BIOLASE Inc (BIOL) 2013 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by and welcome to the Biolase 2013 second quarter and six-month results conference call. During today's presentation all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions. (Operator Instructions) This conference is being recorded today, August 7, 2013. I would now like to turn the conference over to Alex Arrow, President and CEO of Biolase. Alex, please go ahead.

女士們、先生們，感謝你們的支持並歡迎參加 Biolase 2013 年第二季和六個月業績電話會議。在今天的演示過程中，各方都將處於只聽模式。演講結束後，會議將開放提問。 （操作員說明）本次會議於今天（2013 年 8 月 7 日）進行錄製。我現在將會議轉交給 Biolase 總裁兼執行長 Alex Arrow。亞歷克斯，請繼續。

Thank you, good afternoon, everyone, and welcome to Biolase's 2013 second quarter and six months results conference call. On the call with me is our Chairman and CEO, Federico Pignatelli, and our CFO, Fred Furry.

謝謝大家，下午好，歡迎參加 Biolase 2013 年第二季和六個月業績電話會議。與我一起通話的是我們的董事長兼執行長 Federico Pignatelli 和我們的財務長 Fred Furry。

Federico is dialing into the call from Italy where he is because he, unfortunately, has to care for his severely ill father. Federico will make some opening remarks, and then he will turn the call over to Fred to run through our results and comparisons to prior periods.

費德里科從義大利撥打電話，因為不幸的是，他必須照顧病重的父親。費德里科將發表一些開場白，然後他會將電話轉給弗雷德，讓他回顧我們的結果以及與之前時期的比較。

After Fred's discussion, I will discuss some of our business and clinical highlights, and we'll then open the call to answer your questions.

在 Fred 的討論之後，我將討論我們的一些業務和臨床亮點，然後我們將開始通話來回答您的問題。

Before we begin, please be aware that there are a number of forward-looking statements that will be made during this presentation. Forward-looking statements are any statements that are not historical facts and can be identified by words and phrases including can be, may affect, may depend, believe, estimate, project, and similar words or phrases. These forward-looking statements are based on Biolase's current expectations and are subject to a variety of known and uncertain risks and uncertainties that could cause the Company's actual results to differ materially from the statements contained in this presentation. These risk factors are discussed in the Company's filings with the SEC. Biolase cautions you that any forward-looking information provided is not a guarantee of future performance. Any forward-looking statements represent the Company's views only as of today and should not be relied upon as representing our views as of any subsequent date.

在開始之前，請注意，本次演示期間將做出一些前瞻性陳述。前瞻性陳述是指任何非歷史事實的陳述，可以透過詞語和短語來識別，包括可以是、可能影響、可能依賴、相信、估計、預測以及類似的詞語或短語。這些前瞻性聲明是基於Biolase 目前的預期，並受到各種已知和不確定的風險和不確定因素的影響，這些風險和不確定因素可能導致公司的實際結果與本簡報中包含的陳述存在重大差異。這些風險因素在公司向 SEC 提交的文件中進行了討論。 Biolase 提醒您，所提供的任何前瞻性資訊並不能保證未來的業績。任何前瞻性陳述僅代表本公司截至目前的觀點，不應被視為代表我們在任何後續日期的觀點。

For the benefit of those who may be listening to this call as a replay it will be held and recorded and a replay will be available on the Biolase website shortly after this call's completion. When listening to this call, please refer to the press release issued earlier today announcing the Company's results for the quarter and six months ended June 30, 2013. If you do not have a copy of this release, it is available on the Biolase website at www.biolase.com.

為了那些可能以重播形式收聽本次電話會議的人員的利益，本次電話會議將被保留和錄製，並在本次電話會議結束後不久在 Biolase 網站上提供重播。在收聽本次電話會議時，請參閱今天早些時候發布的新聞稿，該新聞稿公佈了公司截至2013 年6 月30 日的季度和六個月業績。如果您沒有此新聞稿的副本，可以在Biolase 網站上取得： www.biolase.com。

The Company's results for the second quarter and six months ended June 30, 2013, can also be found on the Company's June 30, 2013, Form 10-Q, which the Company will file with the SEC later this week.

該公司截至2013 年6 月30 日的第二季和六個月的業績也可以在公司2013 年6 月30 日的10-Q 表格中找到，該公司將於本週稍後向SEC 提交該表格。

With that, I'd like to turn the call over to Federico Pignatelli. Federico, please go ahead.

說到這裡，我想將電話轉給 Federico Pignatelli。費德里科，請繼續。

Thank you, Alex, and good afternoon, everyone. I want to welcome you all to our 2013 second quarter and six months results conference call. Today we will review the progresses and various accomplishments achieved at Biolase during the second quarter of 2013 as well as comments on our progress in key initiatives that will impact the coming periods.

謝謝你，亞歷克斯，大家下午好。歡迎大家參加我們的 2013 年第二季和六個月業績電話會議。今天，我們將回顧 2013 年第二季 Biolase 的進展和各項成就，並對我們在影響未來時期的關鍵舉措方面取得的進展發表評論。

First, let me briefly recap the 2013 second quarter. Net revenues in the second quarter totaled $14.2 million, an increase of $2 million compared to $12.2 million in prior-year quarter. While we experienced 17% net revenue growth for the second quarter of 2013 when compared to the prior-year second quarter, these results were approximately 7% to 10% lower than our internal growth for the quarter.

首先，我簡單回顧一下2013年第二季的情況。第二季淨收入總計 1,420 萬美元，比去年同期的 1,220 萬美元增加了 200 萬美元。雖然與去年第二季相比，我們 2013 年第二季的淨收入成長了 17%，但這些結果比我們本季的內部成長低了約 7% 到 10%。

While we are experiencing growth in all areas of our businesses, we fell short of our own internal expectations due to an unusually slow quarter end and for our domestic laser sales; Germany not performing as expected; a delay in US deliveries of the latest CAD/CAM system model from our European vendor; and a pair of problems that hurt our sales in Canada.

雖然我們業務的所有領域都在成長，但由於季度末和國內雷射銷售異常緩慢，我們沒有達到我們自己的內部預期；德國表現不如預期；我們的歐洲供應商向美國交付最新 CAD/CAM 系統模型的時間延遲；以及影響我們在加拿大銷售的兩個問題。

Canada has historically been a significant revenue-generating region for us but second quarter Canadian revenues were hurt by severe flooding in parts of Canada in June that impeded iPlus sales. A delay in our anticipated Canadian health agency approval for our Epic diode soft-tissue laser also was part of the issue.

加拿大歷來是我們重要的創收地區，但第二季加拿大的收入受到 6 月加拿大部分地區嚴重洪災的影響，洪災阻礙了 iPlus 的銷售。我們預期的加拿大衛生機構對我們的 Epic 二極管軟組織雷射的核准延遲也是問題的一部分。

Compounding these headwinds domestically, where the continued uncertainty and confusion over the recent implementation of Obamacare and a sharp rise in interest rates. We anticipated Canadian approval of the Epic 10 in the current quarter, and we have fixes going into effect to address our German distributor situation.

最近歐巴馬醫改實施帶來的持續不確定性和混亂以及利率大幅上升，加劇了國內的不利因素。我們預計加拿大將在本季度批准 Epic 10，並且我們已採取修復措施來解決德國經銷商的問題。

We also believe that the European manufacturer of our CAD/CAM product line would provide units in sufficient quantities to meet our demand during the current quarter.

我們也相信，我們 CAD/CAM 產品線的歐洲製造商將提供足夠數量的設備來滿足我們本季的需求。

The Company reported a loss of $2.6 million for the 2013 second quarter compared to a loss of $1.9 million for the entire year quarter.

該公司報告 2013 年第二季虧損 260 萬美元，而全年季度虧損 190 萬美元。

The increased loss during the 2013 second quarter was primarily due to our continued investment in sales, marketing, and advertising efforts in North America and internationally as well as a little cost incurred to enforce and protect our valuable IP portfolio. We expect that both investments will yield future returns.

2013 年第二季虧損增加主要是由於我們在北美和國際上對銷售、行銷和廣告工作的持續投資，以及執行和保護我們寶貴的智慧財產權組合所產生的少量成本。我們預計這兩項投資都將在未來產生回報。

We have been following our new direct marketing strategy in the US and Canada of becoming a Total Technology Solution provider to further their adoption of our proprietary WaterLase YSGG technology to a larger community of dentists as a "must-have." We are therefore focused on selling our entire line of products, including our full line of hard-and soft-tissue lasers and our digital imaging in CAD/CAM intra-oral scanning systems.

我們一直在美國和加拿大遵循新的直接行銷策略，成為整體技術解決方案提供商，以進一步將我們專有的 WaterLase YSGG 技術推廣到更大的牙醫社區，作為「必備」。因此，我們專注於銷售我們的全系列產品，包括全系列硬組織和軟組織雷射以及 CAD/CAM 口腔內掃描系統中的數位成像。

Concentrating on selling our Epic 10 diode soft-tissue lasers and our lines of licensed digital imaging and CAD/CAM equipment has caused a short-term negative impact on our traditional margin, but we expect that this strategy will result in opportunities to leverage these relationships and sell those new customers our flagship WaterLase iPlus.

專注於銷售我們的 Epic 10 二極管軟組織雷射以及我們的授權數位成像和 CAD/CAM 設備系列對我們的傳統利潤造成了短期負面影響，但我們預計這項策略將帶來利用這些關係的機會並向這些新客戶出售我們的旗艦產品WaterLase iPlus。

So, ultimately, the strategy should advanced the penetration of our unique technology into the mainstream of dental practices. We strongly believe that a dentist that integrates a soft-tissue diode into their practice, along with other cutting-edge technologies, and experiences the tremendous benefits of such integration will ultimately purchase an all-tissue WaterLase, the ultimate advancement in virtually painless and clinically superior dental surgery.

因此，最終，該策略應該推動我們獨特的技術滲透到牙科診所的主流中。我們堅信，將軟組織二極體與其他尖端技術整合到其實踐中並體驗到這種整合的巨大優勢的牙醫最終將購買全組織 WaterLase，這是幾乎無痛和臨床的最終進步高級牙科手術。

Each time we place an imaging product or one of our Epic soft-tissue diode lasers or one of our licensed imaging products with a new customer, it creates future selling opportunities.

每次我們向新客戶展示一款成像產品或一款 Epic 軟組織二極體雷射或一款授權成像產品時，都會創造未來的銷售機會。

Just as Biolase has recently upgraded its board of directors with the addition of two highly qualified new members, so, too, has continued upgrade in senior management. We appointed a new President and COO when current Director Alexander Arrow took that role in June.

正如 Biolase 最近升級了董事會，增加了兩名高素質的新成員一樣，高階管理層也不斷升級。現任董事 Alexander Arrow 在 6 月接任後，我們任命了一位新總裁兼營運長。

Further, in July we appointed Orlando Rodrigues as our new Vice President of Marketing. These changes are coming at a time when we are free of the selling constraints that Biolase operated under from 2010 to 2012 when we moved away from Henry Schein and can finally concentrate on a comprehensive marketing platform. Moreover, they are joining the Company as we are entering the second half of the year, a time during which Biolase traditionally generates 55% to 60% of its annual revenues.

此外，7 月，我們任命奧蘭多·羅德里格斯 (Orlando Rodrigues) 為新任行銷副總裁。這些變化發生之際，我們已經擺脫了 Biolase 在 2010 年至 2012 年期間營運時受到的銷售限制，當時我們離開了 Henry Schein，最終可以專注於綜合行銷平台。此外，他們是在我們進入下半年時加入公司的，而在此期間，Biolase 傳統上佔其年收入的 55% 至 60%。

Alex will discuss our business in greater detail in a few minutes. But first, Fred Furry, our CFO, will review our financial results for the quarter and six months ended June 30, 2013. Fred.

亞歷克斯將在幾分鐘內更詳細地討論我們的業務。但首先，我們的財務長 Fred Furry 將審查我們截至 2013 年 6 月 30 日的季度和六個月的財務業績。Fred。

Thank you, Federico, and good afternoon. For the quarter ended June 30, 2013, we reported net revenue of $14.2 million versus $12.2 million for the second quarter of 2012, representing quarter-over-quarter growth of $2 million. Net revenue for the six months ended June 30, 2013, totaled $28.8 million, an increase of approximately $4.3 million, or 18%, as compared with net revenue of $24.5 million for the six months ended June 30, 2012.

謝謝你，費德里科，下午好。截至 2013 年 6 月 30 日的季度，我們公佈的淨收入為 1,420 萬美元，而 2012 年第二季度的淨收入為 1,220 萬美元，環比增長了 200 萬美元。截至2013年6月30日止六個月的淨收入總計2,880萬美元，較截至2012年6月30日止六個月的淨收入2,450萬美元增加約430萬美元，即18%。

The increase to net revenue for the three- and six-months ended June 30, 2013, were primarily attributed to increased sales of the Company's core laser systems and increased sale of our licenses imaging products.d

截至 2013 年 6 月 30 日的三個月和六個月淨收入的增長主要歸因於公司核心雷射系統銷售的增加以及我們許可成像產品銷售的增加。

Laser system net revenue increased by approximately $1.3 million, or 16% in the 2013 second quarter as compared to the prior-year quarter and by approximately $2.1 million, or 12% in the six months ended June 30, 2013 compared to the same period of 2012.

2013 年第二季雷射系統淨收入較去年同期增加約 130 萬美元，或 16%；截至 2013 年 6 月 30 日的六個月內，較去年同期增加約 210 萬美元，即 12%。2012 年。

The strong response we have received from the dental industry domestically and internationally regarding our new Epic 10 diode platform, which received FDA clearance in the fourth quarter of 2012, has already shown that it will be a significant contributor to revenue for the remainder of 2013 and beyond.

我們的新 Epic 10 二極體平台在 2012 年第四季度獲得 FDA 批准，並得到了國內外牙科行業的強烈反響，這已經表明它將成為 2013 年剩餘時間收入的重要貢獻者，超過。

This is very promising, as we believe that dentists who purchase diode lasers, whether our new Epic 10 or some other brand, are more likely to purchase our all-tissue WaterLase iPlus system in the future.

