BIOLASE Inc (BIOL) 2023 Q3 法說會逐字稿

Good day. Welcome to the BIOLASE's Third Quarter 2023 Financial Results conference call. (Operator Instructions) I would now like to turn the conference over to Todd Kehrli. Sir, the floor is yours.

再會。歡迎參加 BIOLASE 2023 年第三季財務業績電話會議。 （操作員指示）我現在想將會議轉交給 Todd Kehrli。先生，地板是你的了。

Thank you, Karen, and good afternoon, everyone, and thank you for joining us today to discuss BIOLASE's financial results for third quarter ended September 30, 2020. On the call today from BIOLASE are John Beaver, President and Chief Executive Officer, Jennifer Bright, Chief Financial Officer. John will review the company's operating performance for the third quarter and then turn the call over to Jennifer to review the financials in more detail. Before opening the call for questions.

謝謝凱倫，大家下午好，謝謝您今天加入我們討論BIOLASE 截至2020 年9 月30 日的第三季度財務業績。今天接聽BIOLASE 電話的是總裁兼首席執行官約翰·比弗(John Beaver) 和詹妮弗·布萊特(Jennifer Bright) ， 財務長。約翰將審查公司第三季的經營業績，然後將電話轉給詹妮弗，以更詳細地審查財務狀況。在開始提問之前。

Before we begin, I'd like to remind everyone that a number of forward-looking statements, which are any statements that are not historical facts we'll be made during this presentation and subsequent Q&A session, including forward-looking statements regarding the company's strategic initiatives and anticipated financial performance. These forward-looking statements are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995.

在我們開始之前，我想提醒大家，我們將在本次演示和隨後的問答環節中做出一些前瞻性陳述，這些陳述不是歷史事實，包括有關公司的前瞻性陳述戰略舉措和預期的財務業績。這些前瞻性陳述是根據 1995 年《私人證券訴訟改革法案》定義的前瞻性陳述。

And are based on BIOLASE's current expectations and assumptions and are subject to a variety of risks and uncertainties that could cause the company's actual results to differ materially from the statements made. Such forward-looking statements only represent the company's view as of today, November 9, 2023. These risks are discussed in the company's filings with the Securities and Exchange Commission.

並且基於 BIOLASE 目前的預期和假設，並受到各種風險和不確定性的影響，這些風險和不確定性可能導致公司的實際結果與所做的陳述有重大差異。此類前瞻性陳述僅代表本公司截至今天（2023 年 11 月 9 日）的觀點。本公司向美國證券交易委員會提交的文件中討論了這些風險。

A replay of this conference call will be available in BIOLASE's website shortly after completion of today's call. While listening to this call, please refer to the news release issued earlier today, announcing the company's 2020 third quarter financial results. If you do not have a copy of the news release, it is available in the Investor Relations section of the BIOLASE website at www.biolase.com.

今天的電話會議結束後不久，將在 BIOLASE 網站上提供本次電話會議的重播。在收聽本次電話會議時，請參閱今天稍早發布的新聞稿，公佈了該公司 2020 年第三季財務業績。如果您沒有新聞稿的副本，可以在 BIOLASE 網站 www.biolase.com 的投資者關係部分取得。

BIOLASE's financial results can also be found in the Company's report on Form 10-Q, which will be filed with the Securities and Exchange Commission. The tables we provided in today's news release offer additional financial information, so we encourage you to review them. The tables include the reconciliation of unaudited GAAP net loss and net loss per share to non-GAAP adjusted EBITDA loss and adjusted EBITDA loss per share, as well as more information regarding company's non-GAAP disclosures.

BIOLASE 的財務表現也可以在公司將向美國證券交易委員會提交的 10-Q 表格報告中找到。我們在今天的新聞稿中提供的表格提供了額外的財務信息，因此我們鼓勵您查看它們。這些表格包括未經審計的 GAAP 淨虧損和每股淨虧損與非 GAAP 調整後 EBITDA 虧損和調整後每股 EBITDA 虧損的調整表，以及有關公司非 GAAP 披露的更多資訊。

With that said, I'll now turn the call over to BIOLASE's President and Chief Executive Officer, John Beaver. John, please go ahead.

話雖如此，我現在將電話轉給 BIOLASE 總裁兼執行長 John Beaver。約翰，請繼續。

Good afternoon, everyone. Thank you for joining us today to discuss our third quarter earnings results. While we continued to experience rising interest in our industry leading dental lasers through increased lead generation. The ongoing uncertainty caused by the macroeconomic environment is extending our sales cycle and did impact our third quarter revenue performance.

大家下午好。感謝您今天加入我們討論我們第三季的獲利結果。同時，透過增加潛在客戶，我們對業界領先的牙科雷射的興趣不斷增長。宏觀經濟環境造成的持續不確定性正在延長我們的銷售週期，並確實影響了我們第三季的營收表現。

The same headwinds impact our business are also being experienced by many other companies in our sector, as evidenced by their recent results and commentary, we believe there are several factors contributing to the longer decision making process, including higher interest rates and lower patient volumes.

