Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2016 | Jan. 31, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
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 | 13,266,526 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 30, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 17,653 | $ 24,987 |
Available-for-sale securities | 27,474 | 21,954 |
Accounts receivable, net of allowance for doubtful accounts of $10 and $19 as of December 31, 2016 and September 30, 2016, respectively | 6,504 | 6,869 |
Inventories | 3,472 | 3,579 |
Income tax receivable | 358 | 697 |
Prepaids and other | 1,183 | 472 |
Total Current Assets | 56,644 | 58,558 |
Property and equipment, net | 20,186 | 19,601 |
Deferred tax assets | 4,286 | 5,027 |
Intangible assets, net | 21,094 | 22,525 |
Goodwill | 25,694 | 26,555 |
Other assets | 721 | 628 |
Total Assets | 128,625 | 132,894 |
Current Liabilities: | ||
Accounts payable | 1,611 | 1,622 |
Accrued liabilities: | ||
Compensation | 1,364 | 5,418 |
Due to customers | 340 | 881 |
Accrued other | 1,563 | 1,109 |
Contingent consideration | 925 | 925 |
Deferred revenue | 131 | 180 |
Total Current Liabilities | 5,934 | 10,135 |
Contingent consideration, less current portion | 13,366 | 13,592 |
Deferred revenue, less current portion | 258 | 188 |
Other long-term liabilities | 1,884 | 2,146 |
Total Liabilities | 21,442 | 26,061 |
Commitments and Contingencies (Note 15) | ||
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; 13,268,530 and 13,208,443 shares issued and outstanding, respectively | 663 | 660 |
Additional paid-in capital | 7,009 | 6,754 |
Accumulated other comprehensive (loss) income | (935) | 1,273 |
Retained earnings | 100,446 | 98,146 |
Total Stockholders’ Equity | 107,183 | 106,833 |
Total Liabilities and Stockholders’ Equity | $ 128,625 | $ 132,894 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 30, 2016 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 10 | $ 19 |
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 | 13,268,530 | 13,208,443 |
Common stock, shares outstanding | 13,268,530 | 13,208,443 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue: | ||
Product sales | $ 7,701 | $ 7,181 |
Royalties and license fees | 8,001 | 7,954 |
Research, development and other | 2,059 | 1,406 |
Total revenue | 17,761 | 16,541 |
Operating costs and expenses: | ||
Product costs | 2,628 | 2,366 |
Research and development | 5,970 | 3,634 |
Selling, general and administrative | 4,862 | 3,648 |
Acquisition transaction, integration and other costs | 2,491 | |
Acquired intangible asset amortization | 596 | 354 |
Contingent consideration accretion expense | 437 | 109 |
Total operating costs and expenses | 14,493 | 12,602 |
Operating income | 3,268 | 3,939 |
Other income (loss): | ||
Investment income, net | 85 | 1 |
Foreign exchange gain (loss) | 674 | (135) |
Other income (loss), net | 759 | (134) |
Income before income taxes | 4,027 | 3,805 |
Income tax provision | (1,727) | (1,152) |
Net income | $ 2,300 | $ 2,653 |
Basic net income per share | $ 0.17 | $ 0.20 |
Diluted net income per share | $ 0.17 | $ 0.20 |
Weighted average number of shares outstanding: | ||
Basic | 13,200 | 12,966 |
Diluted | 13,446 | 13,186 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 2,300 | $ 2,653 |
Other comprehensive (loss) income: | ||
Unrealized holding gains (losses) on available-for-sale securities, net of tax | 46 | (2) |
Foreign currency translation adjustments | (2,254) | 408 |
Other comprehensive (loss) income | (2,208) | 406 |
Comprehensive income | $ 92 | $ 3,059 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities: | ||
Net income | $ 2,300 | $ 2,653 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,282 | 909 |
Stock-based compensation | 789 | 684 |
Contingent consideration accretion | 437 | 109 |
Unrealized foreign exchange (income) loss | (663) | 135 |
Deferred taxes | 742 | 753 |
Other | (5) | (3) |
Change in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | 345 | 2,194 |
Inventories | 73 | (83) |
Prepaids and other | (746) | (75) |
Accounts payable and accrued liabilities | (2,713) | (1,354) |
Income taxes | 82 | 356 |
Deferred revenue | 28 | |
Net cash provided by operating activities | 1,951 | 6,278 |
Investing Activities: | ||
Purchases of property and equipment | (1,545) | (384) |
Purchases of available-for-sale securities | (12,541) | |
Maturities of available-for-sale securities | 7,071 | |
Payments for acquisition, net of cash acquired | (18,166) | |
Net cash used in investing activities | (7,015) | (18,550) |
Financing Activities: | ||
Issuance of common stock | 13 | 10 |
Payments for taxes related to net share settlement of equity awards | (2,129) | (353) |
Payment of deferred financing costs | (38) | |
Payment of contingent consideration | (305) | |
Net cash used in financing activities | (2,154) | (648) |
Effect of exchange rate changes on cash | (116) | |
Net change in cash and cash equivalents | (7,334) | (12,920) |
Cash and Cash Equivalents: | ||
Beginning of period | 24,987 | 55,588 |
End of period | 17,653 | 42,668 |
Supplemental Information: | ||
Cash paid for income taxes | 897 | 42 |
Noncash transactions from investing and financing activities: | ||
Acquisition of property and equipment on account | 227 | 54 |
Deferred financing costs in accounts payable | 45 | |
Issuance of performance shares, restricted and deferred stock units | $ 2,414 | 1,073 |
Creagh Medical Ltd [Member] | ||
Operating Activities: | ||
Net income | (300) | |
Noncash transactions from investing and financing activities: | ||
Contingent consideration and debt assumed in Creagh Medical transaction | $ 9,857 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 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. These financial statements include some amounts that are based on management’s best estimates and judgments. These estimates may be adjusted as more information becomes available, and any adjustment could be significant. The impact of any change in estimates is included in the determination of net income in the period in which the change in estimate is identified. The results of operations for the three months ended December 31, 2016 are not necessarily indicative of the results that may be expected for the entire 2017 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, 2016, and footnotes thereto included in the Company’s Form 10-K as filed with the SEC on December 2, 2016. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | 2. New Accounting Pronouncements Accounting Standards to be Implemented 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) In February 2016, the FASB issued Accounting Standards Update ASU 2016-02, Leases (ASC Topic 842) In June 2016, the FASB issued ASU No 2016-13, Financial Instruments – Credit Losses (ASC Topic 326), Measurement of Credit Losses on Financial Statements In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments condensed In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment condensed Accounting Standards Implemented In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (ASC Topic 718): Improvements to Employee Share-Based Payment Accounting As a result of the adoption, the Company records excess tax benefits and certain tax deficiencies as income tax expense or benefit in the condensed consolidated statements of income, whereas such excess tax benefits or tax deficiencies were previously recorded in additional paid-in capital. As this guidance was applied retroactively to the beginning of the fiscal year ended September 30, 2016, previously reported quarterly income tax and net income for interim periods therein were adjusted for the effects of the adoption. This resulted in an adjustment to reduce the income tax provision and increase net income by $0.1 million in the three months ended December 31, 2015, with a corresponding increase in net income per basic and diluted share of $0.01 per share The guidance also requires presentation of excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity Prior to the adoption of ASU No. 2016-09, cash flows resulting from the tax benefits generated by tax deductions in excess of the compensation cost recognized for those options (excess tax benefits) are classified as financing cash flows. During the three months ended December 31, 2015, the Company realized tax benefits from stock options resulting in approximately $0.1 million of gross excess tax benefits, which are included as a component of cash flows from operating activities for the three months ended December 31, 2015 in the accompanying condensed consolidated statements of cash flows. This amount was previously reported as a component of cash flows from financing activities, but has been reclassified to conform to current accounting guidance. No other new accounting pronouncement issued or effective has had, or is expected to have, a material impact on the Company’s condensed consolidated financial statements. |
