Enzo Biochem (ENZ) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue rose 3% year-over-year to $31.9 million, with industrial customer sales up 46% due to focus on drug development and cell/gene therapy.

• Gross margin improved to 46% from 37% last year, reflecting absence of prior inventory provision, product mix, and cost containment.

• Net loss from continuing operations narrowed to $9.8 million ($0.19/share) from $25.0 million ($0.51/share) year-over-year.

• Total net loss for FY24 was $26.1 million ($0.51/share), compared to prior year net income of $20.3 million ($0.41/share) due to last year's gain from clinical lab asset sale.

• Board authorized a $0.10/share cash dividend, payable December 2, 2024.

Financial highlights

• Fourth quarter revenue declined 16% year-over-year to $7.5 million, attributed to shifting ordering patterns.

• Fourth quarter gross margin rose to 43% from 35% last year, driven by absence of inventory provision and cost initiatives.

• Cash and cash equivalents at July 31, 2024 were $52.4 million; working capital was $45.2 million.

• Stockholders’ equity stood at $56.1 million, with total assets of $85.8 million at fiscal year-end.

Outlook and guidance

• Management expects release of $5 million in escrow funds from the clinical lab asset sale before end of Q1 FY25.

• Company aims to stabilize revenue, improve gross margin, and launch new products amid challenging market conditions.