Surmodics (SRDX) 10-Q 6 Aug 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Trading Symbol	SRDX
Entity Registrant Name	SURMODICS INC
Entity Central Index Key	924,717
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		12,932,028

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Current Assets:
Cash and cash equivalents	$ 54,108	$ 43,511
Available-for-sale securities		3,040
Accounts receivable, net of allowance for doubtful accounts of $10 and $42 as of June 30, 2015 and September 30, 2014, respectively	5,995	4,751
Inventories	3,464	2,817
Deferred tax assets	470	394
Income tax receivable	649	59
Prepaids and other	624	692
Current assets of discontinued operations		16
Total Current Assets	65,310	55,280
Property and equipment, net	12,102	13,133
Available-for-sale securities		16,823
Deferred tax assets	6,197	6,718
Intangible assets, net	2,389	2,946
Goodwill	8,010	8,010
Other assets, net	1,979	1,979
Total Assets	95,987	104,889
Current Liabilities:
Accounts payable	958	1,028
Accrued liabilities:
Compensation	2,135	2,061
Accrued other	1,112	881
Deferred revenue	49	52
Current liabilities of discontinued operations		45
Total Current Liabilities	4,254	4,067
Deferred revenue, less current portion	227	226
Other long-term liabilities	1,778	1,845
Total Liabilities	$ 6,259	$ 6,138
Commitments and Contingencies (Note 16)
Stockholders' Equity:
Series A Preferred stock- $.05 par value, 450,000 shares authorized; no shares issued and outstanding
Common stock- $.05 par value, 45,000,000 shares authorized; 13,022,396 and 13,606,545 shares issued and outstanding, respectively	$ 651	$ 680
Additional paid-in capital	2,276	2,662
Accumulated other comprehensive (loss) income	(3)	1,528
Retained earnings	86,804	93,881
Total Stockholders' Equity	89,728	98,751
Total Liabilities and Stockholders' Equity	$ 95,987	$ 104,889

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 10	$ 42
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	13,022,396	13,606,545
Common stock, shares outstanding	13,022,396	13,606,545

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenue:
Royalties and license fees	$ 7,908	$ 7,385	$ 22,566	$ 22,179
Product sales	6,583	6,067	18,082	16,632
Research and development	1,423	1,164	3,887	3,292
Total revenue	15,914	14,616	44,535	42,103
Operating costs and expenses:
Product costs	2,174	2,037	6,031	5,737
Research and development	3,860	3,655	11,839	11,488
Selling, general and administrative	4,023	3,591	11,841	11,736
Total operating costs and expenses	10,057	9,283	29,711	28,961
Operating income	5,857	5,333	14,824	13,142
Other income:
Investment income, net	36	42	149	194
Gain on sales of strategic investments		28		709
Other (loss) income, net	(40)		496	125
Other (loss) income, net	(4)	70	645	1,028
Income from continuing operations before income taxes	5,853	5,403	15,469	14,170
Income tax provision	(1,929)	(1,729)	(4,879)	(4,407)
Income from continuing operations	3,924	3,674	10,590	9,763
Loss from discontinued operations, net of income taxes		(76)		(76)
Net income	$ 3,924	$ 3,598	$ 10,590	$ 9,687
Basic net income (loss) per share:
Continuing operations	$ 0.30	$ 0.27	$ 0.81	$ 0.72
Discontinued operations	0	(0.01)	0	(0.01)
Net income	0.30	0.26	0.81	0.71
Diluted net income per share
Continuing operations	0.30	0.27	0.79	0.70
Discontinued operations	0	(0.01)	0	(0.01)
Net income	$ 0.30	$ 0.26	$ 0.79	$ 0.70
Weighted average number of shares outstanding:
Basic	13,002	13,585	13,057	13,639
Diluted	13,279	13,813	13,324	13,891

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 3,924	$ 3,598	$ 10,590	$ 9,687
Other comprehensive income (loss), net of tax:
Unrealized holding gains (losses) on available-for-sale securities arising during the period	(59)	46	(1,216)	62
Reclassification adjustment for realized gains included in net income	26		(315)	(84)
Other comprehensive income (loss)	(33)	46	(1,531)	(22)
Comprehensive income	$ 3,891	$ 3,644	$ 9,059	$ 9,665

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating Activities:
Net income	$ 10,590	$ 9,687
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations:
Loss from discontinued operations		76
Depreciation and amortization	2,083	2,054
Stock-based compensation	1,841	3,043
Deferred taxes	450	(98)
Gain on sales of available-for-sale securities and strategic investments	(496)	(835)
Excess tax benefit from stock-based compensation plans	(436)	(452)
Other	(42)
Change in operating assets and liabilities, excluding the impact from discontinued operations:
Accounts receivable	(1,244)	156
Inventories	(647)	428
Prepaids and other	66	(114)
Accounts payable and accrued liabilities	132	(919)
Income taxes	(221)	(560)
Net cash provided by operating activities from continuing operations	12,076	12,466
Investing Activities:
Purchases of property and equipment	(396)	(1,165)
Cash proceeds from sales of property and equipment	42
Purchases of available-for-sale securities	(3,377)	(132,648)
Sales and maturities of available-for-sale securities	22,199	157,970
Cash received from sales of strategic investments	21	708
Cash transferred to discontinued operations	(45)	(239)
Net cash provided by investing activities from continuing operations	18,444	24,626
Financing Activities:
Excess tax benefit from stock-based compensation plans	436	452
Issuance of common stock	451	348
Repurchase of common stock	(20,000)	(12,544)
Purchase of common stock to pay employee taxes	(810)	(1,114)
Net cash used in financing activities from continuing operations	(19,923)	(12,858)
Net cash provided by continuing operations	10,597	24,234
Discontinued Operations:
Net cash used in operating activities	(45)	(239)
Net cash provided by financing activities	45	239
Net cash provided by discontinued operations	0	0
Net change in cash and cash equivalents	10,597	24,234
Cash and Cash Equivalents:
Beginning of period	43,511	15,495
End of period	54,108	39,729
Supplemental Information:
Cash paid for income taxes	4,651	4,860
Noncash transactions - acquisition of property and equipment on account	113	224
Noncash transactions - issuance of performance shares, restricted and deferred stock units	$ 2,250	$ 3,007

Basis of Presentation

Basis of Presentation	9 Months Ended
	Jun. 30, 2015
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 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 net income in the period in which the change in estimate is identified. The results of operations for the three and nine months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the entire 2015 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, 2014, and footnotes thereto included in the Company’s Form 10-K as filed with the SEC on December 5, 2014.

