Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2017 | Feb. 05, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SRDX | |
Entity Registrant Name | SURMODICS INC | |
Entity Central Index Key | 924,717 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 13,196,616 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 21,596 | $ 16,534 |
Restricted cash | 350 | |
Available-for-sale securities | 24,756 | 31,802 |
Accounts receivable, net of allowance for doubtful accounts of $204 and $230 as of December 31, 2017 and September 30, 2017, respectively | 6,695 | 7,211 |
Inventories | 3,871 | 3,516 |
Income tax receivable | 240 | 599 |
Prepaids and other | 2,488 | 1,221 |
Total Current Assets | 59,996 | 60,883 |
Property and equipment, net | 23,624 | 22,942 |
Deferred tax assets | 2,313 | 4,027 |
Intangible assets, net | 20,076 | 20,562 |
Goodwill | 27,505 | 27,282 |
Other assets | 1,039 | 897 |
Total Assets | 134,553 | 136,593 |
Current Liabilities: | ||
Accounts payable | 2,309 | 2,396 |
Accrued liabilities: | ||
Compensation | 1,683 | 3,822 |
Accrued other | 1,790 | 1,835 |
Contingent consideration, current portion | 13,752 | 1,750 |
Total Current Liabilities | 19,534 | 9,803 |
Contingent consideration, less current portion | 2,410 | 13,114 |
Other long-term liabilities | 2,062 | 2,119 |
Total Liabilities | 24,006 | 25,036 |
Commitments and Contingencies (Note 14) | ||
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; 13,195,616 and 13,094,988 shares issued and outstanding as of December 31, 2017 and September 30, 2017, respectively | 660 | 655 |
Additional paid-in capital | 5,337 | 5,413 |
Accumulated other comprehensive income | 4,034 | 3,417 |
Retained earnings | 100,516 | 102,072 |
Total Stockholders’ Equity | 110,547 | 111,557 |
Total Liabilities and Stockholders’ Equity | $ 134,553 | $ 136,593 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 204 | $ 230 |
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 | 13,195,616 | 13,094,988 |
Common stock, shares outstanding | 13,195,616 | 13,094,988 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue: | ||
Product sales | $ 8,088 | $ 7,701 |
Royalties and license fees | 7,076 | 8,001 |
Research, development and other | 1,849 | 2,059 |
Total revenue | 17,013 | 17,761 |
Operating costs and expenses: | ||
Product costs | 2,891 | 2,628 |
Research and development | 7,831 | 5,970 |
Selling, general and administrative | 5,188 | 4,862 |
Acquired intangible asset amortization | 618 | 596 |
Contingent consideration expense | 1,118 | 437 |
Total operating costs and expenses | 17,646 | 14,493 |
Operating (loss) income | (633) | 3,268 |
Other income: | ||
Investment income, net | 121 | 85 |
Foreign exchange (loss) gain | (186) | 674 |
Gain on strategic investment | 177 | |
Other income, net | 112 | 759 |
(Loss) income before income taxes | (521) | 4,027 |
Income tax provision | (1,035) | (1,727) |
Net (loss) income | $ (1,556) | $ 2,300 |
Basic net (loss) income per share | $ (0.12) | $ 0.17 |
Diluted net (loss) income per share | $ (0.12) | $ 0.17 |
Weighted average number of shares outstanding: | ||
Basic | 13,064 | 13,200 |
Diluted | 13,064 | 13,446 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net (loss) income | $ (1,556) | $ 2,300 |
Other comprehensive income (loss) : | ||
Unrealized holding (losses) gains on available-for-sale securities, net of tax | (14) | 46 |
Foreign currency translation adjustments | 631 | (2,254) |
Other comprehensive income (loss) | 617 | (2,208) |
Comprehensive (loss) income | $ (939) | $ 92 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Activities: | ||
Net (loss) income | $ (1,556) | $ 2,300 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,520 | 1,282 |
Stock-based compensation | 903 | 789 |
Contingent consideration expense | 1,118 | 437 |
Unrealized foreign exchange loss (income) | 180 | (663) |
Deferred taxes | 1,714 | 742 |
Gain on strategic investment | (177) | |
Provision for bad debts | 28 | |
Other | (7) | (5) |
Change in operating assets and liabilities: | ||
Accounts receivable | 484 | 345 |
Inventories | (345) | 73 |
Prepaids and other | (1,188) | (746) |
Accounts payable and accrued liabilities | (2,295) | (2,713) |
Income taxes | 190 | 82 |
Deferred revenue | 45 | 28 |
Net cash provided by operating activities | 614 | 1,951 |
Investing Activities: | ||
Purchases of property and equipment | (1,298) | (1,545) |
Purchases of available-for-sale securities | (11,364) | (12,541) |
Maturities of available-for-sale securities | 18,400 | 7,071 |
Net cash provided by (used in) investing activities | 5,738 | (7,015) |
Financing Activities: | ||
Issuance of common stock | 155 | 13 |
Payments for taxes related to net share settlement of equity awards | (1,130) | (2,129) |
Payment of deferred financing costs | (38) | |
Net cash used in financing activities | (975) | (2,154) |
Effect of exchange rate changes on cash and cash equivalents | 35 | (116) |
Net change in cash and cash equivalents | 5,412 | (7,334) |
Cash and Cash Equivalents: | ||
Beginning of period | 16,534 | 24,987 |
End of period | 21,946 | 17,653 |
Supplemental Information: | ||
Cash paid for income taxes | 12 | 897 |
Noncash transactions from investing and financing activities: | ||
Acquisition of property and equipment on account | 187 | 227 |
Strategic investment gain receivable included in other current assets | $ 177 | |
Deferred financing costs in accounts payable | $ 45 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.”) (“GAAP”) and, in the opinion of management, reflect all adjustments, consisting of normal recurring adjustments, needed to fairly present the financial results of Surmodics, Inc. and subsidiaries (“Surmodics” or the “Company”) for the periods presented. These financial statements include some amounts that are based on management’s best estimates and judgments. These estimates may be adjusted as more information becomes available, and any adjustment could be significant. The impact of any change in estimates is included in the determination of net (loss) income in the period in which the change in estimate is identified. The results of operations for the three months ended December 31, 2017 are not necessarily indicative of the results that may be expected for the entire 2018 fiscal year. In accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”), the Company has omitted footnote disclosures that would substantially duplicate the disclosures contained in the audited consolidated financial statements of the Company. These unaudited condensed consolidated financial statements should be read together with the audited consolidated financial statements for the fiscal year ended September 30, 2017, and footnotes thereto included in the Company’s Form 10-K as filed with the SEC on December 1, 2017. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | 2. New Accounting Pronouncements Accounting Standards to be Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) Update No. 2014-09, Revenue from Contracts with Customers (ASC Topic 606) In February 2016, the FASB issued Accounting Standards Update ASU 2016-02, Leases (ASC Topic 842) In June 2016, the FASB issued ASU No 2016-13, Financial Instruments – Credit Losses (ASC Topic 326), Measurement of Credit Losses on Financial Statements No other new accounting pronouncement issued or effective has had, or is expected to have, a material impact on the Company’s condensed consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements The accounting guidance on fair value measurements defines fair value, establishes a framework for measuring fair value under GAAP, and expands disclosures about fair value measurements. The guidance is applicable for all financial assets and financial liabilities and for all nonfinancial assets and nonfinancial liabilities recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). Fair value is defined as the exchange price that would be received from selling an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and also considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of nonperformance. Fair Value Hierarchy Accounting guidance on fair value measurements requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: Level 1 — Quoted (unadjusted) prices in active markets for identical assets or liabilities. The Company did not have any Level 1 assets as of December 31, 2017 and September 30, 2017. Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. The Company’s Level 2 assets as of December 31, 2017 and September 30, 2017 consisted of money market funds, commercial paper instruments and corporate bonds. Level 3 — Unobservable inputs to the valuation methodology that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation. Level 3 liabilities as of December 31, 2017 and September 30, 2017 consist of contingent consideration obligations related to the fiscal 2016 acquisitions of Creagh Medical Ltd. (“Creagh Medical”) and NorMedix, Inc. (“NorMedix”). Consideration owed to the sellers of Creagh Medical upon achievement of revenue and value-creating milestones through September 30, 2018, is due to be paid during the quarter ending December 31, 2018. Consideration owed to the sellers of NorMedix upon achievement of revenue and value-creating milestones through September 30, 2019, is due to be paid within sixty days following the quarter in which each milestone is achieved. Contingent consideration included in current liabilities of $13.8 million and $1.8 million as of December 31, 2017 and September 30, 2017, respectively, represents the Company’s estimate of fair value of amounts expected to be paid within one year of each respective balance sheet date. In valuing assets and liabilities, the Company is required to maximize the use of quoted market prices and minimize the use of unobservable inputs. Assets and Liabilities Measured at Fair Value on a Recurring Basis In instances where the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2017: (Dollars in thousands) Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value as of December 31, 2017 Assets Cash equivalents $ — $ 13,799 $ — $ 13,799 Available-for-sale securities — 24,756 — 24,756 Total assets $ — $ 38,555 $ — $ 38,555 Liabilities Contingent consideration $ — $ — $ (16,162 ) $ (16,162 ) Total liabilities $ — $ — $ (16,162 ) $ (16,162 ) 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: (Dollars in thousands) Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value as of September 30, 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 summarizes the changes in the contingent consideration liabilities measured at fair value using Level 3 inputs for the three months ended December 31, 2017 and 2016: Three Months Ended December 31, (Dollars in thousands) 2017 2016 Beginning balance $ 14,864 $ 14,517 Additions — — Fair value adjustments 1,019 — Settlements — — Interest accretion 99 437 Foreign currency translation loss (gain) 180 (663 ) Ending balance $ 16,162 $ 14,291 There were no transfers of assets or liabilities between amounts measured using Level 1, Level 2, or Level 3 fair value measurements during fiscal 2018 to date or fiscal 2017. Valuation Techniques The valuation techniques used to measure the fair value of assets are as follows: Cash equivalents — These assets are classified as Level 2 and are carried at historical cost which is a reasonable estimate of fair value because of the relatively short time between origination of the instrument and its expected realization. Available-for-sale securities — Fair market values for these assets are based on quoted vendor prices and broker pricing in active markets underlying the securities where all significant inputs are observable. To ensure the accuracy of quoted vendor prices and broker pricing, the Company performs regular reviews of investment returns to industry benchmarks and sample tests of individual securities to validate quoted vendor prices with other available market data. Contingent consideration — The contingent consideration liabilities were determined based on discounted cash flow analyses that included revenue estimates, probability of strategic milestone achievement and a discount rate, which are considered significant unobservable inputs. For the NorMedix revenue-based milestones, the Company discounted forecasted revenue by 23.5%, which represents the Company’s weighted average cost of capital for this transaction, adjusted for the short-term nature of the cash flows. The present value of forecasted revenue was used as an input into an option pricing approach, which also considered the Company’s risk of non-payment of the NorMedix revenue-based milestones. Expected payments of the Creagh Medical revenue milestones were discounted using the Company’s estimated cost of debt at December 31, 2017. Non-revenue milestones for the Creagh Medical and NorMedix acquisitions that have not already been achieved were projected to have a 25-98% probability of achievement and expected payments were discounted using the Company’s estimated cost of debt, or 2.7% to 3.0%. To the extent that actual results differ from these estimates, the fair value of the contingent consideration liabilities could change significantly. Accretion expense is recorded as an increase to the contingent consideration liabilities due to the passage of time. Fair value adjustments represent changes in the value of the obligations related to adjustments to forecasted revenue and probability of strategic milestone completion. The contingent consideration liability related to the Creagh Medical acquisition is denominated in Euros and is not hedged. Foreign currency translation and losses are recorded as this obligation is marked to period-end exchange rates. |
Investments
Investments | 3 Months Ended |
Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | 4. Investments Investments consisted principally of commercial paper and corporate bond securities and are classified as available-for-sale as of December 31, 2017 and September 30, 2017. Available-for-sale securities are reported at fair value with unrealized gains and losses, net of tax, excluded from the condensed condensed condensed The amortized cost, unrealized holding gains and losses, and fair value of available-for-sale securities were as follows: December 31, 2017 (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper and corporate bonds $ 24,782 $ — $ (26 ) $ 24,756 Total $ 24,782 $ — $ (26 ) $ 24,756 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 |
Inventories
Inventories | 3 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | 5. Inventories Inventories are principally stated at the lower of cost or market using the specific identification method and include direct labor, materials and overhead, with cost of product sales determined on a first-in, first-out basis. Inventories consisted of the following components: December 31, September 30, (Dollars in thousands) 2017 2017 Raw materials $ 2,123 $ 1,603 Work-in process 669 659 Finished products 1,079 1,254 Total $ 3,871 $ 3,516 |
Other Assets
Other Assets | 3 Months Ended |
Dec. 31, 2017 | |
Investments All Other Investments [Abstract] | |
Other Assets | 6. Other Assets Other assets consist of the following: December 31, September 30, (Dollars in thousands) 2017 2017 ViaCyte, Inc. $ 479 $ 479 Other noncurrent assets 560 418 Other assets, net $ 1,039 $ 897 The Company has invested a total of $5.3 million in ViaCyte, Inc. (“ViaCyte”), a privately-held California-based biotechnology firm that is developing a unique treatment for diabetes using coated islet cells, the cells that produce insulin in the human body. The balance of the investment of $0.5 million, which is net of previously recorded other-than-temporary impairments of $4.8 million, is accounted for under the cost method and represents less than a 1% ownership interest. The Company does not exert significant influence over ViaCyte’s operating or financial activities. The carrying value of each cost method investment is reviewed quarterly for changes in circumstances or the occurrence of events that suggest the Company’s investment may not be recoverable. The fair value of cost method investments is not adjusted if there are no identified events or changes in circumstances that may have a material effect on the fair value of the investment. