Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Jun. 30, 2014 | Jul. 31, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'SRDX | ' |
Entity Registrant Name | 'SURMODICS INC | ' |
Entity Central Index Key | '0000924717 | ' |
Current Fiscal Year End Date | '--09-30 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 13,596,744 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $39,729 | $15,495 |
Available-for-sale securities | 882 | 10,212 |
Accounts receivable, net of allowance for doubtful accounts of $53 and $26 as of June 30, 2014 and September 30, 2013, respectively | 5,176 | 5,332 |
Inventories | 2,900 | 3,328 |
Deferred tax assets | 321 | 506 |
Prepaids and other | 1,718 | 860 |
Current assets of discontinued operations | 85 | 46 |
Total Current Assets | 50,811 | 35,779 |
Property and equipment, net | 12,710 | 12,845 |
Available-for-sale securities | 16,497 | 32,397 |
Deferred tax assets | 6,392 | 6,038 |
Intangible assets, net | 3,131 | 3,688 |
Goodwill | 8,010 | 8,010 |
Other assets, net | 3,166 | 3,166 |
Total Assets | 100,717 | 101,923 |
Current Liabilities: | ' | ' |
Accounts payable | 1,400 | 954 |
Accrued liabilities: | ' | ' |
Compensation | 1,756 | 2,271 |
Accrued other | 844 | 1,149 |
Share repurchase accrual | ' | 1,004 |
Deferred revenue | 41 | 43 |
Restructuring and other current liabilities | 2 | 416 |
Current liabilities of discontinued operations | 75 | 139 |
Total Current Liabilities | 4,118 | 5,976 |
Deferred revenue, less current portion | 149 | 160 |
Other long-term liabilities | 1,779 | 1,970 |
Total Liabilities | 6,046 | 8,106 |
Commitments and Contingencies (Note 17) | ' | ' |
Stockholders' Equity: | ' | ' |
Series A Preferred stock- $.05 par value, 450,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock- $.05 par value, 45,000,000 shares authorized; 13,594,564 and 13,891,402 shares issued and outstanding, respectively | 680 | 695 |
Additional paid-in capital | 2,419 | 2,028 |
Accumulated other comprehensive income | 36 | 58 |
Retained earnings | 91,536 | 91,036 |
Total Stockholders' Equity | 94,671 | 93,817 |
Total Liabilities and Stockholders' Equity | $100,717 | $101,923 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance for doubtful accounts | $53 | $26 |
Series A Preferred stock, par value | $0.05 | $0.05 |
Series A Preferred stock, shares authorized | 450,000 | 450,000 |
Series A Preferred stock, shares issued | 0 | 0 |
Series A Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.05 | $0.05 |
Common stock, shares authorized | 45,000,000 | 45,000,000 |
Common stock, shares issued | 13,594,564 | 13,891,402 |
Common stock, shares outstanding | 13,594,564 | 13,891,402 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenue: | ' | ' | ' | ' |
Royalties and license fees | $7,385 | $7,827 | $22,179 | $22,294 |
Product sales | 6,067 | 5,577 | 16,632 | 16,688 |
Research and development | 1,164 | 885 | 3,292 | 2,853 |
Total revenue | 14,616 | 14,289 | 42,103 | 41,835 |
Operating costs and expenses: | ' | ' | ' | ' |
Product costs | 2,037 | 1,990 | 5,737 | 5,894 |
Research and development | 3,655 | 4,009 | 11,488 | 11,145 |
Selling, general and administrative | 3,591 | 4,052 | 11,736 | 11,552 |
Total operating costs and expenses | 9,283 | 10,051 | 28,961 | 28,591 |
Operating income from continuing operations | 5,333 | 4,238 | 13,142 | 13,244 |
Other income (loss): | ' | ' | ' | ' |
Investment income, net | 42 | 60 | 194 | 187 |
Impairment loss on strategic investment | ' | ' | ' | -129 |
Gain on sales of strategic investments | 28 | ' | 709 | 119 |
Other income, net | ' | 2 | 125 | 1,341 |
Other income, net | 70 | 62 | 1,028 | 1,518 |
Income from continuing operations before income taxes | 5,403 | 4,300 | 14,170 | 14,762 |
Income tax provision | -1,729 | -1,122 | -4,407 | -3,916 |
Income from continuing operations | 3,674 | 3,178 | 9,763 | 10,846 |
(Loss) income from discontinued operations, net of income taxes | -76 | -47 | -76 | 635 |
Net income | $3,598 | $3,131 | $9,687 | $11,481 |
Basic income (loss) per share: | ' | ' | ' | ' |
Continuing operations | $0.27 | $0.22 | $0.72 | $0.74 |
Discontinued operations | ($0.01) | $0 | ($0.01) | $0.04 |
Net income | $0.26 | $0.22 | $0.71 | $0.79 |
Diluted income (loss) per share: | ' | ' | ' | ' |
Continuing operations | $0.27 | $0.22 | $0.70 | $0.73 |
Discontinued operations | ($0.01) | $0 | ($0.01) | $0.04 |
Net income | $0.26 | $0.21 | $0.70 | $0.77 |
Weighted average number of shares outstanding: | ' | ' | ' | ' |
Basic | 13,585 | 14,413 | 13,639 | 14,563 |
Diluted | 13,813 | 14,739 | 13,891 | 14,823 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $3,598 | $3,131 | $9,687 | $11,481 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Unrealized holding gains (losses) on available-for-sale securities arising during the period | 46 | -158 | 62 | 158 |
Reclassification adjustment for realized gains included in net income | ' | -1 | -84 | -230 |
Other comprehensive income (loss) | 46 | -159 | -22 | -72 |
Comprehensive income | $3,644 | $2,972 | $9,665 | $11,409 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating Activities: | ' | ' |
Net income | $9,687 | $11,481 |
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations: | ' | ' |
Loss (income) from discontinued operations | 76 | -635 |
Depreciation and amortization | 2,054 | 2,174 |
Stock-based compensation | 3,043 | 1,983 |
Deferred taxes | -98 | 34 |
Gain on sales of available-for-sale securities and strategic investments | -835 | -1,460 |
Impairment loss on investments | ' | 129 |
Excess tax (benefit) deficiency from stock-based compensation plans | -452 | 252 |
Change in operating assets and liabilities, excluding the impact from discontinued operations: | ' | ' |
Accounts receivable | 156 | 333 |
Inventories | 428 | 314 |
Prepaids and other | -114 | -305 |
Accounts payable and accrued liabilities | -919 | -876 |
Income taxes | -560 | -1,520 |
Net cash provided by operating activities from continuing operations | 12,466 | 11,904 |
Investing Activities: | ' | ' |
Purchases of property and equipment | -1,165 | -1,448 |
Purchases of available-for-sale securities | -132,648 | -34,599 |
Sales and maturities of available-for-sale securities | 157,970 | 34,487 |
Cash received from sales of strategic investments | 708 | 2,286 |
Cash transferred to discontinued operations | -239 | -118 |
Net cash provided by investing activities from continuing operations | 24,626 | 608 |
Financing Activities: | ' | ' |
Excess tax benefit (deficiency) from stock-based compensation plans | 452 | -252 |
Issuance of common stock | 348 | 273 |
Repurchase of common stock | -12,544 | -10,323 |
Purchase of common stock to pay employee taxes | -1,114 | -39 |
Net cash used in financing activities from continuing operations | -12,858 | -10,341 |
Net cash provided by continuing operations | 24,234 | 2,171 |
Discontinued Operations: | ' | ' |
Net cash used in operating activities | -239 | -118 |
Net cash provided by financing activities | 239 | 118 |
Net cash provided by discontinued operations | 0 | 0 |
Net change in cash and cash equivalents | 24,234 | 2,171 |
Cash and Cash Equivalents: | ' | ' |
Beginning of period | 15,495 | 15,540 |
End of period | 39,729 | 17,711 |
Supplemental Information: | ' | ' |
Cash paid for income taxes | 4,860 | 5,257 |
Noncash transactions - acquisition of property and equipment on account | 224 | 19 |
Noncash transactions - issuance of performance shares, restricted and deferred stock units | $3,007 | ' |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
1. Basis of Presentation | |
The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.”) (“GAAP”) and, in the opinion of management, reflect all adjustments, consisting solely of normal recurring adjustments, needed to fairly present the financial results of SurModics, Inc. and subsidiaries (“SurModics” or the “Company”) for the periods presented. These financial statements include some amounts that are based on management’s best estimates and judgments. These estimates may be adjusted as more information becomes available, and any adjustment could be significant. The impact of any change in estimates is included in the determination of earnings in the period in which the change in estimate is identified. The results of operations for the three and nine months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the entire 2014 fiscal year. | |
In accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”), the Company has omitted footnote disclosures that would substantially duplicate the disclosures contained in the audited financial statements of the Company. These unaudited condensed consolidated financial statements should be read together with the audited consolidated financial statements for the fiscal year ended September 30, 2013, and footnotes thereto included in the Company’s Form 10-K as filed with the SEC on December 11, 2013. |
Key_Accounting_Policies
Key Accounting Policies | 9 Months Ended | |||
Jun. 30, 2014 | ||||
Accounting Policies [Abstract] | ' | |||
Key Accounting Policies | ' | |||
2. Key Accounting Policies | ||||
Revenue recognition | ||||
The Company recognizes revenue when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) shipment has occurred or delivery has occurred if the terms specify destination; (3) the sales price is fixed or determinable; and (4) collectability is reasonably assured. When there are additional performance requirements, revenue is recognized when all such requirements have been satisfied. Under revenue arrangements with multiple deliverables, the Company recognizes each separable deliverable as it is earned. | ||||
The Company derives its revenue from three primary sources: (1) royalties and license fees from licensing its proprietary drug delivery and surface modification technologies and in vitro diagnostic formats to customers; (2) the sale of reagent chemicals to licensees and the sale of stabilization products, antigens, substrates and surface coatings to the diagnostic and biomedical research markets; and (3) research and commercial development fees generated on customer projects. | ||||
Royalties and license fees. The Company licenses technology to third parties and collects royalties. Royalty revenue is generated when a customer sells products incorporating the Company’s licensed technologies. Royalty revenue is recognized as licensees report it to the Company, and payment is typically submitted concurrently with the report. For stand-alone license agreements, up-front license fees are recognized over the term of the related licensing agreement. Minimum royalty fees are recognized in the period earned. | ||||
Revenue related to a performance milestone is recognized upon the achievement of the milestone, as defined in the respective agreements and provided the following conditions have been met: | ||||
• | The milestone payment is non-refundable; | |||
• | The milestone involved a significant degree of risk, and was not reasonably assured at the inception of the arrangement; | |||
• | Accomplishment of the milestone involved substantial effort; | |||
• | The amount of the milestone payment is commensurate with the related effort and risk; and | |||
• | A reasonable amount of time passed between the initial license payment and the first and subsequent milestone payments. | |||
If these conditions have not been met, the milestone payment is deferred and recognized over the term of the agreement. | ||||
Product sales. Product sales to third parties consist of direct and distributor sales and are recognized at the time of shipment. The Company’s sales terms provide no right of return outside of the standard warranty policy. Payment terms are generally set at 30-45 days. | ||||
Research and development. The Company performs third-party research and development activities, which are typically provided on a time and materials basis. Generally, revenue for research and development is recorded as performance progresses under the applicable contract. | ||||
Arrangements with multiple deliverables. Revenue arrangements with multiple deliverables require the Company to: | ||||
(i) disclose whether multiple deliverables exist, how the deliverables in an arrangement should be separated, and how the consideration should be allocated; | ||||
(ii) allocate revenue in an arrangement using estimated selling prices (“ESP”) of deliverables if a vendor does not have vendor-specific objective evidence of selling price (“VSOE”) or third-party evidence of selling price (“TPE”); and | ||||
(iii) allocate revenue using the relative selling price method. | ||||
The Company accounts for revenue using a multiple attribution model in which consideration allocated to research and development activities is recognized as performed, and milestone payments are recognized when the milestone events are achieved, when such activities and milestones are deemed substantive. Accordingly, in situations where a unit of accounting includes both a license and research and development activities, and when a license does not have stand-alone value, the Company applies a multiple attribution model in which consideration allocated to the license is recognized ratably, consideration allocated to research and development activities is recognized as performed and milestone payments are recognized when the milestone events are achieved, when such activities and milestones are deemed substantive. | ||||
The Company enters into license and development arrangements that may consist of multiple deliverables which could include a license(s) to SurModics’ technology, research and development activities, manufacturing services, and product sales based on the needs of its customers. For example, a customer may enter into an arrangement to obtain a license to SurModics’ intellectual property which may also include research and development activities, and supply of products manufactured by SurModics. For these services provided, SurModics could receive upfront license fees upon signing of an agreement and granting the license, fees for research and development activities as such activities are performed, milestone payments contingent upon advancement of the product through development and clinical stages to successful commercialization, fees for manufacturing services and supply of product, and royalty payments based on customer sales of product incorporating SurModics’ technology. The Company’s license and development arrangements generally do not have refund provisions if the customer cancels or terminates the agreement. Typically all payments made are non-refundable. | ||||
The Company is required to evaluate each deliverable in a multiple element arrangement for separability. The Company is then required to allocate revenue to each separate deliverable using a hierarchy of VSOE, TPE, or ESP. In many instances, the Company is not able to establish VSOE for all deliverables in an arrangement with multiple elements. This may be a result of the Company infrequently selling each element separately or having a limited history with multiple element arrangements. When VSOE cannot be established, the Company attempts to establish a selling price of each element based on TPE. TPE is determined based on competitor prices for similar deliverables when sold separately. | ||||
