Meridian Bioscience (VIVO) 10-Q 7 Feb 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2017	Jan. 31, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Trading Symbol	VIVO
Entity Registrant Name	MERIDIAN BIOSCIENCE INC
Entity Central Index Key	794,172
Current Fiscal Year End Date	--09-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		42,307,742

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Statement [Abstract]
NET REVENUES	$ 52,283	$ 46,809
COST OF SALES	20,497	17,770
GROSS PROFIT	31,786	29,039
OPERATING EXPENSES
Research and development	4,496	3,597
Selling and marketing	8,842	7,618
General and administrative	8,904	7,739
CEO transition and litigation costs	1,483
Total operating expenses	23,725	18,954
OPERATING INCOME	8,061	10,085
OTHER INCOME (EXPENSE)
Interest income	72	22
Interest expense	(395)	(423)
Other, net	(80)	(25)
Total other expense	(403)	(426)
EARNINGS BEFORE INCOME TAXES	7,658	9,659
INCOME TAX PROVISION	1,356	3,380
NET EARNINGS	$ 6,302	$ 6,279
BASIC EARNINGS PER COMMON SHARE	$ 0.15	$ 0.15
DILUTED EARNINGS PER COMMON SHARE	$ 0.15	$ 0.15
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC	42,263	42,159
EFFECT OF DILUTIVE STOCK OPTIONS AND RESTRICTED SHARE UNITS	399	376
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED	42,662	42,535
ANTI-DILUTIVE SECURITIES:
Common share options and restricted share units	1,034	715
DIVIDENDS DECLARED PER COMMON SHARE	$ 0.125	$ 0.200

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
NET EARNINGS	$ 6,302	$ 6,279
Other comprehensive income (loss):
Foreign currency translation adjustment	291	(1,423)
Unrealized gain on cash flow hedge	341	1,560
Income taxes related to items of other comprehensive income	(112)	(589)
Other comprehensive income (loss), net of tax	520	(452)
COMPREHENSIVE INCOME	$ 6,822	$ 5,827

Condensed Consolidated Stateme4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
NET EARNINGS	$ 6,302	$ 6,279
Non-cash items included in net earnings:
Depreciation of property, plant and equipment	1,146	1,078
Amortization of intangible assets	938	968
Amortization of deferred instrument costs	201	257
Stock-based compensation	1,759	1,884
Deferred income taxes	(1,624)	2,091
Change in:
Accounts receivable	(2,989)	2,191
Inventories	(2,353)	(169)
Prepaid expenses and other current assets	87	(406)
Accounts payable and accrued expenses	1,315	(913)
Income taxes payable	497	44
Other, net	(108)	(311)
Net cash provided by operating activities	5,171	12,993
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment	(1,234)	(1,392)
Net cash used for investing activities	(1,234)	(1,392)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid	(5,288)	(8,440)
Payments on term loan	(1,125)	(750)
Proceeds and tax benefits from exercises of stock options		301
Net cash used for financing activities	(6,413)	(8,889)
Effect of Exchange Rate Changes on Cash and Equivalents	115	(662)
Net (Decrease) Increase in Cash and Equivalents	(2,361)	2,050
Cash and Equivalents at Beginning of Period	57,072	47,226
Cash and Equivalents at End of Period	$ 54,711	$ 49,276

