product rationalization program at Enzo Life Sciences, with the emphasis on higher margin sales, total revenues for the quarter were nonetheless on a par with year-ago results, totaling $25.6 million, compared to $25.8 million last year. Gross margins remained unchanged year over year, and gross profit as a percentage of revenues equaled 46% for both periods.

Selling, general and administrative expenses improved as a percentage of revenues to 45%, from 48%, declining just under $1.0 million. The three-week trial against Life Technologies in the Federal District Court of New Haven, CT, and expenses connected with other litigation, particularly those pending in federal court in New York City, caused an increase in legal expenditures to $1.7 million, from $0.9 million a year ago. Recent patent infringement cases filed in Wilmington, Del., are on a contingency basis and involve immaterial legal costs to the Company.

The net loss for the quarter totaled ($3.7) million, a $0.8 million reduction from a year ago, with the net loss per share at ($0.09), versus ($0.12) last year. EBITDA, a non-GAAP figure, improved by $0.5 million, to a reduced loss of ($2.6) million compared to a loss of ($3.1) million last year.

As of October 31, 2012, cash and cash equivalents amounted to $13.4 million. During the quarter cash utilized approximated $1.7 million, including cash used for legal and capital expenditures of $0.6 million. We estimate that cash collections were adversely affected by approximately $0.3 million due to the storm. Working capital equaled $18.3 million.

Operating Segments

Enzo Clinical Labs, as noted, was temporarily impacted by Hurricane Sandy, suffering no physical impairment of facilities but constrained by the weather which essentially eliminated specimen volume for three full days. For the quarter, the Lab grew revenues 7%, despite a $0.7 million effect from the storm, to $15.2 million. Gross margin rose to $5.5 million, from $5.4 million in the year-earlier period. Selling, general and administrative costs, as a percentage of revenues, improved to 33% as compared to 34% in the year ago period. The operating loss increased to $1.2 million, from $0.8 million a year ago.

Results continue to benefit from an expanded sales and marketing program, in addition to more esoteric tests being brought in-house, along with new lab tests, such as ColonSentry™ for assessing a patient’s risk for having colorectal cancer at a point in time, which is being increasingly used by physicians among non-compliant individuals. The Lab has also added a new assay that assists in risk assessment and early detection of lung cancer in high risk individuals, which is being made available to physicians in the New York metropolitan market as well as New Jersey and Eastern Pennsylvania. Enzo is the only clinical laboratory making the test available within those areas.

Enzo Life Sciences posted operating income of $1.4 million, an increase of $1.6 million over a year ago when it lost $0.2 million. In line with the product rationalization program