這是非常有前途的，因為我們相信購買二極體雷射的牙醫，無論是我們的新 Epic 10 還是其他品牌，未來更有可能購買我們的全組織 WaterLase iPlus 系統。

Imaging revenues, which included both cone beam digital imaging and CAD/CAM intra-oral scanners totaled approximately $1.4 million, or 10% of net revenue during the 2013 second quarter as compared to $904,000, or 8% of net revenue for the prior-year quarter.

Imaging revenues, which included both cone beam digital imaging and CAD/CAM intra-oral scanners totaled approximately $1.4 million, or 10% of net revenue during the 2013 second quarter as compared to $904,000, or 8% of net revenue for the prior-year四分之一.

For the six months ended June 30, 2013, imaging revenues increased by approximately $1.3 million, or 128% as compared to the same period of 2012. The increase for the three and six months ended June 30, 2013, were driven by increased sales and marketing efforts and increased equipment offerings at various value propositions.

截至2013年6月30日的六個月，成像收入比2012年同期增加了約130萬美元，即128%。截至2013年6月30日的三個月和六個月的增長是由銷售額和行銷工作並增加了各種價值主張的設備供應。

As a reminder, Biolase added Cefla and NewTom cone beam digital imaging to its product offerings in late 2011 and early 2012 and further expanded its imaging product offerings with the addition of 3Shape's Trios family of CAD/CAM intra-oral scanners in late 2012. Revenues from these product lines continue to grow quarter-over-quarter, and we expect this positive trend to continue throughout the year as we continue to gain traction in the market and increase our imaging product offering.

需要提醒的是，Biolase 在2011 年底和2012 年初將Cefla 和NewTom 錐束數位成像添加到其產品中，並在2012 年底添加了3Shape 的Trios 系列CAD/CAM 口腔內掃描儀，進一步擴大了其成像產品系列。這些產品線的銷售額繼續逐季度增長，隨著我們繼續獲得市場吸引力並增加我們的成像產品供應，我們預計這一積極趨勢將在全年持續。

Digital imaging and CAD/CAM present tremendous market opportunities and are excellent complements to our core internally developed laser products.

數位成像和 CAD/CAM 帶來了巨大的市場機會，是對我們內部開發的核心雷射產品的絕佳補充。

Consumables and other net revenue, which includes consumable products such as disposable tips, increased by approximately $162,000, or 11% for the 2013 second quarter as compared to the prior-year quarter. For the six months ended June 30, 2013, consumables and other net revenue increased by approximately $278,000, or 9%.

2013 年第二季的消耗品和其他淨收入（包括一次性吸頭等消耗品）增加了約 162,000 美元，即與去年同期相比成長了 11%。截至 2013 年 6 月 30 日的六個月，消耗品和其他淨收入增加了約 278,000 美元，即 9%。

We expect the growth of the consumable segment of our business to continue to accelerate as our core laser products gain more traction within the industry as well as with our current existing customer base.

我們預計，隨著我們的核心雷射產品在行業內以及我們當前的現有客戶群中獲得更多關注，我們業務的耗材領域的成長將繼續加速。

Gross profit as a percentage of net revenue was 39% as compared to 55% for the prior-year quarter. For the six months ended June 30, 2013, gross profit as a percentage of net revenue was 39% as compared to 46% for the prior-year period.

毛利潤佔淨收入的百分比為 39%，去年同期為 55%。截至2013年6月30日止六個月，毛利潤佔淨收入的百分比為39%，去年同期為46%。

The quarter-over-quarter and year-over-year decreases were primarily due to higher sales of licensed imaging equipment, which generally carry lower margins than our laser products and increased international laser sales, which generally carry a lower margin than our domestic laser sales.

環比和同比下降主要是由於授權成像設備的銷量增加（其利潤率通常低於我們的激光產品）以及國際激光銷售的增加（其利潤率通常低於我們的國內激光銷售） 。

We have seen improvements to margins of our domestic laser sales as our volumes increase, but we have also seen our overall margin decrease as both our international laser sales and imaging and CAD/CAM sales have increased as a percentage of our total revenue. Therefore, based on our projected revenue mix and expenditures for the remainder of the year, we expect that our gross margin will improve to the low- to mid-40s for the second half of the year.

隨著產量的增加，我們的國內雷射銷售利潤率有所提高，但我們的整體利潤率也有所下降，因為我們的國際雷射銷售和成像以及 CAD/CAM 銷售占我們總收入的百分比有所增加。因此，根據我們預計的今年剩餘時間的收入結構和支出，我們預計下半年的毛利率將改善至 40 多歲左右。

Operating expenses totaled $7.9 million, or 55% of net revenue as compared to $7.2 million, or 59% of net revenue in the 2012 second quarter. For the six months ended June 30, 2013, operating expenses totaled $16.5 million, or 57% of net revenue as compared with $14.6 million, or 60% of net revenue for the six months ended June 30, 2012, an increase of $1.8 million, or 12%.

營運費用總計 790 萬美元，佔淨收入的 55%，而 2012 年第二季營運費用為 720 萬美元，佔淨收入的 59%。截至2013年6月30日的六個月，營運費用總計1,650萬美元，佔淨收入的57%，而截至2012年6月30日的六個月，營業費用為1,460萬美元，佔淨收入的60%，增加了180萬美元，或 12%。

The quarter-over-quarter and year-over-year increases were primarily driven by a substantial investment in our sales and marketing efforts during the 2013 first quarter and increased legal expenses related to enforcing and protecting our intellectual property portfolio.

環比和同比增長主要是由於 2013 年第一季我們對銷售和行銷工作的大量投資，以及與執行和保護我們的智慧財產權組合相關的法律費用的增加。

Effective for sales beginning January 1, 2013, the Patient Protection and Affordable Care Act imposed a 2.3% medical device excise tax on certain product sales to customers located in the United States. As a result, we encourage excise tax expenses of $112,000, or 1% of net revenue for the 2013 second quarter and $219,000, or 1% of net revenue for the six months ended June 30, 2013.

自 2013 年 1 月 1 日起，《病患保護與平價醫療法案》對向美國客戶銷售的某些產品徵收 2.3% 的醫療器材消費稅，自 2013 年 1 月 1 日起開始銷售。因此，我們鼓勵消費稅支出為 112,000 美元，即 2013 年第二季淨收入的 1%，以及 219,000 美元，即截至 2013 年 6 月 30 日的六個月淨收入的 1%。

Our net loss for the 2013 second quarter totaled approximately $2.6 million, or a loss of $0.08 per share compared to a net loss of $1.9 million, or a loss of $0.06 per share for the 2012 second quarter.

2013 年第二季的淨虧損總計約為 260 萬美元，即每股虧損 0.08 美元，而 2012 年第二季的淨虧損為 190 萬美元，即每股虧損 0.06 美元。

After removing interest expense of $117,000, depreciation and amortization expenses of $153,000 and stock-based other equity instruments and other noncash compensation expenses, $442,000, the 2013 second quarter resulted in a non-GAAP net loss of $1.9 million, or a loss of $0.06 per share compared with a non-GAAP net loss of $1.3 million, or a loss of $0.04 per share for the 2012 second quarter.

扣除117,000 美元的利息費用、153,000 美元的折舊和攤銷費用以及442,000 美元的基於股票的其他權益工具和其他非現金補償費用後，2013 年第二季度的非GAAP 淨虧損為190 萬美元，即每股虧損0.06 美元。相較之下，2012 年第二季非 GAAP 淨虧損為 130 萬美元，即每股虧損 0.04 美元。

For the six months ended June 30, 2013, our net loss totaled approximately $5.2 million, or a loss of $0.16 per share as compared to a net loss of $3.5 million or a loss of $0.11 per share for the six months ended June 30, 2012. After removing interest expense at $204,000, depreciation and amortization expenses of $298,000 and stock-based other equity instruments and other noncash compensation expense of $936,000, the six months ended June 30, 2013, resulted in a non-GAAP net loss of $3.8 million or a loss of $0.12 per share compared with a non-GAAP net loss of $2.2 million, or a loss of $0.07 per share for the six months ended June 30, 2012.

截至2013年6月30日的六個月，我們的淨虧損總計約為520萬美元，即每股虧損0.16美元，而截至2012年6月30日的六個月的淨虧損為350萬美元，即每股虧損0.11美元扣除利息費用204,000 美元、折舊和攤銷費用298,000 美元以及基於股票的其他權益工具和其他非現金補償費用936,000 美元後，截至2013 年6 月30 日的六個月，非GAAP淨虧損為380 萬美元或每股虧損 0.12 美元，而非 GAAP 淨虧損為 220 萬美元，即截至 2012 年 6 月 30 日的六個月每股虧損 0.07 美元。

Moving on to our balance sheet, as of June 30, 2013, Biolase had approximately $3.8 million in working capital. Cash and cash equivalents totaled approximately $2.1 million at June 30, 2013, compared to $2.5 million at December 31, 2012.

轉到我們的資產負債表，截至 2013 年 6 月 30 日，Biolase 的營運資金約為 380 萬美元。截至2013年6月30日，現金及現金等價物總額約為210萬美元，而2012年12月31日為250萬美元。

Accounts receivable totaled $11.5 million at June 30, 2013, compared to $11.7 million at December 31, 2012. At June 30, 2013, the Company had two revolving credit facilities totaling $10 million with $1.5 million of available borrowing capacity in excess of the $6 million outstanding.

截至2013年6月30日，應收帳款總額為1,150萬美元，而截至2012年12月31日，應收帳款為1,170萬美元。截至2013年6月30日，本公司擁有兩項總額為1,000萬美元的循環信貸額度，其中150萬美元的可用借款能力超過600萬美元。傑出的。

On July 26, 2013, the Company filed a registration statement on Form S-3 with the SEC to register an indeterminate number of shares of common stock, preferred stock, and warrants with a total offering price not to exceed $30 million. Once the registration statement is declared effective by the SEC, the Company could offer the securities described above for sale from time to time or in one or multiple offerings.

2013年7月26日，公司向SEC提交了Form S-3登記聲明，登記了數量不定的普通股、優先股和認股權證，發行總價不超過3000萬美元。一旦美國證券交易委員會宣布註冊聲明生效，公司就可以不時或透過一次或多次發行出售上述證券。

With that, I will turn the call over to Alex.

這樣，我會將電話轉給亞歷克斯。

Thank you, Fred. This is a significant moment for me, because it's my first earnings call as a member of Biolase management. I'm passionate about this Company and its mission but, until now, I've only been able to express my enthusiasm as a commentator, as an analyst, as a patient, and, since 2010, as a Director. Now I've been inside the Company for two months, and I've got a lot to say about how to execute on the operational side of Federico's vision for this Company.

謝謝你，弗雷德。這對我來說是一個重要的時刻，因為這是我作為 Biolase 管理層成員的第一次財報電話會議。我對這家公司及其使命充滿熱情，但到目前為止，我只能以評論員、分析師、患者以及自 2010 年以來的董事身份表達我的熱情。現在我已經在公司工作兩個月了，關於如何在營運方面執行 Federico 對公司的願景，我有很多話要說。

We have the most important assets for a Company to have -- we have great technology, great people, great products, and a portfolio of approximately 340 patents and patent applications to back them up. I've carefully reviewed the operations at Biolase in the last couple of months, and we surely have opportunities to improve our operational efficiencies such as in planning, product development, execution on new ideas, and, particularly, in sales and marketing.

我們擁有公司最重要的資產——我們擁有卓越的技術、優秀的人才、卓越的產品，以及大約 340 項專利和專利申請的組合來支持它們。在過去的幾個月裡，我仔細審查了 Biolase 的營運情況，我們確實有機會提高營運效率，例如規劃、產品開發、新想法的執行，特別是銷售和行銷方面。

We plan to make Biolase live up to its potential. Our products appeal to dentists because they offer them an extremely attractive return on investment and clinical data support their use in nearly every dental procedure. And after those advantages are understood, at the end of the day, our products transform the patient experience, and we make clinicians love what they do.

我們計劃讓 Biolase 發揮其潛力。我們的產品對牙醫很有吸引力，因為它們為他們提供了極具吸引力的投資回報，並且臨床數據支持它們在幾乎所有牙科手術中的使用。在了解這些優勢後，最終，我們的產品將改變患者的體驗，讓臨床醫生熱愛他們的工作。

Our challenge and our opportunity is to communicate that to mainstream clinicians, to move beyond the 3% to 4% of the market referred to as the "innovators" and into the next 7% to 10% of the market referred to as the "early adopters."

我們的挑戰和機會是向主流臨床醫生傳達這一點，超越被稱為「創新者」的 3% 到 4% 的市場份額，進入被稱為「早期」的 7% 到 10% 的市場份額。收養者。”

There are many medical products that make a real difference in patients' lives. WaterLase dentistry is one of them. It's a transformative experience for a patient. I know that firsthand. My first interest in Biolase came from my experience as a patient.

有許多醫療產品可以真正改變患者的生活。 WaterLase 牙科就是其中之一。對患者來說，這是一次變革性的體驗。我直接知道這一點。我對 Biolase 的最初興趣來自於我作為患者的經驗。

Then there are also many products that have a stylistic or status power that leads customers to cherish them simply for themselves. In that way the WaterLase iPlus is kind of like a sports car or an Apple music device or a designer handbag.

還有許多產品具有風格或地位的力量，導致顧客僅僅為了自己而珍惜它們。從這個角度來說，WaterLase iPlus 有點像跑車、蘋果音樂設備或名牌手提包。

But how many products are there that can do both those things? I cannot think of very many medical products that are both transformative for patient care and make clinicians love what they do. And of those few that do exist, I can think of none that are as under-appreciated and under-recognized as the WaterLase and therein lies our opportunity.

