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Table of Contents
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 2020
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from
                    
to
                    
Commission file number     0-14902
MERIDIAN BIOSCIENCE, INC.
Incorporated under the laws of Ohio
31-0888197
(I.R.S. Employer Identification No.)
3471 River Hills Drive
Cincinnati, Ohio 45244
(513) 271-3700
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading
Symbol(s)
 
Name of each exchange
on which registered
Common Stock, no par value
 
VIVO
 
NASDAQ Global Select Market
Indicate by a check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  
 
 Yes  
    No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation
S-T
(§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). 
 
  Yes  
    No  

Table of Contents
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule
12b-2
of the Exchange Act.
 
Large accelerated filer
 
 
Accelerated filer
 
             
Non-accelerated
 filer
 
 
Smaller reporting company
 
             
Emerging growth company
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
Indicate by check mark whether the registrant is a shell company (as defined in Rule
12b-2
of the Exchange Act).    Yes  
    No  
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
 
Class
 
Outstanding July 31, 2020
Common Stock, no par value
 
42,862,598

Table of Contents
MERIDIAN BIOSCIENCE, INC. AND SUBSIDIARIES
TABLE OF CONTENTS TO QUARTERLY REPORT ON FORM 10-Q
 
 
  
 
  
Page(s)
 
     
PART I.
  
  
     
     
Item 1.
  
  
     
     
 
  
  
 
1
 
     
 
  
  
 
2
 
     
 
  
  
 
3
 
     
 
  
  
 
4-5
 
     
 
  
  
 
6
 
     
 
  
  
 
7-22
 
     
Item 2.
  
  
 
22-31
 
     
Item 3.
  
  
 
31
 
     
Item 4.
  
  
 
31
 
     
PART II.
  
  
     
     
Item 1.
  
  
 
32
 
     
Item 1A.
  
  
 
32
 
     
Item 6.
  
  
 
32
 
     
  
 
  
 
33
 
FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form
10-Q
contains forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor from civil litigation for forward-looking statements accompanied by meaningful cautionary statements. Except for historical information, this report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, which may be identified by words such as “continues”, “estimates”, “anticipates”, “projects”, “plans”, “seeks”, “may”, “will”, “expects”, “intends”, “believes”, “signals”, “should”, “can” and similar expressions or the negative versions thereof and which also may be identified by their context. All statements that address operating performance or events or developments that Meridian expects or anticipates will occur in the future, including, but not limited to, statements relating to per share diluted earnings, sales, product demand, revenue and the impact of
COVID-19
on our business and prospects, are forward-looking statements. Such statements, whether expressed or implied, are based upon current expectations of the Company and speak only as of the date made. Specifically, Meridian’s forward-looking statements are, and will be, based on management’s then-current views and assumptions regarding future events and operating performance. Meridian assumes no obligation to publicly update or revise any forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. These statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially, including, without limitation, the following:
Meridian’s operating results, financial condition and continued growth depends, in part, on its ability to introduce into the marketplace enhancements of existing products or new products that incorporate technological advances, meet customer requirements and respond to products developed by Meridian’s competition, its ability to effectively sell such products and its ability to successfully expand and effectively manage increased sales and marketing operations. While Meridian has introduced a number of internally developed products and acquired products, there can be no assurance that it will be successful in the future in introducing such products on a timely basis or in protecting its intellectual property, and unexpected or costly manufacturing costs associated with its introduction of new products or acquired products could cause actual results to differ from expectations. Meridian relies on proprietary, patented and licensed technologies. As such, the Company’s ability to protect its intellectual property rights, as well as the potential for intellectual property litigation, would impact its results. Ongoing consolidations of reference laboratories and formation of multi-hospital alliances may cause adverse changes to pricing and distribution. Recessionary pressures on the economy and the markets in which our customers operate, as well as adverse trends in buying patterns from customers, can change expected results. Costs and difficulties in complying with laws and regulations, including those administered by the United States Food and Drug Administration, can result in

