Wednesday October 7, 12:01 am Eastern Time
Company Press Release
SOURCE: Zila, Inc.
Zila Reports Record Revenue & Earnings For FY 1998
PHOENIX, Oct. 7 /PRNewswire/ -- Zila, Inc. (Nasdaq: ZILA - news), international provider of healthcare products for dental/medical professionals and consumers, announced fiscal year 1998 (ended July 31, 1998) revenue of $62,107,000, a
61 percent increase over revenue of $38,665,000 for FY 1997. Net income for FY 1998 was $2,301,000 or $0.07 per share,
compared to a net loss of $6,458,000 or $0.20 loss per share in FY 1997, an earnings turn-around of $8.8 million, or $0.27 per share.
Zila has a strong balance sheet with $5.2 million in cash, insignificant long-term debt, a current ratio of 3 to 1, and healthy
positive cash flow.
Profit for the year took into account non-recurring acquisition and purchase accounting adjustments of $201,000. A total of
$3,016,000 domestic and international OraTest(R) costs were also expensed during FY 1998, including research and development, manufacturing, marketing, regulatory expenses and the development of a new standard for tolonium chloride,
the active ingredient in OraTest. Also expensed were $1,254,000 in research, product development, regulatory and
upgrading costs related to several of the Company's other products, as well as $1,813,000 of goodwill amortization related
to Zila's acquisition program. Included in net income was an income tax benefit of $1,800,000 resulting from the utilization
of net operating losses carried forward.
Zila President Joseph Hines said, ''Zila's revenues have grown ten-fold in two years, with the Company returning to
profitability in FY 1998 after several years of investment in the OraTest oral cancer detection system project. Today, OraTest
is moving into worldwide distribution, with U.S. FDA approval pending. The Ester-C(R) product line, based on a unique,
patented technology, was recently expanded beyond vitamin supplements to skin care products and is now moving into the
sports nutrition market. Zila's professional dental products and oral care pharmaceuticals groups continue to grow ahead of
plan. Management's objective for FY 1999 is to accelerate internal growth while taking advantage of additional product,
technology or business acquisition opportunities as they arise.''
Hines also noted that three brokerage houses recently initiated coverage of Zila with Buy recommendations, ''affirming our
immediate growth potential and hopefully attracting greater institutional interest in the Company.''
During the second quarter of FY 1998, Zila issued Series A Convertible Preferred Stock to fund the acquisition of Oxycal
Laboratories. Based on the conversion terms of the shares, an embedded dividend of approximately $7,315,000 was
deducted after net income in order to compute a non-cash, non- operating loss per share of $0.15 for the fiscal year.
Zila, Inc., markets pharmaceutical, biomedical, dental and nutritional products to professionals and consumers through seven
operating groups: Zila Biomedical is introducing the OraTest(R) oral cancer detection system worldwide; Zila Manufacturing
produces the only pharmaceutical-grade toluidine blue -- Zila(R) Tolonium Chloride; Zila Pharmaceuticals markets
prescription and non-prescription oral healthcare products; Zila Dental Supply is a national dental supplies distributor;
PracticeWorks develops and markets proprietary dental practice management software; Cygnus Imaging manufactures and
markets intraoral video camera and digital x-ray systems; and Oxycal Laboratories manufactures and supplies Ester-C(R)
vitamin products worldwide. More information is available at www.zila.com.
This document contains forward-looking statements which are based on Zila's expectations and are subject to various
business risks and uncertainties, some of which are beyond Zila's control. Actual results could differ materially from these
forward-looking statements as a result of such risks. There can be no assurances that the forward looking statements
contained herein will in fact transpire or prove to be accurate.
SOURCE: Zila, Inc. |
