Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Nov. 25, 2017 | Mar. 31, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SRDX | ||
Entity Registrant Name | SURMODICS INC | ||
Entity Central Index Key | 924,717 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 13,098,716 | ||
Entity Public Float | $ 176 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 16,534 | $ 24,987 |
Available-for-sale securities | 31,802 | 21,954 |
Accounts receivable, net of allowance for doubtful accounts of $230 and $19 as of September 30, 2017 and 2016, respectively | 7,211 | 6,869 |
Inventories | 3,516 | 3,579 |
Income tax receivable | 599 | 697 |
Prepaids and other | 1,221 | 472 |
Total Current Assets | 60,883 | 58,558 |
Property and equipment, net | 22,942 | 19,601 |
Deferred income taxes | 4,027 | 5,027 |
Intangible assets, net | 20,562 | 22,525 |
Goodwill | 27,282 | 26,555 |
Other assets | 897 | 628 |
Total Assets | 136,593 | 132,894 |
Current Liabilities: | ||
Accounts payable | 2,396 | 1,622 |
Accrued liabilities: | ||
Compensation | 3,822 | 5,418 |
Accrued other | 1,835 | 2,170 |
Contingent consideration | 1,750 | 925 |
Total Current Liabilities | 9,803 | 10,135 |
Contingent consideration, less current portion | 13,114 | 13,592 |
Other long-term liabilities | 2,119 | 2,334 |
Total Liabilities | 25,036 | 26,061 |
Commitments and Contingencies (Note 11) | ||
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; 13,094,988 and 13,208,443 shares issued and outstanding, as of September 30, 2017 and 2016, respectively | 655 | 660 |
Additional paid-in capital | 5,413 | 6,754 |
Accumulated other comprehensive income | 3,417 | 1,273 |
Retained earnings | 102,072 | 98,146 |
Total Stockholders’ Equity | 111,557 | 106,833 |
Total Liabilities and Stockholders’ Equity | $ 136,593 | $ 132,894 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 230 | $ 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 | 13,094,988 | 13,208,443 |
Common stock, shares outstanding | 13,094,988 | 13,208,443 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenue: | |||
Product sales | $ 32,790 | $ 30,999 | $ 24,925 |
Royalties and license fees | 31,787 | 33,203 | 31,763 |
Research, development and other | 8,535 | 7,164 | 5,210 |
Total revenue | 73,112 | 71,366 | 61,898 |
Operating costs and expenses: | |||
Product costs | 11,422 | 10,908 | 8,619 |
Research and development | 31,817 | 18,498 | 16,165 |
Selling, general and administrative | 20,478 | 18,000 | 14,906 |
Acquisition transaction, integration and other costs | 3,187 | ||
Acquired intangible asset amortization | 2,419 | 2,422 | 619 |
Contingent consideration accretion (gain) expense | (127) | 1,492 | |
Claim settlement | 2,500 | ||
Total operating costs and expenses | 66,009 | 54,507 | 42,809 |
Operating income | 7,103 | 16,859 | 19,089 |
Other (loss) income: | |||
Investment income, net | 390 | 63 | 156 |
Foreign exchange loss | (504) | (481) | |
Impairment loss on strategic investment | (1,500) | ||
Gains on strategic investments and other | 44 | 507 | 496 |
Other (loss) income | (70) | 89 | (848) |
Income before income taxes | 7,033 | 16,948 | 18,241 |
Income tax provision | (3,107) | (6,963) | (6,294) |
Net income | $ 3,926 | $ 9,985 | $ 11,947 |
Basic net income per share: | $ 0.30 | $ 0.77 | $ 0.92 |
Diluted net income per share: | $ 0.29 | $ 0.76 | $ 0.90 |
Weighted average number of shares outstanding: | |||
Basic | 13,153 | 12,998 | 13,029 |
Diluted | 13,389 | 13,219 | 13,289 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 3,926 | $ 9,985 | $ 11,947 |
Other comprehensive income (loss): | |||
Unrealized holding gains (losses) on available-for-sale securities, net of tax | 49 | (68) | (1,208) |
Reclassification adjustment for realized gain included in net income, net of tax | (315) | ||
Foreign currency translation adjustments | 2,095 | 1,336 | |
Other comprehensive income (loss) | 2,144 | 1,268 | (1,523) |
Comprehensive income | $ 6,070 | $ 11,253 | $ 10,424 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income [Member] | Retained Earnings [Member] |
Beginning balance at Sep. 30, 2014 | $ 98,751 | $ 680 | $ 2,662 | $ 1,528 | $ 93,881 |
Beginning balance, shares at Sep. 30, 2014 | 13,607,000 | ||||
Net income | 11,947 | 11,947 | |||
Other comprehensive income (loss), net of tax | (1,523) | (1,523) | |||
Issuance of common stock | 279 | $ 7 | 272 | ||
Issuance of common stock, shares | 139,000 | ||||
Common stock repurchased | (20,000) | $ (42) | (2,485) | (17,473) | |
Common stock repurchased, shares | (848,000) | ||||
Common stock options exercised, net | $ 431 | $ 2 | 429 | ||
Common stock options exercised, net, shares | 166,422 | 47,000 | |||
Purchase of common stock to pay employee taxes | $ (825) | (631) | (194) | ||
Excess tax benefit from stock-based compensation plans | 432 | 432 | |||
Stock-based compensation | 2,381 | 2,381 | |||
Ending balance at Sep. 30, 2015 | 91,873 | $ 647 | 3,060 | 5 | 88,161 |
Ending balance, shares at Sep. 30, 2015 | 12,945,000 | ||||
Net income | 9,985 | 9,985 | |||
Other comprehensive income (loss), net of tax | 1,268 | 1,268 | |||
Issuance of common stock | 270 | $ 4 | 266 | ||
Issuance of common stock, shares | 74,000 | ||||
Common stock options exercised, net | $ 1,546 | $ 10 | 1,536 | ||
Common stock options exercised, net, shares | 437,850 | 196,000 | |||
Purchase of common stock to pay employee taxes | $ (1,953) | $ (1) | (1,952) | ||
Purchase of common stock to pay employee taxes, shares | (7,000) | ||||
Stock-based compensation | 3,844 | 3,844 | |||
Ending balance at Sep. 30, 2016 | 106,833 | $ 660 | 6,754 | 1,273 | 98,146 |
Ending balance, shares at Sep. 30, 2016 | 13,208,000 | ||||
Net income | 3,926 | 3,926 | |||
Other comprehensive income (loss), net of tax | 2,144 | 2,144 | |||
Issuance of common stock | 348 | $ 5 | 343 | ||
Issuance of common stock, shares | 99,000 | ||||
Common stock repurchased | $ (4,702) | $ (10) | (4,692) | ||
Common stock repurchased, shares | (196,190) | (196,000) | |||
Common stock options exercised, net | $ 96 | $ 1 | 95 | ||
Common stock options exercised, net, shares | 6,819 | 7,000 | |||
Purchase of common stock to pay employee taxes | $ (560) | $ (1) | (559) | ||
Purchase of common stock to pay employee taxes, shares | (23,000) | ||||
Stock-based compensation | 3,472 | 3,472 | |||
Ending balance at Sep. 30, 2017 | $ 111,557 | $ 655 | $ 5,413 | $ 3,417 | $ 102,072 |
Ending balance, shares at Sep. 30, 2017 | 13,095,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Activities: | |||
Net income | $ 3,926 | $ 9,985 | $ 11,947 |
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations: | |||
Depreciation and amortization | 5,555 | 4,873 | 2,805 |
Stock-based compensation | 3,472 | 3,844 | 2,381 |
Contingent consideration (gain) expense | (127) | 1,492 | |
Unrealized foreign exchange loss | 474 | 444 | |
Impairment losses on intangible assets | 427 | ||
Gains on sales of available-for-sale securities, net and strategic investments | (43) | (514) | (492) |
Impairment loss on strategic investment | 1,500 | ||
Deferred taxes | 1,000 | 261 | 93 |
Excess tax benefit from stock-based compensation plans | (432) | ||
Property and equipment disposal loss (gain) | 6 | (66) | (39) |
Provision for bad debts | 208 | ||
Other, net | 13 | ||
Change in operating assets and liabilities, net of acquisitions and excluding the impact of discontinued operations: | |||
Accounts receivable | (528) | 911 | (2,727) |
Inventories | 97 | (143) | (162) |
Prepaids and other | (599) | 409 | 141 |
Accounts payable and accrued liabilities | 368 | 3,710 | 373 |
Income taxes | (59) | 76 | (309) |
Deferred revenue | (124) | (129) | (13) |
Net cash provided by operating activities from continuing operations | 14,053 | 25,166 | 15,066 |
Investing Activities: | |||
Purchases of property and equipment | (6,432) | (8,192) | (1,877) |
Cash proceeds from sale of property and equipment | 89 | 42 | |
Purchases of available-for-sale securities | (73,671) | (24,517) | (3,376) |
Sales and maturities of available-for-sale securities | 63,871 | 2,498 | 22,199 |
Payments for acquisition, net of cash acquired | (25,859) | (270) | |
Cash received from strategic investments | 43 | 513 | 21 |
Cash transferred to discontinued operations | (45) | ||
Net cash (used in) provided by investing activities from continuing operations | (16,189) | (55,468) | 16,694 |
Financing Activities: | |||
Issuance of common stock | 444 | 494 | 710 |
Repurchase of common stock | (4,702) | (20,000) | |
Purchases of common stock to pay employee taxes | (2,156) | (388) | (825) |
Payment of deferred financing costs | (96) | ||
Excess tax benefit from stock-based compensation plans | 432 | ||
Payment of contingent consideration | (305) | ||
Net cash used in financing activities from continuing operations | (6,510) | (199) | (19,683) |
Effect of exchange rate changes on cash | 193 | (100) | |
Net cash (used in) provided by continuing operations | (8,453) | (30,601) | 12,077 |
Discontinued Operations: | |||
Net cash used in operating activities | (45) | ||
Net cash provided by financing activities | 45 | ||
Net change in cash and cash equivalents | (8,453) | (30,601) | 12,077 |
Cash and Cash Equivalents: | |||
Beginning of year | 24,987 | 55,588 | 43,511 |
End of year | 16,534 | 24,987 | 55,588 |
Supplemental Information: | |||
Cash paid for income taxes | 2,114 | 6,710 | 6,510 |
Noncash financing and investing activities: | |||
Acquisition of property and equipment on account | 109 | 50 | 22 |
Contingent consideration and debt assumed in acquisitions | 12,584 | ||
Issuance of performance shares, restricted and deferred stock units | $ 2,022 | 1,472 | 2,250 |
Accrual of employee taxes on common stock exercises | $ 1,585 | ||
Accrual of business combination contingent consideration | $ 305 |
Schedule of Valuation and Quali
Schedule of Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 30, 2017 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts | Surmodics, Inc. Valuation and Qualifying Accounts (In thousands) Description Balance at Beginning of Period Additions Charged (Credited) to Expenses Deductions From Reserves Balance at End of Period Year Ended September 30, 2015: Allowance for doubtful accounts $ 42 $ — $ 32 (a) $ 10 Year Ended September 30, 2016: Allowance for doubtful accounts $ 10 $ 9 $ — (a) $ 19 Year Ended September 30, 2017: Allowance for doubtful accounts $ 19 $ 222 $ 11 (a) $ 230 (a) Uncollectible accounts written off and adjustments to the allowance. |
Description
Description | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Description | 1. Description Surmodics, Inc. and subsidiaries (“Surmodics” or the “Company”) is a leading provider of medical device and in vitro Basis of Presentation The consolidated financial statements include all accounts and wholly-owned subsidiaries, and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.”) (“GAAP”). All inter-company transactions have been eliminated. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Select Balance Sheet Information | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Select Balance Sheet Information | 2. Summary of Significant Accounting Policies and Select Balance Sheet Information Cash and Cash Equivalents Cash and cash equivalents consist of financial instruments with maturities of three months or less at the Company’s acquisition date of the security and are stated at cost which approximates fair value and may include money market instruments, certificates of deposit, repurchase agreements and commercial paper instruments. Investments Investments consisted principally of commercial paper and corporate bond securities and are classified as available-for-sale as of September 30, 2017. Available-for-sale securities are reported at fair value with unrealized gains and losses, net of tax, excluded from the consolidated statements of income and reported in the consolidated statements of comprehensive income as well as a separate component of stockholders’ equity in the consolidated balance sheets, except for other-than-temporary impairments, which are reported as a charge to current earnings. A loss would be recognized when there is an other-than-temporary impairment in the fair value of any individual security classified as available-for-sale, with the associated net unrealized loss reclassified out of accumulated other comprehensive income with a corresponding adjustment to other income (loss). This adjustment would result in a new cost basis for the investment. No such adjustments occurred during the fiscal years ended September 30, 2017, 2016 or 2015. Interest earned on debt securities, including amortization of premiums and accretion of discounts, is included in other income (loss). Realized gains and losses from the sales of available-for-sale debt securities, which are included in other income (loss), are determined using the specific identification method. The amortized cost, unrealized holding gains and losses, and fair value of available-for-sale securities as of September 30, 2017 and 2016 (in thousands): September 30, 2017 (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper and corporate bonds $ 31,817 $ — $ (15 ) $ 31,802 Total $ 31,817 $ — $ (15 ) $ 31,802 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 There were no held-to-maturity debt securities as of September 30, 2017 or 2016 and no realized gains or losses on sales of available-for-sale securities for the fiscal years then ended. Realized gains and losses on sales of available-for-sale securities totaled $0.5 million and $(0.1) million, respectively, for the fiscal year ended September 30, 2015. Inventories Inventories are principally stated at the lower of cost or market using the specific identification method and include direct labor, materials and overhead. Inventories consisted of the following components as of September 30 (in thousands): 2017 2016 Raw materials $ 1,603 $ 1,766 Work in-process 659 492 Finished products 1,254 1,321 Total $ 3,516 $ 3,579 Property and Equipment Property and equipment are stated at cost, less any impairment, and are depreciated using the straight-line method over the estimated useful lives of the assets. The Company recorded depreciation expense of $3.0 million, $2.3 million and $2.0 million for the fiscal years ended September 30, 2017, 2016 and 2015, respectively. The September 30, 2017 and 2016 balances in construction-in-progress include the cost of enhancing the capabilities of the Company’s Ballinasloe, Ireland and Eden Prairie, Minnesota facilities. As assets are placed in service, construction-in-progress is transferred to the specific property and equipment categories and depreciated over the estimated useful lives of the assets. Property and equipment consisted of the following components as of September 30 (in thousands): Useful Life 2017 2016 (In years) Land N/A $ 4,420 $ 4,359 Laboratory fixtures and equipment 3 to 10 19,491 15,243 Buildings and improvements 3 to 20 21,924 19,589 Office furniture and equipment 3 to 10 4,541 3,948 Construction-in-progress 2,493 3,441 Less accumulated depreciation (29,927 ) (26,979 ) Property and equipment, net $ 22,942 $ 19,601 Other Assets Other assets consist principally of the following as of September 30 (in thousands): 2017 2016 ViaCyte, Inc. $ 479 $ 479 Other noncurrent assets 418 149 Other assets, net $ 897 $ 628 In February 2011, the stent technology of Nexeon MedSystems, Inc. (“Nexeon”) was acquired by CeloNova BioSciences, Inc. (“CeloNova”). Prior to the acquisition by CeloNova, Nexeon created a wholly-owned subsidiary, Nexeon Stent, to hold the company’s stent-related assets. Nexeon distributed to its stockholders the Nexeon Stent stock which was exchanged for Series B-1 preferred shares of CeloNova. CeloNova is a privately-held Texas-based medical technology company that is marketing a variety of medical products. The Company’s investment in CeloNova, which was accounted for under the cost method, represented less than a 2% ownership interest. The Company does not exert significant influence over CeloNova’s operating or financial activities. On November 10, 2015 Boston Scientific Corporation announced its intent to acquire CeloNova’s interventional radiology portfolio for $70 million, plus potential milestone payments. The Company recognized an other-than-temporary impairment loss of $1.5 million related to its investment in CeloNova in the fourth quarter fiscal 2015 based on the indicated value of this transaction. As of September 30, 2017 and 2016, the carrying value of this investment is $0. The Company has invested a total of $5.3 million in ViaCyte, Inc. (“ViaCyte”), a privately-held California-based biotechnology firm that is developing a unique treatment for diabetes using coated islet cells, the cells that produce insulin in the human body. In fiscal 2006, the Company determined that its investment in ViaCyte was impaired and that the impairment was other-than-temporary. Accordingly, the Company recorded an impairment loss of $4.7 million. In the second quarter of fiscal 2013, the Company recorded an additional other-than-temporary impairment loss on this investment totaling $0.1 million based on a financing round and market valuations. The balance of the investment of $0.5 million, which is accounted for under the cost method, represents less than a 1% ownership interest. The Company does not exert significant influence over ViaCyte’s operating or financial activities. The Company transferred its original investment of $2,000 in Intersect ENT, Inc. (“Intersect ENT”) out of other assets to short-term available-for-sale investments upon completion of Intersect ENT’s initial public offering (“IPO”) in July 2014. The Company recognized a gain on this investment in other income of $0.5 million during the year ended September 30, 2015 as the investment was sold. The total carrying value of cost method investments is reviewed quarterly for changes in circumstances or the occurrence of events that suggest the Company’s investment may not be recoverable. The carrying 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. In the fiscal years ended September 30, 2017, 2016 and 2015, the Company recognized revenue of less than $0.1 million in each period from activity with companies in which it had a strategic investment. Intangible Assets Intangible assets consist principally of acquired patents and technology, customer lists and relationships, licenses and trademarks. The Company recorded amortization expense of $2.6 million, $2.4 million and $0.8 million for the years ended September 30, 2017, 2016 and 2015, respectively. During the year ended September 30, 2016, the Company acquired 100% of the shares of both Creagh Medical Ltd. (“Creagh Medical”) and NorMedix, Inc. (“NorMedix”). These acquisitions (collectively, “Fiscal 2016 Acquisitions”) resulted in an increase in customer lists and relationships, developed technology and in-process research and development (“IPR&D”) of $12.6 million, $8.7 million and $1.0 million, respectively. During the year ended September 30, 2015, the Company acquired certain assets from ImmunO4, LLC resulting in an increase in customer lists, non-compete and other intangible assets of $0.3 million, $0.2 million and $0.1 million, respectively. Intangible assets consisted of the following as of September 30 (in thousands): 2017 Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 8.9 $ 18,293 $ (7,834 ) $ 10,459 Developed technology 11.7 9,297 (1,478 ) 7,819 Non-compete 5.0 230 (103 ) 127 Patents and other 16.5 2,321 (1,423 ) 898 Subtotal 30,141 (10,838 ) 19,303 Unamortized intangible assets: In-process research and development 679 — 679 Trademarks and trade names 580 — 580 Total $ 31,400 $ (10,838 ) $ 20,562 2016 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, excluding any possible future amortization associated with acquired IPR&D, which has not met technological feasibility as of September 30, 2017, estimated amortization expense for each of the next five fiscal years is as follows (in thousands): 2018 $ 2,661 2019 2,661 2020 2,486 2021 2,347 2022 2,307 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, foreign currency exchange rates 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 is 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. The Company assesses indefinite-lived assets for impairment annually in the fourth quarter and whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. Similar to the goodwill impairment test, the indefinite-lived assets impairment test requires the Company to make several estimates about fair value, most of which are based on projected future cash flows. the fair value of certain IPR&D and trade name assets were deemed to be less than their carrying value, due to decreases in estimated future revenue associated with the assets. As a result, impairment losses of $0.3 million and $0.1 million were recorded selling, general and administrative expenses, respectively, in the consolidated statements of income for . the fair value of a trade name asset was deemed to be less than its carrying value. As a result, an impairment loss of less than $0.1 million was recorded in selling, general and administrative in the consolidated statements of income for the year ended September 30, 2016. No other