Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2019 | Feb. 04, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SRDX | |
Security Exchange Name | NASDAQ | |
Entity Registrant Name | SURMODICS INC | |
Entity Central Index Key | 0000924717 | |
Current Fiscal Year End Date | --09-30 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Title of 12(b) Security | Common Stock, $0.05 par value | |
Entity File Number | 0-23837 | |
Entity Incorporation, State or Country Code | MN | |
Entity Tax Identification Number | 41-1356149 | |
Entity Address, Address Line One | 9924 West 74th Street | |
Entity Address, City or Town | Eden Prairie | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55344 | |
City Area Code | 952 | |
Local Phone Number | 500-7000 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 13,590,159 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 9,006 | $ 30,361 |
Available-for-sale securities | 39,256 | 24,931 |
Accounts receivable, net of allowance for doubtful accounts of $176 and $200 as of December 31, 2019 and September 30, 2019, respectively | 7,681 | 8,993 |
Contract assets - royalties and license fees | 7,847 | 8,210 |
Inventories, net | 4,951 | 4,501 |
Income tax receivable | 561 | 558 |
Prepaids and other | 4,164 | 3,866 |
Total Current Assets | 73,466 | 81,420 |
Property and equipment, net | 30,766 | 29,748 |
Deferred income taxes | 6,370 | 6,176 |
Intangible assets, net | 13,785 | 14,226 |
Goodwill | 26,546 | 26,171 |
Other assets | 4,125 | 2,124 |
Total Assets | 155,058 | 159,865 |
Current Liabilities: | ||
Accounts payable | 2,396 | 2,085 |
Accrued liabilities: | ||
Compensation | 1,989 | 4,581 |
Accrued other | 4,878 | 4,790 |
Deferred revenue | 4,928 | 5,553 |
Contingent consideration | 3,200 | |
Total Current Liabilities | 14,191 | 20,209 |
Deferred revenue, less current portion | 10,907 | 11,628 |
Other long-term liabilities | 6,634 | 5,512 |
Total Liabilities | 31,732 | 37,349 |
Commitments and Contingencies (Note 16) | ||
Stockholders’ Equity: | ||
Series A Preferred stock — $.05 par value, 450,000 shares authorized; no shares issued and outstanding | ||
Common stock — $.05 par value, 45,000,000 shares authorized; 13,593,069 and 13,504,102 shares issued and outstanding as of December 31, 2019 and September 30, 2019, respectively | 680 | 675 |
Additional paid-in capital | 10,361 | 10,740 |
Accumulated other comprehensive income | 1,432 | 396 |
Retained earnings | 110,853 | 110,705 |
Total Stockholders’ Equity | 123,326 | 122,516 |
Total Liabilities and Stockholders’ Equity | $ 155,058 | $ 159,865 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 176 | $ 200 |
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 | 13,593,069 | 13,504,102 |
Common stock, shares outstanding | 13,593,069 | 13,504,102 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue: | ||
Total revenue | $ 22,616 | $ 22,241 |
Operating costs and expenses: | ||
Type of Cost, Good or Service [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember |
Product costs | $ 3,203 | $ 3,523 |
Research and development | 12,142 | 11,486 |
Selling, general and administrative | 6,943 | 5,949 |
Acquired intangible asset amortization | 594 | 606 |
Contingent consideration gain | (35) | |
Total operating costs and expenses | 22,882 | 21,529 |
Operating (loss) income | (266) | 712 |
Other income: | ||
Investment income, net | 250 | 316 |
Interest expense | (40) | (37) |
Foreign exchange (loss) gain | (47) | 136 |
Other | 1 | 7 |
Other income | 164 | 422 |
(Loss) income before income taxes | (102) | 1,134 |
Income tax benefit | 250 | 176 |
Net income | $ 148 | $ 1,310 |
Basic net income per share: | $ 0.01 | $ 0.10 |
Diluted net income per share: | $ 0.01 | $ 0.09 |
Weighted average number of shares outstanding: | ||
Basic | 13,469 | 13,367 |
Diluted | 13,769 | 13,827 |
Product Sales [Member] | ||
Revenue: | ||
Total revenue | $ 9,974 | $ 9,751 |
Royalties and License Fees [Member] | ||
Revenue: | ||
Total revenue | 10,148 | 10,096 |
Research, Development and Other [Member] | ||
Revenue: | ||
Total revenue | $ 2,494 | $ 2,394 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 148 | $ 1,310 |
Other comprehensive income (loss): | ||
Unrealized holding gains on available-for-sale securities, net of tax | (5) | 4 |
Foreign currency translation adjustments | 1,041 | (538) |
Other comprehensive income (loss) | 1,036 | (534) |
Comprehensive income | $ 1,184 | $ 776 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income [Member] | Retained Earnings [Member] |
Beginning balance at Sep. 30, 2018 | $ 108,610 | $ 670 | $ 7,607 | $ 2,718 | $ 97,615 |
Beginning balance, shares at Sep. 30, 2018 | 13,398 | ||||
Net impact from adoption of ASC Topic 606 | 5,498 | 5,498 | |||
Net income | 1,310 | 1,310 | |||
Other comprehensive income (loss), net of tax | (534) | (534) | |||
Issuance of common stock | $ 6 | (6) | |||
Issuance of common stock, shares | 128 | ||||
Common stock options exercised, net | 36 | 36 | |||
Common stock options exercised, net, shares | 1 | ||||