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
CURRENT ASSETS
Cash and equivalents	$ 54,711	$ 57,072
Accounts receivable, less allowances of $306 and $307	32,136	29,106
Inventories	43,644	41,493
Prepaid expenses and other current assets	6,126	6,204
Total current assets	136,617	133,875
PROPERTY, PLANT AND EQUIPMENT, at Cost
Land	1,164	1,162
Buildings and improvements	32,244	32,207
Machinery, equipment and furniture	49,367	48,836
Construction in progress	2,374	1,895
Subtotal	85,149	84,100
Less: accumulated depreciation and amortization	54,749	53,590
Net property, plant and equipment	30,400	30,510
OTHER ASSETS
Goodwill	54,997	54,926
Other intangible assets, net	25,777	26,704
Restricted cash	1,000	1,000
Deferred instrument costs, net	1,415	1,368
Fair value of interest rate swap	1,156	815
Deferred income taxes	146	158
Other assets	443	421
Total other assets	84,934	85,392
TOTAL ASSETS	251,951	249,777
CURRENT LIABILITIES
Accounts payable	8,507	7,719
Accrued employee compensation costs	4,801	4,536
Current portion of acquisition consideration	2,095	2,095
Other accrued expenses	2,795	2,789
Current portion of long-term debt	4,500	4,500
Income taxes payable	776	1,248
Total current liabilities	23,474	22,887
NON-CURRENT LIABILITIES
Acquisition consideration	235	235
Post-employment benefits	2,551	2,468
Long-term debt	49,030	50,147
Long-term income taxes payable	854
Deferred income taxes	2,929	4,455
Total non-current liabilities	55,599	57,305
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, 42,307,542 and 42,207,317 shares issued, respectively	0	0
Additional paid-in capital	127,367	125,608
Retained earnings	47,937	46,923
Accumulated other comprehensive loss	(2,426)	(2,946)
Total shareholders' equity	172,878	169,585
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 251,951	$ 249,777

Condensed Consolidated Balance6

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Statement of Financial Position [Abstract]
Allowances for accounts receivable	$ 306	$ 307
Preferred stock, par value
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Common stock, par value
Common stock, shares authorized	71,000,000	71,000,000
Common stock, shares issued	42,307,542	42,207,317

Condensed Consolidated Stateme7

Condensed Consolidated Statement of Changes in Shareholders' Equity (Unaudited) - 3 months ended Dec. 31, 2017 - USD ($) shares in Thousands, $ in Thousands	Total	Common Shares Issued [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Beginning balance at Sep. 30, 2017	$ 169,585		$ 125,608	$ 46,923	$ (2,946)
Beginning balance, Shares at Sep. 30, 2017		42,207
Cash dividends paid	(5,288)			(5,288)
Conversion of restricted share units	0	$ 0	0	0	0
Conversion of restricted share units, Shares		100
Stock compensation expense	1,759		1,759
NET EARNINGS	6,302			6,302
Foreign currency translation adjustment	291				291
Hedging activity, net of tax	229				229
Ending balance at Dec. 31, 2017	$ 172,878		$ 127,367	$ 47,937	$ (2,426)
Ending balance, Shares at Dec. 31, 2017		42,307

Basis of Presentation

Basis of Presentation	3 Months Ended
	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	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 December 31, 2017, the results of its operations for the three month periods ended December 31, 2017 and 2016, and its cash flows for the three month periods ended December 31, 2017 and 2016. These statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s fiscal 2017 Annual Report on Form 10-K. Financial information as of September 30, 2017 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.

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Significant Accounting Policies	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 2017 Annual Report on Form 10-K. Recent Accounting Pronouncements – In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers 2014-09. 2014-09 In February 2016, the FASB issued ASU 2016-02, Leases In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting paid-in Reclassifications – Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation. Such reclassifications had no impact on net earnings or shareholders’ equity.

Cash and Equivalents

Cash and Equivalents	3 Months Ended
	Dec. 31, 2017
Cash and Cash Equivalents [Abstract]
Cash and Equivalents	3. Cash and Equivalents Cash and equivalents include the following components: December 31, 2017 September 30, 2017 Cash and Other Cash and Other Institutional money market funds $ 20,155 $ — $ 20,104 $ — Cash on hand - Restricted — 1,000 — 1,000 Unrestricted 34,556 — 36,968 — Total $ 54,711 $ 1,000 $ 57,072 $ 1,000

Inventories

Inventories	3 Months Ended
	Dec. 31, 2017
Inventory Disclosure [Abstract]
Inventories	4. Inventories Inventories are comprised of the following: December 31, September 30, Raw materials $ 7,989 $ 6,575 Work-in-process 12,110 11,559 Finished goods - instruments 1,271 1,460 Finished goods - kits and reagents 22,274 21,899 Total $ 43,644 $ 41,493

