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Segments and Geographic Information
3 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
Segments and Geographic Information

(6) Segments and Geographic Information

The Company and its subsidiaries currently operate in two segments, product and service. The product segment oversees the supply chain and manufacturing of Crinone, the Company’s sole commercialized product. The service segment includes product development, clinical trial manufacturing, and advanced analytical and consulting services for the Company’s customers as well as characterizing and developing pharmaceutical product candidates for the Company’s internal programs. The Company conducts its advanced formulation, analytical and consulting services through its subsidiary, Juniper Pharma Services, the Company’s UK-based provider of pharmaceutical development, clinical trial manufacturing and advanced analytical and consulting services to the pharmaceuticals industry. The Company has integrated its supply chain management for Crinone into those operations and has therefore sought to capture synergies by transferring all operational activities related to its historic business. The Company owns certain plant and equipment physically located at third-party contractor facilities in the United Kingdom and Switzerland.

The Company’s largest customer, Merck KGaA, utilizes a Switzerland-based subsidiary to acquire product from the Company, which it then sells throughout the world, excluding the United States.   

The following tables show selected information by geographic area (in thousands):

Revenues:

 

 

 

Three Months Ended

March 31,

 

 

 

2018

 

 

2017

 

United States

 

$

3,542

 

 

$

1,628

 

Switzerland

 

 

10,278

 

 

 

7,757

 

United Kingdom

 

 

793

 

 

 

949

 

Other countries

 

 

911

 

 

 

913

 

Total

 

$

15,524

 

 

$

11,247

 

 

Total assets:

 

 

 

March 31,

2018

 

 

December 31,

2017

 

United States

 

$

21,233

 

 

$

21,683

 

Switzerland

 

 

4,916

 

 

 

1,366

 

United Kingdom

 

 

38,371

 

 

 

38,129

 

Other countries

 

 

19

 

 

 

42

 

Total

 

$

64,539

 

 

$

61,220

 

 

Long-lived assets:

 

 

 

March 31,

2018

 

 

December 31,

2017

 

United States

 

$

396

 

 

$

523

 

Switzerland

 

 

536

 

 

 

535

 

United Kingdom

 

 

15,717

 

 

 

15,064

 

Other countries

 

 

2

 

 

 

2

 

Total

 

$

16,651

 

 

$

16,124

 

 

Long-lived assets include fixed assets, intangibles and other assets.

No other individual country represented greater than 10% of total revenues, total assets or long-lived assets for any period presented.

For the three months ended March 31, 2018 and 2017, Merck KGaA accounted for 100% of the product segment revenue. At March 31, 2018 and December 31, 2017, Merck KGaA made up 100% of the product segment accounts receivable.

For the three months ended March 31, 2018 and 2017, the same customer accounted for 33% and 17% of the service segment total revenue, respectively.  No additional customers accounted for 10% or more of the service segment total revenue for the three months ended March 31, 2018 and 2017.  At March 31, 2018 and December 31, 2017, one customer accounted for 44% and 53% of total service segment accounts receivable, respectively.

The following summarizes other information by segment for the three months ended March 31, 2018 (in thousands):

 

 

 

Product

 

 

Service

 

 

Total

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues

 

$

10,074

 

 

$

 

 

$

10,074

 

Service revenues

 

 

 

 

 

5,450

 

 

 

5,450

 

Total revenues

 

$

10,074

 

 

$

5,450

 

 

$

15,524

 

Cost of product revenues

 

$

6,016

 

 

$

 

 

$

6,016

 

Cost of service revenues

 

 

 

 

 

3,010

 

 

 

3,010

 

Total cost of revenues

 

$

6,016

 

 

$

3,010

 

 

$

9,026

 

Gross profit

 

$

4,058

 

 

$

2,440

 

 

$

6,498

 

Total operating expenses

 

 

 

 

 

 

 

 

 

 

5,482

 

Total non-operating expense

 

 

 

 

 

 

 

 

 

 

(244

)

Income (loss) before income taxes

 

 

 

 

 

 

 

 

 

$

772

 

 

The following summarizes other information by segment for the three months ended March 31, 2017 (in thousands):

 

 

 

Product

 

 

Service

 

 

Total

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues

 

$

7,726

 

 

$

 

 

$

7,726

 

Service revenues

 

 

 

 

 

3,521

 

 

 

3,521

 

Total revenues

 

$

7,726

 

 

$

3,521

 

 

$

11,247

 

Cost of product revenues

 

$

4,313

 

 

$

 

 

$

4,313

 

Cost of service revenues

 

 

 

 

 

2,243

 

 

 

2,243

 

Total cost of revenues

 

$

4,313

 

 

$

2,243

 

 

$

6,556

 

Gross profit

 

$

3,413

 

 

$

1,278

 

 

$

4,691

 

Total operating expenses

 

 

 

 

 

 

 

 

 

 

6,146

 

Total non-operating income

 

 

 

 

 

 

 

 

 

 

14

 

Income (loss) before income taxes

 

 

 

 

 

 

 

 

 

$

(1,441

)