Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.19.1
Segment Information
3 Months Ended
Mar. 31, 2019
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company has two operating segments for which it recognizes revenue; Clinical Services and Pharma Services. Our Clinical Services segment provides various clinical testing services to community-based pathology practices, hospital pathology labs and academic centers with reimbursement from various payers including client direct billing, commercial insurance, Medicare and other government, and patients. Our Pharma Services segment supports pharmaceutical firms in their drug development programs by supporting various clinical trials and research.

We have presented the financial information reviewed by the Chief Operating Decision Maker (“CODM”) including revenues, cost of revenue and gross margin for each of our operating segments. Assets are not presented at the segment level as that information is not used by the CODM.  

The following table summarizes segment information for the three month periods ended March 31, 2019 and 2018, respectively (in thousands).    
Three Months Ended March 31,
2019 2018
Net revenues:
Clinical Services $ 86,210  $ 56,971 
Pharma Services 9,367  6,452 
Total Revenue $ 95,577  $ 63,423 
Cost of revenue:
Clinical Services $ 42,651  $ 31,042 
Pharma Services 5,811  5,078 
Total Cost of Revenue $ 48,462  $ 36,120 
Gross Profit:
Clinical Services $ 43,559  $ 25,929 
Pharma Services 3,556  1,374 
Total Gross Profit $ 47,115  $ 27,303 
Operating expenses:
General and administrative $ 32,142  $ 17,067 
Research and development 1,209  956 
Sales and marketing 11,216  6,775 
Total operating expenses 44,567  24,798 
Income from Operations 2,548  2,505 
Interest expense, net 1,826  1,486 
Other expense (income) 5,169  (63)
(Loss) income before taxes (4,447) 1,082 
Income tax (benefit) expense (2,023) 438 
Net (Loss) Income $ (2,424) $ 644