When the Company is unable to establish a selling price using VSOE or TPE, the Company uses ESP in its allocation of arrangement consideration. The objective of ESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. ESP is generally used for highly customized offerings. | ||||
The Company determines ESP for undelivered elements by considering multiple factors including, but not limited to, market conditions, competitive landscape and past pricing arrangements with similar features. The determination of ESP is made through consultation with the Company’s management, taking into consideration the marketing strategies for each business unit. | ||||
New Accounting Pronouncements | ||||
Accounting Standards to be Adopted | ||||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued amended guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar to a tax loss, or tax credit carryforward exits. The guidance requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, be presented as a reduction of a deferred tax asset when a net operating loss carryforward, or similar tax loss, or tax credit carryforward exits, with certain exceptions. This accounting guidance is effective prospectively for the Company beginning in the first quarter of fiscal 2015. The adoption is not expected to have a material impact on the Company’s results of operations, cash flows and financial position. | ||||
In May 2014, the FASB issued new revenue recognition guidance for recognizing revenue from contracts with customers that provides a five-step analysis of transactions to determine when and how revenue is recognized. The guidance states that a Company should recognize revenue which depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to receive in exchange for those goods or services. The new standard will also result in enhanced disclosures about revenue related to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The standard also requires quantitative and qualitative disclosures about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. Additionally it has provided guidance for transactions that were not previously addressed comprehensively, and improved guidance for multiple-element arrangements. This pronouncement is effective for the Company beginning in fiscal 2018 (October 1, 2017), early adoption is not permitted, and can be adopted by the Company either retrospectively (October 1, 2015) or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the impact of adopting this new accounting guidance will have on the Company’s results of operations, cash flows and financial position. | ||||
No other new accounting pronouncement issued or effective has had, or is expected to have, a material impact on the Company’s consolidated financial statements. |
Discontinued_Operations
Discontinued Operations | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Discontinued Operations And Disposal Groups [Abstract] | ' | ||||||||||||||||
Discontinued Operations | ' | ||||||||||||||||
3. Discontinued Operations | |||||||||||||||||
Beginning with the first quarter of fiscal 2012, the results of operations, cash flows, assets and liabilities of SurModics SMP, LLC (“SurModics Pharmaceuticals”), which were previously reported in the Pharmaceuticals segment as a separate operating segment, are classified as discontinued operations. | |||||||||||||||||
On November 1, 2011, the Company entered into a definitive agreement (the “Purchase Agreement”) to sell substantially all of the assets of its wholly-owned subsidiary, SurModics Pharmaceuticals, to Evonik Degussa Corporation (“Evonik”). Under the terms of the Purchase Agreement, the entire portfolio of products and services of SurModics Pharmaceuticals, including the Company’s Current Good Manufacturing Practices (“cGMP”) development and manufacturing facility located in Birmingham, Alabama, were sold. The Company retained all accounts receivable and the majority of liabilities associated with SurModics Pharmaceuticals incurred prior to closing. The sale (the “Pharma Sale”) closed on November 17, 2011. The total consideration received from the Pharma Sale was $30.0 million in cash. As part of the Pharma Sale, SurModics agreed not to compete in the restricted business (as defined in the Purchase Agreement) for a period of five years and to indemnify Evonik against specified losses in connection with SurModics Pharmaceuticals, including certain contingent consideration obligations related to the acquisition by SurModics Pharmaceuticals of the portfolio of intellectual property and drug delivery projects from PR Pharmaceuticals, Inc. (“PR Pharma”) and other specified excluded liabilities, including the litigation matter with Southern Research Institute (“SRI”) described below. SurModics retained responsibility for repayment obligations related to an agreement with various governmental authorities associated with creation of jobs in Alabama. These repayment obligations were settled or terminated in the second and third quarters of fiscal 2013 with payments totaling $325,000 repaid to the governmental authorities and a gain of $1.3 million recognized in the nine months ended June 30, 2013. | |||||||||||||||||
The following is a summary of the operating results of SurModics Pharmaceuticals discontinued operations for the three and nine months ended June 30, 2014 and 2013: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
(Loss) income from discontinued operations | $ | (117 | ) | $ | 136 | $ | (117 | ) | $ | 1,151 | |||||||
Income tax benefit (provision) | 41 | (183 | ) | 41 | (516 | ) | |||||||||||
(Loss) income from discontinued operations, net of income taxes | $ | (76 | ) | $ | (47 | ) | $ | (76 | ) | $ | 635 | ||||||
The major classes of assets and liabilities of discontinued operations as of June 30, 2014 and September 30, 2013 were as follows: | |||||||||||||||||
June 30, | September 30, | ||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||
Other current assets | $ | 85 | $ | 46 | |||||||||||||
Current assets of discontinued operations | 85 | 46 | |||||||||||||||
Total assets of discontinued operations | $ | 85 | $ | 46 | |||||||||||||
Other current liabilities payable | $ | 75 | $ | 139 | |||||||||||||
Current liabilities of discontinued operations | 75 | 139 | |||||||||||||||
Total liabilities of discontinued operations | $ | 75 | $ | 139 | |||||||||||||
In June 2014, the Company resolved the previously disclosed litigation involving SRI, two of SRI’s former employees and SurModics Pharmaceuticals. In connection with the resolution of the litigation, the Company recorded an additional expense, within discontinued operations, of $0.1 million in the three and nine months ended June 30, 2014. The assets and liabilities of discontinued operations as of June 30, 2014 represent amounts associated with the resolution of this litigation and the related deferred taxes. See Note 17 for additional discussion of the SRI litigation matter. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
4. Fair Value Measurements | |||||||||||||||||
The accounting guidance on fair value measurements defines fair value, establishes a framework for measuring fair value under GAAP, and expands disclosures about fair value measurements. The guidance is applicable for all financial assets and financial liabilities and for all nonfinancial assets and nonfinancial liabilities recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). Fair value is defined as the exchange price that would be received from selling an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and also considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of nonperformance. | |||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||
Accounting guidance on fair value measurements requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: | |||||||||||||||||
Level 1 — Quoted (unadjusted) prices in active markets for identical assets or liabilities. | |||||||||||||||||
Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. | |||||||||||||||||
The Company’s Level 2 assets consist of money market funds, U.S. Treasury securities, corporate bonds, municipal bonds, U.S. government agency securities, government agency and municipal securities and certain asset-backed and mortgage-backed securities. Fair market values for these assets are based on quoted vendor prices and broker pricing where all significant inputs are observable. The Company performs limited tests of the quoted vendor prices based on available U.S. Treasury security pricing on government websites as a means of validating the third party pricing. To ensure the accuracy of quoted vendor prices and broker pricing, the Company performs regular reviews of investment returns to industry benchmarks and sample tests of individual securities to validate quoted vendor prices with other available market data. | |||||||||||||||||
Level 3 — Unobservable inputs to the valuation methodology that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation. | |||||||||||||||||
There were no Level 3 assets at June 30, 2014, March 31, 2014, September 30, 2013, June 30, 2013 or March 31, 2013 and there was no Level 3 activity during the first nine months of fiscal 2014 or fiscal 2013. | |||||||||||||||||
In valuing assets and liabilities, the Company is required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The Company did not significantly change its valuation techniques from prior periods. | |||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||||||
In instances where the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2014: | |||||||||||||||||
(Dollars in thousands) | Quoted Prices in | Significant | Significant | Total Fair | |||||||||||||
Active Markets | Other | Unobservable | Value as of | ||||||||||||||
for Identical | Observable | Inputs | June 30, | ||||||||||||||
Instruments | Inputs | (Level 3) | 2014 | ||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents | $ | — | $ | 36,861 | $ | — | $ | 36,861 | |||||||||
Available-for-sale debt securities: | |||||||||||||||||
U.S. government and government agency obligations | — | 2,864 | — | 2,864 | |||||||||||||
Mortgage-backed securities | — | 5,106 | — | 5,106 | |||||||||||||
Municipal bonds | — | 1,564 | — | 1,564 | |||||||||||||
Asset-backed securities | — | 6,000 | — | 6,000 | |||||||||||||
Corporate bonds | — | 1,845 | — | 1,845 | |||||||||||||
Total assets measured at fair value | $ | — | $ | 54,240 | $ | — | $ | 54,240 | |||||||||
The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2013: | |||||||||||||||||
(Dollars in thousands) | Quoted Prices in | Significant | Significant | Total Fair | |||||||||||||
Active Markets | Other | Unobservable | Value as of | ||||||||||||||
for Identical | Observable | Inputs | September 30, | ||||||||||||||
Instruments | Inputs | (Level 3) | 2013 | ||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents | $ | — | $ | 4,402 | $ | — | $ | 4,402 | |||||||||
Available-for-sale debt securities: | |||||||||||||||||
U.S. government and government agency obligations | — | 22,890 | — | 22,890 | |||||||||||||
Mortgage-backed securities | — | 8,216 | — | 8,216 | |||||||||||||
Municipal bonds | — | 3,059 | — | 3,059 | |||||||||||||
Asset-backed securities | — | 3,537 | — | 3,537 | |||||||||||||
Corporate bonds | — | 4,907 | — | 4,907 | |||||||||||||
Total assets measured at fair value | $ | — | $ | 47,011 | $ | — | $ | 47,011 | |||||||||
Valuation Techniques | |||||||||||||||||
The valuation techniques used to measure the fair value of assets are as follows: | |||||||||||||||||
Cash equivalents — These assets are classified as Level 2 and are carried at historical cost which is a reasonable estimate of fair value because of the relatively short time between origination of the instrument and its expected realization. | |||||||||||||||||
Available-for-sale debt securities — These securities are classified as Level 2 and include various types of debt securities. These securities are valued based on quoted vendor prices in active markets underlying the securities. |
Investments
Investments | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||
Investments | ' | ||||||||||||||||
5. Investments | |||||||||||||||||
Investments consist principally of U.S. government and government agency obligations, mortgage-backed securities and corporate and municipal debt securities and are classified as available-for-sale at June 30, 2014 and September 30, 2013. Available-for-sale securities are reported at fair value with unrealized gains and losses, net of tax, excluded from the condensed consolidated statements of income and reported in the condensed consolidated statements of comprehensive income as well as a separate component of stockholders’ equity in the condensed consolidated balance sheets, except for other-than-temporary impairments, which are reported as a charge to current earnings. A loss would be recognized when there is an other-than-temporary impairment in the fair value of any individual security classified as available-for-sale, with the associated net unrealized loss reclassified out of accumulated other comprehensive income with a corresponding adjustment to other income (loss). This adjustment results in a new cost basis for the investment. Interest earned on debt securities, including amortization of premiums and accretion of discounts, is included in other income (loss). Realized gains and losses from the sales of debt securities, which are included in other income (loss), are determined using the specific identification method. | |||||||||||||||||
The amortized cost, unrealized holding gains and losses, and fair value of available-for-sale securities as of June 30, 2014 and September 30, 2013 were as follows: | |||||||||||||||||
June 30, 2014 | |||||||||||||||||
(Dollars in thousands) | Amortized | Unrealized | Unrealized | Fair Value | |||||||||||||
Cost | Gains | Losses | |||||||||||||||
U.S. government and government agency obligations | $ | 2,846 | $ | 21 | $ | (3 | ) | $ | 2,864 | ||||||||
Mortgage-backed securities | 5,096 | 56 | (46 | ) | 5,106 | ||||||||||||
Municipal bonds | 1,558 | 9 | (3 | ) | 1,564 | ||||||||||||
Asset-backed securities | 5,990 | 14 | (4 | ) | 6,000 | ||||||||||||
Corporate bonds | 1,835 | 12 | (2 | ) | 1,845 | ||||||||||||
Total | $ | 17,325 | $ | 112 | $ | (58 | ) | $ | 17,379 | ||||||||
September 30, 2013 | |||||||||||||||||
(Dollars in thousands) | Amortized | Unrealized | Unrealized | Fair Value | |||||||||||||
Cost | Gains | Losses | |||||||||||||||
U.S. government and government agency obligations | $ | 22,889 | $ | 28 | $ | (27 | ) | $ | 22,890 | ||||||||
Mortgage-backed securities | 8,149 | 118 | (51 | ) | 8,216 | ||||||||||||
Municipal bonds | 3,049 | 15 | (5 | ) | 3,059 | ||||||||||||
Asset-backed securities | 3,539 | 6 | (8 | ) | 3,537 | ||||||||||||
Corporate bonds | 4,896 | 17 | (6 | ) | 4,907 | ||||||||||||
Total | $ | 42,522 | $ | 184 | $ | (97 | ) | $ | 42,609 | ||||||||
