Segment and Geographic Information

6 Months Ended

Mar. 31, 2023

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.

The Company’s Life Sciences Products segment provides automated cold storage solutions for biological and chemical compound samples. The Company’s storage systems provide reliable automation and sample inventory management at temperatures down to -190°C and can store anywhere from one to millions of samples. The Company’s sample management solutions include consumable vials and tubes, polymerase chain reaction (PCR), plates, instruments for supporting workflows, and informatics. This portfolio provides customers with the highest level of sample quality, security, availability, intelligence, and integrity throughout the lifecycle of samples providing customers with complete end-to-end “cold-chain of custody” capabilities. The Company also provides controlled rate thawing devices for customers in the medical, biotech and pharmaceutical industries. On October 3, 2022, the Company acquired B Medical, a market leader in temperature-controlled storage and transportation solutions that enables the delivery of life-saving treatments to people in more than 150 countries worldwide. On February 2, 2023, the Company acquired Ziath a leading provider of 2D barcode readers for life sciences applications. Both of the acquired businesses are part of the Company’s Life Sciences Products segment.

The Company’s Life Sciences Services business is a leading provider of solutions addressing the many needs of customers in the area of genomic analysis and the management and care of biological samples used in pharmaceutical, biotech, healthcare, clinical, and academic research and development markets. The Company processes millions of

samples every year, each containing valuable information that must be delivered or preserved with the sample. The Company’s genomic services provide a broad capability to customers for sequencing and synthesis of genes. The Company’s sample management services include off-site storage services, transport services, laboratory services, and interactive informatics solutions. The storage services include short- and long-term sample storage and management of the “cold chain of custody” from collection, to storage, to retrieving the sample which ultimately may go back into the research workflow.

The Company considers adjusted operating income, which excludes charges related to amortization of completed technology, the purchase accounting impact on inventory, amortization of other intangible assets, restructuring related charges, contingent consideration fair value adjustments, tariff adjustment, other unallocated corporate expenses, 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 six months ended March 31, 2023 and 2022 (in thousands):

	Three Months Ended March 31,				Six Months Ended March 31,
	2023		2022		2023		2022
Revenue:
Life Sciences Products	$	58,860	$	53,615	$	148,520	$	103,487
Life Sciences Services		89,541		91,929		178,247		181,709
Total revenue	$	148,401	$	145,544	$	326,767	$	285,196
Operating income / (loss):
Life Sciences Products	$	(16,404)	$	5,288	$	(20,202)	$	9,679
Life Sciences Services		(4,878)		4,856		(9,490)		12,740
Reportable segment operating income (loss)		(21,282)		10,144		(29,692)		22,419
Amortization of completed technology		4,901		1,840		9,070		3,613
Purchase accounting impact on inventory		2,912		—		5,781		—
Amortization of other intangible assets		7,509		6,047		14,882		12,319
Restructuring charges		1,499		122		2,961		295
Contingent consideration - fair value adjustments		(17,145)		—		(17,145)		—
Tariff adjustment		—		(486)		—		(486)
Other unallocated corporate expenses		(7,981)		7,329		(4,579)		11,711
Total operating income (loss)		(12,977)		(4,708)		(40,662)		(5,033)
Interest income		10,394		3,076		21,059		3,111
Interest expense		—		(1,555)		—		(2,010)
Loss on extinguishment of debt		—		(632)		—		(632)
Other income (expense)		(2,668)		(1,170)		(1,523)		(2,248)
(Loss) before income taxes	$	(5,251)	$	(4,989)	$	(21,126)	$	(6,812)
Assets:				Life Sciences Products		Life Sciences Services		Total
March 31, 2023			$	948,580	$	849,018	$	1,797,598
September 30, 2022				378,790		849,603		1,228,393

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 March 31, 2023 and September 30, 2022 (in thousands):

	March 31,		September 30,
	2023		2022
Segment assets	$	1,797,598	$	1,228,393
Cash and cash equivalents, restricted cash, and marketable securities		1,451,703		2,305,081
Deferred tax assets		490		1,169
Other assets		23		181,479
Total assets	$	3,249,814	$	3,716,122

Revenue from external customers is attributed to geographic areas based on locations in which customer orders are placed. Net revenue by geographic area for the three and six months ended March 31, 2023 and 2022 (in thousands) are as follows:

		Three Months Ended March 31,				Six Months Ended March 31,
	2023		2022		2023		2022
Geographic Location:
North America	$	87,484	$	94,283	$	176,419	$	184,366
Rest of Europe		21,432		19,745		60,854		40,028
Africa		8,627		672		25,837		1,219
China		11,979		13,757		25,387		26,798
Asia Pacific/ Other		13,090		10,278		27,068		17,664
United Kingdom		5,789		6,809		11,202		15,121
Total	$	148,401	$	145,544	$	326,767	$	285,196

Revenue for the United States comprises 99% of the revenue for North America for each of the three and six months ended March 31, 2023 and 2022.