3rd qtr net losses widen at Zila

Posting results for its third fiscal quarter ended April 30, US pharmaceutical and nutraceuticals firm Zila said that its net loss had increased to $1.6 million, or $0.03 per share, up from $639,000, or $0.01, in the like, year-earlier quarter. The loss incurred reflects $1.1 million in net increased R&D investment in connection with the company's OraTest clinical program, the development of Ester-E (a nutraceutical product) and a non-cash charge associated with the removal of restrictions on certain shares related to its acquisition of ViziLite.

Revenue during the quarter grew to $12.7 million, from $12.4 million. When sales of the discontinued saw palmetto oil product line are removed from the prior year's total, net turnover increased 7% for the group. Zila also reported $716,000 in additional investment for marketing and selling expense as the firm continued to drive current and future growth.

Earnings before interest, taxes, depreciation and amortization was a loss of $784,000 compared to $75,000 for the third quarter of fiscal 2003. Cash and cash equivalents remained essentially constant at $12.4 million, including restricted cash of $500,000 million.