Business Combinations
Business Combinations | 3 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | 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, at their respective fair values as of the acquisition date. 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 acquisition was financed with cash on hand and contingent seller financing. 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 any, will occur in the quarter ending December 31, 2018. Total transaction, integration and other costs associated with the Creagh Medical acquisition aggregated $2.4 million for the quarter ended December 31, 2015. The operating results of Creagh Medical have been included in the Company’s Medical Device segment since the acquisition date. The Company realized $0.5 million of revenue and a loss of $0.3 million from the Creagh Medical operations for the three months ended December 31, 2015. 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 and packaging and regulatory capabilities to approved products for exclusive distribution. The purchase price of Creagh Medical consisted of the following: (Dollars in thousands) Cash paid $ 18,449 Debt assumed 761 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 final 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 in thousands) Estimated Useful Life (In years) Current assets $ 896 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 (942 ) N/A Deferred tax liabilities (9 ) N/A Net assets acquired 14,583 Goodwill 13,440 N/A Total purchase price, net of cash acquired $ 28,023 The Creagh Medical goodwill, which is a result of acquiring and retaining the Creagh Medical existing workforce and expected synergies from integrating their business into the Company’s Medical Device segment, is not deductible for tax purposes. 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 and contingent seller financing. The Company acquired NorMedix for up to $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 strengthened the Company’s vascular device expertise and Research and Development (“R&D”) capabilities and was a significant component of the Company’s strategy to offer whole-product solutions to medical device customers, while continuing its commitment to consistently deliver innovation in coating technologies. Total transaction, integration and other costs associated with the NorMedix acquisition aggregated $0.1 million for the three months ended December 31, 2015. The operating results for NorMedix have been included in the Medical Device segment since the acquisition date. The purchase price of NorMedix consisted of the following: (Dollars in thousands) Cash paid $ 6,905 Contingent consideration 3,520 Total purchase price 10,425 Less cash and cash equivalents acquired (17 ) Total purchase price, net of cash acquired $ 10,408 The following table summarizes the final allocation of the 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 in thousands) Estimated Useful Life (In years) Net current assets $ 113 N/A Property and equipment 60 N/A Developed technology 6,850 10.0-14.0 Customer relationships 900 4.0 Deferred tax asset 690 N/A Other noncurrent asset 13 N/A Accounts payable (187 ) N/A Deferred tax liabilities (2,483 ) N/A Net assets acquired 5,956 Goodwill 4,452 N/A Total purchase price, net of cash acquired $ 10,408 The NorMedix goodwill is a result of acquiring and retaining the NorMedix existing workforce and expected synergies from integrating their business into the Medical Device segment. The goodwill is not deductible for tax purposes. On a pro forma basis, as if the Creagh medical and NorMedix acquisitions had occurred as of the beginning of fiscal 2016, the Company’s consolidated revenues and net income would have been $17.6 million and $4.2 million for the three months ended December 31, 2015, with basic and diluted earnings per share of $0.32. This unaudited 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 $2.5 million, and tax effect impact of $0.3 million. 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. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 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) in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and also considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of nonperformance. Fair Value Hierarchy Accounting guidance on fair value measurements requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: Level 1 — Quoted (unadjusted) prices in active markets for identical assets or liabilities. The Company did not have any Level 1 assets as of December 31, 2016 and September 30, 2016. 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 December 31, 2016 and September 30, 2016 consisted of money market funds, commercial paper instruments and corporate bonds. 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. Level 3 liabilities at December 31, 2016 and September 30, 2016 consist of contingent consideration obligations for the achievement of revenue and value-creating milestones related to the acquisitions of Creagh Medical and NorMedix discussed in Note 3. 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 December 31, 2016: (Dollars in thousands) Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value as of December 31, 2016 Assets Cash equivalents $ — $ 13,775 $ — $ 13,775 Available-for-sale securities — 27,474 — 27,474 Total assets $ — $ 41,249 $ — $ 41,249 Liabilities Contingent consideration $ — $ — $ (14,291 ) $ (14,291 ) Total liabilities $ — $ — $ (14,291 ) $ (14,291 ) The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2016: (Dollars in thousands) Quoted Prices in 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, 2016 Assets Cash equivalents $ — $ 22,160 $ — $ 22,160 Available-for-sale securities — 21,954 $ 21,954 Total assets $ — $ 44,114 $ — $ 44,114 Liabilities Contingent consideration $ — $ — $ (14,517 ) $ (14,517 ) Total liabilities $ — $ — $ (14,517 ) $ (14,517 ) The following table summarizes the changes in the contingent consideration liabilities measured at fair value using Level 3 inputs for the three months ended December 31, 2016 and 2015: Three Months Ended December 31, (Dollars in thousands) 2016 2015 Beginning balance $ 14,517 $ — Additions — 9,064 Fair value adjustments — — Settlements — — Interest accretion 437 109 Foreign currency translation (gain) loss (663 ) 135 Ending balance $ 14,291 $ 9,308 There were no transfers of assets or liabilities to or from amounts measured using Level 3 fair value measurements during fiscal 2017 or 2016. Valuation Techniques The valuation techniques used to measure the fair value of assets are as follows: Cash equivalents — These assets are classified as Level 2 and are carried at historical cost which is a reasonable estimate of fair value because of the relatively short time between origination of the instrument and its expected realization. Available-for-sale securities — Fair market values for these assets are based on quoted vendor prices and broker pricing in active markets underlying the securities 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. 