Quarterly report pursuant to Section 13 or 15(d)

Segment reporting

v2.4.0.8
Segment reporting
 6 Months Ended
Jan. 31, 2014
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

Note 12 – 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, 2013.


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


Three months ended January 31, 2014
    Clinical
Labs 		    Life
Sciences 		    Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 13,848       —       —       —     $ 13,848  
Product revenues     —     $ 8,054       —       —       8,054  
Royalty and license fee income     —       1,026       —       —       1,026  
      13,848       9,080       —       —       22,928  
Operating expenses:                                        
Cost of clinical laboratory services     9,292       —       —       —       9,292  
Cost of product revenues     —       3,865       —       —       3,865  
Research and development     3       543     $ 286       —       832  
Selling, general and administrative     4,981       3,318       —     $ 1,785       10,084  
Provision for uncollectible accounts receivable     920       (8 )     —       —       912  
Legal     142       15       —       1,339       1,496  
Total operating expenses     15,338       7,733       286       3,124       26,481  
                                         
Operating income (loss)     (1,490 )     1,347       (286 )     (3,124 )     (3,553 )
                                         
Other income (expense)                                        
Interest     (11 )     3       —       (44 )     (52 )
Other     9       (6 )     —       12       15  
Foreign currency gain     —       20       —       —       20  
Income (loss) before income taxes   $ (1,492 )   $ 1,364     $ (286 )   $ (3,156 )   $ (3,570 )
                                         
Depreciation and amortization included above   $ 355     $ 621     $ 2     $ 24     $ 1,002  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 2       —       —       —     $ 2  
Research and development     —       —       —       —       —  
Selling, general and administrative     9     $ 5       —     $ 93       107  
Total   $ 11     $ 5       —     $ 93     $ 109  
                                         
Capital expenditures   $ 103     $ 7     $ —     $ —     $ 110  

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  

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


Six months ended January 31, 2014
    Clinical
Labs 		    Life
Sciences 		    Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 28,707       —       —       —     $ 28,707  
Product revenues     —     $ 15,717       —       —       15,717  
Royalty and license fee income     —       2,637       —       —       2,637  
      28,707       18,354       —       —       47,061  
Operating expenses:                                        
Cost of clinical laboratory services     19,001       —       —       —       19,001  
Cost of product revenues     —       7,712       —       —       7,712  
Research and development     14       1,069     $ 566       —       1,649  
Selling, general and administrative     10,031       6,813       —     $ 3,768       20,612  
Provision for uncollectible accounts receivable     1,764       20       —       —       1,784  
Legal     290       37       —       2,550       2,877  
Total operating expenses     31,100       15,651       566       6,318       53,635  
                                         
Operating income (loss)     (2,393 )     2,703       (566 )     (6,318 )     (6,574 )
                                         
Other income (expense)                                        
Interest     (22 )     8       —       (100 )     (114 )
Other     27       21       —       28       76  
Foreign currency gain     —       317       —       —       317  
Income (loss) before income taxes   $ (2,388 )   $ 3,049     $ (566 )   $ (6,390 )   $ (6,295 )
                                         
Depreciation and amortization included above   $ 710     $ 1,262     $ 6     $ 49     $ 2,027  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 4       —       —       —     $ 4  
Research and development     —     $ 1       —       —       1  
Selling, general and administrative     19       9       —     $ 179       207  
Total   $ 23     $ 10       —     $ 179     $ 212  
                                         
Capital expenditures   $ 362     $ 82     $ —     $ —     $ 444  

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