Intangible Assets

Intangible Assets	3 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	5. Intangible Assets A summary of our acquired intangible assets subject to amortization, as of December 31, 2017 and September 30, 2017, is as follows: December 31, 2017 September 30, 2017 Gross Accumulated Gross Accumulated Manufacturing technologies, core products and cell lines $ 22,341 $ 13,117 $ 22,332 $ 12,807 Trade names, licenses and patents 8,699 4,632 8,689 4,398 Customer lists, customer relationships and supply agreements 24,586 12,190 24,562 11,854 Non-compete 720 630 720 540 $ 56,346 $ 30,569 $ 56,303 $ 29,599 The actual aggregate amortization expense for these intangible assets was $938 and $968 for the three months ended December 31, 2017 and 2016, respectively. The estimated aggregate amortization expense for these intangible assets for each of the fiscal years through fiscal 2023 is as follows: remainder of fiscal 2018 – $2,628, fiscal 2019 – $3,343, fiscal 2020 – $3,178, fiscal 2021 – $2,561, fiscal 2022 – $2,182, and fiscal 2023 – $2,170. On May 17, 2017, the FDA issued a field safety notice advising customers to discontinue use of Magellan’s lead testing systems with venous blood samples. This field safety notice was followed by product recall notices on May 25 th th Subsequent to the issuances of these field safety and product recall notices, the FDA completed an inspection of Magellan’s Quality System, and issued its Form 483, Inspectional Observations, on June 29, 2017, which was expectedly followed by a Warning Letter issued on October 23, 2017. The Warning Letter requires periodic reporting on our remediation progress. To date, we have satisfied our post-Warning Letter reporting requirements with the FDA. During the first quarter of fiscal 2018, we incurred approximately $500 in Quality System remediation costs, primarily related to regulatory consultants. As a result of these matters, we expect to experience delays in reinstating venous blood sample testing on our LeadCare products, as well as in obtaining 510(k) clearance for new Magellan products. We also expect delays in obtaining export certifications for Magellan products during the remediation period. In light of these factors and their impacts, during our 2017 third fiscal quarter, it was determined that a potential impairment of goodwill recorded in connection with the acquisition of Magellan had occurred (i.e., a “triggering event”). With the assistance of an independent valuation firm, Magellan’s fair value was calculated via both market (comparable company) and income (discounted cash flows) approaches. Based upon these approaches, it was determined that the carrying value of the Magellan reporting unit did, in fact, exceed its fair value. As a result, an impairment charge of $6,628, on both a pre-tax after-tax

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	6. Income Taxes On December 22, 2017, the United States enacted tax reform legislation commonly known as the Tax Cuts and Jobs Act (the “tax reform act”). In applying the tax reform act, we followed the guidance in SEC Staff Accounting Bulletin 118 (“SAB 118”), regarding the application of ASC Topic 740 in situations where a company does not have the necessary information available, prepared or analyzed in reasonable detail to complete the accounting for certain income tax effects of the tax reform act for the reporting period in which the tax reform act was enacted. SAB 118 provides for a measurement period beginning in the reporting period that includes the tax reform act’s enactment date and ending when a company has obtained, prepared and analyzed the information needed in order to complete the accounting requirements, but in no circumstances should the measurement period extend beyond one year from the enactment date. We completed the accounting for the effects of the tax reform act during the quarter ended December 31, 2017, except for the effects related to the one-time Accounting for the remaining income tax effects of the tax reform act which impact our tax provision has been substantially completed and are included in the accompanying Condensed Consolidated Financial Statements as of December 31, 2017. We recorded a one-time re-measurement re-measurement re-measured