Key Accounting Policies

Key Accounting Policies	9 Months Ended
	Jun. 30, 2015
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 Royalties and license fees. 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. Research and development. Arrangements with multiple deliverables. (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 by SurModics, 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 May 2014, the Financial Accounting Standards Board (“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, the FASB has provided guidance for transactions that were not previously addressed comprehensively, and improved guidance for multiple-element arrangements. The original pronouncement was effective for the Company beginning in fiscal 2018 (October 1, 2017), and early adoption was not permitted. On July 9, 2015 the FASB approved a one-year deferral of the effective date for the revenue recognition standard. As a result of the one-year deferral, the revenue recognition standard is effective for the Company beginning in fiscal 2019 (October 1, 2018), however, the Company may adopt this guidance as of the original effective date. This guidance can be adopted by the Company either retrospectively (October 1, 2016) or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the impact that the adoption of 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, 2015
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. There was no condensed consolidated statement of income impact associated with discontinued operations for the three and nine months ended June 30, 2015. 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. Total assets and liabilities of discontinued operations were zero as of June 30, 2015 and insignificant as of September 30, 2014.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Jun. 30, 2015
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. The Company’s Level 1 assets consisted of its investment in Intersect ENT, Inc. (“Intersect ENT”) and certain U.S. government and government agency obligations. The fair market value of the Intersect ENT investment was based on the quoted price of Intersect ENT shares as traded on the NASDAQ Global Market Stock Exchange. This investment was sold in the second quarter of fiscal 2015 generating a realized gain of $0.5 million. The fair market value of certain U.S. government and government agency obligations were based on observable prices in highly active treasury and agency security markets for identical securities. 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 for the quarter ended June 30, 2015 consisted of money market funds and commercial paper instruments. For the year ended September 30, 2014 the Company’s Level 2 assets consisted of money market funds, commercial paper instruments, certain U.S. Treasury securities, corporate bonds, municipal bonds, certain 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. government 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, 2015 and 2014 or September 30, 2014 and there was no Level 3 activity during the first nine months of fiscal 2015 or fiscal 2014. In valuing assets and liabilities, the Company is required to maximize the use of quoted market prices and minimize the use of unobservable inputs. 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. During the quarter ended June 30, 2015, the Company liquidated its investment portfolio to support corporate initiatives. As a result, the ending balance of available-for-sale investments as of June 30, 2015 was zero. The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2015: (Dollars in thousands) Quoted Prices in Significant (Level 2) Significant (Level 3) Total Fair Value as of June 30, 2015 Assets: Cash equivalents $ — $ 50,075 $ — $ 50,075 Total assets measured at fair value $ — $ 50,075 $ — $ 50,075 The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2014: (Dollars in thousands) Quoted Prices in Significant (Level 2) Significant (Level 3) Total Fair Value as of September 30, 2014 Assets: Cash equivalents $ — $ 40,100 $ — $ 40,100 Available-for-sale equity securities 1,550 — — 1,550 Available-for-sale debt securities: U.S. government and government agency obligations — 7,394 — 7,394 Mortgage-backed securities — 5,545 — 5,545 Municipal bonds — 1,175 — 1,175 Asset-backed securities — 2,369 — 2,369 Corporate bonds — 1,830 — 1,830 Total assets measured at fair value $ 1,550 $ 58,413 $ — $ 59,963 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 1 or Level 2 and include various types of debt securities. These securities are valued based on quoted vendor prices in highly active or active markets underlying the securities.

Investments

Investments	9 Months Ended
	Jun. 30, 2015
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 September 30, 2014. 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. 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. Realized gains and losses from the sales of debt securities, which are included in other income, are determined using the specific identification method. During the quarter ended June 30, 2015 the Company liquidated its investment portfolio to support corporate initiatives, as a result the ending balance of available-for-sale investments as of June 30, 2015 was zero. The amortized cost, unrealized holding gains and losses, and fair value of available-for-sale securities as of September 30, 2014 were as follows: September 30, 2014 (Dollars in thousands) Amortized Unrealized Unrealized Fair Value U.S. government and government agency obligations $ 7,397 $ 12 $ (15 ) $ 7,394 Mortgage-backed securities 5,576 43 (74 ) 5,545 Municipal bonds 1,173 5 (3 ) 1,175 Asset-backed securities 2,370 3 (4 ) 2,369 Corporate bonds 1,829 6 (5 ) 1,830 Equity securities 2 1,548 — 1,550 Total $ 18,347 $ 1,617 $ (101 ) $ 19,863 As of September 30, 2014, the Company concluded that the unrealized losses related to the available-for-sale securities shown above were not other-than-temporary as the Company did not have the intent to sell, nor was it more likely than not that the Company would be required to sell, before recovery of their amortized cost. The following table summarizes sales of available-for-sale debt securities: Three Months Ended Nine Months Ended June 30, June 30, (Dollars in thousands) 2015 2014 2015 2014 Proceeds from sales $ 19,071 $ 65,455 $ 21,722 $ 157,970 Gross realized gains $ 26 $ — $ 26 $ 126 Gross realized losses $ (65 ) $ — $ (73 ) $ (1 )

Inventories

Inventories	9 Months Ended
	Jun. 30, 2015
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, with cost of product sales determined on a first-in, first-out basis. Inventories consisted of the following components: June 30, September 30, (Dollars in thousands) 2015 2014 Raw materials $ 1,328 $ 1,056 Finished products 2,136 1,761 Total $ 3,464 $ 2,817

Other Assets

Other Assets	9 Months Ended
	Jun. 30, 2015
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) 2015 2014 CeloNova BioSciences, Inc. $ 1,500 $ 1,500 ViaCyte, Inc. 479 479 Other assets, net $ 1,979 $ 1,979 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 $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 then 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 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.

Intangible Assets

Intangible Assets	9 Months Ended
	Jun. 30, 2015
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, 2015 and 2014, the Company recorded amortization expense of $0.2 million for each period. For the nine months ended June 30, 2015 and 2014, the Company recorded amortization expense of $0.6 million for each period. Intangible assets consisted of the following: June 30, 2015 (Dollars in thousands) Weighted Average Gross Carrying Accumulated Net Definite-lived intangible assets: Customer lists 9.0 $ 4,857 $ (4,218 ) $ 639 Core technology 8.0 530 (524 ) 6 Patents and other 16.8 2,256 (1,092 ) 1,164 Subtotal 7,643 (5,834 ) 1,809 Unamortized intangible assets: Trademarks 580 — 580 Total $ 8,223 $ (5,834 ) $ 2,389 September 30, 2014 (Dollars in thousands) Weighted Average Gross Carrying Accumulated Net Definite-lived intangible assets: Customer lists 9.0 $ 4,857 $ (3,813 ) $ 1,044 Core technology 8.0 530 (475 ) 55 Patents and other 16.8 2,256 (989 ) 1,267 Subtotal 7,643 (5,277 ) 2,366 Unamortized intangible assets: Trademarks 580 — 580 Total $ 8,223 $ (5,277 ) $ 2,946 Based on the intangible assets in service as of June 30, 2015, estimated amortization expense for the remainder of fiscal 2015 and each of the next five fiscal years is as follows (Dollars in thousands) Remainder of 2015 $ 175 2016 594 2017 183 2018 137 2019 137 2020 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, 2015
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 business 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 the carrying amount of goodwill may be impaired. The $8.0 million of goodwill at June 30, 2015 and September 30, 2014 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 2014 annual impairment test, and there have been no events or circumstances that have occurred in the first nine months of fiscal 2015 associated with the In Vitro Diagnostics reporting unit to indicate that the goodwill has been impaired.

