Annual report pursuant to Section 13 and 15(d)

Segment reporting

v2.4.0.8
Segment reporting
 12 Months Ended
Jul. 31, 2013
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

Note 15 – Segment reporting


The Company has three reportable segments: Life Sciences, Clinical Labs and Therapeutics. The Company’s Life Sciences segment develops, manufactures, and markets products to research and pharmaceutical customers. The Clinical Labs 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.


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:


Year ended July 31, 2013

  Clinical
Labs 		    Life
Sciences 		    Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 55,889       —       —       —     $ 55,889  
Product revenues     —     $ 32,526       —       —       32,526  
Royalty and license fee income     —       5,292       —       —       5,292  
Total revenues     55,889       37,818       —       —       93,707  
                                         
Operating expenses:                                        
Cost of clinical laboratory services     38,251       —       —       —       38,251  
Cost of product revenues     —       16,584       —       —       16,584  
Research and development     294       2,356     $ 1,239       —       3,889  
Selling, general and administrative     19,942       15,511       —     $ 8,201       43,654  
Provision for uncollectible accounts receivable     4,232       264       —       —       4,496  
Legal     316       57       —       5,440       5,813  
Total operating expenses     63,035       34,772       1,239       13,641       112,687  
                                         
                                         
Operating income (loss)     (7,146 )     3,046       (1,239 )     (13,641 )     (18,980 )
                                         
Other income (expense)                                        
Interest     (46 )     13       —       (21 )     (54 )
Other     49       (71 )     —       27       5  
Foreign exchange gain     —       80       —       —       80  
                                         
(Loss) income before income taxes   $ (7,143 )   $ 3,066     $ (1,239 )   $ (13,635 )   $ (18,949 )
                                         
Depreciation and amortization included above   $ 1,377     $ 3,102     $ 22     $ 104     $ 4,605  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 9     $ 1       —       —     $ 10  
Research and development     —       2       —       —       2  
Selling, general and administrative     36       10       —     $ 487       533  
Total   $ 45     $ 13       —     $ 487     $ 545  
                                         
Capital expenditures   $ 757     $ 231       —       —     $ 988  

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


Year ended July 31, 2012   Clinical
Labs 		    Life
Sciences 		    Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 59,403       —       —       —     $ 59,403  
Product revenues     —     $ 37,722       —       —       37,722  
Royalty and license fee income     —       5,958       —       —       5,958  
Total revenues     59,403       43,680       —       —       103,083  
                                         
Operating expenses:                                        
Cost of clinical laboratory services     36,305       —       —       —       36,305  
Cost of product revenues     —       19,668       —       —       19,668  
Research and development     299       4,308     $ 1,686       —       6,293  
Selling, general and administrative     20,856       18,305       —     $ 8,767       47,928  
Provision for uncollectible accounts receivable     4,987       117       —       —       5,104  
Legal     262       536       —       2,926       3,724  
Impairment charges     —       24,540       —       —       24,540  
Total operating expenses     62,709       67,474       1,686       11,693       143,562  
                                         
                                         
Operating loss     (3,306 )     (23,794 )     (1,686 )     (11,693 )     (40,479 )
                                         
Other income (expense)                                        
Interest     (5 )     23       —       3       21  
Other     28       27       —       22       77  
Foreign exchange loss     —       (540 )     —       —       (540 )
                                         
Loss before income taxes   $ (3,283 )   $ (24,284 )   $ (1,686 )   $ (11,668 )   $ (40,921 )
                                         
Depreciation and amortization included above   $ 1,092     $ 3,217     $ 43     $ 125     $ 4,477  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 10               —       —     $ 10  
Research and development     —     $ 4       —       —       4  
Selling, general and administrative     49       59       —     $ 597       705  
Total   $ 59     $ 63       —     $ 597     $ 719  
                                         
Capital expenditures   $ 921     $ 443       —       —     $ 1,364  

Year ended July 31, 2011

  Clinical
Labs 		    Life
Sciences 		    Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 52,762               —       —     $ 52,762  
Product revenues     —     $ 41,830       —       —       41,830  
Royalty and license fee income     —       7,437       —       —       7,437  
Total revenues     52,762       49,267       —       —       102,029  
                                         
Operating expenses:                                        
Cost of clinical laboratory services     31,682       —       —       —       31,682  
Cost of product revenues     —       22,137       —       —       22,137  
Research and development     —       5,784     $ 2,022       —       7,806  
Selling, general and administrative     18,426       17,855       —     $ 8,910       45,191  
Provision for uncollectible accounts receivable     4,415       16       —       —       4,431  
Legal     387       726       —       2,597       3,710  
Total operating expenses     54,910       46,518       2,022       11,507       114,957  
                                         
Operating (loss) income     (2,148 )     2,749       (2,022 )     (11,507 )     (12,928 )
                                         
Other income (expense)                                        
Interest     (5 )     2       —       14       11  
Other     30       (3 )     —       18       45  
Foreign exchange gain     —       49       —       —       49  
(Loss) income before income taxes   $ (2,123 )   $ 2,797     $ (2,022 )   $ (11,475 )   $ (12,823 )
                                         
Depreciation and amortization included above   $ 1,012     $ 3,282     $ 47     $ 128     $ 4,469  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 10       —     $ —       —     $ 10  
Research and development     —     $ 14       —       —       14  
Selling, general and administrative and legal     61       84       —     $ 880       1,025  
Total     71       98     $ —     $ 880     $ 1,049  
                                         
Capital expenditures   $ 834     $ 389       —       —     $ 1,223  

Geographic financial information is as follows:


Net sales to unaffiliated customers:   2013     2012     2011  
United States   $ 80,559     $ 87,776     $ 85,691  
Switzerland     5,499       6,802       8,508  
United Kingdom     2,324       2,728       2,825  
Other international countries     5,325       5,777       5,005  
Total   $ 93,707     $ 103,083     $ 102,029  

Long-lived assets at July 31,     2013       2012       2011  
United States   $ 23,136     $ 25,081     $ 44,028  
Switzerland     1,984       2,223       8,958  
United Kingdom     491       618       2,857  
Other international countries     401       426       1,850  
Total   $ 26,012     $ 28,348     $ 57,693  

The Company’s reportable segments are determined based on the services they perform, the products they sell, and the royalties and license fee income they earn, not on the geographic area in which they operate. The Company’s Clinical Labs segment operates 100% in the United States with all revenue derived there. The Life Sciences segment earns product revenue both in the United States and foreign countries and royalty and license fee income in the United States. The following is a summary of the Life Sciences segment revenues attributable to customers located in the United States and foreign countries:


    2013     2012     2011  
United States   $ 24,669     $ 28,372     $ 32,928  
Foreign countries     13,149       15,308       16,339  
    $ 37,818     $ 43,680     $ 49,267