Quarterly report pursuant to Section 13 or 15(d)

Segment reporting

v2.4.0.6
Segment reporting
 6 Months Ended
Jan. 31, 2013
Segment Reporting Disclosure [Text Block]

Note 10 – 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 Company’s Life Sciences segment develops, manufactures, and markets products to research and pharmaceutical customers. The Company’s 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.


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, 2012.


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


Three months ended January 31, 2013                              
    Clinical
Labs 		    Life
Sciences 		    Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 13,320       —       —       —     $ 13,320  
Product revenues     —     $ 7,876       —       —       7,876  
Royalty and license fee income     —       1,014       —       —       1,014  
      13,320       8,890       —       —       22,210  
Operating expenses:                                        
Cost of clinical laboratory services     9,425       —       —       —       9,425  
Cost of product revenues     —       4,143       —       —       4,143  
Research and development     86       570     $ 312       —       968  
Selling, general and administrative     4,911       4,081       —     $ 1,900       10,892  
Provision for uncollectible accounts receivable     1,213       122       —       —       1,335  
Legal     51       31       —       1,359       1,441  
Total operating expenses     15,686       8,947       312       3,259       28,204  
                                         
Operating income (loss)     (2,366 )     (57 )     (312 )     (3,259 )     (5,994 )
                                         
Other income (expense)                                        
Interest     (13 )     5       —       1       (7 )
Other     17       17       —       9       43  
Foreign currency gain     —       104       —       —       104  
Income (loss) before income taxes   $ (2,362 )   $ 69     $ (312 )   $ (3,249 )   $ (5,854 )
                                         
Depreciation and amortization included above   $ 355     $ 799     $ 7     $ 25     $ 1,186  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 2       —       —       —     $ 2  
Research and development     —       1       —       —       1  
Selling, general and administrative     11     $ 6       —     $ 140       157  
Total   $ 13     $ 7       —     $ 140     $ 160  
                                         
Capital expenditures   $ 241     $ 87     $ —     $ —     $ 328  

Three months ended January 31, 2012                              
    Clinical
Labs 		    Life
Sciences 		    Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 14,123       —       —       —     $ 14,123  
Product revenues     —     $ 9,542       —       —       9,542  
Royalty and license fee income     —       1,308       —       —       1,308  
      14,123       10,850       —       —       24,973  
Operating expenses:                                        
Cost of clinical laboratory services     8,709       —       —       —       8,709  
Cost of product revenues     —       4,685       —       —       4,685  
Research and development     71       1,136     $ 496       —       1,703  
Selling, general and administrative     5,190       4,227       —     $ 2,070       11,487  
Provision for uncollectible accounts receivable     1,146       23       —       —       1,169  
Legal     69       118       —       836       1,023  
Total operating expenses     15,185       10,189       496       2,906       28,776  
                                         
Operating income (loss)     (1,062 )     661       (496 )     (2,906 )     (3,803 )
                                         
Other income (expense)                                        
Interest     (1 )     15       —       —       14  
Other     17       45       —       3       65  
Foreign currency (loss)     —       (352 )     —       —       (352 )
Income (loss) before income taxes   $ (1,046 )   $ 369     $ (496 )   $ (2,903 )   $ (4,076 )
                                         
Depreciation and amortization included above   $ 269     $ 734     $ 11     $ 31     $ 1,045  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 3       —       —       —     $ 3  
Research and development     —     $ 1       —       —       1  
Selling, general and administrative     11       20       —     $ 182       213  
Total   $ 14     $ 21       —     $ 182     $ 217  
                                         
Capital expenditures   $ 241     $ 62     $ —     $ —     $ 303  

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


Six months ended January 31, 2013                              
    Clinical
Labs 		    Life
Sciences 		    Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 28,497       —       —       —     $ 28,497  
Product revenues     —     $ 16,309       —       —       16,309  
Royalty and license fee income     —       3,033       —       —       3,033  
      28,497       19,342       —       —       47,839  
Operating expenses:                                        
Cost of clinical laboratory services     19,135       —       —       —       19,135  
Cost of product revenues     —       8,327       —       —       8,327  
Research and development     175       1,175     $ 629       —       1,979  
Selling, general and administrative     9,873       8,353       —     $ 4,082       22,308  
Provision for uncollectible accounts receivable     2,769       160       —       —       2,929  
Legal     158       36       —       2,948       3,142  
Total operating expenses     32,110       18,051       629       7,030       57,820  
                                         
Operating income (loss)     (3,613 )     1,291       (629 )     (7,030 )     (9,981 )
                                         
Other income (expense)                                        
Interest     (22 )     4       —       3       (15 )
Other     24       20       —       12       56  
Foreign currency gain     —       333       —       —       333  
Income (loss) before income taxes   $ (3,611 )   $ 1,648     $ (629 )   $ (7,015 )   $ (9,607 )
                                         
Depreciation and amortization included above   $ 663     $ 1,604     $ 14     $ 55     $ 2,336  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 4       —       —       —     $ 4  
Research and development     —     $ 1       —       —       1  
Selling, general and administrative     22       6       —     $ 268       296  
Total   $ 26     $ 7       —     $ 268     $ 301  
                                         
Capital expenditures   $ 420     $ 170     $ —     $ —     $ 590  

Six months ended January 31, 2012                              
    Clinical
Labs 		    Life
Sciences 		    Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 28,310       —       —       —     $ 28,310  
Product revenues     —     $ 19,245       —       —       19,245  
Royalty and license fee income     —       3,170       —       —       3,170  
      28,310       22,415       —       —       50,725  
Operating expenses:                                        
Cost of clinical laboratory services     17,523       —       —       —       17,523  
Cost of product revenues     —       9,822       —       —       9,822  
Research and development     115       2,184     $ 1,029       —       3,328  
Selling, general and administrative     10,020       9,455       —     $ 4,397       23,872  
Provision for uncollectible accounts receivable     2,419       36       —       —       2,455  
Legal     112       502       —       1,278       1,892  
Total operating expenses     30,189       21,999       1,029       5,675       58,892  
                                         
Operating income (loss)     (1,879 )     416       (1,029 )     (5,675 )     (8,167 )
                                         
Other income (expense)                                        
Interest     (2 )     14       —       —       12  
Other     22       44       —       10       76  
Foreign currency (loss)     —       (323 )     —       —       (323 )
Income (loss) before income taxes   $ (1,859 )   $ 151     $ (1,029 )   $ (5,665 )   $ (8,402 )
                                         
Depreciation and amortization included above   $ 535     $ 1,640     $ 22     $ 62     $ 2,259  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 5       —       —       —     $ 5  
Research and development     —     $ 4       —       —       4  
Selling, general and administrative     27       40       —     $ 354       421  
Total   $ 32     $ 44       —     $ 354     $ 430  
                                         
Capital expenditures   $ 431     $ 113     $ —     $ —     $ 544