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Enzo Q4 Revenues Narrow 12 Percent

NEW YORK (GenomeWeb News) – Enzo Biochem reported after the close of the market on Tuesday a 12 percent drop in total revenues for its fiscal fourth quarter.

For the three months ended July 31, the company took in $23.3 million in revenues, down from $26.4 million a year ago. Clinical laboratory services shrank to $14.0 million from $15.9 million, while product revenues retreated to $8.0 million from $8.9 million. Royalty and license fee income was down to $1.3 million from $1.7 million.

The firm's net loss for the quarter narrowed to $3.1 million, or $.08 per share, from a net loss of $27.1 million, or $.69 per share, a year ago.

"Despite continued weakness in the academic and pharmaceutical-based research and development markets, our program at Life Sciences to improve efficiencies and emphasize higher margin product sales is paying off," Enzo President Barry Weiner said in a statement. "Clinical Labs continues to add new diagnostic procedures while also improving collection efficiencies, as reflected in a 35 percent quarter over quarter improvement in the provision for uncollectible receivables.

"The vagaries of the insured healthcare market remain in flux, as reimbursements both via Medicare and among private insurers tightened," he added. "Our strategy, in addition to improving productivity and reducing overhead, has been to move increasingly to higher end esoteric diagnostics through both collaboration and in-house developments, a strategy that is reflected in the unit's positive cash flow in the fourth quarter."

For full-year Fiscal 2013, total revenues narrowed 9 percent to $93.7 million, compared to $103.1 million in Fiscal Year 2012. Clinical laboratory service revenues were down to $55.9 million from $59.4 million. Product revenues decreased to $32.5 million from $37.7 million, and royalty and license fee income was down to $5.3 million from $6.0 million.

Its net loss for FY 2013 fell to $18.2 million, or $.46 per share, compared to a net loss of $39.3 million, or $1.01 per share, a year ago.

Enzo finished the quarter with $9.0 million in cash and cash equivalents.

In August, the company filed a shelf registration to separately offer up to $50 million of its securities and another $18 million of its common stock. The same month, a federal court upheld a jury verdict which awarded Enzo $48.6 million after finding that Life Technologies infringed Enzo's patents.

"Much of what we have accomplished in Fiscal 2013 has been geared toward positioning Enzo Biochem toward capitalizing on its strong intellectual property portfolio through commercialization of diagnostic technology and products based on proprietary platforms such as AmpiProbe," Weiner said.

"We have continued to strengthen our translational diagnostic capabilities, increase the menu of both products and services in the high-value molecular and esoteric testing space, and have concentrated the company's efforts around serving the diagnostic marketplace with high performing, cost-effective products that are keys in today's challenging healthcare environment," he said.