As of June 30, 2014 and September 30, 2013, the Company concluded that the unrealized losses related to the available-for-sale securities shown above were not other-than-temporary as the Company does not have the intent to sell, nor is it more likely than not that the Company will be required to sell, before recovery of their amortized cost. | |||||||||||||||||
The amortized cost and fair value of investments by contractual maturity at June 30, 2014 were as follows: | |||||||||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | |||||||||||||||
Debt securities due within: | |||||||||||||||||
One year | $ | 875 | $ | 882 | |||||||||||||
One to five years | 10,784 | 10,823 | |||||||||||||||
Five years or more | 5,666 | 5,674 | |||||||||||||||
Total | $ | 17,325 | $ | 17,379 | |||||||||||||
The following table summarizes sales of available-for-sale securities: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Proceeds from sales | $ | 65,455 | $ | 8,507 | $ | 157,970 | $ | 34,487 | |||||||||
Gross realized gains | $ | — | $ | 6 | $ | 126 | $ | 171 | |||||||||
Gross realized losses | $ | — | $ | (4 | ) | $ | (1 | ) | $ | (4 | ) | ||||||
Inventories
Inventories | 9 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
6. Inventories | |||||||||
Inventories are principally stated at the lower of cost or market using the specific identification method and include direct labor, materials and overhead. Inventories consisted of the following components: | |||||||||
June 30, | September 30, | ||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||
Raw materials | $ | 976 | $ | 1,378 | |||||
Finished products | 1,924 | 1,950 | |||||||
Total | $ | 2,900 | $ | 3,328 | |||||
Other_Assets
Other Assets | 9 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Investments All Other Investments [Abstract] | ' | ||||||||
Other Assets | ' | ||||||||
7. Other Assets | |||||||||
Other assets consist principally of strategic investments as follows: | |||||||||
June 30, | September 30, | ||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||
CeloNova BioSciences, Inc. | $ | 1,500 | $ | 1,500 | |||||
ThermopeutiX, Inc. | 1,185 | 1,185 | |||||||
ViaCyte, Inc. | 479 | 479 | |||||||
Other | 2 | 2 | |||||||
Other assets, net | $ | 3,166 | $ | 3,166 | |||||
In February 2011, the stent technology of Nexeon MedSystems, Inc. (“Nexeon”) was acquired by CeloNova BioSciences, Inc. (“CeloNova”). Prior to the acquisition by CeloNova, Nexeon created a wholly-owned subsidiary, Nexeon Stent, to hold the company’s stent-related assets. Nexeon distributed to its stockholders the Nexeon Stent stock which was exchanged for Series B-1 preferred shares of CeloNova. CeloNova is a privately-held Texas-based medical technology company that is marketing a variety of medical products. The Company’s investment in CeloNova, which is accounted for under the cost method, represents less than a 2% ownership interest. The Company does not exert significant influence over CeloNova’s operating or financial activities. | |||||||||
The Company has invested a total of $1.2 million in ThermopeutiX, Inc. (“ThermopeutiX”), a California-based early stage company developing novel medical devices for the treatment of vascular and neurovascular diseases. In addition to the investment, SurModics has licensed its hydrophilic and hemocompatible coating technologies to ThermopeutiX for use with its devices. The Company’s investment in ThermopeutiX, which is accounted for under the cost method, represents an ownership interest of less than 20%. The Company does not exert significant influence over ThermopeutiX’s operating or financial activities. | |||||||||
The Company has invested a total of $5.3 million in ViaCyte, Inc. (“ViaCyte”), a privately-held California-based biotechnology firm that is developing a unique treatment for diabetes using coated islet cells, the cells that produce insulin in the human body. In fiscal 2006, the Company determined that its investment in ViaCyte was impaired and that the impairment was other than temporary. Accordingly, the Company recorded an impairment loss of $4.7 million. In the second quarter of fiscal 2013, the Company recorded an additional other-than-temporary impairment loss on this investment totaling $0.1 million based on a current financing round and market valuations. The balance of the investment of $0.5 million, which is accounted for under the cost method, represents less than a 1% ownership interest. The Company does not exert significant influence over ViaCyte’s operating or financial activities. | |||||||||
The Company had invested a total of $2.5 million in Vessix Vascular, Inc. (“Vessix”) and recognized an other-than-temporary impairment loss on this investment totaling $2.4 million in fiscal 2010, based on market valuations and a pending financing round for Vessix. Vessix was purchased by Boston Scientific Corporation in November 2012. The Company recorded a gain of approximately $1.2 million in the condensed consolidated statements of income gains on sale of strategic investments line, on the sale of this investment in the first quarter of fiscal 2013. In the first nine months of fiscal 2014, the Company recorded a $0.7 million gain upon achievement by Vessix of a clinical milestone and a sales milestone for calendar 2013. Total remaining potential maximum additional proceeds of $3.4 million may be received in fiscal 2015 through fiscal 2017 depending on Vessix’s achievement of future sales milestones. No amounts have been recorded associated with these future milestones given the level of uncertainty that exists. Any potential additional income will be recognized once the milestones are achieved. | |||||||||
The total carrying value of cost method investments is reviewed quarterly for changes in circumstances or the occurrence of events that suggest the Company’s investment may not be recoverable. The fair value of cost method investments is not adjusted if there are no identified events or changes in circumstances that may have a material adverse effect on the fair value of the investment. | |||||||||
The Company recognized no revenue for the three months ended June 30, 2014 and revenue of less than $0.1 million for the three months ended June 30, 2013, respectively, from activity with companies in which it had a strategic investment. The Company recognized revenue of less than $0.1 million and approximately $0.1 million for the nine months ended June 30, 2014 and 2013, respectively, from activity with companies in which it had a strategic investment. |
Intangible_Assets
Intangible Assets | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Intangible Assets | ' | ||||||||||||||||
8. Intangible Assets | |||||||||||||||||
Intangible assets consist principally of acquired patents and technology, customer relationships, licenses and trademarks. For the three months ended June 30, 2014 and 2013, the Company recorded amortization expense of $0.2 million for each period. For the nine months ended June 30, 2014 and 2013, the Company recorded amortization expense of $0.6 million for each period. | |||||||||||||||||
Intangible assets consisted of the following: | |||||||||||||||||
June 30, 2014 | |||||||||||||||||
(Dollars in thousands) | Weighted Average | Gross Carrying | Accumulated | Net | |||||||||||||
Original Life (Years) | Amount | Amortization | |||||||||||||||
Definite-lived intangible assets: | |||||||||||||||||
Customer lists | 9 | $ | 4,857 | $ | (3,679 | ) | $ | 1,178 | |||||||||
Core technology | 8 | 530 | (458 | ) | 72 | ||||||||||||
Patents and other | 16.8 | 2,256 | (955 | ) | 1,301 | ||||||||||||
Subtotal | 7,643 | (5,092 | ) | 2,551 | |||||||||||||
Unamortized intangible assets: | |||||||||||||||||
Trademarks | 580 | — | 580 | ||||||||||||||
Total | $ | 8,223 | $ | (5,092 | ) | $ | 3,131 | ||||||||||
September 30, 2013 | |||||||||||||||||
(Dollars in thousands) | Weighted Average | Gross Carrying | Accumulated | Net | |||||||||||||
Original Life (Years) | Amount | Amortization | |||||||||||||||
Definite-lived intangible assets: | |||||||||||||||||
Customer lists | 9 | $ | 4,857 | $ | (3,274 | ) | $ | 1,583 | |||||||||
Core technology | 8 | 530 | (409 | ) | 121 | ||||||||||||
Patents and other | 16.8 | 2,256 | (852 | ) | 1,404 | ||||||||||||
Subtotal | 7,643 | (4,535 | ) | 3,108 | |||||||||||||
Unamortized intangible assets: | |||||||||||||||||
Trademarks | 580 | — | 580 | ||||||||||||||
Total | $ | 8,223 | $ | (4,535 | ) | $ | 3,688 | ||||||||||
Based on the intangible assets in service as of June 30, 2014, estimated amortization expense for the remainder of fiscal 2014 and each of the next five fiscal years is as follows: | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Remainder of 2014 | $ | 186 | |||||||||||||||
2015 | 731 | ||||||||||||||||
2016 | 594 | ||||||||||||||||
2017 | 183 | ||||||||||||||||
2018 | 137 | ||||||||||||||||
2019 | 137 | ||||||||||||||||
Future amortization amounts presented above are estimates. Actual future amortization expense may be different, as a result of future acquisitions, impairments, changes in amortization periods, or other factors. |
Goodwill
Goodwill | 9 Months Ended |
Jun. 30, 2014 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ' |
Goodwill | ' |
9. Goodwill | |
Goodwill represents the excess of the cost of an acquired entity over the fair value assigned to the assets purchased and liabilities assumed in connection with a company’s acquisition. Goodwill is not amortized but is subject, at a minimum, to annual tests for impairment in accordance with accounting guidance for goodwill. The carrying amount of goodwill is evaluated annually, and between annual evaluations if events occur or circumstances change indicating that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. | |
The $8.0 million of goodwill at June 30, 2014 and September 30, 2013 is related to the In Vitro Diagnostics reporting unit and represents the gross value from the acquisition of BioFX Laboratories, Inc. (“BioFX”) in 2007. The goodwill was not impaired based on the outcome of the fiscal 2013 annual impairment test, and there have been no events or circumstances that have occurred in the first nine months of fiscal 2014 associated with the In Vitro Diagnostics reporting unit to indicate that the goodwill may be impaired. |
Stockbased_Compensation
Stock-based Compensation | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Stock-based Compensation | ' | ||||||||||||||||
10. Stock-based Compensation | |||||||||||||||||
The Company has stock-based compensation plans under which it grants stock options, restricted stock awards, performance share awards and restricted stock units. Accounting guidance requires all share-based payments to be recognized as an operating expense, based on their fair values, over the requisite service period. | |||||||||||||||||
The Company’s stock-based compensation expenses were allocated to the following expense categories: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Product costs | $ | 4 | $ | 7 | $ | 13 | $ | 17 | |||||||||
Research and development | 38 | 54 | 136 | 141 | |||||||||||||
Selling, general and administrative | 538 | 684 | 2,894 | 1,825 | |||||||||||||
Total | $ | 580 | $ | 745 | $ | 3,043 | $ | 1,983 | |||||||||
As of June 30, 2014, approximately $3.2 million of total unrecognized compensation costs related to non-vested awards is expected to be recognized over a weighted average period of approximately 1.6 years. Such costs include $1.1 million based on payout levels associated with performance share awards that are currently anticipated to be fully expensed because the performance conditions are expected to be met at or near target levels. | |||||||||||||||||
Stock Option Awards | |||||||||||||||||
The Company uses the Black-Scholes option pricing model to determine the weighted average grant date fair value of stock options granted. The weighted average per share fair values of stock options granted during the three months ended June 30, 2014 was $8.69. No stock options were granted during the three months ended June 30, 2013. The weighted average per share fair values of stock options granted during the nine months ended June 30, 2014 and 2013 were $8.72 and $8.69, respectively. The assumptions used as inputs in the model were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Risk-free interest rates | 1.6 | % | N/A | 1.2 | % | 0.6 | % | ||||||||||
Expected life (years) | 4.8 | N/A | 4.6 | 4.8 | |||||||||||||
Expected volatility | 43.9 | % | N/A | 44.5 | % | 49.2 | % | ||||||||||
Dividend yield | 0 | % | N/A | 0 | % | 0 | % | ||||||||||
The risk-free interest rate assumption was based on the U.S. Treasury’s rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award. The expected life of options granted is determined based on the Company’s experience. Expected volatility is based on the Company’s stock price movement over a period approximating the expected term. Based on management’s judgment, dividend rates are expected to be zero for the expected life of the options. The Company also estimates forfeitures of options granted, which are based on historical experience. | |||||||||||||||||
Non-qualified stock options are granted at fair market value on the date of grant. Non-qualified stock options expire in seven to ten years or upon termination of employment or service as a Board member. Non-qualified stock options granted to the Company’s employees generally become exercisable with respect to 25% of the shares on each of the first four anniversaries following the grant date. Non-qualified stock options granted to the Company’s non-employee directors vest on a prorated basis within the one-year period following the grant date. | |||||||||||||||||
The total pre-tax intrinsic value of options exercised during the three months and nine months ended June 30, 2014 was $0.2 million and $1.3 million, respectively. The total pre-tax intrinsic value of options exercised during the three months and nine months ended June 30, 2013 was less than $0.1 million in each period. The intrinsic value represents the difference between the exercise price and the fair market value of the Company’s common stock on the last day of the respective fiscal period end. | |||||||||||||||||
The Company modified stock option awards granted to Board members in February 2014, which resulted in acceleration of the stock option vesting period. The modification changed the vesting period to pro-rata over a 12-month service period and resulted in an increase to stock option related expense of $0.6 million in the nine months ended June 30, 2014. | |||||||||||||||||
Restricted Stock Awards | |||||||||||||||||
The Company has entered into restricted stock agreements with certain key employees, covering the issuance of common stock (“Restricted Stock”). Under accounting guidance these shares are considered to be non-vested shares. The Restricted Stock is released to the key employees if they are employed by the Company at the end of the vesting period. Compensation has been recognized for the estimated fair value of the common shares and is being charged to income over the vesting term. The stock-based compensation table above includes Restricted Stock expenses recognized related to these awards, which totaled less than $0.1 million during the three months ended June 30, 2014 and $0.2 million during the nine months ended June 30, 2014 and less than $0.1 million during the three and nine months ended June 30, 2013, respectively. In February 2014, the Company granted an award of $0.2 million to the former Chairman of its Board of Directors in connection with his retirement from the Board and in recognition of his contributions to the Company during his years of service. | |||||||||||||||||
