SEGMENT INFORMATION

12 Months Ended

Sep. 30, 2014

SEGMENT INFORMATION [Abstract]

SEGMENT INFORMATION

11. SEGMENT INFORMATION

We operate in two principal segments – contract research services and research products. Our contract research 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,
	2014			2013
Revenue:
Service	$	19,097		$	16,473
Product		5,487			5,595
	$	24,584		$	22,068
Operating income (loss) :
Service	$	469		$	77
Product		(135	)		753
	$	334		$	830
Interest Expense		(488	)		(649	)
Change in fair value of warrant liability- (increase) decrease		(918	)		601
Other income		9			7
(Loss) income before income taxes	$	(1,063	)	$	789

	Years Ended September 30,
	2014		2013
Identifiable assets:
Service	$	14,132	$	15,149
Product		5,837		6,399
Corporate		3,805		4,049
	$	23,774	$	25,597
Goodwill, net:
Service	$	1,009	$	1,009
Product		—		374
	$	1,009	$	1,383
Depreciation and amortization:
Service	$	1,421	$	1,519
Product		176		204
	$	1,597	$	1,723
Capital Expenditures:
Service	$	426	$	(1	)
Product		64		9
	$	490	$	8

(b) Geographic Information

	Years Ended September 30,
	2014		2013
Sales to External Customers:
North America	$	22,184	$	19,635
Pacific Rim		740		1,019
Europe		1,086		1,111
Other		574		303
	$	24,584	$	22,068
Long-lived Assets:
North America	$	17,119	$	18,364
	$	17,119	$	18,364

(c) Major Customers

In fiscal 2014 our preclinical services group significantly expanded its presence at two important existing customers. In fiscal 2014, Arrowhead accounted for approximately 12.1% of total sales and 18.5% of total trade accounts receivable at September 30, 2014. In fiscal 2013, Arrowhead accounted for approximately 0.4% of total sales and 4.6% of total trade accounts receivable at September 30, 2013. In fiscal 2014, Principia Biopharma accounted for approximately 8.7% of total sales and 8.4% of total trade accounts receivable at September 30, 2014. In fiscal 2013, Principia Biopharma accounted for approximately 0.4% of total sales and7.1% of total trade accounts receivable at September 30, 2013. Both Arrowhead and Principia Biopharma are included in our contract research services segment.

In fiscal 2014, Boehringer Ingelheim remained an important customer, accounting for approximately 5.9% of total sales and 2.5% of total trade accounts receivable at September 30, 2014. In fiscal 2013, Boehringer Ingelheim accounted for approximately 6.0% of total sales and 2.6% of total trade accounts receivable at September 30, 2013. Pfizer, Inc. also remains an important large client, accounting for approximately 1.7% and 4.9% of our total revenues in fiscal 2014 and 2013, respectively. Pfizer, Inc. accounted for 1.5% and 3.3% of total trade accounts receivable at September 30, 2014 and 2013, respectively. Both Boehringer Ingelheim and Pfizer are included in our contract research services segment.