Biolase Cuts Jobs, Restructures
IRVINE, Calif., July 14, 2010 — Dental laser maker Biolase Technology Inc. announced Tuesday that it has eliminated 20 jobs and made additional cost-cutting and restructuring measures in an effort to boost profits.
As part of a corporate restructuring, CFO Brett L. Scott has left, and his responsibilities will be handled for an interim period by Chairman and CEO David M. Mulder and by Biolase's corporate controller.
Biolase said the elimination of 20 workers and other cost-reduction activities are expected to reduce corporate expenses by about $3 million a year. The company will incur $70,000 in charges in the second quarter of 2010 related to severance and other restructuring expenses.
Mulder said the company's performance in the first half of the year was expected to be impaired by the challenging economic climate and the recent change it made to its commercial business model. "We see many reasons to be positive about the future of the business, and we remain fully committed to ongoing vigilance on our cost controls and improving our balance sheet," he said.
In other Biolase news, the company announced the appointment of Federico Pignatelli as executive vice chairman. Over the past 16 years, Pignatelli has served as chairman of the board, as interim CEO and as president. He accepted the new position with a cash compensation of $1 per year, until the company has achieved profitability for two consecutive quarters, Biolase said.
"I am looking forward to working very closely with him in reshaping and restructuring the company, continuing significant changes in the current business model and cost structure, and continuing to pursue technological advancements critical to our success," Mulder said.
For more information, visit: www.biolase.com
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