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based 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, restricted stock units and deferred 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) 2015 2014 2015 2014 Product costs $ 5 $ 4 $ 18 $ 13 Research and development 56 38 171 136 Selling, general and administrative 568 538 1,652 2,894 Total $ 629 $ 580 $ 1,841 $ 3,043 As of June 30, 2015, approximately $2.4 million of total unrecognized compensation costs related to non-vested awards is expected to be recognized over a weighted average period of approximately 2.1 years. The unrecognized compensation costs above include $0.4 million, remaining to be expensed over the life of the awards, based on payout levels associated with performance share awards that are currently anticipated to be fully expensed because the performance conditions are expected to exceed minimum threshold 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, 2015 and 2014 were $8.85 and $8.69, respectively. The weighted average per share fair values of stock options granted during the nine months ended June 30, 2015 and 2014 were $7.25 and $8.72, respectively. The assumptions used as inputs in the model were as follows: Three Months Ended Nine Months Ended June 30, June 30, 2015 2014 2015 2014 Risk-free interest rates 1.2 % 1.6 % 1.4 % 1.2 % Expected life (years) 4.4 4.8 4.5 4.6 Expected volatility 38.5 % 43.9 % 43.2 % 44.5 % Dividend yield 0.0 % 0.0 % 0.0 % 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 was determined based on the Company’s experience. Expected volatility was based on the Company’s stock price movement over a period approximating the expected term. Based on management’s judgment, dividend rates were expected to be zero for the expected life of the options. The Company also estimates forfeitures of options granted, which were 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. With respect to members of our Board, non-qualified stock options generally become exercisable on a pro-rata basis within the one-year period following the date of grant. With respect to our employees, non-qualified stock options generally become exercisable with respect to 25% of the shares on each of the first four anniversaries following the grant date. The total pre-tax intrinsic value of options exercised during the three months and nine months ended June 30, 2015 was $0.3 million and $1.7 million, respectively. 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 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 three and 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 expense has been recognized for the estimated fair value of the common shares and is being recognized over the vesting term. The stock-based compensation table above includes Restricted Stock expenses recognized related to these awards, which totaled $0.1 million for the three months ended June 30, 2015, and $0.2 million for the nine months ended June 30, 2015 and totaled less than $0.1 million and $0.2 million, respectively, for the three months and nine months ended June 30, 2014. 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 and executives, covering the issuance of common stock (“Performance Shares”). Performance Shares vest upon the achievement of all or a portion of certain performance objectives (which may include financial or project objectives), which must be achieved during the performance period. The Organization and Compensation Committee of the Board of Directors (the “Committee”) approves the performance objectives used for our executive compensation programs, which objectives were cumulative earnings per share and cumulative revenue for the three-year performance periods for fiscal 2012 (2012 – 2014), fiscal 2013 (2013 – 2015) and fiscal 2014 (2014 – 2016), and are cumulative revenue and cumulative EBITDA for fiscal 2015 (2015 – 2017). 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) of the target number of shares. 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 2012 awards were finalized in the three months ended December 31, 2014 and resulted in the issuance of 98,093 shares (maximum was 124,994 shares) based on the performance objectives and actual results. The compensation cost related to the number of shares to be granted under each performance period is fixed on the grant date. Compensation expense was recognized in each period based on management’s best estimate of the achievement level of actual and forecasted results, as appropriate, compared with the specified performance objectives for Performance Shares. For the three and nine months ended June 30, 2015, the Company recognized expense of $0.2 million and $0.5 million, respectively. For the three and nine months ended June 30, 2014, the Company recognized expense of $0.2 million and $0.7 million, respectively. The stock-based compensation table above includes the Performance Shares expense. The fair values of the Performance Shares, at target, were $0.9 million in each fiscal year for grants awarded in fiscal 2015, 2014 and 2013. The aggregate number of shares that could be awarded to our executives if the minimum, target and maximum performance goals are met, based on the fair value at the date of grant is as follows: Performance Period Minimum Shares Target Shares Maximum Shares Fiscal 2013 – 2015 8,551 42,753 85,506 Fiscal 2014 – 2016 7,861 39,303 78,606 Fiscal 2015 – 2017 8,440 42,199 84,398 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, 2015 there was $0.1 million of employee contributions and as of June 30, 2014 there was less than $0.1 million of employee contributions 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, 2015 and 2014 totaled less than $0.1 million in each period. The stock-based compensation table above includes the Stock Purchase Plan expenses. Restricted Stock and Deferred Stock Units In the nine months ended June 30, 2015, the Company awarded 10,678 restricted stock units (“RSU”), and has cumulatively awarded 35,512 RSUs to non-employee directors since fiscal 2013 under the 2009 Equity Incentive Plan. There were no forfeitures or issuances in the three months ended June 30, 2015 and there were forfeitures of 3,068 shares and issuances of 7,681 shares in the nine months ended June 30, 2015. The Company realized forfeitures of 3,417 RSU’s and issuances of 2,183 shares of common stock to departed non-employee directors in fiscal 2014. The RSU awards vest on a pro-rata basis over a one-year period. RSU awards are not considered as issued or outstanding common stock of the Company until shares are issued to a non-employee director upon retirement from the Board of Directors. The estimated fair value of the RSU awards was determined based on the closing market price of SurModics’ common stock on the date of grant. Compensation expense has been recognized for the estimated fair value of the common shares and is being expensed over the vesting term. The stock-based compensation table above includes RSU expenses recognized related to these awards, which totaled less than $0.1 million and $0.2 million in the three and nine months ended June 30, 2015, respectively, and $0.1 million and $0.3 million in the three and nine months ended June 30, 2014, respectively. 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 an additional expense of $0.2 million in the three and nine months ended June 30, 2014. Directors can also elect to receive their cash retainers for services to the Board of Directors and its committees in the form of fully vested deferred stock units (“DSU”). Certain directors elected this option beginning on January 1, 2013, with deferral elections made on an annual basis, which has resulted in 1,547 and 4,433 DSUs issued with a total fair value of less than $0.1 million in both the three and nine months ended June 30, 2015. The stock-based compensation table above includes DSU expenses recognized related to these awards, which totaled less than $0.1 million in both the three months and nine months ended June 30, 2015 as well as the three and nine months ended June 30, 2014.

Revolving Credit Facility

Revolving Credit Facility	9 Months Ended
	Jun. 30, 2015
Text Block [Abstract]
Revolving Credit Facility	11. 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. On November 5, 2014, the credit facility was amended and modified to increase the size of stock repurchases that may be effected by the Company up to $30.0 million without the consent of the lender. 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, 2015, the Company has no debt outstanding and was in compliance with all financial covenants.

