Mon, Jun 16, 9:10 PM (27 days ago)
**Enzo Biochem, Inc. (ENZB) Q1 2025 Financial Summary** Enzo Biochem, Inc. (ENZB) reported a challenging quarter with notable declines in revenue and profitability. The company's primary focus remains on its Enzo Life Sciences division, which specializes in labeling and detection technologies. **Financial Performance:** - **Revenue:** $6.4 million, a 20% decrease from $8.0 million in Q1 2024, attributed to general headwinds in the life sciences tools space, including reduced R&D budgets and tariff uncertainties. - **Operating Loss:** $3.4 million, a 66% increase in loss from $2.0 million in Q1 2024, driven by lower revenues and increased administrative costs. - **Net Loss:** $2.8 million, an 11% increase in loss from $2.5 million in Q1 2024. - **Gross Profit Margin:** Approximately 39%, down from 47% in Q1 2024, due to reduced revenues not covering overhead costs. - **Cash Flow:** Net cash used in operating activities was $14.2 million, an improvement from $25.2 million in Q1 2024, primarily due to a smaller net loss and reduced paydowns of accounts payable. **Segment Performance:** - **Products Segment:** Revenue declined by 20%, with a gross profit margin of approximately 39%, down from 47% in Q1 2024. - **Corporate & Other Segment:** Increased expenses due to strategic consulting costs, health insurance, and bonus accruals. **Key Developments:** - **Strategic Review:** The Board initiated a review of strategic alternatives, including potential transactions or return of excess capital to shareholders. - **Discontinued Operations:** The sale of the clinical services business to Labcorp was completed, with all related income and expenses classified as discontinued operations. - **Ransomware Attack:** The company experienced a ransomware attack in April 2023, leading to regulatory inquiries and class action litigation. - **NYSE Delisting:** The company voluntarily delisted from the NYSE and began trading on OTCQX under the symbol "ENZB." **Future Outlook:** - **Uncertainties:** The company faces uncertainties related to the strategic review, regulatory inquiries, and class action litigation. - **Liquidity:** Management believes the company has sufficient funds to meet operating requirements for at least the next twelve months. - **Operational Focus:** Enzo Biochem aims to navigate market challenges through cost containment measures and strategic initiatives.