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Enzo Biochem's Q3 Revenues Drop 13 Percent

NEW YORK (GenomeWeb News) – Enzo Biochem reported after the close of the market Monday that its third-quarter revenues fell 13 percent year over year as sales from its clinical lab services and products both declined.

The New York-based life science reagents and diagnostic testing firm reported total revenues of $22.6 million for the three months ended April 30, down from $25.9 million for the third quarter of 2012. Its clinical lab services revenue declined 12 percent year over year to $13.4 million from $15.2 million, while its product revenue fell around 14 percent to $8.3 million from $9.6 million. Its revenue from royalty and license fees dropped to $949,000 from $1.1 million.

Enzo posted a net loss of $5.8 million, or $.15 per share, compared to a net loss of $3.4 million, or $.09 per share, for Q3 2012.

"The fiscal third quarter operating results showed modest sequential improvement," Enzo President Barry Weiner said in a statement. "We believe the launch of a number of new, esoteric tests, which were delayed due to the timing of laboratory inspections and that are now being marketed, will be a catalyst for improved fourth quarter results. This higher margin revenue should help to offset lowered reimbursement rates from Medicare and commercial payers."

Enzo finished the quarter with $5.6 million in cash and cash equivalents and $9.6 million in working capital.

Enzo also announced today that it has arranged an $8 million senior secured revolving line of credit with Healthcare Finance Group that may be increased to $12 million. The firm said that it will use the facility for working capital and growth purposes.

In Tuesday morning trade on the New York Stock Exchange, shares of Enzo were down 6 percent at $2.14.