Performance Share Awards | |||||||||||||||||
The Company has entered into performance share agreements with certain key employees, covering the issuance of common stock (“Performance Shares”). The Performance Shares vest upon the achievement of all or a portion of certain performance objectives, which must be achieved during the performance period. The Performance Shares are not issued and outstanding until the performance objectives are met. Performance objectives selected by the Organization and Compensation Committee of the Board of Directors (the “Committee”) were cumulative earnings per share and cumulative revenue for the three-year performance periods for fiscal 2011 (2011 – 2013), fiscal 2012 (2012 – 2014), fiscal 2013 (2013 – 2015) and fiscal 2014 (2014 – 2016). Assuming that the minimum performance level is attained, the number of shares that may actually vest will vary based on performance from 20% (minimum) to 200% (maximum). Shares will be issued to participants as soon as practicable following the end of the performance periods subject to Committee approval and verification of results. The fiscal 2011 awards were finalized in the three months ended December 31, 2013 and resulted in issuance of 122,053 shares (maximum was 137,066 shares) based on the performance objective results. The compensation cost related to the number of shares to be granted under each performance period is fixed on the grant date, which is the date the performance period begins. Compensation is recognized in each period based on management’s best estimate of the achievement level of the specified performance objectives for Performance Shares. For the three and nine months ended June 30, 2014, the Company recognized expenses of $0.2 million and $0.7 million, respectively, in each period. For the three and nine months ended June 30, 2013, the Company recognized expenses of $0.3 million and $0.9 million, respectively. The stock-based compensation table above includes the Performance Shares expenses. | |||||||||||||||||
The fair values of the Performance Shares, at target, were $0.9 million, $0.9 million and $0.8 million for grants awarded in fiscal 2014, 2013 and 2012, respectively. | |||||||||||||||||
The aggregate number of shares that could be awarded to key employees if the minimum, target and maximum performance goals are met, based upon the fair value at the date of grant is as follows: | |||||||||||||||||
Performance Period | Minimum Shares | Target Shares | Maximum Shares | ||||||||||||||
Fiscal 2012—2014 | 12,499 | 62,497 | 124,994 | ||||||||||||||
Fiscal 2013—2015 | 8,551 | 42,753 | 85,506 | ||||||||||||||
Fiscal 2014—2016 | 7,861 | 39,303 | 78,606 | ||||||||||||||
1999 Employee Stock Purchase Plan | |||||||||||||||||
Under the 1999 Employee Stock Purchase Plan (“Stock Purchase Plan”), the Company is authorized to issue up to 400,000 shares of common stock. All full-time and part-time employees can choose to have up to 10% of their annual compensation withheld, with a limit of $25,000, to purchase the Company’s common stock at purchase prices defined within the provisions of the Stock Purchase Plan. As of June 30, 2014 and 2013, there was less than $0.1 million and $0.1 million, respectively, of employee contributions in each period included in accrued liabilities in the condensed consolidated balance sheets. Stock compensation expense recognized related to the Stock Purchase Plan for the three and nine months ended June 30, 2014 and 2013 totaled less than $0.1 million and $0.1 million, respectively, in each period. The stock-based compensation table above includes the Stock Purchase Plan expenses. | |||||||||||||||||
Restricted Stock Units | |||||||||||||||||
The Company has awarded 24,834 restricted stock units (“RSU”) in fiscal 2014 and 2013 under the 2009 Equity Incentive Plan to non-employee directors with forfeiture of 3,417 RSU’s in the nine months ended June 30, 2014. The RSU awards were modified in the second quarter of fiscal 2014 to vest pro-rata over a 12-month service period. This modification resulted in a total expense of $0.2 million in the nine months ended June 30, 2014. RSU awards are not considered issued or outstanding common stock of the Company until they vest. The estimated fair value of the RSU awards was calculated based on the closing market price of SurModics’ common stock on the date of grant. Compensation has been recognized for the estimated fair value of the common shares and is being charged to income over the vesting term. Directors can also elect to receive their cash retainers for services to the Board of Directors and its committees in the form of deferred stock units (“DSU”). Certain directors elected this option beginning on January 1, 2013 which has resulted in 10,952 DSUs issued with a total value of $0.3 million. The DSUs are fully vested. The stock-based compensation table above includes RSU and DSU expenses recognized related to these awards, which totaled $0.1 million and $0.4 million during the three months and nine months ended June 30, 2014, respectively, and less than $0.1 million and $0.1 million during the three and nine months ended June 30, 2013, respectively. |
Restructuring_Charges
Restructuring Charges | 9 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Restructuring And Related Activities [Abstract] | ' | ||||||||||||
Restructuring Charges | ' | ||||||||||||
11. Restructuring Charges | |||||||||||||
The Company did not incur any restructuring charges during the three and nine months ended June 30, 2014 and 2013. | |||||||||||||
In September 2013 (fiscal 2013), the Company announced a realignment of its business to enhance focus on key growth initiatives. As a result of the organizational change, the Company eliminated approximately 6% of its workforce. These employee terminations occurred across various functions, and the reorganization plan was completed by the end of fiscal 2013. The Company recorded total pre-tax restructuring charges of $0.5 million in the fourth quarter of fiscal 2013, which consisted of severance pay and benefits expenses. | |||||||||||||
The following table summarizes the restructuring accrual activity: | |||||||||||||
(Dollars in thousands) | Employee | Facility- | Total | ||||||||||
Severance | Related | ||||||||||||
and Benefits | Costs | ||||||||||||
Balance at September 30, 2013 | $ | 399 | $ | 17 | $ | 416 | |||||||
Cash payments | (399 | ) | (15 | ) | (414 | ) | |||||||
Balance at June 30, 2014 | $ | — | $ | 2 | $ | 2 | |||||||
The remaining restructuring accrual balance is expected to be paid within the next 12 months and is recorded as a current liability within other current liabilities on the consolidated balance sheet as of June 30, 2014. |
Revolving_Credit_Facility
Revolving Credit Facility | 9 Months Ended |
Jun. 30, 2014 | |
Text Block [Abstract] | ' |
Revolving Credit Facility | ' |
12. Revolving Credit Facility | |
On November 4, 2013, the Company entered into a three-year $20.0 million secured revolving credit facility. The Company’s obligations under the credit facility are secured by substantially all of its and its subsidiaries’ assets, other than intellectual property and real estate. Borrowings under the credit facility, if any, will bear interest at a benchmark rate plus a margin ranging from 1.375% to 2.00% based on the Company’s leverage ratio. A facility fee is payable on unused commitments at a rate of 0.20% per annum. In connection with the credit facility, the Company is required to maintain financial covenants related to a maximum leverage ratio and a minimum EBITDA amount and to comply with nonfinancial covenants. As of June 30, 2014, the Company has no debt outstanding and was in compliance with all financial covenants. |
Income_Per_Share_Data
Income Per Share Data | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Income Per Share Data | ' | ||||||||||||||||
13. Income Per Share Data | |||||||||||||||||
Basic income per common share is calculated based on the weighted average number of common shares outstanding during the period. Diluted income per common share is computed by dividing income by the weighted average number of common and common equivalent shares outstanding during the period. The Company’s only potentially dilutive common shares are those that result from dilutive common stock options, non-vested stock relating to restricted stock awards, restricted stock units and performance shares. | |||||||||||||||||
The following table sets forth the denominator for the computation of basic and diluted income per share (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net income from continuing operations available to common shareholders | $ | 3,674 | $ | 3,178 | $ | 9,763 | $ | 10,846 | |||||||||
Basic weighted average shares outstanding | 13,585 | 14,413 | 13,639 | 14,563 | |||||||||||||
Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units and performance shares | 228 | 326 | 252 | 260 | |||||||||||||
Diluted weighted average shares outstanding | 13,813 | 14,739 | 13,891 | 14,823 | |||||||||||||
The calculation of weighted average diluted shares outstanding excludes outstanding stock options associated with the right to purchase 0.6 million and 0.3 million shares of common stock for the three months ended June 30, 2014 and 2013, respectively, and 0.4 million and 0.5 million for the nine months ended June 30, 2014 and 2013, respectively, as their inclusion would have had an antidilutive effect on diluted income per share. | |||||||||||||||||
During the first nine months of fiscal 2014, the Company repurchased 485,577 shares of common stock for a total of $11.5 million under the then-existing share repurchase authorization of the Board. The entire authorized amount has been used as of June 30, 2014. |
Income_Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
14. Income Taxes | |
The Company recorded income tax provisions associated with income from continuing operations of $1.7 million and $1.1 million for the three months ended June 30, 2014 and 2013, respectively, representing effective tax rates of 32.0% and 26.1%, respectively. The Company recorded income tax provisions associated with income from continuing operations of $4.4 million and $3.9 million for the nine months ended June 30, 2014 and 2013, respectively, representing effective tax rates of 31.1% and 26.5%, respectively. The difference between the U.S. federal statutory tax rate of 35.0% and the Company’s effective tax rate for the three and nine months ended June 30, 2014 and 2013 reflects the impact of state income taxes, permanent tax items such as valuation allowance releases associated with gains from our strategic investments and our available-for-sale investment portfolio and discrete tax benefits. Discrete tax benefits aggregated less than $0.1 million and $0.3 million for the three and nine months ended June 30, 2014, respectively, and $0.2 million and $0.8 million for the three and nine months ended June 30, 2013, respectively. The discrete tax items in the fiscal 2013 nine-month period includes a one-time capital gain carryback benefit and retroactive federal R&D tax credits that aggregated $0.4 million. The nine months ended June 30, 2014 reflects the impact of gains related to two Vessix contingent consideration payments totaling $0.7 million and gains related to certain debt securities in our available-for-sale investment portfolio of $0.1 million. The nine months ended June 30, 2013 reflects the impact of gains on the sale of Vessix, OctoPlus N.V of $1.3 million and certain debt securities in our available-for-sale investment portfolio of $0.2 million. Each of these gains has had a tax expense recognized which has been offset by the reversal of capital loss valuation allowances. | |
The Company recorded an income tax benefit from discontinued operations of less than $0.1 million in each of the three and nine months ended June 30, 2014 which resulted in an effective tax rate associated with discontinued operations of 34.8% in each period. The Company recorded an income tax expense from discontinued operations of $0.2 million and $0.5 million for the three and nine months ended June 30, 2013, respectively, with a resulting effective tax rate for discontinued operations of 134.6% and 44.8% for the three and nine months ended June 30, 2013, respectively. | |
The total amount of unrecognized tax benefits including interest and penalties that, if recognized, would affect the effective tax rate as of June 30, 2014 and September 30, 2013, respectively, are $0.9 million and $1.0 million. Currently, the Company does not expect the liability for unrecognized tax benefits to change significantly in the next 12 months with the above balances classified on the condensed consolidated balance sheets in other long-term liabilities. Interest and penalties related to unrecognized tax benefits are recorded in income tax expense. | |
The Company files income tax returns, including returns for its subsidiaries, in the U.S. federal jurisdiction and in various state jurisdictions. Uncertain tax positions are related to tax years that remain subject to examination. In the first quarter of fiscal 2014 the Internal Revenue Service commenced an examination of the Company’s U.S. income tax return for fiscal 2012 and the examination has not been completed as of June 30, 2014. U.S. income tax returns for years prior to fiscal 2010 are no longer subject to examination by federal tax authorities. For tax returns for state and local jurisdictions, the Company is no longer subject to examination for tax years generally before fiscal 2003. |
Amounts_Reclassified_Out_of_Ac
Amounts Reclassified Out of Accumulated Other Comprehensive Income | 9 Months Ended |
Jun. 30, 2014 | |
Equity [Abstract] | ' |
Amounts Reclassified Out of Accumulated Other Comprehensive Income | ' |
15. Amounts Reclassified Out of Accumulated Other Comprehensive Income | |
There were no amounts reclassified out of accumulated other comprehensive income (“AOCI”) for the three months ended June 30, 2014 or 2013. The amounts reclassified out of AOCI for the nine months ended June 30, 2014 and 2013 totaled $0.1 million and $0.2 million, respectively, on a pre-tax basis. The amounts reclassified out of AOCI are associated with unrealized gains on available-for-sale securities that were realized on the sale of the securities and are presented in other income, net in the condensed consolidated statements of income. |
Operating_Segments
Operating Segments | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Operating Segments | ' | ||||||||||||||||
16. Operating Segments | |||||||||||||||||
Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, who is the Company’s Chief Executive Officer, in deciding how to allocate resources and in assessing performance. For financial accounting and reporting purposes, the Company reports its results for the two reportable segments as follows: (1) the Medical Device unit, which is comprised of surface modification coating technologies to improve access, deliverability, and predictable deployment of medical devices, as well as drug delivery coating technologies to provide site-specific drug delivery from the surface of a medical device, with end markets that include coronary, peripheral, and neuro-vascular, and urology, among others, and (2) the In Vitro Diagnostics unit, which consists of component products and technologies for diagnostic test kits and biomedical research applications, with products that include protein stabilization reagents, substrates, antigens and surface coatings. | |||||||||||||||||
The tables below present segment revenue, operating income and depreciation and amortization, as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue: | |||||||||||||||||
Medical Device | $ | 10,821 | $ | 10,591 | $ | 31,852 | $ | 30,857 | |||||||||
In Vitro Diagnostics | 3,795 | 3,698 | 10,251 | 10,978 | |||||||||||||
Total revenue | $ | 14,616 | $ | 14,289 | $ | 42,103 | $ | 41,835 | |||||||||
Operating income: | |||||||||||||||||
Medical Device | $ | 5,855 | $ | 5,223 | $ | 16,466 | $ | 15,848 | |||||||||
In Vitro Diagnostics | 974 | 915 | 2,277 | 2,933 | |||||||||||||
Total segment operating income | 6,829 | 6,138 | 18,743 | 18,781 | |||||||||||||
Corporate | (1,496 | ) | (1,900 | ) | (5,601 | ) | (5,537 | ) | |||||||||
Total operating income | $ | 5,333 | $ | 4,238 | $ | 13,142 | $ | 13,244 | |||||||||
Depreciation and amortization: | |||||||||||||||||
Medical Device | $ | 281 | $ | 319 | $ | 862 | $ | 947 | |||||||||
In Vitro Diagnostics | 214 | 216 | 641 | 649 | |||||||||||||
Corporate | 179 | 193 | 551 | 578 | |||||||||||||
Total depreciation and amortization | $ | 674 | $ | 728 | $ | 2,054 | $ | 2,174 | |||||||||
The Corporate category includes expenses for administrative corporate functions, such as executive, corporate accounting, legal, human resources and Board of Directors related, that have not been fully allocated to the Medical Device and In Vitro Diagnostics segments. Corporate also includes expenses, such as litigation, which are not specific to a segment and thus not allocated to the operating segments. | |||||||||||||||||
Asset information by segment is not presented because the Company does not provide its chief operating decision maker assets by segment, as the data is not readily available. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
17. Commitments and Contingencies | |
Litigation. From time to time, the Company has been, and may become, involved in various legal actions involving its operations, products and technologies, including intellectual property and employment disputes. The outcomes of these legal actions are not within the Company’s complete control and may not be known for prolonged periods of time. In some actions, the claimants seek damages, as well as other relief, including injunctions barring the sale of products that are the subject of the lawsuit, which, if granted, could require significant expenditures or result in lost revenue. The Company records a liability in the consolidated financial statements for these actions when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate, the minimum amount of the range is accrued. If a loss is possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. In most cases, significant judgment is required to estimate the amount and timing of a loss to be recorded. | |
Southern Research Institute (“SRI”) Litigation. On July 31, 2009, SurModics Pharmaceuticals was named as a defendant in litigation pending in the circuit court of Jefferson County, Alabama, between SRI and two of SRI’s former employees (the “Plaintiffs”). In the litigation, the Plaintiffs alleged that they contributed to or invented certain intellectual property while they were employed at SRI, and pursuant to SRI’s policies then in effect, they were entitled to, among other things, a portion of the purchase price consideration paid by the Company to SRI as part of the Company’s acquisition of SurModics Pharmaceuticals (the “purchase price claim”) pursuant to a stock purchase agreement made effective on July 31, 2007 (the “Stock Purchase Agreement”). The Plaintiffs also alleged that they were entitled to a portion of the intellectual property income derived from license agreements with certain customers of SurModics Pharmaceuticals that make use of patents to which the Plaintiffs invented or contributed (the “royalty claim”). In April 2014, the Alabama Court granted summary judgment in favor of the Company and SRI dismissing (a) all of the claims of one of the Plaintiffs, and (b) the claims of the remaining Plaintiff relating to the purchase price claim. In connection with the royalty claim, the Alabama Court concluded that two license agreements that were entered into with certain customers of SurModics Pharmaceuticals resulted in intellectual property income and that the remaining Plaintiff is entitled to a portion of such income. In June 2014, the Company entered into agreements with the Plaintiffs resolving the litigation. In connection with the resolution of the litigation, the Company recorded an additional expense, within discontinued operations, of $0.1 million in the three and nine months ended June 30, 2014. | |
Pursuant to the Stock Purchase Agreement, the Company has certain rights of indemnification against losses (including without limitation, damages, expenses and costs) incurred as a result of the litigation described above. The Company had recorded cumulative unreimbursed legal expenses totaling $1.3 million as of June 30, 2013, related to this litigation, within selling, general and administrative expenses from continuing operations in the condensed consolidated statements of income. In June 2011, the Company sued SRI in United States District Court for the District of Minnesota seeking a judicial declaration regarding the scope of the Company’s indemnification rights under the Stock Purchase Agreement. In April 2013, the District Court entered a judgment in the Company’s favor requiring SRI to indemnify the Company for prior and future legal expenditures related to this matter. On July 30, 2013, the Company and SRI entered into a settlement and release agreement resolving the litigation relating to indemnification rights. The settlement and release agreement does not relate to claims for indemnification under the Stock Purchase Agreement for any substantive liability, judgment, or settlement in or related to the ongoing litigation in Alabama discussed above. The Company received payment of $1.0 million associated with the historical cumulative unreimbursed legal expenses and recognized the receipt as an expense offset in the fourth quarter ended September 30, 2013. This settlement included $0.6 million of legal expenses incurred prior to fiscal 2013. | |
InnoRx, Inc. In January 2005, the Company entered into a merger agreement whereby SurModics acquired all of the assets of InnoRx, Inc. (“InnoRx”), an early stage company developing drug delivery devices and therapies for the ophthalmology market. SurModics will be required to issue up to approximately 480,059 additional shares of its common stock to the stockholders of InnoRx upon the successful completion of the remaining development and commercial milestones involving InnoRx technology acquired in the transaction. The Company has not recorded any accrual for this contingency as of June 30, 2014 as the milestones have not been achieved and the probability of achievement is low. | |
InnoCore Technologies BV. In March 2006, the Company entered into a license agreement whereby SurModics obtained an exclusive license to a drug delivery coating for licensed products within the vascular field which included peripheral, coronary and neurovascular biodurable stent product. The license requires an annual minimum payment of 200,000 euros (equivalent to $273,000 using a euro to US $ exchange rate of 1.36452 as of June 30, 2014) until the last patent expires which is currently estimated to be September 2027. The total minimum future payments associated with this license are approximately $3.6 million. The license is currently utilized with one of SurModics’ drug delivery customers. | |
PR Pharmaceuticals, Inc. In November 2008, SurModics Pharmaceuticals acquired certain contracts and assets of PR Pharma to enhance its portfolio of drug delivery technologies for the pharmaceutical and biotechnology industries. The Company agreed to indemnify Evonik, for a period of five years, for up to $2.5 million of contingent consideration obligations to the sellers of PR Pharma related to a future patent issuance milestone when it sold substantially all of the SurModics Pharmaceuticals assets to Evonik on November 17, 2011. The Company has not recorded any accrual for this contingency as of June 30, 2014 as the milestone has not been achieved and the probability of achievement is low. |
Key_Accounting_Policies_Polici
Key Accounting Policies (Policies) | 9 Months Ended | |||
Jun. 30, 2014 | ||||
Accounting Policies [Abstract] | ' | |||
Revenue recognition | ' | |||
Revenue recognition | ||||
The Company recognizes revenue when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) shipment has occurred or delivery has occurred if the terms specify destination; (3) the sales price is fixed or determinable; and (4) collectability is reasonably assured. When there are additional performance requirements, revenue is recognized when all such requirements have been satisfied. Under revenue arrangements with multiple deliverables, the Company recognizes each separable deliverable as it is earned. | ||||
The Company derives its revenue from three primary sources: (1) royalties and license fees from licensing its proprietary drug delivery and surface modification technologies and in vitro diagnostic formats to customers; (2) the sale of reagent chemicals to licensees and the sale of stabilization products, antigens, substrates and surface coatings to the diagnostic and biomedical research markets; and (3) research and commercial development fees generated on customer projects. | ||||
Royalties and license fees | ' | |||
Royalties and license fees. The Company licenses technology to third parties and collects royalties. Royalty revenue is generated when a customer sells products incorporating the Company’s licensed technologies. Royalty revenue is recognized as licensees report it to the Company, and payment is typically submitted concurrently with the report. For stand-alone license agreements, up-front license fees are recognized over the term of the related licensing agreement. Minimum royalty fees are recognized in the period earned. | ||||
Revenue related to a performance milestone is recognized upon the achievement of the milestone, as defined in the respective agreements and provided the following conditions have been met: | ||||
• | The milestone payment is non-refundable; | |||
• | The milestone involved a significant degree of risk, and was not reasonably assured at the inception of the arrangement; | |||
• | Accomplishment of the milestone involved substantial effort; | |||
• | The amount of the milestone payment is commensurate with the related effort and risk; and | |||
• | A reasonable amount of time passed between the initial license payment and the first and subsequent milestone payments. | |||
If these conditions have not been met, the milestone payment is deferred and recognized over the term of the agreement. | ||||
Product sales | ' | |||
Product sales. Product sales to third parties consist of direct and distributor sales and are recognized at the time of shipment. The Company’s sales terms provide no right of return outside of the standard warranty policy. Payment terms are generally set at 30-45 days. | ||||
Research and development | ' | |||
Research and development. The Company performs third-party research and development activities, which are typically provided on a time and materials basis. Generally, revenue for research and development is recorded as performance progresses under the applicable contract. | ||||
Arrangements with multiple deliverables | ' | |||
Arrangements with multiple deliverables. Revenue arrangements with multiple deliverables require the Company to: | ||||
(i) disclose whether multiple deliverables exist, how the deliverables in an arrangement should be separated, and how the consideration should be allocated; | ||||
(ii) allocate revenue in an arrangement using estimated selling prices (“ESP”) of deliverables if a vendor does not have vendor-specific objective evidence of selling price (“VSOE”) or third-party evidence of selling price (“TPE”); and | ||||
(iii) allocate revenue using the relative selling price method. | ||||
The Company accounts for revenue using a multiple attribution model in which consideration allocated to research and development activities is recognized as performed, and milestone payments are recognized when the milestone events are achieved, when such activities and milestones are deemed substantive. Accordingly, in situations where a unit of accounting includes both a license and research and development activities, and when a license does not have stand-alone value, the Company applies a multiple attribution model in which consideration allocated to the license is recognized ratably, consideration allocated to research and development activities is recognized as performed and milestone payments are recognized when the milestone events are achieved, when such activities and milestones are deemed substantive. | ||||
The Company enters into license and development arrangements that may consist of multiple deliverables which could include a license(s) to SurModics’ technology, research and development activities, manufacturing services, and product sales based on the needs of its customers. For example, a customer may enter into an arrangement to obtain a license to SurModics’ intellectual property which may also include research and development activities, and supply of products manufactured by SurModics. For these services provided, SurModics could receive upfront license fees upon signing of an agreement and granting the license, fees for research and development activities as such activities are performed, milestone payments contingent upon advancement of the product through development and clinical stages to successful commercialization, fees for manufacturing services and supply of product, and royalty payments based on customer sales of product incorporating SurModics’ technology. The Company’s license and development arrangements generally do not have refund provisions if the customer cancels or terminates the agreement. Typically all payments made are non-refundable. | ||||