Purchase of common stock to pay employee taxes | (2,530) | $ (2) | (2,528) | ||
Purchase of common stock to pay employee taxes, shares | (44) | ||||
Stock-based compensation | 1,231 | 1,231 | |||
Ending balance at Dec. 31, 2018 | 113,621 | $ 674 | 6,340 | 2,184 | 104,423 |
Ending balance, shares at Dec. 31, 2018 | 13,483 | ||||
Beginning balance at Sep. 30, 2019 | 122,516 | $ 675 | 10,740 | 396 | 110,705 |
Beginning balance, shares at Sep. 30, 2019 | 13,504 | ||||
Net income | 148 | 148 | |||
Other comprehensive income (loss), net of tax | 1,036 | 1,036 | |||
Issuance of common stock | $ 7 | (7) | |||
Issuance of common stock, shares | 125 | ||||
Common stock options exercised, net | 91 | 91 | |||
Common stock options exercised, net, shares | 8 | ||||
Purchase of common stock to pay employee taxes | (1,858) | $ (2) | (1,856) | ||
Purchase of common stock to pay employee taxes, shares | (44) | ||||
Stock-based compensation | 1,393 | 1,393 | |||
Ending balance at Dec. 31, 2019 | $ 123,326 | $ 680 | $ 10,361 | $ 1,432 | $ 110,853 |
Ending balance, shares at Dec. 31, 2019 | 13,593 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Activities: | ||
Net income | $ 148 | $ 1,310 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 1,804 | 1,756 |
Stock-based compensation | 1,393 | 1,231 |
Payment of contingent consideration obligations in excess of acquisition-date value | (608) | (2,041) |
Contingent consideration gain | (35) | |
Deferred taxes | (194) | 310 |
Gain on strategic investment | (7) | |
Provision for bad debts | (27) | 63 |
Other | 50 | 12 |
Change in operating assets and liabilities: | ||
Accounts receivable and contract asset | 1,726 | (762) |
Inventories | (413) | (161) |
Prepaids and other | (800) | (649) |
Accounts payable | 529 | 190 |
Accrued liabilities | (3,112) | (3,737) |
Income taxes | (59) | (496) |
Deferred revenue | (1,346) | (2,389) |
Net cash used in operating activities | (909) | (5,405) |
Investing Activities: | ||
Purchases of property and equipment | (1,671) | (2,066) |
Purchases of available-for-sale securities | (21,758) | (10,098) |
Maturities of available-for-sale securities | 7,425 | 20,000 |
Cash received from sale of strategic investment | 7 | |
Net cash (used in) provided by investing activities | (16,004) | 7,843 |
Financing Activities: | ||
Issuance of common stock | 91 | 36 |
Payments for taxes related to net share settlement of equity awards | (1,964) | (2,661) |
Payment of contingent consideration obligations | (2,592) | (9,064) |
Net cash used in financing activities | (4,465) | (11,689) |
Effect of exchange rate changes on cash and cash equivalents | 23 | (15) |
Net change in cash and cash equivalents | (21,355) | (9,266) |
Cash and Cash Equivalents: | ||
Beginning of period | 30,361 | 23,668 |
End of period | 9,006 | 14,402 |
Supplemental Information: | ||
Cash paid for income taxes | 4 | 3 |
Noncash transactions from investing and financing activities: | ||
Acquisition of property and equipment, net of refundable credits in other current assets and liabilities | $ 167 | $ 147 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 2019 | |
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 amounts that are based on management’s best estimates and judgments. These estimates may be adjusted as more information becomes available, and any adjustment could be significant. The impact of any change in estimates is included in the determination of net income (loss) in the period in which the change in estimate is identified. The results of operations for the three months ended December 31, 2019 are not necessarily indicative of the results that may be expected for the entire 2020 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, 2019, and footnotes thereto included in the Company’s Annual Report on Form 10-K as filed with the SEC on December 3, 2019. New Accounting Pronouncements Recently Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) ASU 2016-02, Leases ASC Topic 842” Effective October 1, 2019, the Company adopted the new lease accounting standard using the optional transition method which allowed us to continue to apply the guidance under the lease standard in effect at the time in the comparative periods presented. In addition, the Company elected the package of practical expedients, including opting not to reassess whether any existing contracts contain a lease, historical lease classification as operating or finance leases, or initial direct costs. The Company has also elected the practical expedient to not separate the lease and non-lease components for all classes of underlying assets. The Company elected the short-term lease recognition exemption for all leases that qualified and has accordingly excluded short-term leases from the recognition of right-of-use assets and lease liabilities. As a result of adoption of Accounting Standards Codification (“ASC”) Topic 842, we recorded operating lease right-of-use assets and corresponding operating lease liabilities of approximately $1.7 million and $2.9 million, respectively, as of October 1, 2019 with no impact on retained earnings. In addition, deferred rent liabilities related to escalating rent payments and tenant incentives totaling approximately $1.2 million were eliminated upon adoption, as these items are netted against right-of-use assets. The condensed consolidated balance sheets for reporting periods beginning on or after October 1, 2019 are presented under the new guidance, while prior period amounts are not adjusted and continue to be reported in accordance with previous guidance. Not Yet Adopted In June 2016, the FASB issued ASU No 2016-13, Financial Instruments – Credit Losses, 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. |