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. For the revenue-based milestones, the Company discounted forecasted revenue by 14.1% 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 were projected to have a 65-95% probability of achievement and related payments were discounted using the Company’s estimated cost of debt, or 5.6% to 6.7%. To the extent that actual results differ from these estimates, the fair value of the contingent consideration liabilities could change significantly. The contingent consideration liability related to the Creagh Medical acquisition is denominated in Euros and is not hedged. The Company recorded a foreign currency gain of $0.7 million and a loss of $0.1 million for the three months ended December 31, 2016 and 2015, respectively, related to this contingent consideration as this obligation was marked to period-end exchange rates. |
Investments
Investments | 3 Months Ended |
Dec. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | 5. Investments Investments consisted principally of commercial paper securities and are classified as available-for-sale as of December 31, 2016 and September 30, 2016. Available-for-sale securities are reported at fair value with unrealized gains and losses, net of tax, excluded from the condensed condensed condensed The amortized cost, unrealized holding gains and losses, and fair value of available-for-sale securities were as follows: December 31, 2016 (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper and corporate bonds $ 27,487 $ — $ (13 ) $ 27,474 Total $ 27,487 $ — $ (13 ) $ 27,474 September 30, 2016 (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper and corporate bonds $ 22,019 $ — $ (65 ) $ 21,954 Total $ 22,019 $ — $ (65 ) $ 21,954 The following table summarizes sales of available-for-sale debt securities: Three Months Ended December 31, (Dollars in thousands) 2016 2015 Proceeds from maturities $ 7,071 $ — Gross realized gains $ — $ — Gross realized losses $ — $ — |
Inventories
Inventories | 3 Months Ended |
Dec. 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: December 31, September 30, (Dollars in thousands) 2016 2016 Raw materials $ 1,724 $ 1,766 Work-in process 449 492 Finished products 1,299 1,321 Total $ 3,472 $ 3,579 |
Other Assets
Other Assets | 3 Months Ended |
Dec. 31, 2016 | |
Investments All Other Investments [Abstract] | |
Other Assets | 7. Other Assets Other assets consist of the following: December 31, September 30, (Dollars in thousands) 2016 2016 ViaCyte, Inc. $ 479 $ 479 Other noncurrent assets 242 149 Other assets, net $ 721 $ 628 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 | 3 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 8. Intangible Assets Intangible assets consist principally of acquired patents and technology, customer lists and relationships, licenses and trademarks. The Company recorded amortization expense of $0.6 million and $0.4 million for the three months ended December 31, 2016 and 2015, respectively. Intangible assets consisted of the following: December 31, 2016 (Dollars in thousands) Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 8.9 $ 16,979 $ (6,434 ) $ 10,545 Core technology 8.0 530 (530 ) — Developed technology 11.8 8,610 (800 ) 7,810 Non-compete 5.0 230 (69 ) 161 Patents and other 16.5 2,322 (1,312 ) 1,010 Subtotal 28,671 (9,145 ) 19,526 Unamortized intangible assets: In-process research and development 927 — 927 Trademarks and trade names 641 — 641 Total $ 30,239 $ (9,145 ) $ 21,094 September 30, 2016 (Dollars in thousands) Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 8.9 $ 17,692 $ (6,123 ) $ 11,569 Core technology 8.0 530 (530 ) — Developed technology 11.8 8,724 (618 ) 8,106 Non-compete 5.0 230 (58 ) 172 Patents and other 16.5 2,321 (1,275 ) 1,046 Subtotal 29,497 (8,604 ) 20,893 Unamortized intangible assets: In-process research and development 987 — 987 Trademarks and trade names 645 — 645 Total $ 31,129 $ (8,604 ) $ 22,525 Based on the intangible assets in service as of December 31, 2016, excluding any possible future amortization associated with acquired in-process research and development (“IPR&D”), which has not met technological feasibility as of December 31, 2016, estimated amortization expense for the remainder of fiscal 2017 and each of the next five fiscal years is as follows: (Dollars in thousands) Remainder of 2017 $ 1,864 2018 2,439 2019 2,439 2020 2,264 2021 2,125 2022 2,085 Future amortization amounts presented above are estimates. Actual future amortization expense may be different as a result of future acquisitions, impairments, completion or abandonment of IPR&D intangible assets, 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 | 3 Months Ended |
Dec. 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 as of December 31, 2016 and September 30, 2016 totaled $25.7 million and $26.6 million, respectively. Goodwill in the Medical Device reporting unit represents the gross value from the acquisitions of Creagh Medical and NorMedix in fiscal 2016. Goodwill in the In Vitro Diagnostics reporting unit represents the gross value from the acquisition of BioFX Laboratories, Inc. (“BioFX”) in fiscal 2007. Goodwill was not impaired in either reporting unit based on the outcome of the fiscal 2016 annual impairment test, and there have been no events or circumstances that have occurred in the first quarter of fiscal 2017 to indicate that goodwill has been impaired. The change in the carrying amount of goodwill by segment for the three months ended December 31, 2016 was as follows: (Dollars in thousands) In Vitro Diagnostics Medical Device Total Balance as of September 30, 2016 $ 8,010 $ 18,545 $ 26,555 Translation adjustment — (861 ) (861 ) Balance as of December 31, 2016 $ 8,010 $ 17,684 $ 25,694 |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Dec. 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 December 31, (Dollars in thousands) 2016 2015 Product costs $ 13 $ 6 Research and development 125 59 Selling, general and administrative 651 619 Total $ 789 $ 684 As of December 31, 2016, approximately $6.2 million of total unrecognized compensation costs related to non-vested awards is expected to be recognized over a weighted average period of approximately 2.5 years. The unrecognized compensation costs above include $2.6 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 December 31, 2016 and 2015 were $7.59 and $6.87, respectively. The assumptions used as inputs in the model were as follows: Three Months Ended December 31, 2016 2015 Risk-free interest rates 1.7 % 2.0 % Expected life (years) 4.6 4.6 Expected volatility 34.4 % 36.7 % Dividend yield 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 estimated 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 stock-based compensation table above includes stock option expenses recognized related to these awards, which totaled $0.3 million and $0.3 million during the three months ended December 31, 2016 and 2015, respectively. The total pre-tax intrinsic value of options exercised during the three months ended December 31, 2016 and 2015 was less than $0.1 million in each period. The intrinsic value represents the difference between the average exercise price and the fair market value of the Company’s common stock on the last day of the respective fiscal period end. 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 $0.1 million in each of the three months ended December 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 revenue and cumulative earnings before interest, income taxes, depreciation and amortization (“EBITDA”) for the three-year performance periods for awards granted in fiscal 2015 (2015 – 2017), fiscal 2016 (2016 – 2018) and fiscal 2017 (2017 – 2019). 