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 7. Intangible Assets Intangible assets consist principally of acquired patents and technology, customer lists and relationships, licenses and trademarks. The Company recorded amortization expense of $0.7 million and $0.6 million for the three-month periods ended December 31, 2017 and 2016, respectively. Intangible assets consisted of the following: December 31, 2017 (Dollars in thousands) Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 8.9 $ 18,478 $ (8,279 ) $ 10,199 Developed technology 11.7 9,334 (1,702 ) 7,632 Non-compete 5.0 230 (115 ) 115 Patents and other 16.5 2,321 (1,459 ) 862 Subtotal 30,363 (11,555 ) 18,808 Unamortized intangible assets: In-process research and development 688 — 688 Trademarks and trade names 580 — 580 Total $ 31,631 $ (11,555 ) $ 20,076 September 30, 2017 (Dollars in thousands) 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 Based on the intangible assets in service as of December 31, 2017, excluding any possible future amortization associated with acquired in-process research and development (“IPR&D”), which has not met technological feasibility as of December 31, 2017, estimated amortization expense for the remainder of fiscal 2018 and each of the next five fiscal years is as follows (in thousands) Remainder of 2018 $ 2,015 2019 2,686 2020 2,511 2021 2,372 2022 2,332 2023 1,715 Future amortization amounts presented above are estimates. Actual future amortization expense may be different as a result of future acquisitions, impairments, completion or abandonment of IPR&D intangible assets, changes in amortization periods, or other factors. The Company defines IPR&D as the value of technology acquired for which the related projects have substance and are incomplete. IPR&D acquired in a business acquisition is recognized at fair value and requires the IPR&D to be capitalized as an indefinite-lived intangible asset until completion of the IPR&D project or abandonment. Upon completion of the development project (generally when regulatory approval to market the product is obtained), an impairment assessment is performed prior to amortizing the asset over its estimated useful life. If the IPR&D projects are abandoned, the related IPR&D assets would be written off. |
Goodwill
Goodwill | 3 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 8. Goodwill Goodwill represents the excess of the cost of an acquired entity over the fair value assigned to the assets purchased and liabilities assumed in connection with a business acquisition. Goodwill is not amortized but is subject, at a minimum, to annual tests for impairment in accordance with accounting guidance for goodwill. The carrying amount of goodwill is evaluated annually, and between annual evaluations if events occur or circumstances change indicating that the carrying amount of goodwill may be impaired. Goodwill as of December 31, 2017 and September 30, 2017 totaled $27.5 million and $27.3 million, respectively. Goodwill in the Medical Device reporting unit represents the gross value from the fiscal 2016 acquisitions of Creagh Medical and NorMedix. Goodwill in the In Vitro Diagnostics reporting unit represents the gross value from the acquisition of BioFX Laboratories, Inc. (“BioFX”) in fiscal 2007. Goodwill was not impaired in either reporting unit based on the outcome of the fiscal 2017 annual impairment test, and there have been no events or circumstances that have occurred in the first three months of fiscal 2018 to indicate that goodwill has been impaired. The change in the carrying amount of goodwill by segment for the three months ended December 31, 2017 was as follows: (Dollars in thousands) In Vitro Diagnostics Medical Device Total Balance as of September 30, 2017 $ 8,010 $ 19,272 $ 27,282 Currency translation adjustment — 223 223 Balance as of December 31, 2017 $ 8,010 $ 19,495 $ 27,505 |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 9. Stock-based Compensation The Company has stock-based compensation plans under which it grants stock options, restricted stock awards, performance share awards, restricted stock units and deferred stock units. Accounting guidance requires all share-based payments to be recognized as an operating expense, based on their fair values, over the requisite service period. The Company’s stock-based compensation expenses (benefit) were allocated to the following expense categories: Three Months Ended December 31, (Dollars in thousands) 2017 2016 Product costs $ (6 ) $ 13 Research and development 158 125 Selling, general and administrative 751 651 Total $ 903 $ 789 As of December 31, 2017, approximately $8.0 million of total unrecognized compensation costs related to non-vested awards is expected to be recognized over a weighted average period of approximately 2.7 years. The unrecognized compensation costs above include $1.3 million, remaining to be expensed over the life of the awards, based on payout levels associated with performance share awards that are currently anticipated to be fully expensed because the performance conditions are expected to exceed minimum threshold levels. Stock Option Awards The Company uses the Black-Scholes option pricing model to determine the weighted average grant date fair value of stock options granted. The weighted average per share fair values of stock options granted during the three-month periods ended December 31, 2017 and 2016 were $10.57 and $7.59, respectively. The assumptions used as inputs in the model were as follows: Three Months Ended December 31, 2017 2016 Risk-free interest rates 2.0 % 1.7 % Expected life (years) 4.8 4.6 Expected volatility 33.0 % 34.4 % Dividend yield 0.0 % 0.0 % The risk-free interest rate assumption was based on the U.S. Treasury’s rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award. The expected life of options granted was determined based on the Company’s experience. Expected volatility was based on the Company’s stock price movement over a period approximating the expected term. Based on management’s judgment, dividend yields were expected to be 0.0% for the expected life of the options. The Company also estimated forfeitures of options granted, which were based on historical experience. Non-qualified stock options are granted at fair market value on the date of grant. Non-qualified stock options expire in seven to ten years or upon termination of employment or service as a Board member. With respect to members of our Board, non-qualified stock options generally become exercisable on a pro-rata basis within the one-year period following the date of grant. With respect to our employees, non-qualified stock options generally become exercisable with respect to 25% of the shares on each of the first four anniversaries following the grant date. The stock-based compensation table above includes stock option expenses recognized related to these awards, which totaled $0.4 million and $0.3 million for the three-month periods ended December 31, 2017 and 2016, respectively. The total pre-tax intrinsic value of options exercised during the three months ended December 31, 2017 and 2016 was $0.3 million and less than $0.1 million, respectively. The intrinsic value represents the difference between the Company’s common stock fair market value on the date of exercise and the option’s exercise price. 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 vesting periods range from one to three years. During the three months ended December 31, 2017 and 2016, the Company awarded 57,635 and 39,958 Restricted Stock shares, respectively, to certain key employees and officers. Forfeiture of 2,220 Restricted Stock shares occurred during the three months ended December 31, 2017. As of December 31, 2017 and September 30, 2017, 100,557 and 67,917 Restricted Stock shares were outstanding, respectively. Compensation expense has been recognized for the estimated fair value of the common shares, net of estimated forfeitures, and is being charged to operating expenses over the vesting term. The stock-based compensation expense table includes Restricted Stock expenses recognized related to these awards, which totaled $0.2 million and $0.1 million for the three-month periods ended December 31, 2017 and 2016, respectively. Performance Share Awards The Company has entered into performance share agreements with certain key employees and executives, covering the issuance of common stock (“Performance Shares”). Performance Shares vest upon the achievement of all or a portion of certain performance objectives (which may include financial or project objectives), which must be achieved during the performance period. The Organization and Compensation