Business Segment Information

3 Months Ended

Mar. 31, 2013

Business Segment Information [Abstract]

Business Segment Information

7. Business Segment Information

We operate our business within two reportable segments: our “OSUR” business, which consists of the development, manufacture and sale of oral fluid diagnostic products and specimen collection devices and the manufacture and sale of medical devices used for the removal of benign skin lesions by cryosurgery; and our molecular collection systems or “DNAG” business, which consists of the manufacture, development and sale of oral fluid collection devices that are used to collect, stabilize and store samples of genetic material for molecular testing. OSUR revenues are derived primarily from products sold in the United States and internationally to various clinical laboratories, hospitals, clinics, community-based organizations and other public health organizations, distributors, government agencies, physicians’ offices, and commercial and industrial entities. In the fourth quarter of 2012, OSUR began selling a product in the domestic OTC marketplace. OSUR also derives revenues from licensing and product development activities. DNAG revenues result primarily from products sold into the academic research market, consisting of research laboratories, universities and hospitals, as well as products sold into the commercial market consisting of companies and other entities engaged in clinical genetic testing, pharmacogenomics, personalized medicine, and animal and livestock genetic testing.

We organized our operating segments according to the nature of the products included in those segments. The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 2). We evaluate performance of our operating segments based on revenue and operating loss. We do not allocate interest income, interest expense, other income, other expenses or income taxes to our operating segments. Reportable segments have no inter-segment revenues.

The following table summarizes segment information for the three months ended March 31, 2013 and 2012.

	Three Months Ended March 31,
	2013			2012
Net revenues:
OSUR	$	17,232		$	17,646
DNAG		3,932			3,298
Total	$	21,164		$	20,944
Operating loss:
OSUR	$	(10,040	)	$	(2,748	)
DNAG		(549	)		(904	)
Total	$	(10,589	)	$	(3,652	)
Depreciation and amortization:
OSUR	$	777		$	889
DNAG		825			920
Total	$	1,602		$	1,809
Capital expenditures:
OSUR	$	243		$	267
DNAG		237			39
Total	$	480		$	306
	March 31, 2013			December 31, 2012
Total assets:
OSUR	$	129,187		$	137,544
DNAG		52,849			54,181
Total	$	182,036		$	191,725

Our products are sold principally in the United States, Canada and Europe.

The following table represents total revenues by geographic area, based on the location of the customer:

	Three Months Ended March 31,
	2013		2012
United States	$	16,040	$	15,636
Europe		2,846		2,798
Other regions		2,278		2,510
	$	21,164	$	20,944

The following table represents total long-lived assets by geographic area:

	March 31, 2013		December 31, 2012
United States	$	17,484	$	17,868
Canada		740		589
Other regions		73		89
	$	18,297	$	18,546