impairment losses were identified during the annual impairment analyses. Goodwill Goodwill represents the excess of the cost of an acquired entity over the fair value assigned to the assets purchased and liabilities assumed in connection with a company’s acquisition. Goodwill is not amortized but is subject, at a minimum, to annual tests for impairment in accordance with accounting guidance for goodwill. The carrying amount of goodwill is evaluated annually, and between annual evaluations if events occur or circumstances change indicating that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company’s reporting units are the In Vitro Diagnostics operations known as its In Vitro Diagnostics unit which contains its BioFX branded products and the Surmodics device drug delivery, hydrophilic coatings and medical device manufacturing operations known as the Medical Device unit. Inherent in the determination of fair value of the reporting units are certain estimates and judgments, including the interpretation of current economic indicators and market valuations as well as the Company’s strategic plans with regard to its operations. The Company performed its annual impairment tests of goodwill as of August 31, 2017 and 2016, elected to perform the quantitative assessment described above for each of its reporting units. The Company did not record any goodwill impairment charges as it was determined that the reporting units’ fair values were greater than their carrying values. This impairment assessment is reliant on forecasted cash flows, as well as the selected discount rate, which are inherently subjective and require significant estimates. Differences in the reporting units’ actual future operating results as compared with these forecasts estimates could materially affect the estimation of the fair value of the reporting units. In accordance with ASU 2017-04, which was prospectively adopted effective July 1, 2017, an impairment charge is recorded for the amount by which the carrying value of the reporting unit exceeds the fair value of the reporting unit, as calculated in the quantitative analysis described above. The Company did not record any goodwill impairment charges using the newly adopted accounting principal in the fiscal year ended September 30, 2017. Prior to the adoption of ASU 2017-04, the measurement of an impairment (Step 2 of the impairment test) would have been calculated by determining the implied fair value of a reporting unit’s goodwill by allocating the fair value of the reporting unit to all other assets and liabilities of that unit based on their relative fair values. The excess of the fair value of a reporting unit over the amount assigned to its other assets and liabilities would have been the implied fair value of goodwill. The Company did not record any goodwill impairment charges using Step 2 of the impairment test in the fiscal years ended September 30, 2016 or 2015. Goodwill as of September 30, 2017 and 2016 totaled $27.3 million and $26.6 million, respectively. The change in the carrying amount of goodwill by segment for the years ended September 30, 2017 and 2016 was as follows (in thousands) (Dollars in thousands) In Vitro Diagnostics Medical Device Total Balance as of September 30, 2015 $ 8,010 $ — $ 8,010 Additions (See Note 3) — 17,892 17,892 Foreign currency translation adjustment — 653 653 Balance as of September 30, 2016 8,010 18,545 26,555 Foreign currency translation adjustment — 727 727 Balance as of September 30, 2017 $ 8,010 $ 19,272 $ 27,282 Valuation of Long-Lived Assets Accounting guidance requires the Company to evaluate periodically whether events and circumstances have occurred that may affect the estimated useful life or the recoverability of the remaining balance of long-lived assets, such as property and equipment and intangibles with finite lives. If such events or circumstances were to indicate that the carrying amount of these assets may not be recoverable, the Company would estimate the future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) were less than the carrying amount of the assets, the Company would recognize an impairment charge to reduce such assets to their fair value. In fiscal 2017, 2016 and 2015, there were no impairment charges relating to the Company’s long-lived assets as there were no events or circumstances that occurred that affected the recoverability of such assets. Accrued Liabilities Other accrued liabilities consisted of the following as of September 30 (in thousands): 2017 2016 Accrued professional fees $ 501 $ 262 Accrued clinical study expense 411 283 Accrued inventory purchases 596 315 Due to customers 41 881 Deferred revenue 62 180 Other 224 249 Total $ 1,835 $ 2,170 Revenue Recognition The Company recognizes revenue when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) shipment has occurred or delivery has occurred if the terms specify destination; (3) the sales price is fixed or determinable; and (4) collectability is reasonably assured. When there are additional performance requirements, revenue is recognized when all such requirements have been satisfied. Under revenue arrangements with multiple deliverables, the Company recognizes each separable deliverable as it is earned. The Company derives its revenue from three primary sources: (1) royalties and license fees from licensing our proprietary surface modification and device drug delivery technologies to customers; the vast majority (typically in excess of 90%) of revenue in the “royalties and license fees” category is in the form of royalties; (2) product revenue from the sale of reagent chemicals to licensees, the sale of stabilization products, antigens, substrates and surface coatings to the diagnostic and biomedical research markets as well as the sale of medical devices and related products (such as balloons and catheters) to original equipment manufacturer (OEM) suppliers and distributors; and (3) research and commercial development fees generated on customer projects. Taxes collected from customers and remitted to governmental authorities are excluded from revenue and amounted to $0.1 million for each of the years ended September 30, 2017, 2016 and 2015. Royalties and license fees . The Company licenses technology to third parties and collects royalties. Royalty revenue is generated when a customer sells products incorporating the Company’s licensed technologies. Royalty revenue is recognized as licensees report it to the Company, and payment is typically submitted concurrently with the report. For stand-alone license agreements, up-front license fees are recognized based on the terms of the related licensing agreement, either over the term of the agreement or at the point in time when the earnings process is complete. Minimum royalty fees are recognized in the period earned. Revenue related to a performance milestone is recognized upon the achievement of the milestone, as defined in the respective agreements and provided the following conditions have been met: • The milestone payment is non-refundable; • The milestone involved a significant degree of risk, and was not reasonably assured at the inception of the arrangement; • Accomplishment of the milestone involved substantial effort; • The amount of the milestone payment is commensurate with the related effort and risk; and • A reasonable amount of time passed between the initial license payment and the first and subsequent milestone payments. If these conditions have not been met, the milestone payment is deferred and recognized over the term of the agreement. Product sales. Product sales to third parties consist of original equipment manufacturer (OEM) and distributor sales and are recognized at the time of shipment. The Company’s sales terms provide no right of return outside of the standard warranty policy. Payment terms are generally set at 30-45 days. Research and development. The Company performs third-party research and development activities, which are typically provided on a time and materials basis. Generally, revenue for research and development is recorded as performance progresses under the applicable contract, which corresponds with the period the related costs are incurred. Arrangements with multiple deliverables. Revenue arrangements with multiple deliverables require the Company to: (i) disclose whether multiple deliverables exist, how the deliverables in an arrangement should be separated, and how the consideration should be allocated; (ii) allocate revenue in an arrangement using estimated selling prices (“ESP”) of deliverables if a vendor does not have vendor-specific objective evidence of selling price (“VSOE”) or third-party evidence of selling price (“TPE”); and (iii) allocate revenue using the relative selling price method. The Company accounts for revenue using a multiple attribution model in which consideration allocated to research and development activities is recognized as performed, and milestone payments are recognized when the milestone events are achieved, when such activities and milestones are deemed substantive. Accordingly, in situations where a unit of accounting includes both a license and research and development activities, and when a license does not have stand-alone value, the Company applies a multiple attribution model in which consideration allocated to the license is recognized ratably, consideration allocated to research and development activities is recognized as performed and milestone payments are recognized when the milestone events are achieved, when such activities and milestones are deemed substantive. The Company enters into license and development arrangements that may consist of multiple deliverables which could include a license(s) to Surmodics’ technology, research and development activities, manufacturing services, and product sales based on the needs of its customers. For example, a customer may enter into an arrangement to obtain a license to Surmodics’ intellectual property which may also include research and development activities, and supply of products manufactured by Surmodics. For these services provided, Surmodics could receive upfront license fees upon signing of an agreement and granting the license, fees for research and development activities as such activities are performed, milestone payments contingent upon advancement of the product through development and clinical stages to successful commercialization, fees for manufacturing services and supply of product, and royalty payments based on customer sales of product incorporating Surmodics’ technology. The Company’s license and development arrangements generally do not have refund provisions if the customer cancels or terminates the agreement. Typically all payments made are non-refundable. The Company is required to evaluate each deliverable in a multiple element arrangement for separability. The Company is then required to allocate revenue to each separate deliverable using a hierarchy of VSOE, TPE, or ESP. In many instances, the Company is not able to establish VSOE for all deliverables in an arrangement with multiple elements. This may be a result of the Company infrequently selling each element separately or having a limited history with multiple element arrangements. When VSOE cannot be established, the Company attempts to establish a selling price of each element based on TPE. TPE is determined based on competitor prices for similar deliverables when sold separately. When the Company is unable to establish a selling price using VSOE or TPE, the Company uses ESP in its allocation of arrangement consideration. The objective of ESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. ESP is generally used for highly customized offerings. The Company determines ESP for undelivered elements by considering multiple factors including, but not limited to, market conditions, competitive landscape and past pricing arrangements with similar features. The determination of ESP is made through consultation with the Company’s management, taking into consideration the marketing strategies for each business unit. Deferred Revenue Amounts received prior to satisfying the above revenue recognition criteria are recorded as deferred revenue in the accompanying consolidated balance sheets, with deferred revenue to be recognized beyond one year being classified as non-current deferred revenue. The Company had current and non-current deferred revenue of $0.3 million and $0.4 million as of September 30, 2017 and 2016, respectively included in other accrued liabilities (current) and other long-term liabilities (long-term). Customer overpayments are accounted for as a liability until all criteria for revenue recognition have been met. As of September 30, 2017, and 2016 the Company has recorded a liability of less than $0.1 million and $0.9 million, respectively, for customer royalty overpayments, which are included in other accrued liabilities. Concentrations The Company’s licensed technologies provide royalty revenue, which represents the largest revenue stream to the Company. The Company has licenses with a diverse base of customers and certain customers have multiple products using the Company’s technology. Medtronic plc (“Medtronic”) is the Company’s largest customer at approximately 18%, 25% and 26% of total consolidated revenue for the fiscal years ended September 30, 2017, 2016 and 2015, respectively. Medtronic has several separately-licensed products that generate royalty revenue for Surmodics, none of which represented more than 4% of Surmodics’ total revenue. No other individual customer using licensed technology constitutes more than 10% of the Company’s total revenue. The loss of Medtronic or any of our largest customers, or reductions in business from them, could have a material adverse effect on the Company’s business, financial condition, results of operations, and cash flows from operations. The Company’s licensing agreements with many of its customers, including most of its significant customers, cover many licensed products that each separately generates royalty revenue. This structure reduces the potential risk to the Company’s operations that may result from reduced sales (or the termination of a license) of a single product for any specific customer. The Company believes that the credit risk related to marketable securities is limited due to the adherence to an investment policy and that credit risk related to accounts receivable is limited due to a large customer base. Income Taxes The Company accounts for income taxes under the asset and liability method prescribed in accounting guidance. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the period in which related temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in this assessment. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date of such change. Research and Development Research and development (“R&D”) costs are expensed as incurred. Some R&D costs are related to third-party contracts, and the related revenue is recognized as described in “Revenue Recognition” above. Costs associated with customer-related R&D include specific project direct labor costs and material expenses as well as an allocation of overhead costs based on direct labor dollars. Clinical trial costs. The Company sponsors clinical trials intended to obtain the necessary clinical data required to obtain approval from various regulatory agencies to market medical devices developed by the Company. Costs associated with clinical trials are included within R&D expense and include trial design, clinical site reimbursement and third party fees. The Company’s clinical trials are administered by third-party clinical research organizations (“CROs”). These CROs generally bill monthly for certain services performed as well as upon achievement of certain milestones. Milestone payments are amortized as the related services are performed, generally based upon the number of patients enrolled, “patient months” incurred and the duration of the study. The Company monitors patient enrollment, the progress of clinical studies and related activities through internal reviews of data reported to the Company by the CROs and correspondence with the CROs. The Company periodically evaluates its estimates to determine if adjustments are necessary or appropriate based on information it receives. Government funding . The Company is eligible to receive reimbursement for certain qualifying R&D expenditures under a grant from the Industrial Development Agency of Ireland (“IDA”). Reimbursements are recognized as a reduction of R&D expense when there is reasonable assurance that the funding will be received and conditions associated with the funding are met. The Company recorded reimbursements from IDA grants of $0.8 million during fiscal 2017 as a reduction of R&D expense. No reimbursements were recorded during fiscal 2016 or 2015. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Ultimate results could differ from those estimates. Discontinued Operations On November 1, 2011, the Company entered into a definitive agreement (the “Purchase Agreement”) to sell substantially all of the assets of its wholly-owned subsidiary, SurModics Pharmaceuticals, to Evonik Degussa Corporation (“Evonik”). Pharmaceuticals discontinued operations used operating cash of less than $0.1 million in fiscal 2015. Cash generated from financing activities of less than $0.1 million in fiscal 2015 related to transfers of cash from continuing operations of Surmodics and consisted of cash used to make payments on accrual balances. There was no discontinued operations activity in fiscal 2017 or 2016. Income Per Share Data Basic income per common share is calculated based on the weighted average number of common shares outstanding during the period. Diluted income per common share is computed by dividing income by the weighted average number of common and common equivalent shares outstanding during the period. The Company’s only potentially dilutive common shares are those that result from dilutive common stock options and non-vested stock relating to restricted stock awards, restricted stock units and performance shares. The following table sets forth the denominator for the computation of basic and diluted income per share for each of the fiscal years ended September 30 (in thousands): 2017 2016 2015 Net income from continuing operations available to common shareholders $ 3,926 $ 9,985 $ 11,947 Basic weighted average shares outstanding 13,153 12,998 13,029 Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units and performance shares 236 221 260 Diluted weighted average shares outstanding 13,389 13,219 13,289 The calculation of weighted average diluted shares outstanding excludes outstanding common stock options associated with the right to purchase 0.2 million, 0.7 million and 0.5 million shares for fiscal 2017, 2016 and 2015, respectively, as their inclusion would have had an antidilutive effect on diluted income per share. Currency Translation The Company’s reporting currency is the U.S. Dollar. Assets and liabilities of non-U.S. dollar functional currency subsidiaries are translated into U.S. dollars at the period-end exchange rates, |
Business Combinations
Business Combinations | 12 Months Ended |
Sep. 30, 2017 | |