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 each performance period, subject to Committee approval and verification of results. Awards granted in fiscal 2014 were finalized in the three months ended December 31, 2016 and resulted in the issuance of 38,505 shares (maximum was 78,606 shares) based on the performance objectives relative to actual results achieved during the performance period. The per share compensation cost for each award is fixed on the grant date. Compensation expense is 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 and the related impact on the number of Performance Shares expected to vest. The stock-based compensation expense table includes the Performance Shares expenses recognized related to these awards, which totaled $0.2 million for both the three months ended December 31, 2016 and 2015. The fair values of the Performance Shares, at target, were $1.2 million, $1.3 million and $0.9 million in each fiscal year for awards granted in fiscal 2017, 2016 and 2015, 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 Shares Fiscal 2015 – 2017 8,440 42,199 84,398 Fiscal 2016 – 2018 13,268 66,338 132,676 Fiscal 2017 – 2019 10,437 52,185 104,370 1999 Employee Stock Purchase Plan Under the 1999 Employee Stock Purchase Plan (“Stock Purchase Plan”), the Company is authorized to issue up to 600,000 shares of common stock. All full-time and part-time U.S. 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 December 31, 2016 and September 30, 2016, 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 months ended December 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 During the three months ended December 31, 2016 and 2015, the Company awarded 6,570 and 8,916 restricted stock units (“RSUs”), respectively, under the 2009 Equity Incentive Plan to non-employee directors and certain key employees in foreign jurisdictions. Forfeiture of 74 RSUs occurred in the first quarter of fiscal 2017. As of December 31, 2016 and September 30, 2016, 35,378 and 32,101 RSUs were outstanding, respectively, with an estimated fair market value of $0.9 million for both periods. RSU awards are not considered issued or outstanding common stock of the Company until they vest. The estimated fair value of the RSUs 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 both the three months ended December 31, 2016 and 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. During the three months ended December 31, 2016 and 2015, 1,971 and 1,842 units, respectively, were issued with a total fair value of less than $0.1 million in each period. As of December 31, 2016 and September 30, 2016 |
Revolving Credit Facility
Revolving Credit Facility | 3 Months Ended |
Dec. 31, 2016 | |
Text Block [Abstract] | |
Revolving Credit Facility | 11. Revolving Credit Facility On November 2, 2016, the Company amended and restated the revolving credit facility. The new agreement increased the available principal to $30.0 million and extended the maturity of the previous facility by three years to November 2019. In addition, the agreement includes a $5.0 million multi-currency overdraft facility in Ireland. Borrowings under the credit facility, if any, will bear interest at a benchmark rate plus a margin ranging from 1.00% to 1.75% based on the Company’s leverage ratio, as defined in the loan agreement. A facility fee is payable quarterly on unused commitments at a rate of 0.15% per annum. The Company has the option to increase the credit facility in increments of $5.0 million up to an additional $20.0 million, subject to approval of the lender. The Company’s obligations under the credit facility are secured by substantially all of its assets, other than intellectual property and real estate, as well as the majority of its equity interest in its subsidiaries. In connection with the credit facility, the Company is required to comply with certain financial and non-financial covenants. As of December 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 | 3 Months Ended |
Dec. 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 (in thousands): Three Months Ended December 31, 2016 2015 Net income available to common shareholders $ 2,300 $ 2,653 Basic weighted average shares outstanding 13,200 12,966 Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units, deferred stock units and performance shares 246 220 Diluted weighted average shares outstanding 13,446 13,186 The calculation of weighted average diluted shares outstanding excludes outstanding stock options associated with the right to purchase 0.3 million and 0.4 million shares of common stock for the three months ended December 31, 2016 and 2015, respectively, as their inclusion would have had an antidilutive effect on diluted net income per share. The Company’s Board of Directors has authorized the repurchase of up to $30.0 million of the Company’s outstanding common stock. This authorization does not have an expiration date. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes The Company recorded income tax provisions of $1.7 million and $1.2 million for the three months ended December 31, 2016 and 2015, respectively, representing effective tax rates of 42.9% and 30.3%, respectively. The Company’s effective tax reflects the impact of state income taxes, permanent tax items and discrete tax benefits. The effective income tax rate for the three month periods ended December 31, 2016 and 2015 The total amount of unrecognized tax benefits, excluding interest and penalties that, if recognized, would affect the effective tax rate is $1.2 million as of both December 31, 2016 and September 30, 2016. Currently, the Company does not expect the liability for unrecognized tax benefits to change significantly in the next 12 months with the above balances classified on the condensed consolidated balance sheets in other long-term liabilities. Interest and penalties related to unrecognized tax benefits are recorded in income tax provision. The Company files income tax returns, including returns for its subsidiaries, in the U.S. federal jurisdiction and in various state jurisdictions as well as several non-U.S. jurisdictions. Uncertain tax positions are related to tax years that remain subject to examination. The Internal Revenue Service (“IRS”) completed an examination of the Company’s U.S. income tax return for fiscal 2012 in the fourth quarter of fiscal 2014 with a payment made associated with a timing adjustment. U.S. income tax returns for years prior to fiscal 2013 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 2006. For tax returns for non-U.S. jurisdictions, the Company is no longer subject to income tax examination for years prior to 2011. Additionally, the Company has been indemnified of liability for any taxes relating to Creagh Medical and NorMedix for periods prior to the respective acquisition dates, pursuant to the terms of the related share purchase agreements. As of December 31, 2016 and September 30, 2016 there were no undistributed earnings in foreign subsidiaries. |
Segment and Geographical Inform
