Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2016 | Apr. 29, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
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 | 13,014,939 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Sep. 30, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 38,989 | $ 55,588 |
Restricted cash | 822 | |
Accounts receivable, net of allowance for doubtful accounts of $34 and $10 as of March 31, 2016 and September 30, 2015, respectively | 6,932 | 7,478 |
Inventories | 3,335 | 2,979 |
Deferred tax assets | 546 | |
Prepaids and other | 1,643 | 1,198 |
Total Current Assets | 51,721 | 67,789 |
Property and equipment, net | 13,881 | 12,968 |
Deferred tax assets | 5,190 | 6,704 |
Intangible assets, net | 24,059 | 2,760 |
Goodwill | 26,965 | 8,010 |
Other assets, net | 669 | 479 |
Total Assets | 122,485 | 98,710 |
Current Liabilities: | ||
Accounts payable | 2,085 | 781 |
Accrued liabilities: | ||
Compensation | 1,785 | 2,772 |
Due to customers | 1,471 | 63 |
Accrued other | 1,431 | 731 |
Business combination consideration payable | 822 | 305 |
Contingent consideration | 400 | |
Deferred revenue | 315 | 48 |
Total Current Liabilities | 8,309 | 4,700 |
Contingent consideration | 13,246 | |
Deferred revenue, less current portion | 199 | 217 |
Other long-term liabilities | 1,900 | 1,920 |
Total Liabilities | $ 23,654 | $ 6,837 |
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; 13,012,656 and 12,945,157 shares issued and outstanding, respectively | $ 651 | $ 647 |
Additional paid-in capital | 4,950 | 3,060 |
Accumulated other comprehensive income | 1,731 | 5 |
Retained earnings | 91,499 | 88,161 |
Total Stockholders’ Equity | 98,831 | 91,873 |
Total Liabilities and Stockholders’ Equity | $ 122,485 | $ 98,710 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Sep. 30, 2015 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 34 | $ 10 |
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 | 13,012,656 | 12,945,157 |
Common stock, shares outstanding | 13,012,656 | 12,945,157 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue: | ||||
Royalties and license fees | $ 6,697 | $ 7,383 | $ 14,651 | $ 14,658 |
Product sales | 8,173 | 5,651 | 15,354 | 11,498 |
Research, development and other | 1,829 | 1,381 | 3,235 | 2,464 |
Total revenue | 16,699 | 14,415 | 33,240 | 28,620 |
Operating costs and expenses: | ||||
Product costs | 2,926 | 1,955 | 5,292 | 3,857 |
Research and development | 4,868 | 4,403 | 8,502 | 7,979 |
Selling, general and administrative | 4,853 | 3,974 | 8,501 | 7,515 |
Acquisition transaction, integration and other costs | 640 | 3,131 | ||
Acquisition related intangible asset amortization | 780 | 151 | 1,134 | 303 |
Contingent consideration accretion expense | 392 | 501 | ||
Total operating costs and expenses | 14,459 | 10,483 | 27,061 | 19,654 |
Operating income | 2,240 | 3,932 | 6,179 | 8,966 |
Other (loss) income: | ||||
Investment income, net | 16 | 56 | 17 | 113 |
Foreign exchange loss | (434) | (569) | ||
Other income, net | 361 | 543 | 361 | 536 |
Other (loss) income, net | (57) | 599 | (191) | 649 |
Income before income taxes | 2,183 | 4,531 | 5,988 | 9,615 |
Income tax provision | (1,358) | (1,480) | (2,650) | (2,950) |
Net income | $ 825 | $ 3,051 | $ 3,338 | $ 6,665 |
Basic net income per share | $ 0.06 | $ 0.24 | $ 0.26 | $ 0.51 |
Diluted net income per share | $ 0.06 | $ 0.23 | $ 0.25 | $ 0.50 |
Weighted average number of shares outstanding: | ||||
Basic | 12,969 | 12,944 | 12,956 | 13,092 |
Diluted | 13,190 | 13,207 | 13,187 | 13,365 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 825 | $ 3,051 | $ 3,338 | $ 6,665 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized holding losses on available-for-sale securities arising during the period | (70) | (2) | (1,156) | |
Reclassification adjustment for realized gains included in net income | (346) | (342) | ||
Foreign currency translation adjustments | 1,320 | 1,728 | ||
Other comprehensive income (loss) | 1,320 | (416) | 1,726 | (1,498) |
Comprehensive income | $ 2,145 | $ 2,635 | $ 5,064 | $ 5,167 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Activities: | ||
Net income | $ 3,338 | $ 6,665 |
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations: | ||
Depreciation and amortization | 2,297 | 1,389 |
Stock-based compensation | 1,899 | 1,211 |
Contingent consideration accretion and unrealized foreign exchange loss | 1,065 | |
Deferred taxes | 2,060 | 795 |
Gain on sales of available-for-sale securities and strategic investment | (361) | (515) |
Excess tax benefit from stock-based compensation plans | (136) | (442) |
Other | (18) | (40) |
Change in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | 874 | (176) |
Inventories | (97) | (378) |
Prepaids and other | 9 | (245) |
Accounts payable and accrued liabilities | 439 | (609) |
Income taxes | (1,925) | (825) |
Net cash provided by operating activities from continuing operations | 9,444 | 6,830 |
Investing Activities: | ||
Purchases of property and equipment | (983) | (163) |
Cash proceeds from sales of property and equipment | 15 | 42 |
Payments for acquisitions, net of cash acquired | (25,149) | |
Purchases of available-for-sale securities | (3,385) | |
Sales and maturities of available-for-sale securities | 3,176 | |
Cash received from sale of strategic investment | 361 | |
Cash transferred to discontinued operations | (45) | |
Net cash used in investing activities from continuing operations | (25,756) | (375) |
Financing Activities: | ||
Excess tax benefit from stock-based compensation plans | 136 | 442 |
Issuance of common stock | 225 | 348 |
Repurchase of common stock | (20,000) | |
Purchase of common stock to pay employee taxes | (366) | (741) |
Payment of contingent consideration | (305) | |
Net cash used in financing activities from continuing operations | (310) | (19,951) |
Net cash used in continuing operations | (16,622) | (13,496) |
Discontinued Operations: | ||
Net cash used in operating activities | (45) | |
Net cash provided by financing activities | 45 | |
Effect of exchange rate changes on cash | 23 | |
Net change in cash and cash equivalents | (16,599) | (13,496) |
Cash and Cash Equivalents: | ||
Beginning of period | 55,588 | 43,511 |
End of period | 38,989 | 30,015 |
Supplemental Information: | ||
Cash paid for income taxes | 2,486 | 2,981 |
Noncash transactions from investing and financing activities: | ||
Acquisition of property and equipment on account | 99 | 155 |
Contingent consideration and debt assumed in acquisitions | 13,374 | |
Issuance of performance shares, restricted and deferred stock units | $ 1,327 | $ 2,250 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Mar. 31, 2016 | |
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. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of the assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The results of operations for the three and six months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the entire 2016 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 consolidated 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, 2015, and footnotes thereto included in the Company’s Form 10-K as filed with the SEC on December 4, 2015, and as amended on May 10, 2016. During the quarter ended March 31, 2016, the Company recorded an out-of-period adjustment of $1.1 million to correct a cumulative overstatement of royalty revenue, or which $1.0 million related to years prior to fiscal 2016. The overstatement was evaluated and concluded to not be material to fiscal 2016, the three and six months ended March 31, 2016, or any prior periods. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | 2. New Accounting Pronouncements Accounting Standards to be Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) Update No. 2014-09, Revenue from Contracts with Customers (ASC Topic 606) require entities to recognize revenue in a manner that depicts the transfer of goods or services to customers in amounts that reflect the consideration an entity expects to be entitled to in exchange for those goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This accounting standard will be effective for the Company beginning in the first quarter of fiscal year 2019 (October 1, 2018) using one of two prescribed retrospective methods. The Company is currently evaluating the impact that the adoption of this standard will have on the Company’s results of operations, cash flows and financial position. In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases (ASC Topic 842) In March 2016, the FASB issued ASU No 2016-09, “ Compensation – Stock Compensation (ASC Topic 718): Improvements to Employee Share-Based Payment Accounting” Accounting Standards Adopted In September 2015, the FASB issued ASU 2015-16, Business Combinations (ASC Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes 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. |
Business Combinations