Bank Credit Arrangements

Bank Credit Arrangements	3 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Bank Credit Arrangements	7. Bank Credit Arrangements In connection with the acquisition of Magellan Biosciences, Inc., and its wholly-owned subsidiary Magellan Diagnostics, Inc. (collectively, “Magellan”), on March 22, 2016 the Company entered into a $60,000 five-year term loan with a commercial bank. The term loan requires quarterly principal and interest payments, with interest at a variable rate tied to LIBOR, and a balloon principal payment due March 31, 2021. The required principal payments on the term loan for each of the remaining fiscal years are as follows: remainder of fiscal 2018 - $3,375, fiscal 2019 - $5,250, fiscal 2020 - $6,000, and fiscal 2021 - $39,000. In light of the term loan’s interest being determined on a variable rate basis, the fair value of the term loan at December 31, 2017 approximates the current carrying value reflected in the accompanying Condensed Consolidated Balance Sheet. In order to limit exposure to volatility in the LIBOR interest rate, the Company and the commercial bank also entered into an interest rate swap that effectively converts the variable interest rate on the term loan to a fixed rate of 2.76%. With an initial notional balance of $60,000, the interest rate swap was established with critical terms identical to those of the term loan, including (i) notional reduction amounts and dates; (ii) LIBOR settlement rates; (iii) rate reset dates; and (iv) term/maturity. Due to this, the interest rate swap has been designated as an effective cash flow hedge, with changes in fair value reflected as a separate component of other comprehensive income in the accompanying Condensed Consolidated Statements of Comprehensive Income. At December 31, 2017 and September 30, 2017, the fair value of the interest rate swap was $1,156 and $815, respectively, and is reflected as a non-current In addition, the Company maintains a $30,000 revolving credit facility with a commercial bank, which expires March 31, 2021. There were no borrowings outstanding on this credit facility at December 31, 2017 or September 30, 2017. The term loan and the revolving credit facility are collateralized by the business assets of the Company’s U.S. subsidiaries and require compliance with financial covenants that limit the amount of debt obligations and require a minimum level of coverage of fixed charges, as defined in the borrowing agreement. As of December 31, 2017, the Company is in compliance with all covenants. The Company is also required to maintain a compensating cash balance with the bank in the amount of $1,000, and is in compliance with this requirement.

Reportable Segment and Major Cu

Reportable Segment and Major Customers Information	3 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Reportable Segment and Major Customers Information	8. Reportable Segment and Major Customers Information Meridian was formed in 1976 and functions as a fully-integrated life science company with principal businesses in (i) the development, manufacture, sale and distribution of diagnostic test kits, primarily for certain gastrointestinal, viral, respiratory, and parasitic infectious diseases, and elevated blood lead levels; and (ii) the manufacture and distribution of bulk antigens, antibodies, PCR/qPCR reagents, nucleotides, competent cells, and bioresearch reagents used by researchers and other diagnostic manufacturers. Our reportable segments are Diagnostics and Life Science. The Diagnostics segment consists of manufacturing operations for infectious disease products in Cincinnati, Ohio; Magellan’s manufacturing operations for products detecting elevated lead levels in blood in Billerica, Massachusetts (near Boston); and the sale and distribution of diagnostics products domestically and abroad. This segment’s products are used by hospitals, reference labs and physician offices to detect infectious diseases and elevated lead levels. The Life Science segment consists of manufacturing operations in Memphis, Tennessee; Boca Raton, Florida; London, England; Luckenwalde, Germany; and Sydney, Australia; and the sale and distribution of bulk antigens, antibodies, PCR/qPCR reagents, nucleotides, competent cells, and bioresearch reagents domestically and abroad, including sales, business development and distribution facilities in Singapore and Beijing, China to further pursue growing revenue opportunities in Asia. This segment’s products are used by manufacturers and researchers in a variety of applications (e.g., in-vitro Amounts due from two Diagnostics distributor customers accounted for 25% and 11% of consolidated accounts receivable at December 31, 2017 and September 30, 2017, respectively. Revenues from these two distributor customers accounted for 38% and 23% of the Diagnostics segment third-party revenues during the three months ended December 31, 2017 and 2016, respectively, and represented 27% and 17% of consolidated revenues for the fiscal 2018 and 2017 first quarters, respectively. Within our Life Science segment, two diagnostic manufacturing customers accounted for 15% and 19% of the segment’s third-party revenues during the three months ended December 31, 2017 and 2016, respectively. Segment information for the interim periods is as follows: Diagnostics Life Eliminations(1) Total Three Months Ended December 31, 2017 Net revenues - Third-party $ 37,490 $ 14,793 $ — $ 52,283 Inter-segment 121 192 (313 ) — Operating income 5,291 2,784 (14 ) 8,061 Goodwill (December 31, 2017) 35,213 19,784 — 54,997 Other intangible assets, net (December 31, 2017) 24,202 1,575 — 25,777 Total assets (December 31, 2017) 179,943 72,480 (472 ) 251,951 Three Months Ended December 31, 2016 Net revenues - Third-party $ 33,808 $ 13,001 $ — $ 46,809 Inter-segment 79 125 (204 ) — Operating income 6,643 3,267 175 10,085 Goodwill (September 30, 2017) 35,213 19,713 — 54,926 Other intangible assets, net (September 30, 2017) 24,973 1,731 — 26,704 Total assets (September 30, 2017) 180,226 69,938 (387 ) 249,777 (1) Eliminations consist of inter-segment transactions. Transactions between segments are accounted for at established intercompany prices for internal and management purposes, with all intercompany amounts eliminated in consolidation.