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unanticipated expenses and delays and interruptions to the sale of new and existing products, as can the uncertainty of regulatory approvals and the regulatory process (including the currently ongoing study and other FDA actions regarding the Company’s LeadCare products). The international scope of Meridian’s operations, including changes in the relative strength or weakness of the U.S. dollar and general economic conditions in foreign countries, can impact results and make them difficult to predict. One of Meridian’s growth strategies is the acquisition of companies and product lines. There can be no assurance that additional acquisitions will be consummated or that, if consummated, will be successful and the acquired businesses will be successfully integrated into Meridian’s operations. There may be risks that acquisitions may disrupt operations and may pose potential difficulties in employee retention, and there may be additional risks with respect to Meridian’s ability to recognize the benefits of acquisitions, including potential synergies and cost savings or the failure of acquisitions to achieve their plans and objectives. Meridian cannot predict the outcome of future goodwill impairment testing and the impact of possible goodwill impairments on Meridian’s earnings and financial results. Meridian cannot predict the possible impact of U.S. health care legislation enacted in 2010 – the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act – and any modification or repeal of any of the provisions thereof initiated by Congress or the presidential administration, and any similar initiatives in other countries on its results of operations. Efforts to reduce the U.S. federal deficit, breaches of Meridian’s information technology systems, trade wars, increased tariffs, and natural disasters and other events could have a materially adverse effect on Meridian’s results of operations and revenues. In the past, the Company has identified a material weakness in our internal control over financial reporting, which has been remediated, but the Company can make no assurances that a material weakness will not be identified in the future, which if identified and not properly corrected, could materially adversely affect our operations and result in material misstatements in our financial statements. Meridian also is subject to risks and uncertainties related to disruptions to or reductions in business operations or prospects due to pandemics, epidemics, widespread health emergencies, or outbreaks of infectious diseases such as the coronavirus disease
COVID-19.
In addition to the factors described in this paragraph, as well as those factors identified from time to time in our filings with the Securities and Exchange Commission, Part I, Item 1A Risk Factors of our most recent Annual Report on Form
10-K
contains a list and description of uncertainties, risks and other matters that may affect the Company. Readers should carefully review these forward-looking statements and risk factors, and not place undue reliance on our forward-looking statements.

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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
MERIDIAN BIOSCIENCE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
(dollar and share amounts in thousands, except per share data)
 
    
Three Months Ended
   
Nine Months Ended
 
 
June 30,
   
June 30,
 
 
2020
 
 
2019
 
 
2020
 
 
2019
 
NET REVENUES
  $
84,797
    $
48,440
    $
189,514
    $
150,168
 
COST OF SALES
   
28,945
     
20,181
     
71,768
     
60,999
 
                                 
GROSS PROFIT
   
55,852
     
28,259
     
117,746
     
89,169
 
                                 
OPERATING EXPENSES
   
     
     
     
 
Research and development
   
6,743
     
4,594
     
16,953
     
12,294
 
Selling and marketing
   
6,261
     
6,747
     
19,459
     
21,221
 
General and administrative
   
12,439
     
8,002
     
31,675
     
24,288
 
Acquisition-related costs
   
1,641
     
473
     
3,428
     
1,445
 
Change in fair value of contingent consideration obligation
   
(6,124
   
—  
     
(7,428
   
—  
 
Restructuring costs
   
93
     
1,801
     
620
     
1,701
 
Selected legal costs
   
134
     
178
     
1,189
     
1,370
 
                                 
Total operating expenses
   
21,187
     
21,795
     
65,896
     
62,319
 
                                 
OPERATING INCOME
   
34,665
     
6,464
     
51,850
     
26,850
 
                                 
OTHER INCOME (EXPENSE)
   
     
     
     
 
Interest income
   
3
     
194
     
137
     
547
 
Interest expense
   
(703
   
(448
   
(2,002
   
(1,158
Other, net
   
908
     
268
     
1,561
     
(38
                                 
Total other income (expense)
   
208
     
14
     
(304
   
(649
                                 
EARNINGS BEFORE INCOME TAXES
   
34,873
     
6,478
     
51,546
     
26,201
 
                                 
INCOME TAX PROVISION
   
7,366
     
1,399
     
11,853
     
5,922
 
                                 
NET EARNINGS
  $
27,507
    $
5,079
    $
39,693
    $
20,279
 
                                 
BASIC EARNINGS PER COMMON SHARE
  $
0.64
    $
0.12
    $
0.93
    $
0.48
 
DILUTED EARNINGS PER COMMON SHARE
  $
0.64
    $
0.12
    $
0.92
    $
0.47
 
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
 -
BASIC
   
42,837
     
42,639
     
42,819
     
42,526
 
EFFECT OF DILUTIVE STOCK OPTIONS AND RESTRICTED SHARE UNITS
   
436
     
271
     
219
     
381
 
                                 
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
 -
DILUTED
   
43,273
     
42,910
     
43,038
     
42,907
 
                                 
ANTI-DILUTIVE SECURITIES:
   