但有多少產品可以同時完成這兩項任務呢？我想不出有多少醫療產品既能改變患者護理，又能讓臨床醫生熱愛他們的工作。在少數確實存在的產品中，我想不出像 WaterLase 這樣不受重視和認可的產品，而這正是我們的機會。

When you look at the results for this second quarter, you don't see the dentists who tell us that they have delayed their retirement by 10 years because they're enjoying their job so much more after buying an iPlus. You don't see mothers that are calling our sales reps and thanking them for providing a technology that allowed their pain-sensitive child to obtain dental care and resolve problems that were otherwise taking a toll on their lives. You don't see the power to transform the patient experience and make clinicians love what they do. Even Biolase employees are often not aware of how powerful and important the WaterLase iPlus is to those who buy it and those that it's used on.

當您查看第二季度的結果時，您不會看到牙醫告訴我們，他們將退休時間推遲了 10 年，因為他們在購買 iPlus 後更加享受自己的工作。您不會看到母親們打電話給我們的銷售代表，感謝他們提供了一種技術，使她們對疼痛敏感的孩子能夠獲得牙科護理並解決那些原本會影響她們生活的問題。您看不到改變患者體驗和讓臨床醫生熱愛他們所做工作的力量。即使是 Biolase 員工也常常不知道 WaterLase iPlus 對購買者和使用者來說有多強大和重要。

It's no wonder we haven't been communicating the why of Biolase. Without direct testimonials, it's almost too good to believe. Dentists who cling to notions about what lasers were capable of five years ago and don't take time to learn about what the iPlus can do for them today, or investors who have never spoken to customers of ours who have completed their laser training miss out on what our products really do for our customers.

難怪我們沒有傳達 Biolase 的原因。如果沒有直接的見證，這幾乎令人難以置信。那些對五年前雷射的功能抱有觀念的牙醫，沒有花時間了解 iPlus 今天能為他們做什麼，或者從未與我們完成雷射培訓的客戶交談過的投資者會錯過機會關於我們的產品真正為客戶做什麼。

As an organization, we are going to be getting better at expressing the why in our business model. It's more than just the attractive ROI that we offer to dentists who purchase iPluses. It's more than the clinical data that supports the use of WaterLase technology at nearly every dental procedure. We don't exist because of the specific features of our laser, although that is what has helped us sell to the innovators segment of dentists who have largely been our customers, to date.

作為一個組織，我們將更好地表達我們業務模式的原因。我們為購買 iPlus 的牙醫提供的不僅僅是有吸引力的投資回報率。支持在幾乎所有牙科手術中使用 WaterLase 技術的不僅僅是臨床數據。我們的存在並不是因為我們的雷射的特定功能，儘管這幫助我們向牙醫創新者群體銷售產品，到目前為止，他們基本上是我們的客戶。

We exist because we transform the patient experience, and we make clinicians love what they do. That's why we are going to be selling lasers to the majority of typical, non-technophile dentists in the coming years. It's not because of our specific wattage or our cutting speed. It's not even because of the physical beauty of the product. It's because we give members of a profession with one of the highest suicide and depression rates because they are used to inflicting pain on patients, a product that makes them love what they do again.

我們的存在是因為我們改變了病人的體驗，我們讓臨床醫生熱愛他們的工作。這就是為什麼我們將在未來幾年向大多數典型的非技術愛好者牙醫銷售雷射。這不是因為我們的特定瓦數或切割速度。這甚至不是因為產品的外觀美。這是因為我們為自殺率和憂鬱率最高的職業之一提供了產品，因為他們習慣於給病人帶來痛苦，而這種產品讓他們再次熱愛自己所做的事情。

As a priority, we plan to take steps that we need to create a cash flow-positive company that grows consistently. This goes hand-in-hand with our challenge to convert the business we have today with a two-year-old transformative lead product into a profitable, faster-growing, and more valuable enterprise. We plan to unify our marketing message in order to transition past the innovators who have largely bought the iPlus in its first two years in the market.

作為首要任務，我們計劃採取必要措施創建一家持續成長、現金流為正的公司。這與我們面臨的挑戰是相輔相成的，將我們今天擁有的、擁有兩年歷史的變革性主導產品的業務轉變為一家盈利、增長更快、更有價值的企業。我們計劃統一我們的行銷訊息，以超越那些在 iPlus 上市的頭兩年里大部分購買了 iPlus 的創新者。

The WaterLase iPlus is the core of our business. It is the highest-margin, most proprietary product that we sell. While we benefit by selling diode lasers and imaging products for strategic reasons that we speak about elsewhere, the financial health of Biolase is directly linked to our success with selling WaterLase iPlus units.

WaterLase iPlus 是我們業務的核心。它是我們銷售的利潤率最高、最具專有性的產品。雖然我們出於我們在其他地方談到的策略性原因透過銷售二極體雷射和成像產品而受益，但 Biolase 的財務狀況與我們銷售 WaterLase iPlus 裝置的成功直接相關。

The fact that WaterLase revenues for the first half of 2013 have not grown is a main reason that the Company is not already cash flow-positive. As such, the main part of our strategy for the rest of 2013 is geared toward improving our WaterLase iPlus sales.

WaterLase 2013 年上半年的營收沒有成長，是該公司尚未實現正現金流的主要原因。因此，我們 2013 年剩餘時間策略的主要部分是提高 WaterLase iPlus 的銷售量。

We have several new approaches to reach beyond the innovators and appeal to the so-called early adopters and even the next segment beyond them, the "early majority" segments of dentistry. For one, we have hundreds of new customers who just purchased an Epic 10 watt diode laser from us in the second quarter. That's hundreds of dentists who have taken the first step towards practicing laser dentistry. But without the advantages that WaterLase brings, especially the ability to cut tooth enamel and spare their patients from dental anesthesia and unnecessary tooth trauma, they are candidates for us to upsell.

我們有幾種新方法來超越創新者並吸引所謂的早期採用者，甚至是他們之外的下一個細分市場，即牙科的「早期大多數」細分市場。首先，我們有數百名新客戶在第二季度剛從我們這裡購買了 Epic 10 瓦二極體雷射。數百名牙醫已經邁出了實踐雷射牙科的第一步。但如果沒有 WaterLase 帶來的優勢，尤其是切割琺瑯質的能力，以及使患者免受牙科麻醉和不必要的牙齒創傷的能力，它們就成為我們追加銷售的候選者。

For another, we've added high-end imaging and CAD/CAM intra-oral scanners to our line of licensed products in late 2012 to give us another entry point to explain the benefits of becoming a laser dentist. Our goal is to become a purveyor of clinical tools that average clinicians find essential to deliver superior patient care. Once we appeal not just to the opinion leaders but to typical clinicians as a basic necessity, then we expect Biolase to realize its full potential as a high-growth and cash flow-positive company in the years to come.

另一方面，我們在 2012 年底在我們的授權產品系列中添加了高端成像和 CAD/CAM 口腔內掃描儀，為我們提供了另一個切入點來解釋成為雷射牙醫的好處。我們的目標是成為臨床工具的供應商，一般臨床醫生認為這些工具對於提供優質的病患照護至關重要。一旦我們不僅吸引意見領袖，而且吸引典型的臨床醫生作為基本必需品，那麼我們預計 Biolase 在未來幾年將充分發揮其作為高成長和現金流正向公司的潛力。

In July, we entered into a strategic agreement with Valam Corporation to develop markets and sell office-based laser systems to otolaryngologists, or ENT doctors. This agreement provides Biolase with an ENT laser patent portfolio plus the know-how and marketing support of Dr. Yosef Krespi, one of the world's authorities on the use of lasers for surgical treatment of sinusitis, sleep apnea, and other ENT laser procedures. Biolase's Epic 10 soft-tissue laser has already been cleared by the FDA for use in ENT surgical procedures.

7 月，我們與 Valam Corporation 達成戰略協議，開發市場並向耳鼻喉科醫生或耳鼻喉科醫生銷售基於辦公室的雷射系統。該協議為 Biolase 提供了耳鼻喉雷射專利組合以及 Yosef Krespi 博士的專業知識和行銷支持，後者是使用雷射手術治療鼻竇炎、睡眠呼吸中止症和其他耳鼻喉雷射手術的世界權威之一。 Biolase 的 Epic 10 軟組織雷射已獲得 FDA 批准用於耳鼻喉科手術。

Our partnership with Valam includes an exclusive worldwide license to all of Valam's ENT-related patents and in pending patents, which, when combined with Biolase's existing ENT laser-related patents creates a formidable patent space in this niche.

我們與Valam 的合作夥伴關係包括Valam 所有耳鼻喉科相關專利和正在申請的專利的全球獨家許可，與Biolase 現有的耳鼻喉科雷射相關專利相結合，在這一利基市場創造了一個強大的專利空間。

We look forward to being able to offer an elegant, simple-to-use precision laser-based biologic cutting tool to the 9,000 practicing otolaryngologists in the United States. Biolase plans to hire a small specialized ENT salesforce in advance of our ENT launch, which could occur as soon as the fourth quarter of this year.

我們期待能夠為美國 9,000 名執業耳鼻喉科醫生提供一種優雅、易於使用的精密雷射生物切割工具。 Biolase 計劃在我們的耳鼻喉科產品推出之前聘請一支小型專業耳鼻喉科銷售隊伍，最早可能在今年第四季度推出。

Both the strategic agreement with Valam and the affiliation agreement previously announced with Sun Dental Labs contain potentially diluted warrants but it should be noted that these warrants are performance-based. Hence, by accepting performance-based warrants, both Valam and Sun Dental Labs demonstrate their belief as Biolase stakeholders.

與 Valam 的策略協議以及先前與 Sun Dental Labs 宣布的附屬協議都包含可能被稀釋的認股權證，但應該注意的是，這些認股權證是基於業績的。因此，透過接受基於績效的認股權證，Valam 和 Sun Dental Labs 都表明了他們作為 Biolase 利害關係人的信念。

Our IP portfolio is a valuable asset, and our defense and enforcement of it has been costly. However, several companies now pay license fees to us in order to use our IP for their own laser products. We are generating only modest revenue from these licenses, but these agreements have established precedents for others that may be required to license our technology in the future. We are committed to enforcing, protecting, and defending this valuable asset.

我們的智慧財產權組合是一項寶貴的資產，我們對其的保護和執行成本高昂。然而，現在有幾家公司向我們支付許可費，以便將我們的智慧財產權用於他們自己的雷射產品。我們僅從這些許可中獲得了微薄的收入，但這些協議為未來可能需要許可我們的技術的其他人樹立了先例。我們致力於執行、保護和捍衛這項寶貴資產。

As an example, in March 2013, we entered into a royalty agreement with Lambda SpA which resulted in a payment from Lambda for past royalties and established a royalty rate for Lambda on future sales. The royalties from Lambda relate to intellectual property that Biolase owns in connection with Erbium YAG lasers and does not involve our more advanced YSGG WaterLase technology nor our delivery systems, which include our proprietary handpieces and consumables.

例如，2013 年 3 月，我們與 Lambda SpA 簽訂了特許權使用費協議，該協議導致 Lambda 支付過去的特許權使用費，並確定了 Lambda 未來銷售的特許權使用費率。 Lambda 的特許權使用費涉及 Biolase 擁有的與鉺 YAG 雷射相關的智慧財產權，不涉及我們更先進的 YSGG WaterLase 技術，也不涉及我們的傳輸系統，其中包括我們專有的手機和耗材。

In May, the USPTO issues an office action that supports our assertion that the allegations of patent infringement levied by Utah-based CAO in the lawsuit filed against Biolase on April 24, 2012, are without merit. In a re-examination proceeding the USPTO rejected all of the claims of the CAO Group patent that were subject to re-examination. This is the second office action in which the USPTO has rejected those claims that violate initiatives to re-examination of those claims in response to CAO's lawsuit against us, so we're very pleased with that result.

5 月，美國專利商標局 (USPTO) 發出審查意見通知書，支持我們的主張，即猶他州 CAO 在 2012 年 4 月 24 日針對 Biolase 提起的訴訟中提出的專利侵權指控毫無根據。在復審程序中，美國專利商標局駁回了 CAO 集團所有需要複審的專利權利要求。這是美國專利商標局針對 CAO 針對我們的訴訟第二次駁回那些違反重新審查這些權利要求的權利要求，因此我們對此結果感到非常滿意。

Also during the second quarter, our products received several new FDA clearances including, in May, clearance for the WaterLase iPlus for use as a surgical instrument in soft tissue procedures in orthopedic and podiatric surgery -- that's for cartilage. And, in April, clearance for the NewTom Biolase VG3 digital panoramic cephalometric and tomographic extra-oral x-ray system, which Biolase markets and distributes in the US. Biolase is the exclusive distributor of NewTom digital imaging products for the dental market in the US and Canada.

同樣在第二季度，我們的產品獲得了 FDA 的多項新許可，包括 5 月批准 WaterLase iPlus 在骨科和足部手術的軟組織手術中用作手術器械（針對軟骨）。 4 月，Biolase 在美國銷售和分銷的 NewTom Biolase VG3 數位全景頭影測量和斷層口腔外 X 光系統獲得許可。 Biolase 是 NewTom 數位影像產品在美國和加拿大牙科市場的獨家經銷商。

We were also granted several new patents during the quarter including a patent for delivering sterile water, which expands Biolase's fluid conditioning technology; a patent for an additional way of treating presbyopia, cataracts, and glaucoma and (inaudible) laser, and a patent for -- another design for a non-contact handpiece for tissue cutting, which further protects our industry-leading WaterLase technology.

本季我們也獲得了多項新專利，包括一項用於輸送無菌水的專利，該專利擴展了 Biolase 的流體調節技術；一項治療老花眼、白內障和青光眼和（聽不清楚）雷射的另一種方法的專利，以及一項用於組織切割的非接觸式手機的另一種設計的專利，這進一步保護了我們行業領先的WaterLase 技術。

WaterLase was also featured in 36 new articles published in English during the second quarter. I find that what clinicians have recently been writing about our technology is telling of how much value we are creating. I'll just give you three quick examples -- for example, one of the most serious problems emerging in dentistry is periodontal disease around dental implants. The growing popularity of dental implants to replace (technical difficulty) and the general poor oral hygiene of Americans has led clinicians to predict that periodontal disease around implants is going to become one of the top issues facing patients within five years.

