Quarterly report pursuant to Section 13 or 15(d)

Segment reporting

v2.4.0.6
Segment reporting
 9 Months Ended
Apr. 30, 2013
Segment Reporting Disclosure [Text Block]

Note 10 – 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, 2012.


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


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     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 income (loss)     —       (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  

Three months ended April 30, 2012
    Clinical
Labs 		    Life
Sciences 		    Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 15,242       —       —       —     $ 15,242  
Product revenues     —     $ 9,574       —       —       9,574  
Royalty and license fee income     —       1,133       —       —       1,133  
      15,242       10,707       —       —       25,949  
Operating expenses:                                        
Cost of clinical laboratory services     9,204       —       —       —       9,204  
Cost of product revenues     —       4,689       —       —       4,689  
Research and development     109       940     $ 539       —       1,588  
Selling, general and administrative     5,301       4,369       —     $ 2,184       11,854  
Provision for uncollectible accounts receivable     1,153       40       —       —       1,193  
Legal     102       27       —       814       943  
Total operating expenses     15,869       10,065       539       2,998       29,471  
                                         
Operating income (loss)     (627 )     642       (539 )     (2,998 )     (3,522 )
                                         
Other income (expense)                                        
Interest     (2 )     (16 )     —       —       (18 )
Other     9       —       —       6       15  
Foreign currency gain (loss)     —       80       —       —       80  
Income (loss) before income taxes   $ (620 )   $ 706     $ (539 )   $ (2,992 )   $ (3,445 )
                                         
Depreciation and amortization included above   $ 275     $ 710     $ 11     $ 31     $ 1,027  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 3       —       —       —     $ 3  
Research and development     —     $ 1       —       —       1  
Selling, general and administrative     16       10       —     $ 138       164  
Total   $ 19     $ 11       —     $ 138     $ 168  
                                         
Capital expenditures   $ 264     $ 177     $ —     $ —     $ 441  

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


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     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 income (loss)     —       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  

Nine months ended April 30, 2012
    Clinical
Labs 		    Life
Sciences 		    Therapeutics     Other     Consolidated  
Revenues:                                        
Clinical laboratory services   $ 43,552       —       —       —     $ 43,552  
Product revenues     —     $ 28,819       —       —       28,819  
Royalty and license fee income     —       4,302       —       —       4,302  
      43,552       33,121       —       —       76,673  
Operating expenses:                                        
Cost of clinical laboratory services     26,728       —       —       —       26,728  
Cost of product revenues     —       14,511       —       —       14,511  
Research and development     224       3,125     $ 1,567       —       4,916  
Selling, general and administrative     15,322       13,824       —     $ 6,581       35,727  
Provision for uncollectible accounts receivable     3,571       77       —       —       3,648  
Legal     214       529       —       2,092       2,835  
Total operating expenses     46,059       32,066       1,567       8,673       88,365  
                                         
Operating income (loss)     (2,507 )     1,055       (1,567 )     (8,673 )     (11,692 )
                                         
Other income (expense)                                        
Interest     (3 )     (3 )     —       —       (6 )
Other     33       42       —       19       94  
Foreign currency gain (loss)     —       (243 )     —       —       (243 )
Income (loss) before income taxes   $ (2,477 )   $ 851     $ (1,567 )   $ (8,654 )   $ (11,847 )
                                         
Depreciation and amortization included above   $ 810     $ 2,350     $ 33     $ 93     $ 3,286  
                                         
Share-based compensation included in above:                                        
Cost of clinical laboratory services   $ 8       —       —       —     $ 8  
Research and development     —     $ 4       —       —       4  
Selling, general and administrative     41       51       —     $ 491       583  
Total   $ 49     $ 55       —     $ 491     $ 595  
                                         
Capital expenditures   $ 695     $ 284     $ —     $ —     $ 979