activities was $9.40 million for the nine month period as against cash outgo of $0.02 million in the last year period.

Cash and cash equivalents stood at $12.65 million as on Sep. 30, 2016, down 16.74 percent or $2.54 million from $15.19 million on Sep. 30, 2015.

Working capital declines
BIOLASE, Inc. has witnessed a decline in the working capital over the last year. It stood at $20.83 million as at Sep. 30, 2016, down 5.25 percent or $1.15 million from $21.98 million on Sep. 30, 2015. Current ratio was at 2.27 as on Sep. 30, 2016, up from 2.20 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 49 days for the quarter from 134 days for the last year period. Days sales outstanding went down to 69 days for the quarter compared with 78 days for the same period last year.

Days inventory outstanding has decreased to 82 days for the quarter compared with 163 days for the previous year period. At the same time, days payable outstanding went down to 101 days for the quarter from 106 for the same period last year.