Segment Reporting

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Reporting

12. Segment Reporting

Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance.

The Company develops, manufactures and sells products that unlock genetic information from very small amounts of tissue. The Company is organized as, and operates in, two reportable segments: life sciences segment and diagnostics segment. The life sciences business provides instruments, consumables and services to researchers in the life sciences industry. The diagnostics business provides instruments and molecular diagnostic kits to pathology labs enabling complex molecular testing on a distributed basis.

The Company’s chief operating decision maker is the chief executive officer. The chief operating decision maker reviews financial information presented on a total Company basis, accompanied by information about segment revenue and certain direct sales and marketing expenses by segment. The chief operating decision maker does not review segment information related to cost of revenue, research and development or other selling, general and administrative expenses. The Company’s chief operating decision maker evaluates performance based on these two measures.

Operating results for each segment and a reconciliation of segment profit to loss from operations are as follows (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Product revenue:
Instruments	$	3,267		$	2,183		$	7,226		$	6,262
Consumables		4,376			3,568			12,380			9,325
Service revenue		420			284			1,148			893
Total life sciences segment		8,063			6,035			20,754			16,480
Diagnostics segment
Instruments		285			—			488			—
Consumables		41			—			41			—
Total diagnostics segment		326			—			529			—
Total revenue		8,389			6,035			21,283			16,480
Selling, general, and administrative expenses:
Life sciences segment		3,024			1,900			7,869			5,174
Diagnostics segment		1,313			969			3,993			1,486
Life sciences segment profit		5,039			4,135			12,885			11,306
Diagnostics segment loss		(987	)		(969	)		(3,464	)		(1,486	)
Total segment profit		4,052			3,166			9,421			9,820
Adjustments:
Cost of revenue		(3,784	)		(3,086	)		(10,188	)		(9,076	)
Research and development expenses		(3,784	)		(3,085	)		(10,469	)		(8,253	)
Unallocated selling, general and administrative expenses		(3,651	)		(1,301	)		(8,960	)		(3,928	)
Loss from operations	$	(7,167	)	$	(4,306	)	$	(20,196	)	$	(11,437	)

The following table is based on the geographic location of distributors or end users who purchased products and services. For sales to distributors, their geographic location may be different from the geographic locations of the ultimate end user. Revenue by geography was as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
North America	$	5,333	$	4,749	$	15,028	$	11,809
Europe & Middle East		1,592		865		3,702		2,863
Asia Pacific		1,464		421		2,553		1,808
Total revenue	$	8,389	$	6,035	$	21,283	$	16,480

All diagnostic segment revenue was realized for Europe and the Middle East for both the three and nine month periods ended September 30, 2013.

Total revenue in the United States was $5.0 million, $4.5 million, $13.0 million and $11.2 million for the three and nine month periods ended September 30, 2013 and 2012, respectively.

The Company’s assets are primarily located in the United States and not allocated to any specific segment or geographic region. Substantially all of the Company’s long-lived assets are located in the United States.