Segment and Geographic Information

3 Months Ended

Dec. 31, 2023

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

As previously announced, effective October 1, 2023, the Company realigned its organizational structure to three principal business segments to enhance its commercial strategy for accelerating growth and to enable additional profitability initiatives. These segments align with changes in how the Company’s chief operating decision maker manages the business, allocates resources, and assesses performance. The Company’s operating and reportable segments consist of the following:

● Sample Management Solutions (“SMS”). Sample Management Solutions operates 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, and Consumables and Instruments).

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

● B Medical Systems. B Medical Systems business resources operate as a single business unit focused on the manufacturing and distribution of temperature-controlled storage and transportation solutions in international markets to governments, health institutions, and non-government organizations.

The segment realignment had no impact on the Company’s consolidated financial position, results of operations, or cash flows. All segment information is reflective of this new structure, and prior period information has been recast to conform to our current period presentation.

Management considers adjusted operating income, which excludes charges related to amortization of intangible assets, purchase accounting impact on inventory, restructuring charges, 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 the segments’ operations.

The following is the summary of the financial information for the Company’s reportable segments for the three months ended December 31, 2023 and 2022 (in thousands):

	Three Months Ended December 31,
	2023		2022
Revenue:
Sample Management Solutions	$	79,005	$	75,455
Multiomics		62,720		61,089
B Medical Systems		12,592		41,822
Total revenue	$	154,317	$	178,366
Adjusted operating (loss) income:
Sample Management Solutions	$	(856)	$	(2,998)
Multiomics		(3,451)		(3,265)
B Medical Systems		(4,409)		6,303
Segment adjusted operating (loss) income		(8,716)		40
Amortization of completed technology		5,627		4,168
Purchase accounting impact on inventory		—		2,869
Amortization of intangible assets other than completed technology		6,862		7,372
Restructuring charges		1,120		1,461
Merger and acquisition costs and costs related to share repurchase(1)		4,321		11,838
Other unallocated corporate expenses		31		17
Total operating loss		(26,677)		(27,685)
Interest income, net		10,081		10,665
Other, net		682		1,145
Loss before income taxes	$	(15,914)	$	(15,875)
(1) Includes expenses related to governance-related matters.

The Company has corrected the segment adjusted operating (loss) income for the three-month period ended December 31, 2022 as certain corporate expenses that are not part of the Company’s CODM’s review of operating segment performance were improperly included in the previously disclosed segment adjusted operating (loss) income. The previously disclosed amount of total segment adjusted operating (loss) income for the reportable segments was understated by $8.5 million. The total net loss before income taxes remained unchanged.

The following is the summary of the asset information for the Company’s reportable segments for the three months ended December 31, 2023 and 2022 (in thousands):

Assets:	December 31, 2023		September 30, 2023
Sample Management Solutions	$	874,037	$	675,708
Multiomics		490,898		534,437
B Medical Systems		376,613		511,640
Total assets	$	1,741,548	$	1,721,785

The following is a reconciliation of the segment assets to the corresponding amounts presented in the Condensed Consolidated Balance Sheets as of December 31, 2023 and September 30, 2023 (in thousands):

	December 31,		September 30,
	2023		2023
Segment assets	$	1,741,548	$	1,721,785
Cash and cash equivalents, restricted cash, and marketable securities		1,051,395		1,134,256
Deferred tax assets		1,341		571
Other assets		30,030		29,108
Total assets	$	2,824,314	$	2,885,720

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, 2023 and 2022 are as follows (in thousands):

	Three Months Ended December 31,
	2023		2022
Geographic Location:
United States	$	90,592	$	87,717
Africa		7,511		17,210
China		14,898		13,408
United Kingdom		5,699		5,413
Rest of Europe		24,832		39,422
Asia Pacific/Other		10,785		15,196
Total revenue	$	154,317	$	178,366

The Company had no individual customer that accounted for 10% or more of its consolidated revenue or accounts receivable for the three months ended December 31, 2023. The Company had one individual customer that accounted for 10% or more of its consolidated revenue and accounts receivable for the three months ended December 31, 2022. This individual customer is a distributor shipping to end users in 17 countries. This customer accounted for 20% and 12% of revenue and accounts receivable, respectively, during and as of the three months ended December 31, 2022.