Quarterly report pursuant to Section 13 or 15(d)

Note 3 - Segment Information

v3.5.0.2
Note 3 - Segment Information
 3 Months Ended
Sep. 30, 2016
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
Note 3. 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
 
 
 
September 30,
 
 
 
2016
 
 
2015
 
Net sales
                
Biotechnology
   $ 86,787     $ 75,743  
Diagnostics
     24,233       20,362  
Protein Platforms
     19,573       16,296  
Inter segment
     (12
)
     (20
)
Consolidated net sales
   $ 130,581     $ 112,381  
Segment operating income
                
Biotechnology
   $ 42,480     $ 39,316  
Diagnostics
     6,303       4,711  
Protein Platforms
     209       (1,172
)
Subtotal reportable segments
     48,992       42,855  
Cost recognized on sale of acquired inventory
     (4,221
)
     (1,112
)
Amortization of acquisition related intangible assets
     (10,188
)
     (7,411
)
Acquisition related expenses
     (4,369
)
     (301
)
Stock-based compensation
     (3,190
)
     (2,038
)
Corporate general and administrative
     (1,582
)
     (965
)
Consolidated operating income
   $ 25,442     $ 31,028