SEGMENT INFORMATION

12 Months Ended

Sep. 30, 2012

SEGMENT INFORMATION [Abstract]

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,
	2012			2011
Revenue:
Service	$	21,312		$	25,613
Product		6,896			7,531
	$	28,208		$	33,144
Operating income (loss):
Service	$	(3,863	)	$	745
Product		12			542
Corporate		(1,835	)		-
	$	(5,686	)	$	1,287
Interest Expense		702			694
Income (loss) before income taxes	$	(6,388	)	$	593

Restructuring costs of $1,360 and $1,835 are included in the operating losses for fiscal 2012 for the Service and Corporate segments, respectively.

	Years Ended September 30,
	2012		2011
Identifiable assets:
Service	$	15,864	$	18,121
Product		7,262		7,674
Corporate		3,850		6,551
	$	26,976	$	32,346
Goodwill, net:
Service	$	1,009	$	1,009
Product		374		374
	$	1,383	$	1,383
Intangible assets, net:
Service	$	-	$	54
Product		-		-
	$	-	$	54
Depreciation and amortization:
Service	$	2,036	$	1,899
Product		242		235
	$	2,278	$	2,134
Capital Expenditures:
Service	$	864	$	1,098
Product		226		76
	$	1,090	$	1,174

(b) Geographic Information

	Years Ended September 30,
	2012		2011
Sales to External Customers:
North America	$	25,042	$	29,451
Pacific Rim		961		912
Europe		1,858		2,542
Other		347		239
	$	28,208	$	33,144
Long-lived Assets:
North America	$	20,083	$	20,871
Europe		-		1,101
	$	20,083	$	21,972

(c) Major Customers

The Preferred Provider Agreement ("PPA") with Pharmasset, Inc., signed in the first quarter of fiscal 2011, expired under its own terms, though they remain a large client of the Company. Pharmasset, Inc., now known as Gilead Sciences, Inc. ('Gilead') via acquisition, accounted for approximately 7.3% and 14.5% of our total revenues in fiscal 2012 and 2011, respectively, and 7.4% and 6.3% of total trade accounts receivable at September 30, 2012 and 2011, respectively. Pfizer, Inc. remains a large client, accounting for approximately 3.4% and 5.2% of our total revenues in fiscal 2012 and 2011, respectively. Pfizer, Inc. accounted for 8.4% and 4.2% of total trade accounts receivable at September 30, 2012 and 2011, respectively.