Quarterly report pursuant to Section 13 or 15(d)

Note 11 - Segment Information

v3.6.0.2
Note 11 - Segment Information
6 Months Ended
Dec. 31, 2016
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
 
 
Six Months Ended
 
 
 
December 31,
 
 
December 31,
 
 
 
2016
 
 
2015
 
 
2016
 
 
2015
 
Net sales:
                               
Biotechnology
  $
85,953
    $
75,854
    $
172,740
    $
151,597
 
Diagnostics
   
24,330
     
25,723
     
48,563
     
46,085
 
Protein Platforms
   
21,548
     
19,337
     
41,121
     
35,634
 
Intersegment
   
(24
)
   
(7
)
   
(36
)
   
(28
)
Consolidated net sales
  $
131,807
    $
120,907
    $
262,388
    $
233,288
 
Segment operating income:
                               
Biotechnology
  $
39,474
    $
39,986
    $
81,954
    $
79,302
 
Diagnostics
   
5,801
     
7,297
     
12,104
     
12,010
 
Protein Platforms
   
1,843
     
1,528
     
2,052
     
356
 
Subtotal reportable segments
   
47,118
     
48,811
     
96,110
     
91,668
 
Costs recognized on sale of acquired inventory
   
(3,848
)
   
(1,245
)
   
(8,069
)
   
(2,357
)
Amortization of acquisition related intangible assets
   
(11,627
)
   
(7,361
)
   
(21,815
)
   
(14,772
)
Acquisition related expenses
   
(10,732
)
   
(670
)
   
(15,101
)
   
(970
)
Stock based compensation
   
(4,055
)
   
(2,321
)
   
(7,245
)
   
(4,359
)
Corporate general, selling, and administrative
   
(710
)
   
(1,189
)
   
(2,293
)
   
(2,156
)
Consolidated operating income
  $
16,146
    $
36,025
    $
41,587
    $
67,054