Enzo Biochem first quarter total revenues increase 2% to $25.7 million

September 24, 2015

Enzo Clinical Labs ("Lab") benefited in the quarter from increased market share and service volume increases in connection with its being named a participating provider for Empire BlueCross BlueShield in the metropolitan New York area. Revenues increased to $12.4 million, compared to $11.1 million a year ago and $11.7 million in the July 2010 quarter, gains of 12% and 6%, respectively. The Lab has increasingly moved to position itself as a provider of molecular diagnostic and other higher-margin esoteric services. Gross margins improved $0.5 million and $1.1 million year over year and sequentially, respectively Uncollectible accounts receivables increased to $1.1 million, from $0.9 million a year ago, primarily due to a change in payer mix which is expected to normalize in the months ahead. SG&A was $4.5 million in the current quarter, a decrease of $0.3 million from the prior quarter and slightly higher year over year as a result of increased benefit costs. Operating loss improved sequentially to $0.9 million from $2.3 million and was comparable year over year.

Enzo Life Sciences' profitability for the quarter improved due to benefits from the plan instituted in July to integrate functions and rationalize workforce levels. Product and royalty and license fee revenues of $13.3 million in the fiscal 2011 first quarter, compared with $14.1 million a year ago, and $13.2 million in the preceding three months. Product revenues declined $0.6 million over the prior year period mainly due to planned reduction in lower margin distributed products. Gross profit margin improved to 65% in the October 2010 quarter, compared with 64% a year ago and 59% in the July 2010 quarter, after adjusting for an inventory charge of $1.3 million. Operating income amounted to $3.0 million, compared to $2.1 million a year ago, and $1.6 million in the preceding fourth quarter of fiscal 2010, after adjusting for the inventory charge and severance.

SOURCE Enzo Biochem, Inc.,