Enzo Biochem Inc. (NYSE:ENZ) today reported results for the fiscal fourth quarter and year ended July 31, 2013. On a sequential basis, as compared to the preceding third quarter, unless otherwise indicated, Enzo reported:
- Total revenues increased 3% to $23.3 million.
- Gross margins rose 4%, to $9.4 million, and gross profit, as a percentage of revenues, increased to 41%, from 40%.
- Total operating expenses, net of legal and impairment charges, decreased by more than $7 million year over year, a decline of more than 12%.
- Operating loss improved from the sequential quarter by $2.2 million and $0.9 million a year ago, net of impairment charges.
- Net loss improved by 46% to ($3.1) million.
- Cash used in operations was $1.5 million, an improvement of 62%.
“Much of what we have accomplished in Fiscal 2013 has been geared towards positioning Enzo Biochem towards capitalizing on its strong intellectual property portfolio through commercialization of diagnostic technology and products based on proprietary platforms such as AmpiProbe™” said Barry Weiner, President of Enzo. “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.”
“We believe the value of this intellectual property was demonstrated by the jury award of $48.5 million, prior to any interest and damages award, through the favorable verdict Enzo received in the Life Technologies case, and hopefully will be shown in the upcoming litigation in New York Federal District Court.”
“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. Clinical Labs continues to add new diagnostic procedures while also improving collection efficiencies, as reflected in a 35% 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. 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.