第二季度，WaterLase 也出現在 36 篇英文新文章中。我發現臨床醫生最近撰寫的有關我們技術的文章講述了我們正在創造多少價值。我只想給您三個簡單的例子 - 例如，牙科中出現的最嚴重的問題之一是牙種植體周圍的牙周病。植牙的日益普及（技術難度）以及美國人普遍口腔衛生狀況不佳，使得臨床醫生預測植牙周圍的牙周疾病將成為五年內患者面臨的首要問題之一。

But there is no conventional way to treat the problem because the bone nor the implant surface can be damaged during treatment with surgical instruments, air abrasion or diode or [ND YAG] lasers, and each of these treatment options comes with drawbacks. You cannot treat a titanium implant the same way you treat a tooth or root surface because implants have rough surfaces to facilitate their attachment to the bone, and this makes them very difficult to clean.

但沒有傳統的方法來治療這個問題，因為在使用手術器械、空氣磨蝕或二極管或 [ND YAG] 雷射進行治療期間，骨骼或植體表面都可能受到損壞，並且每種治療方案都有缺點。您不能像對待牙齒或牙根表面一樣對待鈦植體，因為植體具有粗糙的表面，有利於它們附著在骨頭上，這使得它們很難清潔。

But in the article, "Laser Decontamination of Dental Implants," published in the Journal of Implants and Advanced Clinical Dentistry in April of this year, author [Jisam Burke] concluded that the WaterLase is efficient for the removal of bacterial biofilm without damaging the implant surface specifically after [lasing] infected implant surfaces with the biolaser radial firing tip and WaterLase energy, the implants were restored to their original condition without damage to the titanium surface. This has the potential to change the field of oral implantology, and it creates another new reason for periodontists to purchase iPluses from us.

但在今年 4 月發表在《植體和高級臨床牙科雜誌》上的文章「植牙雷射淨化」中，作者 [Jisam Burke] 得出結論，WaterLase 可以有效去除細菌生物膜而不損壞植體特別是在使用生物雷射徑向發射端和WaterLase 能量對受感染的植體表面進行雷射照射後，植體恢復到原始狀態，而不會損壞鈦表面。這有可能改變口腔植牙領域，並為牙周病醫生從我們這裡購買 iPlus 創造了另一個新理由。

The second article I'll mention is called "Laser Application of Prevention of Demineralization in Orthodontic Laser Treatment," which just came out in the Journal of Lasers and Medical Sciences in the summer of 2013 -- so very recent by author Dr. [Humanser Hajiji], who proved that laser irradiation should be used in conjunction with orthodontic braces. Most children have poor dental hygiene and getting braces makes it even more difficult for them to clean their teeth properly so plaque collects around the braces brackets and the wires along the tooth surfaces, and the acidic nature of the plaque causes two surfaces to become demineralized and weaker, and, as a result, these areas change color. Often, you may have noticed the child who had braces removed, they are left with these white spots and discoloration on their teeth where the plaque has accumulated. Dr. Hajiji's study demonstrates that pretreating with the WaterLase and fluoride prevented this demineralization -- so another use of using these WaterLase in pediatric dentistry.

我要提到的第二篇文章名為“激光在正畸激光治療中預防脫礦質的應用”，該文章剛剛於2013 年夏天發表在《激光與醫學科學雜誌》上，作者是最近的作者[ Dr. Humanser. Hajiji]，他證明雷射照射應與矯正牙套結合使用。大多數兒童的牙齒衛生狀況不佳，佩戴牙套使他們更難正確清潔牙齒，因此牙菌斑會聚集在牙套托槽和牙齒表面的金屬絲周圍，牙菌斑的酸性會導致兩個表面脫礦質，較弱，因此這些區域會改變顏色。通常，您可能已經注意到，摘除牙套的孩子，他們的牙齒上留下了這些白斑和變色，這是牙菌斑積聚的地方。 Hajiji 博士的研究表明，使用 WaterLase 和氟化物進行預處理可以防止這種脫礦質，因此 WaterLase 的另一種用途是在兒童牙科中使用。

And then the third and final article is called "Nano-Leakage in Primary Teeth Prepared by Laser Irradiation, or a Bur," which compares us to a high-speed drill published in the July issue of Laser and Medical Science. In this article, author [Faith Osnorhan] noted that the best method to prevent nano-leakage was by using the WaterLase. When a filling is placed the dentist attempts to create the tightest possible seal between the tooth and the filling -- that's normal. Otherwise, bacteria can enter and re-infect the tooth and re-start the decay. The tighter the seal and the smaller the open space, the longer the filling will last -- that's true of any filling. This study compared using a drill and using our WaterLase, and Dr. Asnorhan found that the best and tightest margins were created by using the WaterLase along with an acid etch rather than a drill and acid etch, which is what conventional dentists still do at this point, for the most part.

第三篇也是最後一篇文章名為“雷射照射或鑽頭製備的乳牙中的奈米滲漏”，它將我們與發表在《雷射與醫學科學》七月號上的高速鑽頭進行比較。在本文中，作者 [Faith Osnorhan] 指出，防止奈米洩漏的最佳方法是使用 WaterLase。當放置填充物時，牙醫會嘗試在牙齒和填充物之間形成盡可能緊密的密封 - 這是正常的。否則，細菌會進入並重新感染牙齒並重新開始腐爛。密封越緊，開放空間越小，填充物的保存時間就越長——任何填充物都是如此。這項研究對使用鑽頭和使用我們的WaterLase 進行了比較，Asnorhan 博士發現，透過使用WaterLase 和酸蝕劑而不是鑽頭和酸蝕劑來創造最佳和最窄的邊緣，這是傳統牙醫仍在做的事情點，在大多數情況下。

Articles about the benefit of the WaterLase are being published in clinical journals every month. These articles provide growing evidence that our technology is clinically superior to conventional dental methods and that acceptance is growing.

每個月都會在臨床期刊上發表有關 WaterLase 益處的文章。這些文章提供了越來越多的證據，表明我們的技術在臨床上優於傳統的牙科方法，接受度正在不斷提高。

Regarding our financial guidance for the year ending December 31, 2013, the Company is expecting net revenues to be in the low end of its guidance range for the year of approximately $68 million to $72 million. The low end of $68 million still represents an 18% increase over 2012 net revenue. The Company no longer expects to generate cash from operations overall for the year ending December 31, 2013, but we do expect to do so in the fourth quarter ending December 31, 2013.

關於我們截至 2013 年 12 月 31 日的年度財務指導，公司預計該年度淨收入將處於其指導範圍的下限，約為 6,800 萬美元至 7,200 萬美元。 6,800 萬美元的低端仍比 2012 年淨收入成長 18%。本公司預計不再從截至2013年12月31日的年度整體營運中產生現金，但我們預計將在截至2013年12月31日的第四季實現這一目標。

This concludes our prepared remarks. During the Q&A session of the call, each time you're called upon, we ask that you please limit yourself to one question and one follow-up question. If you have additional questions, please go back into the queue. This policy is to allow for a larger number of you to ask individual questions.

我們準備好的演講到此結束。在電話問答環節中，每次您接到電話時，我們都要求您將自己限制在一個問題和一個後續問題上。如果您還有其他問題，請返回佇列。這項政策是為了讓更多的人能夠提出個人問題。

Thank you. We will now take your questions.

謝謝。我們現在將回答您的問題。

(Operator Instructions) Suraj Kalia, Northland Securities.

（操作員指令）Suraj Kalia，北國證券。

Fred, maybe I missed this. Did you mention the OUS contribution in the quarter?

弗雷德，也許我錯過了這個。您是否提到本季度 OUS 的貢獻？

No, we didn't highlight that in the call.

不，我們沒有在電話中強調這一點。

And I know in Q1, if I remember correctly, it was 38%. I'm just trying to gauge whether -- could you give us some color whether it was under a sequential or on a year-over-year basis, at least directionally, how it looks like?

我知道，如果沒記錯的話，第一季的比例是 38%。我只是想評估一下，您能否給我們一些顏色，無論是連續的還是逐年的，至少是方向性的，它看起來是什麼樣子？

Yes, we haven't -- that wasn't in the release. That will obviously be in the Q when we file it on Friday, but you can expect it to be consistent.

是的，我們沒有——那不在發布中。當我們週五提交時，這顯然會出現在問題中，但你可以期望它是一致的。

Fair enough -- and in terms of CAD/CAM imaging on the quarterly numbers, Federico, can you or Alex maybe you all can give us some idea about, you know, the disruption from 3Shape and at least based on your internal assessments, what was the disruption in terms of -- when we look at a quantifiable number?

公平地說，就季度數據的 CAD/CAM 成像而言，Federico，您或 Alex 能否給我們一些關於 3Shape 帶來的破壞的想法，至少根據您的內部評估，您知道什麼？當我們看到一個可量化的數字時，顛覆是什麼？

Suraj, it's quite simple. 3Shape came out with a new product and, clearly, our clients want the new and latest product, and so clients that we have ready to purchase, they decided to wait for the new one and, clearly, the right choice has an upgraded software. And so they were not ready in delivering such new products in the quantities that we needed on [issued] units, and so we will see -- we expect that 3Shape will deliver in quantities this new generational product in Q3.

蘇拉吉，這很簡單。 3Shape 推出了一款新產品，顯然，我們的客戶想要新的、最新的產品，因此我們準備購買的客戶決定等待新產品，顯然，正確的選擇是升級軟體。因此，他們還沒有準備好按照我們[已發行]單位所需的數量交付此類新產品，因此我們預計 3Shape 將在第三季度批量交付這款新一代產品。

Okay, and just to maintain in terms of the number of questions, Alex, one question, and I'll let others jump in. If I heard you correctly, you said WaterLase iPlus sales haven't grown, at least in the first half of the year. As you all do an internal assessment, what are the things that will be implemented in the second half either in terms of a marketing message, in terms of incentives, in terms of bundling, whatever it may be, what are the core things where the gaps have been identified, and you say you know what? We've got to plug these holes and as a result we will get these many users on board?

好的，為了保持問題的數量，Alex，一個問題，我會讓其他人加入。如果我沒聽錯的話，你說 WaterLase iPlus 的銷量沒有增長，至少在上半年是這樣今年的。大家內部評估一下，下半年要實施哪些東西，行銷訊息方面，激勵方面，捆綁方面，無論是什麼，核心是什麼？差距已經確定了，你說你知道嗎？我們必須堵住這些漏洞，這樣我們才能吸引這麼多用戶？

Suraj, that's an excellent question. We have at least eight initiatives that we think directly hit to the heart of the matter of the WaterLase iPlus sales progress and breaking out of the early innovators segment of the market and into the early adopters.

蘇拉吉，這是一個很好的問題。我們認為至少有八項舉措直接觸及 WaterLase iPlus 銷售進展以及突破市場早期創新者細分市場並進入早期採用者市場的核心問題。

However, most of them we're not ready to reveal for just basic competitive intelligence reasons. There are two of them that we mentioned on this call, and that's to capitalize on those customers that have already purchased a diode laser, which, as you know, is a much less expensive item that we sell and does not have nearly the capabilities of the iPlus, but it's a step in the direction of becoming a laser dentist. And we had several hundred of them in the US alone this quarter -- new dentists purchasing our Epic 10 diode laser that are prime candidates to be upsold to the much more expensive WaterLase iPlus, a much more capable device. So that's one of them.

然而，出於基本的競爭情報原因，我們還沒有準備好透露其中的大多數資訊。我們在這次電話會議中提到了其中兩個，那就是利用那些已經購買了二極管雷射的客戶，正如您所知，我們銷售的二極管雷射是一種便宜得多的產品，並且幾乎不具備iPlus，但它是朝著成為雷射牙醫的方向邁出的一步。本季僅在美國就有數百台這樣的設備——新牙醫購買了我們的 Epic 10 二極管雷射器，這些雷射是升級到更昂貴的 WaterLase iPlus（更強大的設備）的主要候選人。這就是其中之一。

The other is the foot-in-the-door approach, where many dentists who are more in the mainstream category who are now just taking the -- starting to take an interest in spending a little money upgrading their practices -- not the early adopters but the mainstream dentists -- when they start to do that, generally, the first thing they think of is imaging. And you can tell that when you go to the dental tradeshows -- they tend to go to the imaging booths before they start looking at something as advanced as a laser.

另一種是腳踏實地的方法，許多屬於主流類別的牙醫現在剛開始有興趣花一點錢升級他們的診所，而不是早期採用者但主流牙醫——當他們開始這樣做時，通常他們首先想到的是成像。你可以看出，當你去牙科貿易展時，他們往往會先去成像展位，然後再開始看像雷射這樣先進的東西。

And so now that we distribute the best-in-class imaging products, we can be part of that conversation, and it leads naturally to us starting to talk to them about the benefits of becoming a laser dentist out of the iPlus.

因此，現在我們分銷了一流的成像產品，我們就可以成為對話的一部分，這自然會導致我們開始與他們談論透過 iPlus 成為雷射牙醫的好處。

So those are -- the way you should think about that is that those are two of our eight internal initiatives, and the other six you're going to hear more about later, but we're not ready to disclose for competitive reasons just to give us a chance of impact of success.

因此，您應該考慮的方式是，這些是我們八項內部舉措中的兩項，另外六項您稍後會聽到更多，但出於競爭原因，我們不准備透露這些信息。給我們一個影響成功的機會。

So, Suraj, we appreciate you sticking to the one question and one follow-up, and we'll go on to the next question now.

所以，Suraj，我們感謝您堅持一個問題和一個後續問題，我們現在將繼續討論下一個問題。

Actually, I would like to jump in, Suraj. One very important thing to understand is that we have pushed, by choice, the selling of diodes that we didn't have last year, with the purpose of increasing the amount of laser dentists that are starting to enter the field of laser dentistry.

