SEGMENT INFORMATION

12 Months Ended

Sep. 30, 2018

12. SEGMENT INFORMATION

We operate in two principal segments – contract research services and research products. Our Services segment provides research and development support on a contract basis directly to pharmaceutical companies. Because Seventh Wave is a consulting-based contract research laboratory whose core business involves providing integrated services for discovery and preclinical drug development, we consider it part of our Services segment. As such, the financial results are shown in the Services segment data below. Our Products segment provides liquid chromatography, electrochemical and physiological monitoring products to pharmaceutical companies, universities, government research centers, and medical research institutions. We evaluate performance and allocate resources based on these segments. Certain of our assets are not directly attributable to the Services or Products segments. These assets are grouped into the Corporate segment and include cash and cash equivalents, deferred income taxes, refundable income taxes, debt issue costs and certain other assets. We do not allocate such items to the principal segments because they are not used to evaluate their financial position. The accounting policies of these segments are the same as those described in the summary of significant accounting policies.

(a)

Operating Segments

	Years Ended September 30,
	2018			2017
Revenue:
Services	$	22,440		$	20,182
Products		3,906			4,060
	$	26,346		$	24,242
Operating income (loss):
Services	$	763		$	1,755
Products		(749	)		(477	)
	$	14		$	1,278

Interest Expense		(274	)		(375	)
Other income		6			5
Income (loss) before income taxes	$	(254	)	$	908

	Years Ended September 30,					Years Ended September 30,
	2018		2017			2018		2017
Identifiable assets:					Depreciation and amortization:
Services	$	24,514	$	12,512	Services	$	1,599	$	1,318
Products		3,469		4,807	Products		276		362
Corporate		3,285		3,098		$	1,875	$	1,680
	$	31,268	$	20,417

Goodwill, net:					Capital expenditures:
Services	$	3,072	$	38	Services	$	1,200	$	307
Products		—		—	Products		117		40
	$	3,072	$	38		$	1,317	$	347

(b)

Geographic Information

	Years Ended September 30,
	2018		2017
Sales to External Customers:
United States	$	22,290	$	21,645
Other North America		163		266
Pacific Rim		3,073		1,395
Europe		670		774
Other		150		162
	$	26,346	$	24,242

Long-lived Assets:
United States	$	23,136	$	15,111
	$	23,136	$	15,111

(c)

Major Customers

In fiscal 2018, our Services group continued its presence at several important existing customers. In fiscal 2018, one customer accounted for approximately 11.2% of total sales and 4.0% of total trade accounts receivable at September 30, 2018. In fiscal 2017, this customer accounted for approximately 13.1% of total sales and 5.2% of total trade accounts receivable at September 30, 2017. The customer discussed is included in our Services segment. There can be no assurance that our business will move away from dependence upon a limited number of customer relationships.