Segment and Geographical Information | 3 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | 14. Segment and Geographical Information The Company’s management evaluates performance and allocates resources based on reported results for two reportable segments, based on the criteria set forth in FASB ASC Topic 280, Segment Reporting During fiscal 2016, the Company acquired Creagh Medical and NorMedix, which are included in the Medical Device segment subsequent to the respective acquisition dates, as further discussed in Note 3. The tables below present segment revenue, operating income and depreciation and amortization, as follows: Three Months Ended December 31, (Dollars in thousands) 2016 2015 Revenue: Medical Device $ 13,757 $ 12,247 In Vitro Diagnostics 4,004 4,294 Total revenue $ 17,761 $ 16,541 Operating income: Medical Device $ 3,719 $ 3,830 In Vitro Diagnostics 1,456 1,643 Total segment operating income 5,175 5,473 Corporate (1,907 ) (1,534 ) Total operating income $ 3,268 $ 3,939 Depreciation and amortization: Medical Device $ 1,004 $ 487 In Vitro Diagnostics 103 222 Corporate 175 200 Total depreciation and amortization $ 1,282 $ 909 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 or significant to the decision making process. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. 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. 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 $211,000 using a euro to US dollar exchange rate of 1.0536 to the Euro as of December 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. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | Accounting Standards to be Implemented 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) In February 2016, the FASB issued Accounting Standards Update ASU 2016-02, Leases (ASC Topic 842) In June 2016, the FASB issued ASU No 2016-13, Financial Instruments – Credit Losses (ASC Topic 326), Measurement of Credit Losses on Financial Statements In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments condensed In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment condensed Accounting Standards Implemented In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (ASC Topic 718): Improvements to Employee Share-Based Payment Accounting As a result of the adoption, the Company records excess tax benefits and certain tax deficiencies as income tax expense or benefit in the condensed consolidated statements of income, whereas such excess tax benefits or tax deficiencies were previously recorded in additional paid-in capital. As this guidance was applied retroactively to the beginning of the fiscal year ended September 30, 2016, previously reported quarterly income tax and net income for interim periods therein were adjusted for the effects of the adoption. This resulted in an adjustment to reduce the income tax provision and increase net income by $0.1 million in the three months ended December 31, 2015, with a corresponding increase in net income per basic and diluted share of $0.01 per share The guidance also requires presentation of excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity Prior to the adoption of ASU No. 2016-09, cash flows resulting from the tax benefits generated by tax deductions in excess of the compensation cost recognized for those options (excess tax benefits) are classified as financing cash flows. During the three months ended December 31, 2015, the Company realized tax benefits from stock options resulting in approximately $0.1 million of gross excess tax benefits, which are included as a component of cash flows from operating activities for the three months ended December 31, 2015 in the accompanying condensed consolidated statements of cash flows. This amount was previously reported as a component of cash flows from financing activities, but has been reclassified to conform to current accounting guidance. No other new accounting pronouncement issued or effective has had, or is expected to have, a material impact on the Company’s condensed consolidated financial statements. |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Dec. 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 $ 18,449 Debt assumed 761 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 final 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 in thousands) Estimated Useful Life (In years) Current assets $ 896 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 (942 ) N/A Deferred tax liabilities (9 ) N/A Net assets acquired 14,583 Goodwill 13,440 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 $ 6,905 Contingent consideration 3,520 Total purchase price 10,425 Less cash and cash equivalents acquired (17 ) Total purchase price, net of cash acquired $ 10,408 |
Schedule of Purchase Price to the Fair Values Assigned to the Assets Acquired and Liabilities Assumed | The following table summarizes the final allocation of the 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 in thousands) Estimated Useful Life (In years) Net current assets $ 113 N/A Property and equipment 60 N/A Developed technology 6,850 10.0-14.0 Customer relationships 900 4.0 Deferred tax asset 690 N/A Other noncurrent asset 13 N/A Accounts payable (187 ) N/A Deferred tax liabilities (2,483 ) N/A Net assets acquired 5,956 Goodwill 4,452 N/A Total purchase price, net of cash acquired $ 10,408 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 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 December 31, 2016: (Dollars in thousands) Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value as of December 31, 2016 Assets Cash equivalents $ — $ 13,775 $ — $ 13,775 Available-for-sale securities — 27,474 — 27,474 Total assets $ — $ 41,249 $ — $ 41,249 Liabilities Contingent consideration $ — $ — $ (14,291 ) $ (14,291 ) Total liabilities $ — $ — $ (14,291 ) $ (14,291 ) The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2016: (Dollars in thousands) Quoted Prices in 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, 2016 Assets Cash equivalents $ — $ 22,160 $ — $ 22,160 Available-for-sale securities — 21,954 $ 21,954 Total assets $ — $ 44,114 $ — $ 44,114 Liabilities Contingent consideration $ — $ — $ (14,517 ) $ (14,517 ) Total liabilities $ — $ — $ (14,517 ) $ (14,517 ) |
Schedule of Contingent Consideration Liabilities Measured at Fair Value | The following table summarizes the changes in the contingent consideration liabilities measured at fair value using Level 3 inputs for the three months ended December 31, 2016 and 2015: Three Months Ended December 31, (Dollars in thousands) 2016 2015 Beginning balance $ 14,517 $ — Additions — 9,064 Fair value adjustments — — Settlements — — Interest accretion 437 109 Foreign currency translation (gain) loss (663 ) 135 Ending balance $ 14,291 $ 9,308 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Amortized Cost, Unrealized Holding Gains and (Losses) and Fair Value of Available-for-sale Securities | The amortized cost, unrealized holding gains and losses, and fair value of available-for-sale securities were as follows: December 31, 2016 (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper and corporate bonds $ 27,487 $ — $ (13 ) $ 27,474 Total $ 27,487 $ — $ (13 ) $ 27,474 September 30, 2016 (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper and corporate bonds $ 22,019 $ — $ (65 ) $ 21,954 Total $ 22,019 $ — $ (65 ) $ 21,954 |
Sales of Available-for-Sale Debt Securities | The following table summarizes sales of available-for-sale debt securities: Three Months Ended December 31, (Dollars in thousands) 2016 2015 Proceeds from maturities $ 7,071 $ — Gross realized gains $ — $ — Gross realized losses $ — $ — |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consisted of the following components: December 31, September 30, (Dollars in thousands) 2016 2016 Raw materials $ 1,724 $ 1,766 Work-in process 449 492 Finished products 1,299 1,321 Total $ 3,472 $ 3,579 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Investments All Other Investments [Abstract] | |