     
     
     
 
Common share options and restricted share units
   
854
     
1,215
     
1,298
     
1,073
 
                                 
DIVIDENDS DECLARED PER COMMON SHARE
  $
—  
    $
—  
    $
—  
    $
0.250
 
                                 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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MERIDIAN BIOSCIENCE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
(dollar amounts in thousands)
 
Three Months Ended
   
Nine Months Ended
 
 
June 30,
   
June 30,
 
 
2020
 
 
2019
 
 
2020
 
 
2019
 
NET EARNINGS
  $
27,507
    $
5,079
    $
39,693
    $
20,279
 
Other comprehensive income (loss):
   
     
     
     
 
Foreign currency translation adjustment
   
597
     
1,692
     
579
     
1,353
 
Unrealized loss on cash flow hedge
   
(390
)    
(297
)    
(703
)    
(1,184
)
Reclassification of gain on cash flow hedge
   
(77
)    
—  
     
(231
)    
—  
 
Income taxes related to items of other comprehensive income
   
115
     
222
     
230
     
445
 
                                 
Other comprehensive income (loss), net of tax
   
245
     
1,617
     
(125
)    
614
 
                                 
COMPREHENSIVE INCOME
  $
27,752
    $
6,696
    $
39,568
    $
20,893
 
                                 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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MERIDIAN BIOSCIENCE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
(dollar amounts in thousands)
 
Nine Months Ended June 30,
 
2020
 
 
2019
 
CASH FLOWS FROM OPERATING ACTIVITIES
   
     
 
Net earnings
  $
39,693
    $
20,279
 
Non-cash
items included in net earnings:
   
     
 
Depreciation of property, plant and equipment
   
3,762
     
3,984
 
Amortization of intangible assets
   
5,604
     
2,778
 
Stock-based compensation
   
2,809
     
2,728
 
Deferred income taxes
   
2,214
     
(852
)
Loss on disposition and write-down of fixed assets
   
  
     
220
 
Change in accrued contingent consideration
   
(7,428
)    
  
 
Change in the following, net of acquisitions:
   
     
 
Accounts receivable
   
(6,352
)    
1,014
 
Inventories
   
(17,828
)    
(67
)
Prepaid expenses and other current assets
   
68
     
(1,849
)
Accounts payable and accrued expenses
   
4,422
     
(1,703
)
Income taxes payable
   
3,401
     
1,402
 
Other, net
   
1,315
     
583
 
                 
Net cash provided by operating activities
   
31,680
     
28,517
 
                 
CASH FLOWS FROM INVESTING ACTIVITIES
   
     
 
Purchase of property, plant and equipment
   
(2,471
)    
(3,314
)
Acquisition of Exalenz
, net of cash acquired
   
(51,299
)    
  
 
Acquisition of GenePOC business
   
     
(45,239
)
                 
Net cash used for investing activities
   
(53,770
)    
(48,553
)
                 
CASH FLOWS FROM FINANCING ACTIVITIES
   
     
 
Dividends paid
   
  
     
(10,612
)
Payment on revolving credit facility
   
(27,000
)    
  
 
Proceeds from revolving credit facility
   
50,000
     
75,824
 
Payment of debt issuance costs
   
(116
)    
(489
)
Payments on term loan
   
  
     
(50,250
)
Proceeds from exercise of stock options
   
  
     
443
 
                 
Net cash
p
rovided by
financing activities
   
22,884
     
14,916
 
                 
Effect of Exchange Rate Changes on Cash and Equivalents
   
254
     
(451
)
                 
Net Increase (Decrease) in Cash and Equivalents
   
1,048
     
(5,571
)
Cash and Equivalents at Beginning of Period
   
62,397
     
60,763
 
                 
Cash and Equivalents at End of Period
  $
63,445
    $
55,192
 
                 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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MERIDIAN BIOSCIENCE, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(dollar amounts in thousands)
ASSETS
 
 
June 30,
2020
(Unaudited)
 
 
September 30,
2019
 
CURRENT ASSETS
   
     
 
Cash and equivalents
  $
63,445
    $
62,397
 
Accounts receivable, less allowances of $527 and $537, respectively
   
42,384
     
35,608
 
Inventories
   
60,468
     
39,617
 
Prepaid expenses and other current assets
   
7,909
     
7,139
 
                 
Total current assets
   
174,206
     
144,761
 
                 
PROPERTY, PLANT AND EQUIPMENT, at Cost
   
     
 