Business Combinations | 6 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combination | 3. Business Combinations For all business combinations, the Company records all assets and liabilities of the acquired business, including goodwill and other identified intangible assets, generally at their fair values starting in the period when the acquisition is completed. Contingent consideration, if any, is recognized at its fair value on the acquisition date and changes in fair value are recognized in earnings until settlement. Acquisition-related transaction costs are expensed as incurred. Creagh Medical Ltd. On November 20, 2015, the Company acquired 100% of the outstanding common shares and voting shares of Creagh Medical Ltd. (“Creagh Medical”) located in Ballinasloe, Ireland. The results of Creagh Medical’s operations have been included in the Company’s condensed consolidated financial statements as of the Creagh Medical acquisition date. The acquisition was financed with cash on hand. The Company acquired Creagh Medical for up to €30 million (approximately $32 million as of the acquisition date), including an upfront payment of €18 million (approximately $19.3 million as of the acquisition date), and up to €12 million (approximately $12.8 million as of the acquisition date) based on achievement of revenue and value-creating operational milestones through September 30, 2018. The payment of the milestones if met will occur in the quarter ending December 31, 2018. As of March 31, 2016, the Company had paid $18.4 million in cash for this acquisition, in addition to $0.8 million to an escrow account to fund the repurchase of certain Creagh Medical debt classified securities during fiscal 2016. As these securities have not been legally defeased by the establishment of the escrow fund, the Company has recorded a corresponding restricted cash and business combination consideration payable. It is expected that these securities will be repaid in the third quarter of fiscal 2016. The Company also assumed $0.8 million of debt that was repaid in the second quarter of fiscal 2016. Total transaction, integration and other costs associated with the Creagh Medical acquisition aggregated $2.4 million and $2.6 million for the three and six months ended March 31, 2016, respectively. Creagh Medical is included in the Company’s Medical Device reporting segment. Creagh Medical designs and manufactures high-quality percutaneous transluminal angioplasty (“PTA”) balloon catheters. Since 2006, Creagh Medical has grown its technical and product capability with PTA products approved throughout the world, including Europe, the United States, and Japan. With these resources, the Company is uniquely positioned to offer a total solutions approach from product design and development, through in-house extrusion, balloon forming, top-assembly, packaging and regulatory capabilities to approved products for exclusive distribution. The acquisition is a major step forward in the Company’s strategy to transform its Medical Device segment from being a provider of coatings technologies to offering whole-product solutions to medical device customers in the large and growing global interventional vascular market. The purchase price of Creagh Medical consisted of the following: (Dollars in thousands) Cash paid $ 18,417 Debt assumed 793 Contingent consideration 9,064 Total purchase price 28,274 Less cash and cash equivalents acquired (251 ) Total purchase price, net of cash acquired $ 28,023 The following table summarizes the preliminary allocation of the purchase price to the fair values assigned to the assets acquired and the liabilities assumed at the date of the Creagh Medical acquisition: Fair Value (Dollars Estimated (In Current assets $ 708 N/A Property and equipment 634 1.0-10.0 Trade name 75 N/A Developed technology 1,787 7.0 In-process research and development 942 N/A Customer relationships 11,119 7.0-10.0 Other noncurrent assets 81 N/A Current liabilities (923 ) N/A Deferred tax liabilities (9 ) N/A Net assets acquired 14,414 Goodwill 13,609 N/A Total purchase price, net of cash acquired $ 28,023 The Creagh Medical goodwill is a result of acquiring and retaining the Creagh Medical existing workforce and expected synergies from integrating their business into SurModics. The goodwill will not be deductible for tax purposes. Purchase accounting is considered preliminary, subject to revision, mainly with respect to working capital, income taxes and goodwill, as final information was not available as of March 31, 2016. As a result of the Creagh Medical acquisition, the Company has adopted a foreign currency translation policy. Assets and liabilities of non-U.S. dollar functional currency subsidiaries are translated into U.S. dollars at the period-end exchange rates, and revenues and expenses are translated at the average exchange rate for the period. The net effect of these translation adjustments in the condensed consolidated financial statements are recorded as a foreign currency translation adjustment, as a component of accumulated other comprehensive income. Foreign currency transaction gains and losses are included in other, income (loss) net in our Condensed Consolidated Statements of Income. NorMedix, Inc. On January 8, 2016, the Company acquired 100% of the shares of NorMedix, Inc. (“NorMedix”), a privately owned design and development company focused on ultra thin-walled, minimally invasive catheter technologies based in Plymouth, Minnesota. The acquisition was financed with cash on hand. The Company acquired NorMedix for $14.0 million, including an upfront payment of $7.0 million, and up to $7.0 million based on achievement of revenue and value-creating operational milestones through September 30, 2019. Contingent consideration associated with the NorMedix transaction is payable as earned. This acquisition strengthens the Company’s vascular device expertise and Research and Development (“R&D) capabilities. This acquisition positions the Company to make significant progress on its strategy to offer whole-product solutions to medical device customers, while continuing its commitment to consistently deliver innovation in coating technologies and in vitro diagnostics. Total transaction, integration and other costs associated with the NorMedix acquisition aggregated $0.3 million for both the three and six months ended March 31, 2016. NorMedix is included in the Company’s Medical Device reporting segment. The purchase price of NorMedix consisted of the following: (Dollars in thousands) Cash paid $ 7,000 Contingent consideration 3,740 Total purchase price 10,740 Less cash and cash equivalents acquired (17 ) Total purchase price, net of cash acquired $ 10,723 The following table summarizes the allocation of the preliminary purchase price to the fair values assigned to the assets acquired and the liabilities assumed at the date of the NorMedix acquisition: Fair Value (Dollars Estimated Useful Life (In years) Net current assets $ 98 N/A Property and equipment 76 N/A Developed technology 6,850 10.0-14.0 Customer relationships 900 4.0 Deferred tax asset 746 N/A Other noncurrent asset 12 N/A Deferred tax liabilities (2,474 ) N/A Net assets acquired 6,208 Goodwill 4,515 N/A Total purchase price, net of cash acquired $ 10,723 The NorMedix goodwill is a result of acquiring and retaining the NorMedix existing workforce and expected synergies from integrating their business into SurModics. The goodwill will not be deductible for tax purposes. Purchase accounting is considered preliminary, subject to revision, mainly with respect to working capital, income taxes and goodwill, as final information was not available as of March 31, 2016. These strategic acquisitions combine the best-in-class capabilities of NorMedix’s catheter-based technologies, Creagh Medical’s PTA balloon platform capabilities, and SurModics’ innovative coating and drug delivery technologies to develop highly differentiated delivery and therapeutic intravascular solutions. The result is an organization with unique device design and development expertise, rich technology content, manufacturing capabilities, and a state-of-the-art facility equipped for medical device R&D and manufacturing. Pro Forma Results The following unaudited pro forma financial information presents the combined results of operation of the Company as if the acquisitions of Creagh Medical and NorMedix had occurred as of October 1, 2014. The Company has realized $1.6 million of revenue and a loss of $1.1 million from the Creagh Medical and NorMedix operations since their acquisitions. The fiscal 2016 six month pro forma financial information includes adjustments for additional amortization expense on identifiable intangible assets of $0.4 million and contingent consideration accretion expense of $0.3 million, eliminating non-recurring transactional professional fees of $2.9 million, and tax effect impact of $0.3 million. As NorMedix was acquired on January 8, 2016, substantially all of the activity of NorMedix and all activity of Creagh Medical is included in the quarter ended March 31, 2016 condensed consolidated financial statements, therefore, pro forma activity for the second quarter of fiscal 2016 has not been presented. The fiscal 2015 three and six month pro forma financial information includes adjustments for additional amortization expense on identifiable intangible assets of $0.6 million and $1.3 million, contingent consideration accretion expense of $0.4 million and $0.8 million and tax effect impact of $0.2 million and $0.3 million, respectively. The tax impact of the adjustments in all periods reflects no tax benefit from contingent consideration accretion as well as a significant portion of our transaction related costs in fiscal 2016 as they are not deductible for tax purposes. Further, Creagh Medical amortization expense does not reflect an Irish tax benefit as we acquired a net operating loss carryforward as of the acquisition date that was offset in the aggregate by deferred tax liabilities and valuation allowance. Therefore, the amortization of Creagh Medical intangible assets results in a decrease in deferred tax liabilities with a corresponding increase to a deferred tax valuation allowance. NorMedix amortization expense reflects a tax benefit based on our incremental U.S. tax rate. The unaudited pro forma financial information is not necessarily indicative of what the Company’s consolidated results of operations actually would have been had the acquisition occurred at the beginning of each year. Additionally, the unaudited pro forma financial information does not attempt to project the future results of operations of the combined company. Three Months Ended Six Months Ended March 31, March 31, 2015 2016 2015 (In thousands, except per share data) (Unaudited) (Unaudited) Revenue $ 15,267 $ 34,289 $ 30,063 Net income $ 1,734 $ 2,854 $ 3,997 Per share amounts: Basic net income per share $ 0.13 $ 0.22 $ 0.31 Diluted net income per share $ 0.13 $ 0.22 $ 0.30 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Mar. 31, 2016 | |
