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Business Segment Information
 9 Months Ended
Sep. 30, 2015
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 diagnostic products, specimen collection devices and medical devices; and our molecular collection systems or “DNAG” business, which primarily 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, commercial and industrial entities, retail pharmacies, mass merchandisers, and to consumers over the internet. OSUR also derives other revenues, including exclusivity payments for co-promotion rights and other licensing and product development activities. DNAG revenues result primarily from products sold into the commercial market which consists of customers 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 operating segment information for the three and nine months ended September 30, 2015 and 2014, and asset information as of September 30, 2015 and December 31, 2014:

 

     Three Months Ended
September 30,		      Nine Months Ended
September 30,		  
     2015      2014      2015      2014  

Net revenues:

            

OSUR

    $ 22,532       $ 20,978       $ 65,189       $ 60,260   

DNAG

      7,329         6,867         22,148         17,523   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 29,861       $ 27,845       $ 87,337       $ 77,783   
  

 

 

     

 

 

     

 

 

     

 

 

  

Operating income (loss):

            

OSUR

    $ 725       $ (987 )     $ (111 )     $ (5,177 ) 

DNAG

      811         1,869         4,077         2,938   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 1,536       $ 882       $ 3,966       $ (2,239 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Depreciation and amortization:

            

OSUR

    $ 764       $ 820       $ 2,224       $ 2,386   

DNAG

      646         804         2,035         2,346   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 1,410       $ 1,624       $ 4,259       $ 4,732   
  

 

 

     

 

 

     

 

 

     

 

 

  

Capital expenditures:

            

OSUR

    $ 536       $ 298       $ 1,102       $ 1,868   

DNAG

      204         67         783         485   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 740       $ 365       $ 1,885       $ 2,353   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

     September 30, 2015      December 31, 2014  

Total assets:

      

OSUR

    $ 141,506       $ 136,542   

DNAG

      52,340         53,091   
  

 

 

     

 

 

  

Total

    $ 193,846       $ 189,633   
  

 

 

     

 

 

  

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
September 30,		      Nine Months Ended
September 30,		  
     2015      2014      2015      2014  

United States

    $ 24,207       $ 22,469       $ 69,695       $ 58,987   

Europe

      2,738         3,252         10,051         10,935   

Other regions

      2,916         2,124         7,591         7,861   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 29,861       $ 27,845       $ 87,337       $ 77,783   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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

 

     September 30, 2015      December 31, 2014  

United States

    $ 15,866       $ 16,570   

Canada

      1,923         1,353   

Other regions

      11         11   
  

 

 

     

 

 

  
   $ 17,800       $ 17,934