Net Income Per Share Data

Net Income Per Share Data	9 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Net Income Per Share Data	12. Net Income Per Share Data Basic net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common and common equivalent shares outstanding during the period. The Company’s potentially dilutive common shares are those that result from dilutive common stock options, non-vested stock relating to restricted stock awards, restricted stock units, deferred stock units and performance shares. The following table sets forth the denominator for the computation of basic and diluted net income per share (in thousands): Three Months Ended Nine Months Ended June 30, June 30, 2015 2014 2015 2014 Net income from continuing operations available to common shareholders $ 3,924 $ 3,674 $ 10,590 $ 9,763 Basic weighted average shares outstanding 13,002 13,585 13,057 13,639 Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units, deferred stock units and performance shares 277 228 267 252 Diluted weighted average shares outstanding 13,279 13,813 13,324 13,891 The calculation of weighted average diluted shares outstanding excludes outstanding stock options associated with the right to purchase 0.2 million and 0.6 million shares of common stock for the three months ended June 30, 2015 and 2014, respectively, and 0.3 million and 0.4 million for the nine months ended June 30, 2015 and 2014, respectively, as their inclusion would have had an antidilutive effect on diluted net income per share. On November 5, 2014, the Company’s Board of Directors authorized it to repurchase up to $30.0 million of the Company’s outstanding common stock in open-market purchases, privately negotiated transactions, block trades, accelerated share repurchase transactions, tender offers or by any combination of such methods. The authorization has no fixed expiration date. As part of the accelerated share repurchase (“ASR”) program discussed below, the Company repurchased 758,143 shares of common stock on November 11, 2014 and 89,721 shares of common stock on July 8, 2015, the date that the ASR program was completed. As adjusted for the final ASR program settlement, $10.0 million remained available for future repurchases under the current authorization. On November 11, 2014, the Company entered into an accelerated share repurchase program with Wells Fargo Bank, National Association. In connection with this agreement, the Company made a $20.0 million payment to the bank and immediately received an initial delivery of 758,143 shares of its common stock with a fair value of $16.0 million as of the purchase date. Effective as of the date of the initial share purchase, the transaction was accounted for as a share retirement, resulting in a reduction of common stock of less than $0.1 million, additional paid-in capital of $2.5 million and retained earnings of $13.5 million. The remaining $4.0 million of the Company’s payment was also reported as a reduction in retained earnings. The specific number of shares that the Company ultimately purchased under the ASR agreement was based on the volume weighted average price (“VWAP”) of the Company’s common stock during the purchase period, less an agreed upon discount. In the aggregate, the Company purchased 847,864 shares under the ASR program for an average price of $23.59 per share. Based on the facts associated with the agreement, the forward contract is indexed to the Company’s common stock and meets the U.S. GAAP requirements to be classified as permanent equity as of June 30, 2015. 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. This entire authorized amount under the then existing authorization was used as of June 30, 2014.

Income Taxes

Income Taxes	9 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	13. Income Taxes The Company recorded income tax provisions associated with income from continuing operations of $1.9 million and $1.7 million for the three months ended June 30, 2015 and 2014, respectively, representing effective tax rates of 32.9% and 32.0%, respectively. The Company recorded income tax provisions associated with income from continuing operations of $4.9 million and $4.4 million for the nine months ended June 30, 2015 and 2014, respectively, representing effective tax rates of 31.5% and 31.1%, 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, 2015 and 2014 reflects the impact of state income taxes, permanent tax items such as valuation allowance releases associated with net gains from our strategic investments and our available-for-sale securities portfolio, discrete tax benefits and the Section 199 manufacturing deduction. Discrete tax benefits aggregated less than $0.1 million and $0.3 million for the three and nine months ended June 30, 2015, respectively, as well as the same respective periods ended June 30, 2014. The discrete tax items in the fiscal 2015 nine-month period includes a $0.2 million income tax benefit associated with the December 2014 signing of the Tax Increase Prevention Act of 2014 which retroactively reinstated the federal research and development income tax credit, which had previously expired in December 2013. The nine months ended June 30, 2015 income tax provision includes the impact of a $0.5 million gain from the sale of Intersect ENT with an offsetting reversal of a capital loss carryforward valuation allowance. The nine months ended June 30, 2014 income tax provision includes the impact of gains related to two Vessix Vascular, Inc. contingent consideration payments totaling $0.7 million and gains related to certain debt securities in our available-for-sale securities portfolio of $0.1 million. Each of these gains has had a tax expense recognized which has been fully offset by the reversal of capital loss carryforward valuation allowances. The Company did not have any discontinued operations activity in the three and nine months ended June 30, 2015. 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 total amount of unrecognized tax benefits, including interest and penalties that, if recognized, would affect the effective tax rate as of June 30, 2015 and September 30, 2014, respectively, are $1.0 million and $0.9 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. U.S. income tax returns for years prior to fiscal 2012 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 2004.

Amounts Reclassified Out of Acc

Amounts Reclassified Out of Accumulated Other Comprehensive Income	9 Months Ended
	Jun. 30, 2015
Equity [Abstract]
Amounts Reclassified Out of Accumulated Other Comprehensive Income	14. Amounts Reclassified Out of Accumulated Other Comprehensive Income Amounts reclassified out of accumulated other comprehensive income (“AOCI”) totaled less than $0.1 million and $0.5 million, respectively, on a pre-tax basis for the three and nine months ended June 30, 2015. There were no amounts reclassified out of AOCI for the three months ended June 30, 2014. The amounts reclassified out of AOCI totaled $0.1 million, on a pre-tax basis, for the nine months ended June 30, 2014. The amounts reclassified out of AOCI are associated with unrealized gains or losses 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 Segment Information

Operating Segment Information	9 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Operating Segment Information	15. Operating Segment Information The accounting standards for reporting information about operating segments define operating segments 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, 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) 2015 2014 2015 2014 Revenue: Medical Device $ 11,629 $ 10,821 $ 32,827 $ 31,852 In Vitro Diagnostics 4,285 3,795 11,708 10,251 Total revenue $ 15,914 $ 14,616 $ 44,535 $ 42,103 Operating income: Medical Device $ 6,295 $ 5,855 $ 16,507 $ 16,466 In Vitro Diagnostics 1,191 974 3,220 2,277 Total segment operating income 7,486 6,829 19,727 18,743 Corporate (1,629 ) (1,496 ) (4,903 ) (5,601 ) Total operating income $ 5,857 $ 5,333 $ 14,824 $ 13,142 Depreciation and amortization: Medical Device $ 288 $ 281 $ 852 $ 862 In Vitro Diagnostics 215 214 645 641 Corporate 191 179 586 551 Total depreciation and amortization $ 694 $ 674 $ 2,083 $ 2,054 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 may also include expenses, such as litigation, which are not specific to a segment and thus not allocated to the operating segments. Asset information by operating segment is not presented because the Company does not provide its chief operating decision maker assets by operating segment, as the data is not readily available.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	16. Commitments and Contingencies Litigation. During the second quarter of fiscal 2015, a customer notified the Company that it believes it overpaid approximately $5.7 million in hydrophilic coating royalties to the Company from January 2009 through September 2014. The customer also seeks interest on its alleged overpayments. In accordance with the underlying agreement between the Company and the customer, the Company has requested certain factual documentation from the customer related to the claim. The Company has not yet received adequate documentation from the customer to assess the customer’s claim. As of June 30, 2015, the Company has not recorded an accrual for this claim. Any potential loss is not estimable based on information available to the Company as of June 30, 2015 or subsequent to quarter end. InnoRx, Inc. InnoCore Technologies BV.