Legal Matters

Legal Matters	3 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Legal Matters	9. Legal Matters On May 17, 2017, Meridian filed a complaint in the United States District Court for the Southern District of Ohio, Western Division (Cincinnati) naming DiaSorin Inc. (“DiaSorin”) as a defendant. Meridian’s complaint alleges DiaSorin has breached the 2010 Co-Development co-development On November 15, 2017, Barbara Forman filed a class action complaint in the United States District Court for the Southern District of Ohio naming Meridian, its Chief Executive Officer and Chief Financial Officer (in their capacities as such) as defendants. The complaint alleges that Meridian made false and misleading representations concerning certain of Magellan’s lead test systems at or around the time of Meridian’s acquisition of Magellan and subsequent thereto. The lawsuit underlying plaintiff’s class action complaint seeks compensatory damages, injunctive relief and attorneys’ fees to all members of the proposed class. Because the litigation and related discovery are in preliminary stages, we do not have sufficient information to determine or predict the ultimate outcome or estimate the range of possible losses, if any. Accordingly, no provision for litigation losses has been included within the accompanying Condensed Consolidated Statement of Operations for the fiscal quarter ended December 31, 2017. On December 6, 2017, Michael Edelson filed a class action complaint in the United States District Court for the Southern District of Ohio naming Meridian, its Chief Executive Officer, Chief Financial Officer and certain members of Meridian’s Board of Directors and Audit Committee (in their capacities as such) as defendants. The complaint alleges that Meridian made false and misleading representations concerning certain of Magellan’s lead test systems at or around the time of Meridian’s acquisition of Magellan and subsequent thereto, and the complaint alleges that certain members of the Board of Directors and Audit Committee breached their fiduciary duties in their oversight of the Company’s public disclosures and corporate governance matters. The lawsuit underlying plaintiff’s class action complaint seeks compensatory damages, injunctive relief, equitable relief and attorneys’ fees to all members of the proposed class. Because the litigation and related discovery are in preliminary stages, we do not have sufficient information to determine or predict the ultimate outcome or estimate the range of possible losses, if any. Accordingly, no provision for litigation losses has been included within the accompanying Condensed Consolidated Statement of Operations for the fiscal quarter ended December 31, 2017.

Significant Accounting Polici17

Significant Accounting Policies (Policies)	3 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements – In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers 2014-09. 2014-09 In February 2016, the FASB issued ASU 2016-02, Leases In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting paid-in
Reclassifications	Reclassifications – Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation. Such reclassifications had no impact on net earnings or shareholders’ equity.

Cash and Equivalents (Tables)

Cash and Equivalents (Tables)	3 Months Ended
	Dec. 31, 2017
Cash and Cash Equivalents [Abstract]
Components of Cash and Cash Equivalents	Cash and equivalents include the following components: December 31, 2017 September 30, 2017 Cash and Other Cash and Other Institutional money market funds $ 20,155 $ — $ 20,104 $ — Cash on hand - Restricted — 1,000 — 1,000 Unrestricted 34,556 — 36,968 — Total $ 54,711 $ 1,000 $ 57,072 $ 1,000

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Dec. 31, 2017
Inventory Disclosure [Abstract]
Components of Inventories	Inventories are comprised of the following: December 31, September 30, Raw materials $ 7,989 $ 6,575 Work-in-process 12,110 11,559 Finished goods - instruments 1,271 1,460 Finished goods - kits and reagents 22,274 21,899 Total $ 43,644 $ 41,493

