Reportable Segment and Major Concentrations Data

12 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Reportable Segment and Major Concentrations Data

(7) Reportable Segment and Major Concentrations Data

In the fourth quarter of fiscal 2013, we aggregated our Diagnostics operating segments into a single reportable segment, thereby resulting in our reportable segments being Diagnostics and Life Science, with segmentation between the two determined based upon the nature of products and the types of customers. This aggregation in the fourth quarter of fiscal 2013 is consistent with aggregation criteria and reflects the current manner in which management reviews and manages our business. In addition, we believe that it provides financial statement users with the information most conducive to analyzing and understanding our Company. The prior period information reflected herein has been conformed to the current period presentation.

The Diagnostics segment consists of manufacturing operations in Cincinnati, Ohio, and the sale and distribution of diagnostic test kits domestically and abroad. The Life Science segment consists of manufacturing operations in Memphis, Tennessee; Boca Raton, Florida; London, England; Luckenwalde, Germany; and Sydney, Australia, and the sale and distribution of bulk antigens, antibodies, PCR/qPCR reagents, nucleotides, competent cells and bioresearch reagents domestically and abroad. The Life Science segment also includes the contract development and manufacture of cGMP clinical grade proteins and other biologicals for use by biopharmaceutical and biotechnology companies engaged in research for new drugs and vaccines.

Sales to individual customers constituting 10% or more of consolidated net sales are as follows:

Year Ended September 30,	2013				2012				2011
Customer A	$	35,082	(19	)%	$	32,771	(19	)%	$	29,632	(19	)%
Customer B	$	25,457	(13	)%	$	19,903	(12	)%	$	18,308	(11	)%

Accounts receivable from these two Diagnostics distributor customers accounted for 17% and 14% of consolidated accounts receivable at September 30, 2013 and September 30, 2012, respectively. In addition, approximately 16% of the consolidated accounts receivable balance at September 30, 2013 is largely dependent upon funds from the Italian government. The Company’s international sales totaled $56,224, $54,909, and $54,047 in fiscal years 2013, 2012 and 2011, respectively. Our diagnostic focus product families – C. difficile, foodborne and H. pylori – accounted for 47%, 47% and 44% of consolidated net sales in fiscal 2013, 2012 and 2011, respectively. We currently sole-source from a U.S. manufacturer the illumipro-10™ instrument on which our illumigene molecular testing platform operates. Additionally, two of our foodborne products sourced from another vendor accounted for 14%, 13% and 12% of third-party sales for our Diagnostics segment in fiscal 2013, 2012 and 2011, respectively.

Significant sales information by country for the Diagnostics and Life Science segments is as follows. Sales are attributed to the geographic area based on the location to which the product is delivered.

Year Ended September 30,	2013		2012		2011
United States	$	114,935	$	99,998	$	89,078
Italy		7,427		7,473		8,544
United Kingdom		2,141		2,441		2,373
France		1,936		2,149		2,537
Holland		1,764		1,818		2,142
Belgium		1,285		1,271		1,289
Canada		1,248		941		892
Other countries		13,893		14,089		13,578
Total Diagnostics	$	144,629	$	130,180	$	120,433
Year Ended September 30,	2013		2012		2011
United States	$	17,527	$	17,805	$	15,711
Germany		6,465		4,872		4,922
United Kingdom		5,590		5,251		4,890
Australia		3,454		3,423		3,105
France		1,440		1,282		1,111
Other countries		9,581		9,899		8,664
Total Life Science	$	44,057	$	42,532	$	38,403

Identifiable assets for our Italian distribution organization were $10,760 and $12,537 at September 30, 2013 and 2012, respectively. At September 30, 2013, identifiable assets for the Bioline Group’s operations in the U.K., Germany and Australia totaled approximately $14,220, $7,965 and $4,239, respectively; and totaled $13,464, $6,684 and $4,568, respectively, at September 30, 2012.

Segment information for the years ended September 30, 2013, 2012 and 2011 is as follows:

	Diagnostics		Life Science		Elim (1)			Total
Fiscal Year 2013—
Net sales –
Third-party	$	144,629	$	44,057	$	—		$	188,686
Inter-segment		533		1,223		(1,756	)		—
Operating income		46,735		10,627		(48	)		57,314
Depreciation and amortization		4,328		2,824		—			7,152
Capital expenditures		2,031		1,203		—			3,234
Goodwill		1,250		21,865		—			23,115
Other intangible assets		1,561		6,496		—			8,057
Total assets		112,054		110,111		(45,417	)		176,748
Fiscal Year 2012—
Net sales –
Third-party	$	130,180	$	42,532	$	—		$	172,712
Inter-segment		599		1,097		(1,696	)		—
Operating income (2)		40,648		8,473		175			49,296
Depreciation and amortization		3,732		2,865		—			6,597
Capital expenditures		2,341		1,189		—			3,530
Goodwill		1,250		21,896		—			23,146
Other intangible assets		2,239		8,025		—			10,264
Total assets		96,928		101,706		(37,253	)		161,381
Fiscal Year 2011—
Net sales –
Third-party	$	120,433	$	38,403	$	—		$	158,836
Inter-segment		152		756		(908	)		—
Operating income (3)		37,698		2,595		(260	)		40,033
Depreciation and amortization		2,970		2,903		—			5,873
Capital expenditures		5,041		4,098		—			9,139
Goodwill		1,381		21,743		—			23,124
Other intangible assets		1,604		9,343		—			10,947
Total assets		104,179		92,467		(41,153	)		155,493

(1) Eliminations consist of intersegment transactions.

(2) Life Science includes $1,013 related to consolidation of the Maine operations into the Tennessee facility.

(3) Diagnostics includes $1,240 related to sales and marketing leadership reorganization costs; and Life Science includes $1,057 related to consolidation of the Maine operations into the Tennessee facility.

A reconciliation of segment operating income to consolidated earnings before income taxes for the years ended September 30, 2013, 2012 and 2011 is as follows:

Year Ended September 30,	2013		2012		2011
Segment operating income	$	57,314	$	49,296	$	40,033
Interest income		44		42		115
Other, net		4		378		352
Consolidated earnings before income taxes	$	57,362	$	49,716	$	40,500

Transactions between segments are accounted for at established intercompany prices for internal and management purposes with all intercompany amounts eliminated in consolidation.