LYCOS RETRIEVER 
Zila Pharmaceuticals
built 214 days ago
Zila Pharmaceuticals revenues increased $1.1 million, or 96%. All of Pharmaceuticals' products contributed to this increase, with ViziLite® generating $0.6 million in revenues, a five-fold increase over the sales generated in the first quarter of the prior year. Peridex® sales increased 25% to $1.1 million and sales at IST were $0.6 million, a 191% increase over the prior year. Zila Nutraceuticals revenue decreased $1.3 million, or 15% in what continues to be a soft market for Vitamin E products and a challenging retail environment for other single supplement vitamin forms.
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Net revenues for Zila Pharmaceuticals for the three months ended January 31, 2005 decreased 30%, to $3.5 million, compared to $5.0 million in the prior year period. Sales for the IST subsidiary (net of intercompany sales) were $115,000 compared to $1.7 million last year, as the contract with its largest customer ended in March 2004. Revenues from our Zilactin(R) line of products increased 2% compared to the prior year, and a change in annualized purchasing patterns by our largest Peridex(R) customer reduced the second quarter's revenue contributions from that product, but we do not expect the change to reduce overall annual Peridex(R) sales to that customer. Peridex sales to U.S. wholesalers ... declined slightly. Sales of ViziLite were nearly five times higher than sales in the comparable prior year quarter. Gross margins for Zila Pharmaceuticals increased to 62% in the second quarter of fiscal 2005 from 57% in the second quarter of fiscal 2004, due primarily to reductions in the cost of sales for Zilactin and to improvements in the margins for ViziLite.
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Net revenues for Zila Nutraceuticals for the three months ended January 31, 2005 increased 14% to $9.8 million compared to $8.6 million for the three months ended January 31, 2004. The revenue gain was driven largely by increased national TV and radio advertising spending, timed to support the launch of Ester-E(R) and the start of the cold and flu season for Ester-C(R). Gross margins for Zila Nutraceuticals increased to 68% for the three months ended January 31, 2005 compared to 60% for the three months ended January 31, 2004. This increase was caused primarily by lower costs of ascorbic acid resulting from lower-cost extended supply arrangements.
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Two measures taken near the end of 1999 positioned Zila for continued expansion through its acquisition strategy for growing its core divisions-its pharmaceutical, nutraceutical, and dental supply businesses. In October, the company sold its Cygnus Imaging unit; then, in December, it sold its Practice Works software division. Cygnus Imaging, with a price tag of about $4.0 million, went to Procare Laboratories, Inc. of Scotsdale, Arizona; while Practice Works, for about $4.65 million, went to InfoCure Corporation of Atlanta. In addition to intensifying its business focus, the combined sales of almost $8.7 million gave Zila new capital for its growth plans.
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Zila Pharmaceuticals introduces Pro-Swabs. They are ideal for pre-injection or post procedural pain. The swabs are non-prescription, non-alcohol, single-use swab applicators and premedicated with a 20 percent Benzocaine solution to deliver fast oral pain relief to specific areas. Each cotton-tipped swab is individually packaged in its own snap-open, hard-plastic carrying tube and are available in dispensers of 50 swabs.
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Total operating expenses for Zila Biotechnology were $2.2 million for the three months ended October 31, 2005, a 7% decrease over the $2.4 million for the three months ended October 31, 2004. Expenses related to the OraTest® clinical program decreased 9%.
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Zila Pharmaceuticals