我們行業的許多其他公司也經歷了同樣的不利因素影響我們的業務，正如他們最近的業績和評論所證明的那樣，我們認為有幾個因素導致了更長的決策過程，包括更高的利率和更低的患者數量。

However, we believe it is critical that we maintain our revenue generating activities to drive greater awareness and interest in our award-winning lasers to minimize the impact and be in a much stronger position when the economy returns to a more normalized state. Our goal is to be prepared to capitalize on the significant market opportunity in front of us. Having said that, Dennis may also take the opportunity to seek our laser solutions in an effort to grow their business, and I believe we are well positioned to benefit from this potential growth driver as the value proposition is obvious.

然而，我們認為，至關重要的是，我們必須維持創收活動，以提高人們對我們屢獲殊榮的雷射的認識和興趣，從而最大限度地減少影響，並在經濟恢復到更正常化的狀態時處於更有利的地位。我們的目標是做好充分準備，充分利用擺在我們面前的重大市場機會。話雖如此，丹尼斯也可能會藉此機會尋求我們的雷射解決方案，以努力發展他們的業務，我相信我們處於有利地位，可以從這一潛在的成長動力中受益，因為價值主張是顯而易見的。

Currently less than 10% of dentistry in the US and less than 2% worldwide use an all-tissue laser in the practice. And we are the go-to leader as we command approximately 60% of the worldwide all-tissue laser dental market with our order less brand. However, we need to attract to more than 90% of dentistry who are not using all-tissue laser in their practice.

目前，美國不到 10% 的牙科診所和全球不到 2% 的牙科診所在實踐中使用全組織雷射。我們是首選領導者，因為我們憑藉無訂單品牌佔據了全球全組織雷射牙科市場約 60% 的份額。然而，我們需要吸引 90% 以上在實踐中未使用全組織雷射的牙科人員。

This untapped market represents a significant market opportunity for BIOLASE and having to establish ourselves as a premium brand for quality, reliability and after-sales service and training. We are working hard to engage this other 90%. We have significantly increased our efforts to engage dental specialists such as periodontists pediatric dentistry Into Darkness and dental hygienists through our waterways and EPIC academies.

這個未開發的市場對 BIOLASE 來說是一個重要的市場機會，必須將自己打造成品質、可靠性、售後服務和培訓的優質品牌。我們正在努力吸引另外 90% 的人參與。我們透過水道和 EPIC 學院大力吸引牙科專家，例如牙周病專家、兒童牙科 Into Darkness 和牙科保健員。

We have simplified training on our products for these specialists and made it clear the significant return on investment they can achieve with our lasers, not to mention the benefits to their patients. We are also actively engaging the over 150,000 general practitioner dentistry in the US by increasing education and training through initiatives like overlays trial program and our recently opened state of the art training facility, the BIOLASE Education Center, which provides dental clinicians with an engaging learning environment tailored around laser education, the BIOLASE Education Centers adjacent to a state-of-the-art dental office lasers, smalls, which provides access to live patient education.

我們為這些專家簡化了產品培訓，並明確說明他們可以透過我們的雷射器獲得顯著的投資回報，更不用說為患者帶來的好處了。我們還積極吸引美國超過 150,000 名全科醫生牙科，透過涵蓋試驗計劃等舉措以及我們最近開放的最先進的培訓設施 BIOLASE 教育中心（為牙科臨床醫生提供了一個引人入勝的學習環境）來增加教育和培訓BIOLASE 教育中心圍繞雷射教育量身定制，毗鄰最先進的小型牙科診所雷射器，可提供現場患者教育。

We continue to explore ways to improve this training program are excited about changes made this quarter and for next year that will move our training platform to more of a national event, helping us market even better and making these events much more cost effective. These initiatives drive increased laser adoption by providing dentistry with education and training, they need to provide safer, more advanced alternatives to their patients through lase dentistry.

我們繼續探索改進該培訓計劃的方法，對本季度和明年所做的變化感到興奮，這些變化將使我們的培訓平台更多地成為全國性活動，幫助我們更好地進行行銷並使這些活動更具成本效益。這些舉措透過為牙科提供教育和培訓來推動雷射的採用，他們需要透過雷射牙科為患者提供更安全、更先進的替代方案。

On the topic of lase adoption, we are encouraged by the continued growth in our consumable sales, which increased 10% year over year in the third quarter as utilization of our laser systems by our installed base continues to increase. As the industry leader, our new customer acquisition efforts continued to generate increased lead generation even in this difficult macro environment. And we continue to actively pursue partnerships with corporate dentistry universities, several dental schools and postgraduate programs have already integrated award, laser and our EPIC soft tissue lasers, creating a pathway for future dentistry to adopt laser dentistry early in their careers.