事實上，我很想加入進來，Suraj。需要理解的一件非常重要的事情是，我們有選擇地推動了去年沒有的二極管的銷售，目的是增加開始進入雷射牙科領域的雷射牙醫的數量。

We have sold hundreds of diodes in the first two quarters of this year and, clearly, that has caused a sort of distraction for our sales reps in selling such diodes compared to the WaterLase. And that once strategically was the term to be a good marketing strategy to build the platform, to later have a larger group of interested backers in acquiring the WaterLase on the short-term has created, clearly, a lower-level sales of WaterLase.

今年前兩個季度我們已經售出了數百個二極管，顯然，與 WaterLase 相比，這在銷售此類二極管時對我們的銷售代表造成了一定程度的干擾。從策略上講，這個術語曾經是建立平台的良好行銷策略，後來有更多感興趣的支持者在短期內收購 WaterLase，顯然導致了 WaterLase 的較低銷售水平。

So it is important to understand that it's not that WaterLase sales, they have slowed down simply because the market reason, no. It is that we changed our strategy, our marketing strategy. And so our sales reps that concentrated in selling hundreds of diode lasers [to of interested] did not have any laser, and that is clearly an effort on their part that distracts them from selling and closing sales of WaterLase.

因此，重要的是要明白，這並不是 WaterLase 銷售放緩，而是因為市場原因，不是。而是我們改變了我們的策略，我們的行銷策略。因此，我們的銷售代表（專注於向有興趣的人）銷售數百台二極管雷射器，卻沒有任何雷射器，這顯然是他們的努力，分散了他們對 WaterLase 銷售和完成銷售的注意力。

But, longer term, it is a very good strategy for the Company because now we have several hundreds of new dentists that did not have any laser -- that did not have any understanding of laser dentistry as potential customers for WaterLase later on. Something is what Alex was telling, the foot-in-the-door with imaging and CAD/CAM systems. When we sell the systems, we acquire a new customer, and then later we can sell to the customer the WaterLase. So that's a strategy -- a marketing strategy that is new to Biolase because we're penetrating a different level of the marketplace with these early adopters. So -- it is by design. It has nothing to do with the markets slowing down in its adoption of the WaterLase.

但是，從長遠來看，這對公司來說是一個非常好的策略，因為現在我們有數百名沒有任何雷射的新牙醫——他們對雷射牙科沒有任何了解，成為 WaterLase 的潛在客戶。 Alex 所講述的內容是，踏入影像和 CAD/CAM 系統的大門。當我們出售系統時，我們獲得了一個新客戶，然後我們可以向該客戶出售 WaterLase。所以這是一個策略——對於 Biolase 來說是一個新的行銷策略，因為我們正在與這些早期採用者一起滲透到不同層次的市場。所以——這是設計使然。這與市場採用 WaterLase 的速度放緩無關。

Joe Munda, Sidoti & Company.

喬·蒙達，西多蒂公司。

Fred, I was wondering -- I know you mentioned to Suraj some of the revenues outside US will be released in the Q, but I was wondering if you could give us some sense of what the revenue breakout percentage-wise was on the laser system sales? Was it 80-20 WaterLase diode -- some sense there? As well as, Federico, I wanted to touch on the expectations that you guys didn't meet in the quarter, specifically Canada and Germany, and why you're so confident that you'll be able to overcome those challenges but, at the same time, lowering -- expecting to be at the lower end of guidance for the year as well as not being able to generate cash for the full year? I know that's a lot, but --

Fred，我想知道 - 我知道您向 Suraj 提到美國以外的一些收入將在 Q 中發布，但我想知道您是否能讓我們了解雷射系統的收入突破百分比銷售量？是 80-20 WaterLase 二極體嗎——有道理嗎？另外，費德里科，我想談談你們在本季度沒有達到的期望，特別是加拿大和德國，以及為什麼你們如此有信心能夠克服這些挑戰，但是，在同時，降低——預計今年的指導水平較低，且全年無法產生現金？我知道這很多，但是——

Well, let me start with Canada then. Canada has always been a very good contributor to sales, but this past quarter was affected by a very severe, large flood, actually, affected a large part of the country. And that occurred in June, and in the area of Canada, actually, in which we are stronger. And so that affected, clearly, sales. But, again, they are not lost sales but have affected quarter due to sales.

好吧，讓我從加拿大開始。加拿大一直是銷售的一個很好的貢獻者，但上個季度受到了非常嚴重的大洪水的影響，實際上，影響了該國的大部分地區。這發生在六月，實際上是在加拿大地區，我們在這方面實力更強。這顯然影響了銷售。但同樣，他們並沒有失去銷售，反而因銷售而影響了季度。

Also what has affected Q2 sales in Canada is the fact that we did not obtain yet the FDA clearance for our diode. There is a long list of clients in Canada that do want to acquire the Epic 10. So these two factors that affected Canada.

另外，影響加拿大第二季銷售的因素是我們的二極體尚未獲得 FDA 許可。加拿大有很多客戶確實希望購買 Epic 10。所以這兩個因素影響了加拿大。

Regarding Germany, we had some issues regarding the distributor, he had exclusivity in Germany, and we are changing that to a non-exclusivity, so we are actually making changes in that market to optimize his performance and to add a large and strong distributor in Germany that is a very important market. Overall, very laser-friendly. So for the rest, I will leave it up to Alex to answer.

關於德國，我們在經銷商方面遇到了一些問題，他在德國擁有排他性，我們正在將其更改為非排他性，因此我們實際上正在該市場進行更改以優化他的績效並在德國增加一個大型且強大的經銷商德國是一個非常重要的市場。總體而言，非常適合雷射。所以剩下的事情，我就交給 Alex 回答吧。

We're indicating the low end of our guidance for the year based on how the first half of the year has gone. There is no other underlying change in the market or change in strategy, which I think is part of what your question was getting at, Joe. I mean, we're just indicating the lower end of the 68 to 72 because that's where it looks like where we're tracking toward. Was there some other point that you were making to that?

我們根據今年上半年的情況表明了今年指導的低端。市場或策略沒有其他根本變化，我認為這是你問題的一部分，喬。我的意思是，我們只是指出 68 到 72 的下端，因為那看起來就是我們要追蹤的位置。您對此還有其他觀點嗎？

No, I mean, I was just saying that basically in Federico's opening comments, yes, you had these kind of small roadblocks in the quarter but your expectation is that you'll be to overcome, then, in the second half. And that's why I was wondering why you're still -- if you're expecting to overcome those hurdles, why not be more in the mid-range of guidance as opposed to the lower end?

不，我的意思是，我只是說，基本上在費德里科的開場白中，是的，你在本季度遇到了這些小障礙，但你的期望是你將在下半年克服。這就是為什麼我想知道為什麼你仍然 - 如果你希望克服這些障礙，為什麼不更多地處於指導的中間範圍而不是下端？

Well, you can take it as a precaution. The fact is that we like to be cautious at this point because, also, we have seen how a quarter can be affected by several factors. I mean, we got affected by an act of God in Canada, for example. It cost us [$200,000]in revenues, and we got affected by a vendor in Europe that launched a new product -- an upgraded, actually, product line. So we couldn't get that product on time.

好吧，你可以把它當作預防措施。事實上，我們在這一點上要保持謹慎，因為我們也看到了一個季度會受到多種因素的影響。我的意思是，例如，我們在加拿大受到了天災的影響。它使我們損失了 [200,000 美元] 的收入，而且我們還受到了一家歐洲供應商的影響，該供應商推出了新產品——實際上是升級後的產品線。所以我們無法按時獲得該產品。

So, clearly, we are affected by external things that we can't control. So to be cautious, we like to be guiding on the lower end of the range. That's why we give a range, and so to be cautious, now, we like to be more towards the lower end of the range -- to guide towards that range.

因此，顯然，我們會受到我們無法控制的外在事物的影響。因此，為了謹慎起見，我們希望在區間的下限進行指導。這就是為什麼我們給出一個範圍，所以為了謹慎起見，現在，我們希望更接近該範圍的下限——以引導該範圍。

Okay, and then on the last part of my question directed towards Fred, the mix on the laser system sales, diodes versus WaterLase -- would you say it was 80-20?

好的，然後關於我向 Fred 提出的問題的最後一部分，雷射系統銷售、二極管與 WaterLase 的組合 - 你會說是 80-20 嗎？

Well, I'll say this -- that as a percentage of total revenues, laser sales were -- total laser sales were 69% in Q1 -- I'm sorry, they were -- yes, 69% in Q1 and 68% in Q2. But, yes, definitely, as Alex and Federico have mentioned, the percentage of WaterLase in that number is a little bit lower than historical.

好吧，我會這樣說——作為總收入的百分比，雷射銷售額是——第一季雷射總銷售額為69%——對不起，它們是——是的，第一季為69%，第第二季為68%在第二季。但是，是的，正如 Alex 和 Federico 所提到的，WaterLase 在該數字中所佔的百分比略低於歷史水平。

Okay, thank you.

好的謝謝。

Okay, you're welcome, Joe. Let's go to the next question, Operator.

好的，不客氣，喬。讓我們進入下一個問題，操作員。

Keay Nakae, Ascendiant Capital.

Keay Nakae，上升資本。

For any of you -- with your guidance at low end of the guidance, that, almost by definition, means that you should be selling more WaterLase in the back half of the year. I guess my question is, one, given the components of your strategy to get doctors started using laser dentistry and getting your foot in the door, perhaps, by selling imaging, do you have any sense for what the timeframe is to convert that doctor who is first exposed to those other technologies into buying a WaterLase?

對於你們中的任何人來說——按照你們的指導方針的低端，幾乎按照定義，這意味著你們應該在今年下半年銷售更多的 WaterLase。我想我的問題是，一，考慮到您讓醫生開始使用激光牙科並邁入大門的策略的組成部分，也許通過銷售影像，您是否知道轉變那位醫生的時間範圍是多少？是先接觸那些其他技術才買WaterLase？

And then the second part of that question is -- the cost of the WaterLase seems to be an obstacle for dentists, notwithstanding the ROI proposition you put forward to them. But any other things that you can do creatively to mitigate that obstacle?

然後問題的第二部分是 - WaterLase 的成本似乎對牙醫來說是一個障礙，儘管您向他們提出了投資回報率建議。但是你還可以創造性地做其他事情來減輕這個障礙嗎？

Let me answer to that in a quite simple way. We don't really believe that the price of the WaterLase is the issue at all. Once a dentist understands the advantages of finding WaterLase, they make the investment. What we have seen is enormous amount of interest around the WaterLase, but what we are seeing is a lot of dentists that are actually closing the sale -- I'm sorry -- closing the purchase. And we believe that that has a lot to do with the great uncertainty that Obamacare has created.

讓我以一種非常簡單的方式來回答這個問題。我們並不認為 WaterLase 的價格是問題所在。一旦牙醫了解了 WaterLase 的優勢，他們就會進行投資。我們看到人們對 WaterLase 產生了巨大的興趣，但我們看到的是許多牙醫實際上正在結束銷售——我很抱歉——結束購買。我們認為，這與歐巴馬醫改造成的巨大不確定性有很大關係。

We have to understand that dental offices, they're small businesses. So we're not dealing with large organizations. We are dealing with really small businesses that are slower in understanding what effect there can be of such radical changes as Obamacare can be.

我們必須了解牙科診所是小型企業。所以我們不與大型組織打交道。我們正在與非常小的企業打交道，他們對奧巴馬醫改這樣的徹底變革可能會產生什麼影響了解得較慢。

So we believe that the year is going to be more heavy-loaded in the second part of the year because of dentists that analyzing what this Obamacare means for them and eventually we'll absorb and understand what Obamacare is; understand also that there is an increase in price because of that. And eventually they will turn around -- that's what we expect -- and we closing the purchase finally in the second half of the year. And I think that Q4 will be quite important to Biolase.

因此，我們相信今年下半年的任務將會更加繁重，因為牙醫們正在分析歐巴馬醫改對他們意味著什麼，最終我們將吸收並理解歐巴馬醫改是什麼；也請理解，因此價格上漲。最終他們會扭轉局面——這正是我們所期望的——我們最終在今年下半年完成了收購。我認為第四季度對 Biolase 來說非常重要。

Regarding the timeframe to turn a dentist that buys a diode to turn into a WaterLase dentist, but it's really not a specific timeframe. Sometimes they'll happen quite soon, some other times they'll happen later. But it's very important that we educate dentists, hundreds of them, by year-end, thousands of them, that will have acquired a soft-tissue laser, our Epic 10 into becoming dental lasers dentists.

關於將購買二極體的牙醫轉變為 WaterLase 牙醫的時間範圍，但這實際上不是一個特定的時間範圍。有時它們會很快發生，有時它們會稍後發生。但非常重要的是，我們要教育數百名牙醫，到年底，將有數千名牙醫獲得軟組織雷射（我們的 Epic 10），成為牙科雷射牙醫。

And so by having made that commitment, that step, into understanding laser dentistry, then they will become more passionate about it, and they will make the second step what is the one to have an old tissue laser, whether it's soft tissue and hard tissue. We want to remember to remind that the Epic 10 can only do serving in soft tissue. So they will want to upgrade to the hard tissue as well, and they will buying old tissue laser that is the WaterLase.

因此，透過做出這項承諾，這一步，了解雷射牙科，然後他們會對它變得更加熱情，他們將做出第二步，即擁有舊組織雷射，無論是軟組織還是硬組織。我們要記住，Epic 10 只能在軟組織中發揮作用。因此，他們也想升級到硬組織，他們會購買舊的組織雷射器，即 WaterLase。

I'll add to that answer, Keay, that -- you mentioned the second half pattern of selling more WaterLases. That has been the case for us all along. We always sell significantly more in the second half of the year than the first half of the year, and that relates mostly to the way dentists make their own purchasing decisions with their own tax considerations.

