| 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,
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended July 31,
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clinical
Labs
|
|
Life Sciences
|
|
Therapeutics
|
|
Other
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clinical laboratory
services
|
|
$
|
44,178
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44,178
|
|
|
Product revenues
|
|
|
—
|
|
$
|
43,111
|
|
|
—
|
|
|
—
|
|
$
|
43,111
|
|
|
Royalty and license fee
income
|
|
|
—
|
|
|
9,793
|
|
|
—
|
|
|
—
|
|
|
9,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
44,178
|
|
|
52,904
|
|
|
—
|
|
|
—
|
|
|
97,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of clinical laboratory
services
|
|
|
29,570
|
|
|
|
|
|
—
|
|
|
—
|
|
|
29,570
|
|
|
Cost of product
revenues
|
|
|
—
|
|
|
22,547
|
|
|
—
|
|
|
—
|
|
|
22,547
|
|
|
Research and
development
|
|
|
—
|
|
|
7,202
|
|
$
|
2,502
|
|
|
—
|
|
|
9,704
|
|
|
Selling, general and
administrative
|
|
|
18,503
|
|
|
19,800
|
|
|
—
|
|
$
|
10,092
|
|
|
48,395
|
|
|
Provision for uncollectible
accounts receivable
|
|
|
3,432
|
|
|
48
|
|
|
—
|
|
|
—
|
|
|
3,480
|
|
|
Legal
|
|
|
222
|
|
|
145
|
|
|
—
|
|
|
1,379
|
|
|
1,746
|
|
|
Litigation
settlement
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,698
|
|
|
3,698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
51,727
|
|
|
49,742
|
|
|
2,502
|
|
|
15,169
|
|
|
119,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss)
income
|
|
|
(7,549
|
)
|
|
3,162
|
|
|
(2,502
|
)
|
|
(15,169
|
)
|
|
(22,058
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
24
|
|
|
19
|
|
|
Other
|
|
|
46
|
|
|
(8
|
)
|
|
—
|
|
|
6
|
|
|
44
|
|
|
Foreign exchange
loss
|
|
|
—
|
|
|
(266
|
)
|
|
—
|
|
|
—
|
|
|
(266
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income
taxes
|
|
$
|
(7,503
|
)
|
$
|
2,883
|
|
$
|
(2,502
|
)
|
$
|
(15,139
|
)
|
$
|
(22,261
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization included above
|
|
$
|
982
|
|
$
|
3,110
|
|
$
|
52
|
|
$
|
125
|
|
$
|
4,269
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation
included in above:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of clinical laboratory
services
|
|
$
|
12
|
|
|
|
|
$
|
—
|
|
|
—
|
|
$
|
12
|
|
|
Research and
development
|
|
|
—
|
|
$
|
14
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
Selling, general and
administrative and legal
|
|
|
78
|
|
|
114
|
|
|
—
|
|
$
|
952
|
|
|
1,144
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
90
|
|
$
|
128
|
|
$
|
—
|
|
$
|
952
|
|
$
|
1,170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
$
|
1,728
|
|
$
|
1,450
|
|
$
|
11
|
|
$
|
62
|
|
$
|
3,251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Geographic financial information
is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales to
unaffiliated customers:
|
|
2012
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
87,776
|
|
$
|
85,691
|
|
$
|
82,873
|
|
|
Switzerland
|
|
|
6,802
|
|
|
8,508
|
|
|
7,037
|
|
|
United Kingdom
|
|
|
2,728
|
|
|
2,825
|
|
|
2,507
|
|
|
Other international
countries
|
|
|
5,777
|
|
|
5,005
|
|
|
4,665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
103,083
|
|
$
|
102,029
|
|
$
|
97,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-lived assets at
July 31,
|
|
2012
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
25,081
|
|
$
|
44,028
|
|
$
|
45,439
|
|
|
Switzerland
|
|
|
2,223
|
|
|
8,958
|
|
|
7,063
|
|
|
United Kingdom
|
|
|
618
|
|
|
2,857
|
|
|
2,944
|
|
|
Other international
countries
|
|
|
426
|
|
|
1,850
|
|
|
1,723
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
28,348
|
|
$
|
57,693
|
|
$
|
57,169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
28,372
|
|
$
|
32,928
|
|
$
|
38,695
|
|
|
Foreign countries
|
|
|
15,308
|
|
|
16,339
|
|
|
14,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
43,680
|
|
$
|
49,267
|
|
$
|
52,904
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|