Segment and Geographic Information

12 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment and Geographic Information

18.    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. The sale of the semiconductor automation business, which comprised the Semiconductor Solutions Group segment, was completed on February 1, 2022. Historical information has been adjusted to reflect the new reportable segments.

Within our Life Sciences Products segment, we have developed and continue to develop automated biological sample storage solutions for operating in low temperature environments. We have a complete line up of automated stores from ambient temperatures to -190°C. Our BioStore’s ™ unique design allows controlled temperature storage down to -80°C with the industry’s highest throughput of sample retrieval.

Within our Life Sciences Services segment, our genomics services business advances research and development activities by gene sequencing, synthesis, editing and related services. We offer a comprehensive, global portfolio that we believe has both broad appeal in the life sciences industry and enables customers to select the best solution for their research challenges. This portfolio also offers unique solutions for key markets such as cell and gene therapy, antibody development, and biomarker discovery by addressing genomic complexity and throughput challenges. Our sample repository solutions business is a global leader in sample 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, restructuring related charges and other special charges, such as impairment losses, 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 fiscal years ended September 30, 2022, 2021 and 2020 (in thousands):

		Year Ended September 30,
		2022		2021		2020
Revenue:
Life Sciences Products	$	199,230	$	199,606	$	129,759
Life Sciences Services		356,268		314,097		258,778
Total revenue	$	555,498	$	513,703	$	388,537
Operating income:
Life Sciences Products	$	11,033	$	23,094	$	(3,041)
Life Sciences Services		10,784		22,659		2,859
Reportable segment adjusted operating income		21,817		45,753		(182)
Amortization of completed technology		7,325		8,073		8,099
Restructuring related charges		—		13,364		301
Amortization of acquired intangible assets		24,965		29,299		27,276
Restructuring charges		712		385		674
Other unallocated corporate expenses		13,550		25,721		68
Total operating income		(24,735)		(31,089)		(36,600)
Interest income		20,286		632		849
Interest expense		(4,589)		(2,037)		(2,944)
Loss on extinguishment of debt		(632)		—		—
Other expenses		(266)		(16,475)		(1,597)
Loss before income taxes	$	(9,936)	$	(48,969)	$	(40,292)
Assets:		Life Sciences Products		Life Sciences Services		Total
September 30, 2022	$	378,790	$	849,603	$	1,228,393
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 amounts presented in the accompanying Consolidated Balance Sheets as of September 30, 2022 and 2021 (in thousands):

	September 30,		September 30,
	2022		2021
Segment assets	$	1,228,393	$	1,059,007
Cash and cash equivalents, restricted cash, and marketable securities		2,305,081		244,012
Deferred tax assets		1,169		10,043
Other assets		181,479		11,237
Assets held for sale		—		495,213
Total assets	$	3,716,122	$	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 fiscal years ended September 30, 2022, 2021 and 2020 are as follows (in thousands):

	Year Ended September 30,
	2022		2021		2020
Geographic Location:
North America	$	373,611	$	323,982	$	256,174
Europe		104,824		108,805		74,155
China		48,094		45,743		34,016
Asia Pacific/ Other		28,969		35,173		24,192
Total	$	555,498	$	513,703	$	388,537

The majority of the Company’s net revenue in North America is generated in the United States which amounted to $370.6 million, $320.8 million and $253.5 million, respectively, during fiscal years ended September 30, 2022, 2021 and 2020.

Property, plant and equipment by geographic area as of September 30, 2022 and 2021 are as follows (in thousands):

	September 30,
	2022		2021
North America	$	84,852	$	55,943
China		56,585		54,239
Europe		11,610		16,882
Asia / Pacific/ Other		1,423		3,655
	$	154,470	$	130,719

Property, plant and equipment located in the United States amounted to $84.8 million and $60.6 million, respectively, at September 30, 2022 and 2021.