FARMINGDALE, N.Y., June 16, 2025 (GLOBE NEWSWIRE) -- Enzo Biochem, Inc. (OTCQX: ENZB) ("Enzo" or the "Company") today announced financial results for the fiscal third quarter ended April 30, 2025.
Financial Highlights
- The Company's third-quarter revenue of $6.4 million declined by $1.6 million or 20% compared to the same period in the prior year across all geographic areas. This is due to general continued headwinds in the life sciences tools space, including decreases in government grants, reduced R&D budgets, and tariffs uncertainty, as well as timing of large orders fulfillment.
- The Company launched approximately 100 new products during the third-quarter of fiscal year 2025, and we are focusing on driving new revenues for those products.
- The Company's third-quarter gross margin percentage was 39% (41% excluding a one-time inventory provision) and 47% in the 2025 and 2024 periods, respectively. The decline in the 2025 period gross profit was driven by the reduction in revenues, which did not fully cover overhead burden and other fixed manufacturing costs.
- Despite changes in revenue, the operating loss results for the nine months of FY25 for the Company's continuing operations decreased by $1.1 million compared to the same period in the prior year. This was achieved through cost containment initiatives and timing of litigation matters.
- Net loss per basic and fully diluted share was ($0.05) and ($0.06) for the three months ended April 30, 2025 and 2024, respectively.
- Enzo ended the third quarter with aggregate cash and cash equivalents of $36.7 million and working capital of $31.3 million. As noted below, $6.7 million of the remaining class-wide settlement will be paid in July 2025. The Board of Directors and management continue to be focused on conserving cash.
Recent Events
The Company and plaintiffs have reached a class-wide settlement agreement pertaining to the April 2023 cyber incident, which the Court granted approval of at the final fairness hearing on June 10, 2025. Approximately $0.8M of the settlement was paid in March 2025 and the remaining balance of $6.7 million must be remitted by July 10, 2025.
On April 22, 2025 the Company announced that its Board of Directors (the "Board") had commenced a review of strategic alternatives after receiving multiple inquiries regarding a potential transaction with the Company. In connection with this process, the Board has formed a special committee of independent directors (the "Strategic Committee") authorized to evaluate a broad range of opportunities to maximize value for shareholders, including a potential strategic transaction, business combination, full sale of the Company or return of excess capital to shareholders. The Strategic Committee has engaged BroadOak Capital Partners as financial advisor to assist in evaluating any inbound expressions of interest and other potential transactions. The Company does not intend to disclose further developments on this strategic review process unless and until a transaction is approved and entered into, or the process is discontinued.
On March 28, 2025, we notified the NYSE of our decision to voluntarily delist our common stock from NYSE. In connection with the delisting, the last day of trading of the Company's common stock on NYSE was April 17, 2025. The Company's common stock began trading on OTCQX on April 21, 2025 under the symbol "ENZB."
About Enzo Biochem
Enzo Biochem, Inc. has operated as a life sciences company for over 45 years. The primary business of Enzo today is conducted through its Life Sciences division, Enzo Life Sciences, which focuses on labeling and detection technologies from DNA to whole cell analysis, including a comprehensive portfolio of thousands of high-quality products, including antibodies, genomic probes, assays, biochemicals, and proteins. The Company's proprietary products and technologies play central roles in translational research and drug development areas, including cell biology, genomics, assays, immunohistochemistry, and small molecule chemistry. The Company monetizes its technology primarily via sales through our global distribution network and licensing. For more information, please visit enzo.com or follow Enzo Biochem on X and LinkedIn.
Forward-Looking Statements
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, cost of goods sold, 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, 2024. 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.
Enzo Biochem Contacts
For Enzo Biochem:
Patricia Eckert, Chief Financial Officer
Enzo Biochem
631-755-5500
peckert@enzo.com
Use of Non-GAAP Financial Measures by Enzo
The non-GAAP financial measures contained in this press release (including, without limitation, Adjusted net loss, EBITDA, and Adjusted EBITDA) are not GAAP measures of the Company's financial performance or liquidity and should not be considered as alternatives to net income (loss) as a measure of financial performance or cash flows from operations as measures of liquidity, or any other performance measure derived in accordance with GAAP. A reconciliation of such non-GAAP measures is included in the presentation of the Company's financial results for the quarter ended April 30, 2025 contained herein and is also available in the investor relations section of the Company's website (https://www.enzo.com).
The Company believes the presentation of these non-GAAP measures provides useful additional information to investors because they provide information consistent with that on which management evaluates the financial performance of the Company. The Company manages its business based on its operating cash flows. It refers to EBITDA as its primary indicator of performance and refers to Adjusted EBITDA to further exclude items of a non-recurring nature. It is reasonable to expect that one or more excluded items will occur in future periods, though the amounts recognized can vary significantly from period to period. You are encouraged to evaluate each adjustment used to determine a non-GAAP financial measure and the reasons management considers it appropriate for supplemental analysis. Our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
We refer you to the tables attached to this press release, which includes reconciliation tables of GAAP net loss to Adjusted net loss and GAAP net loss to EBITDA and Adjusted EBITDA.
| ENZO BIOCHEM, INC. | ||||||||
| (in thousands) | ||||||||
| Selected balance sheet data: | 04/30/2025 (unaudited) | 7/31/2024 (unaudited) | ||||||
| Cash and cash equivalents | $ | 36,693 | $ | 52,371 | ||||
| Working capital | 31,267 | 45,237 | ||||||
| Stockholders' equity | 43,398 | 56,112 | ||||||
| Total assets | 63,516 | 85,764 | ||||||
| The following table presents a reconciliation of reported net loss and basic and diluted net loss per share to Adjusted net loss and Adjusted basic and diluted net loss per share for the three months ended April 30, 2025. | ||||
| ENZO BIOCHEM, INC. | ||||
| Non-GAAP Reconciliation Table | ||||
| (Unaudited, in thousands, except per share data) | ||||
| Three months ended | ||||
| April 30, | ||||
| 2025 | ||||
| Reported GAAP net loss | $ | (2,790 | ) | |
| Adjusted for: | ||||
| Inventory provision | 163 | |||
| Discrete legal matters | 88 | |||
| Net loss from discontinued operations | 416 | |||
| Discrete separation matters | 17 | |||
| Adjusted net loss | $ | (2,106 | ) | |
| Weighted Shares Outstanding: | ||||
| Basic and diluted | 52,403 | |||
| Basic and diluted earnings per share: | ||||
| Basic and diluted net loss per share GAAP | ($0.05 | ) | ||
| Adjusted basic and diluted net loss per share non-GAAP | ($0.04 | ) | ||
The following table presents a reconciliation of reported GAAP net loss for the three months ended April 30, 2025 to EBITDA and Adjusted EBITDA: | ||||
| ENZO BIOCHEM, INC. | ||||
| EBITDA & Adjusted EBITDA Reconciliation Table | ||||
| (Unaudited, in thousands) | ||||
| Three months ended | ||||
| April 30, | ||||
| 2025 | ||||
| GAAP net loss | $ | (2,790 | ) | |
| Plus (minus): | ||||
| Depreciation and amortization | 318 | |||
| Interest (income), net | (384 | ) | ||
| EBITDA | (2,856 | ) | ||
| Adjusted for: | ||||
| Inventory provision | 163 | |||
| Discrete legal matters | 88 | |||
| Discrete separation expenses | 17 | |||
| Net loss from discontinued operations | 416 | |||
| Foreign exchange gain | (508 | ) | ||
| Adjusted EBITDA | $ | (2,680 | ) | |
