Quarterly report pursuant to Section 13 or 15(d)

Note 11 - Segment Information

v3.7.0.1
Note 11 - Segment Information
9 Months Ended
Mar. 31, 2017
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
Note
11.
Segment Information:
 
The Company's management evaluates segment operating performance based on operating income before certain charges to cost of sales and selling, general and administrative expenses, principally associated with acquisition accounting related to inventory, amortization of acquisition-related intangible assets and other acquisition-related expenses.
 
Beginning in the
first
quarter of fiscal
2017,
the Clinical Controls segment has been renamed Diagnostics. Our original business in this segment was focused on controls and calibrators for hematology clinical instruments. With the acquisition of Bionostics in fiscal
2014
and Cliniqa in fiscal
2016,
we expanded this segment to include blood chemistry and blood gases quality controls as well as other bulk and custom reagents for the in vitro diagnostic market. We renamed the operating segment to reflect this expanded portfolio of products.
 
The following is financial information relating to the Company's reportable segments (in thousands):
 
 
 
Quarter Ended
 
 
Nine Months Ended
 
 
 
March 31,
 
 
March 31,
 
 
 
2017
 
 
2016
 
 
2017
 
 
2016
 
Net sales:
                               
Biotechnology
  $
94,516
    $
81,386
    $
267,256
    $
232,984
 
Diagnostics
   
25,978
     
29,929
     
74,542
     
76,013
 
Protein Platforms
   
23,586
     
19,693
     
64,707
     
55,327
 
Intersegment
   
(43
)
   
(35
)
   
(80
)
   
(63
)
Consolidated net sales
  $
144,037
    $
130,973
    $
406,425
    $
364,261
 
Segment operating income:
                               
Biotechnology
  $
45,242
    $
45,133
    $
127,195
    $
124,436
 
Diagnostics
   
6,004
     
9,454
     
18,108
     
21,464
 
Protein Platforms
   
3,256
     
1,592
     
5,308
     
1,948
 
Subtotal reportable segments
   
54,502
     
56,179
     
150,611
     
147,848
 
Costs recognized on sale of acquired inventory
   
(3,136
)
   
(1,082
)
   
(11,205
)
   
(3,439
)
Amortization of acquisition related intangible assets
   
(11,689
)
   
(7,276
)
   
(33,504
)
   
(22,048
)
Acquisition related expenses
   
(2,691
)
   
(1,313
)
   
(17,792
)
   
(2,284
)
Stock based compensation
   
(3,974
)
   
(2,317
)
   
(11,219
)
   
(6,676
)
Corporate general, selling, and administrative
   
(707
)
   
(664
)
   
(2,999
)
   
(2,820
)
Consolidated operating income
  $
32,305
    $
43,527
    $
73,892
    $
110,581