OPERATING SEGMENT AND GEOGRAPHIC INFORMATION

9 Months Ended

Sep. 30, 2011

Operating Segment and Geographic Information [Abstract]

Operating Segment And Geographic Information [Text Block]

OPERATING SEGMENT AND GEOGRAPHIC INFORMATION

Our company’s chief operating decision-maker is the Chief Executive Officer, who regularly evaluates our performance based on net sales and gross profit. The preparation of this segment analysis requires management to make estimates and assumptions around expenses below the gross profit level. While we believe the segment information to be directionally correct, actual results could differ from the estimates and assumptions used in preparing this information.

The accounting policies of the segments are the same as the policies discussed in Footnote B – Summary of Significant Accounting Policies.

We have three reportable operating segments, Clinical Laboratories, Pharmacogenomic Services and Diagnostic Tools. During the third quarter of 2011, we changed the manner in which we report segment results internally. Accordingly, segment results of the prior period have been reclassified to reflect these changes. Beginning with the third quarter of 2011 our company's chief operating decision-maker is now reviewing our business as having three segments. The change in segments was driven by our corporate strategy to advance personalized medicine through proprietary molecular technologies and world-class clinical and research services. These lines of business are complementary with the Pharmacogenomics Services driving innovation and leading to kit production in our Diagnostic Tools segment and new tests in our Clinical Laboratories.

Segment information for the three months ended September 30, 2011 and 2010 is as follows:

	Dollars in Thousands
	2011
	Clinical Laboratories			Pharmacogenomic Services		Diagnostic Tools		Total
Net Sales	$	4,085		$	552	$	3,616	$	8,253
Gross Profit	2,456			241		1,748		4,445
Net Income (Loss) before Taxes	(1,472		)	122		71		(1,279		)
Income Tax Expense (Benefit)	(20		)	—		11		(9		)
Net Income (Loss)	$	(1,452	)	$	122	$	60	$	(1,270	)
Depreciation/Amortization	350			75		56		481
Restructure	2			—		3		5
Interest Income (Expense)	(238		)	—		—		(238		)

	Dollars in Thousands
	2010
	Clinical Laboratories			Pharmacogenomic Services			Diagnostic Tools			Total
Net Sales	$	918		$	346		$	3,155		$	4,419
Gross Profit	248			(80		)	1,849			2,017
Net Loss before Taxes	(662		)	(135		)	(30		)	(827		)
Income Tax Expense (Benefit)	—			—			71			71
Net Loss	$	(662	)	$	(135	)	$	(101	)	$	(898	)
Depreciation/Amortization	32			45			47			124
Restructure	34			—			38			72
Interest Income (Expense)	—			—			—			—

Segment information for the nine months ended September 30, 2011 and 2010 is as follows:

	Dollars in Thousands
	2011
	Clinical Laboratories			Pharmacogenomic Services		Diagnostic Tools			Total
Net Sales	$	11,435		$	1,824	$	10,141		$	23,400
Gross Profit	6,787			764		5,601			13,152
Net Income (Loss) before Taxes	(11,331		)	615		551			(10,165		)
Income Tax Expense (Benefit)	—			—		(120		)	(120		)
Net Income (Loss)	$	(11,331	)	$	615	$	671		$	(10,045	)
Depreciation/Amortization	1,113			184		151			1,448
Restructure	28			—		12			40
Interest Income (Expense)	(720		)	—		—			(720		)
	9/30/2011
Total Assets	$	20,822		$	953	$	8,199		$	29,974

	Dollars in Thousands
	2010
	Clinical Laboratories			Pharmacogenomic Services			Diagnostic Tools			Total
Net Sales	$	2,790		$	986		$	11,180		$	14,956
Gross Profit	1,159			(91		)	6,320			7,388
Net Loss before Taxes	(1,471		)	(444		)	(343		)	(2,258		)
Income Tax Expense (Benefit)	—			—			109			109
Net Loss	$	(1,471	)	$	(444	)	$	(452	)	$	(2,367	)
Depreciation/Amortization	98			131			151			380
Restructure	34			—			38			72
Interest Income (Expense)	—			—			1			1
	9/30/2010
Total Assets	$	5,777		$	1,088		$	7,072		$	13,937

Net sales for the three and nine months ended September 30, 2011 and 2010 by country were as follows:

	Dollars in Thousands				Dollars in Thousands
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2011		2010		2011		2010
United States	$	6,034	$	2,082	$	16,738	$	6,483
Italy	762		813		2,373		2,300
United Kingdom	193		224		451		991
France	166		209		579		812
Germany	187		194		581		1,099
United Arab Emirates	—		4		—		778
All Other Countries	911		893		2,678		2,493
Total	$	8,253	$	4,419	$	23,400	$	14,956

No other country accounted for more than 5% of total net sales.

More than 95% of our long-lived assets are located within the United States. Substantially all of the remaining long-lived assets are located within Europe.