Quarterly report pursuant to Section 13 or 15(d)

Note 3 - Segment Information

v3.4.0.3
Note 3 - Segment Information
 9 Months Ended
Mar. 31, 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. Prior period segment results, which reported segment earnings before income taxes, have been reclassified to reflect segment performance based on operating income.
 
The Company has three reportable segments based on the nature of products; they are Biotechnology, Clinical Controls and Protein Platforms. The following is financial information relating to the Company's reportable segments (in thousands):
 
 
 
Quarter Ended
March 31,
 
 
Nine Months Ended
March 31,
 
 
 
2016
 
 
2015
 
 
2016
 
 
2015
 
Net sales:
                                
Biotechnology
   $ 81,386     $ 78,521     $ 232,984     $ 229,347  
Clinical Controls
     29,929       20,001       76,013       56,417  
Protein Platforms
     19,693       15,669       55,327       49,061  
Intersegment
     (35
)
     (33
)
     (63
)
     (242
)
Consolidated net sales
     130,973       114,158       364,261       334,583  
                                 
Segment operating income:
                                
Biotechnology
     45,133       44,620       124,436       122,967  
Clinical Controls
     9,454       6,186       21,464       17,422  
Protein Platforms
     1,592       (1,710
)
     1,948       4,461  
Segment operating income
     56,179       49,096       147,848       144,850  
                                 
Costs recognized on sale of acquired inventory
     (1,082
)
     (897
)
     (3,439
)
     (5,252
)
Amortization of acquisition related intangible assets
     (7,276
)
     (6,751
)
     (22,048
)
     (19,337
)
Acquisition related expenses
     (1,313
)
     (335
)
     (2,284
)
     (3,906
)
Stock based compensation
     (2,317
)
     (1,288
)
     (6,676
)
     (4,725
)
Corporate general, selling, and administrative
     (664
)
     (399
)
     (2,820
)
     (2,408
)
Operating income
   $ 43,527     $ 39,426     $ 110,581     $ 109,222