在雷射採用方面，我們的耗材銷售持續成長令我們感到鼓舞，隨著我們的安裝基礎對雷射系統的利用率持續增加，第三季耗材銷售年增 10%。作為行業領導者，即使在這種困難的宏觀環境下，我們的新客戶獲取工作仍繼續產生更多的潛在客戶。我們繼續積極尋求與企業牙科大學的合作夥伴關係，一些牙科學校和研究生課程已經整合了獎項、激光和我們的 EPIC 軟組織激光器，為未來牙科在其職業生涯早期採用激光牙科創造了一條途徑。

Turning briefly to operations, our internal optimization efforts over the past several quarters have considerably improved our results and are beginning to bear fruit as evidenced by our expanded gross margin and a 52% reduction in operating loss year over year in the third quarter. Greater efficiencies and improved operating performance have dramatically reduced our losses and position us for greater success as the economy improves.

簡單來說營運方面，過去幾季我們的內部優化工作顯著改善了我們的業績，並開始取得成果，第三季毛利率擴大和營運虧損年減 52% 就證明了這一點。更高的效率和改善的營運績效極大地減少了我們的損失，並使我們能夠隨著經濟的改善而取得更大的成功。

I expect our stronger and leaner operating posture will allow us to perform far better in the future and achieve our top and bottom line goals.

我預計，我們更強大、更精簡的營運態勢將使我們在未來表現得更好，並實現我們的頂線和底線目標。

In summary, while the uncertainty caused by the macro impact our results this quarter, we are confident in our ability to capture the substantial market opportunity still in front of us. We adapt our business during COVID to operate more efficient efficiently, while at the same time, preparing for better days as a result of performance coming out of the pandemic was significantly improved.

總而言之，雖然宏觀經濟帶來的不確定性影響了我們本季的業績，但我們對抓住仍然擺在我們面前的巨大市場機會的能力充滿信心。我們在新冠肺炎疫情期間調整了業務，以提高營運效率，同時為更好的日子做好準備，因為疫情過後的業績顯著改善。

We're doing the same thing in this environment we prepared to irrespective of the macroeconomic issues, drive greater adoption of our dental lasers through increased education training and the continued execution of our revenue growth plan, while at the same time, our prudent expense management will propel us toward achieving our profitability objectives.

在這種環境下，我們正在做同樣的事情，我們準備好無論宏觀經濟問題如何，透過增加教育培訓和持續執行我們的收入增長計劃來推動我們牙科激光器的更多採用，同時我們審慎的費用管理將推動我們實現獲利目標。

With that said, I will turn the call over to Jennifer Bright, our Chief Financial Officer, to provide more in-depth insights into our financial results for the quarter and discuss our guidance for the remainder of the year. Thank you again for your participation, and we look forward to addressing your questions at the end of the call. Jennifer?

話雖如此，我將把電話轉給我們的財務長 Jennifer Bright，以提供有關我們本季度財務業績的更深入見解，並討論我們對今年剩餘時間的指導。再次感謝您的參與，我們期待在通話結束時解決您的問題。詹妮弗？

Thank you, John, and good afternoon, everyone. I'm going to provide more context around some of the numbers as well as highlight some of the operational improvements we achieved during the third quarter. For further details, please refer to our financial results, which you can find in the financial tables of our earnings release in our 10-Q.

謝謝約翰，大家下午好。我將提供有關一些數字的更多背景信息，並重點介紹我們在第三季度取得的一些營運改進。有關更多詳細信息，請參閱我們的財務業績，您可以在我們 10 季度收益發布的財務表格中找到該業績。

As John mentioned, our third quarter performance reflects the impact of macroeconomic environment is having on our dental laser sales. While our consumable revenue continued to grow as a result of our increased education and training. For the third quarter, we reported net revenue of $10.9 million, representing a 9% decrease year over year. This revenue decline is being driven by the difficult macro environment, which includes increased interest rates.

正如約翰所提到的，我們第三季的業績反映了宏觀經濟環境對我們牙科雷射銷售的影響。同時，由於我們加強教育和培訓，我們的消費品收入持續成長。第三季度，我們報告淨收入為 1,090 萬美元，年減 9%。收入下降是由困難的宏觀環境造成的，其中包括利率上升。

Despite these headwinds, we were able to achieve some promising metrics. We increased our consumable sales by 10% year over year as a result of higher utilization of our laser systems. We also expanded our gross margin by 1,400-basis points, which reflects improvements from changing to new suppliers which resulted in lower inventory reserves and warranty expenses, along with the impact of a favorable mix from higher-margin consumable sales compared to the year-ago quarter.

儘管有這些不利因素，我們還是實現了一些有希望的指標。由於雷射系統利用率的提高，我們的耗材銷售額年增了 10%。 We also expanded our gross margin by 1,400-basis points, which reflects improvements from changing to new suppliers which resulted in lower inventory reserves and warranty expenses, along with the impact of a favorable mix from higher-margin consumable sales compared to the year-ago四分之一.

Lastly, our continued efforts to drive further operating improvements and efficiencies resulted in a significantly reduced operating loss during the quarter, down 52% compared to the year ago quarter. While we cannot control the macro environment, we can control certain manufacturing costs and operating expenses.

最後，我們繼續努力推動進一步的營運改善和效率，導致本季營運虧損大幅減少，與去年同期相比下降了 52%。雖然我們無法控制宏觀環境，但我們可以控制一定的製造成本和營運費用。

And these improvements in gross margin and operating loss are positive indicators of our ongoing efforts to optimize operational efficiency and drive profitability during the third quarter, our gross margin was 34% compared to 20% in the year ago quarter. As I mentioned, this represents an improvement from changing to new suppliers, which has resulted in lower inventory reserves and warranty expenses compared to the year ago quarter.

