| Segment Information |
Note 13. Segment Information:
The Company operates under two operating segments, Protein Sciences and Diagnostics and Spatial Biology.
The Company’s Protein Sciences segment is comprised of the reagent solutions division and analytical solutions division. Our Protein Sciences segment is a leading developer and manufacturer of high-quality biological reagents used in all aspects of life science research, diagnostics and cell and gene therapy. This segment also includes proteomic analytical tools, both manual and automated, that offer researchers and pharmaceutical manufacturers efficient and streamlined options for automated western blot and multiplexed ELISA workflow. No customer in the Protein Sciences segment accounted for more than 10% of the segment’s net sales for fiscal 2025, 2024, and 2023.
The Company’s Diagnostics and Spatial Biology segment is comprised of the diagnostics reagents division, spatial biology divsion, and molecular diagnostics division. Our Diagnostics and Spatial Biology segment develops and manufactures diagnostic products, including controls, calibrators, and diagnostic assays for the regulated diagnostics market, exosome-based molecular diagnostic assays, advanced tissue-based in-situ hybridization assays for spatial genomic and tissue biopsy analysis, and genetic and oncology kits for research and clinical applications. No customer in the Diagnostics and Spatial Biology segment accounted for more than 10% of the segment’s net sales for fiscal 2025, 2024, and 2023.
There are no concentrations of business transacted with a particular customer or supplier or concentrations of revenue from a particular product or geographic area that would severely impact the Company in the near term.
The Company discloses segment operating income as its measure of segment profit, reconciled to both total operating income and income before taxes. Business segment operating income excludes certain expenses and income that are not allocated to business segments (described below as unallocated amounts). Business segment disclosures consider information used by/provided to the Company’s chief operating decision maker (CODM). For the Company, the CODM is the Chief Executive Officer. The CODM uses segment operating income to allocate resources to segments in the planning and forecasting process along with periodic reviews of results and overall market activity.
The following is financial information relating to the operating segments (in thousands):
|
|
|
|
|
|
|
|
|
For the Year Ended June 30, 2025 |
|
|
Protein Sciences |
|
|
Diagnostics and Spatial Biology |
|
|
Total |
Net sales |
$ |
870,245 |
|
$ |
346,263 |
|
$ |
1,216,508 |
Other revenue(1) |
|
|
|
|
|
|
|
4,152 |
Intersegment |
|
|
|
|
|
|
|
(1,025) |
Consolidated net sales |
|
|
|
|
|
|
$ |
1,219,635 |
Segment operating income |
|
|
|
|
|
|
|
|
Cost of sales |
|
212,225 |
|
|
147,946 |
|
|
|
Selling, general and administrative |
|
229,058 |
|
|
136,103 |
|
|
|
Research and development |
|
58,609 |
|
|
40,890 |
|
|
|
Segment operating income |
$ |
370,353 |
|
$ |
21,324 |
|
$ |
391,677 |
Unallocated amounts |
|
|
|
|
|
|
|
|
Costs recognized on sale of acquired inventory |
|
|
|
|
|
|
|
(751) |
Amortization of intangibles |
|
|
|
|
|
|
|
(75,321) |
Acquisition related expenses and other |
|
|
|
|
|
|
|
(12,064) |
Certain litigation charges |
|
|
|
|
|
|
|
(41,827) |
Impairment of assets held-for-sale |
|
|
|
|
|
|
|
(80,503) |
Stock based compensation, inclusive of employer taxes |
|
|
|
|
|
|
|
(42,158) |
Restructuring and restructuring-related costs |
|
|
|
|
|
|
|
(28,231) |
Corporate general, selling, and administrative expenses |
|
|
|
|
|
|
|
(8,088) |
Impact of business held-for-sale(1) |
|
|
|
|
|
|
|
(479) |
Consolidated operating income |
|
|
|
|
|
|
$ |
102,255 |
| (1) |
Since December 31, 2023, the Company has a business that has met the held-for-sale criteria. Segment results exclude the results of this business held-for-sale for fiscal 2025. |
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|
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|
For the Year Ended June 30, 2024 |
|
|
Protein Sciences |
|
|
Diagnostics and Spatial Biology |
|
|
Total |
Net sales |
$ |
830,902 |
|
$ |
326,392 |
|
$ |
1,157,294 |
Other revenue(1) |
|
|
|
|
|
|
|
4,153 |
Intersegment |
|
|
|
|
|
|
|
(2,387) |
Consolidated net sales |
|
|
|
|
|
|
$ |
1,159,060 |
Segment operating income |
|
|
|
|
|
|
|
|
Cost of sales |
|
201,981 |
|
|
134,963 |
|
|
|
Selling, general and administrative |
|
217,235 |
|
|
127,131 |
|
|
|
Research and development |
|
56,911 |
|
|
39,752 |
|
|
|
Segment operating income |
$ |
354,775 |
|
$ |
24,546 |
|
$ |
379,321 |