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) at the measurement date under current market conditions. 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 did not have any Level 1 assets as of March 31, 2016 or September 30, 2015. 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 as of March 31, 2016 consisted of money market funds and commercial paper instruments. Fair market values for these assets are based on quoted vendor prices and broker pricing where all significant inputs are observable. 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. Included in Level 3 liabilities at March 31, 2016 is $13.6 million of current and noncurrent contingent consideration liabilities related to achievement of revenue and value-creating milestones associated with the Creagh Medical and NorMedix acquisitions. There were no Level 3 instruments as of September 30, 2015. 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. The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2016: (Dollars in thousands) Quoted Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value as of March 31, 2015 Assets: Cash equivalents $ — $ 31,624 $ — $ 31,624 Total assets $ — $ 31,624 $ — $ 31,624 Liabilities: Contingent consideration - current and noncurrent $ — $ — $ (13,646 ) $ (13,646 ) Total liabilities $ — $ — $ (13,646 ) $ (13,646 ) The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2015: (Dollars in thousands) Quoted Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value as of September 30, 2015 Assets: Cash equivalents $ — $ 53,591 $ — $ 53,591 Total assets $ — $ 53,591 $ — $ 53,591 Included in Level 3 fair value measurements as of March 31, 2016 was a $13.6 million current and noncurrent contingent consideration liability related to achievement of revenue and value-creating milestones associated with the Creagh Medical and NorMedix acquisitions. The following table summarizes the changes in the current and noncurrent contingent consideration liability for the three and six month periods ended March 31, 2016: (Dollars in thousands) Current and noncurrent contingent consideration liability at September 30, 2015 $ — Additions 9,064 Fair value adjustments — Settlements — Interest accretion 109 Foreign currency translation 135 Current and noncurrent contingent consideration liability at December 31, 2015 9,308 Additions 3,517 Fair value adjustments — Settlements — Interest accretion 392 Foreign currency translation 429 Current and noncurrent contingent consideration liability at March 31, 2016 $ 13,646 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. Contingent consideration — The contingent consideration liabilities were determined based on discounted cash flow analyses that included revenue estimates, probability of strategic milestone achievement and a discount rate, which are considered significant unobservable inputs as of the acquisition date and March 31, 2016. For the revenue based milestones, the Company discounted forecasted revenue by 13.9% to 22.8%, which represents the Company’s weighted average cost of capital for each transaction, adjusted for the short-term nature of the cash flows. The resulting present value of revenue was used as an input into an option pricing approach, which also considered the Company’s risk of non-payment of the revenue-based milestones. Non-revenue milestones are assumed to have a 65% to 95% probability of achievement and related payments were discounted using the Company’s estimated cost of debt, or 5.9% to 7.0%. To the extent that these assumptions were to change, the fair value of the contingent consideration liabilities could change significantly. Included in the condensed consolidated statement of income for the second quarter and first six months ended March 31, 2016 is $0.4 million and $0.5 million, respectively, of expense related to the accretion of the contingent consideration. The €12 million contingent consideration related to the Creagh Medical acquisition is denominated in Euros and is not hedged. The Company recorded a $0.4 million and $0.6 million foreign currency exchange loss in the second quarter and first six months of fiscal 2016, respectively, related to this contingent consideration. |
Investments
Investments | 6 Months Ended |
Mar. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | 5. Investments During the year ended September 30, 2015, the Company liquidated its investment portfolio and was invested solely in cash equivalents. Investments made during 2015 consisted principally of U.S. government and government agency obligations, mortgage-backed securities and corporate and municipal debt securities and were classified as available-for-sale at March 31, 2015. Available-for-sale securities were 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 year ended September 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 March 31, 2016 was zero. The following table summarizes sales of available-for-sale debt securities: Three Months Ended Six Months Ended March 31, March 31, (Dollars in thousands) 2016 2015 2016 2015 Proceeds from sales $ — $ 1,678 $ — $ 2,651 Gross realized gains $ — $ — $ — $ — Gross realized losses $ — $ (1 ) $ — $ (8 ) |
Inventories
Inventories | 6 Months Ended |
Mar. 31, 2016 | |
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: March 31, September 30, (Dollars in thousands) 2016 2015 Raw materials $ 1,539 $ 1,264 Finished products 1,796 1,715 Total $ 3,335 $ 2,979 |
Other Assets
Other Assets | 6 Months Ended |
Mar. 31, 2016 | |
Investments All Other Investments [Abstract] | |
Other Assets | 7. Other Assets Other assets consist principally of the following: March 31, September 30, (Dollars in thousands) 2016 2015 ViaCyte, Inc. $ 479 $ 479 Other noncurrent assets 190 — Other assets, net $ 669 $ 479 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. The balance of the investment of $0.5 million, which is net of previously recorded other-than-temporary impairments of $4.8 million is accounted for under the cost method and represents less than a 1% ownership interest. The Company does not exert significant influence over ViaCyte’s operating or financial activities. The carrying value of each cost method investment 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 | 6 Months Ended |
Mar. 31, 2016 | |
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. During the three months ended March 31, 2016, the Company acquired 100% of the shares of NorMedix. In addition, during the three months ended December 31, 2015, the Company acquired 100% of the shares of Creagh Medical. The Company acquired and recorded amounts for certain intangible assets in both the Creagh Medical and NorMedix transactions. The Company recorded amortization expense of $0.8 million and $0.2 million for the second quarter ended March 31, 2016 and 2015, respectively. For the six months ended March 31, 2016 and 2015, the Company recorded amortization expense of $1.2 million and $0.4 million, respectively. Intangible assets consisted of the following: March 31, 2016 (Dollars in thousands) Weighted Average Original Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 7.8 $ 17,830 $ (5,271 ) $ 12,559 Core technology 8.0 530 (530 ) — Developed technology 11.8 8,746 (219 ) 8,527 Non-compete 5.0 230 (35 ) 195 Patents and other 16.5 2,321 (1,202 ) 1,119 Subtotal 29,657 (7,257 ) 22,400 Unamortized intangible assets: In-process research and development 999 — 999 Trademarks and trade names 660 — 660 Total $ 31,316 $ (7,257 ) $ 24,059 September 30, 2015 (Dollars in thousands) Weighted Average Original Life Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists 9.0 $ 5,132 $ (4,363 ) $ 769 Core technology 8.0 530 (530 ) — Non-compete 5.0 230 (12 ) 218 Patents and other 16.8 2,321 (1,128 ) 1,193 Subtotal 8,213 (6,033 ) 2,180 Unamortized intangible assets: Trademarks 580 — 580 Total $ 8,793 $ (6,033 ) $ 2,760 Based on the intangible assets in service as of March 31, 2016 and the projected completion of in-process research and development assets in fiscal 2017, estimated amortization expense for the remainder of fiscal 2016 and each of the next five fiscal years is as follows: (Dollars in thousands) Remainder of 2016 $ 1,669 2017 3,018 2018 2,607 2019 2,561 2020 2,397 2021 2,284 Future amortization amounts presented above are estimates. Actual future amortization expense may be different, as a result of completion of the purchase price allocations for Creagh Medical and NorMedix, future acquisitions, impairments, completion of in-process research and development (“IPR&D”) intangible assets, foreign currency fluctuations, changes in amortization periods, or other factors. The Company defines IPR&D as the value of technology acquired for which the related projects have substance and are incomplete. IPR&D acquired in a business acquisition is recognized at fair value and requires the IPR&D to be capitalized as an indefinite-lived intangible asset until completion of the IPR&D project or abandonment. Upon completion of the development project (generally when regulatory approval to market the product is obtained), an impairment assessment is performed prior to amortizing the asset over its estimated useful life. If the IPR&D projects are abandoned, the related IPR&D assets would be written off. |
Goodwill
Goodwill | 6 Months Ended |
Mar. 31, 2016 | |
