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Enzo Biochem Q2 Revenues Up 7 Percent

This article has been updated to include Enzo's R&D and SG&A costs for the quarter.

NEW YORK (GenomeWeb) – Enzo Biochem reported after the close of the market Monday that its second quarter revenues rose 7 percent year over year.

For the three months ended Jan. 31, the company reported revenues of $26.3 million, up from $24.6 million in Q2 2015.

Revenues from the clinical labs segment rose 8 percent to $18.8 million from $17.5 million a year earlier. The increase reflects the increased importance of higher margin molecular diagnostic tests, particularly in women's health, the company noted. Revenues from the life sciences business unit rose 6 percent to $7.0 million from $6.6 million in Q2 2015. Revenues from royalties and license fees fell slightly to $440,000 from $459,000.

"Our quarterly results were very strong as we continue to build on our mounting success and importance of our molecular diagnostic-related activities, both on the development side and in clinical usage," Enzo President Barry Weiner said in a statement. "We are progressing on schedule in the development area, with new MDx tests expected to be introduced later this year. We are highly encouraged by the acceptance of our products and their performance in the marketplace, and we anticipate even greater penetration in the market as additional test development is completed and approval is obtained."

Enzo reported a Q2 net loss of $1.1 million, or $.02 per share, compared to net income of $6.8 million, or $.15 per share a year ago. On a conference call with analysts following the release of the earnings, Weiner said the company was "moving closer to profitability," and noted that Enzo is debt free, apart from its lease obligations.

He also said that Enzo's client base is growing because of the company's commitment to providing the best service of any labs in its region. Further, he noted, Enzo is gaining market share in its physician base, and is expanding as its market share changes to include relationships with institutional care providers such as hospital-based labs.

R&D expenses for the quarter fell 44 percent to $483,000 from $861,000 a year ago. Q2 SG&A costs also dipped slightly to $11.2 million from $11.3 million in Q2 2015. 

The firm ended the quarter with $62.4 million in cash and cash equivalents.

Weiner told analysts that he expects the company will receive approvals for several of its diagnostics from the New York State Department of Health this year, and that Enzo's complete women's health line of products will be released sometime this summer.