12. SEGMENT REPORTING

12 Months Ended

Apr. 30, 2012

Segment Reporting Disclosure [Text Block]

12. SEGMENT REPORTING

Our business is organized into two reportable operating segments and both operate in the U.S. Peregrine is engaged in the research and development of monoclonal antibodies for the treatment and diagnosis of cancer and infectious diseases. Avid is engaged in providing contract manufacturing services for Peregrine and outside customers on a fee-for-service basis.

The accounting policies of the operating segments are the same as those described in Note 3. We evaluate the performance of our contract manufacturing services segment based on gross profit or loss from third-party customers. However, our products in the research and development segment are not evaluated based on gross profit or loss, but rather based on scientific progress of the technologies. As such, gross profit is only provided for our contract manufacturing services segment in the below table. All revenues shown below are derived from transactions with third-party customers.

Segment information is summarized as follows:

	2012			2011			2010
Contract manufacturing services revenue	$	14,783,000		$	8,502,000		$	13,204,000
Cost of contract manufacturing services		10,153,000			7,296,000			8,716,000
Gross profit	$	4,630,000		$	1,206,000		$	4,488,000
Revenue from products in research and development	$	450,000		$	4,990,000		$	14,739,000
Research and development expense		(35,688,000	)		(29,462,000	)		(24,658,000	)
Selling, general and administrative expense		(11,462,000	)		(11,421,000	)		(8,182,000	)
Other income (expense), net		(49,000	)		536,000			(881,000	)
Net loss	$	(42,119,000	)	$	(34,151,000	)	$	(14,494,000	)

Revenue generated from our contract manufacturing segment was from the following customers:

	2012	2011	2010
Customer revenue as a percentage of revenue:
United States (customer A)	44%	56%	32%
United States (customer B)	0%	0%	15%
Germany (one customer)	17%	24%	23%
Denmark (one customer)	25%	19%	0%
Canada (one customer)	0%	0%	30%
Other customers	14%	1%	0%
Total	100%	100%	100%

Revenue generated from our products in our research and development segment was from the following sources:

	2012		2011		2010
Government contract revenue1,2 (see Note 3)		—	$	4,640,000	$	14,496,000
License revenue (see Note 6)		450,000		350,000		243,000
Total	$	450,000	$	4,990,000	$	14,739,000

⁽¹⁾ Represents revenue earned under a former government contract with the Transformational Medical Technologies (“TMT”) of the U.S. Department of Defense’s Defense Threat Reduction Agency, which expired on April 15, 2011.

⁽²⁾ Includes revenue associated with services provided by our contract manufacturing segment under our former government contract with the TMT, of which during fiscal years 2011 and 2010 amounted to $366,000 and $6,978,000, respectively.

Our long-lived assets consist of leasehold improvements, laboratory equipment, and furniture, fixtures, office equipment and software and are net of accumulated depreciation. Long-lived assets by segment consist of the following:

	2012		2011
Long-lived Assets, net:
Contract manufacturing services	$	2,080,000	$	1,511,000
Products in research and development		820,000		698,000
Total	$	2,900,000	$	2,209,000