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. Goodwill at March 31, 2016 and September 30, 2015 totaled $27.0 million and $8.0 million, respectively. The $8.0 million of goodwill at September 30, 2015 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 2015 annual impairment test, and there have been no events or circumstances that have occurred in the first six months of fiscal 2016 to indicate that the goodwill has been impaired. In the first quarter of fiscal 2016, the Company purchased Creagh Medical. The purchase price of Creagh Medical exceeded the net acquisition-date amounts of the identifiable assets acquired and the liabilities assumed by $13.6 million. The final valuation of assets acquired and liabilities assumed is expected to be completed as soon as possible, but no later than one year from the acquisition date. In the second quarter of fiscal 2016, the Company purchased NorMedix. The purchase price of NorMedix exceeded the net acquisition-date amounts of the identifiable assets acquired and the liabilities assumed by $4.5 million. The final valuation of assets acquired and liabilities assumed is expected to be completed as soon as possible, but no later than one year from the acquisition date. The change in the carrying amount of goodwill by segment for the six months ended March 31, 2016 was as follows: (Dollars in thousands) In Vitro Diagnostics Medical Device Total Balance as of September 30, 2015 $ 8,010 $ — $ 8,010 Additions (See Note 3) — 18,124 18,124 Translation adjustment — 831 831 Balance as of March 31, 2016 $ 8,010 $ 18,955 $ 26,965 |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Mar. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 10. Stock-based Compensation The Company has stock-based compensation plans under which it grants stock options, restricted stock awards, performance share awards, 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 Six Months Ended March 31, March 31, (Dollars in thousands) 2016 2015 2016 2015 Product costs $ 1 $ 5 $ 8 $ 13 Research and development 60 54 119 114 Selling, general and administrative 1,154 627 1,772 1,084 Total $ 1,215 $ 686 $ 1,899 $ 1,211 As of March 31, 2016, approximately $4.5 million of total unrecognized compensation costs related to non-vested awards is expected to be recognized over a weighted average period of approximately 2.4 years. The unrecognized compensation costs above include $1.8 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 March 31, 2016 and 2015 were $6.52 and $8.72, respectively. The weighted average per share fair values of stock options granted during the six months ended March 31, 2016 and 2015 were $6.85 and $7.23, respectively. The assumptions used as inputs in the model were as follows: Three Months Ended Six Months Ended March 31, March 31, 2016 2015 2016 2015 Risk-free interest rates 1.1 % 1.4 % 1.9 % 1.4 % Expected life (years) 4.7 4.5 4.6 4.5 Expected volatility 37.8 % 43.2 % 36.8 % 43.3 % 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 yields were expected to be 0.0% 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 and six months ended March 31, 2016 was less than $0.1 million in each of the respective periods. 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 charged to income over the vesting term. The stock-based compensation expense table includes Restricted Stock expenses recognized related to these awards, which totaled less than $0.1 million in each of the three months ended March 31, 2016 and 2015, respectively. in each of the six months ended March 31, 2016 and 2015, respectively. 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 2014 (2014 – 2016) and are cumulative revenue and cumulative earnings before interest, income taxes, depreciation and amortization (“EBITDA”) for fiscal year 2015 (2015 – 2017) and fiscal 2016 (2016 – 2018). 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 2013 awards were finalized in the three months ended December 31, 2015 and resulted in the issuance of 42,458 shares (maximum was 85,506 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 six months ended March 31, 2016, the Company recognized expense of $0.7 million and $1.0 million, respectively. For the three and six months ended March 31, 2015, the Company recognized expense of $0.2 million and $0.3 million, respectively. The stock-based compensation expense table includes the Performance Shares expense. The fair values of the Performance Shares, at target, were $1.3 million, $0.9 million and $0.9 million in each fiscal year for grants awarded in fiscal 2016, 2015 and 2014, respectively. 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 Fiscal 2014 – 2016 7,861 39,303 78,606 Fiscal 2015 – 2017 8,440 42,199 84,398 Fiscal 2016 – 2018 13,268 66,338 132,676 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 March 31, 2016 and September 30, 2015, there was $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 six months ended March 31, 2016 and 2015 totaled less than $0.1 million in each period. The stock-based compensation table includes the Stock Purchase Plan expenses. Restricted Stock and Deferred Stock Units In the six months ended March 31, 2016, the Company awarded 18,877 restricted stock units (“RSUs”). The Company has awarded a total of 23,736 RSUs in fiscal 2015 and 2014 under the 2009 Equity Incentive Plan to non-employee directors with forfeiture of 3,068 RSUs in fiscal 2015. RSU awards are not considered issued or outstanding common stock of the Company until they vest. The estimated fair value of the RSU awards was calculated based on the closing market price of SurModics’ common stock on the date of grant. Compensation expense has been recognized for the estimated fair value of the common shares and is being charged to income over the vesting term. The stock-based compensation table includes RSU expenses recognized related to these awards, which totaled less than $0.1 million for the three months and six months ended March 31, 2016, respectively, and less than $0.1 million and $0.1 million during the three months and six months ended March 31, 2015. Directors can also elect to receive their annual fees for services to the Board in deferred stock units (“DSUs”). Certain directors elected this option beginning on January 1, 2013 with deferral elections made annually, which has resulted in 2,670 and 4,512 units issued with a total fair value of $49,000 and less than $0.1 million in the three months and six months ended March 31, 2016, respectively, and 1,332 and 2,886 DSUs issued with a total value of less than $0.1 million and $0.1 million in the three months and six months ended March 31, 2015, respectively. These DSUs are fully vested. Stock-based compensation expense related to DSU awards totaled $0.1 million and $0.1 million during the second quarter and six months ended March 31, 2016, respectively and less than $0.1 million and $0.1 million during the three months and six months ended March 31, 2015, respectively. |
Revolving Credit Facility
Revolving Credit Facility | 6 Months Ended |
Mar. 31, 2016 | |
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. During the year ended September 30, 2015, the Company repurchased $20.0 million of common stock. On November 20, 2015, the credit facility was further amended and modified to replenish the size of stock repurchases that may be effected by the Company to up to $30.0 million without the consent of the lender. On March 4, 2016 the credit facility was further amended to consider the Company’s foreign subsidiaries in the credit agreement. 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 March 31, 2016, the Company has no debt outstanding and was in compliance with all financial covenants. |
Net Income Per Share Data
Net Income Per Share Data | 6 Months Ended |
Mar. 31, 2016 | |
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: Three Months Ended Six Months Ended March 31, March 31, (Dollars in thousands) 2016 2015 2016 2015 Net income available to common shareholders $ 825 $ 3,051 $ 3,338 $ 6,665 Basic weighted average shares outstanding 12,969 12,944 12,956 13,092 Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units, deferred stock units and performance shares 221 263 231 273 Diluted weighted average shares outstanding 13,190 13,207 13,187 13,365 The calculation of weighted average diluted shares outstanding excludes outstanding stock options associated with the right to purchase 0.9 million and 0.3 million shares of common stock for the three months ended March 31, 2016 and 2015, respectively, and 0.8 million and 0.5 million for the six months ended March 31, 2016 and March 31, 2015, 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. The Company used $20.0 million of this authorization for the share repurchase discussed below. On November 11, 2014, the Company entered into an accelerated share repurchase (“ASR”) 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 was indexed to the Company’s common stock and met the U.S. GAAP requirements to be classified as permanent equity as of July 8, 2015, the date the ASR program was completed. On November 6, 2015, the Company’s Board of Directors authorized the repurchase of up to $20.0 million of the Company’s outstanding common stock in addition to the $10.0 million authorization which remains available from the November 5, 2014 authorization. |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes The Company recorded income tax provisions of $1.4 million and $1.5 million for the three months ended March 31 March 31 The discrete tax items in the fiscal 2016 and fiscal 2015 six - The three and six - The three and six-month period ended March 31, 2015 income tax provisions included the impact of a $0.5 million gain from the sale of the Company’s investment in Intersect ENT, Inc. with an offsetting reversal of a capital loss carryforward valuation allowance. The total amount of unrecognized tax benefits, excluding interest and penalties that, if recognized, would affect the effective tax rate as of March 31 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 2005. |
Amounts Reclassified Out of Acc
Amounts Reclassified Out of Accumulated Other Comprehensive Income | 6 Months Ended |
Mar. 31, 2016 | |
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”) was $0.3 million on a pre-tax basis for the three and six months ended March 31, 2015. There were no amounts reclassified out of AOCI for the three and six months ended March 31, 2016. For the three months and six months ended March 31, 2015, the amounts reclassified out of AOCI were associated with unrealized gains or losses on available-for-sale securities that were realized on the sale of the securities and were presented in other income, net in the condensed consolidated statements of income. |
