Clarification and Correction: Enzo Biochem Reports Operating Results for Fiscal 2004 First Quarter.Business Editors/Health/Medical Writers FARMINGDALE, N.Y.--(BUSINESS WIRE)--Dec. 17, 2003 Enzo Biochem, Inc. (NYSE NYSE See: New York Stock Exchange :ENZ), a leading biotechnology company specializing in gene identification and genetic and immune regulation technologies for diagnostic and therapeutic applications, today reported operating results for the first fiscal quarter ended October 31, 2003. For the three month period, total revenues amounted to $10.3 million, compared with $17.4 million in the corresponding year-earlier period. Gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. was 73.7%, compared with 80.5% a year ago. The net loss for the first fiscal quarter amounted to $0.3 million, or ($0.01) per share, fully diluted, compared to net income of $3.7 million, or $0.12 per share, fully diluted, in the corresponding year-ago period. The results reflect primarily the absence of shipments of research products by Enzo Life Sciences to a single customer that accounted for an unusually strong order flow in the year-ago first fiscal quarter. Cash flow for the quarter remained positive. Working capital as of October 31, 2003, amounted to $97.6 million, and cash, cash equivalents and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has totaled $78.6 million. First fiscal quarter research and development expenses increased slightly, to $1.9 million, reflecting clinical trial activities and other research projects. Selling, general and administrative expenses declined slightly to $3.4 million, from $3.5 million in the corresponding year-ago period, while legal expenses increased $0.2 million, to $1.0 million. Revenues at Enzo Clinical Labs in the fiscal first quarter increased 8.2%, to $7.5 million, compared with $6.9 million in the corresponding year-earlier period. Gross profit margin of 69% was comparable to the year-ago first quarter, while pre-tax income amounted to $0.7 million. Enzo Clinical Labs is benefiting from continued focus on its core office-based physician clientele. The Clinical Labs has added personnel to its marketing staff, and is targeting additional service centers and expansion into nearby markets not now served. Enzo Life Sciences has moved forward with an aggressive marketing program designed to more directly service its end users, while simultaneously positioning the Company for upcoming product line expansion. The program involves continued increases of the direct field sales force, a comprehensive advertising campaign, increased attendance at top industry trade meetings, and publications in leading scientific journals. This effort is directed towards accelerating revenue growth in subsequent quarters, while, at the same time, bringing the Company into more direct contact with its customer base. Enzo Therapeutics last month received final clearance to proceed with a Phase I/II clinical trial of its Stealth Vector(R) HGTV HGTV Home and Garden Television 43(TM) gene construct for HIV HIV (Human Immunodeficiency Virus), either of two closely related retroviruses that invade T-helper lymphocytes and are responsible for AIDS. There are two types of HIV: HIV-1 and HIV-2. HIV-1 is responsible for the vast majority of AIDS in the United States. infection. This study, to be conducted at the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Presbyterian Hospital-Weill-Medical College of Cornell University Cornell University, mainly at Ithaca, N.Y.; with land-grant, state, and private support; coeducational; chartered 1865, opened 1868. It was named for Ezra Cornell, who donated $500,000 and a tract of land. With the help of state senator Andrew D. , in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , is expected to begin early in calendar year 2004. Enrollment in the Phase II randomized ran·dom·ize tr.v. ran·dom·ized, ran·dom·iz·ing, ran·dom·iz·es To make random in arrangement, especially in order to control the variables in an experiment. double blind clinical trial of Enzo's study drug for the management of Crohn's Disease Crohn's disease: see colitis. has been completed. Preparations for a Phase II double-blind clinical trial for EHT EHT Egg Harbor Township (New Jersey) EHT Extra High Tension (spectrometry) EHT Essential Hypertension EHT Ek Hasina Thi (movie, India) EHT Electrothermal Hydrazine Thruster 899, the Company's medicine for hepatitis B Hepatitis B Definition Hepatitis B is a potentially serious form of liver inflammation due to infection by the hepatitis B virus (HBV). It occurs in both rapidly developing (acute) and long-lasting (chronic) forms, and is one of the most common chronic virus-associated chronic hepatitis Chronic hepatitis Long lasting inflammation of the liver due to viruses or other causes. Mentioned in: Tube Compression of the Esophagus and Stomach chronic hepatitis , are proceeding. In addition, an application has been filed to initiate a new clinical trial for the treatment of hepatitis C virus
