Enzo Biochem, Inc. (NYSE:ENZ) today reported operating results for the three months ended April 30, 2011, including:
- EBITDA (earnings before interest, taxes, depreciation and amortization, a non-GAAP measure) improvement of 73%, or $2.4 million;
- A 9% increase in total revenues, reflecting a 28% increase in Enzo Clinical Lab revenues for the period;
- Improved margins at both Enzo Labs and Enzo Life Sciences, resulting in a 17% increase in gross profits;
- A 54% reduction, or $2.5 million improvement, in the quarter’s net loss as compared to a year ago;
“As our third quarter results reflect, our efforts to date to better integrate our Clinical Lab and Life Sciences activities, increase market share, reduce costs and enhance productivity are starting to yield very tangible results,” said Barry Weiner, President. “These achievements are being realized as we continue to position Enzo for the new and increasing shifts in medical diagnostics to personalized medicine and gene-based, or molecular testing, in addition to the development of our own laboratory developed tests and realize the planned benefits from our cost management plan.”
Third Quarter Operating Results
Total revenues increased to $25.8 million, up from $23.7 million in the preceding January 2011 quarter and from $23.8 million in the corresponding year-ago period. Product revenues were up almost 7% sequentially, though down a slight 1% year over year, while Clinical Lab revenues at $13.8 million, increased 12.5% and 28%, respectively. Royalty and licensing fee income, based on current payments received, declined to $1.1 million, from $1.2 million and $1.9 million sequentially and year-over-year, respectively. Reduced product sales is indicative of the Company’s program to increase direct sales and rationalize certain distribution business, while the Clinical Labs business benefited from organic growth as well as the previously announced major new payer contract, which also has enabled Enzo to tap into a wider network of physicians not previously serviced.