Segment Information And Geographic Data

9 Months Ended

Sep. 30, 2012

Segment Information And Geographic Data [Abstract]

Segment Information And Geographic Data

11.Segment Information and Geographic Data

The Company reports segment information based on the internal reporting used by management for evaluating segment performance based on management’s estimates of the appropriate allocation of resources to segments.

The Company operates and manages its business primarily on a geographic basis. Accordingly, the Company determined its operating and reporting segments, which are generally based on the nature and location of its customers, to be 1) China and 2) Rest of the World, including the US.

The Company evaluates the performance of its operating segments based on revenues and operating income (loss).  Revenues for geographic segments are generally based on the location of customers. Operating income for each segment includes revenues, related cost of sales and operating expenses directly attributable to the segment. Operating income (loss) for each segment excludes non-operating income and expense. The operating income (loss) for the China segment includes the impairment charge on the intangible asset. Operating income (loss) for the Rest of the World segment includes the change in the fair value of the contingent consideration and all research and development expense for the Company’s SCV-07 trial, which was discontinued in the first quarter of 2012.

Summary information by operating segment for the three- and nine-month periods ended September 30, 2012and 2011 is as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012		2011
China:
Revenues	$	39,675	$	36,391	$	117,560	$	89,667
Operating income (loss)	$	(29,414)	$	16,286	$	(3,528)	$	35,382
Rest of the World (including the US):
Revenues	$	1,011	$	1,034	$	2,582	$	2,528
Operating income (loss)	$	10,212	$	(5,971)	$	5,316	$	(18,602)

Long-lived assets as of September 30, 2012 by operating segmentare as follows (in thousands):

China	$	33,274
Rest of the World (including the US)		947
	$	34,221