NEW YORK: Enzo Biochem reported after the close of the market on Thursday that its first quarter revenues rose 4 percent year over year, thanks largely to high demand for certain molecular diagnostic services that pushed its clinical lab revenues up 9 percent during the quarter.
For the three months ended Oct. 31, the molecular diagnostics company reported total revenues of $26.3 million, up from $25.2 million a year earlier. Clinical lab services revenues rose to $18.6 million from $17.1 million. Revenues from the life sciences unit, however, fell to $7.7 million from $8.1 million from the year-ago period. Within that unit product revenues fell slightly to $7.4 million from $7.7 million in 2015, and royalty and license revenues fell to $300,000 from $400,000.
“The year has gotten off to a good start, and we expect to see the year progress nicely as we continue to complete development and file for approval of additional proprietary low-cost, high-performance molecular diagnostic products designed to capitalize on reimbursement pressures facing diagnostic labs,” said Enzo President Barry Weiner in a statement. “Our strategic focus is paying off, notably at the clinical labs, where our molecular diagnostics services are increasing and our extensive and growing women’s health diagnostic services is experiencing increased usage.” Weiner also noted that the dip in life sciences revenues could be attributed to continued delays in orders and currency fluctuations.
The company recorded a net loss of $1.5 million, or $.03 per share, compared to net income of $4.4 million, or $.10 per share, in the previous year. Enzo’s Q1 SG&A expenses rose 12 percent to $11.5 million from $10.3 million a year earlier, largely due to commissions, bonuses and salaries, along with increased administrative expenses related to the greater volume of molecular diagnostics sales. The company ended the quarter with $67.2 million in cash and cash equivalents.