Reportable Segment Information
Reportable Segment Information | 6 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | 15. Reportable 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; international cardiology and peripheral balloon design, development and manufacturing; 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. During the first six months of fiscal 2016, the Company acquired Creagh Medical and NorMedix, which are included in the Medical Device segment. The table below presents segment revenue, operating income and depreciation and amortization, as follows: Three Months Ended Six Months Ended March 31, March 31, (Dollars in thousands) 2016 2015 2016 2015 Revenue: Medical Device $ 11,599 $ 10,562 $ 23,846 $ 21,198 In Vitro Diagnostics 5,100 3,853 9,394 7,422 Total revenue $ 16,699 $ 14,415 $ 33,240 $ 28,620 Operating income: Medical Device $ 2,322 $ 4,696 $ 6,152 $ 10,212 In Vitro Diagnostics 1,982 931 3,625 2,028 Total segment operating income 4,304 5,627 9,777 12,240 Corporate (2,064 ) (1,695 ) (3,598 ) (3,274 ) Total operating income $ 2,240 $ 3,932 $ 6,179 $ 8,966 Depreciation and amortization: Medical Device $ 968 $ 295 $ 1,457 $ 565 In Vitro Diagnostics 204 216 426 430 Corporate 215 195 414 394 Total depreciation and amortization $ 1,387 $ 706 $ 2,297 $ 1,389 The Corporate category includes expenses that are not fully allocated to Medical Device and In Vitro Diagnostics segments. These Corporate costs are related to functions, such as executive management, corporate accounting, legal, human resources and Board of Directors. 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 | 6 Months Ended |
Mar. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. Commitments and Contingencies Litigation. From time to time, the Company has been, and may become, involved in various legal actions involving its operations, products and technologies, including intellectual property and employment disputes. The outcomes of these legal actions are not within the Company’s complete control and may not be known for prolonged periods of time. In some actions, the claimants seek damages as well as other relief, including injunctions barring the sale of products that are the subject of the lawsuit, which if granted, could require significant expenditures or result in lost revenue. The Company records a liability in the condensed consolidated financial statements for these actions when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate, the minimum amount of the range is accrued. If a loss is possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. In most cases, significant judgment is required to estimate the amount and timing of a loss to be recorded. InnoRx, Inc. In January 2005, the Company entered into a merger agreement whereby the Company acquired all of the assets of InnoRx, Inc. (“InnoRx”), an early stage company developing drug delivery devices and therapies for the ophthalmology market. The Company will be required to issue up to approximately 480,059 additional shares of its common stock to the stockholders of InnoRx upon the successful completion of the remaining development and commercial milestones involving InnoRx technology acquired in the transaction. The Company has not recorded any accrual for this contingency as of March 31, 2016 as the milestones have not been achieved and the probability of achievement is remote. InnoCore Technologies BV . In March 2006, the Company entered into a license agreement whereby SurModics obtained an exclusive license to a drug delivery coating for licensed products within the vascular field which included peripheral, coronary and neurovascular biodurable stent products. The license requires an annual minimum payment of 200,000 euros (equivalent to $227,100 using a euro to US dollar exchange rate of 1.1355 to the Euro as of March 31, 2016) until the last patent expires which is currently estimated to be September 2027. The total minimum future payments associated with this license are approximately $2.7 million. The license is currently utilized by one of the Company’s drug delivery customers. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. Subsequent Events On April 29, 2016, a customer reported a $2.9 million, or $0.14 per share after-tax royalty was owed to the Company for the period from fiscal 2009 through 2016. This royalty revenue will be recognized in the third quarter of fiscal 2016, when collectability is reasonably assured and completion of the earnings process occurs, consistent with the Company’s revenue recognition policy |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Creagh Medical Ltd [Member] | |
Business Acquisition [Line Items] | |
Summary of Purchase Price | The purchase price of Creagh Medical consisted of the following: (Dollars in thousands) Cash paid $ 18,417 Debt assumed 793 Contingent consideration 9,064 Total purchase price 28,274 Less cash and cash equivalents acquired (251 ) Total purchase price, net of cash acquired $ 28,023 |
Schedule of Purchase Price to the Fair Values Assigned to the Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary allocation of the purchase price to the fair values assigned to the assets acquired and the liabilities assumed at the date of the Creagh Medical acquisition: Fair Value (Dollars Estimated (In Current assets $ 708 N/A Property and equipment 634 1.0-10.0 Trade name 75 N/A Developed technology 1,787 7.0 In-process research and development 942 N/A Customer relationships 11,119 7.0-10.0 Other noncurrent assets 81 N/A Current liabilities (923 ) N/A Deferred tax liabilities (9 ) N/A Net assets acquired 14,414 Goodwill 13,609 N/A Total purchase price, net of cash acquired $ 28,023 |
NorMedix, Inc. [Member] | |
Business Acquisition [Line Items] | |
Summary of Purchase Price | The purchase price of NorMedix consisted of the following: (Dollars in thousands) Cash paid $ 7,000 Contingent consideration 3,740 Total purchase price 10,740 Less cash and cash equivalents acquired (17 ) Total purchase price, net of cash acquired $ 10,723 |
Schedule of Purchase Price to the Fair Values Assigned to the Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of the preliminary purchase price to the fair values assigned to the assets acquired and the liabilities assumed at the date of the NorMedix acquisition: Fair Value (Dollars Estimated Useful Life (In years) Net current assets $ 98 N/A Property and equipment 76 N/A Developed technology 6,850 10.0-14.0 Customer relationships 900 4.0 Deferred tax asset 746 N/A Other noncurrent asset 12 N/A Deferred tax liabilities (2,474 ) N/A Net assets acquired 6,208 Goodwill 4,515 N/A Total purchase price, net of cash acquired $ 10,723 |
Creagh Medical and NorMedix [Member] | |
Business Acquisition [Line Items] | |
Schedule of Pro Forma Financial Information | Three Months Ended Six Months Ended March 31, March 31, 2015 2016 2015 (In thousands, except per share data) (Unaudited) (Unaudited) Revenue $ 15,267 $ 34,289 $ 30,063 Net income $ 1,734 $ 2,854 $ 3,997 Per share amounts: Basic net income per share $ 0.13 $ 0.22 $ 0.31 Diluted net income per share $ 0.13 $ 0.22 $ 0.30 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016: (Dollars in thousands) Quoted Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value as of March 31, 2015 Assets: Cash equivalents $ — $ 31,624 $ — $ 31,624 Total assets $ — $ 31,624 $ — $ 31,624 Liabilities: Contingent consideration - current and noncurrent $ — $ — $ (13,646 ) $ (13,646 ) Total liabilities $ — $ — $ (13,646 ) $ (13,646 ) The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2015: (Dollars in thousands) Quoted Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value as of September 30, 2015 Assets: Cash equivalents $ — $ 53,591 $ — $ 53,591 Total assets $ — $ 53,591 $ — $ 53,591 |
Schedule of Contingent Consideration Liability | The following table summarizes the changes in the current and noncurrent contingent consideration liability for the three and six month periods ended March 31, 2016: (Dollars in thousands) Current and noncurrent contingent consideration liability at September 30, 2015 $ — Additions 9,064 Fair value adjustments — Settlements — Interest accretion 109 Foreign currency translation 135 Current and noncurrent contingent consideration liability at December 31, 2015 9,308 Additions 3,517 Fair value adjustments — Settlements — Interest accretion 392 Foreign currency translation 429 Current and noncurrent contingent consideration liability at March 31, 2016 $ 13,646 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Sales of Available-for-Sale Debt Securities | The following table summarizes sales of available-for-sale debt securities: Three Months Ended Six Months Ended March 31, March 31, (Dollars in thousands) 2016 2015 2016 2015 Proceeds from sales $ — $ 1,678 $ — $ 2,651 Gross realized gains $ — $ — $ — $ — Gross realized losses $ — $ (1 ) $ — $ (8 ) |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consisted of the following components: March 31, September 30, (Dollars in thousands) 2016 2015 Raw materials $ 1,539 $ 1,264 Finished products 1,796 1,715 Total $ 3,335 $ 2,979 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Investments All Other Investments [Abstract] | |
Summary of Other Assets | Other assets consist principally of the following: March 31, September 30, (Dollars in thousands) 2016 2015 ViaCyte, Inc. $ 479 $ 479 Other noncurrent assets 190 — Other assets, net $ 669 $ 479 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of the following: March 31, 2016 (Dollars in thousands) Weighted Average Original Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 7.8 $ 17,830 $ (5,271 ) $ 12,559 Core technology 8.0 530 (530 ) — Developed technology 11.8 8,746 (219 ) 8,527 Non-compete 5.0 230 (35 ) 195 Patents and other 16.5 2,321 (1,202 ) 1,119 Subtotal 29,657 (7,257 ) 22,400 Unamortized intangible assets: In-process research and development 999 — 999 Trademarks and trade names 660 — 660 Total $ 31,316 $ (7,257 ) $ 24,059 September 30, 2015 (Dollars in thousands) Weighted Average Original Life Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists 9.0 $ 5,132 $ (4,363 ) $ 769 Core technology 8.0 530 (530 ) — Non-compete 5.0 230 (12 ) 218 Patents and other 16.8 2,321 (1,128 ) 1,193 Subtotal 8,213 (6,033 ) 2,180 Unamortized intangible assets: Trademarks 580 — 580 Total $ 8,793 $ (6,033 ) $ 2,760 |
