Quarterly report pursuant to Section 13 or 15(d)

Segment reporting

v3.7.0.1
Segment reporting
9 Months Ended
Apr. 30, 2017
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

Note 11 – Segment reporting


The Company has three reportable segments: Clinical Labs, Life Sciences, and Therapeutics. The Clinical Labs segment provides diagnostic services to the health care community. The Life Sciences segment develops, manufactures, and markets products to research and pharmaceutical customers. The Therapeutic segment conducts research and development activities for therapeutic drug candidates.


The Company evaluates segment performance based on segment income (loss) before taxes. Costs excluded from segment income (loss) before taxes and reported as “Other” consist of corporate general and administrative costs which are not allocable to the three reportable segments.


Legal fee expense incurred to defend the Company’s intellectual property and other general corporate matters is considered a component of the Other segment. Legal fee expense specific to other segments’ activities has been allocated to those segments. Legal settlements, net represent activities for which royalties would have been received by the Company’s Life Sciences segment had the Company had agreements in place with plaintiffs for the patents or products covered by the settlements.


Management of the Company assesses assets on a consolidated basis only and, therefore, assets by reportable segment have not been included in the reportable segments below. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies contained in the Company’s Annual Report on Form 10-K for the year ended July 31, 2016.


The following financial information represents the operating results of the reportable segments of the Company:


Three months ended April 30, 2017


    Clinical
Labs
    Life
Sciences
    Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 19,584                       $ 19,584  
Product revenues         $ 7,312                   7,312  
Royalty and license fee income           193                   193  
      19,584       7,505                   27,089  
Operating costs and expenses:                                        
Cost of clinical laboratory services     11,334                         11,334  
Cost of product revenues           3,582                   3,582  
Research and development           552     $ 214             766  
Selling, general and administrative     6,118       2,745           $ 1,639       10,502  
Provision for uncollectible accounts receivable     650       (30 )                 620  
Legal fee expense     4       42             466       512  
Total operating costs and expenses     18,106       6,891       214       2,105       27,316  
                                         
Operating income (loss)     1,478       614       (214 )     (2,105 )     (227 )
                                         
Other income (expense):                                        
Interest     (28 )     12             131       115  
Other     7       (98 )           17       (74 )
Foreign exchange loss           147                   147  
Income (loss) before income taxes   $ 1,457     $ 675     $ (214 )   $ (1,957 )   $ (39 )
                                         
Depreciation and amortization included above   $ 390     $ 423     $     $ 37     $ 850  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 2                       $ 2  
Selling, general and administrative     38     $ 23           $ 146       207  
Total   $ 40     $ 23     $     $ 146     $ 209  
                                         
Capital expenditures   $ 483     $ 252     $     $     $ 735  

Three months ended April 30, 2016


    Clinical
Labs
    Life
Sciences
    Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 18,162                       $ 18,162  
Product revenues         $ 8,001                   8,001  
Royalty and license fee income           270                   270  
      18,162       8,271                   26,433  
Operating costs and expenses:                                        
Cost of clinical laboratory services     11,142                         11,142  
Cost of product revenues           3,846                   3,846  
Research and development           674     $ 208             882  
Selling, general and administrative     6,008       2,877           $ 1,984       10,869  
Provision for uncollectible accounts receivable     612       (36 )                 576  
Legal fee expense     54       11             1,567       1,632  
Legal settlements, net                              
Total operating costs and expenses     17,816       7,372       208       3,551       28,947  
                                         
Operating income (loss)     346       899       (208 )     (3,551 )     (2,514 )
                                         
Other income (expense)                                        
Interest     (33 )     7             (14 )     (40 )
Other     2       4             16       22  
Foreign exchange loss           419                   419  
Income (loss) before income taxes   $ 315     $ 1,329     $ (208 )   $ (3,549 )   $ (2,113 )
                                         
Depreciation and amortization included above   $ 418     $ 514     $     $ 28     $ 960  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 2                       $ 2  
Selling, general and administrative     14     $ 9           $ 124       147  
Total   $ 16     $ 9     $     $ 124     $ 149  
                                         
Capital expenditures   $ 331     $ 115     $     $     $ 446  

Nine months ended April 30, 2017


    Clinical
Labs
    Life
Sciences
    Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 56,979                       $ 56,979  
Product revenues         $ 21,721                   21,721  
Royalty and license fee income           933                   933  
      56,979       22,654                   79,633  
Operating costs and expenses:                                        
Cost of clinical laboratory services     33,282                         33,282  
Cost of product revenues           10,411                   10,411  
Research and development           1,695     $ 376             2,071  
Selling, general and administrative     17,967       8,596           $ 6,578       33,141  
Provision for uncollectible accounts receivable     1,910       58                   1,968  
Legal fee expense     105       70             1,079       1,254  
Total operating costs and expenses     53,264       20,830       376       7,657       82,127  
                                         
Operating income (loss)     3,715       1,824       (376 )     (7,657 )     (2,494 )
                                         
Other income (expense):                                        
Interest     (85 )     34             291       240  
Other     126       (98 )           41       69  
Foreign exchange loss           (308 )                 (308 )
Income (loss) before income taxes   $ 3,756     $ 1,452     $ (376 )   $ (7,325 )   $ (2,493 )
                                         
Depreciation and amortization included above   $ 1,185     $ 1,432     $     $ 75     $ 2,692  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 5                       $ 5  
Selling, general and administrative     74     $ 49           $ 473       596  
Total   $ 79     $ 49     $     $ 473     $ 601  
                                         
Capital expenditures   $ 1,070     $ 354     $     $     $ 1,424  

Nine months ended April 30, 2016


    Clinical
Labs
    Life
Sciences
    Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 52,775                       $ 52,775  
Product revenues         $ 22,266                   22,266  
Royalty and license fee income           1,129                   1,129  
      52,775       23,395                   76,170  
Operating costs, expenses and legal settlements, net:                                        
Cost of clinical laboratory services     32,009                         32,009  
Cost of product revenues           10,663                   10,663  
Research and development           2,002     $ 608             2,610  
Selling, general and administrative     16,943       8,709           $ 6,722       32,374  
Provision for uncollectible accounts receivable     1,787       (48 )                 1,739  
Legal fee expense     120       (6 )           5,530       5,644  
Legal settlements, net     1,500       (19,950 )                 (18,450 )
Total operating costs, expenses and legal settlements, net     52,359       1,370       608       12,252       66,589  
                                         
Operating income (loss)     416       22,025       (608 )     (12,252 )     9,581  
                                         
Other income (expense)                                        
Interest     (75 )     38             (85 )     (122 )
Other     5       35             47       87  
Foreign exchange loss           (99 )                 (99 )
Income (loss) before income taxes   $ 346     $ 21,999     $ (608 )   $ (12,290 )   $ 9,447  
                                         
Depreciation and amortization included above   $ 1,226     $ 1,568     $     $ 68     $ 2,862  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 5                       $ 5  
Selling, general and administrative     33     $ 19           $ 313       365  
Total   $ 38     $ 19     $     $ 313     $ 370  
                                         
Capital expenditures   $ 1,122     $ 267     $     $     $ 1,389