11. SEGMENT REPORTING

9 Months Ended

Jan. 31, 2013

Segment Reporting [Abstract]

11. 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. Avid is engaged in providing contract manufacturing services for Peregrine, and third-party 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 or loss 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 for the three and nine-month periods is summarized as follows:

	Three Months Ended   January 31,						Nine Months Ended January 31,
	2013			2012			2013			2012
Contract manufacturing services revenue	$	6,961,000		$	3,203,000		$	17,157,000		$	12,796,000
Cost of contract manufacturing services		3,651,000			2,484,000			9,378,000			9,219,000
Gross profit		3,310,000			719,000			7,779,000			3,577,000
Revenue from products in research and development		78,000			78,000			272,000			372,000
Research and development expense		(5,437,000	)		(9,180,000	)		(18,471,000	)		(26,758,000	)
Selling, general and administrative expense		(3,112,000	)		(2,710,000	)		(9,469,000	)		(8,371,000	)
Other income (expense), net		247,000			3,000			254,000			(57,000	)
Loss on early extinguishment of debt		–			–			(1,696,000	)		–
Net loss	$	(4,914,000	)	$	(11,090,000	)	$	(21,331,000	)	$	(31,237,000	)

Revenues generated from our contract manufacturing services segment were derived from a limited number of customers. The percentages below represent revenue derived from each customer as a percentage of total contract manufacturing services revenue:

	Three Months Ended January 31,						Nine Months Ended January 31,
	2013			2012			2013			2012
United States (customer A)		60	%		58	%		78	%		36	%
United States (customer B)		37			—			20			—
United States (customer C)		—			31			—			8
Germany (one customer)		—			5			—			20
Denmark (one customer)		—			4			—			28
Other customers		3			2			2			8
Total		100	%		100	%		100	%		100	%

Revenue generated from our products in our research and development segment during the three and nine months ended January 31, 2013 and 2012, is directly related to license revenue recognized under licensing agreements with unrelated entities.