The Company is required to evaluate each deliverable in a multiple element arrangement for separability. The Company is then required to allocate revenue to each separate deliverable using a hierarchy of VSOE, TPE, or ESP. In many instances, the Company is not able to establish VSOE for all deliverables in an arrangement with multiple elements. This may be a result of the Company infrequently selling each element separately or having a limited history with multiple element arrangements. When VSOE cannot be established, the Company attempts to establish a selling price of each element based on TPE. TPE is determined based on competitor prices for similar deliverables when sold separately. | ||||
When the Company is unable to establish a selling price using VSOE or TPE, the Company uses ESP in its allocation of arrangement consideration. The objective of ESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. ESP is generally used for highly customized offerings. | ||||
The Company determines ESP for undelivered elements by considering multiple factors including, but not limited to, market conditions, competitive landscape and past pricing arrangements with similar features. The determination of ESP is made through consultation with the Company’s management, taking into consideration the marketing strategies for each business unit. | ||||
New Accounting Pronouncements | ' | |||
New Accounting Pronouncements | ||||
Accounting Standards to be Adopted | ||||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued amended guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar to a tax loss, or tax credit carryforward exits. The guidance requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, be presented as a reduction of a deferred tax asset when a net operating loss carryforward, or similar tax loss, or tax credit carryforward exits, with certain exceptions. This accounting guidance is effective prospectively for the Company beginning in the first quarter of fiscal 2015. The adoption is not expected to have a material impact on the Company’s results of operations, cash flows and financial position. | ||||
In May 2014, the FASB issued new revenue recognition guidance for recognizing revenue from contracts with customers that provides a five-step analysis of transactions to determine when and how revenue is recognized. The guidance states that a Company should recognize revenue which depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to receive in exchange for those goods or services. The new standard will also result in enhanced disclosures about revenue related to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The standard also requires quantitative and qualitative disclosures about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. Additionally it has provided guidance for transactions that were not previously addressed comprehensively, and improved guidance for multiple-element arrangements. This pronouncement is effective for the Company beginning in fiscal 2018 (October 1, 2017), early adoption is not permitted, and can be adopted by the Company either retrospectively (October 1, 2015) or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the impact of adopting this new accounting guidance will have on the Company’s results of operations, cash flows and financial position. | ||||
No other new accounting pronouncement issued or effective has had, or is expected to have, a material impact on the Company’s consolidated financial statements. |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Discontinued Operations And Disposal Groups [Abstract] | ' | ||||||||||||||||
Operating Results from Discontinued Operations | ' | ||||||||||||||||
The following is a summary of the operating results of SurModics Pharmaceuticals discontinued operations for the three and nine months ended June 30, 2014 and 2013: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
(Loss) income from discontinued operations | $ | (117 | ) | $ | 136 | $ | (117 | ) | $ | 1,151 | |||||||
Income tax benefit (provision) | 41 | (183 | ) | 41 | (516 | ) | |||||||||||
(Loss) income from discontinued operations, net of income taxes | $ | (76 | ) | $ | (47 | ) | $ | (76 | ) | $ | 635 | ||||||
Assets and Liabilities of Discontinued Operations | ' | ||||||||||||||||
The major classes of assets and liabilities of discontinued operations as of June 30, 2014 and September 30, 2013 were as follows: | |||||||||||||||||
June 30, | September 30, | ||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||
Other current assets | $ | 85 | $ | 46 | |||||||||||||
Current assets of discontinued operations | 85 | 46 | |||||||||||||||
Total assets of discontinued operations | $ | 85 | $ | 46 | |||||||||||||
Other current liabilities payable | $ | 75 | $ | 139 | |||||||||||||
Current liabilities of discontinued operations | 75 | 139 | |||||||||||||||
Total liabilities of discontinued operations | $ | 75 | $ | 139 | |||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2014: | |||||||||||||||||
(Dollars in thousands) | Quoted Prices in | Significant | Significant | Total Fair | |||||||||||||
Active Markets | Other | Unobservable | Value as of | ||||||||||||||
for Identical | Observable | Inputs | June 30, | ||||||||||||||
Instruments | Inputs | (Level 3) | 2014 | ||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents | $ | — | $ | 36,861 | $ | — | $ | 36,861 | |||||||||
Available-for-sale debt securities: | |||||||||||||||||
U.S. government and government agency obligations | — | 2,864 | — | 2,864 | |||||||||||||
Mortgage-backed securities | — | 5,106 | — | 5,106 | |||||||||||||
Municipal bonds | — | 1,564 | — | 1,564 | |||||||||||||
Asset-backed securities | — | 6,000 | — | 6,000 | |||||||||||||
Corporate bonds | — | 1,845 | — | 1,845 | |||||||||||||
Total assets measured at fair value | $ | — | $ | 54,240 | $ | — | $ | 54,240 | |||||||||
The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2013: | |||||||||||||||||
(Dollars in thousands) | Quoted Prices in | Significant | Significant | Total Fair | |||||||||||||
Active Markets | Other | Unobservable | Value as of | ||||||||||||||
for Identical | Observable | Inputs | September 30, | ||||||||||||||
Instruments | Inputs | (Level 3) | 2013 | ||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents | $ | — | $ | 4,402 | $ | — | $ | 4,402 | |||||||||
Available-for-sale debt securities: | |||||||||||||||||
U.S. government and government agency obligations | — | 22,890 | — | 22,890 | |||||||||||||
Mortgage-backed securities | — | 8,216 | — | 8,216 | |||||||||||||
Municipal bonds | — | 3,059 | — | 3,059 | |||||||||||||
Asset-backed securities | — | 3,537 | — | 3,537 | |||||||||||||
Corporate bonds | — | 4,907 | — | 4,907 | |||||||||||||
Total assets measured at fair value | $ | — | $ | 47,011 | $ | — | $ | 47,011 | |||||||||
Investments_Tables
Investments (Tables) | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||
Amortized Cost, Unrealized Holding Gains (Losses) and Fair Value of Available-for-Sale Securities | ' | ||||||||||||||||
The amortized cost, unrealized holding gains and losses, and fair value of available-for-sale securities as of June 30, 2014 and September 30, 2013 were as follows: | |||||||||||||||||
June 30, 2014 | |||||||||||||||||
(Dollars in thousands) | Amortized | Unrealized | Unrealized | Fair Value | |||||||||||||
Cost | Gains | Losses | |||||||||||||||
U.S. government and government agency obligations | $ | 2,846 | $ | 21 | $ | (3 | ) | $ | 2,864 | ||||||||
Mortgage-backed securities | 5,096 | 56 | (46 | ) | 5,106 | ||||||||||||
Municipal bonds | 1,558 | 9 | (3 | ) | 1,564 | ||||||||||||
Asset-backed securities | 5,990 | 14 | (4 | ) | 6,000 | ||||||||||||
Corporate bonds | 1,835 | 12 | (2 | ) | 1,845 | ||||||||||||
Total | $ | 17,325 | $ | 112 | $ | (58 | ) | $ | 17,379 | ||||||||
September 30, 2013 | |||||||||||||||||
(Dollars in thousands) | Amortized | Unrealized | Unrealized | Fair Value | |||||||||||||
Cost | Gains | Losses | |||||||||||||||
U.S. government and government agency obligations | $ | 22,889 | $ | 28 | $ | (27 | ) | $ | 22,890 | ||||||||
Mortgage-backed securities | 8,149 | 118 | (51 | ) | 8,216 | ||||||||||||
Municipal bonds | 3,049 | 15 | (5 | ) | 3,059 | ||||||||||||
Asset-backed securities | 3,539 | 6 | (8 | ) | 3,537 | ||||||||||||
Corporate bonds | 4,896 | 17 | (6 | ) | 4,907 | ||||||||||||
Total | $ | 42,522 | $ | 184 | $ | (97 | ) | $ | 42,609 | ||||||||
Amortized Cost and Fair Value of Investments by Contractual Maturity | ' | ||||||||||||||||
The amortized cost and fair value of investments by contractual maturity at June 30, 2014 were as follows: | |||||||||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | |||||||||||||||
Debt securities due within: | |||||||||||||||||
One year | $ | 875 | $ | 882 | |||||||||||||
One to five years | 10,784 | 10,823 | |||||||||||||||
Five years or more | 5,666 | 5,674 | |||||||||||||||
Total | $ | 17,325 | $ | 17,379 | |||||||||||||
Sales of Available-for-Sale Securities | ' | ||||||||||||||||
The following table summarizes sales of available-for-sale securities: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Proceeds from sales | $ | 65,455 | $ | 8,507 | $ | 157,970 | $ | 34,487 | |||||||||
Gross realized gains | $ | — | $ | 6 | $ | 126 | $ | 171 | |||||||||
Gross realized losses | $ | — | $ | (4 | ) | $ | (1 | ) | $ | (4 | ) | ||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Components of Inventories | ' | ||||||||
Inventories consisted of the following components: | |||||||||
June 30, | September 30, | ||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||
Raw materials | $ | 976 | $ | 1,378 | |||||
Finished products | 1,924 | 1,950 | |||||||
Total | $ | 2,900 | $ | 3,328 | |||||
Other_Assets_Tables
Other Assets (Tables) | 9 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Investments All Other Investments [Abstract] | ' | ||||||||
Schedule of Other Assets Consist Principally of Strategic Investments | ' | ||||||||
Other assets consist principally of strategic investments as follows: | |||||||||
June 30, | September 30, | ||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||
CeloNova BioSciences, Inc. | $ | 1,500 | $ | 1,500 | |||||
ThermopeutiX, Inc. | 1,185 | 1,185 | |||||||
ViaCyte, Inc. | 479 | 479 | |||||||
Other | 2 | 2 | |||||||
Other assets, net | $ | 3,166 | $ | 3,166 | |||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Intangible Assets | ' | ||||||||||||||||
Intangible assets consisted of the following: | |||||||||||||||||
June 30, 2014 | |||||||||||||||||
(Dollars in thousands) | Weighted Average | Gross Carrying | Accumulated | Net | |||||||||||||
Original Life (Years) | Amount | Amortization | |||||||||||||||
Definite-lived intangible assets: | |||||||||||||||||
Customer lists | 9 | $ | 4,857 | $ | (3,679 | ) | $ | 1,178 | |||||||||
Core technology | 8 | 530 | (458 | ) | 72 | ||||||||||||
Patents and other | 16.8 | 2,256 | (955 | ) | 1,301 | ||||||||||||
Subtotal | 7,643 | (5,092 | ) | 2,551 | |||||||||||||
Unamortized intangible assets: | |||||||||||||||||
Trademarks | 580 | — | 580 | ||||||||||||||
Total | $ | 8,223 | $ | (5,092 | ) | $ | 3,131 | ||||||||||
September 30, 2013 | |||||||||||||||||
(Dollars in thousands) | Weighted Average | Gross Carrying | Accumulated | Net | |||||||||||||
Original Life (Years) | Amount | Amortization | |||||||||||||||
Definite-lived intangible assets: | |||||||||||||||||
Customer lists | 9 | $ | 4,857 | $ | (3,274 | ) | $ | 1,583 | |||||||||
Core technology | 8 | 530 | (409 | ) | 121 | ||||||||||||
Patents and other | 16.8 | 2,256 | (852 | ) | 1,404 | ||||||||||||
Subtotal | 7,643 | (4,535 | ) | 3,108 | |||||||||||||
Unamortized intangible assets: | |||||||||||||||||
Trademarks | 580 | — | 580 | ||||||||||||||
Total | $ | 8,223 | $ | (4,535 | ) | $ | 3,688 | ||||||||||
Estimated Amortization Expenses | ' | ||||||||||||||||
Based on the intangible assets in service as of June 30, 2014, estimated amortization expense for the remainder of fiscal 2014 and each of the next five fiscal years is as follows: | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Remainder of 2014 | $ | 186 | |||||||||||||||
2015 | 731 | ||||||||||||||||
2016 | 594 | ||||||||||||||||
2017 | 183 | ||||||||||||||||
2018 | 137 | ||||||||||||||||
2019 | 137 |
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Stock-Based Compensation Expenses | ' | ||||||||||||||||
The Company’s stock-based compensation expenses were allocated to the following expense categories: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Product costs | $ | 4 | $ | 7 | $ | 13 | $ | 17 | |||||||||
Research and development | 38 | 54 | 136 | 141 | |||||||||||||
Selling, general and administrative | 538 | 684 | 2,894 | 1,825 | |||||||||||||
Total | $ | 580 | $ | 745 | $ | 3,043 | $ | 1,983 | |||||||||
Assumptions Used in Stock Option Plans | ' | ||||||||||||||||
The assumptions used as inputs in the model were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Risk-free interest rates | 1.6 | % | N/A | 1.2 | % | 0.6 | % | ||||||||||
Expected life (years) | 4.8 | N/A | 4.6 | 4.8 | |||||||||||||
Expected volatility | 43.9 | % | N/A | 44.5 | % | 49.2 | % | ||||||||||
Dividend yield | 0 | % | N/A | 0 | % | 0 | % | ||||||||||
Schedule of Fair Value at the Date of Grant | ' | ||||||||||||||||
The aggregate number of shares that could be awarded to key employees if the minimum, target and maximum performance goals are met, based upon the fair value at the date of grant is as follows: | |||||||||||||||||
Performance Period | Minimum Shares | Target Shares | Maximum Shares | ||||||||||||||
Fiscal 2012—2014 | 12,499 | 62,497 | 124,994 | ||||||||||||||
Fiscal 2013—2015 | 8,551 | 42,753 | 85,506 | ||||||||||||||
Fiscal 2014—2016 | 7,861 | 39,303 | 78,606 |
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 9 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Restructuring And Related Activities [Abstract] | ' | ||||||||||||
Restructuring Accrual Activities | ' | ||||||||||||
The following table summarizes the restructuring accrual activity: | |||||||||||||
(Dollars in thousands) | Employee | Facility- | Total | ||||||||||
Severance | Related | ||||||||||||
and Benefits | Costs | ||||||||||||
Balance at September 30, 2013 | $ | 399 | $ | 17 | $ | 416 | |||||||
Cash payments | (399 | ) | (15 | ) | (414 | ) | |||||||
Balance at June 30, 2014 | $ | — | $ | 2 | $ | 2 | |||||||
Income_Per_Share_Data_Tables
Income Per Share Data (Tables) | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Components of Basic and Diluted Income Per Share Computation | ' | ||||||||||||||||
The following table sets forth the denominator for the computation of basic and diluted income per share (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net income from continuing operations available to common shareholders | $ | 3,674 | $ | 3,178 | $ | 9,763 | $ | 10,846 | |||||||||
Basic weighted average shares outstanding | 13,585 | 14,413 | 13,639 | 14,563 | |||||||||||||
Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units and performance shares | 228 | 326 | 252 | 260 | |||||||||||||
Diluted weighted average shares outstanding | 13,813 | 14,739 | 13,891 | 14,823 | |||||||||||||
Operating_Segments_Tables
Operating Segments (Tables) | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Revenue, Operating Income and Depreciation and Amortization | ' | ||||||||||||||||
