Segment and Geographic Information

9 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment and Geographic Information

14. Segment and Geographic Information

Operating segments are defined as components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and to assess performance. The Company’s Chief Executive Officer is the Company’s chief operating decision maker.

The Company operates in two reportable segments: the Life Sciences Products segment and the Life Sciences Services segment. These reportable segments also represent the Company’s operating segments. The Company previously operated in three reportable segments: the Semiconductor Solutions Group segment, the Life Sciences Products segment, and the Life Sciences Services segment. As discussed in Note 3, “Discontinued Operations”, our Semiconductor Solutions Group reportable segment has been classified as a discontinued operation. The sale of the semiconductor automation business was completed on February 1, 2022. Historical information has been adjusted to reflect the new reportable segments.

The Life Sciences Products segment provides automated cold sample management systems for compound and biological sample storage, equipment for sample preparation and handling, consumables, and instruments, that help customers manage samples throughout their research discovery and development workflows. The segment’s product offerings include automated cold storage systems, cryogenic storage systems, consumables and instruments and the associated services business for these products.

The Life Sciences Services segment provides comprehensive sample management programs, integrated cold chain solutions, informatics, as well as sample-based laboratory services to advance scientific research and support drug development. The segment’s service offerings include sample storage, genomic sequencing, gene synthesis, laboratory processing services, laboratory analysis, biospecimen procurement services and other support services which are provided to a wide range of life science customers, including pharmaceutical companies, biotechnology companies, biorepositories and research institutes. Our Sample Repository Solutions business is a global leader in sample and material storage and management and provides a full suite of reliable cold and ultra-cold chain solutions.

The Company considers adjusted operating income, which excludes charges related to amortization of completed technology, the acquisition accounting impact on inventory contracts acquired, restructuring related charges and other special charges, such as impairment losses, as the primary performance metric when evaluating the business.

The following is the summary of the financial information for the Company’s reportable segments for the three and nine months ended June 30, 2022 and 2021 (in thousands):

	Three Months Ended June 30,					Nine Months Ended June 30,
	2022		2021		2022		2021
Revenue:
Life Sciences Products	$	47,369	$	48,625	$	150,861	$	146,520
Life Sciences Services		85,366		80,462		267,070		230,244
Total revenue	$	132,735	$	129,087	$	417,931	$	376,764
Operating loss:
Life Sciences Products	$	2,216	$	5,060	$	11,895	$	16,492
Life Sciences Services		2,251		5,774		14,997		18,316
Reportable segment adjusted operating income		4,467		10,834		26,892		34,808
Amortization of completed technology		1,810		2,173		5,424		6,200
Amortization of other intangible assets		5,745		7,396		18,064		21,657
Restructuring charges		25		—		319		53
Tariff adjustment		—		—		(486)		5,414
Other unallocated corporate expenses		1,960		2,148		13,677		11,331
Total operating loss		(5,073)		(883)		(10,106)		(9,847)
Interest income		6,822		409		9,933		503
Interest expense		(2,101)		(477)		(4,111)		(1,485)
Loss on extinguishment of debt		—		—		(632)		—
Other income (expenses), net		630		(1,651)		(1,617)		(263)
Income (loss) before income taxes	$	278	$	(2,602)	$	(6,533)	$	(11,092)
Assets:		Life Sciences Products		Life Sciences Services		Total
June 30, 2022	$	319,632	$	876,589	$	1,196,221
September 30, 2021		278,769		780,238		1,059,007

The following is a reconciliation of the Company’s reportable segments’ segment assets to the corresponding amounts presented in the accompanying unaudited Consolidated Balance Sheets as of June 30, 2022 and September 30, 2021 (in thousands):

	June 30,		September 30,
	2022		2021
Segment assets	$	1,196,221	$	1,059,007
Cash and cash equivalents, restricted cash, and marketable securities		2,507,326		244,012
Deferred tax assets		1,926		10,043
Other assets		17,244		11,237
Assets held for sale		—		495,213
Total assets	$	3,722,717	$	1,819,512

Revenue from external customers is attributed to geographic areas based on locations to which customer orders are shipped. Net revenue by geographic area for the three and nine months ended June 30, 2022 and 2021 (in thousands) are as follows:

		Three Months Ended June 30,				Nine Months Ended June 30,
	2022		2021		2022		2021
Geographic Location:
North America	$	88,557	$	83,638	$	285,283	$	236,939
Europe		25,042		27,009		75,863		82,412
China		12,906		11,077		33,936		33,869
Asia Pacific/ Other		6,230		7,363		22,849		23,544
Total	$	132,735	$	129,087	$	417,931	$	376,764

Revenue for the United States comprises 99% of the revenue for North America for the three and nine months ended June 30, 2022 and 2021.