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 located in Ballinasloe, Ireland. The results of Creagh Medical’s operations have been included in the Company’s consolidated financial statements as of the Creagh Medical acquisition date. 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. As of September 30, 2017, the Company has paid $18.4 million in cash for this acquisition. Total transaction, integration and other costs associated with the Creagh Medical acquisition aggregated $2.7 million for the fiscal year ended September 30, 2016. Creagh Medical’s operating results have been included in the Medical Device segment since the acquisition date The Company realized $3.3 million of revenue and a loss of $2.7 million from Creagh Medical’s operations for the period from the acquisition date through September 30, 2016. 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 (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 purchase accounting allocation of assets acquired and liabilities assumed was finalized during the fourth quarter of fiscal 2016. During the measurement period, which ended September 30, 2016, certain insignificant adjustments were made from amounts previously reported to finalize Creagh’s preliminary fair value estimates related primarily to other current assets, intangible assets, goodwill, certain property value, contingent liabilities and the related deferred tax impacts. 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, 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 strengthens the Company’s vascular device expertise and R&D capabilities. Total transaction, integration and other costs associated with the NorMedix acquisition aggregated $0.3 million for the year ended September 30, 2016. NorMedix’s operating results have been included in the Medical Device segment since the acquisition date. The Company realized $0.9 million of revenue and a loss of $0.4 million from the NorMedix’s operations for the period from the acquisition date through The purchase price of NorMedix consisted of the following (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 purchase accounting allocation of assets acquired and liabilities assumed was finalized during the fourth quarter of fiscal 2016. During the measurement period, which ended September 30, 2016, certain insignificant adjustments were made from amounts previously reported to finalize NorMedix’s preliminary fair value estimates related primarily to working capital, intangible assets, goodwill, certain property value, contingent liabilities and the related deferred tax impacts. The following table summarizes the 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 7.0 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, which is a result of acquiring and retaining the NorMedix existing workforce and expected synergies from integrating their business into the Medical Device segment, is not deductible for tax purposes. Unaudited Pro Forma Results The following unaudited pro forma financial information presents the combined results of operation of the Company as if the acquisitions of Creagh Medical and NorMedix had occurred as of October 1, 2014, the beginning of fiscal 2015. The fiscal 2016 unaudited pro forma financial information includes adjustments for additional amortization expense on identifiable intangible assets of $2.8 million and contingent consideration accretion expense of $1.8 million, and to eliminate non-recurring, transactional professional fees of $3.2 million, and the related tax effect impact of $0.2 million. The fiscal 2015 unaudited pro forma financial information includes adjustments for additional amortization expense on identifiable intangible assets of $3.2 million and contingent consideration accretion expense of $2.1 million and tax effect impact of $0.5 million. The tax impact of the adjustments in all periods reflects no tax benefit from either the contingent consideration accretion or a significant portion of the 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 the Company 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 an increase in deferred tax liabilities with a corresponding increase to a deferred tax valuation allowance. NorMedix amortization expense reflects a tax benefit based on the Company’s incremental U.S. tax rate. The unaudited pro forma financial information is not necessarily indicative of what the Company’s consolidated results of operations actually would have been had the acquisition occurred at the beginning of each year. Additionally, the unaudited pro forma financial information does not attempt to project the future operating results of the combined company. Years Ended September 30, 2016 2015 (In thousands, except per share data) (Unaudited) Revenue $ 72,416 $ 65,432 Net income $ 12,315 $ 6,583 Per share amounts: Basic net income per share $ 0.95 $ 0.51 Diluted net income per share $ 0.93 $ 0.50 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2017 | |
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 U.S. 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 consolidated financial statements on a recurring basis. 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 September 30, 2017 or 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 September 30, 2017 and 2016 consisted of money market funds, commercial paper instruments and corporate bond securities. Fair market values for these assets are based on quoted vendor prices and broker pricing where all significant inputs are observable. To ensure the accuracy of quoted vendor prices and broker pricing, the Company performs regular reviews of investment returns to industry benchmarks and sample tests of individual securities to validate quoted vendor prices with other available market data. Level 3 — Unobservable inputs to the valuation methodology that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation. Included in Level 3 liabilities as of September 30, 2017 is a $14.9 million contingent consideration liability, of which $13.1 million is noncurrent. Included in Level 3 liabilities as of September 30, 2016 is a $14.5 million contingent consideration liability, of which $13.6 million is noncurrent. The contingent consideration liabilities are subject to achievement of revenue and value-creating milestones in future periods. There were no Level 3 assets as of September 30, 2017 or 2016. In valuing assets and liabilities, the Company is required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The Company did not significantly change its valuation techniques from prior periods. The carrying value of cash, accounts receivable, accounts payable and accrued liabilities approximates fair value as of September 30, 2017 and 2016 due to the short maturity nature of these instruments. 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 September 30, 2017 (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, 2017 Assets Cash equivalents $ — $ 6,639 $ — $ 6,639 Available-for-sale securities — 31,802 $ 31,802 Total assets $ — $ 38,441 $ — $ 38,441 Liabilities Contingent consideration $ — $ — $ (14,864 ) $ (14,864 ) Total liabilities $ — $ — $ (14,864 ) $ (14,864 ) 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 (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 liability for fiscal 2017 and 2016: (Dollars in thousands) Contingent consideration liability at September 30, 2015 $ — Additions 12,584 Fair value adjustments 70 Settlements — Interest accretion 1,422 Foreign currency translation 441 Contingent consideration liability at September 30, 2016 14,517 Additions — Fair value adjustments (2,350 ) Settlements — Interest accretion 2,223 Foreign currency translation 474 Contingent consideration liability at September 30, 2017 $ 14,864 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 — These assets are classified as Level 2 and include commercial paper instruments and corporate bonds. These securities are valued based on quoted vendor prices in active markets underlying the securities. Contingent consideration — The contingent consideration liabilities were determined based on discounted cash flow analyses that included revenue estimates, probability of strategic milestone achievement and a discount rate, which are considered significant unobservable inputs as of the acquisition dates and September 30, 2017. In fiscal 2017, for the revenue-based milestones, the Company discounted forecasted revenue by 14.0% to 23.5%, 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 25% to 100% probability of achievement and related payments were discounted using the Company’s estimated cost of debt for the remaining contingency periods, or 2.7% to 3.0%. In fiscal 2016, 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 25% to 100% probability of achievement and related payments were discounted using the Company’s estimated cost of debt for the remaining contingency periods, 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. (approximately $14.2 million September 30, 2017) Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis The Company’s investments in non-marketable securities of private companies are accounted for using the cost method as the Company does not exert significant influence over the investees’ operating or financial activities. These investments are measured at fair value on a non-recurring basis when they are deemed to be other-than-temporarily impaired. In determining whether a decline in value of non-marketable equity investments in private companies has occurred and is other-than-temporary, an assessment is made by considering available evidence, including the general market conditions in the investee’s industry, the investee’s product development status and subsequent rounds of financing and the related valuation and/or the Company’s participation in such financings. The Company also assesses the investee’s ability to meet business milestones and the financial condition and near-term prospects of the individual investee, including the rate at which the investee is using its cash and the investee’s need for possible additional funding at a potentially lower valuation. The valuation methodology for determining the decline in value of non-marketable equity securities is based on inputs that require management judgment and are Level 3 inputs. In the fourth quarter of fiscal 2015, the Company recognized an other-than-temporary impairment loss of $1.5 million on its investment in CeloNova. These impairment charges were based on Level 3 inputs further discussed in Note 2 to the consolidated financial statements. No other-than-temporary impairment losses were recognized during fiscal 2017 or 2016. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | 5. Stockholders’ Equity Repurchase of Common Stock Shares are repurchased from time to time to support the Company’s stock-based compensation programs and to return capital to stockholders. The Company accounts for repurchases of common stock using the par value method. On November 5, 2014, the Company’s Board of Directors authorized it to repurchase up to $30.0 million of the Company’s outstanding common stock in open-market purchases, privately negotiated transactions, block trades, accelerated share repurchase transactions, tender offers or by any combination of such methods. The authorization has no fixed expiration date. As part of the accelerated share repurchase (“ASR”) program discussed below, the Company repurchased 758,143 shares of common stock on November 11, 2014 and 89,721 of common stock on July 8, 2015, the date that the ASR program was completed. On November 11, 2014, the Company entered into an ASR program with Wells Fargo Bank, National Association. In connection with this agreement, the Company made a $20.0 million payment to the bank and immediately received an initial delivery of 758,143 shares of its common stock with a fair value of $16.0 million as of the purchase date. Effective as of the date of the initial share purchase, the transaction was accounted for as a share retirement, resulting in a reduction of common stock of less than $0.1 million, additional paid-in capital of $2.5 million and retained earnings of $13.5 million. The remaining $4.0 million of the Company’s payment was also reported as a reduction in retained earnings. The specific number of shares that the Company ultimately purchased under the ASR agreement was based on the volume weighted average price of the Company’s common stock during the purchase period, less an agreed upon discount. In the aggregate the Company purchased 847,864 shares under the ASR program for an average price of $23.59 per share. Based on the facts associated with the agreement, the forward contract was indexed to the Company’s common stock and met the U.S. GAAP requirements to be classified as permanent equity as of July 8, 2015, the date the ASR was completed. On November 6, 2015, the Company’s Board of Directors authorized the repurchase of up to $20.0 million of the Company’s outstanding common stock in open-market purchases, privately negotiated transactions, block trades, accelerated share repurchase transactions, tender offers or by any combination of such methods. The authorization has no fixed expiration date. During fiscal 2017, we paid $4.7 million to repurchase 196,190 common shares in open market purchases . As of September 30, 2017, million remained available to the Company for the purchase of its common stock under outstanding authorizations. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Plans | 6. Stock-Based Compensation Plans 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 expense, based on their fair values, over the requisite service period. The Company also estimates forfeitures of awards granted, which are based on historical experience and reduce the recognized expense. The Company’s stock-based compensation expenses for the years ended September 30 were allocated to the following expense categories (in thousands): 2017 2016 2015 Product costs $ 90 $ 22 $ 24 Research and development 510 324 226 Selling, general and administrative 2,872 3,498 2,131 Total stock-based compensation expense $ 3,472 $ 3,844 $ 2,381 As of September 30, 2017, approximately $4.7 million of total unrecognized compensation costs related to non-vested awards is expected to be recognized over a weighted average period of approximately 2.1 years. Such costs include $1.5 million based on payout levels associated with performance share awards that are currently anticipated to be fully expensed because the performance conditions are expected to be met above the minimum levels for each award period. Under the amended 2009 Equity Incentive Plan (“2009 Plan”), the Company is authorized to issue up to 2,000,000, plus the number of shares that have not yet been awarded under the 2003 Equity Incentive Plan, or were awarded and subsequently returned to the pool of available shares under the 2003 Equity Incentive Plan pursuant to its terms. As of September 30, 2017, there were 888,546 shares available for future equity awards, including stock options, restricted stock awards, performance share awards, and restricted stock and deferred stock units, under the 2009 Plan. Stock Option Awards The Company uses the Black-Scholes option pricing model to determine the weighted average grant date fair value of stock options. Weighted average per share fair values of stock options granted during fiscal 2017, 2016 and 2015 were $7.63, $6.95 and $7.26, respectively. The assumptions used as inputs in the model for the years ended September 30 were as follows: 2017 2016 2015 Risk-free interest rates 1.74 % 1.89 % 1.43 % Expected life 4.6 years 4.6 years 4.5 years Expected volatility 34 % 37 % 43 % Dividend yield 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 is determined based on the Company’s experience. Expected volatility is based on the Company’s stock price movement over a period approximating the expected term. Based on management’s judgment, dividend rates are expected to be 0.0% for the expected life of the options. Non-qualified stock options are granted at fair market value on the grant date. 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 the Board, non-qualified stock options generally become exercisable on a pro-rata basis over the one-year period following the date of grant. With respect to 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 $1.3 million, $1.2 million and $1.2 million during fiscal 2017, 2016 and 2015, respectively. As of September 30, 2017, the aggregate intrinsic value of the option shares outstanding and option shares exercisable was $10.0 million and $6.1 million, respectively. As of September 30, 2017, the average remaining contractual life of options outstanding and options exercisable was 4.0 years and 2.8 years, respectively. The total pre-tax intrinsic value of options exercised during fiscal 2017 and 2016 was $0.1 million and $5.1 million, respectively. The intrinsic value represents the difference between the exercise price and the fair market value of the Company’s common stock on the last day of the respective fiscal year end. The following table summarizes all stock options activity and stock options outstanding and exercisable under the stock option plans during fiscal 2017, 2016 and 2015: Number of Shares Weighted Average Exercise Price Outstanding at September 30, 2014 1,210,619 $ 20.35 Granted 164,401 21.24 Exercised (166,422 ) 14.54 Forfeited and expired (90,590 ) 35.35 Outstanding at September 30, 2015 1,118,008 20.10 Granted 241,582 20.63 Exercised (437,850 ) 15.68 Forfeited and expired (94,415 ) 31.52 Outstanding at September 30, 2016 827,325 21.30 Granted 229,039 24.08 Exercised (6,819 ) 13.89 Forfeited and expired (47,640 ) 30.65 Outstanding at September 30, 2017 1,001,905 21.54 Exercisable at September 30, 2017 547,051 $ 20.80 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. Restricted stock awards generally vest at a 33% rate on each of the first three anniversaries following the grant date. Compensation expense is recognized on a straight-line basis over the vesting term based on the fair value of the common shares on the date of grant. The stock-based compensation table above includes Restricted Stock expenses recognized related to these awards, which totaled $0.5 million, $0.3 million and $0.3 million during fiscal 2017, 2016 and 2015, respectively. The following table summarizes all restricted stock awards activity during fiscal 2017, 2016 and 2015: Number of Shares Weighted Average Grant Price Balance at September 30, 2014 18,624 $ 22.45 Granted 18,073 21.84 Vested (7,606 ) 22.28 Forfeited (1,316 ) 22.16 Balance at September 30, 2015 27,775 22.12 Granted 20,108 20.14 Vested (12,311 ) 22.19 Forfeited (2,439 ) 21.17 Balance at September 30, 2016 33,133 20.96 Granted 51,559 25.12 Vested (14,497 ) 21.10 Forfeited (2,278 ) 25.12 Balance at September 30, 2017 67,917 $ 23.98 Performance Share Awards The Company has entered into performance share agreements with certain key employees, covering the issuance of common stock (“Performance Shares”). The Performance Shares vest upon the achievement of all or a portion of certain performance objectives, which must be achieved during the performance period. The Performance Shares are not issued and outstanding until the performance objectives are met. The Organization and Compensation Committee of the Board of Directors (the “Committee”) approves the performance objectives used for executive compensation programs, which objectives were cumulative earnings per share and cumulative revenue for the three-year performance periods for fiscal 2013 awards (2013 – 2015) , The fair values of the Performance Shares, at target, were $1.2 million, $1.3 million and $0.9 million for grants awarded in fiscal 2017, 2016 and 2015, respectively. The aggregate number of shares that could be awarded to key employees if the minimum, target and maximum performance goals are met, based upon the fair value at the date of grant is as follows: Performance Period Minimum Shares Target Shares Maximum Shares Fiscal 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 The Fiscal 2015 – 2017 awards are expected to be finalized in December 2017 at an estimated 51,483 shares based on performance objective results. Based on the Company’s performance through September 30, 2017, it is estimated that approximately 57,979 shares may be earned for the Fiscal 2016 – 2018 performance period and that approximately 63,561 shares may be earned for the Fiscal 2017 – 2019 performance period. 1999 Employee Stock Purchase Plan Under the amended 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 September 30, 2017 and 2016, there were less than $0.1 million of employee contributions in accrued liabilities in the consolidated balance sheets. Stock compensation expense recognized related to the Stock Purchase Plan for the fiscal years ended September 30, 2017, 2016 and 2015 totaled $0.1 million or less for each year. The stock-based compensation table above includes the Employee Stock Purchase Plan expenses. Restricted Stock and Deferred Stock Units The Company awarded 16,004 and 18,877 restricted stock units (“RSU”) in fiscal 2017 and 2016, respectively, under the 2009 Plan to non-employee directors and certain key employees in foreign jurisdictions with forfeitures of 495 and 1,609 in fiscal 2017 and 2016, respectively. Directors may elect to receive their annual fees for services to the Board in deferred stock units (“DSUs”). As of September 30, 2017 and 2016, outstanding DSUs totaled 24,441 and 21,077, respectively, with an estimated fair value of $0.8 million. These DSUs are fully vested when granted. Stock-based compensation expense related to DSU awards, totaled $0.1 million, $0.2 million and $0.1 million in fiscal 2017, 2016 and 2015, respectively. |
Revolving Credit Facility