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Acquired Intangible Assets Subject to Amortization	A summary of our acquired intangible assets subject to amortization, as of December 31, 2017 and September 30, 2017, is as follows: December 31, 2017 September 30, 2017 Gross Accumulated Gross Accumulated Manufacturing technologies, core products and cell lines $ 22,341 $ 13,117 $ 22,332 $ 12,807 Trade names, licenses and patents 8,699 4,632 8,689 4,398 Customer lists, customer relationships and supply agreements 24,586 12,190 24,562 11,854 Non-compete 720 630 720 540 $ 56,346 $ 30,569 $ 56,303 $ 29,599

Reportable Segment and Major 21

Reportable Segment and Major Customers Information (Tables)	3 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Segment Information	Segment information for the interim periods is as follows: Diagnostics Life Eliminations(1) Total Three Months Ended December 31, 2017 Net revenues - Third-party $ 37,490 $ 14,793 $ — $ 52,283 Inter-segment 121 192 (313 ) — Operating income 5,291 2,784 (14 ) 8,061 Goodwill (December 31, 2017) 35,213 19,784 — 54,997 Other intangible assets, net (December 31, 2017) 24,202 1,575 — 25,777 Total assets (December 31, 2017) 179,943 72,480 (472 ) 251,951 Three Months Ended December 31, 2016 Net revenues - Third-party $ 33,808 $ 13,001 $ — $ 46,809 Inter-segment 79 125 (204 ) — Operating income 6,643 3,267 175 10,085 Goodwill (September 30, 2017) 35,213 19,713 — 54,926 Other intangible assets, net (September 30, 2017) 24,973 1,731 — 26,704 Total assets (September 30, 2017) 180,226 69,938 (387 ) 249,777 (1) Eliminations consist of inter-segment transactions.

Significant Accounting Polici22

Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Schedule Of Accounting Policies [Line Items]
INCOME TAX PROVISION	$ 1,356	$ 3,380
ASU 2016-09 [Member]
Schedule Of Accounting Policies [Line Items]
INCOME TAX PROVISION	$ 160

Cash and Equivalents - Componen

Cash and Equivalents - Components of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 54,711	$ 57,072	$ 49,276	$ 47,226
Institutional Money Market Funds [Member]
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	20,155	20,104
Cash [Member]
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	34,556	36,968
Other Assets [Member]
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	1,000	1,000
Other Assets [Member] | Other Restricted Cash [Member]
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 1,000	$ 1,000

Inventories - Components of Inv

Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Inventory [Line Items]
Raw materials	$ 7,989	$ 6,575
Work-in-process	12,110	11,559
Total	43,644	41,493
Instruments [Member]
Inventory [Line Items]
Finished goods	1,271	1,460
Kits and Reagents [Member]
Inventory [Line Items]
Finished goods	$ 22,274	$ 21,899

Intangible Assets - Summary of

Intangible Assets - Summary of Acquired Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 56,346	$ 56,303
Accumulated Amortization	30,569	29,599
Manufacturing Technologies, Core Products and Cell Lines [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	22,341	22,332
Accumulated Amortization	13,117	12,807
Trade Names, Licenses and Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	8,699	8,689
Accumulated Amortization	4,632	4,398
Customer Lists, Customer Relationships, and Supply Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	24,586	24,562
Accumulated Amortization	12,190	11,854
Non-Compete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	720	720
Accumulated Amortization	$ 630	$ 540

Intangible Assets - Additional

Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 938		$ 968
Estimated amortization expense for intangible assets remainder of fiscal year 2018	2,628
2,019	3,343
2,020	3,178
2,021	2,561
2,022	2,182
2,023	2,170
Quality System remediation costs	$ 500
Magellan [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill impairment charge		$ 6,628
Revenues [Member] | Product Concentration Risk [Member] | LeadCare Plus and LeadCare Ultra Systems [Member]
Finite-Lived Intangible Assets [Line Items]
Concentration risk percentage	10.00%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Taxes Disclosure [Line Items]
Income tax expense (benefit)	$ 1,356	$ 3,380
Accounting for the Tax Cuts and Jobs Act [Member]
Income Taxes Disclosure [Line Items]
Income tax expense (benefit)	$ (1,695)
Tax rate used for re-measurement of temporary differences expected to be realized during fiscal 2018	24.50%
Tax rate used for re-measurement of remaining temporary differences	21.00%
Repatriation Transition Tax [Member]
Income Taxes Disclosure [Line Items]
Income tax expense (benefit)	$ 854