Revenue
Revenue | 3 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 2. Revenue The following table presents our revenues disaggregated by product classification and by operating segment, excluding sales taxes collected and remitted to governmental authorities (in thousands, unaudited). Three Months Ended December 31, (Dollars in thousands) 2019 2018 Medical Device Product sales $ 5,023 $ 4,778 Royalties 8,898 7,685 Research, development and other 2,234 2,384 License fees 1,249 2,411 Total Revenue - Medical Device 17,404 17,258 IVD Product sales 4,952 4,973 Other 260 10 Total Revenue - IVD 5,212 4,983 Total Revenue $ 22,616 $ 22,241 Contract Assets, Deferred Revenue and Remaining Performance Obligations Contract asset balances consist of estimated sales-based royalties earned but not collected at each balance sheet date and are subject to timing fluctuations at the end of a given period. The Company’s deferred revenue, or contract liability, is primarily related to the upfront and milestone payments received pursuant to the collaborative license and commercialization agreement with Abbott (the “Abbott Agreement”) for the Company’s SurVeil™ drug-coated balloon product (“ SurVeil As of December 31, 2019, the estimated revenue expected to be recognized in future periods related to performance obligations that are unsatisfied for executed contracts with an original duration of one year or more totaled approximately $15.8 million. These remaining performance obligations relate to the Abbott Agreement (Note 3), exclude contingent milestone payments under the Abbott Agreement, and are expected to be recognized over the next six years as services, principally the TRANSCEND study, are completed. |
Collaborative Arrangement
Collaborative Arrangement | 3 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Collaborative Arrangement | 3. Collaborative Arrangement Under the Abbott Agreement, Abbott will have exclusive worldwide commercialization rights for the SurVeil DCB to treat the superficial femoral artery, which is currently being evaluated in a U.S. pivotal clinical trial. Separately, Abbott also received options to negotiate agreements for Surmodics' below-the-knee and arteriovenous (“AV”) fistula DCB products, which are currently in pre-clinical development and a first-in human clinical study, respectively SurVeil SurVeil To account for the Abbott Agreement, the Company applied the guidance in ASC Topic 808 (Collaborative Arrangements) as the parties are active participants and are exposed to significant risks and rewards dependent on commercial success of the collaborative activity. The Company has received a $25 million upfront fee as well as a $10 million milestone under the Abbott Agreement and may receive up to $56 million of additional payments upon achievement of various clinical and regulatory milestones. For the three months ended December 2019 and 2018, the Company recognized revenue totaling $1.3 million and $2.4 million, respectively, from the Abbott arrangement, all of which was previously included in deferred revenue. As of December 31, 2019 and September 30, 2019, deferred revenue from the upfront and milestone payments received of $15.8 million and $17.1 million, respectively, is recorded in the condensed consolidated balance sheets. Upon the commercialization of the SurVeil DCB, Surmodics will be responsible for the manufacture and supply of clinical and commercial quantities of the product. Revenue from these product sales, including a per-unit transfer price and a share of net profits resulting from third-party sales by Abbott, will be recognized if and when these products are shipped and control is transferred to the customer |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The accounting guidance on fair value measurements defines fair value, establishes a framework for measuring fair value under GAAP, and expands disclosures about fair value measurements. The guidance is applicable for all financial assets and financial liabilities and for all nonfinancial assets and nonfinancial liabilities recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). Fair value is defined as the exchange price that would be received from selling an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and also considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of nonperformance. Fair Value Hierarchy Accounting guidance on fair value measurements requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: Level 1 — Quoted (unadjusted) prices in active markets for identical assets or liabilities. The Company did not have any Level 1 assets as of December 31, 2019 and September 30, 2019. 