Estimated Amortization Expense | Based on the intangible assets in service as of March 31, 2016 and the projected completion of in-process research and development assets in fiscal 2017, estimated amortization expense for the remainder of fiscal 2016 and each of the next five fiscal years is as follows: (Dollars in thousands) Remainder of 2016 $ 1,669 2017 3,018 2018 2,607 2019 2,561 2020 2,397 2021 2,284 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule Of Carrying Amount Of Goodwill By Segment | The change in the carrying amount of goodwill by segment for the six months ended March 31, 2016 was as follows: (Dollars in thousands) In Vitro Diagnostics Medical Device Total Balance as of September 30, 2015 $ 8,010 $ — $ 8,010 Additions (See Note 3) — 18,124 18,124 Translation adjustment — 831 831 Balance as of March 31, 2016 $ 8,010 $ 18,955 $ 26,965 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Expenses | The Company’s stock-based compensation expenses were allocated to the following expense categories: Three Months Ended Six Months Ended March 31, March 31, (Dollars in thousands) 2016 2015 2016 2015 Product costs $ 1 $ 5 $ 8 $ 13 Research and development 60 54 119 114 Selling, general and administrative 1,154 627 1,772 1,084 Total $ 1,215 $ 686 $ 1,899 $ 1,211 |
Assumptions Used in Stock Option Plans | The assumptions used as inputs in the model were as follows: Three Months Ended Six Months Ended March 31, March 31, 2016 2015 2016 2015 Risk-free interest rates 1.1 % 1.4 % 1.9 % 1.4 % Expected life (years) 4.7 4.5 4.6 4.5 Expected volatility 37.8 % 43.2 % 36.8 % 43.3 % 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 Fiscal 2014 – 2016 7,861 39,303 78,606 Fiscal 2015 – 2017 8,440 42,199 84,398 Fiscal 2016 – 2018 13,268 66,338 132,676 |
Net Income Per Share Data (Tabl
Net Income Per Share Data (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
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: Three Months Ended Six Months Ended March 31, March 31, (Dollars in thousands) 2016 2015 2016 2015 Net income available to common shareholders $ 825 $ 3,051 $ 3,338 $ 6,665 Basic weighted average shares outstanding 12,969 12,944 12,956 13,092 Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units, deferred stock units and performance shares 221 263 231 273 Diluted weighted average shares outstanding 13,190 13,207 13,187 13,365 |
Reportable Segment Information
Reportable Segment Information (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Revenue, Operating Income and Depreciation and Amortization | The table below presents segment revenue, operating income and depreciation and amortization, as follows: Three Months Ended Six Months Ended March 31, March 31, (Dollars in thousands) 2016 2015 2016 2015 Revenue: Medical Device $ 11,599 $ 10,562 $ 23,846 $ 21,198 In Vitro Diagnostics 5,100 3,853 9,394 7,422 Total revenue $ 16,699 $ 14,415 $ 33,240 $ 28,620 Operating income: Medical Device $ 2,322 $ 4,696 $ 6,152 $ 10,212 In Vitro Diagnostics 1,982 931 3,625 2,028 Total segment operating income 4,304 5,627 9,777 12,240 Corporate (2,064 ) (1,695 ) (3,598 ) (3,274 ) Total operating income $ 2,240 $ 3,932 $ 6,179 $ 8,966 Depreciation and amortization: Medical Device $ 968 $ 295 $ 1,457 $ 565 In Vitro Diagnostics 204 216 426 430 Corporate 215 195 414 394 Total depreciation and amortization $ 1,387 $ 706 $ 2,297 $ 1,389 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Basis Of Presentation [Line Items] | ||||
Royalties and license fees | $ 6,697 | $ 7,383 | $ 14,651 | $ 14,658 |
Out of Period Royalty Adjustment [Member] | ||||
Basis Of Presentation [Line Items] | ||||
Royalties and license fees | 1,100 | |||
Prior Year Period Royalty Adjustment [Member] | ||||
Basis Of Presentation [Line Items] | ||||
Royalties and license fees | $ 1,000 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) $ in Thousands, € in Millions | Jan. 08, 2016USD ($) | Nov. 20, 2015USD ($) | Nov. 20, 2015EUR (€) | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Nov. 20, 2015EUR (€) |
Business Acquisition [Line Items] | ||||||||
Acquisition transaction, integration and other costs | $ 640 | $ 3,131 | ||||||
Business acquisition, revenue recognized | 16,699 | $ 14,415 | 33,240 | $ 28,620 | ||||
Business acquisition, net loss recognized | 825 | 3,051 | 3,338 | 6,665 | ||||
Creagh Medical Ltd [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Outstanding common shares and voting shares percentage | 100.00% | 100.00% | ||||||
Payments to acquire business | 28,274 | |||||||
Upfront payments | $ 19,300 | € 18 | 18,417 | |||||
Contingent milestone payments | 12,800 | € 12 | ||||||
Payments for repurchase of securities | 800 | |||||||
Repayments of assumed debt | 800 | |||||||
Acquisition transaction, integration and other costs | 2,400 | 2,600 | ||||||
Creagh Medical Ltd [Member] | Maximum [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments to acquire business | $ 32,000 | € 30 | ||||||
NorMedix, Inc. [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Outstanding common shares and voting shares percentage | 100.00% | |||||||
Payments to acquire business | $ 14,000 | 10,740 | ||||||
Upfront payments | 7,000 | 7,000 | ||||||
Contingent milestone payments | $ 7,000 | |||||||
Acquisition transaction, integration and other costs | $ 300 | 300 | ||||||
Creagh Medical and NorMedix [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, revenue recognized | 1,600 | |||||||
Business acquisition, net loss recognized | (1,100) | |||||||
Creagh Medical and NorMedix [Member] | Pro Forma [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortization expense on intangible assets | 600 | 400 | 1,300 | |||||
Contingent consideration accretion expense | 400 | 300 | 800 | |||||
Non-recurring professional fees | 2,900 | |||||||
Tax effect impact | $ 200 | $ 300 | $ 300 |
Business Combinations - Summary
Business Combinations - Summary of Purchase Price (Detail) $ in Thousands, € in Millions | Jan. 08, 2016USD ($) | Nov. 20, 2015USD ($) | Nov. 20, 2015EUR (€) | Mar. 31, 2016USD ($) | Mar. 31, 2016EUR (€) | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | ||||||
Contingent consideration | $ 13,646 | $ 9,308 | ||||
Creagh Medical Ltd [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash Paid | $ 19,300 | € 18 | 18,417 | |||
Debt assumed | 793 | |||||
Contingent consideration | 9,064 | € 12 | ||||
Payments to acquire business | 28,274 | |||||
Less cash and cash equivalents acquired | (251) | |||||
Total purchase price, net of cash acquired | 28,023 | |||||
NorMedix, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash Paid | $ 7,000 | 7,000 | ||||
Contingent consideration | 3,740 | |||||
Payments to acquire business | $ 14,000 | 10,740 | ||||
Less cash and cash equivalents acquired | (17) | |||||
Total purchase price, net of cash acquired | $ 10,723 |
Business Combinations - Summa37
Business Combinations - Summary of Purchase Price Allocation to the Fair Values Assigned to the Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2016 | Sep. 30, 2015 | |
Business Acquisition [Line Items] | ||
Goodwill | $ 26,965 | $ 8,010 |
Developed Technology [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Useful Life (In years) | 11 years 9 months 18 days | |
Creagh Medical Ltd [Member] | ||
Business Acquisition [Line Items] | ||
Current assets | $ 708 | |
Property and equipment | 634 | |
Other noncurrent assets | 81 | |
Current liabilities | (923) | |
Deferred tax liabilities | (9) | |
Net assets acquired | 14,414 | |
Goodwill | 13,609 | |
Total purchase price, net of cash acquired | $ 28,023 | |
Creagh Medical Ltd [Member] | Minimum [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Useful Life (In years) | 1 year | |
Creagh Medical Ltd [Member] | Maximum [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Useful Life (In years) | 10 years | |
Creagh Medical Ltd [Member] | Developed Technology [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 1,787 | |
Estimated Useful Life (In years) | 7 years | |
Creagh Medical Ltd [Member] | In-Process Research and Development [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 942 | |
Creagh Medical Ltd [Member] | Customer Relationship [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 11,119 | |
Creagh Medical Ltd [Member] | Customer Relationship [Member] | Minimum [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Useful Life (In years) | 7 years | |
Creagh Medical Ltd [Member] | Customer Relationship [Member] | Maximum [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Useful Life (In years) | 10 years | |
Creagh Medical Ltd [Member] | Trade Name [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 75 | |
NorMedix, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Current assets | 98 | |
Property and equipment | 76 | |
Deferred tax asset | 746 | |
Other noncurrent assets | 12 | |
Deferred tax liabilities | (2,474) | |
Net assets acquired | 6,208 | |
Goodwill | 4,515 | |
Total purchase price, net of cash acquired | 10,723 | |
NorMedix, Inc. [Member] | Developed Technology [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 6,850 | |
NorMedix, Inc. [Member] | Developed Technology [Member] | Minimum [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Useful Life (In years) | 10 years | |
NorMedix, Inc. [Member] | Developed Technology [Member] | Maximum [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Useful Life (In years) | 14 years | |
NorMedix, Inc. [Member] | Customer Relationship [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 900 | |
Estimated Useful Life (In years) | 4 years |
Business Combinations - Pro For
