Biolase Picture Brightens

Biolase (BLTI) investors can find a reason to smile again.

After a series of painful disappointments, sales of the company's dental lasers have suddenly rocketed under a different management team. Biolase's search for a CEO has come to an end as well; former Cardinal Health (CAH) executive Jake St. Philip is taking over amidst the turnaround.

Shares of Biolase, which had been trading near a multi-year low ahead of the developments, surged 36% to $3.15 on the news Monday.

Biolase said it expects to post fourth-quarter sales of more than $20 million -- well ahead of Wall Street's $17.4 million target and a record for the company. Sales were hovering about 35% below that level just one quarter ago.

Biolase cited improved relations with its key distributor, Henry Schein (HSIC), when explaining the rebound. That partnership has been the source of both high hopes and major disappointments in the past.

Indeed, Biolase overhauled its management team late last year in an effort to make that deal work, firing CEO Jeffrey Jones. The company said Monday that its CFO, Richard Harrison, has now left the organization as well. It is seeking a replacement.

In the meantime, Biolase will rely on St. Philip to steer the company's turnaround. St. Philip spent most of his 25-year health care career at a company now owned by Cardinal, most recently serving as a senior vice president for the multibillion-dollar drug distributor.