Enzo Biochem, Inc. (NYSE:ENZ) today reported results for the fiscal second quarter and six months ended January 31, 2013.
- Jury declares Life Technologies infringed Enzo Biochem patents and awards Enzo $48.6 million
- Company Reports Progress on Technology Platforms; Anticipates New Lab-Developed Tests Aimed at Women’s Health Market;
- Superstorm Sandy Aftermath Interrupts Clinical Labs Top-Line Growth.
“Although Hurricane Sandy significantly impacted our Clinical Lab business during the second quarter, our restructuring efforts to streamline operations and deliver improved financial results remain firmly on track,” said Barry Weiner, President. “The storm delayed patient visits to doctors, resulting in lower specimen collection and delayed new product approvals during the quarter, which we estimate reduced revenue at Clinical Labs by $2.2 million. We expect Clinical Labs to return to the pattern of growth it had previously demonstrated during the upcoming quarters. In addition, we anticipate many of our newly introduced diagnostic tests should enhance results in the coming months.
“Our investment in protecting our intellectual property, which involved higher legal expenses during the second quarter, resulted in a favorable $48.6 million verdict that we believe positions the Company well, in advance of litigation surrounding even more significant patent infringement. Currently, the Company has numerous active litigations against many of the leading life sciences and diagnostics companies, which we believe have infringed upon our intellectual property through sales of products that have collectively generated billions of dollars of revenue. The majority of these recent cases are currently being handled on a contingency basis by one of the leading law firms in this area. Meanwhile, while some of the markets for our life sciences products remain challenging, we continue to tightly manage expenses to generate improved bottom-line results.”
Second Quarter Results
Revenues for the second fiscal quarter were $22.2 million, compared with $25.0 million a year ago. Operating expenses declined $0.5 million to $28.2 million, reflecting a reduction in selling, general and administrative and research and development expenses, partially offset by increased legal expenses in connection with the Life Technologies litigation. The net loss for the period was $(5.7) million or $(0.14) per diluted share, compared with $(4.2) million or $(0.11) per diluted share in the same period a year ago. EBITDA loss was $(4.7) million as compared to $(3.0) million in the year ago period.