Business Combinations - Pro Forma Financial Information (Detail) - Creagh Medical and NorMedix [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Business Acquisition [Line Items] | |||
Revenue | $ 15,267 | $ 34,289 | $ 30,063 |
Net income | $ 1,734 | $ 2,854 | $ 3,997 |
Per share amounts: | |||
Basic net income per share | $ 0.13 | $ 0.22 | $ 0.31 |
Diluted net income per share | $ 0.13 | $ 0.22 | $ 0.30 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) € in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2016EUR (€) | Sep. 30, 2015USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Contingent consideration liability | $ 13,646,000 | $ 9,308,000 | $ 13,646,000 | ||
Level 3 instruments | $ 0 | ||||
Interest accretion | 392,000 | $ 109,000 | |||
Minimum [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Percentage of Probability Achievement of Contingent Consideration payment. | 65.00% | ||||
Maximum [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Percentage of Probability Achievement of Contingent Consideration payment. | 95.00% | ||||
Contingent Consideration [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Foreign currency exchange loss | 400,000 | $ 600,000 | |||
Interest accretion | 400,000 | $ 500,000 | |||
Contingent Consideration [Member] | Minimum [Member] | Non Revenue Based Milestones [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Fair Value Inputs, Discount Rate | 5.90% | ||||
Contingent Consideration [Member] | Minimum [Member] | Revenue Based Milestones [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Fair Value Inputs, Discount Rate | 13.90% | ||||
Contingent Consideration [Member] | Maximum [Member] | Non Revenue Based Milestones [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Fair Value Inputs, Discount Rate | 7.00% | ||||
Contingent Consideration [Member] | Maximum [Member] | Revenue Based Milestones [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Fair Value Inputs, Discount Rate | 22.80% | ||||
Creagh Medical and NorMedix [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Contingent consideration liability | 13,646,000 | $ 13,646,000 | |||
Creagh Medical Ltd [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Contingent consideration liability | $ 9,064,000 | $ 9,064,000 | € 12 |
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 ($) | Mar. 31, 2016 | Sep. 30, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | $ 31,624 | $ 53,591 |
Liabilities measured at fair value | (13,646) | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 31,624 | 53,591 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (13,646) | |
Cash equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 31,624 | 53,591 |
Cash equivalents [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 31,624 | $ 53,591 |
Contingent consideration - current and noncurrent [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (13,646) | |
Contingent consideration - current and noncurrent [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liabilities measured at fair value | $ (13,646) |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Measurement of Contingent Consideration Liability (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | ||
Current and noncurrent contingent consideration liability | $ 9,308 | |
Additions | 3,517 | $ 9,064 |
Interest accretion | 392 | 109 |
Foreign currency translation | 429 | 135 |
Current and noncurrent contingent consideration liability | $ 13,646 | $ 9,308 |
Investments - Additional Inform
Investments - Additional Information (Detail) | Mar. 31, 2016USD ($) |
Investments Debt And Equity Securities [Abstract] | |
Available for sale investment | $ 0 |
Investments - Sales of Availabl
Investments - Sales of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Mar. 31, 2015 | Mar. 31, 2015 | |
Investments Debt And Equity Securities [Abstract] | ||
Proceeds from sales | $ 1,678 | $ 2,651 |
Gross realized losses | $ (1) | $ (8) |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Sep. 30, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,539 | $ 1,264 |
Finished products | 1,796 | 1,715 |
Total | $ 3,335 | $ 2,979 |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Sep. 30, 2015 |
Schedule of Investments [Line Items] | ||
Other assets, net | $ 669 | $ 479 |
ViaCyte, Inc. [Member] | ||
Schedule of Investments [Line Items] | ||
Other assets, net | 479 | $ 479 |
Other Noncurrent Assets [Member] | ||
Schedule of Investments [Line Items] | ||
Other assets, net | $ 190 |
Other Assets - Additional Infor
Other Assets - Additional Information (Detail) - ViaCyte, Inc. [Member] $ in Millions | 6 Months Ended |
Mar. 31, 2016USD ($) | |
Schedule of Investments [Line Items] | |
Equity method investment | $ 5.3 |
Other than temporary impairment loss on investment | 4.8 |
Cost method of investment | $ 0.5 |
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 | 6 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Intangible Assets [Line Items] | |||||
Amortization expense | $ 0.8 | $ 0.2 | $ 1.2 | $ 0.4 | |
Creagh Medical [Member] | |||||
Intangible Assets [Line Items] | |||||
Percentage of shares acquired | 100.00% | ||||
NorMedix [Member] | |||||
Intangible Assets [Line Items] | |||||
Percentage of shares acquired | 100.00% | 100.00% |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Sep. 30, 2015 | |
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Accumulated Amortization | $ (7,257) | $ (6,033) |
Intangible assets, Gross Carrying Amount | 31,316 | 8,793 |
Intangible assets, Net | $ 24,059 | $ 2,760 |
Customer Lists and Relationships [Member] | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Weighted Average Original Life (Years) | 7 years 9 months 18 days | |
Definite-lived intangible assets, Gross Carrying Amount | $ 17,830 | |
Definite-lived intangible assets, Accumulated Amortization | (5,271) | |
Definite-lived intangible assets, Net | $ 12,559 | |
Customer Lists [Member] | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Weighted Average Original Life (Years) | 9 years | |
Definite-lived intangible assets, Gross Carrying Amount | $ 5,132 | |
Definite-lived intangible assets, Accumulated Amortization | (4,363) | |
Definite-lived intangible assets, Net | $ 769 | |
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 | $ (530) | $ (530) |
Developed Technology [Member] | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Weighted Average Original Life (Years) | 11 years 9 months 18 days | |
Definite-lived intangible assets, Gross Carrying Amount | $ 8,746 | |
Definite-lived intangible assets, Accumulated Amortization | (219) | |
Definite-lived intangible assets, Net | $ 8,527 | |
Non-compete [Member] | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Weighted Average Original Life (Years) | 5 years | 5 years |
Definite-lived intangible assets, Gross Carrying Amount | $ 230 | $ 230 |
Definite-lived intangible assets, Accumulated Amortization | (35) | (12) |
Definite-lived intangible assets, Net | $ 195 | $ 218 |
Patents and Other [Member] | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Weighted Average Original Life (Years) | 16 years 6 months | 16 years 9 months 18 days |
Definite-lived intangible assets, Gross Carrying Amount | $ 2,321 | $ 2,321 |
Definite-lived intangible assets, Accumulated Amortization | (1,202) | (1,128) |
Definite-lived intangible assets, Net | 1,119 | 1,193 |
In-Process Research and Development [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Net | 999 | |
Definite-Lived Intangible Assets [Member] | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross Carrying Amount | 29,657 | 8,213 |
Definite-lived intangible assets, Accumulated Amortization | (7,257) | (6,033) |
Definite-lived intangible assets, Net | 22,400 | 2,180 |
Trademarks and Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Net | $ 660 | |
Trademarks [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Net | $ 580 |
Intangible Assets - Estimated A
Intangible Assets - Estimated Amortization Expense (Detail) $ in Thousands | Mar. 31, 2016USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Remainder of 2016 | $ 1,669 |
2,017 | 3,018 |
2,018 | 2,607 |
2,019 | 2,561 |
2,020 | 2,397 |
2,021 | $ 2,284 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Sep. 30, 2015 |
Goodwill [Line Items] | ||
Goodwill | $ 26,965 | $ 8,010 |
Creagh Medical Ltd [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 13,609 | |
NorMedix, Inc. [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 4,515 | |
In Vitro Diagnostics [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 8,010 | $ 8,010 |
Goodwill - Schedule Of Carrying
Goodwill - Schedule Of Carrying Amount of Goodwill by Segment (Detail) $ in Thousands | 6 Months Ended |
Mar. 31, 2016USD ($) | |
Goodwill [Line Items] | |
Balance as of September 30, 2015 | $ 8,010 |
Additions (See Note 3) | 18,124 |
Translation adjustment | 831 |
Balance as of March 31, 2016 | 26,965 |
In Vitro Diagnostics [Member] | |
Goodwill [Line Items] | |
Balance as of September 30, 2015 | 8,010 |
Additions (See Note 3) | 0 |
Translation adjustment | 0 |
Balance as of March 31, 2016 | 8,010 |
Medical Device [Member] | |
Goodwill [Line Items] | |
Balance as of September 30, 2015 | 0 |
Additions (See Note 3) | 18,124 |
Translation adjustment | 831 |
Balance as of March 31, 2016 | $ 18,955 |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock-based Compensation Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 1,215 | $ 686 | $ 1,899 | $ 1,211 |
Product costs [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 1 | 5 | 8 | 13 |
Research and development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 60 | 54 | 119 | 114 |
Selling, general and administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 1,154 | $ 627 | $ 1,772 | $ 1,084 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Stock-Based Compensation Activity [Line Items] | ||||||||
Unrecognized compensation costs related to non-vested awards | $ 4,500,000 | $ 4,500,000 | ||||||