Committee of the Board of Directors (the “Committee”) approves the performance objectives used for our executive compensation programs, which objectives were cumulative revenue and cumulative earnings before interest, income taxes, depreciation and amortization (“EBITDA”) for the three-year performance periods for awards granted in fiscal 2015 (2015 – 2017), fiscal 2016 (2016 – 2018) and fiscal 2017 (2017 – 2019). The fiscal 2017 awards also include performance objectives related to achievement of the Company’s strategic initiatives. Assuming that the minimum performance level is attained, the number of shares that may actually vest will vary based on performance from 20% (minimum) to 200% (maximum) of the target number of shares. Shares will be issued to participants as soon as practicable following the end of each performance period, subject to Committee approval and verification of results. Awards granted in fiscal 2015 were finalized in the three months ended December 31, 2017 and resulted in the issuance of 51,478 shares (maximum was 84,398 shares) based on the performance objectives relative to actual results achieved during the performance period. The per share compensation cost for each award is fixed on the grant date. Compensation expense is recognized in each period based on management’s estimate of the achievement level of actual and forecasted results, as appropriate, compared with the specified performance objectives and the related impact on the number of Performance Shares expected to vest. The stock-based compensation expense table includes the Performance Shares expenses recognized related to these awards, which totaled $0.2 million for both the three-month periods ended December 31, 2017 and 2016. The fair values of the Performance Shares, at target, were $1.2 million, and $1.3 million for awards granted in fiscal 2017 and 2016, respectively. The aggregate number of shares that could be awarded to our executives if the minimum, target and maximum performance goals are met, based on the fair value at the date of grant is as follows: Performance Period Minimum Shares Target Shares Maximum Shares Fiscal 2016 – 2018 13,268 66,338 132,676 Fiscal 2017 – 2019 10,437 52,185 104,370 Employee Stock Purchase Plan Under the Employee Stock Purchase Plan (“Stock Purchase Plan”), the Company is authorized to issue up to 600,000 shares of common stock. All full-time and part-time U.S. employees can choose to have up to 10% of their annual compensation withheld, with a limit of $25,000, to purchase the Company’s common stock at purchase prices defined within the provisions of the Stock Purchase Plan. As of December 31, 2017 and September 30, 2017, there was less than $0.1 million of employee contributions included in accrued liabilities in the condensed consolidated balance sheets. Stock compensation expense recognized related to the Stock Purchase Plan for the three months ended December 31, 2017 and 2016 totaled less than $0.1 million in each respective period. The stock-based compensation table includes the Stock Purchase Plan expenses. Restricted Stock and Deferred Stock Units During the three months ended December 31, 2017 and 2016, the Company awarded 5,626 and 6,570 restricted stock units (“RSUs”), respectively, to non-employee directors and certain key employees in foreign jurisdictions. As of December 31, 2017 and September 30, 2017, 28,444 and 44,391 RSUs were outstanding. RSU awards are not considered issued or outstanding common stock of the Company until they vest. The estimated fair value of the RSUs was calculated based on the closing market price of Surmodics’ common stock on the grant date. Compensation expense has been recognized for the estimated fair value of the common shares and is being charged to income over the vesting term. The stock-based compensation table includes RSU expenses recognized related to these awards, which totaled less than $0.1 million for both the three-month periods ended December 31, 2017 and 2016. Directors can also elect to receive their annual fees for services to the Board in deferred stock units (“DSUs”). Certain directors elected this option beginning on January 1, 2013 with deferral elections made annually. During the three months ended December 31, 2017 and 2016, 500 and 1,971 units, respectively, were issued with a total fair value of less than $0.1 million in each period. As of December 31, 2017 and September 30, 2017, outstanding DSUs totaled 24,941 and 24,441, respectively. These DSUs are fully vested. Stock-based compensation expense related to DSU awards totaled less than $0.1 million for both the three-month periods ended December 31, 2017 and 2016. |
Revolving Credit Facility
Revolving Credit Facility | 3 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
Revolving Credit Facility | 10. Revolving Credit Facility The Company has a revolving credit facility with available principal totaling $30.0 November 2019. In addition, the agreement has a $5.0 million multi-currency overdraft facility in Ireland. Borrowings under the credit facility, if any, will bear interest at a benchmark rate plus a margin ranging from 1.00% to 1.75% based on the Company’s leverage ratio, as defined in the loan agreement. A facility fee is payable quarterly on unused commitments at a rate of 0.15% per annum. The Company has the option to increase the credit facility in increments of $5.0 million up to an additional $20.0 million, subject to approval of the lender. The Company’s obligations under the credit facility are secured by substantially all of its assets, other than intellectual property and real estate, as well as the majority of its equity interest in its subsidiaries. In connection with the credit facility, the Company is required to maintain certain financial covenants related to a maximum leverage ratio and a minimum EBITDA amount and to comply with nonfinancial covenants. As of December 31, 2017, the Company had no borrowings outstanding on the line of credit and was in compliance with all financial covenants under the credit facility. |
Net (Loss) Income Per Share Dat
Net (Loss) Income Per Share Data | 3 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income Per Share Data | 11. Net (Loss) Income Per Share Data Basic net (loss) income per common share is calculated by dividing net (loss) income by the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common and dilutive common equivalent shares outstanding during the period. The Company’s potentially dilutive common shares are those that result from dilutive common stock options, non-vested stock relating to restricted stock awards, restricted stock units, deferred stock units and performance shares. Options to purchase common stock as well as unvested restricted stock and performance stock units are considered to be potentially dilutive common shares, but have been excluded from the calculation of diluted net loss per share as their effect is anti-dilutive for the three months ended December 31, 2017 as a result of the net loss incurred for that period. Therefore, diluted net loss per share was the same as basic net loss per share for the three months ended December 31, 2017. The calculation of weighted average diluted shares outstanding excludes outstanding stock options associated with the right to purchase 0.3 million shares of common stock for the three months ended December 31, 2016, as their inclusion would have had an antidilutive effect on diluted net income per share. The following table sets forth the denominator for the computation of basic and diluted net income per share (in thousands): Three Months Ended December 31, 2017 2016 Net (loss) income available to common shareholders $ (1,556 ) $ 2,300 Basic weighted average shares outstanding 13,064 13,200 Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units, deferred stock units and performance shares — 246 Diluted weighted average shares outstanding 13,064 13,446 The Company’s Board of Directors has authorized the repurchase of up to $25.3 million of the Company’s outstanding common stock. This authorization does not have an expiration date. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes For interim income tax reporting, the Company estimates its annual effective tax rate and applies it to year-to-date pretax income, excluding unusual or infrequently occurring discrete items. Tax jurisdictions with losses for which tax benefits cannot be realized are excluded. The Company recorded income tax provisions of $1.0 million and $1.7 million for the three months ended December 31, 2017 and 2016, respectively. In December 2017, the Tax Cuts and Jobs Act tax legislation was signed into law, which reduced the U.S. Federal statutory tax rate from 35% to 21%, among other changes. As a result of the enactment of this legislation, the Company’s fiscal 2018 first quarter net loss includes discrete tax expense of $1.2 million from the Company’s net deferred tax assets revaluation based on the enacted tax rate of 21%, as compared with the previous rate of 35%. U.S. tax law requires that taxpayers with a fiscal year beginning before and ending after the effective date of a rate change calculate a blended tax rate for the year based on the pro rata number of days in the year before and after such effective date. As a result, for the fiscal year ending September 30, 2018, our U.S. federal statutory income tax rate is expected to be 24.5%. The effective income tax rate for the three months ended December 31, 2017 and 2016 differs from the U.S. federal statutory tax rate of 24.5% and 35%, respectively, primarily due to operating losses incurred in Ireland, where tax benefits are offset by a valuation allowance, and non-deductible acquired intangible asset amortization, contingent consideration accretion, including fair value adjustments, as well as unrealized foreign currency translation gains and losses on Euro-denominated contingent consideration liabilities. These increases to the effective income tax rate were partially offset by the U.S. federal research and development income tax credit and, in fiscal 2017, the domestic production manufacturing deduction. The effective income tax rate for the three months ended December 31, 2017 and 2016 is also impacted by discrete tax (benefit) expense of $(0.2) million and $0.3 million, respectively, related to expiring stock option awards, and $0.1 million and $0.2 million of state income tax reserve reversals related to the expiration of statutory filing requirements in each respective period. The total amount of unrecognized tax benefits, excluding interest and penalties that, if recognized, would affect the effective tax rate is $1.4 million and $1.2 million as of December 31, 2017 and September 30, 2017, respectively. Currently, the Company does not expect the liability for unrecognized tax benefits to change significantly in the next 12 months with the above balances classified on the condensed consolidated balance sheets in other long-term liabilities. Interest and penalties related to unrecognized tax benefits are recorded in the income tax provision. The Company files income tax returns, including returns for its subsidiaries, in the U.S. federal jurisdiction and in various state jurisdictions as well as several non-U.S. jurisdictions. Uncertain tax positions are related to tax years that remain subject to examination. U.S. income tax returns for years prior to fiscal 2013 are no longer subject to examination by federal tax authorities. For tax returns for state and local jurisdictions, the Company is no longer subject to examination for tax years generally before fiscal 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 their respective acquisition dates, pursuant to the terms of the related share purchase agreements. As of December 31, 2017 and September 30, 2017 there were no undistributed earnings in foreign subsidiaries. The Internal Revenue Service (“IRS”) commenced an examination of our fiscal 2016 U.S. federal income tax return in the fourth quarter of fiscal 2017. The examination has not been completed. |
Segment and Geographical Inform
Segment and Geographical Information | 3 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | 13. Segment and Geographical Information The Company’s management evaluates performance and allocates resources based on reported results for two reportable segments, as follows: (1) the Medical Device unit, which is comprised of manufacturing balloons and catheters used for a variety of interventional cardiology, peripheral and other applications, surface modification coating technologies to improve access, deliverability, and predictable deployment of medical devices, as well as drug delivery coating technologies to provide site-specific drug delivery from the surface of a medical device, with end markets that include coronary, peripheral, and neurovascular, and urology, among others, and (2) the In Vitro Diagnostics unit, which consists of component products and technologies for diagnostic immunoassay as well as molecular tests and biomedical research applications, with products that include protein stabilization reagents, substrates, antigens and surface coatings. The tables below present segment revenue, operating (loss) income and depreciation and amortization, as follows: Three Months Ended December 31, (Dollars in thousands) 2017 2016 Revenue: Medical Device $ 12,774 $ 13,757 In Vitro Diagnostics 4,239 4,004 Total revenue $ 17,013 $ 17,761 Operating (loss) income: Medical Device $ (389 ) $ 3,719 In Vitro Diagnostics 1,670 1,456 Total segment operating income 1,281 5,175 Corporate (1,914 ) (1,907 ) Total operating (loss) income $ (633 ) $ 3,268 Depreciation and amortization: Medical Device $ 1,272 $ 1,004 In Vitro Diagnostics 90 103 Corporate 158 175 Total depreciation and amortization $ 1,520 $ 1,282 The Corporate category includes expenses that are not fully allocated to Medical Device and In Vitro Diagnostics segments. These Corporate costs are related to functions, such as executive management, corporate accounting, legal, human resources and Board of Directors. Corporate may also include expenses, such as litigation, which are not specific to a segment and thus not allocated to the operating segments. Asset information by operating segment is not presented because the Company does not provide its chief operating decision maker assets by operating segment, as the data is not readily available or significant to the decision-making process. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. Commitments and Contingencies Litigation. From time to time, the Company may become involved in various legal actions involving its operations, products and technologies, including intellectual property and employment disputes. The outcomes of these legal actions are not within the Company’s complete control and may not be known for prolonged periods of time. In some actions, the claimants seek damages as well as other relief, including injunctions barring the sale of products that are the subject of the lawsuit, which if granted, could require significant expenditures or result in lost revenue. The Company records a liability in the condensed consolidated financial statements for these actions when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate, the minimum amount of the range is accrued. If a loss is possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. In most cases, significant judgment is required to estimate the amount and timing of a loss to be recorded. On January 17, 2018, we entered into a settlement agreement fully resolving the previously disclosed litigation involving Merit Medical Systems, Inc. (“Merit”) and NorMedix. The Company believes that the settlement will not have a material impact on its business, financial condition or results of operations. InnoCore Technologies BV . In March 2006, the Company entered into a license agreement whereby Surmodics obtained an exclusive license to a drug delivery coating for licensed products within the vascular field which included peripheral, coronary and neurovascular biodurable stent products. The license requires an annual minimum payment of 200,000 euros (equivalent to $240,000 using a euro to US dollar exchange rate of $1.1979 to the Euro as of December 31, 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 by one of the Company’s drug delivery customers. Operating Leases. The Company leases certain facilities under noncancelable operating lease agreements. Rent expense for the three months ended December 31, 2017 and 2016 was $0.1 million for each period. In November 2017, the Company executed a lease for a 36,000 square feet facility in Eden Prairie, Minnesota. This facility will consolidate substantially all of our whole products solutions research and development operations into one location. Contractual obligations under the lease agreement total $4.0 million over the ten-year lease term, which is expected to commence in May 2018. In connection with this lease, the Company deposited $0.4 million into a restricted cash account, to be held until the leased facility is occupied, at which point the cash will be returned to the Company. Annual commitments pursuant to operating lease agreements in place as of December 31, 2017 for the remainder of fiscal 2018 and each of the next five fiscal years is as follows : Remainder of 2018 $ 280 2019 441 2020 450 2021 396 2022 391 2023 399 Thereafter 1,933 Total minimum lease payments $ 4,290 |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
