Enzo Biochem Reports Fourth Quarter Results

Enzo Biochem, Inc. ENZ today reported results for the fiscal fourth quarter, consistent with our announcement on September 20, 2010, and for the year ended July 31, 2010.

In the fourth quarter of fiscal 2010, compared to a year ago:

• Aided by gains at Enzo Clinical Labs, total revenues advanced to $24.9 million, up $0.4 million, or 1.7%.
• Gross profit declined $0.6 million to $10.2 million, which included a charge of approximately $1.3 million related to rationalization of low-margin products at Enzo Life Sciences. Without that charge, gross profit would have approximated $11.5 million, compared to $10.8 million a year ago. Gross profit margin, adjusted for the charge, would have equaled 46%, instead of 41%, as reported, as compared to a gross margin of 44% last year.
• Selling, general and administrative expenses (SG&A), as a percentage of revenues, improved to 45.1%, after adjusting for severance of $0.3 million, from 47.6%, reflecting continuing efforts to manage costs.

The reported net loss for the period of $5.5 million would have been approximately $1.8 million without the inventory charge and one-time severance costs of $0.5 million for the workforce realignment, or a $3.7 million net loss, as compared to a $4.9 million net loss in the corresponding year-ago period, after adjusting for an inventory purchase accounting charge of $0.4 million. On a fully diluted per share basis, the net loss amounted to $0.15 per share, of which $0.05 was due to the above charges, compared to $0.14 per share a year ago, of which $0.01 was due to the inventory adjustment.