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Business Segment Information
 6 Months Ended
Jun. 30, 2014
Segment Reporting [Abstract]  
Business Segment Information
7. Business Segment Information

We operate our business within two reportable segments: our “OSUR” business, which consists of the development, manufacture and sale of oral fluid diagnostic products and specimen collection devices and the manufacture and sale of medical devices used for the removal of benign skin lesions by cryosurgery; and our molecular collection systems or “DNAG” business, which consists of the manufacture, development and sale of oral fluid collection devices that are used to collect, stabilize and store samples of genetic material for molecular testing. OSUR revenues are derived primarily from products sold in the United States and internationally to various clinical laboratories, hospitals, clinics, community-based organizations, public health organizations, distributors, government agencies, physicians’ offices, and commercial and industrial entities. Revenues from OSUR’s OTC products result from sales to retail pharmacies and mass merchandisers, and to consumers over the internet. OSUR also derives revenues from licensing and product development activities. DNAG revenues result primarily from products sold into the commercial market which consists of companies and other entities engaged in consumer genetics, clinical genetic testing, pharmacogenomics, personalized medicine, and animal and livestock genetic testing. DNAG products are also sold into the academic research market, which consists of research laboratories, universities and hospitals.

We organized our operating segments according to the nature of the products included in those segments. The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 2). We evaluate performance of our operating segments based on revenue and operating income (loss). We do not allocate interest income, interest expense, other income, other expenses or income taxes to our operating segments. Reportable segments have no inter-segment revenues.

The following table summarizes segment information for the three and six months ended June 30, 2014 and 2013:

 

     Three Months Ended June 30,     Six Months Ended June 30,  
     2014      2013     2014     2013  

Net revenues:

          

OSUR

    $ 21,505       $ 19,683      $ 39,283      $ 36,915   

DNAG

      4,896         4,654        10,655        8,586   
  

 

 

     

 

 

    

 

 

    

 

 

  

Total

    $ 26,401       $ 24,337      $ 49,938      $ 45,501   
  

 

 

     

 

 

    

 

 

    

 

 

  

Operating income (loss):

          

OSUR

    $ 2,203       $ (5,456 )    $ (4,190 )    $ (15,496 ) 

DNAG

      294         (120 )      1,069        (669 ) 
  

 

 

     

 

 

    

 

 

    

 

 

  

Total

    $ 2,497       $ (5,576 )    $ (3,121 )    $ (16,165 ) 
  

 

 

     

 

 

    

 

 

    

 

 

  

Depreciation and amortization:

          

OSUR

    $ 790       $ 797      $ 1,566      $ 1,574   

DNAG

      779         822        1,542        1,647   
  

 

 

     

 

 

    

 

 

    

 

 

  

Total

    $ 1,569       $ 1,619      $ 3,108      $ 3,221   
  

 

 

     

 

 

    

 

 

    

 

 

  

Capital expenditures:

          

OSUR

    $ 1,131       $ 484      $ 1,570      $ 727   

DNAG

      210         128        418        365   
  

 

 

     

 

 

    

 

 

    

 

 

  

Total

    $ 1,341       $ 612      $ 1,988      $ 1,092   
  

 

 

     

 

 

    

 

 

    

 

 

  

 

     June 30, 2014      December 31, 2013  

Total assets:

      

OSUR

    $ 125,845       $ 130,848   

DNAG

      53,720         53,397   
  

 

 

     

 

 

  

Total

    $ 179,565       $ 184,245   
  

 

 

     

 

 

  

Our products are sold principally in the United States and Europe.

The following table represents total revenues by geographic area, based on the location of the customer:

 

     Three Months Ended June 30,      Six Months Ended June 30,  
     2014      2013      2014      2013  

United States

    $ 19,113       $ 18,959       $ 36,518       $ 34,999   

Europe

      3,681         2,438         7,682         5,284   

Other regions

      3,607         2,940         5,738         5,218   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 26,401       $ 24,337       $ 49,938       $ 45,501   
  

 

 

     

 

 

     

 

 

     

 

 

  

The following table represents total long-lived assets by geographic area:

 

     June 30, 2014      December 31, 2013  

United States

    $ 17,205       $ 16,925   

Canada

      1,244         975   

Other regions

      22         33   
  

 

 

     

 

 

  
   $ 18,471       $ 17,933