Segment Information

3 Months Ended

Sep. 30, 2011

Segment Information [Abstract]

Segment Information

5. Segment Information

During the three-month periods ended September 30, 2011 and 2010, the Company's operations were classified into three principal reportable business units that provide different products or services.

Management reviews financial information, allocates resources and manages the business as three segments, ECD, Sonomed-Escalon and Escalon Medical Corp. The ECD segment consists of Drew Scientific, Inc., and its wholly owned subsidiaries JAS Diagnostics and Biocode-Hycell. ECD develops and sells clinical diagnostic instruments, reagents and chemistries. The Sonomed-Escalon segment consists of Sonomed, Escalon EMI and Trek, all of which are engaged in the development and sale of Ophthalmic medical devices The Escalon Medical Corp. segment presents the administrative corporate operations of the consolidated group. The Company is including redesignated reporting segments beginning with Form 10-K for the year ended June 30, 2011, and prior period segment information has been reclassified to conform with the current year presentation.

Separate management of each unit is required because each business unit is subject to different marketing, production and technology strategies.

	Segment Statements of Operations (in thousands) - Three months ended September  30,
	ECD						Sonomed-Escalon				Escalon Medical Corp.						Total
	2011			2010			2011		2010		2011			2010			2011			2010
Revenues, net:
Product revenue	$	4,613		$	4,998		$	2,407	$	2,475	$	—		$	—		$	7,020		$	7,473
Other revenue		—			7			—		—		—			—			—			7
Total revenue, net		4,613			5,005			2,407		2,475		—			—			7,020			7,480
Costs and expenses:
Cost of goods sold		2,752			2,991			1,224		1,371		—			—			3,976			4,362
Marketing, General & Admin		2,368			2,687			883		758		120			126			3,371			3,571
Research & Development		162			189			220		207		—			—			382			396
Total costs and expenses		5,282			5,867			2,327		2,336		120			126			7,729			8,329
(Loss) income from operations		(669	)		(862	)		80		139		(120	)		(126	)		(709	)		(849	)
Other (expense) and income:
Equity in OTM		—			—			—		—		1			(22	)		1			(22	)
Interest expense		(82	)		(82	)		—		—		—			—			(82	)		(82	)
Total other (expense) and income		(82	)		(82	)		—		—		1			(22	)		(81	)		(104	)
Net (loss) income	$	(751	)	$	(944	)	$	80	$	139	$	(119	)	$	(148	)	$	(790	)	$	(953	)

The Company operates in the healthcare market, specializing in the development, manufacture and marketing of (1) ophthalmic medical devices and pharmaceuticals; (2) in-vitro diagnostic instrumentation and consumables for use in human and veterinary hematology. On April 30, 2010, the Company sold its Vascular business. The business segments reported above are the segments for which separate financial information is available and for which operating results are evaluated regularly by executive management in deciding how to allocate resources and assessing performance. The accounting policies of the business segments are the same as those described in the summary of significant accounting policies in Form 10-K for the year ended June 30, 2011. For the purposes of this illustration, corporate expenses, which consist primarily of executive management and administrative support functions, are allocated across the business segments based upon a methodology that has been established by the Company, which includes a number of factors and estimates and that has been consistently applied across the business segments. These expenses are otherwise included in the corporate segment.

During three months period ended September 30, 2011 and 2010, ECD derived its revenue from the sale of instrumentation and consumables for blood cell counting and blood analysis in the areas of diabetes, cardiovascular diseases and human and veterinary hematology. Sonomed-Escalon derived its revenue from the sale of A-Scans, B-Scans and pachymeters. These products are used for diagnostic or biometric applications in ophthalmology. Revenue from the sale of ISPAN™ gas products and various disposable ophthalmic surgical products and from CFA digital imaging systems and related products.