On Tuesday, Enzo Biochem, Inc. (NYSE: ENZ) stock moved green with +2.64% in trading session and finally closed at $4.66. The firm after opening the first trading session at $4.54 Over the one year trading period, the stock has an above price of $11.50 and it’s below is recorded at $3.95. The company has a market cap of $219.793M. The company most recent volume stood at 111,590 shares as compared to its average volume of 144,919 shares.
Enzo Biochem Inc. (NYSE: ENZ) stated results for the third fiscal quarter and nine months ended April 30, 2018, in addition to noting important progression of its planned plan aimed at providing cost-effective, high performing and easily adaptable products and services to hospital and independent laboratories.
Third Quarter Results
Total revenues in the quarter amounted to $25.6M or 5% lower than previous year Because of a decrease in services revenue. As noted above, services revenue was influenced in the third quarter by the loss of a large medical practice that internalized genetic testing ordering of about $1.9M, storm related weather in the Northeast that influenced operations about $1.0M, and an accounts receivable reserve adjustment of $0.5MBecause of a commercial payor payment practice. Despite these items, core service testing volume increased nearly 2%, or $2.0M, with growth in genetic and esoteric testing. Product revenue was slightly ahead of previous year at $7.4M as stated sales increased in Europe and stabilized in the U.S. The current quarter’s products revenue was influenced favorably by foreign currency movements of about $0.2M.
Gross margins in the quarter were 43% contrast with 45% in the previous year period. Total operating expenses were $13.9M contrast to $12.4M, a raise of $1.5M or 12%. Legal expenses were $1.7M and accounted for $1.1M of the increase in operating expenses together with marketing and sales related expenses of $0.3M in advance of launching new sales initiatives. The increase in legal expenses was principally related to the New York litigation with Roche, where Enzo is the plaintiff.
The GAAP and Non-GAAP net loss was $3.0M or $0.06 per share contrast to breakeven results or $0.00 per share in the previous year period.
EBITDA (earnings before interest, taxes, depreciation and amortization) and Adjusted EBITDA was a loss of $2.4M, contrast to EBITDA of $0.7M in the previous year period.
Services revenues were $18.1M versus $19.6M in the previous year period as a result of the aforementioned specific items offset by growth in testing volume. Gross margins declined to 39.4%, from 42.1% a year ago. Operating income amounted to $0.5M, contrast to $1.5M, a year ago. Noteworthy was steady growth in tests using the newly installed AmpiProbe™ platform with importantly above average profit margins contrast to historical laboratory testing.
Products revenue increased to $7.4M from $7.3M a year ago. With costs well maintained, and sales of higher margin products, resulting from the unit’s recent product mix realignment, Life Science product profit margins advanced to 52%, from 51% a year earlier. Operating income approximated $0.4M for the April 2018 quarter and $0.6M in the year ago period.
Nine Month Results
Total products and services revenues year to date amounted to $80.3M, up 1% from $79.6M a year ago. Gross margins were 43.2%, vs. 44.9% a year ago, and SG&A as a percentage of revenue was 41% vs. 42%. Legal expenses amounted to $3.8M, up from $1.3M a year ago principally Because of litigation expenses in New York with Roche, where Enzo is the plaintiff. The GAAP and Non-GAAP net loss was $4.6M or $0.10 per share and $5.7M or $0.12 per share, respectively, contrast to GAAP and Non-GAAP net loss of $2.6M or $0.06 in the previous year period. EBITDA and Adjusted EBITDA was a loss of $3.9M contrast to a loss of $0.2M in the previous year period.
Enzo Biochem, Inc.’s (ENZ) EPS growth ratio for the past five years was 44.40% while Sales growth for the past five years was 0.90%. Return on equity (ROE) was noted as -5.10% while return on investment (ROI) was -3.50%. The stock’s institutional ownership stands at 71.30%.