這些毛利率和營業虧損的改善是我們在第三季持續努力優化營運效率和提高獲利能力的正面指標，我們的毛利率為 34%，而去年同期為 20%。正如我所提到的，這代表了更換新供應商的改進，與去年同期相比，庫存儲備和保固費用降低了。

Also at the end of 2022, we completed an acquisition of a trunk fiber supplier that has allowed us to supplement third-party components with our own in-house manufactured components, which has helped us reduce the overall cost of goods for those key components. On the expense line total operating expenses were $7.4 million, down significantly from $10.1 million in the year ago quarter.

同樣在 2022 年底，我們完成了對一家主幹光纖供應商的收購，這使我們能夠用自己內部製造的組件來補充第三方組件，這幫助我們降低了這些關鍵組件的整體商品成本。在費用方面，總營運費用為 740 萬美元，較去年同期的 1,010 萬美元大幅下降。

This decrease was mainly due to the cost savings initiatives we announced during the 2023 second quarter, which included a roughly 20% reduction in BIOLASE's US workforce workforce reduction as part of the Company's broader efforts to gain greater efficiencies throughout the organization without impacting our revenue-generating strategies for the company's ability to continue delivering unparalleled quality and value to its global customer base, we expect to generate approximately $5 million to $6 million of annualized cost savings due to these cost savings initiatives.

這一下降主要是由於我們在2023 年第二季度宣布的成本節約計劃，其中包括BIOLASE 在美國的勞動力減少約20%，這是公司在不影響我們收入的情況下在整個組織內提高效率的更廣泛努力的一部分。透過制定策略，使公司能夠繼續為其全球客戶群提供無與倫比的品質和價值，我們預計由於這些成本節約舉措，每年將節省約 500 萬至 600 萬美元的成本。

GAAP net loss for the quarter was $4.6 million compared to a net loss of $8.4 million for the third quarter of 2022. GAAP net loss per share for the quarter was $3.89 compared to $110.36 for the third quarter of 2022. Our adjusted EBITDA loss for the third quarter was $3.1 million compared to an adjusted EBITDA loss of $5.6 million for the third quarter of 2022. Adjusted EBITDA loss per share for the quarter was $2.67 compared to $73.99 for the third quarter of 2022. These positive trends indicate our continued progress toward achieving profitability.

本季GAAP 淨虧損為460 萬美元，而2022 年第三季的GAAP 淨虧損為840 萬美元。本季GAAP 每股淨虧損為3.89 美元，而2022 年第三季為110.36 美元。我們調整後的EBITDA 虧損第三季調整後EBITDA 虧損為310 萬美元，而2022 年第三季調整後EBITDA 虧損為560 萬美元。本季調整後每股EBITDA 虧損為2.67 美元，而2022 年第三季調整後每股EBITDA 虧損為73.99 美元。這些正面趨勢顯示我們正在實現獲利能力。

Now turning to the balance sheet. We finished the quarter with cash and cash equivalents of approximately $7.8 million. And looking ahead, as we continue our drive toward profitability, we expect to continue to expand our gross margin and reduce our operating expenses. Further, our in-house strong fiber made up 100% of the fiber we shipped in the third quarter, well ahead of our own internal projections.

現在轉向資產負債表。本季結束時，我們的現金和現金等價物約為 780 萬美元。展望未來，隨著我們繼續努力實現盈利，我們預計將繼續擴大毛利率並減少營運費用。此外，我們內部的強纖維占我們第三季度發貨的纖維的 100%，遠遠超出了我們自己的內部預測。

The expected cost savings will continue to drive increased gross margin and will get us closer to the 50% gross margin that we believe is needed to reach profitability. We also expect to drive significantly lower WTP. expenses this year by using our own centralized training facility to BIOLASE Education Center, which opened at the end of July. And we have three dentistry on staff to train prospective customers. We also continue to work with educational facilities, a restaurant nationwide to host WTP events at their locations at little to no cost.

預期的成本節省將繼續推動毛利率的提高，並使我們更接近我們認為實現盈利所需的 50% 毛利率。我們也預計將顯著降低支付意願。今年的費用透過使用我們自己的集中培訓設施來 BIOLASE 教育中心進行，該中心於 7 月底開業。我們擁有三名牙科員工來培訓潛在客戶。我們也繼續與教育機構、全國各地的一家餐廳合作，在其所在地免費甚至免費舉辦 WTP 活動。

Moving on to guidance. Despite the difficult macro environment, we continue to expect year-over-year revenue growth. We are now projecting full year 2023 revenue to be 1% to 3% higher than full year 2022 revenue with higher gross margin, expected WTP savings and the cost savings initiatives we've implemented, we expect our net loss from operations for both the fourth quarter and full year to be significantly improved compared to the comparable periods in 2022.

