- Enzo Life Sciences reports revenue of $7.5 million, with margin improvement in Q3 FY23
FARMINGDALE, NY, June 14, 2023 (GLOBE NEWSWIRE) -- Enzo Biochem, Inc. (NYSE:ENZ), a pioneering biosciences and diagnostics company, today filed its Form 10-Q for the third quarter ended April 30, 2023 of Fiscal Year 2023 (Q3 FY23). Enzo Biochem will not be hosting a financial webcast or call for this most recent quarterly reporting period.
As previously reported, on March 16, 2023, Enzo Biochem announced that Labcorp would purchase substantially all of the operating assets and certain liabilities of the Enzo Clinical Labs division. This acquisition was part of an effort to evaluate strategic initiatives for Enzo Biochem that was initiated in 2022, in collaboration with the investment bank Jefferies LLC. Enzo has obtained shareholder approval and met all regulatory requirements for closing the sale to Labcorp. Enzo’s Board of Directors is actively evaluating the use of sale proceeds, including, but not limited to, distribution to shareholders, and is also continuing its review of strategies to maximize the potential of its remaining assets.
Third Quarter 2023 Key Financial Results
- Revenues reached $16.1 million in the third quarter, a decrease of 39% compared to $26.2 million in the third quarter of last year and a decrease of 1% sequentially compared to the second quarter of FY23. The decrease compared to Q3 FY22 was primarily driven by the decline of COVID testing and reduced volumes during the downtime period after the ransomware attack.
- Q3 FY23 revenues for Enzo Life Sciences were $7.5 million. Q3 FY23 revenues were flat compared to Q2 FY23 and near flat compared to Q3 FY22. Enzo Life Sciences anticipated continuous growth this quarter, however, revenues for Enzo Life Sciences were negatively impacted by the downtime period after the ransomware attack. Despite the downtime period revenue loss, the Q3 FY23 margin improved from 35.9% in the prior year Q3 to 40.2%, driven by distribution channel conversion and expansion efforts, along with other strategic initiatives.
- Q3 FY23 revenues for the Enzo Clinical Labs segment were $8.6 million, a decrease of 54% compared to $18.6 million in the third quarter of last year. $7.8 million of that variance pertained to COVID testing declines. Contributing factors for the remaining variance were the reduction in core business during the downtime period after the ransomware attack and adjustments due to changes in payer policy and collection experience.
About Enzo Biochem
Enzo Biochem is a pioneer in molecular diagnostics, leading the convergence of clinical laboratories, life sciences and intellectual property through the development of unique diagnostic platform technologies that provide numerous advantages over previous standards. A global company, Enzo Biochem utilizes cross-functional teams to develop and deploy products, systems and services that meet the ever-changing and rapidly growing needs of health care today and into the future. Underpinning Enzo Biochem’s products and technologies is a broad and deep intellectual property portfolio, with patent coverage across a number of key enabling technologies. For more information, please visit Enzo.com or follow Enzo Biochem on Twitter and LinkedIn.
Except for historical information, the matters discussed in this release may be considered "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include declarations regarding the intent, belief or current expectations of the Company and its management, including those related to cash flow, gross margins, revenues, and expenses which are dependent on a number of factors outside of the control of the Company including, inter alia, the markets for the Company’s products and services, costs of goods and services, other expenses, government regulations, litigation, and general business conditions. See Risk Factors in the Company’s Form 10-K for the fiscal year ended July 31, 2022. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results. The Company disclaims any obligations to update any forward-looking statement as a result of developments occurring after the date of this release.
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