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Business Segments
9 Months Ended
Sep. 30, 2013
Segment Reporting [Abstract]  
Business Segments
Business Segments
We operate our business on the basis of two reportable segments: Sequenom Center for Molecular Medicine, doing business as Sequenom Laboratories, and Sequenom Bioscience.
Sequenom Laboratories provides laboratory testing services with a focus principally on prenatal diseases and conditions. Services revenues from our Sequenom Laboratories segment are primarily derived from providing testing services using Sequenom Laboratories' LDTs. Revenues from our Sequenom Laboratories segment are generated primarily from customers located within the United States. 
Our Sequenom Bioscience segment provides technologies and tools for translational research, oncology, agricultural genomics and clinical diagnostics. Sequenom Bioscience's proprietary MassARRAY System is a high-performance MALDI-TOF mass spectrometry-based DNA analysis platform that delivers reliable and specific data from biological samples and from genetic target material that is only available in trace amounts. Product sales, services and contract research revenues from our Sequenom Bioscience segment are primarily derived from sales of our MassARRAY systems, which are comprised of hardware, software applications, consumable chips and reagents, as well as the provision of contract research services, to clinical research laboratories, bioagriculture, biotechnology and pharmaceutical companies, academic institutions and government agencies. Revenues from our Sequenom Bioscience segment are generated primarily from customers located in North America, and customers and distributors located in Europe and Asia.
In September 2013, we announced that our board of directors authorized a review of potential strategic alternatives for our Sequenom Bioscience business segment, which includes the evaluation of a full range of strategic alternatives for this business, including, but not limited to, a possible sale of the business or joint venture involving the business. We have retained Jefferies LLC as our financial advisor to assist in this evaluation.
Segment performance assessment is based on revenue and operating income (loss) exclusive of certain unallocated costs, including corporate general and administrative expenses, litigation expense, other indirect costs, impairment and facility exit costs and certain other costs, which are not allocated to our segments for performance assessment by our chief operating decision maker. Unallocated operating expenses excluded from our segments for performance assessment represent expenses that do not reflect, according to criteria established by us, operating expenses associated with our reportable segment activities.
Intersegment revenues and transfers were immaterial during the periods presented.
Revenues and operating income (loss) by segment are as follows (in thousands):
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2013
 
2012
 
2013
 
2012
Revenues:
 
 
 
 
 
 
 
Sequenom Laboratories
$
33,268

 
$
12,501

 
$
86,877

 
$
25,391

Sequenom Bioscience
10,683

 
10,352

 
30,423

 
30,634

Total revenues
$
43,951

 
$
22,853

 
$
117,300

 
$
56,025

 
 
 
 
 
 
 
 
Operating income (loss):
 
 
 
 
 
 
 
Sequenom Laboratories
$
(9,552
)
 
$
(19,694
)
 
$
(40,562
)
 
$
(54,379
)
Sequenom Bioscience
1,445

 
843

 
2,527

 
1,595

Unallocated
(17,948
)
 
(10,810
)
 
(43,722
)
 
(30,304
)
Total loss from operations
$
(26,055
)
 
$
(29,661
)
 
$
(81,757
)
 
$
(83,088
)