The tables below present segment revenue, operating income and depreciation and amortization, as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue: | |||||||||||||||||
Medical Device | $ | 10,821 | $ | 10,591 | $ | 31,852 | $ | 30,857 | |||||||||
In Vitro Diagnostics | 3,795 | 3,698 | 10,251 | 10,978 | |||||||||||||
Total revenue | $ | 14,616 | $ | 14,289 | $ | 42,103 | $ | 41,835 | |||||||||
Operating income: | |||||||||||||||||
Medical Device | $ | 5,855 | $ | 5,223 | $ | 16,466 | $ | 15,848 | |||||||||
In Vitro Diagnostics | 974 | 915 | 2,277 | 2,933 | |||||||||||||
Total segment operating income | 6,829 | 6,138 | 18,743 | 18,781 | |||||||||||||
Corporate | (1,496 | ) | (1,900 | ) | (5,601 | ) | (5,537 | ) | |||||||||
Total operating income | $ | 5,333 | $ | 4,238 | $ | 13,142 | $ | 13,244 | |||||||||
Depreciation and amortization: | |||||||||||||||||
Medical Device | $ | 281 | $ | 319 | $ | 862 | $ | 947 | |||||||||
In Vitro Diagnostics | 214 | 216 | 641 | 649 | |||||||||||||
Corporate | 179 | 193 | 551 | 578 | |||||||||||||
Total depreciation and amortization | $ | 674 | $ | 728 | $ | 2,054 | $ | 2,174 | |||||||||
Key_Accounting_Policies_Additi
Key Accounting Policies - Additional Information (Detail) | 9 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Product sales payment terms, general minimum | '30 days |
Product sales payment terms, general maximum | '45 days |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |
Nov. 17, 2011 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | |
Government Authorities in Alabama [Member] | Government Authorities in Alabama [Member] | Government Authorities in Alabama [Member] | ||||
Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' |
Total consideration received from the Pharma Sale | $30,000,000 | ' | ' | ' | ' | ' |
Restricted time period for competition | '5 years | ' | ' | ' | ' | ' |
Payment on settlement of retained liability | ' | ' | ' | 325,000 | 325,000 | ' |
Gain (Loss) on sale of discontinued operations, net of income taxes | ' | ' | ' | ' | ' | 1,300,000 |
Additional litigation expense within discontinued operations | ' | $100,000 | $100,000 | ' | ' | ' |
Discontinued_Operations_Operat
Discontinued Operations - Operating Results from Discontinued Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Discontinued Operations And Disposal Groups [Abstract] | ' | ' | ' | ' |
(Loss) income from discontinued operations | ($117) | $136 | ($117) | $1,151 |
Income tax benefit (provision) | 41 | -183 | 41 | -516 |
(Loss) income from discontinued operations, net of income taxes | ($76) | ($47) | ($76) | $635 |
Discontinued_Operations_Assets
Discontinued Operations - Assets and Liabilities of Discontinued Operations (Detail) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Discontinued Operations And Disposal Groups [Abstract] | ' | ' |
Other current assets | $85 | $46 |
Current assets of discontinued operations | 85 | 46 |
Total assets of discontinued operations | 85 | 46 |
Other current liabilities payable | 75 | 139 |
Current liabilities of discontinued operations | 75 | 139 |
Total liabilities of discontinued operations | $75 | $139 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (Significant Unobservable Inputs (Level 3) [Member], USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | |||||
Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Assets measured at fair value | $0 | $0 | $0 | $0 | $0 |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | |||||
Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | $0 | $0 | $0 | $0 | $0 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | 54,240 | ' | 47,011 | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | U.S. government and government agency obligations [Member] | Available-for-sale debt securities [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | 2,864 | ' | 22,890 | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | Mortgage-backed securities [Member] | Available-for-sale debt securities [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | 5,106 | ' | 8,216 | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | Asset-backed securities [Member] | Available-for-sale debt securities [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | 6,000 | ' | 3,537 | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | ' | ' | ' | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | U.S. government and government agency obligations [Member] | Available-for-sale debt securities [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | ' | ' | ' | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Mortgage-backed securities [Member] | Available-for-sale debt securities [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | ' | ' | ' | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Asset-backed securities [Member] | Available-for-sale debt securities [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | ' | ' | ' | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | 54,240 | ' | 47,011 | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. government and government agency obligations [Member] | Available-for-sale debt securities [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | 2,864 | ' | 22,890 | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage-backed securities [Member] | Available-for-sale debt securities [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | 5,106 | ' | 8,216 | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Asset-backed securities [Member] | Available-for-sale debt securities [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | 6,000 | ' | 3,537 | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | ' | ' | ' | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. government and government agency obligations [Member] | Available-for-sale debt securities [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | ' | ' | ' | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage-backed securities [Member] | Available-for-sale debt securities [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | ' | ' | ' | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Asset-backed securities [Member] | Available-for-sale debt securities [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | ' | ' | ' | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | Cash equivalents [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | 36,861 | ' | 4,402 | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | Cash equivalents [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | ' | ' | ' | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | Cash equivalents [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | 36,861 | ' | 4,402 | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | Cash equivalents [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | ' | ' | ' | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | Municipal bonds [Member] | Available-for-sale debt securities [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | 1,564 | ' | 3,059 | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | Municipal bonds [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Available-for-sale debt securities [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | ' | ' | ' | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | Municipal bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | Available-for-sale debt securities [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | 1,564 | ' | 3,059 | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | Municipal bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Available-for-sale debt securities [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | ' | ' | ' | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | Corporate bonds [Member] | Available-for-sale debt securities [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | 1,845 | ' | 4,907 | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | Corporate bonds [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Available-for-sale debt securities [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | ' | ' | ' | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | Corporate bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | Available-for-sale debt securities [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | 1,845 | ' | 4,907 | ' | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] | Corporate bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Available-for-sale debt securities [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total assets measured at fair value | ' | ' | ' | ' | ' |
Investments_Amortized_Cost_Unr
Investments - Amortized Cost, Unrealized Holding Gains (Losses) and Fair Value of Available-for-Sale Securities (Detail) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | $17,325 | $42,522 |
Unrealized Gains | 112 | 184 |
Unrealized Losses | -58 | -97 |
Fair Value | 17,379 | 42,609 |
Municipal bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 1,558 | 3,049 |
Unrealized Gains | 9 | 15 |
Unrealized Losses | -3 | -5 |
Fair Value | 1,564 | 3,059 |
Corporate bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 1,835 | 4,896 |
Unrealized Gains | 12 | 17 |
Unrealized Losses | -2 | -6 |
Fair Value | 1,845 | 4,907 |
U.S. government and government agency obligations [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 2,846 | 22,889 |
Unrealized Gains | 21 | 28 |
Unrealized Losses | -3 | -27 |
Fair Value | 2,864 | 22,890 |
Mortgage-backed securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 5,096 | 8,149 |
Unrealized Gains | 56 | 118 |
Unrealized Losses | -46 | -51 |
Fair Value | 5,106 | 8,216 |
Asset-backed securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 5,990 | 3,539 |
Unrealized Gains | 14 | 6 |
Unrealized Losses | -4 | -8 |
Fair Value | $6,000 | $3,537 |
Investments_Amortized_Cost_and
Investments - Amortized Cost and Fair Value of Investments by Contractual Maturity (Detail) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Amortized cost | ' |
Debt securities due within one year | $875 |
Debt securities due within one to five years | 10,784 |
Debt securities due within five years or more | 5,666 |
Total | 17,325 |
Fair value | ' |
Debt securities due within one year | 882 |
Debt securities due within one to five years | 10,823 |
Debt securities due within five years or more | 5,674 |
Total | $17,379 |
Investments_Sales_of_Available
Investments - Sales of Available-for-Sale Securities (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Investments Debt And Equity Securities [Abstract] | ' | ' | ' | ' |
Proceeds from sales | $65,455 | $8,507 | $157,970 | $34,487 |
Gross realized gains | ' | 6 | 126 | 171 |
Gross realized losses | ' | ($4) | ($1) | ($4) |
Inventories_Components_of_Inve
Inventories - Components of Inventories (Detail) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $976 | $1,378 |
Finished products | 1,924 | 1,950 |
Total | $2,900 | $3,328 |
Other_Assets_Schedule_of_Other
Other Assets - Schedule of Other Assets Consist Principally of Strategic Investments (Detail) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Investments [Line Items] | ' | ' |
Other assets, net | $3,166 | $3,166 |
CeloNova BioSciences, Inc. [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Other assets, net | 1,500 | 1,500 |
ThermopeutiX, Inc. [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Other assets, net | 1,185 | 1,185 |
ViaCyte, Inc. [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Other assets, net | 479 | 479 |
Other [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Other assets, net | $2 | $2 |
Other_Assets_Additional_Inform
Other Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2013 | Jun. 30, 2014 | Sep. 30, 2006 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Sep. 30, 2010 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Maximum [Member] | Maximum [Member] | CeloNova BioSciences, Inc. [Member] | ThermopeutiX, Inc. [Member] | ThermopeutiX, Inc. [Member] | ViaCyte, Inc. [Member] | ViaCyte, Inc. [Member] | ViaCyte, Inc. [Member] | ViaCyte, Inc. [Member] | Investment In Vessix Vascular, Inc. [Member] | Investment In Vessix Vascular, Inc. [Member] | Investment In Vessix Vascular, Inc. [Member] | Investment In Vessix Vascular, Inc. [Member] | Investment In Vessix Vascular, Inc. [Member] | Investment In Vessix Vascular, Inc. [Member] | ||||
Maximum [Member] | Maximum [Member] | Maximum [Member] | Clinical milestone [Member] | Sales milestone [Member] | Maximum [Member] | |||||||||||||
Schedule of Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company's ownership percentage | ' | ' | ' | ' | ' | 2.00% | ' | 20.00% | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' |
Impairment loss on investment | ' | ' | ' | ' | ' | ' | $1,200,000 | ' | $100,000 | $5,300,000 | $4,700,000 | ' | ' | $2,500,000 | $2,400,000 | ' | ' | ' |
Cost method of investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on sale of investment | ' | 835,000 | 1,460,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | ' | ' | ' | ' | ' |
Milestone payment to be received | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | 700,000 | ' |
Potential proceeds on achievement of future milestones | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,400,000 |
Revenue recognized from activity with companies in which it had strategic investment | $0 | ' | $100,000 | $100,000 | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Amortization expense | $0.20 | $0.20 | $0.60 | $0.60 |
Intangible_Assets_Schedule_of_
Intangible Assets - Schedule of Intangible Assets (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Sep. 30, 2013 |
Intangible Assets [Line Items] | ' | ' |
Definite lived intangible assets, Gross Carrying Amount | $8,223 | $8,223 |
Definite lived intangible assets, Accumulated Amortization | -5,092 | -4,535 |
Definite lived intangible assets, Net | 3,131 | 3,688 |
Customer Lists [Member] | ' | ' |
Intangible Assets [Line Items] | ' | ' |
Definite lived intangible assets, Weighted Average Original Life (Years) | '9 years | '9 years |
Definite lived intangible assets, Gross Carrying Amount | 4,857 | 4,857 |
Definite lived intangible assets, Accumulated Amortization | -3,679 | -3,274 |
Definite lived intangible assets, Net | 1,178 | 1,583 |
Core Technology [Member] | ' | ' |
Intangible Assets [Line Items] | ' | ' |
Definite lived intangible assets, Weighted Average Original Life (Years) | '8 years | '8 years |
Definite lived intangible assets, Gross Carrying Amount | 530 | 530 |
Definite lived intangible assets, Accumulated Amortization | -458 | -409 |
Definite lived intangible assets, Net | 72 | 121 |
Patents and Other [Member] | ' | ' |
Intangible Assets [Line Items] | ' | ' |
Definite lived intangible assets, Weighted Average Original Life (Years) | '16 years 9 months 18 days | '16 years 9 months 18 days |
Definite lived intangible assets, Gross Carrying Amount | 2,256 | 2,256 |
Definite lived intangible assets, Accumulated Amortization | -955 | -852 |
Definite lived intangible assets, Net | 1,301 | 1,404 |
Definite-lived intangible assets [Member] | ' | ' |
Intangible Assets [Line Items] | ' | ' |
Definite lived intangible assets, Gross Carrying Amount | 7,643 | 7,643 |
