Quarterly report pursuant to Section 13 or 15(d)

Segment reporting

v2.4.0.8
Segment reporting
 9 Months Ended
Apr. 30, 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 April 30, 2014
    Clinical
Labs 		    Life
Sciences 		    Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 14,542       —       —       —     $ 14,542  
Product revenues     —     $ 8,707       —       —       8,707  
Royalty and license fee income     —       729       —       —       729  
      14,542       9,436       —       —       23,978  
Operating expenses:                                        
Cost of clinical laboratory services     9,784       —       —       —       9,784  
Cost of product revenues     —       3,800       —       —       3,800  
Research and development     —       599     $ 250       —       849  
Selling, general and administrative     5,091       3,278       —     $ 2,236       10,605  
Provision for uncollectible accounts receivable     684       —       —       —       684  
Legal fee expense     282       766               863       1,911  
Legal settlements, net     2,000       (5,100 )     —       —       (3,100 )
Total operating expenses     17,841       3,343       250       3,099       24,533  
                                         
Operating income (loss)     (3,299 )     6,093       (250 )     (3,099 )     (555 )
                                         
Other income (expense)                                        
Interest     (10 )     4       —       (41 )     (47 )
Other     7       (2 )     —       5       10  
Foreign currency gain     —       144       —       —       144  
Income (loss) before income taxes   $ (3,302 )   $ 6,239     $ (250 )   $ (3,135 )   $ (448 )
                                         
Depreciation and amortization included above   $ 351     $ 614     $ —     $ 23     $ 988  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 2       1       —       —     $ 3  
Research and development     —       —       —       —       —  
Selling, general and administrative     9     $ (4 )     —     $ 275       280  
Total   $ 11     $ (3 )     —     $ 275     $ 283  
                                         
Capital expenditures   $ 90     $ 36     $ —     $ —     $ 126  

Three months ended April 30, 2013
    Clinical
Labs 		    Life
Sciences 		    Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 13,384       —       —       —     $ 13,384  
Product revenues     —     $ 8,265       —       —       8,265  
Royalty and license fee income     —       949       —       —       949  
      13,384       9,214       —       —       22,598  
Operating expenses:                                        
Cost of clinical laboratory services     9,331       —       —       —       9,331  
Cost of product revenues     —       4,219       —       —       4,219  
Research and development     61       625     $ 303       —       989  
Selling, general and administrative     5,041       3,813       —     $ 2,178       11,032  
Provision for uncollectible accounts receivable     887       41       —       —       928  
Legal fee expense     115       21       —       1,572       1,708  
Total operating expenses     15,435       8,719       303       3,750       28,207  
                                         
Operating income (loss)     (2,051 )     495       (303 )     (3,750 )     (5,609 )
                                         
Other income (expense)                                        
Interest     (12 )     2       —       —       (10 )
Other     6       12       —       7       25  
Foreign currency gain     —       (214 )     —       —       (214 )
Income (loss) before income taxes   $ (2,057 )   $ 295     $ (303 )   $ (3,743 )   $ (5,808 )
                                         
Depreciation and amortization included above   $ 354     $ 778     $ 4     $ 25     $ 1,161  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 2       —       —       —     $ 2  
Research and development     —       1       —       —       1  
Selling, general and administrative     11     $ —       —     $ 126       137  
Total   $ 13     $ 1       —     $ 126     $ 140  
                                         
Capital expenditures   $ 148     $ 18     $ —     $ —     $ 166  

Nine months ended April 30, 2014
    Clinical
Labs 		    Life
Sciences 		    Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 43,250       —       —       —     $ 43,250  
Product revenues     —     $ 24,424       —       —       24,424  
Royalty and license fee income     —       3,366       —       —       3,366  
      43,250       27,790       —       —       71,040  
Operating expenses:                                        
Cost of clinical laboratory services     28,785       —       —       —       28,785  
Cost of product revenues     —       11,511       —       —       11,511  
Research and development     14       1,668     $ 816       —       2,498  
Selling, general and administrative     15,122       10,098       —     $ 5,997       31,217  
Provision for uncollectible accounts receivable     2,448       20       —       —       2,468  
Legal fees expense     572       803       —       3,413       4,788  
Legal settlements, net     2,000       (5,100 )                     (3,100 )
Total operating expenses     48,941       19,000       816       9,410       78,167  
                                         
Operating income (loss)     (5,691 )     8,790       (816 )     (9,410 )     (7,127 )
                                         
Other income (expense)                                        
Interest     (32 )     13       —       (142 )     (161 )
Other     34       18       —       33       85  
Foreign currency gain     —       460       —       —       460  
Income (loss) before income taxes   $ (5,689 )   $ 9,281     $ (816 )   $ (9,519 )   $ (6,743 )
                                         
Depreciation and amortization included above   $ 1,061     $ 1,876     $ 6     $ 72     $ 3,015  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 6     $ 1       —       —     $ 7  
Research and development     —       1       —       —       1  
Selling, general and administrative     28       5       —     $ 456       489  
Total   $ 34     $ 7       —     $ 456     $ 497  
                                         
Capital expenditures   $ 453     $ 117     $ —     $ —     $ 570  

Nine months ended April 30, 2013
    Clinical
Labs 		    Life
Sciences 		    Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 41,881       —       —       —     $ 41,881  
Product revenues     —     $ 24,574       —       —       24,574  
Royalty and license fee income     —       3,982       —       —       3,982  
      41,881       28,556       —       —       70,437  
Operating expenses:                                        
Cost of clinical laboratory services     28,466       —       —       —       28,466  
Cost of product revenues     —       12,546       —       —       12,546  
Research and development     236       1,800     $ 932       —       2,968  
Selling, general and administrative     14,914       12,165       —     $ 6,261       33,340  
Provision for uncollectible accounts receivable     3,656       201       —       —       3,857  
Legal fee expense     272       58       —       4,520       4,850  
Total operating expenses     47,544       26,770       932       10,781       86,027  
                                         
Operating income (loss)     (5,663 )     1,786       (932 )     (10,781 )     (15,590 )
                                         
Other income (expense)                                        
Interest     (34 )     6       —       3       (25 )
Other     31       32       —       18       81  
Foreign currency gain     —       119       —       —       119  
Income (loss) before income taxes   $ (5,666 )   $ 1,943     $ (932 )   $ (10,760 )   $ (15,415 )
                                         
Depreciation and amortization included above   $ 1,017     $ 2,382     $ 19     $ 79     $ 3,497  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 7       —       —       —     $ 7  
Research and development     —     $ 2       —       —       2  
Selling, general and administrative     37       6       —     $ 389       432  
Total   $ 44     $ 8       —     $ 389     $ 441  
                                         
Capital expenditures   $ 579     $ 193     $ —     $ —     $ 772