Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.20.2
Segment Information
6 Months Ended
Jun. 30, 2020
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 payers, and patients. Our Pharma Services segment supports pharmaceutical firms in their drug development programs by supporting various clinical trials and research.
The financial information reviewed by the Chief Operating Decision Maker (“CODM”) includes revenues, cost of revenue and gross margin for each of the Company’s operating segments. Assets are not presented at the segment level as that information is not used by the CODM.
The following table summarizes the segment information (in thousands):

Three Months Ended June 30, Six Months Ended June 30,
2020 2019 2020 2019
Net revenues:
Clinical Services $ 73,884    $ 88,982    $ 166,866    $ 175,192   
Pharma Services 13,093    12,731    26,141    22,098   
Total revenue 86,977    101,713    193,007    197,290   
Cost of revenue:
Clinical Services 48,757    46,380    97,680    89,031   
Pharma Services 10,214    6,367    20,952    12,178   
Total cost of revenue 58,971    52,747    118,632    101,209   
Gross Profit:
Clinical Services 25,127    42,602    69,186    86,161   
Pharma Services 2,879    6,364    5,189    9,920   
Total gross profit 28,006    48,966    74,375    96,081   
Operating expenses:
General and administrative 34,613    29,577    70,957    61,719   
Research and development 2,105    2,587    4,165    3,796   
Sales and marketing 10,195    12,324    23,453    23,540   
Total operating expenses 46,913    44,488    98,575    89,055   
(Loss) income from operations (18,907)   4,478    (24,200)   7,026   
Interest expense, net 1,548    1,304    2,367    3,130   
Other (income) expense, net (7,405)   (10)   (7,628)   5,159   
Loss on extinguishment of debt 1,400    1,018    1,400    1,018   
Loss on termination of cash flow hedge 3,506    —    3,506    —   
(Loss) income before taxes (17,956)   2,166    (23,845)   (2,281)  
Income tax (benefit) expense (11,132)   175    (10,043)   (1,848)  
Net (loss) income $ (6,824)   $ 1,991    $ (13,802)   $ (433)