Key Accounting Policies (Polici

Key Accounting Policies (Policies)	9 Months Ended
	Jun. 30, 2015
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
Royalties and license fees	Royalties and license fees. 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.
Research and development	Research and development.
Arrangements with multiple deliverables	Arrangements with multiple deliverables. (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 by SurModics, 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 May 2014, the Financial Accounting Standards Board (“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, the FASB has provided guidance for transactions that were not previously addressed comprehensively, and improved guidance for multiple-element arrangements. The original pronouncement was effective for the Company beginning in fiscal 2018 (October 1, 2017), and early adoption was not permitted. On July 9, 2015 the FASB approved a one-year deferral of the effective date for the revenue recognition standard. As a result of the one-year deferral, the revenue recognition standard is effective for the Company beginning in fiscal 2019 (October 1, 2018), however, the Company may adopt this guidance as of the original effective date. This guidance can be adopted by the Company either retrospectively (October 1, 2016) or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the impact that the adoption of 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.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Jun. 30, 2015
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, 2015: (Dollars in thousands) Quoted Prices in Significant (Level 2) Significant (Level 3) Total Fair Value as of June 30, 2015 Assets: Cash equivalents $ — $ 50,075 $ — $ 50,075 Total assets measured at fair value $ — $ 50,075 $ — $ 50,075 The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2014: (Dollars in thousands) Quoted Prices in Significant (Level 2) Significant (Level 3) Total Fair Value as of September 30, 2014 Assets: Cash equivalents $ — $ 40,100 $ — $ 40,100 Available-for-sale equity securities 1,550 — — 1,550 Available-for-sale debt securities: U.S. government and government agency obligations — 7,394 — 7,394 Mortgage-backed securities — 5,545 — 5,545 Municipal bonds — 1,175 — 1,175 Asset-backed securities — 2,369 — 2,369 Corporate bonds — 1,830 — 1,830 Total assets measured at fair value $ 1,550 $ 58,413 $ — $ 59,963

Investments (Tables)

Investments (Tables)	9 Months Ended
	Jun. 30, 2015
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 September 30, 2014 were as follows: September 30, 2014 (Dollars in thousands) Amortized Unrealized Unrealized Fair Value U.S. government and government agency obligations $ 7,397 $ 12 $ (15 ) $ 7,394 Mortgage-backed securities 5,576 43 (74 ) 5,545 Municipal bonds 1,173 5 (3 ) 1,175 Asset-backed securities 2,370 3 (4 ) 2,369 Corporate bonds 1,829 6 (5 ) 1,830 Equity securities 2 1,548 — 1,550 Total $ 18,347 $ 1,617 $ (101 ) $ 19,863
Sales of Available-for-Sale Debt Securities	The following table summarizes sales of available-for-sale debt securities: Three Months Ended Nine Months Ended June 30, June 30, (Dollars in thousands) 2015 2014 2015 2014 Proceeds from sales $ 19,071 $ 65,455 $ 21,722 $ 157,970 Gross realized gains $ 26 $ — $ 26 $ 126 Gross realized losses $ (65 ) $ — $ (73 ) $ (1 )

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Jun. 30, 2015
Inventory Disclosure [Abstract]
Components of Inventories	Inventories consisted of the following components: June 30, September 30, (Dollars in thousands) 2015 2014 Raw materials $ 1,328 $ 1,056 Finished products 2,136 1,761 Total $ 3,464 $ 2,817

Other Assets (Tables)

Other Assets (Tables)	9 Months Ended
	Jun. 30, 2015
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) 2015 2014 CeloNova BioSciences, Inc. $ 1,500 $ 1,500 ViaCyte, Inc. 479 479 Other assets, net $ 1,979 $ 1,979

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible assets consisted of the following: June 30, 2015 (Dollars in thousands) Weighted Average Gross Carrying Accumulated Net Definite-lived intangible assets: Customer lists 9.0 $ 4,857 $ (4,218 ) $ 639 Core technology 8.0 530 (524 ) 6 Patents and other 16.8 2,256 (1,092 ) 1,164 Subtotal 7,643 (5,834 ) 1,809 Unamortized intangible assets: Trademarks 580 — 580 Total $ 8,223 $ (5,834 ) $ 2,389 September 30, 2014 (Dollars in thousands) Weighted Average Gross Carrying Accumulated Net Definite-lived intangible assets: Customer lists 9.0 $ 4,857 $ (3,813 ) $ 1,044 Core technology 8.0 530 (475 ) 55 Patents and other 16.8 2,256 (989 ) 1,267 Subtotal 7,643 (5,277 ) 2,366 Unamortized intangible assets: Trademarks 580 — 580 Total $ 8,223 $ (5,277 ) $ 2,946
Estimated Amortization Expense	Based on the intangible assets in service as of June 30, 2015, estimated amortization expense for the remainder of fiscal 2015 and each of the next five fiscal years is as follows (Dollars in thousands) Remainder of 2015 $ 175 2016 594 2017 183 2018 137 2019 137 2020 137

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based 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) 2015 2014 2015 2014 Product costs $ 5 $ 4 $ 18 $ 13 Research and development 56 38 171 136 Selling, general and administrative 568 538 1,652 2,894 Total $ 629 $ 580 $ 1,841 $ 3,043
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, 2015 2014 2015 2014 Risk-free interest rates 1.2 % 1.6 % 1.4 % 1.2 % Expected life (years) 4.4 4.8 4.5 4.6 Expected volatility 38.5 % 43.9 % 43.2 % 44.5 % Dividend yield 0.0 % 0.0 % 0.0 % 0.0 %
Schedule of Fair Value at the Date of Grant	The aggregate number of shares that could be awarded to our executives if the minimum, target and maximum performance goals are met, based on the fair value at the date of grant is as follows: Performance Period Minimum Shares Target Shares Maximum Shares Fiscal 2013 – 2015 8,551 42,753 85,506 Fiscal 2014 – 2016 7,861 39,303 78,606 Fiscal 2015 – 2017 8,440 42,199 84,398