繼續指導。儘管宏觀環境困難，我們仍預期營收將年增。我們現在預計 2023 年全年收入將比 2022 年全年收入高 1% 至 3%，毛利率更高，預期 WTP 節省以及我們實施的成本節約舉措，我們預計第四季度的運營淨虧損與2022 年可比期間相比，季度和全年將顯著改善。

With that, I'll turn the call back to the operator to open the call for questions, operator.

這樣，我會將電話轉回接線生以開啟提問電話，接線生。

(Operator Instructions) Bruce Jackson, Benchmark Company.

（操作員說明）Bruce Jackson，Benchmark 公司。

Hi, good afternoon and thank you for taking my questions. I wanted to start off with the revenue guide, generally speaking in the fourth quarter is your strongest quarter and there's lot of sort of like last minute spending that goes on how are things currently shaping up in terms of the fourth quarter revenue?

你好，下午好，謝謝你回答我的問題。我想從收入指南開始，一般來說，第四季是你們最強勁的季度，有很多類似最後一刻的支出，目前第四季的營收狀況如何？

So far during the fourth quarter of this year is tracking pretty much to where we were the fourth quarter of last year. I still expect that we can beat the fourth quarter number from last year, and that's factored into our guidance for the full year.

到目前為止，今年第四季的情況與去年第四季的情況基本持平。我仍然預計我們能夠超過去年第四季的數字，這已納入我們全年的指導中。

Okay. And then the other question I wanted to ask about was the I get the lift on the gross profit. So in-house fiber was certainly an important component of that. Do you have any other sources of gross margin expansion --

好的。我想問的另一個問題是我的毛利得到了提升。因此，內部光纖無疑是其中的重要組成部分。你還有其他毛利率擴張的來源嗎——

I beyond what we've already incorporated Burress.

我超越了我們已經納入的 Burress。

Yes, I mean, if I didn�t, I don't know of is it a matter now? Of like overhead absorption, are there any other types of HMM cost savings can be achieved through supply chain, for example?

是的，我的意思是，如果我不這樣做，我不知道現在有什麼問題嗎？與管理費用吸收一樣，是否有任何其他類型的 HMM 成本節約可以透過供應鏈實現，例如？

Yes. Right. And you hit the nail on the head. Those are the two ways that we expect to continually improve our gross margin. One is with the fixed cost absorption, higher revenue and higher production volumes, obviously. But also, we are looking at a number of projects that could reduce our both are from a cost of goods sold from a material standpoint and from an efficiency standpoint. So, I am cautiously optimistic that we'll get some of those put in place next year, probably won't have an impact on our fourth quarter, though this year.

是的。正確的。你說得一中要害。這是我們期望不斷提高毛利率的兩種方式。一是固定成本的吸收、更高的收入和更高的產量，這是顯而易見的。而且，我們正在研究一些可以從材料角度和效率角度降低銷售商品成本的項目。因此，我謹慎樂觀地認為，我們將在明年實施其中一些措施，儘管今年可能不會對我們的第四季產生影響。

Okay, great. Thank you very much.

好的，太好了。非常感謝。

Thank you, Bruce.

謝謝你，布魯斯。

Frank Takkinen, Lake Street Capital Markets.

Frank Takkinen，湖街資本市場。

-- Thanks for taking the questions. Maybe continuing with that gross margin question, which had a nice jump from a year ago. It sounds like it should continue improving from here. Just wondering if you can maybe provide a bit more color, give us a sense of where you'd expect margins to level out in 24 and then maybe what we're shooting for beyond that?

——感謝您提出問題。也許繼續討論毛利率問題，這個問題比一年前有了很大的躍升。聽起來應該從這裡繼續改進。只是想知道您是否可以提供更多的顏色，讓我們了解您期望利潤率在 24 年內趨於平穩，然後也許我們的目標是什麼？

Yes. So, Nelson, I would expect gross margins next year in 2024 to be approaching that 50% level that Jim referenced in her remarks?

是的。那麼，Nelson，我預計明年 2024 年的毛利率將接近 Jim 在她的演講中提到的 50% 的水平？

I think US volume continues to go up. We could get to the mid-50s in 2025 and beyond, but certainly a target for next year will be as close to 50%. As we can get it, not sure we can get all the way to 50%, but we should certainly be in the high 40s.

我認為美國的銷量繼續上升。我們可能會在 2025 年及以後達到 50 多歲，但明年的目標肯定會接近 50%。據我們所知，不確定我們能否一路達到 50%，但我們肯定應該在 40 左右。

That's helpful. Thank you. And then you've talked about the challenging macro backdrop. Can you give us a sense of what you've maybe seen improving or not improving recently? And with that, did you see any noteworthy seasonality during the quarter? And if so, maybe help me understand how much of the slowdown was related to seasonality -- the challenging just overall IT environment.