Summary of Other Assets | Other assets consist of the following: December 31, September 30, (Dollars in thousands) 2016 2016 ViaCyte, Inc. $ 479 $ 479 Other noncurrent assets 242 149 Other assets, net $ 721 $ 628 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of the following: December 31, 2016 (Dollars in thousands) Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 8.9 $ 16,979 $ (6,434 ) $ 10,545 Core technology 8.0 530 (530 ) — Developed technology 11.8 8,610 (800 ) 7,810 Non-compete 5.0 230 (69 ) 161 Patents and other 16.5 2,322 (1,312 ) 1,010 Subtotal 28,671 (9,145 ) 19,526 Unamortized intangible assets: In-process research and development 927 — 927 Trademarks and trade names 641 — 641 Total $ 30,239 $ (9,145 ) $ 21,094 September 30, 2016 (Dollars in thousands) Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 8.9 $ 17,692 $ (6,123 ) $ 11,569 Core technology 8.0 530 (530 ) — Developed technology 11.8 8,724 (618 ) 8,106 Non-compete 5.0 230 (58 ) 172 Patents and other 16.5 2,321 (1,275 ) 1,046 Subtotal 29,497 (8,604 ) 20,893 Unamortized intangible assets: In-process research and development 987 — 987 Trademarks and trade names 645 — 645 Total $ 31,129 $ (8,604 ) $ 22,525 |
Estimated Amortization Expense | Based on the intangible assets in service as of December 31, 2016, excluding any possible future amortization associated with acquired in-process research and development (“IPR&D”), which has not met technological feasibility as of December 31, 2016, estimated amortization expense for the remainder of fiscal 2017 and each of the next five fiscal years is as follows: (Dollars in thousands) Remainder of 2017 $ 1,864 2018 2,439 2019 2,439 2020 2,264 2021 2,125 2022 2,085 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Dec. 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 three months ended December 31, 2016 was as follows: (Dollars in thousands) In Vitro Diagnostics Medical Device Total Balance as of September 30, 2016 $ 8,010 $ 18,545 $ 26,555 Translation adjustment — (861 ) (861 ) Balance as of December 31, 2016 $ 8,010 $ 17,684 $ 25,694 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Dec. 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 December 31, (Dollars in thousands) 2016 2015 Product costs $ 13 $ 6 Research and development 125 59 Selling, general and administrative 651 619 Total $ 789 $ 684 |
Assumptions Used in Stock Option Plans | The assumptions used as inputs in the model were as follows: Three Months Ended December 31, 2016 2015 Risk-free interest rates 1.7 % 2.0 % Expected life (years) 4.6 4.6 Expected volatility 34.4 % 36.7 % Dividend yield 0.0 % 0.0 % |
Schedule of Fair Value at the Date of Grant | The aggregate number of shares that could be awarded to our executives if the minimum, target and maximum performance goals are met, based on the fair value at the date of grant is as follows: Performance Period Minimum Shares Target Shares Maximum Shares Fiscal 2015 – 2017 8,440 42,199 84,398 Fiscal 2016 – 2018 13,268 66,338 132,676 Fiscal 2017 – 2019 10,437 52,185 104,370 |
Net Income Per Share Data (Tabl
Net Income Per Share Data (Tables) | 3 Months Ended |
Dec. 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 (in thousands): Three Months Ended December 31, 2016 2015 Net income available to common shareholders $ 2,300 $ 2,653 Basic weighted average shares outstanding 13,200 12,966 Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units, deferred stock units and performance shares 246 220 Diluted weighted average shares outstanding 13,446 13,186 |
Segment and Geographical Info32
Segment and Geographical Information (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Revenue, Operating Income and Depreciation and Amortization | The tables below present segment revenue, operating income and depreciation and amortization, as follows: Three Months Ended December 31, (Dollars in thousands) 2016 2015 Revenue: Medical Device $ 13,757 $ 12,247 In Vitro Diagnostics 4,004 4,294 Total revenue $ 17,761 $ 16,541 Operating income: Medical Device $ 3,719 $ 3,830 In Vitro Diagnostics 1,456 1,643 Total segment operating income 5,175 5,473 Corporate (1,907 ) (1,534 ) Total operating income $ 3,268 $ 3,939 Depreciation and amortization: Medical Device $ 1,004 $ 487 In Vitro Diagnostics 103 222 Corporate 175 200 Total depreciation and amortization $ 1,282 $ 909 |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Detail) - ASU 2016-09 [Member] $ / shares in Units, $ in Millions | 3 Months Ended |
Dec. 31, 2015USD ($)$ / shares | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Adjustment to reduce income tax provision | $ 0.1 |
Adjustment to increase net income | $ 0.1 |
Increase in net income per basic and diluted share | $ / shares | $ 0.01 |
Excess tax benefit from stock-based compensation plans | $ 0.1 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) $ / shares in Units, $ in Thousands, € in Millions | Jan. 08, 2016USD ($) | Nov. 20, 2015USD ($) | Nov. 20, 2015EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)$ / shares | Nov. 20, 2015EUR (€) |
Business Acquisition [Line Items] | ||||||
Acquisition transaction, integration and other costs | $ 2,491 | |||||
Business acquisition, revenue recognized | $ 17,761 | 16,541 | ||||
Business acquisition, loss recognized | 2,300 | 2,653 | ||||
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 | 18,449 | |||
Contingent milestone payments | 12,800 | € 12 | ||||
Acquisition transaction, integration and other costs | 2,400 | |||||
Business acquisition, revenue recognized | 500 | |||||
Business acquisition, loss recognized | (300) | |||||
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 | 10,425 | |||||
Upfront payments | $ 7,000 | $ 6,905 | ||||
Contingent milestone payments | 7,000 | |||||
Acquisition transaction, integration and other costs | 100 | |||||
NorMedix, Inc. [Member] | Maximum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Payments to acquire business | $ 14,000 | |||||
Creagh Medical and NorMedix [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Consolidated pro forma revenue | 17,600 | |||||
Consolidated pro forma net income | $ 4,200 | |||||
Basic and diluted earnings per share | $ / shares | $ 0.32 | |||||
Creagh Medical and NorMedix [Member] | Unaudited Pro Forma [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Amortization expense on intangible assets | $ 400 | |||||
Contingent consideration accretion expense | 300 | |||||
Non-recurring professional fees | 2,500 | |||||
Tax effect impact | $ 300 |
Business Combinations - Summary
Business Combinations - Summary of Purchase Price (Detail) $ in Thousands, € in Millions | Jan. 08, 2016USD ($) | Nov. 20, 2015USD ($) | Nov. 20, 2015EUR (€) | Dec. 31, 2016USD ($) |
Creagh Medical Ltd [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash Paid | $ 19,300 | € 18 | $ 18,449 | |
Debt assumed | 761 | |||
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 | |||
NorMedix, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash Paid | $ 7,000 | 6,905 | ||
Contingent consideration | 3,520 | |||
Total purchase price | 10,425 | |||
Less cash and cash equivalents acquired | (17) | |||
Total purchase price, net of cash acquired | $ 10,408 |
Business Combinations - Summa36
Business Combinations - Summary of Purchase Price Allocation to the Fair Values Assigned to the Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Sep. 30, 2016 | |
Business Acquisition [Line Items] | ||
Goodwill | $ 25,694 | $ 26,555 |
Developed Technology [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Useful Life (In years) | 11 years 9 months 18 days | 11 years 9 months 18 days |
Creagh Medical Ltd [Member] | ||
Business Acquisition [Line Items] | ||
Current assets | $ 896 | |
Property and equipment | 634 | |
Other noncurrent assets | 81 | |
Current liabilities | (942) | |
Deferred tax liabilities | (9) | |
Net assets acquired | 14,583 | |
Goodwill | 13,440 | |
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 | 113 | |
Property and equipment | 60 | |
Deferred tax asset | 690 | |
Other noncurrent assets | 13 | |
Accounts payable | (187) | |
Deferred tax liabilities | (2,483) | |
Net assets acquired | 5,956 | |
Goodwill | 4,452 | |
Total purchase price, net of cash acquired | 10,408 | |
