Zila Begins FY03 With Clean Slate

Zila Begins FY03 With Clean Slate

PHOENIX--Zila Inc. (NASDAQ:ZILA) reported that forits fiscal year (FY02), ended July 31 and announced Nov. 14, it has already setinto motion a management strategy to get the company out of the red.

Sales were up to $34.9 million from $30.7 million in the sameperiod last year, while gross margin slid to 64.3 percent of sales from 66.5percent. Operating expenses rose to $26.0 million from $23.3 million, and netloss widened to $12.0 million, or $.27 per share lost, compared to FY01's lossof $6.4 million, or $.15 per share lost. Most of FY02's loss--$11.3 million--wasdue to costs in continuing operations.

Zila hopes to put FY02 behind it with new management, anuntapped line of credit, profitable nutraceutical and pharmaceutical lines, andpromising research from its biotech unit.