Biolase Picture Brightens

"I'm long gone," one former short-seller told TheStreet.com on Monday. "But I'm very surprised (by the new developments). I thought this was nearly terminal" last year.

Bears raked in huge profits on the company's decline. The stock, once a $20 highflier, has lost more than 85% of its value over the past three years. It has long ranked as a favorite target for short-sellers, although some of them had started covering their positions -- with short interest noticeably slipping -- ahead of this week's gains.

Based on Monday's update, at least, the company's management overhaul seems to be paying off.

"There is no doubt that some parts of the [Henry Schein] relationship weren't working well," Pignatelli admitted during the company's conference call in November. But "we see a significant value in the relationship with Schein, and we're working now together better.

"It's all about execution," he continued. "We have a large group of believers in this revolutionary technology, so we are here to stay."