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Enzo Biochem Q4 Revenues Improve 7 Percent

NEW YORK (GenomeWeb) – Enzo Biochem said on Thursday that revenues in its fiscal fourth quarter rose 7 percent year over year.

For the three months ended July 31, the firm posted a total of $24.9 million in revenues, up from $23.3 million in the year-ago quarter. Clinical laboratory service revenues, generated from the Enzo Clinical Labs segment, were up 10 percent to $15.4 million from $14.0 million a year ago, while product revenues, represented by the Enzo Life Sciences segment, increased 5 percent to $8.4 million from 8.0 million. Royalty and license fee income retreated 23 percent year over year to $1.0 million from $1.3 million.

The company recorded a net loss of $3.2 million, or $.07 per share, in the fourth quarter, compared to a net loss of $3.1 million, or $.08 per share, in the year ago period. On a non-GAAP basis, Enzo had a net loss of $.06 per share.

Enzo said its R&D costs decreased 33 percent year over year to $600,000 from $900,000, while operating expenses rose 5 percent. Its legal expenses more than doubled to $2.2 million from $1.0 million a year ago due to increased litigation surrounding its intellectual property.

In June Enzo said that it had reached an agreement with PerkinElmer to settle a patent dispute stretching back more than a decade. PerkinElmer is paying Enzo $7 million as part of the deal.

For full-year 2014, Enzo reported $95.9 million in total revenues, a 2 percent increase from $93.7 million in full-year 2013. Clinical laboratory service revenues rose 5 percent to $58.7 million from $55.9 million, and product revenues inched up a fraction of 1 percent to $32.8 from $32.5 million. Royalty and license fee income slipped 17 percent to $4.4 million from $5.3 million.

The company said that its net loss for 2014 narrowed to $10.0 million, or $.23 per share, from $18.2 million, or $.46 per share, in 2013. On a non-GAAP basis, Enzo's loss for the recently completely year was $.26, compared to a net loss of $.46 in 2013.

"This past year has been one of solid progress for Enzo, culminating with notably improved results in the final quarter that we are confident point to further gains in the new fiscal year now underway," Enzo President Barry Weiner said in a statement. "Our focus is on completing our transformation, by further reducing overhead, increasing efficiency, tightening controls, broadening markets, and adding capabilities in high-margin molecular diagnostics to increase Enzo's share of the rapidly growing marketplace."