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) In February 2016, the FASB issued Accounting Standards Update ASU 2016-02, Leases (ASC Topic 842) In June 2016, the FASB issued ASU No 2016-13, Financial Instruments – Credit Losses (ASC Topic 326), Measurement of Credit Losses on Financial Statements No other new accounting pronouncement issued or effective has had, or is expected to have, a material impact on the Company’s condensed consolidated financial statements. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 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 December 31, 2017: (Dollars in thousands) Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value as of December 31, 2017 Assets Cash equivalents $ — $ 13,799 $ — $ 13,799 Available-for-sale securities — 24,756 — 24,756 Total assets $ — $ 38,555 $ — $ 38,555 Liabilities Contingent consideration $ — $ — $ (16,162 ) $ (16,162 ) Total liabilities $ — $ — $ (16,162 ) $ (16,162 ) 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: (Dollars in thousands) Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value as of September 30, 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 ) |
Schedule of Contingent Consideration Liabilities Measured at Fair Value | The following table summarizes the changes in the contingent consideration liabilities measured at fair value using Level 3 inputs for the three months ended December 31, 2017 and 2016: Three Months Ended December 31, (Dollars in thousands) 2017 2016 Beginning balance $ 14,864 $ 14,517 Additions — — Fair value adjustments 1,019 — Settlements — — Interest accretion 99 437 Foreign currency translation loss (gain) 180 (663 ) Ending balance $ 16,162 $ 14,291 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Amortized Cost, Unrealized Holding Gains and (Losses) and Fair Value of Available-for-sale Securities | The amortized cost, unrealized holding gains and losses, and fair value of available-for-sale securities were as follows: December 31, 2017 (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper and corporate bonds $ 24,782 $ — $ (26 ) $ 24,756 Total $ 24,782 $ — $ (26 ) $ 24,756 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 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consisted of the following components: December 31, September 30, (Dollars in thousands) 2017 2017 Raw materials $ 2,123 $ 1,603 Work-in process 669 659 Finished products 1,079 1,254 Total $ 3,871 $ 3,516 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Investments All Other Investments [Abstract] | |
Summary of Other Assets | Other assets consist of the following: December 31, September 30, (Dollars in thousands) 2017 2017 ViaCyte, Inc. $ 479 $ 479 Other noncurrent assets 560 418 Other assets, net $ 1,039 $ 897 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of the following: December 31, 2017 (Dollars in thousands) Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 8.9 $ 18,478 $ (8,279 ) $ 10,199 Developed technology 11.7 9,334 (1,702 ) 7,632 Non-compete 5.0 230 (115 ) 115 Patents and other 16.5 2,321 (1,459 ) 862 Subtotal 30,363 (11,555 ) 18,808 Unamortized intangible assets: In-process research and development 688 — 688 Trademarks and trade names 580 — 580 Total $ 31,631 $ (11,555 ) $ 20,076 September 30, 2017 (Dollars in thousands) 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 |
Estimated Amortization Expense | Based on the intangible assets in service as of December 31, 2017, excluding any possible future amortization associated with acquired in-process research and development (“IPR&D”), which has not met technological feasibility as of December 31, 2017, estimated amortization expense for the remainder of fiscal 2018 and each of the next five fiscal years is as follows (in thousands) Remainder of 2018 $ 2,015 2019 2,686 2020 2,511 2021 2,372 2022 2,332 2023 1,715 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule Of Carrying Amount Of Goodwill By Segment | The change in the carrying amount of goodwill by segment for the three months ended December 31, 2017 was as follows: (Dollars in thousands) In Vitro Diagnostics Medical Device Total Balance as of September 30, 2017 $ 8,010 $ 19,272 $ 27,282 Currency translation adjustment — 223 223 Balance as of December 31, 2017 $ 8,010 $ 19,495 $ 27,505 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Expenses (Benefit) | The Company’s stock-based compensation expenses (benefit) were allocated to the following expense categories: Three Months Ended December 31, (Dollars in thousands) 2017 2016 Product costs $ (6 ) $ 13 Research and development 158 125 Selling, general and administrative 751 651 Total $ 903 $ 789 |
Assumptions Used in Stock Option Plans | The assumptions used as inputs in the model were as follows: Three Months Ended December 31, 2017 2016 Risk-free interest rates 2.0 % 1.7 % Expected life (years) 4.8 4.6 Expected volatility 33.0 % 34.4 % Dividend yield 0.0 % 0.0 % |
Schedule of Fair Value at the Date of Grant | The aggregate number of shares that could be awarded to our executives if the minimum, target and maximum performance goals are met, based on the fair value at the date of grant is as follows: Performance Period Minimum Shares Target Shares Maximum Shares Fiscal 2016 – 2018 13,268 66,338 132,676 Fiscal 2017 – 2019 10,437 52,185 104,370 |
Net (Loss) Income Per Share D29
Net (Loss) Income Per Share Data (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Denominator for Computation of Basic and Diluted Net Income Per Share | The following table sets forth the denominator for the computation of basic and diluted net income per share (in thousands): Three Months Ended December 31, 2017 2016 Net (loss) income available to common shareholders $ (1,556 ) $ 2,300 Basic weighted average shares outstanding 13,064 13,200 Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units, deferred stock units and performance shares — 246 Diluted weighted average shares outstanding 13,064 13,446 |
Segment and Geographical Info30
Segment and Geographical Information (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Revenue, Operating (Loss) Income and Depreciation and Amortization | The tables below present segment revenue, operating (loss) income and depreciation and amortization, as follows: Three Months Ended December 31, (Dollars in thousands) 2017 2016 Revenue: Medical Device $ 12,774 $ 13,757 In Vitro Diagnostics 4,239 4,004 Total revenue $ 17,013 $ 17,761 Operating (loss) income: Medical Device $ (389 ) $ 3,719 In Vitro Diagnostics 1,670 1,456 Total segment operating income 1,281 5,175 Corporate (1,914 ) (1,907 ) Total operating (loss) income $ (633 ) $ 3,268 Depreciation and amortization: Medical Device $ 1,272 $ 1,004 In Vitro Diagnostics 90 103 Corporate 158 175 Total depreciation and amortization $ 1,520 $ 1,282 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Dec. 31, 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 December 31, 2017 for the remainder of fiscal 2018 and each of the next five fiscal years is as follows (in thousands) : Remainder of 2018 $ 280 2019 441 2020 450 2021 396 2022 391 2023 399 Thereafter 1,933 Total minimum lease payments $ 4,290 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Sep. 30, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Contingent consideration liability, current | $ 13,752,000 | $ 1,750,000 |
Transfers in or out Level 3, Assets | 0 | 0 |
Transfers in or out Level 3, Liabilities | 0 | 0 |
