Enzo Biochem (ENZ) Q3 Earnings Improve Y/Y, Gross Margin Up

Core Insights - Enzo Biochem, Inc. reported a loss per share of 4 cents from continuing operations in Q3 of fiscal 2024, an improvement from a loss of 16 cents per share in the same quarter last year [1] - The company achieved a net loss of $2.1 million from continuing operations, significantly narrower than the $7.9 million loss reported in the prior year [6] - The gross profit increased by 24.1% to $3.7 million, with gross margin expanding by 633 basis points to 46.5% [21] Revenue Analysis - Total revenues for the Asia Pacific segment were $0.9 million, reflecting a 15.4% increase year-over-year [3] - The Europe segment generated revenues of $2.4 million, up 39.8% year-over-year, attributed to increased marketing efforts in drug development product sales [14] - Products revenues reached $8 million in Q3, marking a 7.2% increase year-over-year, driven by strong performance in Europe and Asia Pacific [13][14] Expense Management - Selling, general and administrative expenses decreased by 27.9% to $4.5 million [4] - Research and development expenses fell by 31.6% year-over-year to $0.6 million [4] - Adjusted operating expenses totaled $5.1 million, down 28.4% year-over-year [4] Profitability Metrics - Adjusted EBITDA for the quarter was a loss of $1.2 million, an improvement from the loss of $3.6 million in the previous year [16] - Adjusted operating loss was $1.4 million, narrower than the adjusted operating loss of $4.1 million reported a year ago [22] Liquidity and Debt - Cash and cash equivalents at the end of Q3 were $57.2 million, down from $60.2 million at the end of Q2 [11] - Total debt at the end of Q3 was $2.7 million, slightly down from $2.8 million at the end of Q2 [23] - Cumulative net cash used in operating activities increased to $25.2 million from $19.9 million a year ago [17] Strategic Developments - The company launched an enhanced website with e-commerce functionality aimed at improving customer access to products and support, which is expected to positively impact stock performance [24]