Revolving Credit Facility | 12 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Revolving Credit Facility | 7. Revolving Credit Facility The Company has a revolving credit facility with available principal totaling $30.0 million, which terminates on November 1, 2019. In addition, the Company has a $5.0 million multi-currency overdraft facility in Ireland with the same bank. Borrowings under the credit facility, if any, 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 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 maintain certain financial covenants related to a maximum leverage ratio and a minimum EBITDA amount and to comply with nonfinancial covenants. As of September 30, 2017, the Company had no borrowings outstanding on the line of credit and was in compliance with all financial covenants under the credit facility. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes Income taxes from continuing operations in the accompanying consolidated statements of income for the fiscal years ended September 30 are as follows (in thousands): 2017 2016 2015 Current provision: U.S. Federal $ 2,125 $ 6,550 $ 6,065 U.S. State (72 ) 250 106 International 54 (98 ) 30 Total current provision 2,107 6,702 6,201 Deferred provision (benefit): U.S. Federal 1,085 169 58 U.S. State (85 ) (43 ) 35 International — 135 — Total deferred provision (benefit) 1,000 261 93 Total provision $ 3,107 $ 6,963 $ 6,294 The reconciliation of the difference between amounts calculated at the statutory U.S. federal tax rate of 35% for the fiscal years ended September 30 and the Company’s effective tax rate from continuing operations is as follows (in thousands): 2017 2016 2015 Amount at statutory U.S. federal income tax rate $ 2,461 $ 5,932 $ 6,385 Change because of the following items: State income taxes, net of federal benefit (13 ) 142 67 Stock-based compensation 330 (607 ) 16 Valuation allowance change 665 (2,500 ) 348 Tax reserve change (52 ) 258 34 Federal manufacturing deduction (313 ) (280 ) (268 ) U.S. Federal and foreign research and development credits (706 ) (571 ) (74 ) Gain on strategic investment and corporate subsidiary — 2,630 — Foreign rate differential 948 622 — Acquisition-related transaction costs — 768 — Contingent consideration (gain) expense (45 ) 522 — Unrealized foreign currency exchange loss on contingent consideration obligation 170 — — Other (338 ) 47 (214 ) Income tax provision $ 3,107 $ 6,963 $ 6,294 The federal research and development tax credit for fiscal 2016 and 2015 includes the benefit generated for the periods from October 1, 2015 to December 31, 2015, October 1, 2014 to December 31, 2014 and October 1, 2013 to December 31, 2013, respectively, prior to the expiration of the benefit in each period. During fiscal 2016, the Company utilized $7.5 million of capital losses generated in prior years by accelerating built-in gains in the Company’s IVD subsidiary. For tax purposes, this resulted in an increase in the Company’s tax basis in the IVD subsidiary and a $2.6 million reduction in both deferred tax assets and the valuation allowance as of September 30, 2016. Excess tax benefits (shortfalls) related to stock based compensation expense are recorded within income tax expenses in the consolidated statements of income and totaled $(0.2) million and $0.6 million for the years ended September 30, 2017 and 2016, respectively. During fiscal 2015, under accounting guidance then in effect, excess tax benefits totaling $0.4 The components of deferred income taxes consisted of the following as of September 30 and result from differences in the recognition of transactions for income tax and financial reporting purposes (in thousands): 2017 2016 Depreciable assets $ (3,335 ) $ (2,257 ) Accruals and reserves 1,123 1,153 Stock-based compensation 3,370 3,113 Impaired strategic investments 2,701 2,701 NOL carryforwards 3,627 3,324 U.S. Federal and state R&D credits 242 110 Other 810 730 Valuation allowance (4,511 ) (3,847 ) Total deferred tax assets $ 4,027 $ 5,027 As of September 30, 2017 and 2016, the Company recorded deferred tax asset valuation allowances of $4.5 million and $3.9 million, respectively. The valuation allowances are primarily related to other-than-temporary impairment losses on strategic investments, state R&D credit carryforwards, and net operating loss carryforwards of Creagh Medical. As of September 30, 2017, the Company had federal and Minnesota R&D credit carryforwards of $0.3 million that will begin expiring in 2029 and state net operating loss carryforwards $0.2 million that will begin expiring in 2022. The Ireland and Luxembourg net operating loss carryforward assets totaling $3.0 million, much of which was acquired as part of the Creagh Medical acquisition in fiscal 2016, have an unlimited carryforward period. The U.S. federal and Minnesota net operating losses acquired as part of the NorMedix, Inc. acquisition are subject to the IRC Section 382 limitation rules. The Company has projected that these losses will be utilized with over the ten years remaining in the carryforward period. Unrecognized tax benefits are the differences between a tax position taken, or expected to be taken in a tax return, and the benefit recognized for accounting purposes pursuant to accounting guidance. A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands): 2017 2016 2015 Beginning of fiscal year $ 1,508 $ 1,248 $ 1,216 Increases in tax positions for prior years 8 77 50 Decreases in tax positions for prior years (35 ) (21 ) (10 ) Increases in tax positions for current year 216 365 146 Lapse of the statute of limitations (216 ) (161 ) (154 ) End of fiscal year $ 1,481 $ 1,508 $ 1,248 The total amount of unrecognized tax benefits excluding interest and penalties that, if recognized, would affect the effective tax rate as of September 30, 2017, 2016 and 2015, respectively, are $1.2 million, $1.2 million and $0.9 million. Currently, the Company does not expect the liability for unrecognized tax benefits to change significantly in the next 12 months and has classified the above balances on the consolidated balance sheets in other long-term liabilities. Interest and penalties related to unrecognized tax benefits are recorded in income tax expense. As of September 30, 2017, 2016 and 2015, a gross balance of $0.5 million, $0.6 million and $0.6 million, respectively, has been accrued related to the unrecognized tax benefits balance for interest and penalties. 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”) commenced an examination of the Company’s fiscal 2016 U.S. federal income tax return in the fourth quarter of fiscal 2017. The examination has not been completed. U.S. federal 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 2007. For tax returns for non-U.S. jurisdictions, the Company is no longer subject to income tax examination for years prior to 2012. 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 September 30, 2017 and 2016, there were no undistributed earnings in foreign subsidiaries. |
Defined Contribution Plan
Defined Contribution Plan | 12 Months Ended |
Sep. 30, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Defined Contribution Plan | 9. Defined Contribution Plan The Company has a 401(k) retirement and savings plan for the benefit of qualifying U.S. employees, and a defined contribution PRSA plan for the benefit of qualifying Ireland employees. For U.S. employees, the Company matches 50% of employee contributions on the first 6% of eligible compensation. For Ireland employees, the Company makes contributions of up to 8% of eligible compensation on employee contributions of up to 6% of eligible compensation. Company contributions totaling $0.7 million, $0.3 million and $0.3 million have been expensed in the years ended September 30, 2017, 2016 and 2015, respectively. |
Amounts Reclassified Out of Acc
Amounts Reclassified Out of Accumulated Other Comprehensive Income | 12 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Amounts Reclassified Out of Accumulated Other Comprehensive Income | 10. Amounts Reclassified Out of Accumulated Other Comprehensive Income Amounts reclassified out of Accumulated Other Comprehensive Income (“AOCI”) totaled $0.3 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Litigation. From time to time, the Company has been, and may become, involved in various legal actions involving its operations, products and technologies, including intellectual property and employment disputes. The outcomes of these legal actions are not within the Company’s complete control and may not be known for prolonged periods of time. In some actions, the claimants seek damages as well as other relief, including injunctions barring the sale of products that are the subject of the lawsuit, which if granted, could require significant expenditures or result in lost revenue. The Company records a liability in the consolidated financial statements for these actions when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate, the minimum amount of the range is accrued. If a loss is possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. In most cases, significant judgment is required to estimate the amount and timing of a loss to be recorded. On February 22, 2017, the Company was sued by Merit Medical Systems, Inc. (“Merit”) in the U.S. District Court for the District of Utah. NorMedix was added as a defendant on April 3, 2017. The lawsuit alleges breach of contract and seeks declaratory relief in connection with a services agreement entered into between Merit and NorMedix on March 3, 2015. In the lawsuit, Merit claims that certain technology and intellectual property related to thin-walled catheter technologies were developed by NorMedix under the services agreement and, pursuant to the terms of that agreement, should be owned by Merit. Pretrial proceedings are underway. The Company has not recorded an expense related to damages in connection with this matter because any potential loss is not currently probable or reasonably estimable. Additionally, the Company cannot reasonably estimate the range of loss, if any, that may result from this matter. Under the stock purchase agreement, pursuant to which the Company acquired NorMedix, the Company may have certain rights of indemnification against losses (including, without limitation, damages, expenses and costs) incurred as a result of the claims asserted in the litigation. The Company believes that the claims in the lawsuit are without merit and plans to vigorously defend and prosecute this matter. In the Company’s Quarterly Reports on Form 10-Q for the periods ended March 31, 2015, and June 30, 2015, it was disclosed a notice was received from a customer alleging an overpayment of approximately $5.7 million in royalties covering the period January 2009 through September 2014 (the “Claim”). On September 29, 2015, the Company entered into a settlement and release agreement resolving the Claim. Under the agreement, among other things, (a) the Company agreed to pay the customer $2.5 million to settle the Claim, (b) the customer agreed to pay the Company approximately $0.5 million for undisputed royalties that were unpaid and were not previously recognized, during fiscal 2015, and (c) the Company and the customer agreed to a mutual release relating to the Claim and certain other claims by the Company for royalties owed by the customer. In connection with the settlement, in the fourth quarter of fiscal 2015, the Company recognized revenue of approximately $0.5 million and recorded a charge of approximately $2.5 million. InnoRx, Inc. In January 2005, the Company entered into a merger agreement whereby the Company acquired all of the assets of InnoRx, Inc. (“InnoRx”), an early stage company developing drug delivery devices and therapies for the ophthalmology market. The Company will be required to issue up to approximately 480,059 additional shares of its common stock to the stockholders of InnoRx upon the successful completion of the remaining development and commercial milestones involving InnoRx technology acquired in the transaction. The Company has not recorded any accrual for this contingency as of September 30, 2017 as the milestones have not been achieved and the probability of achievement is remote. InnoCore Technologies BV. In March 2006, the Company entered into a license agreement whereby Surmodics obtained an exclusive license to a drug delivery coating for licensed products within the vascular field which included peripheral, coronary and neurovascular biodurable stent product. The license requires an annual minimum payment of 200,000 euros (equivalent to $236,000 using a euro to US $ exchange rate of 1.1801 as of September 30, 2017) until the last patent expires which is currently estimated to be September 2027. The total minimum future payments associated with this license are approximately $2.4 million. The license is currently utilized with one of Surmodics’ drug delivery customers. Operating Leases. The Company leases certain facilities under noncancelable operating lease agreements. Rent expense for the years ended September 30, 2017, 2016 and 2015 was $0.1 million for each period. In November 2017, the Company executed a lease for a 36,000 square feet of office and R&D facility in Eden Prairie, Minnesota. Contractual obligations under the lease agreement total $4.0 million over the ten-year lease term, which is expected to commence in May 2018. Annual commitments pursuant to operating lease agreements in place as of September 30, 2017 are as follows (in thousands): Year Ended September 30, 2018 $ 114 2019 73 2020 74 2021 12 2022 — Thereafter — Total minimum lease payments $ 273 Clinical Trials. The Company has engaged a CRO to assist with its ongoing clinical trials. In connection with the TRANSCEND pivotal clinical trial for the SurVeil® drug-coated balloon, the Company signed a $26 million contract with a CRO for the administration of the trial, under which an estimated $23.2 million remains to be paid as of September 30, 2017. The Company estimates that the total cost of the TRANSCEND clinical trial will be in the range of $32 million to $40 million over the next several years. In the event the Company were to terminate any trial, it may incur certain financial penalties which would become payable to the CRO for costs to wind down the terminated trial. |
Reportable Segment Information
Reportable Segment Information | 12 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | 12. Reportable Segment Information The accounting standards for reporting information about operating segments define operating segments as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, who is the Company’s Chief Executive Officer, in deciding how to allocate resources and in assessing performance. For financial accounting and reporting purposes, the Company reports its results for the two reportable segments as follows: (1) the Medical Device unit, which is comprised of surface modification coating technologies to improve access, deliverability, and predictable deployment of medical devices; international cardiology and peripheral balloon design, development and manufacturing; as well as drug delivery coating technologies to provide site-specific drug delivery from the surface of a medical device, with end markets that include coronary, peripheral, neuro-vascular and urology, among others, and (2) the In Vitro Diagnostics unit, which consists of component products and technologies for diagnostic test kits and biomedical research applications, with products that include protein stabilization reagents, substrates, antigens and surface coatings. During fiscal 2016, the Company acquired Creagh Medical and NorMedix, which are included in the Medical Device segment. The tables below present segment revenue, operating income from continuing operations and depreciation and amortization, for the years ended September 30, as follows (in thousands): 2017 2016 2015 Revenue: Medical Device $ 53,983 $ 53,202 $ 45,944 In Vitro Diagnostics 19,129 18,164 15,954 Total revenue $ 73,112 $ 71,366 $ 61,898 Operating income (loss): Medical Device $ 6,902 $ 16,975 $ 21,192 In Vitro Diagnostics 8,293 7,115 4,484 Total segment operating income 15,195 24,090 25,676 Corporate (8,092 ) (7,231 ) (6,587 ) Total operating income $ 7,103 $ 16,859 $ 19,089 Depreciation and amortization: Medical Device $ 4,453 $ 3,261 $ 1,138 In Vitro Diagnostics 412 789 873 Corporate 690 823 794 Total depreciation and amortization $ 5,555 $ 4,873 $ 2,805 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 segment is not presented because the Company does not provide its chief operating decision maker assets by segment, as the data is not readily available. Major Customers Revenue from customers that equaled or exceeded 10% of total revenue was as follows for the years ended September 30: 2017 2016 2015 Medtronic 18 % 25 % 26 % The revenue from the customer listed is derived from two primary sources: licensing and product sales (primarily in the Medical Device segment). Geographic Revenue and Long-lived Assets Geographic revenue was as follows for the years ended September 30: 2017 2016 2015 Domestic 77 % 79 % 77 % Foreign 23 % 21 % 23 % Long-lived assets, including property and equipment and intangible assets net of accumulated depreciation and amortization, respectively, by country were as follows as of September 30: 2017 2016 U.S. $ 20,949 $ 21,543 Ireland 22,555 20,583 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Sep. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | 13. Quarterly Financial Data (Unaudited) The following is a summary of the unaudited quarterly results for the years ended September 30, 2017 and 2016 (in thousands, except per share data). First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2017 Total revenue $ 17,761 $ 17,503 $ 17,790 $ 20,058 Operating income 3,268 1,677 1,743 415 Net income 2,300 506 720 400 Basic net income per share (1): 0.17 0.04 0.05 0.03 Diluted net income per share (1): 0.17 0.04 0.05 0.03 Fiscal 2016 Total revenue $ 16,541 $ 16,699 $ 19,972 $ 18,154 Operating income 3,939 2,240 6,597 4,083 Net income 2,653 821 3,934 2,577 Basic net income per share (1): 0.20 0.06 0.31 0.20 Diluted net income per share (1): 0.20 0.06 0.30 0.20 (1) The sum of the quarterly income per share amounts may not equal the annual income per share total because of changes in the weighted average number of shares outstanding that occurred during the year. In the fourth quarter of fiscal 2017, the Company recorded a $1.1 million license fee related to a customer’s acquisition and the Company’s sale of related jointly-owned intellectual property to the acquirer In the first quarter of fiscal 2016, the Company recorded expense related to acquisition related costs, including due diligence and integration expenses of $2.5 million, related to the acquisitions of Creagh Medical and NorMedix (Note 3). During the second quarter of fiscal 2016, the Company recorded an out-of-period adjustment of $1.1 million to correct a cumulative overstatement of royalty revenue, of which $1.0 million related to years prior to fiscal 2016. The overstatement was evaluated and concluded to not be material to fiscal 2016, or any prior interim or annual periods. In the third quarter of fiscal 2016, the Company recorded a $2.9 million customer royalty catch-up payment related to periods prior to the third quarter fiscal 2016. In the fourth quarter of fiscal 2016, the Company recorded a $0.5 million reduction of the income tax provision related to the adoption of ASU 2016-09 as discussed in Note 9. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies and Select Balance Sheet Information (Policies) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of financial instruments with maturities of three months or less at the Company’s acquisition date of the security and are stated at cost which approximates fair value and may include money market instruments, certificates of deposit, repurchase agreements and commercial paper instruments. |
Investments | Investments Investments consisted principally of commercial paper and corporate bond securities and are classified as available-for-sale as of September 30, 2017. Available-for-sale securities are reported at fair value with unrealized gains and losses, net of tax, excluded from the consolidated statements of income and reported in the consolidated statements of comprehensive income as well as a separate component of stockholders’ equity in the consolidated balance sheets, except for other-than-temporary impairments, which are reported as a charge to current earnings. A loss would be recognized when there is an other-than-temporary impairment in the fair value of any individual security classified as available-for-sale, with the associated net unrealized loss reclassified out of accumulated other comprehensive income with a corresponding adjustment to other income (loss). This adjustment would result in a new cost basis for the investment. No such adjustments occurred during the fiscal years ended September 30, 2017, 2016 or 2015. Interest earned on debt securities, including amortization of premiums and accretion of discounts, is included in other income (loss). Realized gains and losses from the sales of available-for-sale debt securities, which are included in other income (loss), are determined using the specific identification method. The amortized cost, unrealized holding gains and losses, and fair value of available-for-sale securities as of September 30, 2017 and 2016 (in thousands): September 30, 2017 (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper and corporate bonds $ 31,817 $ — $ (15 ) $ 31,802 Total $ 31,817 $ — $ (15 ) $ 31,802 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 There were no held-to-maturity debt securities as of September 30, 2017 or 2016 and no realized gains or losses on sales of available-for-sale securities for the fiscal years then ended. Realized gains and losses on sales of available-for-sale securities totaled $0.5 million and $(0.1) million, respectively, for the fiscal year ended September 30, 2015. |