Transfers out of Level 1 to Level 2, Assets | 0 | 0 |
Transfers into Level 1 out of Level 2, Assets | 0 | 0 |
Transfers out of Level 1 to Level 2, Liabilities | 0 | 0 |
Transfers into Level 1 out of Level 2, Liabilities | $ 0 | 0 |
Minimum [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Percentage of Probability Not Achieved of Contingent Consideration payment. | 25.00% | |
Maximum [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Percentage of Probability Not Achieved of Contingent Consideration payment. | 98.00% | |
Contingent Consideration [Member] | Revenue Based Milestones [Member] | NorMedix [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value Inputs, Discount Rate | 23.50% | |
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% | |
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% | |
Level 3 Liabilities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Contingent consideration liability, current | $ 13,800,000 | $ 1,800,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | $ 38,555 | $ 38,441 |
Liabilities measured at fair value | (16,162) | (14,864) |
Available-for-sale securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 24,756 | 31,802 |
Cash equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 13,799 | 6,639 |
Contingent consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (16,162) | (14,864) |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 38,555 | 38,441 |
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 | 24,756 | 31,802 |
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 | 13,799 | 6,639 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (16,162) | (14,864) |
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 | $ (16,162) | $ (14,864) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Contingent Consideration Liabilities Measured at Fair Value (Detail) - Contingent Consideration [Member] - Significant Unobservable Inputs (Level 3) [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ 14,864 | $ 14,517 |
Fair value adjustments | 1,019 | |
Interest accretion | 99 | 437 |
Foreign currency translation loss (gain) | 180 | (663) |
Ending balance | $ 16,162 | $ 14,291 |
Investments - Amortized Cost, U
Investments - Amortized Cost, Unrealized Holding Gains and (Losses) and Fair Value of Available-for-sale Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 24,782 | $ 31,817 |
Unrealized Losses | (26) | (15) |
Fair Value | 24,756 | 31,802 |
Commercial paper and corporate bonds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 24,782 | 31,817 |
Unrealized Losses | (26) | (15) |
Fair Value | $ 24,756 | $ 31,802 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,123 | $ 1,603 |
Work-in process | 669 | 659 |
Finished products | 1,079 | 1,254 |
Total | $ 3,871 | $ 3,516 |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 |
Schedule of Investments [Line Items] | ||
Other assets, net | $ 1,039 | $ 897 |
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 | $ 560 | $ 418 |
Other Assets - Additional Infor
Other Assets - Additional Information (Detail) - ViaCyte, Inc. [Member] $ in Millions | 3 Months Ended |
Dec. 31, 2017USD ($) | |
Schedule of Investments [Line Items] | |
Equity method investment | $ 5.3 |
Other than temporary impairment loss on investment | 4.8 |
Cost method of investment | $ 0.5 |
Maximum [Member] | |
Schedule of Investments [Line Items] | |
Company's ownership percentage | 1.00% |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 0.7 | $ 0.6 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Sep. 30, 2017 | |
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Accumulated Amortization | $ (11,555) | $ (10,838) |
Intangible assets, Gross Carrying Amount | 31,631 | 31,400 |
Intangible assets, Net | $ 20,076 | $ 20,562 |
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 | $ 18,478 | $ 18,293 |
Definite-lived intangible assets, Accumulated Amortization | (8,279) | (7,834) |
Definite-lived intangible assets, Net | $ 10,199 | $ 10,459 |
Developed Technology [Member] | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Weighted Average Original Life (Years) | 11 years 8 months 12 days | 11 years 8 months 12 days |
Definite-lived intangible assets, Gross Carrying Amount | $ 9,334 | $ 9,297 |
Definite-lived intangible assets, Accumulated Amortization | (1,702) | (1,478) |
Definite-lived intangible assets, Net | $ 7,632 | $ 7,819 |
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 | (115) | (103) |
Definite-lived intangible assets, Net | $ 115 | $ 127 |
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 | (1,459) | (1,423) |
Definite-lived intangible assets, Net | 862 | 898 |
Definite-Lived Intangible Assets [Member] | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross Carrying Amount | 30,363 | 30,141 |
Definite-lived intangible assets, Accumulated Amortization | (11,555) | (10,838) |
Definite-lived intangible assets, Net | 18,808 | 19,303 |
In-Process Research and Development [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Net | 688 | 679 |
Trademarks and Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Net | $ 580 | $ 580 |
Intangible Assets - Estimated A
Intangible Assets - Estimated Amortization Expense (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Remainder of 2018 | $ 2,015 |
2,019 | 2,686 |
2,020 | 2,511 |
2,021 | 2,372 |
2,022 | 2,332 |
2,023 | $ 1,715 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 27,505 | $ 27,282 |
Goodwill - Schedule Of Carrying
Goodwill - Schedule Of Carrying Amount of Goodwill by Segment (Detail) $ in Thousands | 3 Months Ended |
Dec. 31, 2017USD ($) | |
Goodwill [Line Items] | |
Balance as of September 30, 2017 | $ 27,282 |
Currency translation adjustment | 223 |
Balance as of December 31, 2017 | 27,505 |
In Vitro Diagnostics [Member] | |
Goodwill [Line Items] | |
Balance as of September 30, 2017 | 8,010 |
Balance as of December 31, 2017 | 8,010 |
Medical Device [Member] | |
Goodwill [Line Items] | |
Balance as of September 30, 2017 | 19,272 |
Currency translation adjustment | 223 |
Balance as of December 31, 2017 | $ 19,495 |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock-based Compensation Expenses (Benefit) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 903 | $ 789 |
Product costs [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | (6) | 13 |
Research and development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 158 | 125 |
Selling, general and administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 751 | $ 651 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Stock-Based Compensation Activity [Line Items] | |||||
Unrecognized compensation costs related to non-vested awards | $ 8,000,000 | ||||
Weighted average period for recognition of compensation costs related to non-vested awards | 2 years 8 months 13 days | ||||
Performance share awards fully expensed | $ 1,300,000 | ||||
Weighted average per share fair value of stock options | $ 10.57 | $ 7.59 | |||
Dividend yield | 0.00% | 0.00% | |||
Vesting period | 3 years | 3 years | 3 years | ||
Total pre-tax intrinsic value of options exercised | $ 300,000 | ||||
Fiscal 2015 (2015 - 2017) [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Performance period start year | 2,015 | ||||
Performance period end year | 2,017 | ||||
Fiscal 2016 (2016 - 2018) [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Performance period start year | 2,016 | ||||
Performance period end year | 2,018 | ||||
Fiscal 2017 (2017 - 2019) [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Performance period start year | 2,017 | ||||
Performance period end year | 2,019 | ||||
Maximum [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Total pre-tax intrinsic value of options exercised | $ 100,000 | ||||
Nonqualified Stock Options [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Stock compensation expenses recognized | $ 400,000 | $ 300,000 | |||
Nonqualified Stock Options [Member] | Board of Director [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Stock option exercisable on a pro-rata basis | 1 year | ||||
Nonqualified Stock Options [Member] | Employee [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Vesting period | 4 years | ||||
Nonqualified Stock Options [Member] | Minimum [Member] | Board of Director [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Stock option expiration term upon expiration of employment or service | 7 years | ||||