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 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | $ 41,249 | $ 44,114 |
Liabilities measured at fair value | (14,291) | (14,517) |
Available-for-sale securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 27,474 | 21,954 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 41,249 | 44,114 |
Significant Other Observable Inputs (Level 2) [Member] | Available-for-sale securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 27,474 | 21,954 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (14,291) | (14,517) |
Cash equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 13,775 | 22,160 |
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 | 13,775 | 22,160 |
Contingent consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (14,291) | (14,517) |
Contingent consideration [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liabilities measured at fair value | $ (14,291) | $ (14,517) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Contingent Consideration Liabilities Measured at Fair Value (Detail) - Contingent Consideration [Member] - Significant Unobservable Inputs (Level 3) [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ 14,517 | |
Additions | $ 9,064 | |
Interest accretion | 437 | 109 |
Foreign currency translation (gain) loss | (663) | 135 |
Ending balance | $ 14,291 | $ 9,308 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Transfers in or out Level 3, Assets | $ 0 | |||
Transfers in or out Level 3, Liabilities | $ 0 | |||
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 gain (loss) | $ 700,000 | $ (100,000) | ||
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 | 5.60% | |||
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 | 14.10% | |||
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 | 6.70% | |||
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% | |||
Scenario Forecast [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Transfers in or out Level 3, Assets | $ 0 | |||
Transfers in or out Level 3, Liabilities | $ 0 |
Investments - Amortized Cost, U
Investments - Amortized Cost, Unrealized Holding Gains and (Losses) and Fair Value of Available-for-sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 30, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 27,487 | $ 22,019 |
Unrealized Losses | (13) | (65) |
Fair Value | 27,474 | 21,954 |
Commercial paper and corporate bonds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 27,487 | 22,019 |
Unrealized Losses | (13) | (65) |
Fair Value | $ 27,474 | $ 21,954 |
Investments - Sales of Availabl
Investments - Sales of Available-for-Sale Securities (Detail) $ in Thousands | 3 Months Ended |
Dec. 31, 2016USD ($) | |
Investments Debt And Equity Securities [Abstract] | |
Proceeds from maturities | $ 7,071 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 30, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,724 | $ 1,766 |
Work-in process | 449 | 492 |
Finished products | 1,299 | 1,321 |
Total | $ 3,472 | $ 3,579 |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 30, 2016 |
Schedule of Investments [Line Items] | ||
Other assets, net | $ 721 | $ 628 |
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 | $ 242 | $ 149 |
Other Assets - Additional Infor
Other Assets - Additional Information (Detail) - ViaCyte, Inc. [Member] $ in Millions | 3 Months Ended |
Dec. 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 | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 0.6 | $ 0.4 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Sep. 30, 2016 | |
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Accumulated Amortization | $ (9,145) | $ (8,604) |
Intangible assets, Gross Carrying Amount | 30,239 | 31,129 |
Intangible assets, Net | $ 21,094 | $ 22,525 |
Customer Lists and Relationships [Member] | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Weighted Average Original Life (Years) | 8 years 10 months 24 days | 8 years 10 months 24 days |
Definite-lived intangible assets, Gross Carrying Amount | $ 16,979 | $ 17,692 |
Definite-lived intangible assets, Accumulated Amortization | (6,434) | (6,123) |
Definite-lived intangible assets, Net | $ 10,545 | $ 11,569 |
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 | 11 years 9 months 18 days |
Definite-lived intangible assets, Gross Carrying Amount | $ 8,610 | $ 8,724 |
Definite-lived intangible assets, Accumulated Amortization | (800) | (618) |
Definite-lived intangible assets, Net | $ 7,810 | $ 8,106 |
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 | (69) | (58) |
Definite-lived intangible assets, Net | $ 161 | $ 172 |
Patents and Other [Member] | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Weighted Average Original Life (Years) | 16 years 6 months | 16 years 6 months |
Definite-lived intangible assets, Gross Carrying Amount | $ 2,322 | $ 2,321 |
Definite-lived intangible assets, Accumulated Amortization | (1,312) | (1,275) |
Definite-lived intangible assets, Net | 1,010 | 1,046 |
Definite-Lived Intangible Assets [Member] | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross Carrying Amount | 28,671 | 29,497 |
Definite-lived intangible assets, Accumulated Amortization | (9,145) | (8,604) |
Definite-lived intangible assets, Net | 19,526 | 20,893 |
In-Process Research and Development [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Net | 927 | 987 |
Trademarks and Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Net | $ 641 | $ 645 |
Intangible Assets - Estimated A
Intangible Assets - Estimated Amortization Expense (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Remainder of 2017 | $ 1,864 |
2,018 | 2,439 |
2,019 | 2,439 |
2,020 | 2,264 |
2,021 | 2,125 |
2,022 | $ 2,085 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 30, 2016 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 25,694 | $ 26,555 |
Goodwill - Schedule Of Carrying
Goodwill - Schedule Of Carrying Amount of Goodwill by Segment (Detail) $ in Thousands | 3 Months Ended |
Dec. 31, 2016USD ($) | |
Goodwill [Line Items] | |
Balance as of September 30, 2016 | $ 26,555 |
Translation adjustment | (861) |
Balance as of December 31, 2016 | 25,694 |
In Vitro Diagnostics [Member] | |
Goodwill [Line Items] | |
Balance as of September 30, 2016 | 8,010 |
Balance as of December 31, 2016 | 8,010 |
Medical Device [Member] | |
Goodwill [Line Items] | |
Balance as of September 30, 2016 | 18,545 |
Translation adjustment | (861) |
Balance as of December 31, 2016 | $ 17,684 |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock-based Compensation Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 789 | $ 684 |
Product costs [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 13 | 6 |
Research and development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 125 | 59 |
Selling, general and administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 651 | $ 619 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Stock-Based Compensation Activity [Line Items] | |||||
Unrecognized compensation costs related to non-vested awards | $ 6,200,000 | ||||
Weighted average period for recognition of compensation costs related to non-vested awards | 2 years 6 months | ||||
Performance share awards fully expensed | $ 2,600,000 | ||||
Weighted average per share fair value of stock options | $ 7.59 | $ 6.87 | |||
Dividend yield | 0.00% | 0.00% | |||
Vesting period | 3 years | 3 years | |||
Stock compensation expenses recognized | $ 789,000 | $ 684,000 | |||
Fiscal 2015 (2015 - 2017) [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Performance period start year | 2,015 | ||||
Performance period end year | 2,017 | ||||
Fiscal 2016 (2016 - 2018) [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Performance period start year | 2,016 | ||||
Performance period end year | 2,018 | ||||
Fiscal 2017 (2017 - 2019) [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Performance period start year | 2,017 | ||||
