Segment and Geographic Information

3 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segment and Geographic Information

14. 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.

The Company’s Life Sciences Products segment provides automated cold storage solutions for biological and chemical compound samples. The Company’s storage systems provide reliable automation and sample inventory management at temperatures down to -190°C and can store anywhere from one to millions of samples. The Company’s sample management solutions include consumable vials and tubes, polymerase chain reaction, or PCR, plates, instruments for supporting workflows, and informatics. This portfolio provides customers with the highest level of sample quality, security, availability, intelligence, and integrity throughout the lifecycle of samples providing customers with complete end-to-end “cold-chain of custody” capabilities. The Company also provides controlled rate thawing devices for customers in the medical, biotech and pharmaceutical industries. On October 3, 2022, the Company acquired B Medical Systems S.a.r.l, a market leader in temperature-controlled storage and transportation solutions that enables the delivery of life-saving treatments to people in more than 150 countries worldwide.

The Company’s Life Sciences Services business is a leading provider of solutions addressing the many needs of customers in the area of genomic analysis and the management and care of biological samples used in pharmaceutical, biotech, healthcare, clinical, and academic research and development markets. The Company’s processes millions of samples every year, each containing valuable information that must be preserved with the sample. The Company’s genomic services provide a broad capability to customers for sequencing and synthesis of genes. The Company’s sample management services include off-site storage services, transport services, laboratory services, and interactive informatics solutions. The Company also provides expert-level consultation services to our clients throughout their experimental

design and implementation. The Company’s services also include short- and long-term sample storage and management of the “cold chain of custody” from collection, to storage, to retrieving the sample which ultimately may go back into the research workflow.

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, 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, 2022 and 2021 (in thousands):

	Three Months Ended December 31,
	2022		2021
Revenue:
Life Sciences Products	$	89,661	$	49,877
Life Sciences Services		88,706		89,775
Total revenue	$	178,366	$	139,652
Operating income / (loss):
Life Sciences Products	$	(3,798)	$	4,388
Life Sciences Services		(4,612)		7,883
Reportable segment adjusted operating income		(8,410)		12,271
Amortization of completed technology		4,168		1,773
Purchase accounting impact on inventory		2,869		—
Amortization of other intangible assets		7,372		6,272
Restructuring charges		1,461		173
Other unallocated corporate expenses		3,405		4,378
Total operating loss		(27,685)		(325)
Interest income		10,708		35
Interest expense		(43)		(455)
Other income (expense)		1,145		(1,077)
Loss before income taxes	$	(15,875)	$	(1,822)
Assets:		Life Sciences Products		Life Sciences Services
December 31, 2022	$	886,409	$	887,310
September 30, 2022		378,790		849,603

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, 2022 and September 30, 2022 (in thousands):

	December 31,		September 30,
	2022		2022
Segment assets	$	1,773,719	$	1,228,393
Cash and cash equivalents, restricted cash, and marketable securities		1,443,424		2,305,081
Deferred tax assets		298		1,169
Other assets		74,975		181,479
Total assets	$	3,292,416	$	3,716,122

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, 2022 and 2021 (in thousands) are as follows:

		Three Months Ended December 31,
	2022		2021
Geographic Location:
North America	$	88,935	$	90,083
Rest of Europe		39,422		19,700
Africa		17,210		548
China		13,408		13,041
Asia Pacific/ Other		13,978		7,968
United Kingdom		5,413		8,312
Total	$	178,366	$	139,652

Revenue for the United States comprises 99% of the revenue for North America for the three months ended December 31, 2022 and 2021.