During the past year Clinical Labs has extensively updated much of its core operational instrumentation, including the recent addition of robotic specimen handling, and increased its collaborative and internal development program to offer client physicians more genetic and other esoteric assays carrying wider margins. Owing to these and other steps, including reduced staffing costs and other efficiencies, Clinical Labs was cash flow positive in the July 2013 quarter, and was able to reduce uncollectable receivable provisioning by roughly 35% and 59%, respectively, quarter over quarter and the year ago quarter.
Enzo Life Sciences’ fourth quarter revenues totaled $9.3 million, approximating that of the April 2013 quarter and compared with $10.6 million a year ago. Excluding royalties and licensing income, product sales were $8.0 million, about 4% lower than the April quarter and about $0.9 million less than the fourth quarter of 2012. However, due to the benefits of a more centralized and efficient operation, gross margin was $5.2 million, compared with $5.0 million sequentially and $5.4 million a year ago. Gross profit, respectively, was 56%, 54% and 51%. Operating income amounted to $1.3 million, up from $0.5 million quarter over quarter and $0.3 million, excluding the aforementioned impairment charge, a year ago. Efforts internally to promote new products, focus on higher margin products while reducing overall marketing, developmental and manufacturing expenses offset an industry-wide slowdown among public and private research laboratories.
The Company will conduct a conference call on October 16, 2013 at 8:30 AM ET. The call can be accessed by dialing 1-888-459-5609. International callers can dial 1-973-321-1024. Please reference PIN number 77517330. Interested parties may also listen over the Internet at http://phoenix.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=94391&eventID=5035193.To listen to the live call on the Internet, please go to the web site at least fifteen minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available approximately two hours after the end of the live call, through midnight (ET) on October 30, 2013. The replay of the conference call can be accessed by dialing 1-800-585-8367, and when prompted, use PIN number 77517330. International callers can dial 1-404-537-3406, using the same PIN number. NON-GAAP Financial Measures To comply with Regulation G promulgated pursuant to the Sarbanes-Oxley Act, Enzo Biochem attached to this news release and will post to the Company's investor relations web site ( www.enzo.com) any reconciliation of differences between non-GAAP financial information that may be required in connection with issuing the Company's quarterly financial results. The Company uses EBITDA, as a measure of performance to demonstrate earnings exclusive of interest, taxes, depreciation and amortization. Adjustments to EBITDA are for items of a non-recurring nature and are reconciled on the table provided The Company manages its business based on its operating cash flows. The Company, in its daily management of its business affairs and analysis of its monthly, quarterly and annual performance, makes its decisions based on cash flows, not on the amortization of assets obtained through historical activities. The Company, in managing its current and future affairs, cannot affect the amortization of the intangible assets to any material degree, and therefore uses EBITDA as its primary management guide. Since an outside investor may base its evaluation of the Company's performance based on the Company's net loss not its cash flows, there is a limitation to the EBITDA measurement. EBITDA is not, and should not be considered, an alternative to net loss, loss from operations, or any other measure for determining operating performance of liquidity, as determined under accounting principles generally accepted in the United States (GAAP). The most directly comparable GAAP reference in the Company's case is the removal of interest, taxes, depreciation and amortization.
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