我要補充這個答案，基伊，你提到了銷售更多 WaterLases 的下半年模式。我們一直都是這樣。我們下半年的銷售量總是比上半年多得多，這主要與牙醫根據自己的稅務考量做出購買決定的方式有關。

So that pattern we expect to continue. In fact, I think we've never not had that pattern every single year of the Company's history. We sell more in the second half.

因此我們希望這種模式能夠持續下去。事實上，我認為在公司歷史上每一年我們都從未沒有過這種模式。我們下半年銷售較多。

The issue you raised about the ROI and the obstacles to selling -- the ROI argument is a very strong one because as most dentists finance their purchases when they buy a WaterLase, so they're paying a monthly payment, and the amount that they make in additional billing greatly exceeds that by several -- by a multiple, so it's a very easy answer -- whether the laser pays for itself.

您提出的有關投資回報率和銷售障礙的問題 - 投資回報率的論點非常有力，因為大多數牙醫在購買 WaterLase 時都會為購買提供資金，因此他們每月支付費用，以及他們賺取的金額額外的費用大大超過了幾倍——所以這是一個非常簡單的答案——雷射是否能收回成本。

But that, by itself, is almost never sufficient to sell a laser. That's just what gets us to the table. And I think our complete understanding of the selling process is maturing in that way -- that we don't just pitch on the ROI. We don't just pitch on the large amount of clinical evidence that the WaterLase should be used in almost every dental procedure for the best patient care. Those things are important, and they're necessary, but they are not the thing that gets the dentist over the edge and makes the purchasing decision.

但這本身幾乎不足以銷售雷射。這就是讓我們坐到談判桌前的原因。我認為我們對銷售流程的全面理解正在以這種方式成熟——我們不僅僅關注投資回報率。我們不僅僅依靠大量的臨床證據來證明 WaterLase 應該在幾乎所有牙科手術中使用，以獲得最佳的患者護理。這些東西很重要，而且是必要的，但它們並不是讓牙醫陷入困境並做出購買決定的東西。

It's a lot like, when any of us make a purchasing decision, when you think about when you're going to buy a car, you don't just look at all the statistics and make a cold, calculated decision. You actually -- you look at the statistics, you look at the performance, but then when you actually make the purchase, it's because you've sat in the car, you've driven it, you decided emotionally this is what's for you. And it's the same thing for a dentist. It's an emotional decision at the end.

這很像，當我們任何人做出購買決定時，當您考慮何時購買汽車時，您不會只是查看所有統計數據並做出冷酷的、深思熟慮的決定。實際上，你查看統計數據，查看性能，但是當你真正進行購買時，這是因為你坐在車裡，你駕駛過它，你在情感上決定這就是適合你的。對牙醫來說也是同樣的事情。這是一個最終的情感決定。

So the ROI argument is part of it, the clinical data is part of it, but, at the end of the day, it's what it can do for them. It's the why, it's what it can do for patients, and we're getting -- that's part of what our new VP of Marketing is going to be focusing on and what you're going to see our marketing change and mature in the second half of 2013. We're going to be focusing more on that why and that emotional pushing them over the edge.

因此，投資回報率爭論是其中的一部分，臨床數據是其中的一部分，但是，歸根結底，這就是它能為他們做的事情。這就是原因，這就是它能為患者做的事情，我們正在得到——這是我們新任行銷副總裁將重點關注的部分內容，也是你將在第二年看到我們的行銷變化和成熟的部分. 2013 年下半年。我們將更專注於原因以及推動他們走出困境的情感。

And I would add to Federico's answer about the timeframe of making a purchase after first buying an imaging device is that we're brand-new into that. We've just -- this is just the second quarter that we've had imaging sales, and so that timeframe that that takes before someone buys a VGI or a CAD/CAM system from us, until they smarten up enough to also by a WaterLase -- that's going to be something we're going to discover as we go forward. But it's an exciting additional way that we have to get our foot in the door and to leverage our existing conference presence and our WCLI presence.

我想補充一下費德里科關於首次購買成像設備後購買的時間範圍的答案，我們對此是全新的。我們剛剛——這只是我們進行成像銷售的第二個季度，所以在有人從我們這裡購買 VGI 或 CAD/CAM 系統之前需要一段時間，直到他們足夠聰明，能夠通過WaterLase——這將是我們在前進過程中將會發現的東西。但這是一種令人興奮的額外方式，我們必須邁出第一步，並利用我們現有的會議和 WCLI 的影響力。

Okay, so let's, Operator, move on to the next caller, please.

好的，接線員，請轉到下一個呼叫者。

Lenny Brecken, Brecken Capital.

萊尼·布雷肯，布雷肯資本。

Alex, this is a question for you. You are a Director, and you went through -- you're stepping into the organization actually to help fix it and run it. And as the guy who is running it day-to-day, just give me an idea what makes you want to step in that role given the fact that the balance sheet is thin, you're very low on cash, (inaudible) WaterLase sales are not doing what was expected to be done domestically, and how confident do you think, given your role in the Company, that you're going to be able to make almost an immediate change. I mean, you have to see sales grow in the second half and start generating cash. I mean, what makes you think you can do it? I mean, why step into a role given those facts? That's what I'm trying to understand -- why would you -- I mean, you were a Director, and now you've upped your -- I guess you kind of would say "liability," to actually become part of a management team at a time when it's pivotal, let's put it that way. So I just want to understand what your conviction level is and why you think you can turn around -- because the need is almost immediate. Thanks.

亞歷克斯，這是問你的問題。你是一名主管，你經歷了——你實際上進入了組織，以幫助修復和運行它。作為日常營運的人，請告訴我是什麼讓你想要擔任這個角色，因為資產負債表很薄弱，你的現金非常少，（聽不清楚）WaterLase銷售並沒有達到國內預期的效果，考慮到您在公司的角色，您認為自己能夠立即做出改變有多大信心？我的意思是，你必須看到下半年的銷售額成長並開始產生現金。我的意思是，是什麼讓你認為你能做到？我的意思是，考慮到這些事實，為什麼要進入一個角色呢？這就是我想要理解的 - 為什麼你會 - 我的意思是，你是一名董事，現在你已經提高了你的 - 我想你會說“責任”，實際上成為管理層的一部分團隊在關鍵時刻，讓我們這樣說吧。所以我只是想了解你的信念程度以及為什麼你認為你可以扭轉局面——因為這種需求幾乎是迫在眉睫的。謝謝。

Thank you, Lenny. Thank you for that question. You'll notice that when I started my prepared remarks I said that Biolase has great technology, great products, great people, a great patent portfolio, but I did not mention a great balance sheet. Our balance sheet is admittedly not the strongest part about our story. And it's a mixed overall picture.

謝謝你，萊尼。謝謝你提出這個問題。您會注意到，當我開始準備好的演講時，我說 Biolase 擁有出色的技術、出色的產品、出色的人才、出色的專利組合，但我沒有提到出色的資產負債表。誠然，我們的資產負債表並不是我們故事中最有力的部分。整體狀況好壞參半。

Now, the strengths of this Company are really exciting. What our product can do is really exciting. So when I look at this whole picture, and you're right, I have bet my career on this because I think that what we have and the opportunity in front of us and the products we have and the technology we have, we can overcome our challenges.

現在，這家公司的實力確實令人興奮。我們的產品可以做的事情確實令人興奮。因此，當我看到整個情況時，你是對的，我把我的職業生涯押在了這上面，因為我認為我們擁有的東西和我們面前的機會以及我們擁有的產品和我們擁有的技術，我們可以克服我們的挑戰。

Our challenges are strengthening our balance sheet and creating an infrastructure to deliver on the promise of this great technology. So -- the reason I wanted to step in -- if this were already a company that had everything going for it, if we already had a fortress-like balance sheet with lots of -- with a war chest of cash, and we had this great product, then our valuation would be far higher, and there wouldn't be this incredible opportunity for me to come in and be part of this.

我們的挑戰是加強我們的資產負債表並創建基礎設施來兌現這項偉大技術的承諾。所以，我想介入的原因是，如果這已經是一家一切順利的公司，如果我們已經擁有一個堡壘般的資產負債表，裡面有大量現金，而且我們有如果有了這個偉大的產品，那麼我們的估值就會高得多，而且我也不會有這個難以置信的機會參與其中。

I'm excited by the challenges we have and by the game pieces that are in place. I mean, this is like being put into a strategic game where you have terrific cards to play and challenges to overcome, but you look at the cards in your hand, and you know the cards in your hand are so powerful that you're going to be able to overcome the challenges.

我對我們面臨的挑戰和現有的遊戲片段感到興奮。我的意思是，這就像進入一個戰略遊戲，你有很棒的牌可以打，有挑戰需要克服，但你看看你手中的牌，你知道你手中的牌是如此強大，以至於你想要去能夠克服挑戰。

So -- I look at this as a tremendous opportunity, as a tremendous amount of fun, and to do real -- to make a real difference in the world because of what we do really makes a difference in patients' lives and in the careers of our target market. I mean, I am totally serious when I say I'm talking to customers, dentists, who have told me that they have delayed their retirement by 10 years because the WaterLase has made such a difference in their practice. And those -- if they couldn't have the WaterLase that they would retire tomorrow. I hear that again and again when I'm talking to our customers.

因此，我認為這是一個巨大的機會，一個巨大的樂趣，並且要做實事，為世界帶來真正的改變，因為我們所做的事情確實對患者的生活和職業生涯產生了影響我們的目標市場。我的意思是，當我說我正在與客戶、牙醫交談時，我是非常認真的，他們告訴我，他們已經推遲了 10 年退休，因為 WaterLase 在他們的實踐中產生瞭如此大的變化。而那些——如果他們不能擁有 WaterLase，他們明天就會退休。當我與客戶交談時，我一次又一次聽到這樣的說法。

But do you believe that you haven't hit a brick wall, as a company, in the WaterLase product line in penetrating the innovators. I mean, you must think that because then you wouldn't have taken the role.

但您是否相信，作為一家公司，您在 WaterLase 產品線中滲透創新者方面還沒有碰壁。我的意思是，你一定這麼想，因為那樣的話你就不會擔任這個角色。

You're correct. I think we have -- there is not a brick wall between the innovators and the early adopters and the early majority. I think what we have is a situation where most of our sales, to date, have been to the innovators and a few of the early adopters.

你是對的。我認為我們——創新者、早期採用者和早期大眾之間沒有磚牆。我認為我們目前的情況是，迄今為止，我們的大部分銷售都面向創新者和一些早期採用者。

And it's inevitable, in my opinion, that this is going to have to happen. It's a question of when not if. And so that's a situation where everything is lining up. I mean, we're getting -- we're finally getting some incoming calls from dental schools that want to be involved in updating their curriculum so that they expose their students to laser dentistry and laser removal of caries.

在我看來，這是不可避免的。這是一個何時而不是是否的問題。所以這就是一切都在排隊的情況。我的意思是，我們終於接到了一些來自牙醫學校的電話，他們希望參與更新他們的課程，以便讓學生接觸雷射牙科和雷射去除齲齒。

I mean, that's something that I thought should have happened 10 or 15 years ago. This technology has been available, and dental schools are supposed to be teaching the best to their patients -- to their students -- but that this hasn't really taken off. And now we're starting to see that.

我的意思是，我認為這應該在 10 或 15 年前發生。這項技術已經可用，牙科學校應該向他們的患者和學生傳授最好的知識，但這還沒有真正開始。現在我們開始看到這一點。

I see enough reasons that we are going to be able to transition from the innovators to the early adopters and the early majority as your question implies, or else I would not have made this personal career decision. I am betting it all on this, and I think I'm going to win.

正如您的問題所暗示的那樣，我看到有足夠的理由表明我們將能夠從創新者過渡到早期採用者和早期多數，否則我不會做出這個個人職業決定。我把一切都押在這件事上，我想我會贏。

Greg Garner, Singular Research.

格雷格·加納，奇異研究。

First of all, I appreciate all the talk about the marketing plans and such because I believe, I think, and most people on the call, believe that there's some great products here. There's been some marketing hurdles, however, and so with that being said, my understanding why the second quarter did not meet the internal goals was because the salesperson has, you know, these expensive WaterLase, they have this inexpensive diode, and there's these CAD/CAM products, and Mr. Dentist, you haven't seen me before, what looks the most interesting?

首先，我感謝所有關於行銷計劃等的討論，因為我相信，我認為，以及大多數參加電話會議的人，都相信這裡有一些很棒的產品。然而，存在一些行銷障礙，話雖這麼說，我的理解為什麼第二季度沒有達到內部目標是因為銷售人員有，你知道，這些昂貴的 WaterLase，他們有這種便宜的二極管，還有這些 CAD / CAM產品，牙醫先生，你以前沒見過我，什麼看起來最有趣？

If they like the idea, it makes sense that they would go into a lower-cost product initially. So, first of all, I want to clarify that that's an appropriate way of looking at it, and then how does that change, though, in your approach? Is it just more a salesman incentive? Is there -- what else might be involved in having that alter so that the WaterLase benefits are really moved into the early adopter arena?

如果他們喜歡這個想法，那麼他們最初會選擇成本較低的產品，這是有道理的。因此，首先，我想澄清這是一種適當的看待它的方式，那麼，在你的方法中，這種變化是如何改變的呢？這更多的是對推銷員的激勵嗎？為了讓 WaterLase 的優勢真正進入早期採用者領域，進行這種改變還可能涉及什麼？

Again, we have to understand the really where we are today in the dental laser market. WaterLase has been around for quite some time. Hard tissue lasers have been approved. We have had ours approved almost 15 years ago. In October of this year will be our 15th anniversary.

同樣，我們必須了解我們目前在牙科雷射市場中的真正位置。 WaterLase 已經存在相當長一段時間了。硬組織雷射已獲得批准。大約 15 年前，我們的計劃就已獲得批准。今年10月將是我們成立15週年紀念。

But in reality a true competitive hard-tissue laser has been only delivered two and a half years ago when we launched the iPlus. And what I mean for competitive is a dental laser that is an all-tissue laser that can do soft and hard and is as fast as a dental drill.