這很有幫助。謝謝。然後您談到了充滿挑戰的宏觀背景。您能否告訴我們您最近可能看到哪些方面有所改善或沒有改善？那麼，您在本季是否看到任何值得注意的季節性因素？如果是這樣，也許可以幫助我了解經濟放緩在多大程度上與季節性有關——整個 IT 環境充滿挑戰。

So in terms of seasonality on traditionally and this goes back for many years, our best revenue quarters Q4, followed by Q2, followed by Q3 followed by Q1. And that sum has been a pretty consistent pattern throughout the years. So Q3, the one we just completed is seasonally our second lowest quarter historically, having said that, from a macro standpoint, we started seeing, I would say, in kind of August, September time frame deals that we normally would have expected to be closed in a certain timeframe taking longer to close.

因此，就傳統上的季節性而言，這可以追溯到很多年前，我們最好的收入季度是第四季度，其次是第二季度，其次是第三季度，然後是第一季。多年來，這個數字一直是相當一致的模式。因此，我們剛完成的第三季度是我們歷史上第二低的季度，話雖如此，從宏觀角度來看，我們開始看到，我想說的是，我們通常預期的八月、九月時間範圍內的交易在特定時間範圍內關閉，需要更長的時間才能關閉。

We knew that this could be a possibility, but we had not really seen it up until recently. And my belief is because of the higher interest rates that our doctors are seeing and therefore the higher monthly payments for their equipment. So what we've seen is those sales haven't gone away they've just taken a little bit longer to close as they look for various financial intelligence and so forth.

我們知道這可能是一種可能性，但直到最近我們才真正看到它。我的信念是因為我們的醫生看到的利率更高，因此他們的設備每月支付的費用也更高。所以我們看到的是，這些銷售並沒有消失，只是在尋找各種財務情報等方面需要更長的時間才能完成。

So I'm cautiously optimistic that that those sales still will occur and many of them did in the fourth quarter that we thought would delay or that we thought we would be able to close in the third quarter. And then from an international standpoint, there are some macroeconomic headwinds, very unique and somewhat tied to international markets, even though we had a pretty good quarter internationally, we were up by quarter over quarter a year ago, in revenue.

因此，我謹慎樂觀地認為，這些銷售仍然會發生，其中許多是在第四季度發生的，我們認為會延遲，或者我們認為我們能夠在第三季完成。從國際角度來看，存在一些宏觀經濟逆風，這些逆風非常獨特，並且在某種程度上與國際市場有關，儘管我們在國際上的季度表現相當不錯，但我們的收入比去年同期增長了一個季度。

Having said that, we still have Ukraine more going on in our sales to Russia or Neal, in certain ourselves in the Ukraine have been diminished and Israel is one of our top 10 to 15 countries typically. And their sales went to almost zero in the third quarter because of the war going on there. In addition, one of their really promising markets that we have developed over the last year after taking about six years to get registration is in Japan.

話雖如此，我們對俄羅斯或尼爾的銷售仍然有更多的烏克蘭，在某些方面我們在烏克蘭的銷售已經減少，而以色列通常是我們排名前 10 到 15 個的國家之一。由於那裡正在進行戰爭，他們的銷售額在第三季幾乎為零。此外，我們花了大約六年的時間才獲得註冊，去年開發的真正有前途的市場之一是日本。

However, being a US company and selling USD, the it really historical strength of the US dollar against the Japanese yen had hurt ourselves that they are making our product, you know, high higher costs than normally would be. We continue to work with our Japanese distributors to figure out ways to mitigate that. But that's tough. It has been significant for us as well.

然而，作為一家銷售美元的美國公司，美元兌日圓的歷史強勢已經傷害了我們自己，因為他們製造我們的產品的成本比正常情況下要高。我們將繼續與日本經銷商合作，找出緩解這種情況的方法。但這很難。這對我們來說也很重要。

Got it. And then maybe one more quick one, realizing it's fresh data. Can you talk about the expected response to the 12 months clinical outcomes for BIOLASE? Is repair there any anticipated reaction you are expecting to see from a demand perspective.

知道了。然後也許再快一點，意識到這是新數據。您能談談 BIOLASE 12 個月臨床結果的預期反應嗎？從需求的角度來看，修復是否有任何您期望看到的預期反應？

Yes. So you may recall that this is a follow-up to the report that came out about two years ago on the initial findings that were a six month follow-up and the messaging and the results were as expected, which clinically were of the same as the traditional treatment and the patient reported outcomes were much better.

是的。因此，您可能還記得，這是大約兩年前發布的報告的後續報告，該報告的初步發現是六個月的隨訪，訊息傳遞和結果符合預期，在臨床上與傳統治療和患者報告的結果要好得多。

We will be it maybe coincidentally or maybe not so of the American Academy of Perio Annual Meeting is this weekend, and we are well positioned to publish the recent McGuire study update that came out on the 12 month follow-up. And so, I'm hoping we'll hopefully we'll see some movement on specialists in that area. We have some of the show specials and what have you to tell speed up that acceleration.

我們將在本週末舉行美國佩里奧學會年會，這可能是巧合，也可能不是，我們已經準備好發布最近的麥奎爾研究更新，該研究更新是在12 個月的後續行動中發布的。因此，我希望我們能看到該領域專家的一些進展。我們有一些節目特別節目以及您要告訴我們的加速加速的內容。

And thanks for the --, and congrats again. Thank you,

感謝您的——，並再次祝賀。謝謝你，

Thank you.

