Enzo Biochem reported a marginal increase in revenues and a dramatically recuced loss for fiscal 2013, as it continues to narrow its business focus to esoteric testing. The New York-based firm reported a net loss for the fiscal fourth quarter, ending July 31, of $3.1 million on revenue of $23.3 million. Although revenue was down more than 13 percent compared to the $26.4 million reported for the fourth quarter of fiscal 2012, it beat the consensus of analysts, which had projected $22 million. The company’s loss was also down dramatically, to $3.1 million from $27.1 million. For fiscal 2013, Enzo reported a net loss of $18.2 million on revenue of $93.7 million. In fiscal 2012, it lost $39 million on revenue of $103.1 million. Clinical laboratory operations are the largest component of Enzo’s business, comprising $14 million in revenue for the fiscal fourth quarter and $55.9 million for the fiscal year, or about 60 percent of the total. In 2012, it comprised about 57 percent of total revenue. “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,” said […]
Enzo Biochem reported a marginal increase in revenues and a dramatically recuced loss for fiscal 2013, as it continues to narrow its business focus to esoteric testing.
The New York-based firm reported a net loss for the fiscal fourth quarter, ending July 31, of $3.1 million on revenue of $23.3 million. Although revenue was down more than 13 percent compared to the $26.4 million reported for the fourth quarter of fiscal 2012, it beat the consensus of analysts, which had projected $22 million. The company’s loss was also down dramatically, to $3.1 million from $27.1 million.
For fiscal 2013, Enzo reported a net loss of $18.2 million on revenue of $93.7 million. In fiscal 2012, it lost $39 million on revenue of $103.1 million.
Clinical laboratory operations are the largest component of Enzo’s business, comprising $14 million in revenue for the fiscal fourth quarter and $55.9 million for the fiscal year, or about 60 percent of the total. In 2012, it comprised about 57 percent of total revenue.
“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,” said company president Barry Weiner. He also observed that the company’s long-term focus, “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.”
Provisions for uncollectible accounts were also reduced by 59 percent in the fourth quarter compared to a year ago, and 35 percent compared to the third quarter of fiscal 2013.
Shortly after reporting earnings, Enzo announced that it has entered into an agreement to market Sequenom’s MaterniT21 PLUS test in the northeastern United States. It also announced a collaboration with an Italian company, DiaSorin, to use some of its proprietary diagnostic tools for lab results.
One firm that follows the company, Jefferson Research, upgraded its rating of Enzo from hold to buy not long after the earnings report was released.
Takeaway: Enzo Biochem’s focus on diagnostic services could begin to pay dividends in the near future.