Inventories | Inventories Inventories are principally stated at the lower of cost or market using the specific identification method and include direct labor, materials and overhead. Inventories consisted of the following components as of September 30 (in thousands): 2017 2016 Raw materials $ 1,603 $ 1,766 Work in-process 659 492 Finished products 1,254 1,321 Total $ 3,516 $ 3,579 |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, less any impairment, and are depreciated using the straight-line method over the estimated useful lives of the assets. The Company recorded depreciation expense of $3.0 million, $2.3 million and $2.0 million for the fiscal years ended September 30, 2017, 2016 and 2015, respectively. The September 30, 2017 and 2016 balances in construction-in-progress include the cost of enhancing the capabilities of the Company’s Ballinasloe, Ireland and Eden Prairie, Minnesota facilities. As assets are placed in service, construction-in-progress is transferred to the specific property and equipment categories and depreciated over the estimated useful lives of the assets. Property and equipment consisted of the following components as of September 30 (in thousands): Useful Life 2017 2016 (In years) Land N/A $ 4,420 $ 4,359 Laboratory fixtures and equipment 3 to 10 19,491 15,243 Buildings and improvements 3 to 20 21,924 19,589 Office furniture and equipment 3 to 10 4,541 3,948 Construction-in-progress 2,493 3,441 Less accumulated depreciation (29,927 ) (26,979 ) Property and equipment, net $ 22,942 $ 19,601 |
Other Assets | Other Assets Other assets consist principally of the following as of September 30 (in thousands): 2017 2016 ViaCyte, Inc. $ 479 $ 479 Other noncurrent assets 418 149 Other assets, net $ 897 $ 628 In February 2011, the stent technology of Nexeon MedSystems, Inc. (“Nexeon”) was acquired by CeloNova BioSciences, Inc. (“CeloNova”). Prior to the acquisition by CeloNova, Nexeon created a wholly-owned subsidiary, Nexeon Stent, to hold the company’s stent-related assets. Nexeon distributed to its stockholders the Nexeon Stent stock which was exchanged for Series B-1 preferred shares of CeloNova. CeloNova is a privately-held Texas-based medical technology company that is marketing a variety of medical products. The Company’s investment in CeloNova, which was accounted for under the cost method, represented less than a 2% ownership interest. The Company does not exert significant influence over CeloNova’s operating or financial activities. On November 10, 2015 Boston Scientific Corporation announced its intent to acquire CeloNova’s interventional radiology portfolio for $70 million, plus potential milestone payments. The Company recognized an other-than-temporary impairment loss of $1.5 million related to its investment in CeloNova in the fourth quarter fiscal 2015 based on the indicated value of this transaction. As of September 30, 2017 and 2016, the carrying value of this investment is $0. The Company has invested a total of $5.3 million in ViaCyte, Inc. (“ViaCyte”), a privately-held California-based biotechnology firm that is developing a unique treatment for diabetes using coated islet cells, the cells that produce insulin in the human body. In fiscal 2006, the Company determined that its investment in ViaCyte was impaired and that the impairment was other-than-temporary. Accordingly, the Company recorded an impairment loss of $4.7 million. In the second quarter of fiscal 2013, the Company recorded an additional other-than-temporary impairment loss on this investment totaling $0.1 million based on a financing round and market valuations. The balance of the investment of $0.5 million, which is accounted for under the cost method, represents less than a 1% ownership interest. The Company does not exert significant influence over ViaCyte’s operating or financial activities. The Company transferred its original investment of $2,000 in Intersect ENT, Inc. (“Intersect ENT”) out of other assets to short-term available-for-sale investments upon completion of Intersect ENT’s initial public offering (“IPO”) in July 2014. The Company recognized a gain on this investment in other income of $0.5 million during the year ended September 30, 2015 as the investment was sold. The total carrying value of cost method investments is reviewed quarterly for changes in circumstances or the occurrence of events that suggest the Company’s investment may not be recoverable. The carrying 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. In the fiscal years ended September 30, 2017, 2016 and 2015, the Company recognized revenue of less than $0.1 million in each period from activity with companies in which it had a strategic investment. |
Intangible Assets | Intangible Assets Intangible assets consist principally of acquired patents and technology, customer lists and relationships, licenses and trademarks. The Company recorded amortization expense of $2.6 million, $2.4 million and $0.8 million for the years ended September 30, 2017, 2016 and 2015, respectively. During the year ended September 30, 2016, the Company acquired 100% of the shares of both Creagh Medical Ltd. (“Creagh Medical”) and NorMedix, Inc. (“NorMedix”). These acquisitions (collectively, “Fiscal 2016 Acquisitions”) resulted in an increase in customer lists and relationships, developed technology and in-process research and development (“IPR&D”) of $12.6 million, $8.7 million and $1.0 million, respectively. During the year ended September 30, 2015, the Company acquired certain assets from ImmunO4, LLC resulting in an increase in customer lists, non-compete and other intangible assets of $0.3 million, $0.2 million and $0.1 million, respectively. Intangible assets consisted of the following as of September 30 (in thousands): 2017 Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 8.9 $ 18,293 $ (7,834 ) $ 10,459 Developed technology 11.7 9,297 (1,478 ) 7,819 Non-compete 5.0 230 (103 ) 127 Patents and other 16.5 2,321 (1,423 ) 898 Subtotal 30,141 (10,838 ) 19,303 Unamortized intangible assets: In-process research and development 679 — 679 Trademarks and trade names 580 — 580 Total $ 31,400 $ (10,838 ) $ 20,562 2016 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, excluding any possible future amortization associated with acquired IPR&D, which has not met technological feasibility as of September 30, 2017, estimated amortization expense for each of the next five fiscal years is as follows (in thousands): 2018 $ 2,661 2019 2,661 2020 2,486 2021 2,347 2022 2,307 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, foreign currency exchange rates 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 is 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. The Company assesses indefinite-lived assets for impairment annually in the fourth quarter and whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. Similar to the goodwill impairment test, the indefinite-lived assets impairment test requires the Company to make several estimates about fair value, most of which are based on projected future cash flows. the fair value of certain IPR&D and trade name assets were deemed to be less than their carrying value, due to decreases in estimated future revenue associated with the assets. As a result, impairment losses of $0.3 million and $0.1 million were recorded selling, general and administrative expenses, respectively, in the consolidated statements of income for . the fair value of a trade name asset was deemed to be less than its carrying value. As a result, an impairment loss of less than $0.1 million was recorded in selling, general and administrative in the consolidated statements of income for the year ended September 30, 2016. No other impairment losses were identified during the annual impairment analyses. |
Goodwill | Goodwill Goodwill represents the excess of the cost of an acquired entity over the fair value assigned to the assets purchased and liabilities assumed in connection with a company’s acquisition. Goodwill is not amortized but is subject, at a minimum, to annual tests for impairment in accordance with accounting guidance for goodwill. The carrying amount of goodwill is evaluated annually, and between annual evaluations if events occur or circumstances change indicating that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company’s reporting units are the In Vitro Diagnostics operations known as its In Vitro Diagnostics unit which contains its BioFX branded products and the Surmodics device drug delivery, hydrophilic coatings and medical device manufacturing operations known as the Medical Device unit. Inherent in the determination of fair value of the reporting units are certain estimates and judgments, including the interpretation of current economic indicators and market valuations as well as the Company’s strategic plans with regard to its operations. The Company performed its annual impairment tests of goodwill as of August 31, 2017 and 2016, elected to perform the quantitative assessment described above for each of its reporting units. The Company did not record any goodwill impairment charges as it was determined that the reporting units’ fair values were greater than their carrying values. This impairment assessment is reliant on forecasted cash flows, as well as the selected discount rate, which are inherently subjective and require significant estimates. Differences in the reporting units’ actual future operating results as compared with these forecasts estimates could materially affect the estimation of the fair value of the reporting units. In accordance with ASU 2017-04, which was prospectively adopted effective July 1, 2017, an impairment charge is recorded for the amount by which the carrying value of the reporting unit exceeds the fair value of the reporting unit, as calculated in the quantitative analysis described above. The Company did not record any goodwill impairment charges using the newly adopted accounting principal in the fiscal year ended September 30, 2017. Prior to the adoption of ASU 2017-04, the measurement of an impairment (Step 2 of the impairment test) would have been calculated by determining the implied fair value of a reporting unit’s goodwill by allocating the fair value of the reporting unit to all other assets and liabilities of that unit based on their relative fair values. The excess of the fair value of a reporting unit over the amount assigned to its other assets and liabilities would have been the implied fair value of goodwill. The Company did not record any goodwill impairment charges using Step 2 of the impairment test in the fiscal years ended September 30, 2016 or 2015. Goodwill as of September 30, 2017 and 2016 totaled $27.3 million and $26.6 million, respectively. The change in the carrying amount of goodwill by segment for the years ended September 30, 2017 and 2016 was as follows (in thousands) (Dollars in thousands) In Vitro Diagnostics Medical Device Total Balance as of September 30, 2015 $ 8,010 $ — $ 8,010 Additions (See Note 3) — 17,892 17,892 Foreign currency translation adjustment — 653 653 Balance as of September 30, 2016 8,010 18,545 26,555 Foreign currency translation adjustment — 727 727 Balance as of September 30, 2017 $ 8,010 $ 19,272 $ 27,282 |
Valuation of Long-Lived Assets | Valuation of Long-Lived Assets Accounting guidance requires the Company to evaluate periodically whether events and circumstances have occurred that may affect the estimated useful life or the recoverability of the remaining balance of long-lived assets, such as property and equipment and intangibles with finite lives. If such events or circumstances were to indicate that the carrying amount of these assets may not be recoverable, the Company would estimate the future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) were less than the carrying amount of the assets, the Company would recognize an impairment charge to reduce such assets to their fair value. In fiscal 2017, 2016 and 2015, there were no impairment charges relating to the Company’s long-lived assets as there were no events or circumstances that occurred that affected the recoverability of such assets. |
Accrued Liabilities | Accrued Liabilities Other accrued liabilities consisted of the following as of September 30 (in thousands): 2017 2016 Accrued professional fees $ 501 $ 262 Accrued clinical study expense 411 283 Accrued inventory purchases 596 315 Due to customers 41 881 Deferred revenue 62 180 Other 224 249 Total $ 1,835 $ 2,170 |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) shipment has occurred or delivery has occurred if the terms specify destination; (3) the sales price is fixed or determinable; and (4) collectability is reasonably assured. When there are additional performance requirements, revenue is recognized when all such requirements have been satisfied. Under revenue arrangements with multiple deliverables, the Company recognizes each separable deliverable as it is earned. The Company derives its revenue from three primary sources: (1) royalties and license fees from licensing our proprietary surface modification and device drug delivery technologies to customers; the vast majority (typically in excess of 90%) of revenue in the “royalties and license fees” category is in the form of royalties; (2) product revenue from the sale of reagent chemicals to licensees, the sale of stabilization products, antigens, substrates and surface coatings to the diagnostic and biomedical research markets as well as the sale of medical devices and related products (such as balloons and catheters) to original equipment manufacturer (OEM) suppliers and distributors; and (3) research and commercial development fees generated on customer projects. Taxes collected from customers and remitted to governmental authorities are excluded from revenue and amounted to $0.1 million for each of the years ended September 30, 2017, 2016 and 2015. |
Royalties and license fees | Royalties and license fees . The Company licenses technology to third parties and collects royalties. Royalty revenue is generated when a customer sells products incorporating the Company’s licensed technologies. Royalty revenue is recognized as licensees report it to the Company, and payment is typically submitted concurrently with the report. For stand-alone license agreements, up-front license fees are recognized based on the terms of the related licensing agreement, either over the term of the agreement or at the point in time when the earnings process is complete. Minimum royalty fees are recognized in the period earned. Revenue related to a performance milestone is recognized upon the achievement of the milestone, as defined in the respective agreements and provided the following conditions have been met: • The milestone payment is non-refundable; • The milestone involved a significant degree of risk, and was not reasonably assured at the inception of the arrangement; • Accomplishment of the milestone involved substantial effort; • The amount of the milestone payment is commensurate with the related effort and risk; and • A reasonable amount of time passed between the initial license payment and the first and subsequent milestone payments. If these conditions have not been met, the milestone payment is deferred and recognized over the term of the agreement. |
Product sales | Product sales. Product sales to third parties consist of original equipment manufacturer (OEM) and distributor sales and are recognized at the time of shipment. The Company’s sa les terms provide no right of return outside of the standard warranty policy. Payment terms are generally set at 30-45 days. |
Research and development | Research and development. The Company performs third-party research and development activities, which are typically provided on a time and materials basis. Generally, revenue for research and development is recorded as performance progresses under the applicable contract, which co rresponds with the period the related costs are incurred. |
Arrangements with multiple deliverables | Arrangements with multiple deliverables. Revenue arrangements with multiple deliverables require the Company to: (i) disclose whether multiple deliverables exist, how the deliverables in an arrangement should be separated, and how the consideration should be allocated; (ii) allocate revenue in an arrangement using estimated selling prices (“ESP”) of deliverables if a vendor does not have vendor-specific objective evidence of selling price (“VSOE”) or third-party evidence of selling price (“TPE”); and (iii) allocate revenue using the relative selling price method. The Company accounts for revenue using a multiple attribution model in which consideration allocated to research and development activities is recognized as performed, and milestone payments are recognized when the milestone events are achieved, when such activities and milestones are deemed substantive. Accordingly, in situations where a unit of accounting includes both a license and research and development activities, and when a license does not have stand-alone value, the Company applies a multiple attribution model in which consideration allocated to the license is recognized ratably, consideration allocated to research and development activities is recognized as performed and milestone payments are recognized when the milestone events are achieved, when such activities and milestones are deemed substantive. The Company enters into license and development arrangements that may consist of multiple deliverables which could include a license(s) to Surmodics’ technology, research and development activities, manufacturing services, and product sales based on the needs of its customers. For example, a customer may enter into an arrangement to obtain a license to Surmodics’ intellectual property which may also include research and development activities, and supply of products manufactured by Surmodics. For these services provided, Surmodics could receive upfront license fees upon signing of an agreement and granting the license, fees for research and development activities as such activities are performed, milestone payments contingent upon advancement of the product through development and clinical stages to successful commercialization, fees for manufacturing services and supply of product, and royalty payments based on customer sales of product incorporating Surmodics’ technology. The Company’s license and development arrangements generally do not have refund provisions if the customer cancels or terminates the agreement. Typically all payments made are non-refundable. The Company is required to evaluate each deliverable in a multiple element arrangement for separability. The Company is then required to allocate revenue to each separate deliverable using a hierarchy of VSOE, TPE, or ESP. In many instances, the Company is not able to establish VSOE for all deliverables in an arrangement with multiple elements. This may be a result of the Company infrequently selling each element separately or having a limited history with multiple element arrangements. When VSOE cannot be established, the Company attempts to establish a selling price of each element based on TPE. TPE is determined based on competitor prices for similar deliverables when sold separately. When the Company is unable to establish a selling price using VSOE or TPE, the Company uses ESP in its allocation of arrangement consideration. The objective of ESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. ESP is generally used for highly customized offerings. The Company determines ESP for undelivered elements by considering multiple factors including, but not limited to, market conditions, competitive landscape and past pricing arrangements with similar features. The determination of ESP is made through consultation with the Company’s management, taking into consideration the marketing strategies for each business unit. |
Deferred Revenue | Deferred Revenue Amounts received prior to satisfying the above revenue recognition criteria are recorded as deferred revenue in the accompanying consolidated balance sheets, with deferred revenue to be recognized beyond one year being classified as non-current deferred revenue. The Company had current and non-current deferred revenue of $0.3 million and $0.4 million as of September 30, 2017 and 2016, respectively included in other accrued liabilities (current) and other long-term liabilities (long-term). Customer overpayments are accounted for as a liability until all criteria for revenue recognition have been met. As of September 30, 2017, and 2016 the Company has recorded a liability of less than $0.1 million and $0.9 million, respectively, for customer royalty overpayments, which are included in other accrued liabilities. |
Concentrations | Concentrations The Company’s licensed technologies provide royalty revenue, which represents the largest revenue stream to the Company. The Company has licenses with a diverse base of customers and certain customers have multiple products using the Company’s technology. Medtronic plc (“Medtronic”) is the Company’s largest customer at approximately 18%, 25% and 26% of total consolidated revenue for the fiscal years ended September 30, 2017, 2016 and 2015, respectively. Medtronic has several separately-licensed products that generate royalty revenue for Surmodics, none of which represented more than 4% of Surmodics’ total revenue. No other individual customer using licensed technology constitutes more than 10% of the Company’s total revenue. The loss of Medtronic or any of our largest customers, or reductions in business from them, could have a material adverse effect on the Company’s business, financial condition, results of operations, and cash flows from operations. The Company’s licensing agreements with many of its customers, including most of its significant customers, cover many licensed products that each separately generates royalty revenue. This structure reduces the potential risk to the Company’s operations that may result from reduced sales (or the termination of a license) of a single product for any specific customer. The Company believes that the credit risk related to marketable securities is limited due to the adherence to an investment policy and that credit risk related to accounts receivable is limited due to a large customer base. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method prescribed in accounting guidance. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the period in which related temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in this assessment. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date of such change. |
