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