Enzo Biochem, Inc. (NYSE: ENZ) today reported improved results for the second fiscal quarter ended January 31, 2011, the result of recent programs to reduce expenses, consolidate activities and enhance operations.
Total revenue for the second quarter of fiscal 2011 increased 2% to $23.7 million, from $23.2 million a year ago, primarily as a result of higher revenue at Enzo Clinical Labs ("Labs"), partially offset by lower product revenue and reduced royalty and licensing fee income at Enzo Life Sciences.
R&D expenses were $2.0 million compared to $2.3 million in the January 2010 quarter. SG&A declined $2 million to $11.5 million, and as a percentage of revenue down 10% from a year ago, with $0.9 million resulting from the Company's cost reduction activities. Overall operating expenses, including R&D, SG&A, legal and provision for uncollectible accounts were $15.9 million, a decline of 8% from last year’s second quarter. The net loss decreased more than 44% to ($5.7) million or ($0.15) per diluted share from the corresponding year-ago period of ($10.3) million, or ($0.27) per diluted share. After adjusting for a legal settlement and related costs of $3.7 million in the year ago period, the net loss improved by more than 14%. EBITDA improved by more than $4.5 million and, adjusted for the settlement, improved by $0.8 million to ($4.5) million.
The Company's financial condition remained strong, with working capital of $37.5 million. As of January 31, 2011, cash and cash equivalents, plus short term investments in US Treasury Bills, totaled $30.8 million. For the six months ended January 31, 2011, the Company utilized $2.2 million of cash in operations, an improvement of $1.5 million compared to the same year ago period, due to improved operating results. The Company expects further reductions in cash used in operations throughout the year.“We continue to see improvements in operating results, reflecting the significant costs we have taken out of our operations and efficiencies in operating our businesses,” said Barry Weiner, President. “Despite challenges Enzo faced during this quarter such as higher legal expenses resulting from proxy-related costs, as well as lowered royalty income, the Company reported improved operating results.
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