謝謝。

Ed Woo, Ascendiant Capital Markets.

Ed Woo，上升資本市場。

Yes. Thanks for taking my question. You said that the uncertain macro environment is causing the sales cycle to lengthen. Is it you're talking about maybe one or two quarters? Or are some of these just dropping out because people just don't of the money, and I don't see the economic environment getting better near term.

是的。感謝您提出我的問題。您說宏觀環境的不確定性導致銷售週期拉長。你說的是一兩個季度嗎？或者其中一些只是因為人們沒有錢而退出，而且我認為短期內經濟環境不會好轉。

So we haven't seen really any that I know about a sell. So, we thought we'd go through. They've said no, and they don't want to buy. It's more the Yes, I'm still interested or I'm still working on the financing, but we need another two to three months to figure this out is more of that. So, I am hopeful that it is a lull here and there will catch up some part of 2024 when interest rates, if and when they start declining some.

因此，據我所知，我們還沒有真正看到任何有關出售的資訊。所以，我們以為我們會成功。他們說不，也不想買。更重要的是，是的，我仍然感興趣，或者我仍在進行融資，但我們還需要兩到三個月的時間來弄清楚這一點。因此，我希望現在的平靜期能夠趕上 2024 年的一段時間，屆時利率如果開始下降的話。

But I don't see any really lost sales is just delayed sales there. As you mentioned earlier, -- I'd just add that we saw some of this back in 2008 and nine with the recession news, which I don't believe we're in a recession today, but we certainly were back then. And we actually had dentists come to us that I think may have been on the fence, some minority or not decided and they decided they needed to differentiate their practice and bring in additional revenue streams that those are things that certainly our laser can do for their practice. And so, we had done some of that going on which I would expect if this continues and more dentistry will be even more dense will be reaching out to us to differentiate their practice with this technology.

但我不認為任何真正的銷售損失只是銷售延遲。正如您之前提到的，我想補充一點，我們在2008 年就看到了一些這樣的情況，九次經濟衰退的消息也看到了，我不相信我們今天已經陷入衰退，但我們當時肯定已經陷入了衰退。事實上，我們有牙醫來找我們，我認為他們可能持觀望態度，有些少數人或尚未決定，他們決定需要差異化他們的做法並帶來額外的收入流，這些都是我們的激光肯定可以為他們所做的事情實踐。因此，我們已經做了一些工作，我預計如果這種情況持續下去，更多的牙科將更加密集地聯繫我們，以利用這項技術來區分他們的實踐。

Great. And just dissecting a laser dentistry. Was it pretty much across all general dentistry as well as specialists? Also, some of the weakness limited to one-to-one group versus another?

偉大的。只是解剖雷射牙科。是不是幾乎所有普通牙科和專科牙科都如此？另外，有些弱點僅限於一對一小組與另一組小組之間的比較？

No, it is pretty much across the board. There wasn't one specific specialist or the GP sector that was impacted more or less than the others.

不，這幾乎是全面的。沒有哪一位特定的專家或全科醫生部門受到的影響或多或少。

Great work on compressor of our crushers. And I wish you guys. Good luck. Thank you.

我們破碎機的壓縮機做得很好。我祝福你們。祝你好運。謝謝。

Thank you Ed.

謝謝你艾德。

(Operator Instructions) Bruce Jackson, Benchmark.

（操作員指示）布魯斯·傑克遜，基準。

Hi and thanks for the follow-up. I wanted to ask briefly about the impact of the Novartis trial on the on the guidelines. And do you think this is going to help you in some way in was the you're able to achieve equivalent some of the radiographic data and it approached statistical significance, painful, it cut off use, but maybe just talk a little bit about how the guidelines process works and on will that help you in the long run?

您好，感謝您的跟進。我想簡單詢問諾華試驗對指引的影響。你認為這會以某種方式幫助你，因為你能夠獲得等效的一些射線照相數據，並且它接近統計顯著性，痛苦，它切斷了使用，但也許只是談談如何該指南流程有效，從長遠來看這會對您有幫助嗎？

So Bruce, I don't think that the McGuire study is going to create a seismic shift in changing guidelines for perio surgery or change in the way on perio surgery is taught in post grad programs. However, I think it did open a lot of Teradata's.

所以布魯斯，我認為麥奎爾的研究不會對圍手術期指南的改變產生巨大的變化，也不會改變研究生課程中圍手術期的教學方式。不過，我認為它確實打開了很多 Teradata 的。

And this is important because it's probably more GPs doing periodontal surgery than there are periodontists doing it because you have 100, 50,000 GPs, many of them doing perio surgery in the US and five or 6,000 periodontists. I think the key here is the improvement in the patient reported outcomes and we were happy that it was clinically statistically equivalent to traditional surgery. We knew that we would have believed that we would adopt kind of blow this study away and the patient reported outcomes. I think that's key is as more people patients in particular become familiar with our technology. There's still a long way to go on that.