Land
   
986
     
982
 
Buildings and improvements
   
32,132
     
31,904
 
Machinery, equipment and furniture
   
67,563
     
64,155
 
Construction in progress
   
1,455
     
522
 
                 
Subtotal
   
102,136
     
97,563
 
Less: accumulated depreciation and amortization
   
71,328
     
66,996
 
                 
Net property, plant and equipment
   
30,808
     
30,567
 
                 
OTHER ASSETS
   
     
 
Goodwill
   
118,567
     
89,241
 
Other intangible assets, net
   
83,363
     
60,243
 
Right-of-use
assets
   
6,472
     
—  
 
Deferred income taxes
   
5,701
     
156
 
Other assets
   
670
     
510
 
                 
Total other assets
   
214,773
     
150,150
 
                 
TOTAL ASSETS
  $
419,787
    $
325,478
 
                 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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MERIDIAN BIOSCIENCE, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(dollar amounts in thousands)
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
June 30,
2020
(Unaudited)
 
 
September 30,
2019
 
CURRENT LIABILITIES
   
     
 
Accounts payable
  $
13,492
    $
7,238
 
Accrued employee compensation costs
   
12,408
     
7,938
 
Current portion of acquisition consideration
   
5,000
     
 
Current operating lease obligations
   
1,827
     
—  
 
Current government grant obligations
   
577
     
—  
 
Other accrued expenses
   
4,856
     
3,758
 
Income taxes payable
   
5,341
     
1,980
 
                 
Total current liabilities
   
43,501
     
20,914
 
                 
NON-CURRENT
LIABILITIES
   
     
 
Acquisition consideration
   
19,774
     
32,202
 
Post-employment benefits
   
2,450
     
2,500
 
Fair value of interest rate swaps
   
703
     
—  
 
Long-term operating lease obligations
   
4,887
     
—  
 
Long-term debt
   
98,824
     
75,824
 
Government grant obligations
 
 
10,596
 
 
 
 
Long-term income taxes payable
   
549
     
549
 
Deferred income taxes
   
4,711
     
2,522
 
Other
non-current
liabilities
   
457
     
—  
 
                 
Total
non-current
liabilities
   
142,951
     
113,597
 
                 
COMMITMENTS AND CONTINGENCIES
   
   
                 
SHAREHOLDERS’ EQUITY
   
     
 
Preferred stock, no par value; 1,000,000 shares authorized; none issued
   
—  
     
—  
 
Common shares, no par value; 71,000,000 shares authorized, 42,839,088 and 42,712,296 shares issued, respectively
   
—  
     
—  
 
Additional
paid-in
capital
   
135,634
     
132,834
 
Retained earnings
   
102,801
     
63,108
 
Accumulated other comprehensive loss
   
(5,100
)    
(4,975
)
                 
Total shareholders’ equity
   
233,335
     
190,967
 
                 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
  $
419,787
    $
325,478
 
                 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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MERIDIAN BIOSCIENCE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)
(dollar and share amounts in thousands, except per share data)
 
 
 
Common
Shares
Issued
   
Additional
Paid-In

Capital
   
Retained
Earnings
   
Accumulated Other
Comprehensive
Income (Loss)
   
Total
Shareholders’
Equity
 
THREE MONTHS ENDED JUNE 30, 2020
Balance at March 31, 2020
   
42,831
    $
134,584
    $
75,294
    $
(5,345)
    $
204,533
 
Conversion of restricted share units
   
8
     
—  
     
—  
     
—  
     
—  
 
Stock compensation expense
   
—  
     
1,050
     
—  
     
—  
     
1,050
 
Net earnings
   
—  
     
—  
     
27,507
     
—  
     
27,507
 
Foreign currency translation adjustment
   
—  
     
—  
     
—  
     
597
     
597
 
Hedging activity, net of tax
   
—  
     
—  
     
—  
     
(352)
     
(352)
 
                                         
Balance at June 30, 2020
   
42,839
    $
135,634
    $
102,801
    $
(5,100)
    $
233,335
 
                                         
THREE MONTHS ENDED JUNE 30, 2019
Balance at March 31, 2019
   
42,515
    $
131,951
    $
54,074
    $
(4,380)
    $
181,645
 
Conversion of restricted share units and exercise of stock options
   
156
     
—  
     
—  
     
—  
     
—  
 
Stock compensation expense
   
—  
     
360
     
—  
     
—  
     
360
 
Net earnings
   
—  
     
—  
     
5,079
     
—  
     
5,079
 
Foreign currency translation adjustment
   
—  
     
—  
     
—  
     
1,692
     
1,692
 
Hedging activity, net of tax
   
—  
     
—  
     
—  
     
(223)
     