"Enzo Biochem continues to make significant progress," said Barry Weiner, President. "Our program for expanding Life Sciences' direct sales efforts is a very positive step for the Company as we move towards a more centralized cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. marketing approach for our proprietary products. Enzo Clinical Labs is strongly positioned to continue its growth, and the Company's therapeutic pipeline is growing and offers important new potential treatments for a variety of medical conditions See carpal tunnel syndrome, computer vision syndrome, dry eyes and deep vein thrombosis. . Enzo Biochem, Inc. enjoys a strong financial position and continues to be cash positive. We remain excited and confident regarding the outlook." About Enzo Enzo Biochem is engaged in the research, development and manufacture of innovative health care products based on molecular biology molecular biology, scientific study of the molecular basis of life processes, including cellular respiration, excretion, and reproduction. The term molecular biology was coined in 1938 by Warren Weaver, then director of the natural sciences program at the Rockefeller and genetic engineering techniques, and in providing diagnostic services diagnostic services, n.pl the imaging and laboratory capabilities available for determining the cause of an illness. to the medical community. The Company's proprietary labeling and detection products for gene sequencing and genetic analysis, with approximately 200 patents worldwide, are sold to the life sciences market throughout the world. The Company's therapeutic division is in various stages of clinical evaluation clinical evaluation Medtalk An evaluation of whether a Pt has symptoms of a disease, is responding to treatment, or is having adverse reactions to therapy of its proprietary gene medicine for HIV-1 infection and its proprietary immune regulation medicines for hepatitis B and hepatitis C Hepatitis C Definition Hepatitis C is a form of liver inflammation that causes primarily a long-lasting (chronic) disease. Acute (newly developed) hepatitis C is rarely observed as the early disease is generally quite mild. infection and for Crohn's Disease. The Company also holds a patent covering a method and materials for correcting point mutations point mutation n. A mutation that involves a single nucleotide and may consist of loss of a nucleotide, substitution of one nucleotide for another, or the insertion of an additional nucleotide. or small insertions or deletions of genetic material that would allow for editing and correcting certain abnormalities in genes. For more information visit our website www.enzo.com. Except for historical information, the matters discussed in this news 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. 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 press release. A conference call conducted by Enzo Biochem, Inc. management took place on Tuesday, December 16, 2003 at 8:30 A.M. (ET). It can be accessed by dialing 888-338-6461, International callers can dial 973-935-8509. You may also listen over the Internet at www.vcall.com. To listen to the live call on the Internet, please go to the web site at least fifteen minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available through midnight December 28, 2003, shortly following the live call. For replay, dial 877-519-4471 (973-341-3080 internationally). You will be prompted for PIN number 4368231. - Table follows -
ENZO BIOCHEM, INC.
SELECTED STATEMENT OF OPERATIONS DATA
Three Months
Ended
October 31,
2003 2002
----------------
(In thousands,
except per
Share data)
(unaudited)
Operating revenues $10,273 $17,356
Income (loss) before (provision) benefit
for income taxes ($816) $6,047
(Provision) benefit for income taxes $493 ($2,359)
---- --------
Net income (loss) ($323) $3,688
====== ======
Basic earnings (loss) per share ($0.01) $0.12
------- -----
Diluted earnings (loss) per share ($0.01) $0.12
------- -----
Common share - basic 30,006 29,885
Common share - diluted 30,006 30,492
SELECTED BALANCE SHEET DATA
October 31, July 31,
2003 2003
(unaudited) (audited)
(in thousands)
Cash and Marketable Securities $78,625 $78,422
Working Capital $97,596 $97,724
Stockholders' Equity $109,294 $109,381
Total Assets $115,545 $115,878
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