這很重要，因為做牙周手術的全科醫生可能比做牙周病的牙周病醫生還要多，因為有100 到50,000 名全科醫生，其中許多人在美國做牙周手術，還有5 至6,000 名牙周病醫師。我認為這裡的關鍵是患者報告結果的改善，我們很高興它在臨床統計上與傳統手術相當。我們知道我們會相信我們會採取某種方式讓這項研究和患者報告的結果大吃一驚。我認為關鍵是越來越多的人（尤其是患者）熟悉我們的技術。這方面還有很長的路要走。

But one of the challenges for four dentists performing perio surgery to a patient case acceptance. If anybody that has heard about somebody having traditional perio surgery or somebody in their family has had or they've had in the past, they don't know that they ever happened to do them. It is one of the most invasive surgeries there are and the healing period is long for that. So by showing that there's a better way of doing this more, it was a less invasive way of doing it were quicker healing time and less pain.

但四名牙醫在進行牙周手術時面臨的挑戰之一是讓患者接受病例。如果有人聽說過有人做過傳統的圍手術期手術，或者他們的家人曾經做過或他們過去做過，他們不知道自己曾經碰巧做過這些手術。這是目前最具侵入性的手術之一，癒合期很長。因此，透過表明有一種更好的方法可以做到這一點，這是一種侵入性較小的方法，可以更快的癒合時間和更少的疼痛。

Yes, I think that's where the real benefit of the McGuire study.

是的，我認為這就是麥奎爾研究的真正好處。

And the arm the patient outcomes, that difference was statistically significant, correct.

與手臂患者的結果相比，這種差異具有統計意義，是正確的。

It was statistically significant. And my reaction to that has of course, it is right, because if you seen both surgeries you almost would have to be.

這是有統計學意義的。我對此的反應當然是正確的，因為如果你看過兩次手術，你幾乎就必須這麼做。

And is this one of the first times that you've that the profession in general has had a randomized controlled trial of something like this?

這是整個產業第一次進行類似的隨機對照試驗嗎？

Yes. So Bruce, I'm glad you brought that up. It is the first trial of this type that any dental laser company has ever done. And so, we want to do it the right way, not just Avio kind of our debt as we are and kind of track progress and everything. This was really a best-in-class first of its type study and no dental laser company has ever done anything like this before. It took us a long time to do it. I think we started this about four or five years ago and here we are and we certainly glad that that the results were that were what they were and that is completed.

是的。布魯斯，我很高興你提出這個問題。這是牙科雷射公司首次進行此類試驗。因此，我們希望以正確的方式來做這件事，而不僅僅是像我們現在這樣償還 Avio 債務，並追蹤進度和一切。這確實是同類研究中一流的首次，之前沒有牙科雷射公司做過這樣的事情。我們花了很長時間才做到這一點。我想我們大約在四、五年前就開始了這項工作，現在我們已經完成了，我們當然很高興結果就是這樣，而且已經完成了。

All right. That's it for me. Thank you.

好的。對我來說就是這樣。謝謝。

Thank you. Bruce.

謝謝。布魯斯.

(Operator Instructions) And there appear to be no further questions, turn the call back to John Beaver for closing remarks.

（操作員說明）似乎沒有其他問題了，請將電話轉回給 John Beaver 進行結束語。

Thank you, Karen, and I want to thank everyone for being on today's call. I also want to thank the Barclays team for their continued commitment and dedication. Each of them has worked tirelessly to make our customers successful and deliver an elevated standard of care and safety through laser dentistry.

謝謝你，凱倫，我要感謝大家參加今天的電話會議。我還要感謝巴克萊團隊的持續承諾和奉獻。他們每個人都孜孜不倦地努力幫助我們的客戶取得成功，並透過雷射牙科提供更高的護理和安全標準。

Yes, this is not in my prepared remarks, but I will tell everyone that we had some patients down at our laser small office this morning, and I went down there and there was a seven day or baby those have in there for that to be done because they could not Latch properly. And we have in feeding issues. I talk to the parents, young parents, some never had. This was their first child.

是的，這不在我準備好的發言中，但我會告訴大家，今天早上我們的激光小辦公室裡有一些病人，我去了那裡，那裡有一個 7 天或嬰兒在那裡。完成是因為他們無法正確鎖定。我們還有餵食問題。我與父母交談，年輕的父母，有些從未有過。這是他們的第一個孩子。

They were scared. It was just amazing what our technology can do. The product to meet with our laser took on about two minutes. And the baby was sleeping when they came out of the room that's what yes, talk about our employees that made, what just a story like that makes all of us want to get up and excited come to the office in income and support our patients and our customers and their patients. So, thank you, everyone. This concludes our call and have a great day.

他們很害怕。我們的技術能做到的事情真是令人驚奇。產品與我們的雷射相遇大約需要兩分鐘。當他們走出房間時，嬰兒正在睡覺，是的，談論我們的員工，這樣的故事讓我們所有人都想站起來，興奮地來到辦公室獲得收入並支持我們的病人，我們的客戶和他們的患者。所以，謝謝大家。我們的通話到此結束，祝您有美好的一天。

(Operator Instructions) Have a great day.

（操作員說明）祝您有美好的一天。