Research and Development | Research and Development Research and development (“R&D”) costs are expensed as incurred. Some R&D costs are related to third-party contracts, and the related revenue is recognized as described in “Revenue Recognition” above. Costs associated with customer-related R&D include specific project direct labor costs and material expenses as well as an allocation of overhead costs based on direct labor dollars. Clinical trial costs. The Company sponsors clinical trials intended to obtain the necessary clinical data required to obtain approval from various regulatory agencies to market medical devices developed by the Company. Costs associated with clinical trials are included within R&D expense and include trial design, clinical site reimbursement and third party fees. The Company’s clinical trials are administered by third-party clinical research organizations (“CROs”). These CROs generally bill monthly for certain services performed as well as upon achievement of certain milestones. Milestone payments are amortized as the related services are performed, generally based upon the number of patients enrolled, “patient months” incurred and the duration of the study. The Company monitors patient enrollment, the progress of clinical studies and related activities through internal reviews of data reported to the Company by the CROs and correspondence with the CROs. The Company periodically evaluates its estimates to determine if adjustments are necessary or appropriate based on information it receives. Government funding . The Company is eligible to receive reimbursement for certain qualifying R&D expenditures under a grant from the Industrial Development Agency of Ireland (“IDA”). Reimbursements are recognized as a reduction of R&D expense when there is reasonable assurance that the funding will be received and conditions associated with the funding are met. The Company recorded reimbursements from IDA grants of $0.8 million during fiscal 2017 as a reduction of R&D expense. No reimbursements were recorded during fiscal 2016 or 2015. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Ultimate results could differ from those estimates. |
Discontinued Operations | Discontinued Operations On November 1, 2011, the Company entered into a definitive agreement (the “Purchase Agreement”) to sell substantially all of the assets of its wholly-owned subsidiary, SurModics Pharmaceuticals, to Evonik Degussa Corporation (“Evonik”). Pharmaceuticals discontinued operations used operating cash of less than $0.1 million in fiscal 2015. Cash generated from financing activities of less than $0.1 million in fiscal 2015 related to transfers of cash from continuing operations of Surmodics and consisted of cash used to make payments on accrual balances. There was no discontinued operations activity in fiscal 2017 or 2016. |
Income Per Share Data | Income Per Share Data Basic income per common share is calculated based on the weighted average number of common shares outstanding during the period. Diluted income per common share is computed by dividing income by the weighted average number of common and common equivalent shares outstanding during the period. The Company’s only potentially dilutive common shares are those that result from dilutive common stock options and non-vested stock relating to restricted stock awards, restricted stock units and performance shares. The following table sets forth the denominator for the computation of basic and diluted income per share for each of the fiscal years ended September 30 (in thousands): 2017 2016 2015 Net income from continuing operations available to common shareholders $ 3,926 $ 9,985 $ 11,947 Basic weighted average shares outstanding 13,153 12,998 13,029 Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units and performance shares 236 221 260 Diluted weighted average shares outstanding 13,389 13,219 13,289 The calculation of weighted average diluted shares outstanding excludes outstanding common stock options associated with the right to purchase 0.2 million, 0.7 million and 0.5 million shares for fiscal 2017, 2016 and 2015, respectively, as their inclusion would have had an antidilutive effect on diluted income per share. |
Currency Translation | Currency Translation The Company’s reporting currency is the U.S. Dollar. Assets and liabilities of non-U.S. dollar functional currency subsidiaries are translated into U.S. dollars at the period-end exchange rates, and revenue and expenses are translated at the average quarterly exchange rates during the period. The net effect of these translation adjustments on the consolidated financial statements is recorded as a foreign currency translation adjustment, a component of accumulated other comprehensive income |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Standards to be Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) Update No. 2014-09, Revenue from Contracts with Customers (ASC Topic 606) This accounting standard will be effective for the Company beginning in the first quarter of fiscal year 2019 (October 1, 2018) using one of two prescribed retrospective methods. The Company is currently evaluating the impact that the adoption of this standard will have on the Company’s business model and consolidated results of operations, cash flows and financial position. The Company currently plans to adopt the standard using the modified retrospective approach and expects the impact will be material to the consolidated financial statements due to an anticipated one-quarter acceleration of minimum license fees and royalty revenue earned under its hydrophilic license agreements, as well as require several additional financial statement footnote disclosures. In February 2016, the FASB issued Accounting Standards Update ASU 2016-02, Leases (ASC Topic 842) believes the impact will be material due to the right-of-use assets and lease liabilities that will be recorded on the Company’s consolidated balance sheets upon adoption of the standard In June 2016, the FASB issued ASU No 2016-13, Financial Instruments – Credit Losses (ASC Topic 326), Measurement of Credit Losses on Financial Statements Accounting Standards Implemented In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments The accounting standard will be effective for the Company beginning in the first quarter of fiscal 2018 The Company prospectively adopted this accounting standard on July 1, 2017 without any material impact on the Company’s consolidated statement of cash flows. Under the guidance, if and when our contingent consideration liabilities are paid, a portion of the payment will be classified as cash flows from operations, with the remainder classified as cash flows from financing activities. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment No other new accounting pronouncement issued or effective has had, or is expected to have, a material impact on the Company’s consolidated financial statements. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies and Select Balance Sheet Information (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Amortized Cost, Unrealized Holding Gains (Losses) and Fair Value of Available for Sale Securities | The amortized cost, unrealized holding gains and losses, and fair value of available-for-sale securities as of September 30, 2017 and 2016 (in thousands): September 30, 2017 (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper and corporate bonds $ 31,817 $ — $ (15 ) $ 31,802 Total $ 31,817 $ — $ (15 ) $ 31,802 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 |
Components of Inventories | Inventories consisted of the following components as of September 30 (in thousands): 2017 2016 Raw materials $ 1,603 $ 1,766 Work in-process 659 492 Finished products 1,254 1,321 Total $ 3,516 $ 3,579 |
Schedule of Property, Plant and Equipment | Property and equipment consisted of the following components as of September 30 (in thousands): Useful Life 2017 2016 (In years) Land N/A $ 4,420 $ 4,359 Laboratory fixtures and equipment 3 to 10 19,491 15,243 Buildings and improvements 3 to 20 21,924 19,589 Office furniture and equipment 3 to 10 4,541 3,948 Construction-in-progress 2,493 3,441 Less accumulated depreciation (29,927 ) (26,979 ) Property and equipment, net $ 22,942 $ 19,601 |
Summary of Other Assets | Other assets consist principally of the following as of September 30 (in thousands): 2017 2016 ViaCyte, Inc. $ 479 $ 479 Other noncurrent assets 418 149 Other assets, net $ 897 $ 628 |
Schedule of Intangible Assets | Intangible assets consisted of the following as of September 30 (in thousands): 2017 Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 8.9 $ 18,293 $ (7,834 ) $ 10,459 Developed technology 11.7 9,297 (1,478 ) 7,819 Non-compete 5.0 230 (103 ) 127 Patents and other 16.5 2,321 (1,423 ) 898 Subtotal 30,141 (10,838 ) 19,303 Unamortized intangible assets: In-process research and development 679 — 679 Trademarks and trade names 580 — 580 Total $ 31,400 $ (10,838 ) $ 20,562 2016 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, excluding any possible future amortization associated with acquired IPR&D, which has not met technological feasibility as of September 30, 2017, estimated amortization expense for each of the next five fiscal years is as follows (in thousands): 2018 $ 2,661 2019 2,661 2020 2,486 2021 2,347 2022 2,307 |
Schedule Of Carrying Amount Of Goodwill By Segment | The change in the carrying amount of goodwill by segment for the years ended September 30, 2017 and 2016 was as follows (in thousands) (Dollars in thousands) In Vitro Diagnostics Medical Device Total Balance as of September 30, 2015 $ 8,010 $ — $ 8,010 Additions (See Note 3) — 17,892 17,892 Foreign currency translation adjustment — 653 653 Balance as of September 30, 2016 8,010 18,545 26,555 Foreign currency translation adjustment — 727 727 Balance as of September 30, 2017 $ 8,010 $ 19,272 $ 27,282 |
Schedule of Other Accrued Liabilities | Other accrued liabilities consisted of the following as of September 30 (in thousands): 2017 2016 Accrued professional fees $ 501 $ 262 Accrued clinical study expense 411 283 Accrued inventory purchases 596 315 Due to customers 41 881 Deferred revenue 62 180 Other 224 249 Total $ 1,835 $ 2,170 |
Denominator for Computation of Basic and Diluted Income Per Share | The following table sets forth the denominator for the computation of basic and diluted income per share for each of the fiscal years ended September 30 (in thousands): 2017 2016 2015 Net income from continuing operations available to common shareholders $ 3,926 $ 9,985 $ 11,947 Basic weighted average shares outstanding 13,153 12,998 13,029 Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units and performance shares 236 221 260 Diluted weighted average shares outstanding 13,389 13,219 13,289 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Creagh Medical Ltd [Member] | |
Business Acquisition [Line Items] | |
Summary of Purchase Price | The purchase price of Creagh Medical consisted of the following (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 (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 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 7.0 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 |
Creagh Medical and NorMedix [Member] | |
Business Acquisition [Line Items] | |
Schedule of Pro Forma Financial Information | Years Ended September 30, 2016 2015 (In thousands, except per share data) (Unaudited) Revenue $ 72,416 $ 65,432 Net income $ 12,315 $ 6,583 Per share amounts: Basic net income per share $ 0.95 $ 0.51 Diluted net income per share $ 0.93 $ 0.50 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 (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, 2017 Assets Cash equivalents $ — $ 6,639 $ — $ 6,639 Available-for-sale securities — 31,802 $ 31,802 Total assets $ — $ 38,441 $ — $ 38,441 Liabilities Contingent consideration $ — $ — $ (14,864 ) $ (14,864 ) Total liabilities $ — $ — $ (14,864 ) $ (14,864 ) 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 (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 Liability | The following table summarizes the changes in the contingent consideration liability for fiscal 2017 and 2016: (Dollars in thousands) Contingent consideration liability at September 30, 2015 $ — Additions 12,584 Fair value adjustments 70 Settlements — Interest accretion 1,422 Foreign currency translation 441 Contingent consideration liability at September 30, 2016 14,517 Additions — Fair value adjustments (2,350 ) Settlements — Interest accretion 2,223 Foreign currency translation 474 Contingent consideration liability at September 30, 2017 $ 14,864 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Expenses | The Company’s stock-based compensation expenses for the years ended September 30 were allocated to the following expense categories 2017 2016 2015 Product costs $ 90 $ 22 $ 24 Research and development 510 324 226 Selling, general and administrative 2,872 3,498 2,131 Total stock-based compensation expense $ 3,472 $ 3,844 $ 2,381 |
Assumptions Used in Stock Option Plans | The assumptions used as inputs in the model for the years ended September 30 were as follows: 2017 2016 2015 Risk-free interest rates 1.74 % 1.89 % 1.43 % Expected life 4.6 years 4.6 years 4.5 years Expected volatility 34 % 37 % 43 % Dividend yield 0 % 0 % 0 % |
Schedule of Stock Option Activity | The following table summarizes all stock options activity and stock options outstanding and exercisable under the stock option plans during fiscal 2017, 2016 and 2015: Number of Shares Weighted Average Exercise Price Outstanding at September 30, 2014 1,210,619 $ 20.35 Granted 164,401 21.24 Exercised (166,422 ) 14.54 Forfeited and expired (90,590 ) 35.35 Outstanding at September 30, 2015 1,118,008 20.10 Granted 241,582 20.63 Exercised (437,850 ) 15.68 Forfeited and expired (94,415 ) 31.52 Outstanding at September 30, 2016 827,325 21.30 Granted 229,039 24.08 Exercised (6,819 ) 13.89 Forfeited and expired (47,640 ) 30.65 Outstanding at September 30, 2017 1,001,905 21.54 Exercisable at September 30, 2017 547,051 $ 20.80 |
Schedule of Restricted Stock Awards Activity | The following table summarizes all restricted stock awards activity during fiscal 2017, 2016 and 2015: Number of Shares Weighted Average Grant Price Balance at September 30, 2014 18,624 $ 22.45 Granted 18,073 21.84 Vested (7,606 ) 22.28 Forfeited (1,316 ) 22.16 Balance at September 30, 2015 27,775 22.12 Granted 20,108 20.14 Vested (12,311 ) 22.19 Forfeited (2,439 ) 21.17 Balance at September 30, 2016 33,133 20.96 Granted 51,559 25.12 Vested (14,497 ) 21.10 Forfeited (2,278 ) 25.12 Balance at September 30, 2017 67,917 $ 23.98 |
Schedule of Fair Value at the Date of Grant | The aggregate number of shares that could be awarded to key employees if the minimum, target and maximum performance goals are met, based upon the fair value at the date of grant is as follows: Performance Period Minimum Shares Target Shares Maximum Shares Fiscal 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 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Taxes from Continuing Operations | Income taxes from continuing operations in the accompanying consolidated statements of income for the fiscal years ended September 30 are as follows (in thousands): 2017 2016 2015 Current provision: U.S. Federal $ 2,125 $ 6,550 $ 6,065 U.S. State (72 ) 250 106 International 54 (98 ) 30 Total current provision 2,107 6,702 6,201 Deferred provision (benefit): U.S. Federal 1,085 169 58 U.S. State (85 ) (43 ) 35 International — 135 — Total deferred provision (benefit) 1,000 261 93 Total provision $ 3,107 $ 6,963 $ 6,294 |
Schedule of Reconciliation Difference of Income Taxes | The reconciliation of the difference between amounts calculated at the statutory U.S. federal tax rate of 35% for the fiscal years ended September 30 and the Company’s effective tax rate from continuing operations is as follows (in thousands): 2017 2016 2015 Amount at statutory U.S. federal income tax rate $ 2,461 $ 5,932 $ 6,385 Change because of the following items: State income taxes, net of federal benefit (13 ) 142 67 Stock-based compensation 330 (607 ) 16 Valuation allowance change 665 (2,500 ) 348 Tax reserve change (52 ) 258 34 Federal manufacturing deduction (313 ) (280 ) (268 ) U.S. Federal and foreign research and development credits (706 ) (571 ) (74 ) Gain on strategic investment and corporate subsidiary — 2,630 — Foreign rate differential 948 622 — Acquisition-related transaction costs — 768 — Contingent consideration (gain) expense (45 ) 522 — Unrealized foreign currency exchange loss on contingent consideration obligation 170 — — Other (338 ) 47 (214 ) Income tax provision $ 3,107 $ 6,963 $ 6,294 |
Schedule of Deferred Income Taxes | The components of deferred income taxes consisted of the following as of September 30 and result from differences in the recognition of transactions for income tax and financial reporting purposes (in thousands): 2017 2016 Depreciable assets $ (3,335 ) $ (2,257 ) Accruals and reserves 1,123 1,153 Stock-based compensation 3,370 3,113 Impaired strategic investments 2,701 2,701 NOL carryforwards 3,627 3,324 U.S. Federal and state R&D credits 242 110 Other 810 730 Valuation allowance (4,511 ) (3,847 ) Total deferred tax assets $ 4,027 $ 5,027 |
Summary of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands): 2017 2016 2015 Beginning of fiscal year $ 1,508 $ 1,248 $ 1,216 Increases in tax positions for prior years 8 77 50 Decreases in tax positions for prior years (35 ) (21 ) (10 ) Increases in tax positions for current year 216 365 146 Lapse of the statute of limitations (216 ) (161 ) (154 ) End of fiscal year $ 1,481 $ 1,508 $ 1,248 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Annual Commitments Pursuant to Operating Lease Agreements | Annual commitments pursuant to operating lease agreements in place as of September 30, 2017 are as follows (in thousands): Year Ended September 30, 2018 $ 114 2019 73 2020 74 2021 12 2022 — Thereafter — Total minimum lease payments $ 273 |
Reportable Segment Information
Reportable Segment Information (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Revenue, Operating Income and Depreciation and Amortization | The tables below present segment revenue, operating income from continuing operations and depreciation and amortization, for the years ended September 30, as follows (in thousands): 2017 2016 2015 Revenue: Medical Device $ 53,983 $ 53,202 $ 45,944 In Vitro Diagnostics 19,129 18,164 15,954 Total revenue $ 73,112 $ 71,366 $ 61,898 Operating income (loss): Medical Device $ 6,902 $ 16,975 $ 21,192 In Vitro Diagnostics 8,293 7,115 4,484 Total segment operating income 15,195 24,090 25,676 Corporate (8,092 ) (7,231 ) (6,587 ) Total operating income $ 7,103 $ 16,859 $ 19,089 Depreciation and amortization: Medical Device $ 4,453 $ 3,261 $ 1,138 In Vitro Diagnostics 412 789 873 Corporate 690 823 794 Total depreciation and amortization $ 5,555 $ 4,873 $ 2,805 |
Revenue from Major Customers | Revenue from customers that equaled or exceeded 10% of total revenue was as follows for the years ended September 30: 2017 2016 2015 Medtronic 18 % 25 % 26 % |
Geographic Revenue and Long-lived Assets | Geographic revenue was as follows for the years ended September 30: 2017 2016 2015 Domestic 77 % 79 % 77 % Foreign 23 % 21 % 23 % Long-lived assets, including property and equipment and intangible assets net of accumulated depreciation and amortization, respectively, by country were as follows as of September 30: 2017 2016 U.S. $ 20,949 $ 21,543 Ireland 22,555 20,583 |
Quarterly Financial Data (Una30
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Quarterly Results | The following is a summary of the unaudited quarterly results for the years ended September 30, 2017 and 2016 (in thousands, except per share data). First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2017 Total revenue $ 17,761 $ 17,503 $ 17,790 $ 20,058 Operating income 3,268 1,677 1,743 415 Net income 2,300 506 720 400 Basic net income per share (1): 0.17 0.04 0.05 0.03 Diluted net income per share (1): 0.17 0.04 0.05 0.03 Fiscal 2016 Total revenue $ 16,541 $ 16,699 $ 19,972 $ 18,154 Operating income 3,939 2,240 6,597 4,083 Net income 2,653 821 3,934 2,577 Basic net income per share (1): 0.20 0.06 0.31 0.20 Diluted net income per share (1): 0.20 0.06 0.30 0.20 (1) The sum of the quarterly income per share amounts may not equal the annual income per share total because of changes in the weighted average number of shares outstanding that occurred during the year. |