Net Income Per Share Data (Tabl

Net Income Per Share Data (Tables)	9 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Denominator for Computation of Basic and Diluted Net Income Per Share	The following table sets forth the denominator for the computation of basic and diluted net income per share (in thousands): Three Months Ended Nine Months Ended June 30, June 30, 2015 2014 2015 2014 Net income from continuing operations available to common shareholders $ 3,924 $ 3,674 $ 10,590 $ 9,763 Basic weighted average shares outstanding 13,002 13,585 13,057 13,639 Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units, deferred stock units and performance shares 277 228 267 252 Diluted weighted average shares outstanding 13,279 13,813 13,324 13,891

Operating Segment Information (

Operating Segment Information (Tables)	9 Months Ended
	Jun. 30, 2015
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) 2015 2014 2015 2014 Revenue: Medical Device $ 11,629 $ 10,821 $ 32,827 $ 31,852 In Vitro Diagnostics 4,285 3,795 11,708 10,251 Total revenue $ 15,914 $ 14,616 $ 44,535 $ 42,103 Operating income: Medical Device $ 6,295 $ 5,855 $ 16,507 $ 16,466 In Vitro Diagnostics 1,191 974 3,220 2,277 Total segment operating income 7,486 6,829 19,727 18,743 Corporate (1,629 ) (1,496 ) (4,903 ) (5,601 ) Total operating income $ 5,857 $ 5,333 $ 14,824 $ 13,142 Depreciation and amortization: Medical Device $ 288 $ 281 $ 852 $ 862 In Vitro Diagnostics 215 214 645 641 Corporate 191 179 586 551 Total depreciation and amortization $ 694 $ 674 $ 2,083 $ 2,054

Key Accounting Policies - Addit

Key Accounting Policies - Additional Information (Detail)	9 Months Ended
	Jun. 30, 2015
Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Product sales payment terms	30 days
Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Product sales payment terms	45 days

Discontinued Operations - Addit

Discontinued Operations - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Discontinued Operations and Disposal Groups [Abstract]
Income impact associated with discontinued operations	$ 0	$ 0	$ 0	$ 0
Total assets of discontinued operations	0		0
Total liabilities of discontinued operations	$ 0		$ 0
Additional litigation expense within discontinued operations		$ 100,000		$ 100,000

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($)	3 Months Ended	9 Months Ended
	Mar. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Sep. 30, 2014
Fair Value Disclosures [Abstract]
Gain on sale of investment	$ 500,000
Level 3 assets		$ 0	$ 0	$ 0
Level 3 activity		0	$ 0
Available for sale investments		$ 0		$ 19,863,000

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	$ 50,075	$ 59,963
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		7,394
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		5,545
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		2,369
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		1,550
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	50,075	58,413
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		7,394
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		5,545
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		2,369
Cash equivalents [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	50,075	40,100
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	$ 50,075	40,100
Available-for-sale equity securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value		1,550
Available-for-sale equity securities [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		1,550
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		1,175
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		1,175
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		1,830
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		$ 1,830

Investments - Additional Inform

Investments - Additional Information (Detail) - USD ($)	Jun. 30, 2015	Sep. 30, 2014
Investments, Debt and Equity Securities [Abstract]
Available for sale investment	$ 0	$ 19,863,000

Investments - Amortized Cost, U

Investments - Amortized Cost, Unrealized Holding Gains (Losses) and Fair Value of Available-for-Sale Securities (Detail) - USD ($)	Jun. 30, 2015	Sep. 30, 2014
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		$ 18,347,000
Unrealized Gains		1,617,000
Unrealized Losses		(101,000)
Fair Value	$ 0	19,863,000
Municipal bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		1,173,000
Unrealized Gains		5,000
Unrealized Losses		(3,000)
Fair Value		1,175,000
Corporate bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		1,829,000
Unrealized Gains		6,000
Unrealized Losses		(5,000)
Fair Value		1,830,000
U.S. government and government agency obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		7,397,000
Unrealized Gains		12,000
Unrealized Losses		(15,000)
Fair Value		7,394,000
Mortgage-backed securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		5,576,000
Unrealized Gains		43,000
Unrealized Losses		(74,000)
Fair Value		5,545,000
Asset-backed securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		2,370,000
Unrealized Gains		3,000
Unrealized Losses		(4,000)
Fair Value		2,369,000
Equity securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		2,000
Unrealized Gains		1,548,000
Fair Value		$ 1,550,000

Investments - Sales of Availabl

Investments - Sales of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Investments, Debt and Equity Securities [Abstract]
Proceeds from sales	$ 19,071	$ 65,455	$ 21,722	$ 157,970
Gross realized gains	26		26	126
Gross realized losses	$ (65)		$ (73)	$ (1)

Inventories - Components of Inv

Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Inventory Disclosure [Abstract]
Raw materials	$ 1,328	$ 1,056
Finished products	2,136	1,761
Total	$ 3,464	$ 2,817

Other Assets - Schedule of Othe

Other Assets - Schedule of Other Assets Consist Principally of Strategic Investments (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Schedule of Investments [Line Items]
Other assets, net	$ 1,979	$ 1,979
CeloNova BioSciences, Inc. [Member]
Schedule of Investments [Line Items]
Other assets, net	1,500	1,500
ViaCyte, Inc. [Member]
Schedule of Investments [Line Items]
Other assets, net	$ 479	$ 479

Other Assets - Additional Infor

Other Assets - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Mar. 31, 2013	Jun. 30, 2015	Sep. 30, 2006
CeloNova BioSciences, Inc. [Member] | Maximum [Member]
Schedule of Investments [Line Items]
Company's ownership percentage		2.00%
ViaCyte, Inc. [Member]
Schedule of Investments [Line Items]
Impairment loss on investment	$ 0.1	$ 5.3	$ 4.7
Cost method of investment		$ 0.5
ViaCyte, Inc. [Member] | Maximum [Member]
Schedule of Investments [Line Items]
Company's ownership percentage		1.00%

Intangible Assets - Additional

Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 0.2	$ 0.2	$ 0.6	$ 0.6

Intangible Assets - Schedule of

Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Jun. 30, 2015	Sep. 30, 2014
Intangible Assets [Line Items]
Intangible assets, Gross Carrying Amount	$ 8,223	$ 8,223
Definite-lived intangible assets, Accumulated Amortization	(5,834)	(5,277)
Intangible assets, Net	$ 2,389	$ 2,946
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	(4,218)	(3,813)
Definite-lived intangible assets, Net	$ 639	$ 1,044
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	(524)	(475)
Definite-lived intangible assets, Net	$ 6	$ 55
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	(1,092)	(989)
Definite-lived intangible assets, Net	1,164	1,267
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	(5,834)	(5,277)
Definite-lived intangible assets, Net	1,809	2,366
Trademarks [Member]
Intangible Assets [Line Items]
Indefinite-lived intangible assets, Net	$ 580	$ 580