Weighted average period for recognition of compensation costs related to non-vested awards | 2 years 4 months 24 days | |||||||
Performance share awards fully expensed | $ 1,800,000 | $ 1,800,000 | ||||||
Weighted average per share fair value of stock options | $ 6.52 | $ 8.72 | $ 6.85 | $ 7.23 | ||||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | ||||
Vesting period | 3 years | 3 years | ||||||
Total pre-tax intrinsic value of options exercised | $ 1,200,000 | $ 1,400,000 | ||||||
Restricted stock expense | $ 200,000 | 100,000 | ||||||
Stock compensation expenses recognized | $ 1,215,000 | 686,000 | $ 1,899,000 | 1,211,000 | ||||
Fiscal 2014 (2014 - 2016) [Member] | ||||||||
Stock-Based Compensation Activity [Line Items] | ||||||||
Performance period start year | 2,014 | |||||||
Performance period end year | 2,016 | |||||||
Fiscal 2015 (2015 - 2017) [Member] | ||||||||
Stock-Based Compensation Activity [Line Items] | ||||||||
Performance period start year | 2,015 | |||||||
Performance period end year | 2,017 | |||||||
Fiscal 2016 (2016 - 2018) [Member] | ||||||||
Stock-Based Compensation Activity [Line Items] | ||||||||
Performance period start year | 2,016 | |||||||
Performance period end year | 2,018 | |||||||
Scenario Forecast | ||||||||
Stock-Based Compensation Activity [Line Items] | ||||||||
Vesting period | 3 years | |||||||
Maximum [Member] | ||||||||
Stock-Based Compensation Activity [Line Items] | ||||||||
Total pre-tax intrinsic value of options exercised | 100,000 | $ 100,000 | ||||||
Restricted stock expense | 100,000 | 100,000 | ||||||
Nonqualified Stock Options [Member] | Employee [Member] | ||||||||
Stock-Based Compensation Activity [Line Items] | ||||||||
Vesting period | 4 years | |||||||
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] | ||||||||
Stock compensation expenses recognized | 700,000 | 200,000 | $ 1,000,000 | 300,000 | ||||
Issuance of shares | 42,458 | |||||||
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 2015 (2015 - 2017) [Member] | ||||||||
Stock-Based Compensation Activity [Line Items] | ||||||||
Fair value of performance shares for grants awarded | $ 900,000 | |||||||
Performance Shares [Member] | Scenario Forecast | Fiscal 2016 (2016 - 2018) [Member] | ||||||||
Stock-Based Compensation Activity [Line Items] | ||||||||
Fair value of performance shares for grants awarded | $ 1,300,000 | |||||||
Performance Shares [Member] | Maximum [Member] | ||||||||
Stock-Based Compensation Activity [Line Items] | ||||||||
Issuance of shares | 85,506 | |||||||
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] | ||||||||
Stock compensation expenses recognized | $ 100,000 | 100,000 | $ 100,000 | 100,000 | ||||
Common stock authorized, shares | 400,000 | 400,000 | ||||||
Annual compensation withheld | 10.00% | |||||||
Restricted Stock Units (RSUs) [Member] | 2009 Equity Incentive Plan [Member] | ||||||||
Stock-Based Compensation Activity [Line Items] | ||||||||
Number of stock units awarded | 18,877 | 23,736 | 23,736 | |||||
Number of stock units forfeited | 3,068 | |||||||
Restricted Stock Units (RSUs) [Member] | 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 | ||||
Deferred Stock Units [Member] | 2009 Equity Incentive Plan [Member] | ||||||||
Stock-Based Compensation Activity [Line Items] | ||||||||
Stock compensation expenses recognized | $ 100,000 | $ 100,000 | ||||||
Deferred Stock Units [Member] | 2009 Equity Incentive Plan [Member] | Director [Member] | ||||||||
Stock-Based Compensation Activity [Line Items] | ||||||||
Number of stock units awarded | 2,670 | 1,332 | 4,512 | 2,886 | ||||
Number of deferred stock units issued fair value | $ 49,000 | $ 100,000 | ||||||
Deferred Stock Units [Member] | Maximum [Member] | 2009 Equity Incentive Plan [Member] | ||||||||
Stock-Based Compensation Activity [Line Items] | ||||||||
Stock compensation expenses recognized | $ 100,000 | $ 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 | $ 100,000 | ||||||
Vesting Anniversary [Member] | Nonqualified Stock Options [Member] | Employee [Member] | ||||||||
Stock-Based Compensation Activity [Line Items] | ||||||||
Vesting percentage | 25.00% | |||||||
Performance Level [Member] | Minimum [Member] | ||||||||
Stock-Based Compensation Activity [Line Items] | ||||||||
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 | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Risk-free interest rates | 1.10% | 1.40% | 1.90% | 1.40% |
Expected life (years) | 4 years 8 months 12 days | 4 years 6 months | 4 years 7 months 6 days | 4 years 6 months |
Expected volatility | 37.80% | 43.20% | 36.80% | 43.30% |
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) | 6 Months Ended |
Mar. 31, 2016shares | |
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 |
Fiscal 2016 (2016 - 2018) [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Minimum Shares | 13,268 |
Target Shares | 66,338 |
Maximum Shares | 132,676 |
Revolving Credit Facility - Add
Revolving Credit Facility - Additional Information (Detail) - Revolving Credit Facility [Member] - USD ($) | Nov. 04, 2013 | Sep. 30, 2015 | Mar. 31, 2016 | Nov. 20, 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 | ||||
Common stock repurchased, Value | $ 20,000,000 | ||||
Debt outstanding | $ 0 | ||||
Stock Repurchase Plan [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Revolving credit facility amount | $ 30,000,000 | $ 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 | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income available to common shareholders | $ 825 | $ 3,051 | $ 3,338 | $ 6,665 |
Basic weighted average shares outstanding | 12,969 | 12,944 | 12,956 | 13,092 |
Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units, deferred stock units and performance shares | 221 | 263 | 231 | 273 |
Diluted weighted average shares outstanding | 13,190 | 13,207 | 13,187 | 13,365 |
Net Income Per Share Data - Add
Net Income Per Share Data - Additional Information (Detail) - USD ($) | Nov. 11, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Nov. 06, 2015 | Nov. 05, 2014 |
Earnings Loss Per Share [Line Items] | |||||||
Weighted average diluted shares outstanding excluded outstanding stock options | 900,000 | 300,000 | 800,000 | 500,000 | |||
Common stock outstanding in additional | $ 10,000,000 | ||||||
Accelerated Share Repurchase Program [Member] | |||||||
Earnings Loss Per Share [Line Items] | |||||||
Maximum payments for repurchase of common stock | $ 20,000,000 | $ 30,000,000 | |||||
Fair value of common stock | $ 16,000,000 | ||||||
Initial payment to bank reported as reduction in retained earnings | $ 4,000,000 | ||||||
Common stock repurchased, Shares | 847,864 | ||||||
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 | ||||||
Common stock repurchased, Shares | 758,143 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Sep. 30, 2015 | |
Income Tax Disclosure [Line Items] | |||||
Income tax provisions | $ 1,358 | $ 1,480 | $ 2,650 | $ 2,950 | |
Effective tax rates | 62.20% | 32.70% | 44.30% | 30.70% | |
U.S. federal statutory tax rate | 35.00% | 35.00% | 35.00% | 35.00% | |
Discrete tax benefit | $ 200 | $ 200 | |||
Permanent tax differences | $ 2,300 | 4,300 | |||
Unrecognized tax benefits excluding interest and penalties that would impact effective tax rate | $ 1,100 | $ 1,100 | $ 900 | ||
Intersect ENT [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Gain on sale of investment | $ 500 | $ 500 |
Amounts Reclassified Out of A60
Amounts Reclassified Out of Accumulated Other Comprehensive Income - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Amounts reclassified out of AOCI | $ 0 | $ 0 | ||
Maximum [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Amounts reclassified out of AOCI pre-tax basis | $ 300,000 | $ 300,000 |
Reportable Segment Informatio61
Reportable Segment Information - Additional Information (Detail) | 6 Months Ended |
Mar. 31, 2016Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Reportable Segment Informatio62
Reportable Segment Information - Segment Revenue, Operating Income and Depreciation and Amortization (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 16,699 | $ 14,415 | $ 33,240 | $ 28,620 |
Operating income | 2,240 | 3,932 | 6,179 | 8,966 |
Depreciation and amortization | 1,387 | 706 | 2,297 | 1,389 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 4,304 | 5,627 | 9,777 | 12,240 |
Operating Segments [Member] | Medical Device [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 11,599 | 10,562 | 23,846 | 21,198 |
Operating income | 2,322 | 4,696 | 6,152 | 10,212 |
Depreciation and amortization | 968 | 295 | 1,457 | 565 |
Operating Segments [Member] | In Vitro Diagnostics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 5,100 | 3,853 | 9,394 | 7,422 |
Operating income | 1,982 | 931 | 3,625 | 2,028 |
Depreciation and amortization | 204 | 216 | 426 | 430 |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | (2,064) | (1,695) | (3,598) | (3,274) |
Depreciation and amortization | $ 215 | $ 195 | $ 414 | $ 394 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - 6 months ended Mar. 31, 2016 | USD ($)€ / $shares | EUR (€)shares |
Commitments And Contingencies [Line Items] | ||
Additional shares of common stock to stockholders | shares | 480,059 | 480,059 |
Annual minimum payments for licenses | $ 227,100 | € 200,000 |
Exchange rate relating to license payment | € / $ | 1.1355 | |
License agreement commencement date | 2006-03 | 2006-03 |
Future minimum payments associated with license | $ | $ 2,700,000 | |
Patents [Member] | ||
Commitments And Contingencies [Line Items] | ||
Patent expiry date | 2027-09 | 2027-09 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Apr. 29, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 |
Subsequent Event [Line Items] | |||||
Royalties from prior periods | $ 6,697 | $ 7,383 | $ 14,651 | $ 14,658 | |
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Royalties from prior periods | $ 2,900 | ||||
Royalty revenue per share | $ 0.14 | ||||
Royalty payment period | 2009 through fiscal 2016 |