Enzo Biochem Inc. (NYSE:ENZ) today reported across-the-board improved results for the fiscal second quarter ended January 31, 2014 as compared to the corresponding year-ago period.
- Total revenues improved 3%, with gains in Life Science and Clinical Labs, despite inclement winter weather that impacted laboratory revenues.
- Enzo Life Sciences operating results showed benefits of strategic realignment, including its emphasis on targeted markets with higher margin products.
- Enzo Clinical Labs posted operating gains as a result of its emphasis on greater number of high-value assays and new alliances, as well as reduced accounts receivables uncollectible provisions from better collection experience. New alliances are expanding Clinical Labs’ range of esoteric and molecular diagnostics, particularly in women’s health area, a growing specialty for Enzo.
- Gross margin increased by 13%, with both Life Sciences and Enzo Clinical Labs segments growing by double-digits.
- Total operating expenses were reduced by 6%, due to across the board expense reductions.
- Net loss improved by $2.1 million, declining 37%, while EBITDA loss fell by 46%.
- Cash was essentially unchanged from the prior quarter ended October 31, 2013.
“Enzo Biochem’s second fiscal quarter displayed strong resiliency and growth,” said Barry Weiner, President. “The overall improvement was achieved despite the continuing challenges in healthcare, the cross winds in the regulatory sector that continue to buffet our industry and adverse weather that reduced patient volume. In particular, weather in the second quarter probably cost Clinical Labs in excess of $500,000 in revenue. Nonetheless, the transformation of Enzo continues, as we increasingly and successfully reposition Life Sciences utilizing more focused marketing programs directed at higher margin products, and as our Clinical Labs enjoys and benefits from greater recognition from a growing roster of women’s health and other diagnostics tests, along with heightened efficiency at both units. Our AmpiProbe™ platform is being designed to provide a next-generation of molecular-based diagnostics that can impart higher sensitivity at lower cost than currently available assays.