Unallocated amounts |
|
|
|
|
|
|
|
|
Costs recognized on sale of acquired inventory |
|
|
|
|
|
|
|
(729) |
Amortization of intangibles |
|
|
|
|
|
|
|
(78,318) |
Acquisition related expenses and other |
|
|
|
|
|
|
|
(6,980) |
Certain litigation charges |
|
|
|
|
|
|
|
(3,506) |
Impairment of assets held-for-sale |
|
|
|
|
|
|
|
(21,963) |
Stock based compensation, inclusive of employer taxes |
|
|
|
|
|
|
|
(40,277) |
Restructuring and restructuring-related costs |
|
|
|
|
|
|
|
(12,245) |
Corporate general, selling, and administrative expenses |
|
|
|
|
|
|
|
(9,142) |
Impact of business held-for-sale(1) |
|
|
|
|
|
|
|
525 |
Consolidated operating income |
|
|
|
|
|
|
$ |
206,686 |
| (1) |
Since December 31, 2023, the Company has a business that has met the held-for-sale criteria. Segment results exclude the six-month results of this business held-for-sale for the period starting December 31, 2023 through June 30, 2024 while the business has met the held-for-sale criteria. |
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|
|
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|
|
For the Year Ended June 30, 2023 |
|
|
Protein Sciences |
|
|
Diagnostics and Spatial Biology |
|
|
Total |
Net sales |
$ |
845,747 |
|
$ |
292,602 |
|
$ |
1,138,349 |
Intersegment |
|
|
|
|
|
|
|
(1,647) |
Consolidated net sales |
|
|
|
|
|
|
$ |
1,136,702 |
Segment operating income |
|
|
|
|
|
|
|
|
Cost of sales |
|
209,332 |
|
|
113,517 |
|
|
|
Selling, general and administrative |
|
204,480 |
|
|
101,806 |
|
|
|
Research and development |
|
58,251 |
|
|
34,242 |
|
|
|
Segment operating income |
$ |
373,684 |
|
$ |
43,037 |
|
$ |
416,721 |
Unallocated amounts |
|
|
|
|
|
|
|
|
Costs recognized on sale of acquired inventory |
|
|
|
|
|
|
|
(400) |
Amortization of intangibles |
|
|
|
|
|
|
|
(76,413) |
Impact of partially-owned consolidated subsidiaries |
|
|
|
|
|
|
|
647 |
Acquisition related expenses and other |
|
|
|
|
|
|
|
9,965 |
Stock based compensation, inclusive of employer taxes |
|
|
|
|
|
|
|
(41,217) |
Restructuring and restructuring-related costs |
|
|
|
|
|
|
|
(3,829) |
Corporate general, selling, and administrative expenses |
|
|
|
|
|
|
|
(6,530) |
Consolidated operating income |
|
|
|
|
|
|
$ |
298,944 |
The Company has some integrated facilities that serve both segments. As such, asset and capital expenditure information by operating segment has not been provided and is not available, since the Company does not produce or utilize such information internally. In addition, although depreciation and amortization expense is a component of each operating segment’s operating results, it is not discretely identifiable.
The Company has disclosed sales by geographic area based on the location of the customer or distributor in Note 2. The Company has disclosed dis-aggregated product and service revenue by consumables, instruments, and services in Note 2. The Company considers total instrument and total service revenue to represent similar groups of products in the fiscal years presented. The Company considers our consumables sold in the Protein Sciences and Diagnostics and Spatial Biology segments to represent different groups of products and therefore have separately disclosed the related consumables revenue (in thousands):
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|
|
|
|
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|
Year Ended June 30, |
|
|
2025 |
|
2024 |
|
2023 |
Consumables revenue - Protein Sciences |
|
$ |
684,165 |
|
$ |
657,679 |
|
$ |
665,301 |
Consumables revenue - Diagnostics and Spatial Biology |
|
|
283,969 |
|
|
266,348 |
|
|
252,432 |
Consumables revenue - Other revenue(1) |
|
|
4,152 |
|
|
4,153 |
|
|
— |
Total consumable revenue |
|
$ |
972,286 |
|
$ |
928,180 |
|
$ |
917,733 |
| (1) |
Includes the results of a business that has met the held-for-sale criteria since December 31, 2023. |
The following is financial information relating to geographic areas (in thousands):
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|
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|
|
|
Year ended June 30, |
|
|
2025 |
|
2024 |
Long-lived assets: |
|
|
|
|
|
|
United States and Canada |
|
$ |
202,800 |
|
$ |
211,597 |
Europe |
|
|
36,030 |
|
|
27,862 |
Asia |
|
|
6,889 |
|
|
11,695 |
Total long-lived assets |
|
$ |
245,719 |
|
$ |
251,154 |
Intangible assets: |
|
|
|
|
|
|
United States and Canada |
|
$ |
301,971 |
|
$ |
443,740 |
Europe |
|
|
63,628 |
|
|
63,138 |
Asia |
|
|
— |
|
|
203 |
Total intangible assets |
|
$ |
365,599 |
|
$ |
507,081 |
Long-lived assets are comprised of land, buildings and improvements and equipment, net of accumulated depreciation.
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