Note 15 - Segment and Geographic Information

3 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

15. Segment and Geographic Information

Operating segments are defined as components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker (“CODM”) in deciding how to allocate resources and to assess performance. The Company’s Chief Executive Officer is the Company’s CODM.

As of November 12, 2024, the Company’s B Medical Systems segment met the “held for sale” criteria and “discontinued operations” criteria in accordance with FASB ASC 205 and the results of the B Medical Systems segment are included within discontinued operations. 

The Company’s continuing operations includes the following operating and reportable segments:

● Sample Management Solutions. The SMS business resources operate as a single business unit offering end-to-end sample management products and services, including: Sample Repository Services and Core Products (Automated Stores, Cryogenic Systems, Automated Sample Tube, Consumables and Instruments and Controlled Rate Thawing Devices).

● Multiomics. The Multiomics business resources operate as a single business unit offering genomic and other sample analysis services, including gene sequencing and gene synthesis.

Management considers adjusted operating income (loss), which excludes charges related to amortization of intangible assets, transformation costs, restructuring charges, goodwill and intangible asset impairment, merger and acquisition costs and costs related to share repurchase, governance-related matters, and other unallocated corporate expenses, as the primary performance metric when evaluating each segment’s operations.

The following is the summary of the financial information for the Company’s operating and reportable segments for the three months ended December 31, 2024 and 2023 (in thousands):

	Three Months Ended December 31,
	2024			2023
Revenue:
Sample Management Solutions	$	81,213		$	79,005
Multiomics		66,297			62,720
Total revenue	$	147,510		$	141,725
Adjusted operating income (loss):
Sample Management Solutions	$	2,317		$	(616	)
Multiomics		(2,503	)		(3,263	)
Segment adjusted operating loss		(186	)		(3,879	)
Amortization of completed technology		1,500			1,856
Amortization of intangible assets other than completed technology		4,573			5,371
Transformation costs (1)		3,046			41
Restructuring charges		431			786
Merger and acquisition costs and costs related to share repurchase (2)		1,570			4,321
Other unallocated corporate expenses		47			(9	)
Total operating loss		(11,353	)		(16,245	)
Interest income, net		4,298			9,955
Other income, net		1,203			518
Loss before income taxes	$	(5,852	)	$	(5,772	)

(1) Transformation costs represent non-recurring expenses for strategic projects with anticipated long-term benefits to the Company focused on cost reduction and productivity improvement that do not meet the definition of restructuring charges. These costs are directed at simplifying, standardizing, streamlining, and optimizing the Company’s operations, processes and systems to permanently alter the Company’s operations for the long term. For a project to be considered transformational, successful completion of the project must be expected to bring long-term material benefits to the organization and involve significant changes to process and/or underlying technology. Transformation costs in the period result from actions taken as part of the Company’s 2024 transformation plan and primarily relate to one time asset write downs associated with changes in technology, one time inventory write downs relating to restructuring actions taken in the period, and third-party consulting costs associated with process and systems re-design.

(2) Includes expenses related to governance-related matters.

The following is the summary of the asset information for the Company’s reportable segments as of December 31, 2024 and  September 30, 2024 (in thousands):

Assets:	December 31, 2024		September 30, 2024
Sample Management Solutions	$	840,580	$	859,353
Multiomics		454,958		462,825
Total assets	$	1,295,538	$	1,322,178

The following is a reconciliation of the segment assets to the corresponding amounts presented in the Condensed Consolidated Balance Sheets as of December 31, 2024 and  September 30, 2024 (in thousands):

	December 31,		September 30,
	2024		2024
Segment assets	$	1,295,538	$	1,322,178
Cash and cash equivalents, restricted cash and marketable securities		501,277		490,707
Deferred tax assets		627		837
General corporate assets		12,591		23,631
Assets held for sale		231,177		262,688
Total assets	$	2,041,210	$	2,100,041

Revenue from external customers is attributed to geographic areas based on locations in which the product is shipped. Net revenue by geographic area for the three months ended December 31, 2024 and 2023 are as follows (in thousands):

	Three Months Ended December 31,
	2024		2023
Geographic Location:
United States	$	93,469	$	90,127
China		14,888		14,898
United Kingdom		7,798		5,676
Rest of Europe		24,319		22,731
Asia Pacific/Other		7,036		8,293
Total revenue	$	147,510	$	141,725

For the three months ended December 31, 2024 and 2023, the Company did not have any individual customers that accounted for 10% or more of its consolidated revenue. As of  December 31, 2024, one customer within the SMS segment accounted for 12% of the Company’s accounts receivable balance. As of September 30, 2024, there were no customers that accounted for more than 10% of the Company's accounts receivable balance.