Segment and Geographic Information

12 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment and Geographic Information

19.    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, the sale of the semiconductor automation business, which comprised the Semiconductor Solutions Group segment, was completed on February 1, 2022. Historical information has been adjusted to reflect the new reportable segments.

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, plates, instruments for supporting workflows, and informatics. This portfolio provides customers with a high 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 and transportation solutions that enable the delivery of life-saving treatments for customers in the medical, biotechnology and pharmaceutical industries adding differentiated solutions for reliable and traceable transport of temperature-sensitive samples. The Company also provides vaccine cold storage and transport, as well as 2D barcode readers for life sciences applications.

The Company’s Life Sciences Services business is a leading provider of solutions addressing the many needs of customers in genomic analysis and the management and care of biological samples used in pharmaceutical, biotechnology, healthcare, clinical, and academic research and development markets. The Company processes millions of samples annually, 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 gene sequencing, synthesis, editing and related services. The Company’s sample management services include off-site storage, transport services, laboratory services, sample procurement, and interactive informatics solutions. The Company also offers expert-level consultation services to clients throughout their experimental design and implementation process. 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.

Management considers operating income, which excludes charges related to amortization of intangible assets other than completed technology, restructuring and related charges, contingent consideration fair value adjustments, merger and acquisition costs and costs related to share repurchase, and other unallocated corporate expenses, as the primary performance metric when evaluating the Company’s operations.

The following is the summary of the financial information for the Company’s reportable segments for the fiscal years ended September 30, 2023, 2022 and 2021 (in thousands):

		Year Ended September 30,
		2023		2022		2021
Revenue:
Life Sciences Products	$	305,184	$	199,230	$	199,606
Life Sciences Services		359,888		356,268		314,097
Total revenue	$	665,072	$	555,498	$	513,703
Operating income (loss):
Life Sciences Products	$	(30,321)	$	11,033	$	23,094
Life Sciences Services		(14,722)		10,784		22,659
Segment operating income (loss)		(45,043)		21,817		45,753
Amortization of intangible assets other than completed technology		28,207		24,965		29,299
Restructuring and restructuring related charges		4,577		712		13,749
Contingent consideration - fair value adjustments		(18,549)		600		—
Merger and acquisition costs and costs related to share repurchase(1)		13,842		17,329		20,662
Other unallocated corporate expenses		6		2,946		13,132
Total operating loss		(73,126)		(24,735)		(31,089)
Interest income		43,735		20,286		632
Interest expense		—		(4,589)		(2,037)
Loss on extinguishment of debt		—		(632)		—
Other, net		(1,042)		(266)		(16,475)
Loss before income taxes	$	(30,433)	$	(9,936)	$	(48,969)
(1) Includes expenses related to governance-related matters.
Assets:	September 30, 2023		September 30, 2022
Life Sciences Products	$	927,033	$	378,790
Life Sciences Services		794,752		849,603
Total assets	$	1,721,785	$	1,228,393

Prior year amounts in the “Operating income (loss)” table above have been reclassified to conform to the current presentation.

The following is a reconciliation of the Company’s reportable segments’ assets to the amounts presented in the accompanying Consolidated Balance Sheets as of September 30, 2023 and 2022 (in thousands):

	September 30,		September 30,
	2023		2022
Segment assets	$	1,721,785	$	1,228,393
Cash and cash equivalents, restricted cash, and marketable securities		1,134,256		2,305,081
Deferred tax assets		571		1,169
Other assets		29,108		181,479
Total assets	$	2,885,720	$	3,716,122

Revenue from external customers is attributed to geographic areas based on locations in which customer orders are placed. Revenue by geographic area for the fiscal years ended September 30, 2023, 2022 and 2021 are as follows (in thousands):

	Year Ended September 30,
	2023		2022		2021
Geographic Location:
North America	$	359,417	$	361,105	$	323,982
Africa		65,092		1,331		688
China		51,787		53,867		45,743
United Kingdom		26,764		30,258		31,539
Rest of Europe		109,856		79,005		77,266
Asia Pacific/ Other		52,156		29,932		34,485
Total revenue	$	665,072	$	555,498	$	513,703

The above table has been updated to reflect a misclassification of revenue between North America and other locations for the fiscal year ended 2022.

The majority of the Company’s revenue in North America is generated in the United States which amounted to $355.1 million, $358.2 million, and $320.8 million, respectively, during fiscal years ended September 30, 2023, 2022 and 2021.

Net property, plant and equipment by geographic area as of September 30, 2023 and 2022 is as follows (in thousands):

	September 30,
	2023		2022
United States	$	78,533	$	84,809
China		53,146		56,585
Europe		70,654		11,610
Asia Pacific/ Other		3,411		1,466
Total property, plant, and equipment, net	$	205,744	$	154,470

Significant Customers

The Company had one individual customer that accounted for 10% or more of its consolidated revenue for the fiscal year ended September 30, 2023. This customer is related to the Life Science Products segment and is a distributor shipping to end users in approximately 50 countries. The Company had no individual customer that accounted for more than 10% of its consolidated revenue for each of the fiscal years ended September 30, 2022 and 2021. There was no customer that accounted for more than 10% of the Company’s accounts receivable balance for each of the fiscal years ended September 30, 2023 and 2022.