但實際上，真正有競爭力的硬組織雷射只是在兩年半前我們推出 iPlus 時才交付的。我所說的競爭性指的是牙科雷射器，它是一種全組織雷射器，可以軟化和硬化，並且速度與牙鑽一樣快。

So -- for the very first time, two and a half years ago, we were able to break the speed barrier and launch a product to the dental community that could conceivably compete with the dental drill.

因此，兩年半前，我們第一次能夠突破速度障礙，並向牙科界推出一款可以與牙鑽競爭的產品。

So, in reality, it is an infant market, it is a very, very young market. And that is what is interesting about Biolase and what we are doing. There is where the opportunities are. The fact is that we can expand dramatically these markets in the years to come. But, clearly, we need to now deal with a larger number of dentists that are ready to adopt new technologies but they really have to understand the value of it.

所以，實際上，這是一個新生市場，是一個非常非常年輕的市場。這就是 Biolase 以及我們正在做的事情的有趣之處。哪裡就有機會。事實上，我們可以在未來幾年大幅擴展這些市場。但是，顯然，我們現在需要與更多準備採用新技術的牙醫打交道，但他們確實必須了解新技術的價值。

So -- here we are to explain to them the value of laser dentistry and particularly the value of WaterLase. It is a process, but that will be successful -- there is absolutely no doubt in my mind -- it is clearly an effort in education, in marketing. We have established a new marketing approach by using diodes. The best diode that is in the market to actually penetrate into the more traditional kind of dentist now the innovators, that jump on the new technologies as they like to advance themselves that way.

因此，我們在這裡向他們解釋雷射牙科的價值，特別是 WaterLase 的價值。這是一個過程，但一定會成功——在我看來這是毫無疑問的——這顯然是教育和行銷方面的努力。我們利用二極體建立了一種新的行銷方法。市場上最好的二極體實際上已經滲透到更傳統的牙醫領域，現在是創新者，他們利用新技術，因為他們喜歡以這種方式推進自己。

The more traditional ones, they really have to understand the value of it, and so that is our effort now, and that effort will pay off, there is no doubt. But it is a more complicated approach to marketing because it requires a substantial amount of education of this dentist.

更傳統的人，他們確實必須了解它的價值，所以這就是我們現在的努力，毫無疑問，這種努力將會得到回報。但這是一種更複雜的行銷方法，因為它需要牙醫接受大量的教育。

But, again, we are very optimistic that WaterLase is right on the cusp of adoption, but we are definitely affected like many medical companies, by this confusion of Obamacare -- what does it really mean for these dentists? They have to absorb that. They are small businesses. They don't take decisions as small businesses and spending that kind of money likely. So clearly they have to understand and absorb all that is happening. It is a very substantial change -- Obamacare -- in the whole medical system. So that is what we hear from dentists, from our customers.

但是，我們再次非常樂觀地認為 WaterLase 正處於採用的風口浪尖，但我們肯定像許多醫療公司一樣受到奧巴馬醫改的這種混亂的影響 - 這對這些牙醫來說真正意味著什麼？他們必須吸收這一點。他們是小企業。他們不會像小企業那樣做決定，也不會花那麼多錢。很明顯，他們必須理解並吸收正在發生的一切。歐巴馬醫改對整個醫療體係來說是一個非常重大的改變。這就是我們從牙醫和客戶那裡聽到的。

To reinforce what Federico said about the iPlus being only a two-year-old product, it's not just a minor model upgrade. In 2011 when we switched from the WaterLase MD to the WaterLase iPlus. It really is a very different product and it's the first time it's comparable in speed to the drill, and it's the first time that it's user-friendly enough that it can really be considered a standard of care for mainstream dentists who are not the thought leaders, not the technophiles.

為了強調 Federico 所說的 iPlus 只是兩年前的產品，它不僅僅是一個小型的型號升級。 2011 年，我們從 WaterLase MD 切換到 WaterLase iPlus。它確實是一個非常不同的產品，這是第一次它的速度與鑽頭相當，而且這是第一次它足夠用戶友好，可以真正被認為是非思想領袖的主流牙醫的護理標準，而不是技術愛好者。

And I'll follow that up with a very specific example -- just this last weekend at Biolase headquarters, we had one of our regular training courses for advanced techniques using the WaterLase. And we have a bunch of iPlus units and a few MD units that are in the training room for the dentists who pay to come and learn advanced techniques from other dentists right in our training facility.

接下來我將舉一個非常具體的例子 - 就在上週末，在 Biolase 總部，我們舉辦了一項關於使用 WaterLase 的先進技術的定期培訓課程。我們的訓練室裡有許多 iPlus 設備和一些 MD 設備，供牙醫付費，他們可以在我們的訓練設施中向其他牙醫學習先進技術。

And they preferred to double up on the iPluses rather than any of them use the WaterLase MDs because there's such a difference in how the laser cuts and performs. So when you think about our 15-year history, you really should think about this product has only really been available for the last two years and change since we launched the iPlus. And that's another reason why we haven't made already more of a dent into the mainstream adopters, but that we have optimism that we're going to.

他們喜歡加倍使用 iPlus，而不是使用 WaterLase MD，因為雷射切割和執行的方式有很大差異。因此，當您回顧我們 15 年的歷史時，您確實應該考慮一下這款產品直到最近兩年才真正上市，並且自從我們推出 iPlus 以來就發生了變化。這就是為什麼我們還沒有對主流採用者產生更多影響的另一個原因，但我們對我們將採取的行動持樂觀態度。

Thanks, I appreciate that. Look at the early adopter as a group, is it easy, from a marketing standpoint, to quantify how many there are, which dentist groups are in that category? Or is it really more you just need to market to everyone in those first who step up -- they meet that qualification? Or is there some parameters to help target the marketing effort? And also I wondered how the leads from Sun Dental are helping?

謝謝，我很感激。看看早期採用者作為一個群體，從行銷的角度來看，是否容易量化有多少個，哪些牙醫群體屬於該類別？或者你真的只需要向每個首先站出來的人進行行銷——他們符合資格？或者是否有一些參數可以幫助確定行銷工作的目標？我還想知道太陽牙科的線索如何提供幫助？

These are artificial designations, of course. I mean, dentists don't call themselves innovators or early adopters or early [majority] -- this is just a vernacular for us to characterize.

當然，這些都是人為的指定。我的意思是，牙醫不會稱自己為創新者、早期採用者或早期[多數]——這只是我們描述的一種白話。

But you can tell who they are. You can tell the real -- the gadget-loving, technology-loving dentists, and the ones that are not as much like that.

但你可以看出他們是誰。你可以分辨出真實的牙醫——熱愛小工具、熱愛科技的牙醫，以及那些不那麼喜歡的牙醫。

The other part of your question was about Sun Dental? We're not commenting specifically on how many CAD/CAM units that resulted in yet other than it's working, and we're getting leads from that, and it's a one-year agreement so it runs its course through next April.

您問題的另一部分是關於 Sun Dental 的？我們並沒有具體評論有多少 CAD/CAM 單元已經投入使用，我們正在從中獲得線索，而且這是一項為期一年的協議，因此它的有效期將持續到明年 4 月。

Okay, we'll go to the next caller.

好的，我們去接下一個來電者。

Paul Bornstein, Black Diamond.

保羅伯恩斯坦，《黑鑽石》。

Again, I'm a little late, so hopefully I'm not repeating the question. But given all the talk about the marketing aspects, I'm wondering -- and, obviously, you're focused a little on the patient trying to recruit the dentists to get the product for their use given that it's a better process. I wonder if you could describe how you're making inroads into that? Secondarily, what are the incentives for the salespeople? Do they know the urgency? Are they getting small base with a huge upside as they produce, because there's been a lot of salespeople in the organization over the years, but now is a critical time, and it seems like it should explode at some point. When the sales happen, it will happen very quickly, but you need to get all your fingers in the pie at the same time.

再說一遍，我有點晚了，所以希望我沒有重複這個問題。但考慮到所有關於行銷方面的討論，我想知道——而且，顯然，你有點專注於試圖招募牙醫來獲得產品供他們使用的患者，因為這是一個更好的過程。我想知道您能否描述一下您是如何在這方面取得進展的？其次，對銷售人員的激勵是什麼？他們知道事情的迫切性嗎？他們在生產時是否獲得了具有巨大優勢的小基數，因為多年來組織中有很多銷售人員，但現在是關鍵時刻，似乎應該在某個時候爆發。當銷售發生時，它會發生得非常快，但你需要同時把所有的手指都投入其中。

And, lastly, do you have a general financing group that works with you to make it a lot easier for the dentist as he evaluates the product?

最後，您是否有一個與您合作的一般融資小組，以便牙醫在評估產品時變得更加容易？

All right, we'll try to answer those questions in reverse order, even though you technically asked there more than one question and one follow-up. But we'll be a little gracious on that rule in this case, because those are fairly straightforward questions.

好吧，我們會嘗試以相反的順序回答這些問題，即使您在技術上問了不止一個問題和一個後續問題。但在這種情況下，我們會稍微寬容一點，因為這些都是相當簡單的問題。

So -- we do have a couple of financing groups that we refer dentists to, but they're external to the Company, and there's some of them that we've had more of a history with than others, but I guess you were just asking if we refer them directly to finance groups, and the answer is yes, we do. We do everything we can to facilitate that.

因此，我們確實有幾個融資團體可供牙醫推薦，但他們是公司外部的，而且我們與其中一些團體的合作歷史比其他團體更悠久，但我猜你只是當詢問我們是否將他們直接轉介給金融團體時，答案是肯定的，我們會這麼做。我們盡一切努力來促進這一點。

On the compensation of our reps, we're obviously not going to comment on the specific compensation other than to say that our compensation scheme is set up so that if you work very hard and sell a lot of lasers you can do extremely well at Biolase, and if you don't, you're not going to be very happy here, and you're going to end up, probably, leaving the organization.

關於我們代表的薪酬，我們顯然不會評論具體薪酬，只是說我們的薪酬計劃是這樣設置的，如果你工作非常努力並銷售大量激光器，你可以在 Biolase 做得非常好，如果你不這樣做，你在這裡不會很開心，而且你最終可能會離開這個組織。

So -- we believe -- or at least -- every quarter that goes by, we believe more and more in the maxim that we should feed the eagles and starve the turkeys; that is, give the greatest incentive to the people that do the best for us and that are delivering the best results. So this is an organization that is and is even more going to become and organization of "A" players who want to work hard and make a lot of money in the process of selling an important product.

因此，我們相信，或者至少，每個季度，我們都越來越相信我們應該餵老鷹，餓死火雞的格言；也就是說，給予那些為我們做最好的事情並帶來最好結果的人最大的激勵。因此，這個組織現在是、甚至將成為「A」級參與者的組織，這些「A」級參與者希望在銷售重要產品的過程中努力工作並賺很多錢。

And then your first question, I think, was about the marketing strategy and -- could you repeat your first question again? It had to do with --

我認為你的第一個問題是關於行銷策略的，你能再重複一次你的第一個問題嗎？這與——

Yes, it was the marketing strategy of getting the patients to want the dentist to get the machines and showing dentists get more patients if they have the machine because of the quality of the care.

是的，這是一種行銷策略，目的是讓患者希望牙醫獲得機器，並向牙醫展示如果他們擁有機器，由於護理質量，他們會吸引更多患者。

Oh, yes, so the issue of patient awareness. We believe that if dentists are receiving incoming calls from patients asking them are they a laser dentist? Do they practice state-of-the-art laser dentistry? Are they a WaterLase dentist? Are they going to avoid using novocaine?

哦，對了，還有患者意識的問題。我們相信，如果牙醫接到患者打來的電話，詢問他們是雷射牙醫嗎？他們從事最先進的雷射牙科嗎？他們是 WaterLase 牙醫嗎？他們會避免使用奴佛卡因嗎？

If dentists get those calls, then they become a whole lot more receptive to interfacing with our salespeople, and that has started to happen. We've gotten anecdotal reports from our sales team where we have dentists that say, well, I've just gotten my third call from a patient who was asking about the WaterLase, so I guess it's time I started talking with you guys. That is starting to happen. It's a process, but dentistry is not the top subject on most people's health care mindsets. Generally, people who are thinking about their family and their health will think first about things like heart disease and cancer and then diet fads and then cosmetic procedures, and dentistry comes a little bit after that. That's why you don't see a whole lot of articles in The New York Times and The Wall Street Journal about dentistry technologies.

如果牙醫接到這些電話，那麼他們就會更願意與我們的銷售人員互動，而這種情況已經開始發生。我們從我們的銷售團隊那裡得到了一些軼事報告，其中的牙醫說，好吧，我剛剛接到一位患者打來的第三個電話，他詢問WaterLase 的情況，所以我想是時候開始和你們談談了。這正在開始發生。這是一個過程，但牙科並不是大多數人醫療保健思維中的首要主題。一般來說，考慮家庭和健康的人首先會想到心臟病和癌症等問題，然後是節食時尚，然後是整容手術，最後是牙科。這就是為什麼您在《紐約時報》和《華爾街日報》上看不到大量有關牙科技術的文章。

But it is becoming more of an item for people to be aware of, and anyone who becomes aware of it understands how much of a difference there is. So we're making progress.

但它正變得越來越成為人們需要意識到的一個項目，任何意識到它的人都明白其中有多大的差異。所以我們正在取得進展。

Okay, thank you.

好的謝謝。

Thanks for the question. We're getting close to the end of the call, but I think we have time for two more -- a couple more questions. Two more questions.

謝謝你的提問。我們的通話即將結束，但我認為我們還有時間再問兩個問題——幾個問題。還有兩個問題。

Robert Hoffman, Princeton Opportunity.

羅伯特霍夫曼，普林斯頓大學的機會。

Just a quick question following up on the last question on terms of the salesforce. Can you give us some color of where you stand with the number? I know the last time you were making plans for increasing the number and kind of give us some color on salesforce composition right now. Thanks.