Intangible Assets - Estimated A

Intangible Assets - Estimated Amortization Expense (Detail) $ in Thousands	Jun. 30, 2015USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2015	$ 175
2,016	594
2,017	183
2,018	137
2,019	137
2,020	$ 137

Goodwill - Additional Informati

Goodwill - Additional Information (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Goodwill [Line Items]
Goodwill	$ 8,010	$ 8,010
In Vitro Diagnostics [Member]
Goodwill [Line Items]
Goodwill	$ 8,010	$ 8,010

Stock-based Compensation - Stoc

Stock-based Compensation - Stock-based Compensation Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expenses	$ 629	$ 580	$ 1,841	$ 3,043
Product costs [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expenses	5	4	18	13
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expenses	56	38	171	136
Selling, general and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expenses	$ 568	$ 538	$ 1,652	$ 2,894

Stock-based Compensation - Addi

Stock-based Compensation - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended			9 Months Ended		12 Months Ended	21 Months Ended
	Feb. 28, 2014	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Sep. 30, 2014	Jun. 30, 2015
Stock-Based Compensation Activity [Line Items]
Unrecognized compensation costs related to non-vested awards		$ 2,400,000			$ 2,400,000			$ 2,400,000
Weighted average period for recognition of compensation costs related to non-vested awards					2 years 1 month 6 days
Performance share awards fully expensed		$ 400,000			$ 400,000			400,000
Weighted average per share fair value of stock options		$ 8.85		$ 8.69	$ 7.25	$ 8.72
Dividend yield		0.00%		0.00%	0.00%	0.00%
Total pre-tax intrinsic value of options exercised		$ 300,000		$ 200,000	$ 1,700,000	$ 1,300,000
Stock option related expense				600,000		600,000
Performance Shares, time period					3 years
Stock compensation expenses recognized		629,000		580,000	$ 1,841,000	3,043,000
Former Chairman of the Board [Member]
Stock-Based Compensation Activity [Line Items]
Restricted stock expense	$ 200,000
Fiscal 2015 (2015 - 2017) [Member]
Stock-Based Compensation Activity [Line Items]
Performance period start year					2,015
Performance period end year					2,017
Fiscal 2014 (2014 - 2016) [Member]
Stock-Based Compensation Activity [Line Items]
Performance period start year					2,014
Performance period end year					2,016
Fiscal 2013 (2013 - 2015) [Member]
Stock-Based Compensation Activity [Line Items]
Performance period start year					2,013
Performance period end year					2,015
Fiscal 2012 (2012 - 2014) [Member]
Stock-Based Compensation Activity [Line Items]
Performance period start year					2,012
Performance period end year					2,014
Maximum [Member]
Stock-Based Compensation Activity [Line Items]
Restricted stock expense		100,000		100,000	$ 200,000	200,000
Expense recognized related to Performance Shares		200,000		200,000	500,000	700,000
Maximum [Member] | 2009 Equity Incentive Plan [Member]
Stock-Based Compensation Activity [Line Items]
Stock compensation expenses recognized		100,000		100,000	$ 100,000	100,000
Nonqualified Stock Options [Member]
Stock-Based Compensation Activity [Line Items]
Vesting terms					Non-qualified stock options generally become exercisable with respect to 25% of the shares on each of the first four anniversaries following the grant date.
Nonqualified Stock Options [Member] | Board of Director [Member]
Stock-Based Compensation Activity [Line Items]
Stock option exercisable on a pro-rata basis					1 year
Nonqualified Stock Options [Member] | Minimum [Member] | Board of Director [Member]
Stock-Based Compensation Activity [Line Items]
Stock option expiration term upon expiration of employment or service					7 years
Nonqualified Stock Options [Member] | Maximum [Member] | Board of Director [Member]
Stock-Based Compensation Activity [Line Items]
Stock option expiration term upon expiration of employment or service					10 years
Performance Shares [Member]
Stock-Based Compensation Activity [Line Items]
Issuance of shares			98,093
Performance Shares [Member] | Fiscal 2015 (2015 - 2017) [Member]
Stock-Based Compensation Activity [Line Items]
Fair value of performance shares for grants awarded					$ 900,000
Performance Shares [Member] | Fiscal 2014 (2014 - 2016) [Member]
Stock-Based Compensation Activity [Line Items]
Fair value of performance shares for grants awarded					900,000
Performance Shares [Member] | Fiscal 2013 (2013 - 2015) [Member]
Stock-Based Compensation Activity [Line Items]
Fair value of performance shares for grants awarded					900,000
Performance Shares [Member] | Maximum [Member]
Stock-Based Compensation Activity [Line Items]
Issuance of shares			124,994
1999 Employee Stock Purchase Plan [Member]
Stock-Based Compensation Activity [Line Items]
Annual compensation withheld, maximum limit					25,000
Employee contributions		100,000			$ 100,000			$ 100,000
1999 Employee Stock Purchase Plan [Member] | Maximum [Member]
Stock-Based Compensation Activity [Line Items]
Common stock authorized, shares					400,000
Annual compensation withheld					10.00%
Employee contributions				100,000		100,000
Stock compensation expenses recognized		$ 100,000		100,000	$ 100,000	100,000
Restricted Stock Units (RSUs) [Member] | 2009 Equity Incentive Plan [Member]
Stock-Based Compensation Activity [Line Items]
Stock compensation expenses recognized				100,000		300,000
Number of stock units awarded					10,678			35,512
Number of stock units forfeited		0			3,068		3,417
Number of stock units issued		0			7,681		2,183
Additional Stock-based compensation expenses				$ 200,000		$ 200,000
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | 2009 Equity Incentive Plan [Member]
Stock-Based Compensation Activity [Line Items]
Stock compensation expenses recognized		$ 100,000			$ 200,000
Deferred Stock Units [Member] | Director [Member]
Stock-Based Compensation Activity [Line Items]
Number of stock units awarded		1,547
Deferred Stock Units [Member] | 2009 Equity Incentive Plan [Member] | Director [Member]
Stock-Based Compensation Activity [Line Items]
Number of stock units awarded					4,433
Number of deferred stock units issued fair value					$ 100,000
Deferred Stock Units [Member] | Maximum [Member] | 2009 Equity Incentive Plan [Member] | Director [Member]
Stock-Based Compensation Activity [Line Items]
Number of deferred stock units issued fair value		$ 100,000
Vesting Anniversary [Member] | Nonqualified Stock Options [Member]
Stock-Based Compensation Activity [Line Items]
Performance share awards, estimated vesting percentage					25.00%
Performance Level [Member] | Minimum [Member]
Stock-Based Compensation Activity [Line Items]
Performance share awards, estimated vesting percentage					20.00%
Performance Level [Member] | Maximum [Member]
Stock-Based Compensation Activity [Line Items]
Performance share awards, estimated vesting percentage					200.00%

