Zila Reports Third Quarter Results

Zila Reports Third Quarter Results

PHOENIXZila Inc. (AMSE:ZILA)announced its financial results for the third fiscal quarter ended April 30(3Q04).

Net sales increased to $12.7 million from $12.4 million forthe third quarter of fiscal 2003.The company experienced a net loss of $1.6million, or $0.03 per diluted common share, for 3Q04, compared to a net loss of$639 thousand, or $0.01 per diluted common share, in the corresponding quarterin 2003. The loss reflects $1.1 million in net increased research anddevelopment investment in connection with the OraTest clinical program, thedevelopment of Ester-E, and a non-cash charge associated with the removal ofrestrictions on certain shares connected to the ViziLite acquisition; $716,000in marketing and selling expenses; a 340 basis point improvement in gross profitmargin; and a $283,000 decline in spending on general and administrativeexpenses.

Doug Burkett, Ph.D., Zilas chairman, president and chiefexecutive officer said, We are pleased with the progress we have achieved inbuilding our brand equity, and our pipeline of future products. We believe thatthe investments we have made this year will drive aggressive growth in FY05 andbeyond.