Quarterly report pursuant to Section 13 or 15(d)

Segment reporting

v3.3.1.900
Segment reporting
 6 Months Ended
Jan. 31, 2016
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. Legal fee expense incurred to defend the Company’s intellectual property and other general corporate matters is considered a component of the Other segment. Legal fee expense specific to other segments’ activities has been allocated to those segments. Legal settlements, net represent activities for which royalties would have been received by the Company’s Life Sciences segment had the Company had agreements in place with plaintiffs for the patents or products covered by the settlements.


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, 2015.


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


Three months ended January 31, 2016   Clinical
Labs		     Life
Sciences		     Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 17,523       —       —       —     $ 17,523  
Product revenues     —     $ 6,578       —       —       6,578  
Royalty and license fee income     —       459       —       —       459  
      17,523       7,037       —       —       24,560  
Operating expenses:                                        
Cost of clinical laboratory services     10,535       —       —       —       10,535  
Cost of product revenues     —       3,206       —       —       3,206  
Research and development     —       661     $ 200       —       861  
Selling, general and administrative     5,649       2,773       —     $ 2,858       11,280  
Provision for uncollectible accounts receivable     467       (8 )     —       —       459  
Legal fee expense     57       5       —       2,349       2,411  
Legal settlements, net     1,500       (13,150 )     —       —       (11,650 )
Total operating expenses     18,208       (6,513 )     200       5,207       17,102  
                                         
Operating income (loss)     (685 )     13,550       (200 )     (5,207 )     7,458  
                                         
Other income (expense)                                        
Interest     (23 )     17       —       (36 )     (42 )
Other     (1 )     —       —       12       11  
Foreign exchange loss     —       (388 )     —       —       (388 )
Income (loss) before income taxes   $ (709 )   $ 13,179     $ (200 )   $ (5,231 )   $ 7,039  
                                         
Depreciation and amortization included above   $ 411     $ 524     $ —     $ 17     $ 952  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 2       —       —       —     $ 2  
Research and development     —       —       —       —       —  
Selling, general and administrative     9     $ 5       —     $ 94       108  
Total   $ 11     $ 5     $ —     $ 94     $ 110  
                                         
Capital expenditures   $ 354     $ 84     $ —     $ —     $ 438  

Three months ended January 31, 2015   Clinical
Labs		     Life
Sciences		     Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 14,725       —       —       —     $ 14,725  
Product revenues     —     $ 7,723       —       —       7,723  
Royalty and license fee income     —       644       —       —       644  
      14,725       8,367       —       —       23,092  
Operating expenses:                                        
Cost of clinical laboratory services     9,246       —       —       —       9,246  
Cost of product revenues     —       3,818       —       —       3,818  
Research and development     —       635     $ 199       —       834  
Selling, general and administrative     5,089       2,704       —     $ 1,877       9,670  
Provision for uncollectible accounts receivable     658       (57 )     —       —       601  
Legal fee expense     41       (53 )     —       2,816       2,804  
Total operating expenses     15,034       7,047       199       4,693       26,973  
                                         
Operating income (loss)     (309 )     1,320       (199 )     (4,693 )     (3,881 )
                                         
Other income (expense)                                        
Interest     (12 )     5       —       (42 )     (49 )
Other     4       (29 )     —       8       (17 )
Foreign exchange loss     —       (259 )     —       —       (259 )
Income (loss) before income taxes   $ (317 )   $ 1,037     $ (199 )   $ (4,727 )   $ (4,206 )
                                         
Depreciation and amortization included above   $ 357     $ 555     $ 1     $ 22     $ 935  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 2       —       —       —     $ 2  
Research and development     —     $ 1       —       —       1  
Selling, general and administrative     12       3       —     $ 87       102  
Total   $ 14     $ 4     $ —     $ 87     $ 105  
                                         
Capital expenditures   $ 338     $ 51     $ —     $ —     $ 389  

Six months ended January 31, 2016   Clinical
Labs		     Life
Sciences		     Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 34,613       —       —       —     $ 34,613  
Product revenues     —     $ 14,265       —       —       14,265  
Royalty and license fee income     —       859       —       —       859  
      34,613       15,124       —       —       49,737  
Operating expenses:                                        
Cost of clinical laboratory services     20,867       —       —       —       20,867  
Cost of product revenues     —       6,817       —       —       6,817  
Research and development     —       1,328     $ 400       —       1,728  
Selling, general and administrative     10,935       5,832       —     $ 4,738       21,505  
Provision for uncollectible accounts receivable     1,175       (12 )     —       —       1,163  
Legal fee expense     66       (17 )     —       3,963       4,012  
Legal settlements, net     1,500       (19,950 )     —       —       (18,450 )
Total operating expenses     34,543       (6,002 )     400       8,701       37,642  
                                         
Operating income (loss)     70       21,126       (400 )     (8,701 )     12,095  
                                         
Other income (expense)                                        
Interest     (42 )     31       —       (71 )     (82 )
Other     3       39       —       23       65  
Foreign exchange loss     —       (518 )     —       —       (518 )
Income (loss) before income taxes   $ 31     $ 20,678     $ (400 )   $ (8,749 )   $ 11,560  
                                         
Depreciation and amortization included above   $ 808     $ 1,054     $ —     $ 40     $ 1,902  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 3       —       —       —     $ 3  
Research and development     —       —       —       —       —  
Selling, general and administrative     19     $ 10       —     $ 189       218  
Total   $ 22     $ 10     $ —     $ 189     $ 221  
                                         
Capital expenditures   $ 791     $ 152     $ —     $ —     $ 943  

Six months ended January 31, 2015   Clinical
Labs		     Life
Sciences		     Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 30,547       —       —       —     $ 30,547  
Product revenues     —     $ 15,725       —       —       15,725  
Royalty and license fee income     —       1,644       —       —       1,644  
      30,547       17,369       —       —       47,916  
Operating expenses:                                        
Cost of clinical laboratory services     19,376       —       —       —       19,376  
Cost of product revenues     —       7,513       —       —       7,513  
Research and development     —       1,183     $ 442       —       1,625  
Selling, general and administrative     10,157       5,853       —     $ 3,945       19,955  
Provision for uncollectible accounts receivable     1,189       (47 )     —       —       1,142  
Legal fee expense     131       (51 )     —       5,190       5,270  
Total operating expenses     30,853       14,451       442       9,135       54,881  
                                         
Operating income (loss)     (306 )     2,918       (442 )     (9,135 )     (6,965 )
                                         
Other income (expense)                                        
Interest     (39 )     7       —       (86 )     (118 )
Other     6       (35 )     —       31       2  
Foreign exchange gain     —       (731 )     —       —       (731 )
Income (loss) before income taxes   $ (339 )   $ 2,159     $ (442 )   $ (9,190 )   $ (7,812 )
                                         
Depreciation and amortization included above   $ 714     $ 1,113     $ 2     $ 44     $ 1,873  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 3       —       —       —     $ 3  
Research and development     —     $ 2       —       —       2  
Selling, general and administrative     21       3       —     $ 174       198  
Total   $ 24     $ 5     $ —     $ 174     $ 203  
                                         
Capital expenditures   $ 589     $ 64     $ —     $ —     $ 653