Zila -- manufacturer of the Vizilite Plus oral cancer detection product -- reported lower net revenues for its first fiscal quarter of 2009.
For the period (end-October 31), net revenues were $9.6 million, down 16% from $11.4 million for the first quarter of 2008. However, net loss for the quarter was $2.8 million, down from a net loss of $4.9 million for the same quarter a year ago.
"While cost-reduction measures significantly lowered operating expenses, the recent economic downturn negatively impacted revenues in the fiscal 2009 first quarter," said David Bethune, chairman and CEO of Zila, said in a press release. "Our business is sensitive to general economic conditions. Accordingly, dental offices started deferring purchases of equipment, such as scalers, and patients postponed discretionary services, including oral cancer screening. Given that weak economic conditions are expected to continue, we are working to further reduce expenses over the next several quarters."
During the fiscal 2009 first quarter, the company added 800 new ViziLite Plus customers and certified 193 dental practices, bringing the total number of certified ViziLite Plus practices in the U.S. to 3,515, Bethune said. Reorders of ViziLite Plus, however, declined 10% due to decreased adult patient traffic, he added.
