SEGMENT INFORMATION

12 Months Ended

Sep. 30, 2011

SEGMENT INFORMATION

11.  SEGMENT INFORMATION

We operate in two principal segments – contract research services and research products. Our Services segment provides research and development support on a contract basis directly to pharmaceutical companies. Our Products segment provides liquid chromatography, electrochemical and physiological monitoring products to pharmaceutical companies, universities, government research centers, and medical research institutions. We evaluate performance and allocate resources based on these segments. Certain of our assets are not directly attributable to the Services or Products segments. These assets are grouped into the Corporate segment and include cash and cash equivalents, deferred income taxes, refundable income taxes, debt issue costs and certain other assets. We do not allocate such items to the principal segments because they are not used to evaluate their financial position. The accounting policies of these segments are the same as those described in the summary of significant accounting policies.

(a) Operating Segments

	Years Ended September 30,
	2011		2010
Revenue:
Service	$	25,613	$	21,864
Product		7,531		6,917
	$	33,144	$	28,781
Operating income (loss):
Service	$	745	$	(2,350	)
Product		542		353
	$	1,287	$	(1,997	)
Corporate Expenses		694		1,027
Income (loss) before income taxes	$	593	$	(3,024	)

	Years Ended September 30,
	2011		2010
Identifiable assets:
Service	$	18,121	$	17,309
Product		7,674		7,406
Corporate		6,551		5,028
	$	32,346	$	29,743
Goodwill, net:
Service	$	1,009	$	1,009
Product		374		374
	$	1,383	$	1,383
Intangible assets, net:
Service	$	54	$	84
Product		—		—
	$	54	$	84
Depreciation and amortization:
Service	$	1,899	$	2,108
Product		235		215
	$	2,134	$	2,323
Capital Expenditures:
Service	$	1,098	$	383
Product		76		67
	$	1,174	$	450

(b) Geographic Information

	Years Ended September 30,
	2011		2010
Sales to External Customers:
North America	$	29,451	$	25,578
Pacific Rim		912		500
Europe		2,542		2,495
Other		239		208
	$	33,144	$	28,781
Long-lived Assets:
North America	$	20,871	$	20,650
Europe		1,101		459
	$	21,972	$	21,109

(c) Major Customers

With the signing of the Preferred Provider Agreement (“PPA”) with Pharmasset, Inc. in the first quarter of the current fiscal year, Pharmasset, Inc.  has become our largest client, accounting for approximately 14.5% of our total revenues in fiscal 2011 and 6.3% of our total trade accounts receivable at September 30, 2011.  Pfizer, Inc. remains a large client, accounting for approximately 5.2% and 7.0% of our total revenues in fiscal 2011 and 2010, respectively. Pfizer, Inc. accounted for 4.2% and 4.7% of total trade accounts receivable at September 30, 2011 and 2010, respectively.