On March 13, 2024 Enzo Biochem, Inc. (NYSE: ENZ) ("Enzo" or the "Company") reported financial results for the second quarter ended January 31, 2024 (Press release, Enzo Biochem, MAR 13, 2024, View Source [SID1234641111]).
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Second Quarter Highlights
● The Company’s Life Science division’s second-quarter revenue of $8.5 million improved year-over-year by 14%. During the 2024 period, we experienced a 25% revenue increase in the United States, driven by increased product demand in the drug development and cell and gene therapy market segments. Revenue for the six months ended January 31, 2024 of $16.4 million improved 12% compared to the same period in the prior year.
● The Life Science division’s second-quarter gross margin was 49%, which improved by 1,000 basis points year-over-year from 39%, and was also a sequential 500 basis point improvement from 44%. The six-month YTD margin was 47% which was also a 1,000 basis point improvement compared to the prior year. This favorable result was driven by the reported revenue increase, mix of products sold, and ongoing cost containment initiatives, including, but not limited to, a workforce reduction for continuing operations.
● The Life Science division reported second-quarter net income of $1.1 million, compared to net income of $0.2 million in the prior year period. The net loss in the Corporate & Other segment decreased year-over-year by $1.2 million.
● Enzo ended the second quarter with aggregate cash and cash equivalents of $60.2 million, a reduction of $23.1 million from July 31, 2023, primarily due to the significant paydown of accounts payable and accrued liabilities post the clinical lab asset sale. The Company’s current ratio was 3.2 as of January 31, 2024.
● Net loss from continuing operations for Q2 FY24 was $0.9 million or ($0.02) per common share, compared to a net loss in the prior year’s second quarter of $2.9 million or ($0.06) per common share.
● Net loss, representing the results of continuing and discontinued operations for Q2 FY24, was $3.1 million, or ($0.06) per common share, compared to a net loss in the prior year’s second quarter of $11.3 million, or ($0.23) per common share. The weighted average basic common shares outstanding as of January 31, 2024, was 50.5 million.
"Enzo’s strategy is to deliver sustainable, profitable revenue growth through market focus, technical strength, and operational conservatism. We are pleased to report a third consecutive quarter with double-digit revenue growth in the life science division, and I am proud of the team’s hard work resulting in higher gross margin and improved profitability in the second quarter within our Life Science division," said Kara Cannon, Enzo’s Chief Executive Officer. These achievements were driven by aligning our products in high-growth market segments made up of our drug development customers, while relying on our existing, stable global infrastructure to provide comprehensive, quality customer service. I am very encouraged by our financial and operational progress, and I am optimistic about our ability to maintain this positive momentum to deliver on longer-term goals."