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