這是關於銷售人員方面的最後一個問題的後續問題。您能告訴我們您對這個數字的立場嗎？我知道您上次製定增加數量的計劃，這讓我們對現在的銷售人員組成有了一些了解。謝謝。

Sure. The latest numbers on our salesforce. At the beginning of Q2 we had 41 total salespeople including the sales managers. And we added seven and lost six. So, overall, so we're now at 42. Now, when I say we lost six, some of them that we let go and some that left on their own. But, in total, we're plus one in headcount. For this year, actually, we've been pretty constant, because we began the year in Q1 at 42, added three, lost four during Q1, ended 41. And now in Q2 we've added seven and lost six, net 42.

當然。我們銷售人員的最新數據。第二季初，包括銷售經理在內，我們共有 41 位銷售人員。我們增加了七個，失去了六個。所以，總的來說，我們現在是 42 人。現在，當我說我們失去了 6 人時，其中一些我們放棄了，有些則自行離開。但總的來說，我們的員工人數增加了一人。事實上，今年我們的表現相當穩定，因為我們在第一季開始時為42 名，在第一季度增加了3 名，減少了4 名，最終為41 名。現在在第二季度我們增加了7名，減少了6 名，淨值42 名。

So we do plan to grow that further. We've got several open territories that we've got some opportunities for some hungry people that we're looking at now, but that's where we stand as of today.

所以我們確實計劃進一步發展這一點。我們有幾個開放的地區，我們為一些飢餓的人提供了一些機會，我們現在正在尋找這些機會，但這就是我們今天的立場。

And are you having success in terms of the people that are successful are staying? I mean, have you lost any that you wish you didn't? And if you did, where would you lose them to?

就成功人士留下來而言，您是否取得了成功？我的意思是，你有沒有失去過任何你希望沒有的東西？如果你這麼做了，你會把他們丟到哪裡去？

That's a little bit more detailed than we want to go into, but I'll add that we're also looking at specialists because now that we're branching out into more products, and we recognize that it's an awful lot to ask one person to be pitching an all-tissue WaterLase laser, and at the same time pitching the benefits of an interoffice six-figure VGI imaging device -- all one person doing all that.

這比我們想要討論的要詳細一些，但我要補充一點，我們也在尋找專家，因為現在我們正在擴展到更多產品，而且我們認識到向一個人詢問是一件非常困難的事情推銷全組織WaterLase 雷射器，同時推銷辦公室間六位數VGI 成像設備的優點——所有這一切都是一個人做的。

So we're looking at starting to specialize, and then also related to our salesforce, we're, as we mentioned, we're probably going to have a small number of dedicated sales reps as we're going into otolaryngology, into ENTERPRISE, as we start to sell office space to ENT lasers as soon as the fourth quarter of this year.

因此，我們正在考慮開始專業化，然後也與我們的銷售隊伍相關，正如我們所提到的，當我們進入耳鼻喉科、進入企業時，我們可能會有少量專門的銷售代表，因為我們最早將今年第四季開始向耳鼻喉科雷射公司出售辦公空間。

What is important to understand is that clearly we are making efforts also in restructuring our salesforce because it is a fact that they were selling only one product in the past. Now they're selling multi-products. They were not selling diodes, for instance. Now they are selling diodes. So there are some sales reps that are more receptive to these kind of changes. There are others that are less receptive. So we clearly want our sales reps to be -- having that kind of flexibility and push all product lines, and as Alex said, we're going to have specialists to actually close the sale. So our reps that will open the door to the specialist to then close the sale on high-end product line, special imaging CAD/CAM that are very specialized.

重要的是要理解，我們顯然也在努力重組我們的銷售隊伍，因為事實上他們過去只銷售一種產品。現在他們正在銷售多種產品。例如，他們不銷售二極體。現在他們正在銷售二極體。因此，有些銷售代表更容易接受此類變化。還有一些人不太容易接受。因此，我們顯然希望我們的銷售代表具有這種靈活性並推動所有產品線，正如亞歷克斯所說，我們將有專家來真正完成銷售。因此，我們的代表將為專家打開大門，然後關閉高端產品線、非常專業的特殊成像 CAD/CAM 的銷售。

But, yes, we are restructuring internally our salesforce to make sure that our reps, they do push the entire product line and not just WaterLase as they used to be.

但是，是的，我們正在內部重組我們的銷售隊伍，以確保我們的代表確實推動整個產品線，而不僅僅是像以前那樣推動 WaterLase。

Okay, so I think we'll take one last question.

好的，我想我們要回答最後一個問題。

Lenny Brecken, Brecken Capital.

萊尼·布雷肯，布雷肯資本。

I've asked this multiple times of you, and now I'm going to ask it in a public forum. What are you doing to make the product, WaterLase, more affordable for dentists? And I want, just, in my effort in terms of asking these questions over the last 12 months. But also in light of the fact that two of your sell side analysts have used the word "expensive" in conjunction with WaterLase in the same sentence. Please explain how you're making the product more affordable for dentists or increased the value proposition, if you want to approach it that way?

我已經問過你這個問題了，現在我要在公共論壇上問這個問題。您正在採取哪些措施來讓 WaterLase 產品對牙醫來說更便宜？我只是想在過去 12 個月裡努力提出這些問題。但也考慮到你們的兩位賣方分析師在同一句話中將「昂貴」一詞與 WaterLase 結合使用。如果您想這樣做，請解釋一下您如何使產品對牙醫來說更便宜或增加價值主張？

Lenny, we had several discussions, you and I. You, as an important shareholder of the Company, over this specific issue. Price is not as much of a concern as you think. And I will be very strong in this. As an example, the iPlus costs much more money than a WaterLase MVX for 50 or 300, and we don't sell many units of MVX or 300, we sell a lot of iPluses.

萊尼，你和我，我們進行了多次討論。你作為公司的重要股東，就這個具體問題進行了討論。價格並不像您想像的那麼重要。我在這方面會非常堅強。舉個例子，iPlus 的價格比 WaterLase MVX 貴得多，為 50 或 300，我們不賣很多 MVX 或 300 單位，我們銷售很多 iPlus。

So if price should really be a concern, you would see WaterLase 450 and 300 outnumber the iPlus. That is not the case. It is exactly the opposite.

因此，如果價格確實是一個問題，您會發現 WaterLase 450 和 300 的數量超過了 iPlus。事實並非如此。事實恰恰相反。

(inaudible) requirements of the market -- MDX.

（聽不清楚）市場需求－MDX。

I'm sorry?

對不起？

The MDX does not meet the functional requirements, the minimum requirements, dentists look for in actually committing to buy the products. The iPlus does. So the question is for that level of functionality, is the iPlus appropriately priced, and how much is it affecting demand? Do you have any --

MDX 不符合牙醫在實際承諾購買產品時尋求的功能要求和最低要求。 iPlus 確實如此。因此，問題是對於該等級的功能，iPlus 的定價是否合適？它對需求的影響有多大？你有什麼 -

Lenny.

萊尼。

I mean, just -- we can debate whether it's important or not, Federico, and I respect your opinion, but I just want to know, like, what is the Company's efforts to make it more affordable so that adoption can increase. That's all I'm asking.

我的意思是，我們可以討論它是否重要，Federico，我尊重你的意見，但我只是想知道，公司正在採取哪些努力來使其更便宜，以便提高採用率。這就是我要問的。

Lenny, our efforts in R&D to make products better and less costly is a constant effort. So there is no giving up in any possible way to lower the cost of an iPlus. But, clearly, you have to understand that as we will increase quantities, we will also be able to lower, to a certain degree, because of the quantities that manufacturing cost is iPlus. So we will definitely have an improvement on -- in that respect, and we'll be able to, over time, lower somewhat the price of a WaterLase as quantities rise.

Lenny，我們在研發方面的努力是為了讓產品更好、成本更低，這是我們不斷努力的成果。因此，為了降低 iPlus 的成本，我們不能放棄任何可能的方式。但是，顯然，你必須明白，隨著我們增加數量，我們也將能夠在一定程度上降低，因為製造成本是 iPlus 的數量。因此，在這方面，我們肯定會有所改進，隨著時間的推移，隨著數量的增加，我們將能夠稍微降低 WaterLase 的價格。

But the fact is that the WaterLase is a very complex technology, and the cost of manufacturing one, it is what it is. And so for us to have 50%-plus gross margin on a WaterLase, we have to keep the prices where they are.

但事實是 WaterLase 是一項非常複雜的技術，而且製造成本也很高。因此，為了讓 WaterLase 的毛利率達到 50% 以上，我們必須保持價格不變。

But I think the Company should commission a formal study to actually get to the bottom of whether it's an issue or not an issue. I guess that's what -- I think that needs to be done by your marketing department.

但我認為公司應該委託進行一項正式研究，以真正弄清楚這是否是一個問題。我想這就是——我認為這需要由你們的行銷部門來完成。

Lenny, without disagreeing with the idea of a formal study, because I think there could be a lot gained by studying that issue over and over again, which we have done, but we will continue to do. But the history of products that are game-changers, if you can use that word in multiple sectors, especially in high-end medical devices that I can think of, is not one where they -- where prices dropped, over time. There are several companies that come to mind that had game-changing, market-leading products that are more expensive than ours that rose, over time, because the value proposition was there and because it was a must-have. And we think that once people understand what we do, we think we're in that category. We have more confidence in increasing the value proposition and getting clinicians to understand the value of what the WaterLase does for them than in dropping the price.

萊尼，並不反對正式研究的想法，因為我認為一遍又一遍地研究這個問題可以獲得很多收穫，我們已經這樣做了，但我們將繼續這樣做。但是，如果你可以在多個領域使用這個詞，尤其是我能想到的高端醫療設備，那麼改變遊戲規則的產品的歷史並不是價格隨著時間的推移而下降的。我想到的有幾家公司擁有改變遊戲規則、市場領先的產品，這些產品比我們的產品更貴，而且隨著時間的推移，這些產品的價格不斷上漲，因為價值主張就在那裡，而且是必備品。我們認為，一旦人們了解我們所做的事情，我們就會認為我們屬於這個類別。與降低價格相比，我們更有信心提高價值主張並讓臨床醫生了解 WaterLase 為他們帶來的價值。

We are, as Federico mentioned, we are looking at every single component of the bill of materials, and there are some engineering fixes that can drive down individual part costs, over time. But that --

正如費德里科所提到的，我們正在研究物料清單的每一個組成部分，並且隨著時間的推移，有一些工程修復可以降低單個零件的成本。但那——

Valid studies -- I didn't mean to imply you need to just drop the cost. I worded it so that it's the value proposition. Are they adding more functionality? I want to understand what you're doing with the overall value proposition of the product to make it more attractive or a sale to occur, and the sales site could actually contract for the product.

有效的研究—我並不是暗示你需要降低成本。我這樣表述是為了體現價值主張。他們是否添加了更多功能？我想了解您對產品的整體價值主張做了什麼，以使其更具吸引力或進行銷售，並且銷售網站實際上可以簽​​訂產品合約。

I didn't mean to -- believe me, you guys have indicated to me enough so that I know that cost alone is not the only problem towards getting in the next phase of growth. I understand that, and I compliment you all for explaining that to me as well as other shareholders.

我不是故意的——相信我，你們已經向我表明了足夠的信息，讓我知道成本並不是進入下一階段增長的唯一問題。我理解這一點，並讚揚你們向我以及其他股東解釋了這一點。

But I didn't mean to imply that you just need to drop the cost. I wanted to better understand the entire value proposition because if the value proposition was that strong, then sales would be a lot higher, right? We all know that. So I'm just trying to get at what it is that you need to do on that respect. And I even mentioned some of it, but I wanted to reiterate the question.

但我並不是說你只需要降低成本。我想更好地理解整個價值主張，因為如果價值主張那麼強，那麼銷售額就會高得多，對吧？我們都知道。所以我只是想了解在這方面你需要做什麼。我什至提到了其中一些，但我想重申這個問題。

Lenny, we have efforts -- ongoing efforts in that respect. We always want to make our products better reliable and user-friendly and with other features and so on. So, again, we are not going to disclose what we are doing or not. We are simply saying that we have clearly an ongoing effort in improving the WaterLase (inaudible) product that is the iPlus. It is a fact and, clearly, making it user-friendly is a very important aspect of it.

萊尼，我們在這方面一直在努力。我們一直希望我們的產品更加可靠、用戶友好以及具有其他功能等等。因此，再次強調，我們不會透露我們正在做什麼或沒有做什麼。我們只是說，我們顯然一直在努力改進 WaterLase（聽不清楚）產品 iPlus。這是事實，顯然，使其用戶友好是其中一個非常重要的方面。

Lenny, what you're asking gets to the heart of our entire marketing strategy and sales and marketing challenge. I mean, what you're asking is kind of a summary of everything we talked about on the call today.

萊尼，您所問的問題涉及我們整個行銷策略以及銷售和行銷挑戰的核心。我的意思是，你所問的問題是我們今天在電話中討論的所有內容的總結。

I know, that's why I wanted to reiterate the point because I think that's critical for investors to gain confidence that in the next 18 months you're going to turn it around and re-accelerate sales again. I think you will. I think the addition of the marketing executives as well as Alex are key additions to the management team that I think investors, in general, don't appreciate the significance of.

我知道，這就是為什麼我想重申這一點，因為我認為這對投資者獲得信心至關重要，讓他們相信在未來 18 個月內你將扭轉局面並再次加速銷售。我想你會的。我認為行銷主管和亞歷克斯的加入是管理團隊的關鍵補充，我認為投資者總體上並沒有意識到其重要性。

Thank you, Lenny. Thank you very much, that's a great note to end our call today. We've exceeded our time, and we appreciate everybody's attention and interest.

謝謝你，萊尼。非常感謝，這是我們今天通話的一個很好的結束語。我們已經超出了我們的時間，我們感謝大家的關注和興趣。

This concludes today's teleconference. You may now disconnect your lines at this time, and we thank you for your participation.

今天的電話會議到此結束。您現在可以斷開線路，我們感謝您的參與。