Schedule of Valuation and Qua31
Schedule of Valuation and Qualifying Accounts - Valuation and Qualifying Accounts (Detail) - Allowance for doubtful accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 19 | $ 10 | $ 42 |
Additions Charged (Credited) to Expenses | 222 | 9 | |
Deductions From Reserves | 11 | 32 | |
Balance at End of Period | $ 230 | $ 19 | $ 10 |
Description - Additional Inform
Description - Additional Information (Detail) | 12 Months Ended |
Sep. 30, 2017 | |
Royalties [Member] | Minimum [Member] | Revenue from Rights Concentration Risk [Member] | Revenue, Rights Granted [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Percentage of revenue | 90.00% |
Summary of Significant Accoun33
Summary of Significant Accounting Policies and Select Balance Sheet Information - Additional Information (Detail) - USD ($) shares in Millions | 3 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2015 | Mar. 31, 2013 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2006 | Jan. 08, 2016 | Nov. 20, 2015 | Nov. 10, 2015 | |
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Net unrealized loss reclassified out of accumulated other comprehensive income with a corresponding adjustment to other income (loss) | $ 0 | $ 0 | $ 0 | ||||||
Held-to-maturity debt securities | 0 | 0 | |||||||
Realized gains or losses on sales of available-for-sale securities | 0 | 0 | |||||||
Realized gains on sales of available-for-sale securities | 500,000 | ||||||||
Realized losses on sales of available-for-sale securities | (100,000) | ||||||||
Depreciation expense | 3,000,000 | 2,300,000 | 2,000,000 | ||||||
Impairment loss on investment | 0 | ||||||||
Transfer to Investments | 2,000 | ||||||||
Gain on sale of investment | 43,000 | 514,000 | 492,000 | ||||||
Amortization expense | 2,600,000 | 2,400,000 | 800,000 | ||||||
Other impairment losses | 0 | ||||||||
Goodwill | $ 8,010,000 | 27,282,000 | 26,555,000 | 8,010,000 | |||||
Goodwill impairment charges | 0 | ||||||||
Additions to goodwill | 17,892,000 | ||||||||
Goodwill subject to revaluation due to fluctuations in exchange rates | 13,400,000 | ||||||||
Impairment charges relating to long-lived assets | 0 | 0 | 0 | ||||||
Taxes collected from customers and remitted to governmental authorities | $ 100,000 | $ 100,000 | 100,000 | ||||||
Discontinued operations used operating cash | 45,000 | ||||||||
Cash generated from financing activities | $ 45,000 | ||||||||
Weighted average diluted shares outstanding excluded outstanding stock options | 0.2 | 0.7 | 0.5 | ||||||
SurModics Pharmaceuticals [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Discontinued operations activity | $ 0 | $ 0 | |||||||
IDA [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Reimbursement recorded as reduction to R&D expense | 800,000 | 0 | $ 0 | ||||||
Other Accrued Liabilities, Current and Other Long-term Liabilities [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Current and non-current deferred revenue | $ 300,000 | $ 400,000 | |||||||
Customer Concentration Risk [Member] | Revenue [Member] | Medtronic [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of revenue | 18.00% | 25.00% | 26.00% | ||||||
Medical Device [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Goodwill | $ 19,272,000 | $ 18,545,000 | |||||||
Additions to goodwill | 17,892,000 | ||||||||
Customer Lists [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Intangible assets, acquired | 12,600,000 | $ 300,000 | |||||||
Non-compete [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Intangible assets, acquired | 200,000 | ||||||||
Other Intangible Assets [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Intangible assets, acquired | 100,000 | ||||||||
Developed Technology [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Intangible assets, acquired | 8,700,000 | ||||||||
In-Process Research and Development [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Intangible assets, acquired | $ 1,000,000 | ||||||||
Creagh Medical Ltd [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of shares acquired | 100.00% | 100.00% | |||||||
Goodwill | 13,440,000 | ||||||||
NorMedix, Inc. [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of shares acquired | 100.00% | 100.00% | |||||||
Goodwill | 4,452,000 | ||||||||
Other Income, Net [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Gain on sale of investment | 500,000 | ||||||||
Selling, General and Administrative Expenses [Member] | Trade Names [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Impairment loss | 100,000 | ||||||||
Research and development [Member] | In-Process Research and Development [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Impairment loss | 300,000 | ||||||||
ViaCyte, Inc. [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Impairment loss on investment | $ 100,000 | $ 4,700,000 | |||||||
Equity method investment | 5,300,000 | ||||||||
Cost method of investment | 500,000 | ||||||||
Maximum [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Revenue recognized from activity with companies in which it had strategic investment | $ 100,000 | $ 100,000 | 100,000 | ||||||
Product sales payment terms | 45 days | ||||||||
Maximum [Member] | SurModics Pharmaceuticals [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Discontinued operations used operating cash | 100,000 | ||||||||
Cash generated from financing activities | $ 100,000 | ||||||||
Maximum [Member] | Other Accrued Liabilities [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Liability recorded for customer royalty overpayments | $ 100,000 | 900,000 | |||||||
Maximum [Member] | Customer Concentration Risk [Member] | Revenue [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of revenue | 10.00% | ||||||||
Maximum [Member] | Product Concentration Risk [Member] | Revenue [Member] | Medtronic [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of revenue | 4.00% | ||||||||
Maximum [Member] | Selling, General and Administrative Expenses [Member] | In-Process Research and Development [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Impairment loss | 100,000 | ||||||||
Maximum [Member] | ViaCyte, Inc. [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Company's ownership percentage | 1.00% | ||||||||
Minimum [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Product sales payment terms | 30 days | ||||||||
Minimum [Member] | Royalties [Member] | Revenue from Rights Concentration Risk [Member] | Revenue, Rights Granted [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of revenue | 90.00% | ||||||||
CeloNova BioSciences, Inc. [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Gross value of business acquired | $ 70,000,000 | ||||||||
Impairment loss on investment | $ 1,500,000 | 0 | |||||||
Equity method investment | $ 0 | $ 0 | |||||||
CeloNova BioSciences, Inc. [Member] | Maximum [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Company's ownership percentage | 2.00% |
Summary of Significant Accoun34
Summary of Significant Accounting Policies and Select Balance Sheet Information - Disclosure - Amortized Cost, Unrealized Holding Gains and (Losses) and Fair Value of Available-for-sale Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 31,817 | $ 22,019 |
Unrealized Losses | (15) | (65) |
Fair Value | 31,802 | 21,954 |
Commercial paper and corporate bonds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 31,817 | 22,019 |
Unrealized Losses | (15) | (65) |
Fair Value | $ 31,802 | $ 21,954 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies and Select Balance Sheet Information - Components of Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,603 | $ 1,766 |
Work in-process | 659 | 492 |
Finished products | 1,254 | 1,321 |
Total | $ 3,516 | $ 3,579 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies and Select Balance Sheet Information - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Less accumulated depreciation | $ (29,927) | $ (26,979) |
Property and equipment, net | 22,942 | 19,601 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 4,420 | 4,359 |
Laboratory Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 19,491 | 15,243 |
Laboratory Fixtures and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Useful Life | 3 years | |
Laboratory Fixtures and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Useful Life | 10 years | |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 21,924 | 19,589 |
Building and Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Useful Life | 3 years | |
Building and Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Useful Life | 20 years | |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 4,541 | 3,948 |
Office Furniture and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Useful Life | 3 years | |
Office Furniture and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Useful Life | 10 years | |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 2,493 | $ 3,441 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies and Select Balance Sheet Information - Summary of Other Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Schedule of Investments [Line Items] | ||
Other assets, net | $ 897 | $ 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 | $ 418 | $ 149 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies and Select Balance Sheet Information - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Accumulated Amortization | $ (10,838) | $ (8,604) |
Intangible assets, Gross Carrying Amount | 31,400 | 31,129 |
Intangible assets, Net | $ 20,562 | $ 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 | $ 18,293 | $ 17,692 |
Definite-lived intangible assets, Accumulated Amortization | (7,834) | (6,123) |
Definite-lived intangible assets, Net | $ 10,459 | $ 11,569 |
Core Technology [Member] | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Weighted Average Original Life (Years) | 8 years | |
Definite-lived intangible assets, Gross Carrying Amount | $ 530 | |
Definite-lived intangible assets, Accumulated Amortization | $ (530) | |
Developed Technology [Member] | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Weighted Average Original Life (Years) | 11 years 8 months 12 days | 11 years 9 months 18 days |
Definite-lived intangible assets, Gross Carrying Amount | $ 9,297 | $ 8,724 |
Definite-lived intangible assets, Accumulated Amortization | (1,478) | (618) |
Definite-lived intangible assets, Net | $ 7,819 | $ 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 | (103) | (58) |
Definite-lived intangible assets, Net | $ 127 | $ 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 | $ 2,321 | $ 2,321 |
Definite-lived intangible assets, Accumulated Amortization | (1,423) | (1,275) |
Definite-lived intangible assets, Net | 898 | 1,046 |
Definite-Lived Intangible Assets [Member] | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross Carrying Amount | 30,141 | 29,497 |
Definite-lived intangible assets, Accumulated Amortization | (10,838) | (8,604) |
Definite-lived intangible assets, Net | 19,303 | 20,893 |
In-Process Research and Development [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Net | 679 | 987 |
Trademarks and Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Net | $ 580 | $ 645 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies and Select Balance Sheet Information - Estimated Amortization Expense (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2,018 | $ 2,661 |
2,019 | 2,661 |
2,020 | 2,486 |
2,021 | 2,347 |
2,022 | $ 2,307 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies and Select Balance Sheet Information - Schedule Of Carrying Amount of Goodwill by Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill [Line Items] | ||
Beginning Balance | $ 26,555 | $ 8,010 |
Additions (See Note 3) | 17,892 | |
Foreign currency translation adjustment | 727 | 653 |
Ending Balance | 27,282 | 26,555 |
In Vitro Diagnostics [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance | 8,010 | 8,010 |
Ending Balance | 8,010 | 8,010 |
Medical Device [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance | 18,545 | |
Additions (See Note 3) | 17,892 | |
Foreign currency translation adjustment | 727 | 653 |
Ending Balance | $ 19,272 | $ 18,545 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies and Select Balance Sheet Information - Schedule of Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Accrued Liabilities Current [Abstract] | ||
Accrued professional fees | $ 501 | $ 262 |
Accrued clinical study expense | 411 | 283 |
Accrued inventory purchases | 596 | 315 |
Due to customers | 41 | 881 |
Deferred revenue | 62 | 180 |
Other | 224 | 249 |
Total | $ 1,835 | $ 2,170 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies and Select Balance Sheet Information - Denominator for Computation of Basic and Diluted Income Per Share (Detail) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |||
Net income from continuing operations available to common shareholders | $ 3,926 | $ 9,985 | $ 11,947 |
Basic weighted average shares outstanding | 13,153 | 12,998 | 13,029 |
Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units and performance shares | 236 | 221 | 260 |
Diluted weighted average shares outstanding | 13,389 | 13,219 | 13,289 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) $ in Thousands, € in Millions | Jan. 08, 2016USD ($) | Nov. 20, 2015USD ($) | Nov. 20, 2015EUR (€) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Nov. 20, 2015EUR (€) |
Business Acquisition [Line Items] | |||||||||||||||||
Acquisition transaction, integration and other costs | $ 3,187 | ||||||||||||||||
Business acquisition, revenue recognized | $ 20,058 | $ 17,790 | $ 17,503 | $ 17,761 | $ 18,154 | $ 19,972 | $ 16,699 | $ 16,541 | $ 73,112 | 71,366 | $ 61,898 | ||||||
Business acquisition, loss recognized | $ 400 | $ 720 | $ 506 | $ 2,300 | $ 2,577 | $ 3,934 | $ 821 | 2,653 | 3,926 | $ 9,985 | 11,947 | ||||||
Creagh Medical Ltd [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Outstanding common shares and voting shares percentage | 100.00% | 100.00% | 100.00% | 100.00% | 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 | $ 2,700 | ||||||||||||||||
Business acquisition, revenue recognized | $ 3,300 | ||||||||||||||||
Business acquisition, loss recognized | $ (2,700) | ||||||||||||||||
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% | 100.00% | 100.00% | 100.00% | 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 | $ 300 | ||||||||||||||||
Business acquisition, revenue recognized | $ 900 | ||||||||||||||||
Business acquisition, loss recognized | $ (400) | ||||||||||||||||
NorMedix, Inc. [Member] | Maximum [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Payments to acquire business | $ 14,000 | ||||||||||||||||
Creagh Medical and NorMedix [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Acquisition transaction, integration and other costs | $ 2,500 | ||||||||||||||||
Creagh Medical and NorMedix [Member] | Unaudited Pro Forma [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Amortization expense on intangible assets | 2,800 | 3,200 | |||||||||||||||
Contingent consideration accretion expense | 1,800 | 2,100 | |||||||||||||||
Non-recurring professional fees | 3,200 | ||||||||||||||||
Tax effect impact | $ 200 | $ 500 |
Business Combinations - Summary
Business Combinations - Summary of Purchase Price (Detail) $ in Thousands, € in Millions | Jan. 08, 2016USD ($) | Nov. 20, 2015USD ($) | Nov. 20, 2015EUR (€) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) |
Business Acquisition [Line Items] | |||||
Contingent consideration | $ 14,900 | $ 14,500 | |||
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 - Summa45
Business Combinations - Summary of Purchase Price Allocation to the Fair Values Assigned to the Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 27,282 | $ 26,555 | $ 8,010 |
Developed Technology [Member] | |||
Business Acquisition [Line Items] | |||
Estimated Useful Life (In years) | 11 years 8 months 12 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 | ||
Estimated Useful Life (In years) | 7 years | ||
NorMedix, Inc. [Member] | Developed Technology [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 6,850 | ||
NorMedix, Inc. [Member] | Developed Technology [Member] | Minimum [Member] | |||
Business Acquisition [Line Items] | |||
Estimated Useful Life (In years) | 10 years | ||
NorMedix, Inc. [Member] | Developed Technology [Member] | Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Estimated Useful Life (In years) | 14 years | ||
NorMedix, Inc. [Member] | Customer Relationship [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 900 | ||
Estimated Useful Life (In years) | 4 years |
Business Combinations - Pro For
Business Combinations - Pro Forma Financial Information (Detail) - Creagh Medical and NorMedix [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Business Acquisition [Line Items] | ||
Revenue | $ 72,416 | $ 65,432 |
Net income | $ 12,315 | $ 6,583 |
Per share amounts: | ||
Basic net income per share | $ 0.95 | $ 0.51 |
Diluted net income per share | $ 0.93 | $ 0.50 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) € in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2016EUR (€) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Contingent consideration liability | $ 14,900,000 | $ 14,500,000 | ||
Contingent consideration liability, noncurrent | 13,114,000 | 13,592,000 | ||
Level 3 assets | 0 | 0 | ||
Transfers in or out Level 3, Assets | 0 | 0 | ||
Transfers in or out Level 3, Liabilities | 0 | 0 | ||
Impairment loss on investment | $ 0 | |||
CeloNova BioSciences, Inc. [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Impairment loss on investment | $ 1,500,000 | $ 0 | ||
Minimum [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Percentage of Probability Achievement of Contingent Consideration payment. | 25.00% | 25.00% | ||
Maximum [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Percentage of Probability Achievement of Contingent Consideration payment. | 100.00% | 100.00% | ||
Contingent Consideration [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Foreign currency loss | $ 500,000 | $ 400,000 | ||
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 | 14.00% | 14.10% | ||
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 | 2.70% | 5.60% | ||
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 | 23.50% | 22.80% | ||
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 | 3.00% | 6.70% | ||
Creagh Medical Ltd [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Contingent consideration liability | $ 9,064,000 | |||
Contingent consideration related to acquisition | $ 14,200,000 | € 12 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | $ 38,441 | $ 44,114 |
Liabilities measured at fair value | (14,864) | (14,517) |
Available-for-sale securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 31,802 | 21,954 |
Cash equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 6,639 | 22,160 |
Contingent consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (14,864) | (14,517) |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 38,441 | 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 | 31,802 | 21,954 |
Significant Other Observable Inputs (Level 2) [Member] | Cash equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 6,639 | 22,160 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (14,864) | (14,517) |
Significant Unobservable Inputs (Level 3) [Member] | Contingent consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liabilities measured at fair value | $ (14,864) | $ (14,517) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Contingent Consideration Liability (Detail) - Contingent Consideration [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Contingent consideration liability, beginning balance | $ 14,517 | |
Additions | $ 12,584 | |
Fair value adjustments | (2,350) | 70 |
Interest accretion | 2,223 | 1,422 |
Foreign currency translation | 474 | 441 |
Contingent consideration liability, ending balance | $ 14,864 | $ 14,517 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Jul. 08, 2015 | Nov. 11, 2014 | Sep. 30, 2017 | Sep. 30, 2015 | Nov. 06, 2015 | Nov. 05, 2014 |
Stockholders Equity [Line Items] | ||||||
Common stock repurchased, Shares | 196,190 | |||||
Payments for repurchase of common stock | $ 4,702,000 | $ 20,000,000 | ||||
Stock repurchased average price per share | $ 23.97 | |||||
Remaining amount available for repurchases of shares | $ 25,300,000 | |||||
Accelerated Share Repurchase Program [Member] | ||||||
Stockholders Equity [Line Items] | ||||||
Maximum payments for repurchase of common stock | $ 20,000,000 | $ 30,000,000 | ||||
Common stock repurchased, Shares | 847,864 | |||||
Fair value of common stock | $ 16,000,000 | |||||
Reduction in common stock | 100,000 | |||||
Reduction in additional paid-in capital | 2,500,000 | |||||
Reduction in retained earnings | 13,500,000 | |||||
Initial payment to bank reported as reduction in retained earnings | $ 4,000,000 | |||||