Performance period end year | 2,019 | ||||
Scenario Forecast [Member] | |||||
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 | |||
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% | ||||
Nonqualified Stock Options [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Stock compensation expenses recognized | $ 300,000 | 300,000 | |||
Nonqualified Stock Options [Member] | Board of Director [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Stock option exercisable on a pro-rata basis | 1 year | ||||
Nonqualified Stock Options [Member] | 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 | ||||
Nonqualified Stock Options [Member] | Vesting Anniversary [Member] | Employee [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Vesting percentage | 25.00% | ||||
Restricted Stock Awards | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Restricted stock expense | $ 100,000 | 100,000 | |||
Performance Shares [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Stock compensation expenses recognized | $ 200,000 | 200,000 | |||
Issuance of shares | 38,505 | ||||
Performance Shares [Member] | Fiscal 2015 (2015 - 2017) [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Fair value of performance shares for grants awarded | $ 900,000 | ||||
Performance Shares [Member] | Fiscal 2016 (2016 - 2018) [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Fair value of performance shares for grants awarded | $ 1,300,000 | ||||
Performance Shares [Member] | Scenario Forecast [Member] | Fiscal 2017 (2017 - 2019) [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Fair value of performance shares for grants awarded | $ 1,200,000 | ||||
Performance Shares [Member] | Maximum [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Issuance of shares | 78,606 | ||||
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 | |||
1999 Employee Stock Purchase Plan [Member] | Maximum [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Stock compensation expenses recognized | $ 100,000 | $ 100,000 | |||
Common stock authorized, shares | 600,000 | ||||
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 | 6,570 | 8,916 | |||
Number of stock units forfeited | 74 | ||||
Number of stock units outstanding | 35,378 | 32,101 | |||
Number of stock units outstanding estimated fair value | $ 900,000 | $ 900,000 | |||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | 2009 Equity Incentive Plan [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Stock compensation expenses recognized | $ 100,000 | $ 100,000 | |||
Deferred Stock Units [Member] | 2009 Equity Incentive Plan [Member] | Director [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Number of stock units awarded | 1,971 | 1,842 | |||
Number of stock units outstanding | 23,048 | 21,077 | |||
Number of stock units outstanding estimated fair value | $ 600,000 | $ 600,000 | |||
Deferred Stock Units [Member] | Maximum [Member] | 2009 Equity Incentive Plan [Member] | Director [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Stock compensation expenses recognized | 100,000 | $ 100,000 | |||
Number of stock units outstanding estimated fair value | $ 100,000 | $ 100,000 |
Stock-based Compensation - Assu
Stock-based Compensation - Assumptions Used in Stock Option Plans (Detail) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Risk-free interest rates | 1.70% | 2.00% |
Expected life (years) | 4 years 7 months 6 days | 4 years 7 months 6 days |
Expected volatility | 34.40% | 36.70% |
Dividend yield | 0.00% | 0.00% |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Fair Value at the Date of Grant (Detail) | 3 Months Ended |
Dec. 31, 2016shares | |
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 |
Fiscal 2017 (2017 - 2019) [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Minimum Shares | 10,437 |
Target Shares | 52,185 |
Maximum Shares | 104,370 |
Revolving Credit Facility - Add
Revolving Credit Facility - Additional Information (Detail) - Revolving Credit Facility [Member] - USD ($) | Nov. 02, 2016 | Dec. 31, 2016 |
Line Of Credit Facility [Line Items] | ||
Revolving credit facility amount | $ 30,000,000 | |
Line of credit facility, expiration period | 3 years | |
Credit facility fee percentage | 0.15% | |
Line of credit facility expiration month and year | 2019-11 | |
Debt outstanding | $ 0 | |
Minimum [Member] | ||
Line Of Credit Facility [Line Items] | ||
Credit facility interest rate | 1.00% | |
Maximum [Member] | ||
Line Of Credit Facility [Line Items] | ||
Credit facility interest rate | 1.75% | |
Multi-currency Overdraft Facility [Member] | Ireland | ||
Line Of Credit Facility [Line Items] | ||
Line of credit facility additional borrowing capacity | $ 5,000,000 | |
Credit facility incremental of additional borrowings | 5,000,000 | |
Multi-currency Overdraft Facility [Member] | Maximum [Member] | Ireland | ||
Line Of Credit Facility [Line Items] | ||
Line of credit facility additional borrowing capacity | $ 20,000,000 |
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 | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Net income available to common shareholders | $ 2,300 | $ 2,653 |
Basic weighted average shares outstanding | 13,200 | 12,966 |
Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units, deferred stock units and performance shares | 246 | 220 |
Diluted weighted average shares outstanding | 13,446 | 13,186 |
Net Income Per Share Data - Add
Net Income Per Share Data - Additional Information (Detail) - USD ($) shares in Millions | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Nov. 05, 2014 | |
Earnings Loss Per Share [Line Items] | |||
Weighted average diluted shares outstanding excluded outstanding stock options | 0.3 | 0.4 | |
Accelerated Share Repurchase Program [Member] | |||
Earnings Loss Per Share [Line Items] | |||
Maximum payments for repurchase of common stock | $ 30,000,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income tax provisions | $ 1,727,000 | $ 1,152,000 | |
Effective tax rates | 42.90% | 30.30% | |
U.S. federal statutory tax rate | 35.00% | 35.00% | |
Unrecognized tax benefits excluding interest and penalties that would impact effective tax rate | $ 1,200,000 | $ 1,200,000 | |
Undistributed earnings in foreign subsidiaries | $ 0 | $ 0 |
Segment and Geographical Info58
Segment and Geographical Information - Additional Information (Detail) | 3 Months Ended |
Dec. 31, 2016Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment and Geographical Info59
Segment and Geographical Information - Segment Revenue, Operating Income and Depreciation and Amortization (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 17,761 | $ 16,541 |
Operating income | 3,268 | 3,939 |
Depreciation and amortization | 1,282 | 909 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income | 5,175 | 5,473 |
Operating Segments [Member] | Medical Device [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 13,757 | 12,247 |
Operating income | 3,719 | 3,830 |
Depreciation and amortization | 1,004 | 487 |
Operating Segments [Member] | In Vitro Diagnostics [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 4,004 | 4,294 |
Operating income | 1,456 | 1,643 |
Depreciation and amortization | 103 | 222 |
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income | (1,907) | (1,534) |
Depreciation and amortization | $ 175 | $ 200 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended | |
Dec. 31, 2016USD ($)€ / $ | Dec. 31, 2016EUR (€) | |
Commitments And Contingencies [Line Items] | ||
License agreement commencement date | 2006-03 | 2006-03 |
Annual minimum payments for licenses | $ 211,000 | € 200,000 |
Exchange rate relating to license payment | € / $ | 1.0536 | |
Future minimum payments associated with license | $ | $ 2,700,000 | |
Patents [Member] | ||
Commitments And Contingencies [Line Items] | ||
Patent expiry date | 2027-09 | 2027-09 |