Quarterly report pursuant to Section 13 or 15(d)

Segment reporting

v3.19.2
Segment reporting
 9 Months Ended
Apr. 30, 2019
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

Note 10 – Segment reporting


The Company has three reportable segments: Products, Clinical Services and Therapeutics. The Company’s Products segment develops, manufactures, and markets products to research and pharmaceutical customers. The Clinical Services segment provides diagnostic services to the health care community. The Company’s Therapeutics 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, which may result in settlements recognized in another segment and other general corporate matters are considered a component of the Other segment. Legal fee expense specific to other segments’ activities have been allocated to those segments.


Legal settlements, net, represent activities for which royalties would have been received in the Company’s Products segment and expenses related to an investigation within the Clinical Services segment. 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.


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


Three months ended April 30, 2019   Clinical
Services		     Products     Therapeutics     Other     Consolidated  
Revenues   $ 11,751     $ 7,911       —       —     $ 19,662  
                                         
Operating costs, expenses and legal settlements, net:                                        
Cost of revenues     10,963       3,397       —       —       14,360  
Research and development     31       527     $ 223       —       781  
Selling, general and administrative     5,960       2,923       —     $ 2,037       10,920  
Legal fee expense     35       16       —       206       257  
Legal settlements, net     —       (28,925 )     —       —       (28,925 )
Total operating costs, expenses and legal settlements, net     16,989       (22,062 )     223       2,243       (2,607 )
                                         
Operating income (loss)     (5,238 )     29,973       (223 )     (2,243 )     22,269  
                                         
Other income (expense):                                        
Interest     (18 )     19       —       257       258  
Other     6       —       —       64       70  
Foreign exchange loss     —       (332 )     —       —       (332 )
Income (loss) before income taxes   $ (5,250 )   $ 29,660     $ (223 )   $ (1,922 )   $ 22,265  
                                         
Depreciation and amortization included above   $ 440     $ 340     $ —     $ 58     $ 838  
                                         
Share-based compensation included in above:                                        
Selling, general and administrative     40       24       —       135       199  
Total   $ 40     $ 24     $ —     $ 135     $ 199  
                                         
Capital expenditures   $ 120     $ 446     $ —     $ —     $ 566  

Three months ended April 30, 2018   Clinical
Services		     Products     Therapeutics     Other     Consolidated  
Revenues   $ 17,737     $ 7,493       —       —     $ 25,230  
                                         
Operating costs and expenses:                                        
Cost of revenues     10,995       3,562       —       —       14,557  
Research and development     —       576     $ 223       —       799  
Selling, general and administrative     6,252       2,970       —     $ 1,799       11,021  
Legal fee expense     25       19       —       1,607       1,651  
Total operating costs and expenses     17,272       7,127       223       3,406       28,028  
                                         
Operating income (loss)     465       366       (223 )     (3,406 )     (2,798 )
                                         
Other income (expense):                                        
Interest     (22 )     12       —       237       227  
Other     15       2       —       —       17  
Foreign exchange loss     —       (462 )     —       —       (462 )
Income (loss) before income taxes   $ 458     $ (82 )   $ (223 )   $ (3,169 )   $ (3,016 )
                                         
Depreciation and amortization included above   $ 437     $ 358     $ —     $ 20     $ 815  
                                         
Share-based compensation included in above:                                        
Selling, general and administrative     26       17       —       161       204  
Total   $ 26     $ 17     $ —     $ 161     $ 204  
                                         
Capital expenditures   $ 465     $ 96     $ —     $ —     $ 561  

Nine months ended April 30, 2019   Clinical
Services		     Products     Therapeutics     Other     Consolidated  
Revenues   $ 38,048     $ 22,201       —       —     $ 60,249  
                                         
Operating costs, expenses and legal settlements, net:                                        
Cost of revenues     32,956       10,391       —       —       43,347  
Research and development     31       1,645     $ 666       —       2,342  
Selling, general and administrative     18,220       8,828       —     $ 6,339       33,387  
Legal fee expense     109       24       —       2,567       2,700  
Legal settlements, net     —       (28,925 )     —       —       (28,925 )
Total operating costs, expenses and legal settlements, net     51,316       (8,037 )     666       8,906       52,851  
                                         
Operating income (loss)     (13,268 )     30,238       (666 )     (8,906 )     7,398  
                                         
Other income (expense):                                        
Interest     (51 )     49       —       761       759  
Other     17       —       —       232       249  
Foreign exchange loss (gain)     —       (530 )     —       —       (530 )
(Loss) income before income taxes   $ (13,302 )   $ 29,757     $ (666 )   $ (7,913 )   $ 7,876  
                                         
Depreciation and amortization included above   $ 1,217     $ 1,025     $ —     $ 130     $ 2,372  
                                         
Share-based compensation included in above:                                        
Selling, general and administrative     118       74       —       533       725  
Total   $ 118     $ 74     $ —     $ 533     $ 725  
                                         
Capital expenditures   $ 883     $ 524     $ —     $ 6,147     $ 7,554  

Nine months ended April 30, 2018   Clinical
Services		     Products     Therapeutics     Other     Consolidated  
Revenues   $ 56,001     $ 22,257       —       —     $ 78,258  
                                         
Operating costs and expenses:                                        
Cost of revenues     34,767       10,828       —       —       45,595  
Research and development     —       1,690     $ 668       —       2,358  
Selling, general and administrative     18,454       8,476       —     $ 6,045       32,975  
Legal fee expense     46       47       —       3,689       3,782  
Total operating costs and expenses     53,267       21,041       668       9,734       84,710  
                                         
Operating income (loss)     2,734       1,216       (668 )     (9,734 )     (6,452 )
                                         
Other income (expense):                                        
Interest     (70 )     35       —       604       569  
Other     32       10       —       44       86  
Foreign exchange loss     —       143       —       —       143  
Income (loss) before income taxes   $ 2,696     $ 1,404     $ (668 )   $ (9,086 )   $ (5,654 )
                                         
Depreciation and amortization included above   $ 1,254     $ 1,039     $ —     $ 57     $ 2,350  
                                         
Share-based compensation included in above:                                        
Selling, general and administrative     86       61       —       470       617  
Total   $ 86     $ 61     $ —     $ 470     $ 617  
                                         
Capital expenditures   $ 1,459     $ 167     $ —     $ —     $ 1,626