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Note 15 - Segment and Geographic Information
 6 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

15. 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 (“CODM”) in deciding how to allocate resources and to assess performance. The Company’s Chief Executive Officer is the Company’s CODM.

 

As of November 12, 2024, the Company’s B Medical Systems segment met the “held for sale” criteria and “discontinued operations” criteria in accordance with FASB ASC 205 and the results of the B Medical Systems segment are included within discontinued operations. 

 

The Company’s continuing operations includes the following operating and reportable segments:

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●

Sample Management Solutions. The SMS business resources operate as a single business unit offering end-to-end sample management products and services, including: Sample Repository Services and Core Products (Automated Stores, Cryogenic Systems, Automated Sample Tube, Consumables and Instruments and Controlled Rate Thawing Devices).

 

●

Multiomics. The Multiomics business resources operate as a single business unit offering genomic and other sample analysis services, including gene sequencing and gene synthesis.

 

Management considers adjusted operating income (loss), which excludes charges related to amortization of intangible assets, transformation costs, restructuring charges, goodwill and intangible asset impairment, merger and acquisition costs and costs related to share repurchase, governance-related matters, and other unallocated corporate expenses, as the primary performance metric when evaluating each segment’s operations.

 

The following is the summary of the financial information for the Company’s operating and reportable segments for the three and six months ended March 31, 2025 and 2024 (in thousands):

 

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Three Months Ended March 31,

  

Six Months Ended March 31,

 

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2025

  

2024

  

2025

  

2024

 

Revenue:

 

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Sample Management Solutions

 $79,896  $74,137  $161,108  $153,142 

Multiomics

  63,522   62,218   129,820   124,938 

Total revenue

 $143,418  $136,355  $290,928  $278,080 

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Adjusted operating income (loss):

 

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​

  

​

  

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Sample Management Solutions

 $4,613  $(1,457) $6,930  $(2,073)

Multiomics

  (5,296)  (2,880)  (7,796)  (6,144)

Segment adjusted operating loss

  (683)  (4,337)  (866)  (8,217)

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Amortization of completed technology

  2,308   2,067   3,808   3,923 

Amortization of other intangible assets

  3,803   5,152   8,376   10,523 

Transformation costs (1)

  5,183   4,095   8,229   4,136 

Restructuring charges

  3,580   3,428   4,011   4,214 

Impairment of intangible assets

  —   4,658   —   4,658 

Merger and acquisition costs and costs related to share repurchase (2)

  688   426   2,258   4,747 

Other unallocated corporate expenses

  (94)  50   (44)  40 

Total operating loss

  (16,151)  (24,213)  (27,504)  (40,458)

Interest income, net

  4,489   9,479   8,787   19,434 

Other income (expense), net

  1,157   (268)  2,360   250 

Loss before income taxes

 $(10,505) $(15,002) $(16,357) $(20,774)

 

(1)

Transformation costs represent non-recurring expenses for strategic projects with anticipated long-term benefits to the Company focused on cost reduction and productivity improvement that do not meet the definition of restructuring charges. These costs are directed at simplifying, standardizing, streamlining, and optimizing the Company’s operations, processes and systems to permanently alter the Company’s operations for the long term. For a project to be considered transformational, successful completion of the project must be expected to bring long-term material benefits to the organization and involve significant changes to process and/or underlying technology. Transformation costs in the period result from actions taken as part of the Company’s 2024 transformation plan and primarily relate to one time asset write downs associated with changes in technology, one time inventory write downs relating to restructuring actions taken in the period, and third-party consulting costs associated with process and systems re-design.

(2)

Includes expenses related to governance-related matters.

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The following is the summary of the asset information for the Company’s reportable segments as of March 31, 2025 and  September 30, 2024 (in thousands):

 

Assets:

 

March 31, 2025

  

September 30, 2024

 

Sample Management Solutions

 $847,215  $859,353 

Multiomics

  450,641   462,825 

Total assets

 $1,297,856  $1,322,178 

 

The following is a reconciliation of the segment assets to the corresponding amounts presented in the Condensed Consolidated Balance Sheets as of March 31, 2025 and  September 30, 2024 (in thousands):

 

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March 31,

  

September 30,

 

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2025

  

2024

 

Segment assets

 $1,297,856  $1,322,178 

Cash and cash equivalents, restricted cash and marketable securities

  513,319   490,707 

Deferred tax assets

  731   837 

General corporate assets

  9,302   23,631 

Assets held for sale

  220,717   262,688 

Total assets

 $2,041,925  $2,100,041 

 

Revenue from external customers is attributed to geographic areas based on locations in which the product is shipped. Net revenue by geographic area for the three and six months ended March 31, 2025 and 2024 are as follows (in thousands):

 

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Three Months Ended March 31,

  

Six Months Ended March 31,

 

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2025

  

2024

  

2025

  

2024

 

Geographic Location:

 

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United States

 $89,943  $87,735  $183,412  $177,861 

China

  12,739   13,646   27,626   28,544 

United Kingdom

  8,083   5,625   15,881   11,301 

Rest of Europe

  25,259   22,393   49,578   45,123 

Asia Pacific/Other

  7,394   6,956   14,431   15,251 

Total revenue

 $143,418  $136,355  $290,928  $278,080 

 

For the three and six months ended March 31, 2025 and 2024, the Company did not have any individual customers that accounted for 10% or more of its consolidated revenue. As of March 31, 2025 and September 30, 2024, there were no customers that accounted for more than 10% of the Company's accounts receivable balance.