Stock-based Compensation - Assu

Stock-based Compensation - Assumptions Used in Stock Option Plans (Detail)	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Risk-free interest rates	1.20%	1.60%	1.40%	1.20%
Expected life (years)	4 years 4 months 24 days	4 years 9 months 18 days	4 years 6 months	4 years 7 months 6 days
Expected volatility	38.50%	43.90%	43.20%	44.50%
Dividend yield	0.00%	0.00%	0.00%	0.00%

Stock-based Compensation - Sche

Stock-based Compensation - Schedule of Fair Value at the Date of Grant (Detail)	9 Months Ended
	Jun. 30, 2015shares
Fiscal 2013 (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 (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
Fiscal 2015 (2015 - 2017) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Minimum Shares	8,440
Target Shares	42,199
Maximum Shares	84,398

Revolving Credit Facility - Add

Revolving Credit Facility - Additional Information (Detail) - USD ($)	Nov. 04, 2013	Jun. 30, 2015	Nov. 05, 2014
Line of Credit Facility [Line Items]
Credit facility initiation date	Nov. 4, 2013
Revolving credit facility amount	$ 20,000,000
Credit facility fee percentage	0.20%
Line of Credit Facility, Expiration Period	3 years
Debt outstanding		$ 0
Stock Repurchase Plan [Member]
Line of Credit Facility [Line Items]
Revolving credit facility amount			$ 30,000,000
Minimum [Member]
Line of Credit Facility [Line Items]
Credit facility interest rate	1.375%
Maximum [Member]
Line of Credit Facility [Line Items]
Credit facility interest rate	2.00%

Net Income Per Share Data - Den

Net Income Per Share Data - Denominator for Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share [Abstract]
Net income from continuing operations available to common shareholders	$ 3,924	$ 3,674	$ 10,590	$ 9,763
Basic weighted average shares outstanding	13,002	13,585	13,057	13,639
Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units, deferred stock units and performance shares	277	228	267	252
Diluted weighted average shares outstanding	13,279	13,813	13,324	13,891

Net Income Per Share Data - Add

Net Income Per Share Data - Additional Information (Detail) - USD ($)	Jul. 08, 2015	Nov. 11, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Nov. 05, 2014
Earnings Loss Per Share [Line Items]
Weighted average diluted shares outstanding excluded outstanding stock options			200,000	600,000	300,000	400,000
Common stock repurchased, Shares		758,143				485,577
Common stock repurchased						$ 11,500,000
Accelerated Share Repurchase Program [Member]
Earnings Loss Per Share [Line Items]
Maximum payments for repurchase of common stock							$ 30,000,000
Common stock repurchased, Shares		847,864
Amount available for repurchases of shares							$ 10,000,000
Fair value of common stock		$ 16,000,000
Shares repurchased		758,143
Initial payment to bank reported as reduction in retained earnings		$ 4,000,000
Accelerate share repurchase program, price per share		$ 23.59
Accelerated Share Repurchase Program [Member] | Maximum [Member]
Earnings Loss Per Share [Line Items]
Reduction in common stock		$ 100,000
Reduction in additional paid-in capital		2,500,000
Reduction in retained earnings		13,500,000
Accelerated Share Repurchase Program [Member] | Investment Bank [Member]
Earnings Loss Per Share [Line Items]
Fair value of common stock		$ 20,000,000
Subsequent Event [Member] | Accelerated Share Repurchase Program [Member]
Earnings Loss Per Share [Line Items]
Common stock repurchased, Shares	89,721

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended			9 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Sep. 30, 2014
Income Tax Disclosure [Line Items]
Income tax provisions associated with income from continuing operations	$ 1,929,000		$ 1,729,000	$ 4,879,000	$ 4,407,000
Effective tax rates	32.90%		32.00%	31.50%	31.10%
U.S. federal statutory tax rate	35.00%		35.00%	35.00%	35.00%
Discrete tax benefit				$ 200,000
Gain on sale of investment		$ 500,000
Gain on contingent consideration payment			$ 28,000		$ 709,000
Gain on debt securities available for sale securities portfolio					$ 100,000
Effective income tax rate associated with discontinued operations			34.80%		34.80%
Unrecognized tax benefits including interest and penalties	$ 1,000,000			1,000,000		$ 900,000
Intersect ENT [Member]
Income Tax Disclosure [Line Items]
Gain on sale of investment				500,000
Maximum [Member]
Income Tax Disclosure [Line Items]
Discrete tax benefit	100,000		$ 100,000	300,000	$ 300,000
Income tax benefit from discontinued operations	$ 0		$ 100,000	$ 0	$ 100,000

Amounts Reclassified Out of A54

Amounts Reclassified Out of Accumulated Other Comprehensive Income - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified out of AOCI pre-tax basis		$ 0		$ 100,000
Maximum [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified out of AOCI pre-tax basis	$ 100,000		$ 500,000

Operating Segment Information -

Operating Segment Information - Additional Information (Detail)	9 Months Ended
	Jun. 30, 2015Segment
Segment Reporting [Abstract]
Number of operating segments	2

Operating Segment Information56

Operating Segment Information - Segment Revenue, Operating Income and Depreciation and Amortization (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Segment Reporting Information [Line Items]
Total revenue	$ 15,914	$ 14,616	$ 44,535	$ 42,103
Operating income	5,857	5,333	14,824	13,142
Depreciation and amortization	694	674	2,083	2,054
Operating Segments [Member]
Segment Reporting Information [Line Items]
Operating income	7,486	6,829	19,727	18,743
Operating Segments [Member] | Medical Device [Member]
Segment Reporting Information [Line Items]
Total revenue	11,629	10,821	32,827	31,852
Operating income	6,295	5,855	16,507	16,466
Depreciation and amortization	288	281	852	862
Operating Segments [Member] | In Vitro Diagnostics [Member]
Segment Reporting Information [Line Items]
Total revenue	4,285	3,795	11,708	10,251
Operating income	1,191	974	3,220	2,277
Depreciation and amortization	215	214	645	641
Corporate [Member]
Segment Reporting Information [Line Items]
Operating income	(1,629)	(1,496)	(4,903)	(5,601)
Depreciation and amortization	$ 191	$ 179	$ 586	$ 551

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	3 Months Ended	9 Months Ended
	Mar. 31, 2015USD ($)	Jun. 30, 2015USD ($)shares	Jun. 30, 2015EUR (€)shares
Commitments and Contingencies [Line Items]
Additional shares of common stock to stockholders | shares		480,059	480,059
License agreement commencement date		2006-03	2006-03
Annual minimum payments for licenses		$ 222,000	€ 200,000
Exchange rate relating to license payment		1.10944
Future minimum payments associated with license		$ 2,700,000
January 2009 through September 2014 [Member]
Commitments and Contingencies [Line Items]
Hydrophilic coating royalties overpaid	$ 5,700,000
Patents [Member]
Commitments and Contingencies [Line Items]
Patent expiry date		2027-09	2027-09