Bank Credit Arrangements - Addi

Bank Credit Arrangements - Additional Information (Detail) - USD ($)	3 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Mar. 22, 2016
Debt Instrument [Line Items]
Notional balance	$ 60,000,000
Interest rate swap description	(i) notional reduction amounts and dates; (ii) LIBOR settlement rates; (iii) rate reset dates; and (iv) term/maturity.
Interest rate swap asset	$ 1,156,000	$ 815,000
Bank credit arrangement, fixed interest rate percentage	2.76%
Credit facility with a commercial bank	$ 30,000,000
Expiration date of credit facility	Mar. 31, 2021
Borrowings outstanding under credit facility	$ 0	$ 0
Cash compensating balance	1,000,000
Magellan [Member]
Debt Instrument [Line Items]
2,018	3,375,000
2,019	5,250,000
2,020	6,000,000
2,021	$ 39,000,000
Five - Year Term Loan [Member] | Magellan [Member]
Debt Instrument [Line Items]
Term loan			$ 60,000,000

Reportable Segment and Major 29

Reportable Segment and Major Customers Information - Additional Information (Detail) - Customer Concentration Risk [Member] - Customer	3 Months Ended		12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Sep. 30, 2017
Two Diagnostic Distributor Customers [Member] | Consolidated Accounts Receivable [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of major customers	2		2
Concentration risk percentage	25.00%		11.00%
Two Diagnostic Distributor Customers [Member] | Segment, Third-Party Sales Revenue [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of major customers	2	2
Two Diagnostic Distributor Customers [Member] | Segment, Third-Party Sales Revenue [Member] | Diagnostics [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage	38.00%	23.00%
Two Diagnostic Distributor Customers [Member] | Revenues [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage	27.00%	17.00%
Two Diagnostic Manufacturing Customers [Member] | Segment, Third-Party Sales Revenue [Member] | Life Science [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of major customers	2	2
Concentration risk percentage	15.00%	19.00%

Reportable Segment and Major 30

Reportable Segment and Major Customers Information - Segment Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Sep. 30, 2017
Segment Reporting Information [Line Items]
NET REVENUES	$ 52,283	$ 46,809
Operating income	8,061	10,085
Goodwill	54,997		$ 54,926
Other intangible assets, net	25,777		26,704
Total assets	251,951		249,777
Operating Segments [Member] | Diagnostics [Member]
Segment Reporting Information [Line Items]
NET REVENUES	37,490	33,808
Operating income	5,291	6,643
Goodwill	35,213		35,213
Other intangible assets, net	24,202		24,973
Total assets	179,943		180,226
Net revenues	121	79
Operating Segments [Member] | Life Science [Member]
Segment Reporting Information [Line Items]
NET REVENUES	14,793	13,001
Operating income	2,784	3,267
Goodwill	19,784		19,713
Other intangible assets, net	1,575		1,731
Total assets	72,480		69,938
Net revenues	192	125
Eliminations [Member]
Segment Reporting Information [Line Items]
Operating income	(14)	175
Total assets	(472)		$ (387)
Net revenues	$ (313)	$ (204)

Legal Matters - Additional Info

Legal Matters - Additional Information (Detail)	3 Months Ended
	Dec. 31, 2017USD ($)
Diagnostics [Member]
Loss Contingencies [Line Items]
Litigation filing date	May 17, 2017
Legal expense	$ 730
Class Action Complaint One [Member]
Loss Contingencies [Line Items]
Litigation filing date	Nov. 15, 2017
Provision for litigation losses	$ 0
Class Action Complaint Two [Member]
Loss Contingencies [Line Items]
Litigation filing date	Dec. 6, 2017
Provision for litigation losses	$ 0