Quarterly report pursuant to Section 13 or 15(d)

Segment reporting

v3.4.0.3
Segment reporting
 9 Months Ended
Apr. 30, 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 April 30, 2016   Clinical
Labs		     Life
Sciences		     Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 18,162       —       —       —     $ 18,162  
Product revenues     —     $ 8,001       —       —       8,001  
Royalty and license fee income     —       270       —       —       270  
      18,162       8,271       —       —       26,433  
Operating expenses:                                        
Cost of clinical laboratory services     11,142       —       —       —       11,142  
Cost of product revenues     —       3,846       —       —       3,846  
Research and development     —       674     $ 208       —       882  
Selling, general and administrative     6,008       2,877       —     $ 1,984       10,869  
Provision for uncollectible accounts receivable     612       (36 )     —       —       576  
Legal fee expense     54       11       —       1,567       1,632  
Legal settlements, net     —       —       —       —       —  
Total operating expenses     17,816       7,372       208       3,551       28,947  
                                         
Operating income (loss)     346       899       (208 )     (3,551 )     (2,514 )
                                         
Other income (expense):                                        
Interest     (33 )     7       —       (14 )     (40 )
Other     2       4       —       16       22  
Foreign exchange gain     —       419       —       —       419  
Income (loss) before income taxes   $ 315     $ 1,329     $ (208 )   $ (3,549 )   $ (2,113 )
                                         
Depreciation and amortization included above   $ 418     $ 514     $ —     $ 28     $ 960  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 2       —       —       —     $ 2  
Research and development     —       —       —       —       —  
Selling, general and administrative     14     $ 9       —     $ 124       147  
Total   $ 16     $ 9     $ —     $ 124     $ 149  
                                         
Capital expenditures   $ 331     $ 115     $ —     $ —     $ 446  

Three months ended April 30, 2015   Clinical
Labs		     Life
Sciences		     Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 15,657       —       —       —     $ 15,657  
Product revenues     —     $ 7,906       —       —       7,906  
Royalty and license fee income     —       423       —       —       423  
      15,657       8,329       —       —       23,986  
Operating expenses:                                        
Cost of clinical laboratory services     9,724       —       —       —       9,724  
Cost of product revenues     —       3,779       —       —       3,779  
Research and development     —       704     $ 105       —       809  
Selling, general and administrative     4,935       3,031       —     $ 2,180       10,146  
Provision for uncollectible accounts receivable     631       (42 )     —       —       589  
Legal fee expense     42       (22 )     —       1,935       1,955  
Legal settlement, net     —       (170 )     —       —       (170 )
Total operating expenses     15,332       7,280       105       4,115       26,832  
                                         
Operating income (loss)     325       1,049       (105 )     (4,115 )     (2,846 )
                                         
Other income (expense):                                        
Interest     (23 )     6       —       (41 )     (58 )
Other     11       2       —       13       26  
Foreign exchange loss     —       (125 )     —       —       (125 )
Income (loss) before income taxes   $ 313     $ 932     $ (105 )   $ (4,143 )   $ (3,003 )
                                         
Depreciation and amortization included above   $ 358     $ 543     $ —     $ 22     $ 923  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 3       —       —       —     $ 3  
Research and development     —     $ —       —       —       —  
Selling, general and administrative     9       6       —     $ 95       110  
Total   $ 12     $ 6     $ —     $ 95     $ 113  
                                         
Capital expenditures   $ 453     $ 58     $ —     $ 4     $ 515  

Nine months ended April 30, 2016   Clinical
Labs		     Life
Sciences		     Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 52,775       —       —       —     $ 52,775  
Product revenues     —     $ 22,266       —       —       22,266  
Royalty and license fee income     —       1,129       —       —       1,129  
      52,775       23,395       —       —       76,170  
Operating expenses:                                        
Cost of clinical laboratory services     32,009       —       —       —       32,009  
Cost of product revenues     —       10,663       —       —       10,663  
Research and development     —       2,002     $ 608       —       2,610  
Selling, general and administrative     16,943       8,709       —     $ 6,722       32,374  
Provision for uncollectible accounts receivable     1,787       (48 )     —       —       1,739  
Legal fee expense     120       (6 )     —       5,530       5,644  
Legal settlements, net     1,500       (19,950 )     —       —       (18,450 )
Total operating expenses     52,359       1,370       608       12,252       66,589  
                                         
Operating income (loss)     416       22,025       (608 )     (12,252 )     9,581  
                                         
Other income (expense):                                        
Interest     (75 )     38       —       (85 )     (122 )
Other     5       35       —       47       87  
Foreign exchange loss     —       (99 )     —       —       (99 )
Income (loss) before income taxes   $ 346     $ 21,999     $ (608 )   $ (12,290 )   $ 9,447  
                                         
Depreciation and amortization included above   $ 1,226     $ 1,568     $ —     $ 68     $ 2,862  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 5       —       —       —     $ 5  
Research and development     —       —       —       —       —  
Selling, general and administrative     33     $ 19       —     $ 313       365  
Total   $ 38     $ 19     $ —     $ 313     $ 370  
                                         
Capital expenditures   $ 1,122     $ 267     $ —     $ —     $ 1,389  

Nine months ended April 30, 2015   Clinical
Labs		     Life
Sciences		     Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 46,204       —       —       —     $ 46,204  
Product revenues     —     $ 23,631       —       —       23,631  
Royalty and license fee income     —       2,067       —       —       2,067  
      46,204       25,698       —       —       71,902  
Operating expenses:                                        
Cost of clinical laboratory services     29,100       —       —       —       29,100  
Cost of product revenues     —       11,292       —       —       11,292  
Research and development     —       1,887     $ 547       —       2,434  
Selling, general and administrative     15,090       8,886       —     $ 6,125       30,101  
Provision for uncollectible accounts receivable     1,820       (89 )     —       —       1,731  
Legal fee expense     174       (74 )     —       7,125       7,225  
Legal settlement, net     —       (170 )     —       —       (170 )
Total operating expenses     46,184       21,732       547       13,250       81,713  
                                         
Operating income (loss)     20       3,966       (547 )     (13,250 )     (9,811 )
                                         
Other income (expense):                                        
Interest     (63 )     13       —       (126 )     (176 )
Other     18       (34 )     —       44       28  
Foreign exchange loss     —       (856 )     —       —       (856 )
Income (loss) before income taxes   $ (25 )   $ 3,089     $ (547 )   $ (13,332 )   $ (10,815 )
                                         
Depreciation and amortization included above   $ 1,072     $ 1,656     $ 2     $ 67     $ 2,797  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 9       —       —       —     $ 9  
Research and development     —     $ 2       —       —       2  
Selling, general and administrative     30       9       —     $ 269       308  
Total   $ 39     $ 11     $ —     $ 269     $ 319  
                                         
Capital expenditures   $ 1,042     $ 122     $ —     $ 4     $ 1,168