(223)
 
Adoption of ASU
2018-02
   
—  
     
—  
     
(148)
     
148
     
—  
 
                                         
Balance at June 30, 2019
   
42,671
    $
132,311
    $
59,005
    $
(2,763)
    $
188,553
 
                                         
 
Common
Shares
Issued
   
Additional
Paid-In

Capital
   
Retained
Earnings
   
Accumulated Other
Comprehensive
Income (Loss)
   
Total
Shareholders’
Equity
 
NINE MONTHS ENDED JUNE 30, 2020
Balance at September 30, 2019
   
42,712
    $
132,834
    $
63,108
    $
(4,975)
    $
190,967
 
Conversion of restricted share units
   
127
     
(9)
     
—  
     
—  
     
(9)
 
Stock compensation expense
   
—  
     
2,809
     
—  
     
—  
     
2,809
 
Net earnings
   
—  
     
—  
     
39,693
     
—  
     
39,693
 
Foreign currency translation adjustment
   
—  
     
—  
     
—  
     
579
     
579
 
Hedging activity, net of tax
   
—  
     
—  
     
—  
     
(704)
     
(704)
 
                                         
Balance at June 30, 2020
   
42,839
    $
135,634
    $
102,801
    $
(5,100)
    $
233,335
 
                                         
NINE MONTHS ENDED JUNE 30, 2019
Balance at September 30, 2018
   
42,400
    $
129,193
    $
49,602
    $
(3,377)
    $
175,418
 
Cash dividends paid
 -
$0.250 per share
   
—  
     
—  
     
(10,612)
     
—  
     
(10,612)
 
Conversion of restricted share units and exercise of stock options
   
271
     
390
     
—  
     
—  
     
390
 
Stock compensation expense
   
—  
     
2,728
     
—  
     
—  
     
2,728
 
Net earnings
   
—  
     
—  
     
20,279
     
—  
     
20,279
 
Foreign currency translation adjustment
   
—  
     
—  
     
—  
     
1,353
     
1,353
 
Hedging activity, net of tax
   
—  
     
—  
     
—  
     
(887)
     
(887)
 
Adoption of ASU
2014-09
   
—  
     
—  
     
(116)
     
—  
     
(116)
 
Adoption of ASU
2018-02
   
—  
     
—  
     
(148)
     
148
     
—  
 
                                         
Balance at June 30, 2019
   
42,671
    $
132,311
    $
59,005
    $
(2,763)
    $
188,553
 
                                         
The accompanying notes are an integral part of these condensed consolidated financial statements.
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Table of Contents
MERIDIAN BIOSCIENCE, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
Dollars in Thousands, Except Per Share Amounts
(Unaudited)
 
1.
Basis of Presentation
The interim condensed consolidated financial statements are unaudited and are prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information, and the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. In the opinion of Management, the interim financial statements include all normal adjustments and disclosures necessary to present fairly the Company’s financial position as of June 30, 2020, the results of its operations for the three- and nine-month periods ended June 30, 2020 and 2019, and its cash flows for the nine-month periods ended June 30, 2020 and 2019. These statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s fiscal 2019 Annual Report on Form
10-K. Financial
information as of September 30, 2019 has been derived from the Company’s audited consolidated financial statements.
The results of operations for interim periods are not necessarily indicative of the results to be expected for the year. In December 2019, the
SARS-CoV-2
virus emerged in Wuhan, China and spread to other parts of the world. In March 2020, the World Health Organization (“WHO”) designated
COVID-19
(the disease caused by
SARS-CoV-2)
a global pandemic. Governments around the world implemented lockdown and
shelter-in-place
orders, requiring many
non-essential
businesses to shut down operations throughout a substantial portion of the last five months, some of which remain in effect as of the date of this filing. The Company’s business, however, was deemed “essential” and we have continued to operate, manufacture and distribute our products to customers globally.
While revenues within our Life Science segment have been positively impacted by the COVID-19 pandemic, to-date, the negative impacts of
COVID-19
on the Company have been limited to decreased demand for certain of our Diagnostics segment’s products and the pausing and/or slowing of clinical trials for new product development programs, as diagnostics testing has focused primarily on
COVID-19
and critical care ailments. Although we do not expect to sustain the level of Life Science revenues experienced during the fiscal quarter ended June 30, 2020, over the next twelve months, we do expect current general directional trends in our revenues to continue. Specifically, we expect our Life Science segment to continue to experience elevated levels of demand for
COVID-19
reagents, but we also expect our Diagnostics segment’s level of revenues to improve as health care facilities return to
pre-pandemic
non-critical
care testing and treatments. However, due to the many uncertainties surrounding the COVID-19 pandemic, we can provide no assurances with respect to our views of the longevity, severity or impacts to our financial condition of the
COVID-19
pandemic. See Management’s Discussion and Analysis of Financial Condition and Results of Operations included herein for additional discussion of the effects of the
COVID-19
pandemic on the Company and its results of
operations.
 
