Enzo Biochem Reports Results for the Fiscal Third Quarter and Nine Months.FARMINGDALE, N.Y. -- Enzo Biochem, Inc. (NYSE NYSE See: New York Stock Exchange :ENZ) today announced results for the third quarter and nine months ended April 30, 2005. For the nine months, total revenues amounted to $32.5 million, compared with $33.1 million in the corresponding year-earlier period, with gross profit totaling $21.7 million, compared with $24.4 million a year ago. Net income (loss) amounted to $5.0 million, or $0.15 per diluted share, compared with a net loss in the first nine months of fiscal 2004 of $2.2 million, equal to ($0.07) per diluted share. Third quarter revenues amounted to $11.0 million, compared with $11.8 million in the corresponding year-ago period. Gross profit totaled $7.0 million, compared with $8.7 million last year. Net loss for the quarter totaled $1.5 million, or ($0.05) per diluted share, compared with the year-ago net loss of $0.5 million, or ($0.01) per diluted share. Revenue for both the nine months and third quarter does not reflect sales from two distributors with whom the Company is involved in ongoing litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . In addition, third quarter results reflect a $1.8 million increase in selling, and general and administrative expenses as compared to the previous year, due principally to accounting expenditures related to Sarbanes-Oxley legislation requirements as well as increases in information technology and marketing at Enzo Clinical Labs. The provision for uncollectible accounts Uncollectible account An account which cannot be collected by a company because the customer is not able to pay or is unwilling to pay. receivables declined sharply in the fiscal third quarter, to $1.0 million, from $2.8 million a year earlier. Legal expenditures were essentially the same, and research and development expenditures increased 2% and 7% in the nine months and third quarter periods respectively, due to an increase in activity at Enzo Therapeutics therapeutics Treatment and care to combat disease or alleviate pain or injury. Its tools include drugs, surgery, radiation therapy, mechanical devices, diet, and psychiatry. . At Enzo Clinical Labs, revenue for the nine months increased 10%, to $24.4 million, from $22.1 million a year earlier, and gross profit amounted to $15.2 million, compared with $14.7 million a year ago. For the fiscal third quarter, clinical laboratory revenues rose 14%, to $8.6 million, from $7.6 million a year earlier, and gross profit totaled $5.2 million, against $4.9 million in the prior year. Results benefited from a greater volume of tests, as reflected in an increase in the accounts being serviced, and inroads inroads Noun, pl make inroads into to start affecting or reducing: my gambling has made great inroads into my savings inroads npl to make inroads into [+ into new markets, offset by higher costs associated with more esoteric tests esoteric test Lab medicine The analysis of 'rare' substances or molecules that are not performed in a routine clinical lab. See DORA. and increased personnel-related expenses. Revenue at Enzo Life Sciences totaled $8.1 million for the nine-month period, compared with $10.9 million in the corresponding year-ago period, with gross profit at $6.4 million, compared with $9.7 million a year ago. Fiscal third quarter revenues amounted to $2.4 million, against $4.2 million last year, and gross profit totaled $1.9 million, compared with $3.8 million, a year ago. Revenues in both periods this fiscal year include royalty earned from Digene along with $14.0 million that is being recognized as a gain on the patent litigation settlement in the first quarter of this fiscal year. Direct sales of Life Sciences products were comparable in the third quarter year over year. To further the Company's in-house marketing strategy, David C. Goldberg, a vice president at Enzo, has been promoted to the position of General Manager of Enzo Life Sciences, with overall responsibility for the division. He previously held various senior management positions at Enzo Clinical Labs. "We continue to believe that our strong portfolio of intellectual property supported by growing opportunities in our clinical laboratory and life sciences division underpin our growth prospects," said Barry W. Weiner, President. "We have acquired the rights and intellectual property for a novel therapy for uveitis uveitis Inflammation of the uvea, the middle coat of the eyeball. Anterior uveitis, involving the iris or ciliary body (containing the muscle that adjusts the lens) or both, can lead to glaucoma and blindness. , a severe eye inflammation that can often lead to blindness. We are currently developing a protocol for further clinical trials of the candidate drug that has been designated orphan status in Europe. This new drug candidate expands our immune modulation modulation, in communications modulation, in communications, process in which some characteristic of a wave (the