Segment and Related Information

9 Months Ended

Mar. 31, 2014

Segment and Related Information

(6) Segment and Related Information

The Company’s business units have been aggregated into three reportable segments: (i) research, (ii) molecular diagnostics and (iii) companion diagnostics. The research segment is focused on the discovery of genes, biomarkers and proteins related to major common diseases and includes corporate services such as finance, human resources, legal, and information technology. The molecular diagnostics segment provides testing that is designed to assess an individual’s risk for developing disease later in life, identify a patient’s likelihood of responding to drug therapy and guide a patient’s dosing to ensure optimal treatment, or assess a patient’s risk of disease progression and disease recurrence. The business of Crescendo acquired in February 2014 is included as part of the molecular diagnostic segment. The companion diagnostics segment provides testing products and services to the pharmaceutical, biotechnology and medical research industries. The Company evaluates segment performance based on results from operations before interest income and expense and other income and expense.

Segment revenue and operating income (loss) were as follows during the periods presented:

(In thousands)	Research			Molecular diagnostics		Companion diagnostics			Total
Three months ended March 31, 2014:
Revenue	$	—			176,191		6,733		$	182,924
Depreciation and amortization		502			2,506		471			3,479
Segment operating income (loss)		(15,455	)		70,815		(73	)		55,287
Three months ended March 31, 2013:
Revenue	$	—			148,384		8,088		$	156,472
Depreciation and amortization		1,210			2,424		821			4,455
Segment operating income (loss)		(17,224	)		76,165		(1,023	)		57,918
Nine months ended March 31, 2014:
Revenue	$	—			565,335		24,115		$	589,450
Depreciation and amortization		1,494			5,335		1,462			8,291
Segment operating income (loss)		(48,422	)		266,794		2,816			221,188
Nine months ended March 31, 2013:
Revenue	$	—			416,304		22,746		$	439,050
Depreciation and amortization		1,818			3,543		1,274			6,635
Segment operating income (loss)		(47,989	)		214,195		(4,120	)		162,086

	Three months ended						Nine months ended
	March 31,						March 31,
(In thousands)	2014			2013			2014			2013
Total operating income for reportable segments	$	55,287		$	57,918		$	221,188		$	162,086
Interest income		2,498			1,434			5,190			4,187
Other		(442	)		(111	)		(1,066	)		(224	)
Income tax provision		20,573			21,349			82,719			62,984
Net income	$	36,770		$	37,892		$	142,593		$	103,065