Definite lived intangible assets, Accumulated Amortization | -5,092 | -4,535 |
Definite lived intangible assets, Net | 2,551 | 3,108 |
Trademarks [Member] | ' | ' |
Intangible Assets [Line Items] | ' | ' |
Definite lived intangible assets, Gross Carrying Amount | 580 | 580 |
Definite lived intangible assets, Accumulated Amortization | 0 | 0 |
Definite lived intangible assets, Net | $580 | $580 |
Intangible_Assets_Estimated_Am
Intangible Assets - Estimated Amortization Expenses (Detail) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Goodwill And Intangible Assets Disclosure [Abstract] | ' |
2014 | $186 |
2015 | 731 |
2016 | 594 |
2017 | 183 |
2018 | 137 |
2019 | $137 |
Goodwill_Additional_Informatio
Goodwill - Additional Information (Detail) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill [Line Items] | ' | ' |
Goodwill | $8,010 | $8,010 |
In Vitro Diagnostics [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill | $8,000 | $8,000 |
Stockbased_Compensation_Stockb
Stock-based Compensation - Stock-based Compensation Expenses (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expenses | $580 | $745 | $3,043 | $1,983 |
Product costs [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expenses | 4 | 7 | 13 | 17 |
Research and development [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expenses | 38 | 54 | 136 | 141 |
Selling, general and administrative [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expenses | $538 | $684 | $2,894 | $1,825 |
Stockbased_Compensation_Additi
Stock-based Compensation - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2000 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Feb. 28, 2014 | Jun. 30, 2014 | Sep. 30, 2000 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Former Chairman of the Board [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Fiscal 2014 (2014 - 2016) [Member] | Fiscal 2013 (2013 - 2015) [Member] | Fiscal 2012 (2012 - 2014) [Member] | Fiscal 2011 (2011 - 2013) [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Deferred Stock Units (DSUs) [Member] | Restricted Stock Units (RSUs) and Deferred Stock Units (DSUs) [Member] | Restricted Stock Units (RSUs) and Deferred Stock Units (DSUs) [Member] | Restricted Stock Units (RSUs) and Deferred Stock Units (DSUs) [Member] | Restricted Stock Units (RSUs) and Deferred Stock Units (DSUs) [Member] | Employee [Member] | Employee [Member] | Employee [Member] | Board Of Director [Member] | Board Of Director [Member] | Board Of Director [Member] | ||||||
Maximum [Member] | Fiscal 2014 (2014 - 2016) [Member] | Fiscal 2013 (2013 - 2015) [Member] | Fiscal 2012 (2012 - 2014) [Member] | 2009 Equity Incentive Plan [Member] | 2009 Equity Incentive Plan [Member] | Maximum [Member] | Maximum [Member] | Nonqualified Stock Options [Member] | Nonqualified Stock Options [Member] | Nonqualified Stock Options [Member] | Nonqualified Stock Options [Member] | Nonqualified Stock Options [Member] | Nonqualified Stock Options [Member] | |||||||||||||||||||||||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||||||||||||||||||||||||||||||
Stock Based Compensation Activity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation costs related to non-vested awards | ' | $3,200,000 | ' | $3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period for recognition of compensation costs related to non-vested awards | ' | ' | ' | '1 year 7 months 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance Share Awards Fully Expensed | ' | 1,100,000 | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average per share fair value of stock options | ' | $8.69 | $0 | $8.72 | $8.69 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend yield | ' | 0.00% | ' | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of non-qualified stock options vesting on each of the anniversary dates of the grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | 100.00% | ' | ' |
Vesting Terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Non-qualified stock options granted to the Companybs employees generally become exercisable with respect to 25% of the shares on each of the first four anniversaries following the grant date | ' | ' | 'Non-qualified stock options granted to the Companybs non-employee directors vest on a prorated basis within the one-year period following the grant date | ' | ' |
Stock option expiration term upon expiration of employment or service | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | '10 years | ' | '7 years | '10 years |
Total pre-tax intrinsic value of options exercised | ' | 200,000 | ' | 1,300,000 | ' | ' | ' | ' | ' | 100,000 | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option related expense | ' | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock expense | ' | ' | ' | 200,000 | ' | 200,000 | ' | ' | 100,000 | 100,000 | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance period start year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2014 | '2013 | '2012 | '2011 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance period end year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2016 | '2015 | '2014 | '2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance Shares, time period | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance share awards, estimated vesting percentage | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | 200.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 122,053 | 137,066 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expense recognized related to Performance Shares | ' | 200,000 | 300,000 | 700,000 | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of performance shares for grants awarded | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 900,000 | 900,000 | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock authorized, shares | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual compensation withheld | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual compensation withheld, maximum limit | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee contributions | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | 100,000 | 100,000 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock compensation expenses recognized | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | 100,000 | 100,000 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stock units awarded | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,834 | 24,834 | 10,952 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stock units forfeited | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,417 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of deferred stock units issued value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expenses | ' | $580,000 | $745,000 | $3,043,000 | $1,983,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $200,000 | $200,000 | ' | ' | ' | $100,000 | $400,000 | $100,000 | $100,000 | ' | ' | ' | ' | ' | ' |
Vesting period Description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The RSU awards were modified in the second quarter of fiscal 2014 to vest pro-rata over a 12-month service period. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockbased_Compensation_Assump
Stock-based Compensation - Assumptions Used in Stock Option Plans (Detail) | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Risk-free interest rates | 1.60% | 1.20% | 0.60% |
Expected life (years) | '4 years 9 months 18 days | '4 years 7 months 6 days | '4 years 9 months 18 days |
Expected volatility | 43.90% | 44.50% | 49.20% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Stockbased_Compensation_Schedu
Stock-based Compensation - Schedule of Fair Value at the Date of Grant (Detail) | 9 Months Ended |
Jun. 30, 2014 | |
Fiscal 2012 - 2014 [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Minimum Shares | 12,499 |
Target Shares | 62,497 |
Maximum Shares | 124,994 |
Fiscal 2013 - 2015 [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Minimum Shares | 8,551 |
Target Shares | 42,753 |
Maximum Shares | 85,506 |
Fiscal 2014 - 2016 [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Minimum Shares | 7,861 |
Target Shares | 39,303 |
Maximum Shares | 78,606 |
Restructuring_Charges_Addition
Restructuring Charges - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 |
Restructuring And Related Activities [Abstract] | ' | ' | ' | ' | ' |
Restructuring charges | $0 | $0 | $0 | $0 | ' |
Percentage of eliminated work force | ' | ' | ' | ' | 6.00% |
Pre-Tax Restructuring Charges | ' | ' | ' | ' | $0.50 |
Restructuring_Charges_Restruct
Restructuring Charges - Restructuring Accrual Activities (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Restructuring Cost and Reserve [Line Items] | ' |
Beginning Balance | $416 |
Cash payments | -414 |
Ending Balance | 2 |
Employee Severance and Benefits [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Beginning Balance | 399 |
Cash payments | -399 |
Ending Balance | 0 |
Facility-Related Costs [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Beginning Balance | 17 |
Cash payments | -15 |
Ending Balance | $2 |
Revolving_Credit_Facility_Addi
Revolving Credit Facility - Additional Information (Detail) (USD $) | 0 Months Ended | |
Nov. 04, 2013 | Jun. 30, 2014 | |
Line of Credit Facility [Line Items] | ' | ' |
Credit facility initiation date | 4-Nov-13 | ' |
Revolving credit facility amount | $20,000,000 | ' |
Credit facility fee percentage | 0.20% | ' |
Line of Credit Facility, Expiration Period | '3 years | ' |
Debt Outstanding | ' | $0 |
Minimum [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Credit facility interest rate | 1.38% | ' |
Maximum [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Credit facility interest rate | 2.00% | ' |
Income_Per_Share_Data_Componen
Income Per Share Data - Components of Basic and Diluted Income Per Share Computation (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income from continuing operations available to common shareholders | $3,674 | $3,178 | $9,763 | $10,846 |
Basic weighted average shares outstanding | 13,585 | 14,413 | 13,639 | 14,563 |
Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units and performance shares | 228 | 326 | 252 | 260 |
Diluted weighted average shares outstanding | 13,813 | 14,739 | 13,891 | 14,823 |
Income_Per_Share_Data_Addition
Income Per Share Data - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Weighted average diluted shares outstanding excluded outstanding stock options | 600,000 | 300,000 | 400,000 | 500,000 |
Common stock repurchased, Shares | ' | ' | 485,577 | ' |
Common stock repurchased | ' | ' | $11.50 | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | |
Payment | |||||
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' |
Income tax provisions associated with income from continuing operations | $1,729,000 | $1,122,000 | $4,407,000 | $3,916,000 | ' |
Effective tax rates | 32.00% | 26.10% | 31.10% | 26.50% | ' |
U.S. federal statutory tax rate | 35.00% | 35.00% | 35.00% | 35.00% | ' |
Permanent tax and discrete tax benefits | 100,000 | 200,000 | 300,000 | 800,000 | ' |
Federal R&D tax credits | ' | ' | ' | 400,000 | ' |
Number of Vessix contingent consideration payments | ' | ' | 2 | ' | ' |
Gain on contingent consideration payments | ' | ' | 700,000 | ' | ' |
Gain on sale of Vessix, OctoPlus N.V | ' | ' | ' | 1,300,000 | ' |
Securities in available-for-sale investment | ' | ' | 100,000 | 200,000 | ' |
Income tax expense from discontinued operations | ' | 183,000 | ' | 516,000 | ' |
Effective tax rate applied to discontinued operations | 34.80% | 134.60% | 34.80% | 44.80% | ' |
Income tax benefit from discontinued operations | -41,000 | 183,000 | -41,000 | 516,000 | ' |
Unrecognized tax benefits including interest and penalties | 900,000 | ' | 900,000 | ' | 1,000,000 |
Liability for unrecognized tax benefits to change significantly in the next 12 months | 0 | ' | 0 | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' |
Income tax benefit from discontinued operations | ($100,000) | ' | ($100,000) | ' | ' |
Amounts_Reclassified_Out_of_Ac1
Amounts Reclassified Out of Accumulated Other Comprehensive Income - Additional Information (Detail) (Accumulated Other Comprehensive Income Pre-Tax [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Accumulated Other Comprehensive Income Pre-Tax [Member] | ' | ' | ' | ' |
Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Amounts reclassified out of AOCI pre-tax basis | $0 | $0 | $0.10 | $0.20 |
Operating_Segments_Additional_
Operating Segments - Additional Information (Detail) | 9 Months Ended |
Jun. 30, 2014 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of operating segments | 2 |
Operating_Segments_Segment_Rev
Operating Segments - Segment Revenue, Operating Income and Depreciation and Amortization (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenue | $14,616 | $14,289 | $42,103 | $41,835 |
Operating income | 5,333 | 4,238 | 13,142 | 13,244 |
Depreciation and amortization | 674 | 728 | 2,054 | 2,174 |
Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income | 6,829 | 6,138 | 18,743 | 18,781 |
Operating Segments [Member] | Medical Device [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenue | 10,821 | 10,591 | 31,852 | 30,857 |
Operating income | 5,855 | 5,223 | 16,466 | 15,848 |
Depreciation and amortization | 281 | 319 | 862 | 947 |
Operating Segments [Member] | In Vitro Diagnostics [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenue | 3,795 | 3,698 | 10,251 | 10,978 |
Operating income | 974 | 915 | 2,277 | 2,933 |
Depreciation and amortization | 214 | 216 | 641 | 649 |
Corporate [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income | -1,496 | -1,900 | -5,601 | -5,537 |
Depreciation and amortization | $179 | $193 | $551 | $578 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||
Jun. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | |
USD ($) | USD ($) | USD ($) | EUR (€) | Patents [Member] | SRI Litigation [Member] | SRI Litigation [Member] | Prior to Fiscal 2013 [Member] | |
USD ($) | USD ($) | USD ($) | ||||||
Commitments and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Additional litigation expense within discontinued operations | ' | ' | ' | ' | ' | $100,000 | $100,000 | ' |
Unreimbursed legal expenses | 1,300,000 | ' | ' | ' | ' | ' | ' | ' |
Payment received on unreimbursed legal expenses | ' | 1,000,000 | ' | ' | ' | ' | ' | ' |
Legal expenses | ' | ' | ' | ' | ' | ' | ' | 600,000 |
Additional shares of common stock to stockholders | ' | ' | 480,059 | 480,059 | ' | ' | ' | ' |
License agreement commencement date | ' | ' | '2006-03 | '2006-03 | ' | ' | ' | ' |
Annual minimum payments for licenses | ' | ' | 273,000 | 200,000 | ' | ' | ' | ' |
Exchange rate relating to license payment | ' | ' | $1.36 | ' | ' | ' | ' | ' |
Future minimum payments associated with license | ' | ' | 3,600,000 | ' | ' | ' | ' | ' |
Patent expiry date | ' | ' | ' | ' | '2027-09 | ' | ' | ' |
Additional maximum amount payable on successful achievement of specified milestones to sellers of PR Pharma | ' | ' | 2,500,000 | ' | ' | ' | ' | ' |
Indemnification period | ' | ' | '5 years | '5 years | ' | ' | ' | ' |
Accrual for contingency | ' | ' | $0 | ' | ' | ' | ' | ' |