Struggling to combat the global economic downturn and customer concerns about its long-term viability, Zila reported a net loss of $1.5 million on revenues of $8.5 million for the third quarter of 2009 (end-April 30). This compares to a net loss of $4.5 million on revenues of $11.2 million in the same quarter a year ago.
"During the third quarter, revenues remained steady, and our cash position increased compared with the previous quarter," said David Bethune, Zila chairman and CEO, in a press release. "Moreover, as a result of continued cost cutting throughout the organization, we narrowed our loss from operations to approximately $328,000 from approximately $1.1 million last quarter, excluding a $23.2 million noncash impairment charge recognized last quarter."
The company has stated that to continue as an ongoing business and avoid bankruptcy, it will require additional funds to restructure or retire its Senior Secured Convertible Notes due in July 2010 and grow its business. Efforts to seek additional funding have included discussions with several potential financial and strategic investors and with the holders of the notes.
As a result of the uncertainly surrounding the company's ability to repay the notes when due as discussed more fully in its Form 10-Q for the quarter ended April 30, 2009, the company has substantial doubt about its ability to continue as a going concern.
Net revenues for the nine-month period were $26.6 million, compared with $33.2 million for the first nine months of 2008. Net loss was $29.6 million, compared with $14.1 million, for the comparable nine-month period a year ago.
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