While the global financial crisis takes its toll on some sales, Blis appears secure for the next three years, as long-suffering shareholders await a turnaround and move toward profitability.
Blis, whose flagship oral health product is Blis K12, reported revenue was up 31% to $1.1 million, including revenue primarily from Nestle for contract development agreements which was up 16% to $212,000 - part of a total $623,000 received from Nestle since a 2007 agreement.
However, Blis product sales were down 7% to $609,000, with New Zealand revenue down 28%, there was a slow start to the the Irish market because of the financial crisis and in Australia sales declined "significantly", down almost 80% from $354,000 to $74,000, chief executive Barry Richardson said in a statement to the stock exchange yesterday.
Blis K12 is a natural bacteria, promoted as a probiotic prevention of upper airways infection, bacterial sore throats, tooth and gum disease and chronic bad breath, which could be applied in powder, lozenges, drink and potentially in yoghurt.
ABN Amro Craigs broker Chris Timms said $3.5 million raised recently was the "saving grace" for Blis shareholders, as the company would be sufficiently capitalised for three years and could concentrate on its research, development and marketing, and not have to worry about capital.
"The biggest goal for them will be getting their product into foods," Mr Timms said.
In the meantime, shareholders had to "keep the faith" that Blis was able to turn its research and marketing into generating profits in the future.
Mr Richardson said three products had been launched in the United States through a deal with Frutarom and Blis expected to launch several ingredient products in the US this year.
He said Blis had made "considerable progress"' during the past 12 months in "key" product development, including an improved fermentation process to stabilise Blis K12 for use in more products.
"Of equal significance have been studies on yoghurt and beverage applications demonstrating, in the case of yoghurt products, that Blis K12 is stable in the product," Mr Richardson said.
In mid-March the underwriter for a preference share issue by Blis, Edinburgh Equity Nominee, which is operated by Otago businessmen Eion Edgar and Tony Offen, allowed Blis to reach its target of raising $3 million, following $500,000 raised earlier.
"The company remains committed to a strategy of balancing the longer-range goal of good science and intellectual property development, with the near-term objectives of achieving positive cash flow through sales revenue and commercial success," Mr Richardson said.
The US was "at the forefront" of marketing activities for the past 12 months and Blis anticipated it would have "finished product manufacturing capability" in the US "soon" to meet the increasing demand, he said.