Accelerate share repurchase program, price per share | $ 23.59 | |||||
Accelerated Share Repurchase Program [Member] | Investment Bank [Member] | ||||||
Stockholders Equity [Line Items] | ||||||
Common stock repurchased, Shares | 758,143 | |||||
Fair value of common stock | $ 20,000,000 | |||||
Transaction One [Member] | Accelerated Share Repurchase Program [Member] | ||||||
Stockholders Equity [Line Items] | ||||||
Common stock repurchased, Shares | 758,143 | |||||
Transaction Two [Member] | Accelerated Share Repurchase Program [Member] | ||||||
Stockholders Equity [Line Items] | ||||||
Common stock repurchased, Shares | 89,721 |
Stock-Based Compensation Plan51
Stock-Based Compensation Plans - Stock-based Compensation Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 3,472 | $ 3,844 | $ 2,381 |
Product costs [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 90 | 22 | 24 |
Research and development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 510 | 324 | 226 |
Selling, general and administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 2,872 | $ 3,498 | $ 2,131 |
Stock-Based Compensation Plan52
Stock-Based Compensation Plans - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Stock-Based Compensation Activity [Line Items] | |||||
Unrecognized compensation costs related to non-vested awards | $ 4,700,000 | ||||
Weighted average period for recognition of compensation costs related to non-vested awards | 2 years 1 month 7 days | ||||
Performance share awards fully expensed | $ 1,500,000 | ||||
Weighted average per share fair value of stock options | $ 7.63 | $ 6.95 | $ 7.26 | ||
Dividend rates | 0.00% | 0.00% | 0.00% | ||
Vesting period | 3 years | 3 years | 3 years | ||
Aggregate intrinsic value of the option shares outstanding | $ 10,000,000 | ||||
Aggregate intrinsic value of the option shares exercisable | $ 6,100,000 | ||||
Remaining contractual life of options outstanding | 4 years | ||||
Remaining contractual life of options exercisable | 2 years 9 months 19 days | ||||
Total pre-tax intrinsic value of options exercised | $ 100,000 | $ 5,100,000 | |||
Stock compensation expenses recognized | $ 3,472,000 | 3,844,000 | $ 2,381,000 | ||
Fiscal 2013 (2013 - 2015) [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Performance period start year | 2,013 | ||||
Performance period end year | 2,015 | ||||
Fiscal 2014 (2014 - 2016) [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Performance period start year | 2,014 | ||||
Performance period end year | 2,016 | ||||
Fiscal 2015 (2015 - 2017) [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Performance period start year | 2,015 | ||||
Performance period end year | 2,017 | ||||
Fiscal 2015 (2015 - 2017) [Member] | Scenario Forecast [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Maximum estimated shares earned | 51,483 | ||||
Fiscal 2016 (2016 - 2018) [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Performance period start year | 2,016 | ||||
Performance period end year | 2,018 | ||||
Maximum estimated shares earned | 57,979 | ||||
Fiscal 2017 (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] | |||||
Maximum estimated shares earned | 63,561 | ||||
Nonqualified Stock Options [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Stock compensation expenses recognized | $ 1,300,000 | 1,200,000 | 1,200,000 | ||
Nonqualified Stock Options [Member] | Employee [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Vesting period | 4 years | ||||
Nonqualified Stock Options [Member] | Minimum [Member] | Board of Director [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Stock option expiration term upon expiration of employment or service | 7 years | ||||
Nonqualified Stock Options [Member] | Maximum [Member] | Board of Director [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Stock option expiration term upon expiration of employment or service | 10 years | ||||
Restricted Stock Awards [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Vesting period | 3 years | ||||
Restricted stock expense | $ 500,000 | $ 300,000 | $ 300,000 | ||
Number of stock units awarded | 51,559 | 20,108 | 18,073 | ||
Number of stock units forfeited | 2,278 | 2,439 | 1,316 | ||
Number of stock units outstanding | 67,917 | 33,133 | 27,775 | 18,624 | |
Performance Shares [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Stock compensation expenses recognized | $ 1,200,000 | $ 1,900,000 | $ 500,000 | ||
Performance Shares [Member] | Fiscal 2015 (2015 - 2017) [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Fair value of performance shares for grants awarded | 900,000 | ||||
Performance Shares [Member] | 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] | Fiscal 2017 (2016 - 2018) [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Fair value of performance shares for grants awarded | 1,200,000 | ||||
1999 Employee Stock Purchase Plan [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Annual compensation withheld, maximum limit | $ 25,000 | ||||
1999 Employee Stock Purchase Plan [Member] | Maximum [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Common stock authorized, shares | 600,000 | ||||
Stock compensation expenses recognized | $ 100,000 | 100,000 | 100,000 | ||
Annual compensation withheld | 10.00% | ||||
Employee contributions | $ 100,000 | 100,000 | |||
Vesting Anniversary [Member] | Nonqualified Stock Options [Member] | Employee [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Vesting percentage | 25.00% | ||||
Vesting Anniversary [Member] | Restricted Stock Awards [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Vesting percentage | 33.00% | ||||
Performance Level [Member] | Minimum [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Vesting percentage | 20.00% | ||||
Performance Level [Member] | Maximum [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Performance share awards, estimated vesting percentage | 200.00% | ||||
2009 Equity Incentive Plan [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Common stock authorized, shares | 2,000,000 | ||||
Number of shares available for future awards | 888,546 | ||||
2009 Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Stock compensation expenses recognized | $ 300,000 | $ 200,000 | 400,000 | ||
Number of stock units awarded | 16,004 | 18,877 | |||
Number of stock units forfeited | 495 | 1,609 | |||
Number of stock units outstanding | 44,391 | 32,101 | |||
2009 Equity Incentive Plan [Member] | Deferred Stock Units [Member] | Director [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Stock compensation expenses recognized | $ 100,000 | $ 200,000 | $ 100,000 | ||
Number of stock units outstanding | 24,441 | 21,077 | |||
Number of stock units outstanding estimated fair value | $ 800,000 |
Stock-Based Compensation Plan53
Stock-Based Compensation Plans - Assumptions Used in Stock Option Plans (Detail) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Risk-free interest rates | 1.74% | 1.89% | 1.43% |
Expected life | 4 years 7 months 7 days | 4 years 7 months 7 days | 4 years 6 months |
Expected volatility | 34.00% | 37.00% | 43.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Stock-Based Compensation Plan54
Stock-Based Compensation Plans - Schedule of Stock Option Activity (Detail) - $ / shares | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Number of Shares Outstanding, Beginning balance | 827,325 | 1,118,008 | 1,210,619 |
Number of Shares, Granted | 229,039 | 241,582 | 164,401 |
Number of Shares, Exercised | (6,819) | (437,850) | (166,422) |
Number of Shares, Forfeited and expired | (47,640) | (94,415) | (90,590) |
Number of Shares Outstanding, Ending balance | 1,001,905 | 827,325 | 1,118,008 |
Number of Shares, Exercisable | 547,051 | ||
Weighted Average Exercise Price, Beginning Balance | $ 21.30 | $ 20.10 | $ 20.35 |
Weighted Average Exercise Price, Granted | 24.08 | 20.63 | 21.24 |
Weighted Average Exercise Price, Exercised | 13.89 | 15.68 | 14.54 |
Weighted Average Exercise Price, Forfeited and expired | 30.65 | 31.52 | 35.35 |
Weighted Average Exercise Price, Ending balance | 21.54 | $ 21.30 | $ 20.10 |
Weighted Average Exercise Price, Exercisable | $ 20.80 |
Stock-Based Compensation Plan55
Stock-Based Compensation Plans - Schedule of Restricted Stock Awards Activity (Detail) - Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Shares, Beginning balance | 33,133 | 27,775 | 18,624 |
Number of Shares, Granted | 51,559 | 20,108 | 18,073 |
Number of Shares, Vested | (14,497) | (12,311) | (7,606) |
Number of Shares, Forfeited | (2,278) | (2,439) | (1,316) |
Number of Shares, Ending balance | 67,917 | 33,133 | 27,775 |
Weighted Average Grant Price, Beginning balance | $ 20.96 | $ 22.12 | $ 22.45 |
Weighted Average Grant Price, Granted | 25.12 | 20.14 | 21.84 |
Weighted Average Grant Price, Vested | 21.10 | 22.19 | 22.28 |
Weighted Average Grant Price, Forfeited | 25.12 | 21.17 | 22.16 |
Weighted Average Grant Price, Ending balance | $ 23.98 | $ 20.96 | $ 22.12 |
Stock-Based Compensation Plan56
Stock-Based Compensation Plans - Schedule of Fair Value at the Date of Grant (Detail) | 12 Months Ended |
Sep. 30, 2017shares | |
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] | 12 Months Ended |
Sep. 30, 2017USD ($) | |
Line Of Credit Facility [Line Items] | |
Revolving credit facility amount | $ 30,000,000 |
Credit facility fee percentage | 0.15% |
Line of credit facility expiration date | Nov. 1, 2019 |
Borrowings 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 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Taxes from Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Current provision: | |||
U.S. Federal | $ 2,125 | $ 6,550 | $ 6,065 |
U.S. State | (72) | 250 | 106 |
International | 54 | (98) | 30 |
Total current provision | 2,107 | 6,702 | 6,201 |
Deferred provision (benefit): | |||
U.S. Federal | 1,085 | 169 | 58 |
U.S. State | (85) | (43) | 35 |
International | 135 | ||
Total deferred provision (benefit) | 1,000 | 261 | 93 |
Income tax provision | $ 3,107 | $ 6,963 | $ 6,294 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Line Items] | |||
U.S. federal statutory tax rate | 35.00% | 35.00% | 35.00% |
Increase (Decrease) in deferred tax assets | $ 665,000 | $ (2,500,000) | $ 348,000 |
Excess tax benefits (shortfalls) related to stock based compensation expense | (200,000) | 600,000 | |
Excess tax benefit from stock-based compensation plans | 432,000 | ||
Deferred tax asset valuation allowance | $ 4,511,000 | 3,847,000 | |
Net operating loss carryforwards, remaining period | 10 years | ||
Unrecognized tax benefits excluding interest and penalties that would impact effective tax rate | $ 1,200,000 | 1,200,000 | 900,000 |
Liability for unrecognized tax benefits to change significantly in the next 12 months | 500,000 | 600,000 | $ 600,000 |
Undistributed earnings in foreign subsidiaries | 0 | 0 | |
State [Member] | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carryforwards | $ 200,000 | ||
Net operating loss carryforwards, begening of expiration year | 2,022 | ||
Ireland and Luxembourg [Member] | Creagh Medical Ltd [Member] | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carryforwards | $ 3,000,000 | ||
R&D Credit Carryforwards [Member] | Federal and Minnesota [Member] | |||
Income Tax Disclosure [Line Items] | |||
Tax credit carryforwards | $ 300,000 | ||
Tax credit carryforward, begening of expiration year | 2,029 | ||
In Vitro Diagnostics [Member] | |||
Income Tax Disclosure [Line Items] | |||
Capital losses generated | 7,500,000 | ||
Increase (Decrease) in deferred tax assets | $ (2,600,000) |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation Difference of Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Amount at statutory U.S. federal income tax rate | $ 2,461 | $ 5,932 | $ 6,385 |
Change because of the following items: | |||
State income taxes, net of federal benefit | (13) | 142 | 67 |
Stock-based compensation | 330 | (607) | 16 |
Valuation allowance change | 665 | (2,500) | 348 |
Tax reserve change | (52) | 258 | 34 |
Federal manufacturing deduction | (313) | (280) | (268) |
U.S. Federal and foreign research and development credits | (706) | (571) | (74) |
Gain on strategic investment and corporate subsidiary | 2,630 | ||
Foreign rate differential | 948 | 622 | |
Acquisition-related transaction costs | 768 | ||
Contingent consideration (gain) expense | (45) | 522 | |
Unrealized foreign currency exchange loss on contingent consideration obligation | 170 | ||
Other | (338) | 47 | (214) |
Income tax provision | $ 3,107 | $ 6,963 | $ 6,294 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Income Tax Disclosure [Abstract] | ||
Depreciable assets | $ (3,335) | $ (2,257) |
Accruals and reserves | 1,123 | 1,153 |
Stock-based compensation | 3,370 | 3,113 |
Impaired strategic investments | 2,701 | 2,701 |
NOL carryforwards | 3,627 | 3,324 |
U.S. Federal and state R&D credits | 242 | 110 |
Other | 810 | 730 |
Valuation allowance | (4,511) | (3,847) |
Total deferred tax assets | $ 4,027 | $ 5,027 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Beginning of fiscal year | $ 1,508 | $ 1,248 | $ 1,216 |
Increases in tax positions for prior years | 8 | 77 | 50 |
Decreases in tax positions for prior years | (35) | (21) | (10) |
Increases in tax positions for current year | 216 | 365 | 146 |
Lapse of the statute of limitations | (216) | (161) | (154) |
End of fiscal year | $ 1,481 | $ 1,508 | $ 1,248 |
Defined Contribution Plan - Add
Defined Contribution Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Contribution expense | $ 0.7 | $ 0.3 | $ 0.3 |
U.S. [Member] | 401 (K) Retirement and Savings Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of employee contributions | 50.00% | ||
Percentage of employee eligible compensation | 6.00% | ||
Ireland [Member] | Defined Contribution PRSA Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of employee contributions | 8.00% | ||
Percentage of employee eligible compensation | 6.00% |
Amounts Reclassified Out of A64
Amounts Reclassified Out of Accumulated Other Comprehensive Income - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Amounts reclassified out of AOCI | $ 0 | $ 0 | |
Maximum [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Amounts reclassified out of AOCI pre-tax basis | $ 300,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Nov. 30, 2017USD ($)ft² | Sep. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Sep. 30, 2017USD ($)€ / $shares | Sep. 30, 2017EUR (€)shares | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 29, 2015USD ($) | |
Commitments And Contingencies [Line Items] | |||||||||
Agreed to pay the customer and settlement of claim | $ 2,500,000 | ||||||||
Undisputed royalties earned | $ 500,000 | ||||||||
Revenue recognized by company | $ 500,000 | ||||||||
Pre tax compensation expense | $ 2,500,000 | ||||||||
Additional shares of common stock to stockholders | shares | 480,059 | 480,059 | |||||||
License agreement commencement date | 2006-03 | 2006-03 | |||||||
Annual minimum payments for licenses | $ 236,000 | € 200,000 | |||||||
Exchange rate relating to license payment | € / $ | 1.1801 | ||||||||
Future minimum payments associated with license | $ 2,400,000 | ||||||||
Rent expense related to operating leases | 100,000 | $ 100,000 | $ 100,000 | ||||||
CRO [Member] | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Contractual obligations | 26,000,000 | ||||||||
Contractual obligation to be paid | 23,200,000 | ||||||||
CRO [Member] | Minimum [Member] | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Contractual obligation due in next several years | 32,000,000 | ||||||||
CRO [Member] | Maximum [Member] | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Contractual obligation due in next several years | $ 40,000,000 | ||||||||
Subsequent Event [Member] | Eden Prairie Minnesota [Member] | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Square feet of office and R&D facility | ft² | 36,000 | ||||||||
Contractual obligations | $ 4,000,000 | ||||||||
Operating lease agreement term | 10 years | ||||||||
Operating lease agreement expected commencement date | 2018-05 | ||||||||
Patents [Member] | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Patent expiry date | 2027-09 | 2027-09 | |||||||
January 2009 through September 2014 [Member] | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Royalties overpaid | $ 5,700,000 | $ 5,700,000 |
Commitments and Contingencies66
Commitments and Contingencies - Summary of Annual Commitments Pursuant to Operating Lease Agreements (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,018 | $ 114 |
2,019 | 73 |
2,020 | 74 |
2,021 | 12 |
Total minimum lease payments | $ 273 |
Reportable Segment Informatio67
Reportable Segment Information - Additional Information (Detail) | 12 Months Ended |
Sep. 30, 2017SegmentSource | |
Segment Reporting [Abstract] | |
Number of operating segments | Segment | 2 |
Number of primary sources of revenue | Source | 2 |
Reportable Segment Informatio68
Reportable Segment Information - Segment Revenue, Operating Income and Depreciation and Amortization (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 20,058 | $ 17,790 | $ 17,503 | $ 17,761 | $ 18,154 | $ 19,972 | $ 16,699 | $ 16,541 | $ 73,112 | $ 71,366 | $ 61,898 |
Operating income (loss) | $ 415 | $ 1,743 | $ 1,677 | $ 3,268 | $ 4,083 | $ 6,597 | $ 2,240 | $ 3,939 | 7,103 | 16,859 | 19,089 |
Depreciation and amortization | 5,555 | 4,873 | 2,805 | ||||||||
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income (loss) | 15,195 | 24,090 | 25,676 | ||||||||
Operating Segments [Member] | Medical Device [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 53,983 | 53,202 | 45,944 | ||||||||
Operating income (loss) | 6,902 | 16,975 | 21,192 | ||||||||
Depreciation and amortization | 4,453 | 3,261 | 1,138 | ||||||||
Operating Segments [Member] | In Vitro Diagnostics [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 19,129 | 18,164 | 15,954 | ||||||||
Operating income (loss) | 8,293 | 7,115 | 4,484 | ||||||||
Depreciation and amortization | 412 | 789 | 873 | ||||||||
Corporate [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income (loss) | (8,092) | (7,231) | (6,587) | ||||||||
Depreciation and amortization | $ 690 | $ 823 | $ 794 |
Reportable Segment Informatio69
Reportable Segment Information - Revenue from Major Customers (Detail) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenue [Member] | Customer Concentration Risk [Member] | Medtronic [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue | 18.00% | 25.00% | 26.00% |
Reportable Segment Informatio70
Reportable Segment Information - Geographic Revenue and Long-lived Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
U.S. [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets, including property and equipment and intangible assets net of accumulated depreciation and amortization | $ 20,949 | $ 21,543 | |
Ireland [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets, including property and equipment and intangible assets net of accumulated depreciation and amortization | $ 22,555 | $ 20,583 | |
Revenue [Member] | Geographic Concentration Risk [Member] | Domestic [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of revenue | 77.00% | 79.00% | 77.00% |
Revenue [Member] | Geographic Concentration Risk [Member] | Foreign [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of revenue | 23.00% | 21.00% | 23.00% |
Quarterly Financial Data (Una71
Quarterly Financial Data (Unaudited) - Summary of Unaudited Quarterly Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 20,058 | $ 17,790 | $ 17,503 | $ 17,761 | $ 18,154 | $ 19,972 | $ 16,699 | $ 16,541 | $ 73,112 | $ 71,366 | $ 61,898 |
Operating income | 415 | 1,743 | 1,677 | 3,268 | 4,083 | 6,597 | 2,240 | 3,939 | 7,103 | 16,859 | 19,089 |
Net income | $ 400 | $ 720 | $ 506 | $ 2,300 | $ 2,577 | $ 3,934 | $ 821 | $ 2,653 | $ 3,926 | $ 9,985 | $ 11,947 |
Basic net income per share | $ 0.03 | $ 0.05 | $ 0.04 | $ 0.17 | $ 0.20 | $ 0.31 | $ 0.06 | $ 0.20 | $ 0.30 | $ 0.77 | $ 0.92 |
Diluted net income per share | $ 0.03 | $ 0.05 | $ 0.04 | $ 0.17 | $ 0.20 | $ 0.30 | $ 0.06 | $ 0.20 | $ 0.29 | $ 0.76 | $ 0.90 |
Quarterly Financial Data (Una72
Quarterly Financial Data (Unaudited) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Quarterly Financial Data [Line Items] | ||||||||
Royalty and license fee | $ 31,787 | $ 33,203 | $ 31,763 | |||||
Acquisition related costs including due diligence and integration expenses | 3,187 | |||||||
Royalty catch-up payment | $ 2,900 | |||||||
Income tax provision | $ 3,107 | $ 6,963 | $ 6,294 | |||||
ASU No. 2016-09 [Member] | ||||||||
Quarterly Financial Data [Line Items] | ||||||||
Income tax provision | $ 500 | |||||||
Out of Period Royalty Adjustment [Member] | ||||||||
Quarterly Financial Data [Line Items] | ||||||||
Royalty and license fee | $ 1,100 | |||||||
Previously Reported [Member] | ||||||||
Quarterly Financial Data [Line Items] | ||||||||
Royalty and license fee | $ 1,000 | |||||||
Creagh Medical and NorMedix [Member] | ||||||||
Quarterly Financial Data [Line Items] | ||||||||
Acquisition related costs including due diligence and integration expenses | $ 2,500 | |||||||
Intellectual Property [Member] | ||||||||
Quarterly Financial Data [Line Items] | ||||||||
Royalty and license fee | $ 1,100 |