Zila Reports Sales Increase, Net Profit

Zila Reports Sales Increase, Net Profit

PHOENIXZila Inc.(NASDAQ:ZILA) reported Oct. 27 that its fiscal year (FY03), ended July 31, wasnotable due to a company shake-up that proved profitable.

Sales rose to $47.1 million from $34.9 million, and grossmargin dipped to 57.1 percent of sales from 64.3 percent logged in FY02, thanksto selling its saw palmetto inventory at its carrying value. Operating expensesincreased to $27.7 million from $25.8 million, but earnings improved, coming inas a net profit of $7.3 million, or $.16 earned per share, compared to FY02snet loss of $12.0 million, or $.27 lost per share.

The company chalked up its improved bottom line to havingreplaced half of its Arizona workforces and investing substantial time andenergy in building infrastructure throughout the company.

Zila also reported it negotiated new agreements with ascorbicacid suppliers, which will lower costs for the raw material and increase thecompanys Ester-C gross margins in the latter half of FY04.