Annual report pursuant to Section 13 and 15(d)

Segment Information

v2.4.0.8
Segment Information
 12 Months Ended
Dec. 31, 2013
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
Segment Information
 
The accounting policies followed by the segments are described in Note 1, Nature of Business and Significant Accounting Policies.  Corporate charges are allocated to each of the reporting segments on the basis of total salary expense. Corporate charges include corporate headquarter costs and certain depreciation expenses. Certain corporate capital expenditures have not been allocated from Sales Services to the other reporting segments since it is impracticable to do so.
 
The Company reports under the following three segments:
 
Sales Services segment – includes the Company’s Dedicated Sales Teams, Established Relationship Teams and EngageCE, the Company’s clinical educators business unit.  This segment provides services through personal promotion with healthcare providers and uses teams to deliver services to a wide base. These businesses have similar long-term average gross margins, contract terms, types of customers and regulatory environments and therefore the business units have been aggregated into one reporting segment.
 
Marketing Services segment – includes the Company’s Group DCA and PDI Voice (Voice) business units.  This segment provides services though non-personal promotion with healthcare providers and is project driven. The units comprising this segment have a large number of smaller contracts, share similar gross margins, have similar customers, and have low barriers to entry for competition and therefore the business units have been aggregated into one reporting segment.  The offerings within this segment include peer-to-peer, interactive digital and telephonic communications with healthcare providers. Formerly this segment included TVG, whose operations were discontinued in 2010, and Pharmakon, whose operations were discontinued in 2011.
 
PC Services segment – includes the Company's Interpace BioPharma business unit and expenditures related to the collaboration arrangements for molecular diagnostic tests. Interpace BioPharma provides biopharmaceutical clients with full-service product commercialization solutions. These services include product distribution, product detailing, full supply chain management, operations, sales, marketing, compliance, and regulatory/medical management. Expenses under the Company's collaboration arrangements include: consulting fees; legal fees; and personnel costs, such as salaries, bonuses, fringe benefits and payroll taxes for the sales representatives, managers and professional staff that are directly responsible for executing the collaboration arrangements.
 
Sales
Services
 
Marketing
Services
 
PC
Services
 
Consolidated
For the year ended December 31, 2013:
 
 
 
 
 
 
 
Revenue
$
133,968

 
$
4,569

 
$
12,305

 
$
150,842

Operating (loss) income
$
(1,753
)
 
$
(4,390
)
 
$
1,866

 
$
(4,277
)
Capital expenditures
$
712

 
$
1,106

 
$
—

 
$
1,818

Depreciation expense
$
1,063

 
$
292

 
$
70

 
$
1,425

Total assets
$
60,264

 
$
5,284

 
$
3,516

 
$
69,064

For the year ended December 31, 2012:
 

 
 

 
 

 
 

Revenue
$
99,206

 
$
10,127

 
$
17,566

 
$
126,899

Operating (loss) income
$
(930
)
 
$
(27,465
)
 
$
3,163

 
$
(25,232
)
Capital expenditures
$
1,064

 
$
48

 
$
—

 
$
1,112

Depreciation expense
$
808

 
$
253

 
$
70

 
$
1,131

Total assets
$
64,741

 
$
6,125

 
$
7,581

 
$
78,447