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Losses deepen for clinical lab's parent company

A throat culture at Enzo lab.

A throat culture at Enzo lab. Photo Credit: Newsday file

Enzo Clinical Labs, of Farmingdale, saw a 15 percent growth in sales in its most recent quarter, with revenue climbing to $14.18 million compared to $12.39 million in the same period last year, the company said.

But the laboratory operation's results, reported for August through October, were not enough to make up for losses in other divisions of its Manhattan-based parent company Enzo Biochem Inc., the company said in its quarterly report, filed this week with the Securities and Exchange Commission.

Company shares were down $0.05 in early trading Wednesday, to $2.04, on the low end of its 52-week range of $1.98-$5.83.

Enzo Biochem Inc. reports a net loss of $4.49 miillion on $25.7 million revenue for the quarter ended Oct. 31, compared to a $1.12 million loss on $25.6 million in the prior-year quarter. The company's diluted loss per share deepened to $0.12, compared to the prior-year quarter's loss of $0.03.

"Enzo Clinical Labs continues to achieve double-digit growth due to the success of our expanded sales and marketing programs,” Barry Weiner, Enzo Biochem's president, said in a prepared statement.

"Largely due to organic growth and greater service volume, Clinical Labs ... gross profit for the quarter increased 12 percent to $5.4 million, although higher costs, which are not expected to recur, impacted the gross profit," Enzo said in the news release. "Operating expenses, which are related to revenue gains, increased $0.5 million but as a percentage of revenues declined to 44 percent from 46 percent" for the Farmingdale segment of the company.

Outside the Clinical Labs division, the company's quarterly product revenues declined to $9.7 million from $10.1 million, while royalty and license fee income dropped to $1.8 million from $3 million. The company said its Life Sciences division revenue suffered due to reduced government funding to universities, which resulted in "softness in the academic market segment."

Photo shows testing at the Enzo lab.

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