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Segment Reporting
 12 Months Ended
Jun. 30, 2012
Segment Reporting [Abstract]  
Segment Reporting
Segment Reporting
Management reviews financial information, allocates resources and manages the business as three segments, Sonomed-Escalon, ECD and Escalon Medical Corp. The Sonomed-Escalon segment consists of Sonomed, Escalon Digital Imaging and Trek, all of which are engaged in the development and sale of Ophthalmic medical devices. 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 Escalon Medical Corp. segment presents the administrative corporate operations of the consolidated group.
The table below sets forth loss from continuing operations for the years ended June 30, 2012 and 2011.
 
 
Segment Statements of Operations —Years ended June 30,
(in thousands)
 
Escalon Clinical Diagnostics
 
Sonomed Escalon
 
Corporate
 
Total
 
2012
 
2011
 
2012
 
2011
 
2012
 
2011
 
2012
 
2011
Revenues, net:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Product revenue
$
12,985

 
$
13,709

 
$
11,462

 
$
11,867

 
$
—

 
$
—

 
$
24,447

 
$
25,575

Total revenue, net
12,985

 
13,709

 
11,462

 
11,867

 
—

 
—

 
24,447

 
25,575

Costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of goods sold
9,416

 
10,775

 
5,760

 
6,475

 
—

 
—

 
15,176

 
17,250

Marketing, general & admin
5,297

 
6,124

 
4,226

 
3,702

 
501

 
853

 
10,024

 
10,679

Research & development
476

 
725

 
1,005

 
877

 
—

 
—

 
1,481

 
1,603

Goodwill impairment
—

 
—

 
—

 
906

 
—

 
—

 
—

 
906

Total costs and expenses
15,189

 
17,625

 
10,991

 
11,960

 
501

 
853

 
26,681

 
30,438

(Loss) income from operations
(2,204
)
 
(3,916
)
 
471

 
(93
)
 
(501
)
 
(853
)
 
(2,234
)
 
(4,863
)
Other (expense) and income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss on disposal of assets
(87
)
 
—

 
—

 
—

 
—

 
—

 
(87
)
 
—

Equity in OTM
—

 
—

 
—

 
—

 
7

 
(70
)
 
7

 
(70
)
Interest income
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Interest expense
(166
)
 
(324
)
 
—

 
—

 
(178
)
 
—

 
(344
)
 
(324
)
Total other (expense) and income
(253
)
 
(324
)
 
—

 
—

 
(171
)
 
(70
)
 
(424
)
 
(394
)
(Loss) and income before taxes
(2,457
)
 
(4,240
)
 
471

 
(93
)
 
(672
)
 
(923
)
 
(2,658
)
 
(5,256
)
Income taxes benefit from continuing operations
—

 
—

 
—

 
—

 
—

 
(240
)
 
—

 
(240
)
Net (loss) income from continuing operations
$
(2,457
)
 
$
(4,240
)
 
$
471

 
$
(93
)
 
$
(672
)
 
$
(683
)
 
$
(2,658
)
 
$
(5,016
)

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 (“IVD”) instrumentation and consumables for use in human and veterinary hematology. 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. 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 the fiscal years ended June 30, 2012 and 2011, 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 are from CFA digital imaging systems and related products.
No customer represented more than 10% of consolidated revenue from continuing operations for the years ended June 30, 2012 and 2011. Foreign sales in 2012 decreased $14,000 or 0.2% to $5,929,000.
 
 
2012
 
2011
ECD
$
211,234

 
$
84,056

Sonomed-Escalon
5,717,769

 
5,859,438

Total
$
5,929,003

 
$
5,943,494

 
 
 
 
Total Net Revenue
$
24,446,525

 
$
25,575,276

 
24.3
%
 
23.2
%