Enzo Biochem, Inc. (NYSE:ENZ) today reported results for the fiscal first quarter ended October 31, 2012.
Recent highlights included:
- Favorable patent infringement ruling in which the court awarded the Company $48.5 million and that could result in court awarded interest costs that could add multi-millions more.
- The quarterly net loss was reduced by over $0.8 million, despite business disruption from Hurricane Sandy and increased legal costs associated with the patent trial.
- Enzo Life Sciences’ operating income increased by $1.6 million, compared to a year ago loss.
- Despite the storm-related loss of business, Enzo Clinical Labs revenues were up 7%, nearly two times the industry average growth.
- Net cash used in operations was reduced by $0.8 million year-over-year to $1.5 million.
“Fiscal 2013 got off to a solid start, despite substantial, though temporary, costs of Hurricane Sandy on Enzo Clinical Labs during the final three days of the period. We are making noteworthy progress and have yet to fully benefit from the anticipated $6 million in annual cost savings that will result from last year’s realignment. We anticipate that new products, operating efficiencies, enhanced marketing efforts and improved cash utilization will drive stronger operating results as the year develops,” said Barry Weiner, Enzo President.
Operating ResultsSharply diminished specimen counts due to Hurricane Sandy severely impacted Enzo Clinical Labs, costing it about $0.7 million in revenue, although the Lab maintained full capabilities both during and immediately after the storm. Combined with the continued product rationalization program at Enzo Life Sciences, with the emphasis on higher margin sales, total revenues for the quarter were nonetheless on a par with year-ago results, totaling $25.6 million, compared to $25.8 million last year. Gross margins remained unchanged year over year, and gross profit as a percentage of revenues equaled 46% for both periods.