11. SEGMENT REPORTING

12 Months Ended

Apr. 30, 2013

Segment Reporting [Abstract]

11. SEGMENT REPORTING

11. SEGMENT REPORTING

Our business is organized into two reportable operating segments and both operate in the U.S. Peregrine is engaged in the research and development of monoclonal antibodies for the treatment and diagnosis of cancer. Avid is engaged in providing contract manufacturing services for Peregrine and third-party customers on a fee-for-service basis.

The accounting policies of the operating segments are the same as those described in Note 2. We evaluate the performance of our contract manufacturing services segment based on gross profit or loss from third-party customers. However, our products in the research and development segment are not evaluated based on gross profit or loss, but rather based on scientific progress of the technologies. As such, gross profit or loss is only provided for our contract manufacturing services segment in the below table. All revenues shown below are derived from transactions with third-party customers.

Segment information is summarized as follows:

	2013			2012			2011
Contract manufacturing services revenue	$	21,333,000		$	14,783,000		$	8,502,000
Cost of contract manufacturing services		12,595,000			10,153,000			7,296,000
Gross profit	$	8,738,000		$	4,630,000		$	1,206,000
Revenue from products in research and development	$	350,000		$	450,000		$	4,990,000
Research and development expense		(24,306,000	)		(35,688,000	)		(29,462,000	)
Selling, general and administrative expense		(13,134,000	)		(11,462,000	)		(11,421,000	)
Other income (expense), net		268,000			(49,000	)		536,000
Loss on early extinguishment of debt		(1,696,000	)		–			–
Net loss	$	(29,780,000	)	$	(42,119,000	)	$	(34,151,000	)

Revenue generated from our contract manufacturing services segment was derived from a limited number of customers. The percentages below represent revenue derived from each customer as a percentage of total contract manufacturing services revenue:

	2013	2012	2011
United States (customer A)	81%	44%	56%
United States (customer B)	17	-	-
Germany (one customer)	-	17	24
Denmark (one customer)	-	25	19
Other customers	2	14	1
Total	100%	100%	100%

Revenue generated from our products in our research and development segment was derived from the following sources:

	2013		2012		2011
Government contract revenue1 (see Note 2)	$	–	$	–	$	4,640,000
License revenue		350,000		450,000		350,000
Total	$	350,000	$	450,000	$	4,990,000

⁽¹⁾ Represents revenue earned under a former government contract with the TMT of the U.S. Department of Defense’s Defense Threat Reduction Agency, which expired on April 15, 2011.

Our long-lived assets consist of leasehold improvements, laboratory equipment, and furniture, fixtures, office equipment and software and are net of accumulated depreciation. Long-lived assets by segment consist of the following:

	2013		2012
Long-lived Assets, net:
Contract manufacturing services	$	2,039,000	$	2,080,000
Products in research and development		639,000		820,000
Total	$	2,678,000	$	2,900,000