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Zila, Inc. F4Q08 (Qtr End 07/31/08) Earnings Call Transcript

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2008-10-06 14:45:32.0

Tags: Financial, Call Transcript, Arkansas, Earnings, Sales Team, Zila Inc., Sales Strategy, Sales Force Management, Financial Accounting, Sales, Finance, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from the line of Marc Robins - The Robins Group

Marc Robins - The Robins Group

Let’s talk about the Arizona facility there in Phoenix, any thought of closing that down and moving things to Arkansas?

David Bethune

We are going to close this particular corporate headquarters down and move but we’re not going to move to Arkansas, we’re going to move down the street so to speak in an effort to again save a little bit of money and have a place for our headquarters to operate. In fact, what we’re really doing is going to try and consolidate somewhat especially in the financial area and some of our opportunities will exist to consolidate up here in some regards in our financial structure.

Marc Robins - The Robins Group

So it’s just going to be general savings on SG&A then.

David Bethune

To some degree, yes.

Marc Robins - The Robins Group

How much capacity do you have with your sales team? I take it that now all 75 folks are well trained and getting out there and spreading the word. How do you feel they are, what level of confidence do you feel they’re at now?

David Bethune

Well I think they’re growing in experience. Obviously they’re a young organization. There’s been a fair number of young folks that we’ve hired in the last six or seven months and they’re in the process of being trained and kept up to training in a way and we’ve gotten a new program. Wendy [Nugent] our marketing director has done a fine job in helping us do that and put, we’ve done some adjustments in that as time goes on as we learn.

We’re learning that more and more, there is perhaps a little bit more of a scientific approach that one would take with our product ViziLite Plus then we have. Not that we haven’t had a good science behind it but to strengthen the scientific area, technical skill set of our reps is very important. But there’s nothing that’s going to replace good experience and repeated effort of our sales reps to gain the knowledge necessary on the job to improve their performance.

Marc Robins - The Robins Group

It’s too early for Zila to be, the thing that’s so attractive about Zila besides ViziLite is the fact that you have an exceedingly well trained and honed sales team, detailed team and in the dental arena that’s somewhat unusual, in the pharmaceutical arena that’s somewhat common place. Unlike the distributors you could take other outside sophisticated products and begin to sell them through your channel and it’s too early for that to occur.

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