Segment and Geographic Information

3 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment and Geographic Information

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 in deciding how to allocate resources and to assess performance. The Company’s Chief Executive Officer is the Company’s chief operating decision maker.

The Company operates in two reportable segments: the Life Sciences Products segment and the Life Sciences Services segment. These reportable segments also represent the Company’s operating segments. The Company previously operated in three reportable segments: the Semiconductor Solutions Group segment, the Life Sciences Products segment, and the Life Sciences Services segment. As discussed in Note 3, “Discontinued Operations”, our Semiconductor Solutions Group reportable segment has been classified as a discontinued operation. Historical information has been adjusted to reflect the new reportable segments.

The Life Sciences Products segment provides automated cold sample management systems for compound and biological sample storage, equipment for sample preparation and handling, consumables, and instruments, that help customers manage samples throughout their research discovery and development workflows. The segment’s product offerings include automated cold storage systems, cryogenic storage systems, consumables and instruments and the associated services business for these products.

The Life Sciences Services segment provides comprehensive sample management programs, integrated cold chain solutions, informatics, as well as sample-based laboratory services to advance scientific research and support drug development. The segment’s service offerings include sample storage, genomic sequencing, gene synthesis, laboratory processing services, laboratory analysis, biospecimen procurement services and other support services which are provided to a wide range of life science customers, including pharmaceutical companies, biotechnology companies, biorepositories and research institutes. Our Sample Repository Solutions business is a global leader in sample and material storage and management and provides a full suite of reliable cold and ultra-cold chain solutions.

The Company considers adjusted operating income, which excludes charges related to amortization of completed technology, the acquisition accounting impact on inventory contracts acquired, restructuring related charges and other special charges, such as impairment losses, in as the primary performance metric when evaluating the business.

The following is the summary of the financial information for the Company’s reportable segments for the three months ended December 31, 2021 and 2020 (in thousands):

			Three Months Ended December 31,
			2021		2020
Revenue:
Life Sciences Products			$	49,877	$	45,508
Life Sciences Services				89,775		72,634
Total revenue			$	139,652	$	118,142
Operating income:
Life Sciences Products			$	4,388	$	4,183
Life Sciences Services				7,883		6,928
Reportable segment adjusted operating income				12,271		11,112
Amortization of completed technology				1,773		2,005
Amortization of other intangible assets				6,272		6,905
Restructuring charges				173		(40)
Other unallocated corporate expenses (income)				4,378		1,885
Total operating (loss) income				(325)		356
Interest income				35		76
Interest expense				(455)		(557)
Other income (expenses), net				(1,077)		1,281
(Loss) income before income taxes			$	(1,822)	$	1,156
Assets:		Life Sciences Products		Life Sciences Services		Total
December 31, 2021	$	285,958	$	797,603	$	1,083,561
September 30, 2021		278,769		780,238		1,059,007

The following is a reconciliation of the Company’s reportable segments’ segment assets to the corresponding amounts presented in the accompanying unaudited Consolidated Balance Sheets as of December 31, 2021 and September 30, 2021 (in thousands):

	December 31,		September 30,
	2021		2021
Segment assets	$	1,083,561	$	1,059,007
Cash and cash equivalents, restricted cash, and marketable securities		231,817		244,012
Deferred tax assets		13,845		10,043
Other assets		15,019		11,237
Assets held for sale		510,695		495,213
Total assets	$	1,854,937	$	1,819,512

Revenue from external customers is attributed to geographic areas based on locations in which customer orders are placed. Net revenue by geographic area for the three months ended December 31, 2021 and 2020 (in thousands) are as follows:

		Three Months Ended December 31,
	2021		2020
Geographic Location:
North America		90,087		73,588
Europe		28,594		25,836
Asia / Pacific/ Other		20,971		18,718
Total	$	139,652	$	118,142