carrier wave) is made to vary in accordance with an information-bearing signal wave (the modulating wave); demodulation is the process by which platform, where we have a considerable proprietary interest. We will continue to look for ways to use our strong balance sheet to expand our business activities." "The enforcement of our intellectual property estate has been a valuable activity as demonstrated by prior settlements," Mr. Weiner continued. "We look forward to progress in our ongoing legal actions and, in particular, the Markman (claims construction) hearing currently scheduled for the end of this month in connection with several of these legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. ." "Meanwhile we continue to make progress at Enzo Therapeutics where we have multiple products in development. We are adding new scientific personnel to our professional staff and pursuing our goal of realizing the substantial value we believe is represented by our Company's assets and opportunities." The Phase II study of Alequel in the management of Crohn's Disease Crohn's disease: see colitis. is proceeding. A second clinical trial to evaluate the effect of EGS EGS European Geophysical Society EGS European Graduate School EGS El Goonish Shive (webcomic) EGS Environmental Goods and Services EGS Employment Guarantee Scheme (UK) EGS EOS Ground System 21 in the treatment of NASH Nash , Ogden 1902-1971. American writer known for his droll epigrammatic verse, much of which appeared in the New Yorker. Noun 1. Nash - United States writer noted for his droll epigrams (1902-1971) Ogden Nash (non-alcoholic steatohepatitis) is ongoing. A second site in the Phase I/II trial of HGTV-43(TM), Enzo's gene medicine for HIV-1 infection, is being established at University of California The University of California has a combined student body of more than 191,000 students, over 1,340,000 living alumni, and a combined systemwide and campus endowment of just over $7.3 billion (8th largest in the United States). San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden Medical Center, where the Phase I trial was originally conducted. Preclinical studies preclinical studies, n.pl a term used to describe research done before a clinical study. May be laboratory or epidemiologic research. are continuing to prepare for human trials of the Company's small molecule therapy for bone disorders. The Company's balance sheet remains strong. As of April 30, 2005, cash, cash equivalents and investments totaled more than $80 million. Working capital amounted to $98.7 million, and shareholder's equity stood at $110 million. The Company remains debt-free. 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 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 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 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. Pre-clinical research is being conducted on several candidate compounds aimed at producing new mineral and organic bone, including technology that could provide therapy for osteoporosis osteoporosis (ŏs'tēō'pərō`sĭs), disorder in which the normal replenishment of old bone tissue is severely disrupted, resulting in weakened bones and increased risk of fracture; osteopenia and fractures, among other applications. 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. The Company owns or licenses over 230 patents worldwide. 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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. An informational call conducted by Enzo Biochem, Inc. management will take place on Thursday, June 9, 2005 at 4:45 PM E.T. It can be accessed by dialing 1-800-322-0079. International callers can dial 1-973-935-2100. 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 approximately two hours after the end of the live call, through midnight (ET) on Friday, June 24, 2005. For replay, dial 1-877-519-4471 (1-973-341-3080 internationally). You will be prompted for PIN number 6109512.
ENZO BIOCHEM, INC.
SELECTED STATEMENT OF OPERATIONS DATA
Three Months Ended Nine Months Ended
April 30, April 30,
2005 2004 2005 2004
(in thousands, except per share data)
(unaudited)
Operating revenues $11,000 $11,765 $32,535 $33,065
(Loss) income before (provision)
benefit for income taxes ($2,553) ($891) $8,675 ($4,463)
(Provision) benefit for income taxes $1,056 $431 ($3,680) $2,224
------- ------- -------- --------
Net (loss) Income ($1,497) ($460) $4,995 ($2,239)
------- ------- -------- --------
Basic earnings (loss) per share ($0.05) ($0.01) $0.16 ($0.07)
Diluted earnings (loss) per share ($0.05) ($0.01) $0.15 ($0.07)
Common share - basic 32,122 31,713 32,082 31,586
Common share - diluted 32,122 31,713 32,745 31,586
SELECTED BALANCE SHEET DATA
April 30, 2005 July 31, 2004
(unaudited)
(in thousands)
Cash and Marketable Securities $80,273 $71,741
Working Capital $98,721 $92,260
Stockholders' Equity $110,093 $104,166
Total Assets $116,116 $110,334
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