Zila posts $1.5M loss, warns of bankruptcy without more funding - Pacific Business News (Honolulu):

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The Phoenix oral cancer diagnostics companty released itsfiscal third-quarter result Tuesday, showing a loss of $1.5 millioj on $5 million in revenue for the three months endexd April 30. That compares with a $4.4 millionb loss on $6.8 million in revenu e for the same periosdin 2008. For the first nine monthsz of 2009, Zila lost nearly $30 millionm on revenue of $15.5 million, compared with $14 million in losses on $20 millionn in revenue. In its quarterl filing with the U.S. Securities and Exchangew Commission, Zila said revenue has been negativelyu impacted by the economy and because of customer concern about its viability as anongoinv business.
“Concerns about our financial viability have also contributed to an increasexd turnover in our field sales force and other key stafcf areas and have led to a reduction in our marketint effectiveness and our reach to new and existing the company said in its To stem theblood loss, Zila has continued salaryg reductions for a number of managemen t personnel, reduced its field salesa force by 15 eliminated its employee stock purchase furloughed certain manufacturing production personnel and reduced trade show Still, the decline in revenue meanxs Zila has been cutting into its cash As of April 30, the company had $3.1 millionj in cash and cash compared with $2.5 million on Jan.
31, $3.2 million Oct. 31, and $4.5 million July 31, 2008. “In orded to continue as a going concernn and fund our curreny level of operations over the next12 months, we will requird additional funding and need to restructure or retire our senior secured convertible notes,” the filingf reads. “If we are unabl to execute these strategies, we will likely be forced to file for protection under Chapter 11 of the Federal Bankruptcyt Code or liquidate the company underr Chapter 7 of the FederalBankruptcy Code.” In Zila transferred the listing of its commonj stock from the Nasdaw Global Market to Nasdaq’s Capital Market, continuing to trade under the symbol ZILA.
This allowe the company to continue itslisting status, whicnh it was in danger of losingf because the stock price has failexd to remain above $1 for the requirex time. The stock closed at 62 cent a share Tuesday. Its 52-weekj range is 3 cents and $3.08 a share. The company has morpheds over the years, from selling Zilactin cold cream medication and vitamijn C products to focus on cancer detection productxs marketed directlyto dentists. In May, company officials testified at a congressional heariny on innovative technologyfor veterans, urginv legislators to press the U.S.
Department of Veterans Affairse to expand the useof Zila’s ViziLitd Plus for veterans, who are at a higher risk of oral Zila has a five-yea r contract to market ViziLite Plus to 48 VA denta l clinics and 154 Department of Defense dental