Nonqualified Stock Options [Member] | Maximum [Member] | Board of Director [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Stock option expiration term upon expiration of employment or service | 10 years | ||||
Restricted Stock Awards [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Number of stock units awarded | 57,635 | 39,958 | |||
Number of stock units forfeited | 2,220 | ||||
Number of stock units outstanding | 100,557 | 67,917 | |||
Restricted stock expense | $ 200,000 | $ 100,000 | |||
Restricted Stock Awards [Member] | Minimum [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Vesting period | 1 year | ||||
Restricted Stock Awards [Member] | Maximum [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Vesting period | 3 years | ||||
Performance Shares [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Stock compensation expenses recognized | $ 200,000 | 200,000 | |||
Issuance of shares | 51,478 | ||||
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 (2017 - 2019) [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Fair value of performance shares for grants awarded | $ 1,200,000 | ||||
Performance Shares [Member] | Maximum [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Issuance of shares | 84,398 | ||||
Employee Stock Purchase Plan [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Annual compensation withheld, maximum limit | $ 25,000 | ||||
Employee Stock Purchase Plan [Member] | Maximum [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Stock compensation expenses recognized | $ 100,000 | $ 100,000 | |||
Common stock authorized, shares | 600,000 | ||||
Annual compensation withheld | 10.00% | ||||
Employee contributions | $ 100,000 | $ 100,000 | |||
Restricted Stock Units (RSUs) [Member] | 2009 Equity Incentive Plan [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Number of stock units awarded | 5,626 | 6,570 | |||
Number of stock units outstanding | 28,444 | 44,391 | |||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | 2009 Equity Incentive Plan [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Stock compensation expenses recognized | $ 100,000 | $ 100,000 | |||
Deferred Stock Units [Member] | 2009 Equity Incentive Plan [Member] | Director [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Number of stock units awarded | 500 | 1,971 | |||
Number of stock units outstanding | 24,941 | 24,441 | |||
Deferred Stock Units [Member] | Maximum [Member] | 2009 Equity Incentive Plan [Member] | Director [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Stock compensation expenses recognized | $ 100,000 | $ 100,000 | |||
Number of stock units outstanding estimated fair value | $ 100,000 | $ 100,000 | |||
Vesting Anniversary [Member] | Nonqualified Stock Options [Member] | Employee [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Vesting percentage | 25.00% | ||||
Performance Level [Member] | Minimum [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Vesting percentage | 20.00% | ||||
Performance Level [Member] | Maximum [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Performance share awards, estimated vesting percentage | 200.00% |
Stock-based Compensation - Assu
Stock-based Compensation - Assumptions Used in Stock Option Plans (Detail) | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Risk-free interest rates | 2.00% | 1.70% |
Expected life (years) | 4 years 9 months 18 days | 4 years 7 months 6 days |
Expected volatility | 33.00% | 34.40% |
Dividend yield | 0.00% | 0.00% |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Fair Value at the Date of Grant (Detail) | 3 Months Ended |
Dec. 31, 2017shares | |
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] | 3 Months Ended |
Dec. 31, 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 month and year | 2019-11 |
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 |
Net (Loss) Income Per Share D49
Net (Loss) Income Per Share Data - Additional Information (Detail) - USD ($) shares in Millions | 3 Months Ended | |
Dec. 31, 2016 | Nov. 05, 2014 | |
Earnings Loss Per Share [Line Items] | ||
Weighted average diluted shares outstanding excluded outstanding stock options | 0.3 | |
Accelerated Share Repurchase Program [Member] | ||
Earnings Loss Per Share [Line Items] | ||
Maximum payments for repurchase of common stock | $ 25,300,000 |
Net (Loss) Income Per Share D50
Net (Loss) Income Per Share Data - Denominator for Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Net (loss) income available to common shareholders | $ (1,556) | $ 2,300 |
Basic weighted average shares outstanding | 13,064 | 13,200 |
Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units, deferred stock units and performance shares | 246 | |
Diluted weighted average shares outstanding | 13,064 | 13,446 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | |
Income Tax Disclosure [Line Items] | |||||
Income tax provisions | $ 1,035,000 | $ 1,727,000 | |||
Discrete tax expense | $ 1,200,000 | ||||
U.S. federal statutory tax rate | 21.00% | 24.50% | 35.00% | ||
State income tax reserve reversals related to statutory filing | $ 100,000 | $ 200,000 | |||
Unrecognized tax benefits excluding interest and penalties that would impact effective tax rate | $ 1,400,000 | 1,400,000 | $ 1,200,000 | ||
Undistributed earnings in foreign subsidiaries | $ 0 | 0 | $ 0 | ||
IRS [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Income tax examination, year under examination | 2,016 | ||||
Expected Statutory Income Tax Rate [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
U.S. federal statutory tax rate | 24.50% | ||||
Expiring Stock Option Awards [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Discrete tax (benefit) expense | $ (200,000) | $ 300,000 |
Segment and Geographical Info52
Segment and Geographical Information - Additional Information (Detail) | 3 Months Ended |
Dec. 31, 2017Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment and Geographical Info53
Segment and Geographical Information - Segment Revenue, Operating (Loss) Income and Depreciation and Amortization (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 17,013 | $ 17,761 |
Operating (loss) income | (633) | 3,268 |
Depreciation and amortization | 1,520 | 1,282 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating (loss) income | 1,281 | 5,175 |
Operating Segments [Member] | Medical Device [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 12,774 | 13,757 |
Operating (loss) income | (389) | 3,719 |
Depreciation and amortization | 1,272 | 1,004 |
Operating Segments [Member] | In Vitro Diagnostics [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 4,239 | 4,004 |
Operating (loss) income | 1,670 | 1,456 |
Depreciation and amortization | 90 | 103 |
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating (loss) income | (1,914) | (1,907) |
Depreciation and amortization | $ 158 | $ 175 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | ||
Nov. 30, 2017USD ($)ft² | Dec. 31, 2017USD ($)€ / $ | Dec. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | |
Commitments And Contingencies [Line Items] | ||||
License agreement commencement date | 2006-03 | 2006-03 | ||
Annual minimum payments for licenses | $ 240,000 | € 200,000 | ||
Exchange rate relating to license payment | € / $ | 1.1979 | |||
Future minimum payments associated with license | $ 2,400,000 | |||
Rent expense related to operating leases | 100,000 | $ 100,000 | ||
Amount deposited into restricted cash account | $ 350,000 | |||
Eden Prairie Minnesota [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Square feet facility | ft² | 36,000 | |||
Contractual obligations | $ 4,000,000 | |||
Operating lease agreement term | 10 years | |||
Operating lease agreement expected commencement date | 2018-05 | |||
Amount deposited into restricted cash account | $ 400,000 | |||
Patents [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Patent expiry date | 2027-09 | 2027-09 |
Commitments and Contingencies55
Commitments and Contingencies - Summary of Annual Commitments Pursuant to Operating Lease Agreements (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Remainder of 2018 | $ 280 |
2,019 | 441 |
2,020 | 450 |
2,021 | 396 |
2,022 | 391 |
2,023 | 399 |
Thereafter | 1,933 |
Total minimum lease payments | $ 4,290 |