2.
Significant Accounting Policies
A summary of the Company’s significant accounting policies is included in Note 1 to the audited consolidated financial statements of the Company’s fiscal 2019 Annual Report on Form
10-K
and should be referred to for a description of the Company’s current significant accounting policies, with the exception of Revenue Recognition and Fair Value Measurements, which are set forth below.
 
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Table of Contents
(a) Revenue Recognition –
Revenue Disaggregation
The following tables present our revenues disaggregated by major geographic region, major product platform and disease state (Diagnostics only), noting that “Non-molecular assays” is comprised of traditional immunoassays, blood chemistry assays and urea breath tests:​​​​​​​
Revenue by Reportable Segment & Geographic Region
 
Three Months Ended June 30,
   
Nine Months Ended June 30,
 
 
2020
 
 
2019
 
 
Inc (Dec)
 
 
2020
 
 
2019
 
 
Inc (Dec)
 
Diagnostics-
   
     
     
     
     
     
 
Americas
  $
  17,575
    $
  27,356
     
(36
)%   $
  72,980
    $
84,042
     
(13
)%
EMEA
   
3,576
     
5,076
     
(30
)%    
16,853
     
17,427
     
(3
)%
ROW
   
447
     
686
     
(35
)%    
1,498
     
1,814
     
(17
)%
                                                 
Total Diagnostics
   
21,598
     
33,118
     
(35
)%    
91,331
     
103,283
     
(12
)%
                                                 
Life Science-
   
            
     
            
     
          
     
            
     
            
     
          
 
Americas
   
22,015
     
4,369
     
404
%    
30,642
     
14,347
     
114
%
EMEA
   
26,070
     
6,389
     
308
%    
40,977
     
21,608
     
90
%
ROW
   
15,114
     
4,564
     
231
%    
26,564
     
10,930
     
143
%
                                                 
Total Life Science
   
63,199
     
15,322
     
312
%    
98,183
     
46,885
     
109
%
                                                 
Consolidated
  $
  84,797
    $
  48,440
     
75
%   $
  189,514
    $
  150,168
     
26
%
                                                 
Revenue by Product Platform/Type
 
Three Months Ended June 30,
   
Nine Months Ended June 30,
 
 
2020
 
 
2019
 
 
Inc (Dec)
 
 
2020
 
 
2019
 
 
Inc (Dec)
 
Diagnostics-
   
     
     
     
     
     
 
Molecular assays
  $
3,182
    $
5,894
     
(46
)%   $
  17,259
    $
20,208
     
(15
)%
Non
-m
olecular assays
   
18,416
     
27,224
     
(32
)%    
74,072
     
83,075
     
(11
)
%
                                                 
Total Diagnostics
  $
  21,598
    $
  33,118
     
(35
)%   $
91,331
    $
  103,283
     
(12
)%
                                                 
Life Science-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Molecular reagents
  $
  38,784
    $
5,495
     
606
%   $
  55,691
    $
17,495
     
218
%
Immunological reagents
   
24,415
     
9,827
     
148
%    
42,492
     
29,390
     
45
%
                                                 
Total Life Science
  $
  63,199
    $
  15,322
     
312
%   $
  98,183
    $
46,885
     
109
%
                                                 
Revenue by Disease State (Diagnostics only)
 
Three Months Ended June 30,
   
Nine Months Ended June 30,
 
 
2020
 
 
2019
 
 
Inc (Dec)
 
 
2020
 
 
2019
 
 
Inc (Dec)
 
Diagnostics-
   
     
     
     
     
     
 
Gastrointestinal assays
  $
  9,584
    $
  17,232
     
(44
)%   $
  39,644
    $
52,024
     
(24
)%
Respiratory illness assays
   
5,052
     
5,708
     
(11
)%