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, 2019 and September 30, 2019 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. The Level 3 liability as of September 30, 2019 consisted of contingent consideration obligations related to the fiscal 2016 acquisition of NorMedix, Inc. (“NorMedix”). Consideration owed to the sellers of NorMedix from revenue and value-creating milestones achieved through September 30, 2019 totaling $3.2 million was paid during the three months ended December 31, 2019, with $0.6 million and $2.6 million classified as cash flows used in operating and financing activities, respectively, on the condensed consolidated statements of cash flows. In valuing Level 3 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 measured at fair value on a recurring basis as of December 31, 2019: (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, 2019 Assets Cash equivalents $ — $ 6,286 $ — $ 6,286 Available-for-sale securities — 39,256 — 39,256 Total assets $ — $ 45,542 $ — $ 45,542 The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2019: (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, 2019 Assets Cash equivalents $ — $ 24,375 $ — $ 24,375 Available-for-sale securities — 24,931 — $ 24,931 Total assets $ — $ 49,306 $ — $ 49,306 Liabilities Contingent consideration $ — $ — $ (3,200 ) $ (3,200 ) Total liabilities $ — $ — $ (3,200 ) $ (3,200 ) Changes in the contingent consideration liabilities measured at fair value using Level 3 inputs were as follows three months ended December 31, 2019 and 2018 Three Months Ended December 31, (Dollars in thousands) 2019 2018 Beginning balance $ 3,200 $ 14,466 Additions — — Fair value adjustments — (149 ) Settlements (3,200 ) (10,979 ) Interest accretion — 114 Foreign currency translation loss (gain) — (126 ) Ending balance $ — $ 3,326 There were no transfers of assets or liabilities between amounts measured using Level 1, Level 2, or Level 3 fair value measurements in fiscal 2020 and fiscal 2019. 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. |
Investments
Investments | 3 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | 5. Investments Investments consisted principally of commercial paper and corporate bond securities and are classified as available-for-sale as of December 31, 2019 and September 30, 2019. These 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, 2019 (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper and corporate bonds $ 39,251 $ 5 $ — $ 39,256 Total $ 39,251 $ 5 $ — $ 39,256 September 30, 2019 (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper and corporate bonds $ 24,918 $ 13 $ — $ 24,931 Total $ 24,918 $ 13 $ — $ 24,931 |
Inventories
Inventories | 3 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 6. Inventories Inventories are principally stated at the lower of cost or market using the specific identification method and include direct labor, materials and overhead, with cost of product sales determined on a first-in, first-out basis. Inventories consisted of the following components: December 31, September 30, (Dollars in thousands) 2019 2019 Raw materials $ 2,409 $ 2,034 Work-in process 1,349 892 Finished products 1,193 1,575 Total $ 4,951 $ 4,501 |
Other Assets
Other Assets | 3 Months Ended |
Dec. 31, 2019 | |
Investments All Other Investments [Abstract] | |
Other Assets | 7. Other Assets Other assets consisted of the following: December 31, September 30, (Dollars in thousands) 2019 2019 ViaCyte, Inc. $ 479 $ 479 Operating lease right-of-use assets 1,696 — Other noncurrent assets 1,950 1,645 Other assets $ 4,125 $ 2,124 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. Other noncurrent assets include prepaid expenses related to our ongoing clinical trials and a receivable related to refundable Irish research and development tax credits. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 8. Intangible Assets Intangible assets consist principally of acquired patents and technology, customer lists and relationships, licenses and trademarks. The Company recorded amortization expense of $0.7 million for both the three months ended December 31, 2019 and 2018. Intangible assets consisted of the following: December 31, 2019 (Dollars in thousands) Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 8.9 $ 17,684 $ (11,177 ) $ 6,507 Developed technology 11.5 $ 9,562 $ (3,453 ) $ 6,109 Non-compete 5.0 $ 230 $ (207 ) $ 23 Patents and other 16.5 $ 2,321 $ (1,755 ) $ 566 Subtotal 29,797 (16,592 ) 13,205 Unamortized intangible assets: Trademarks and trade names 580 — 580 Total $ 30,377 $ (16,592 ) $ 13,785 September 30, 2019 (Dollars in thousands) Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 8.9 $ 17,374 $ (10,661 ) $ 6,713 Developed technology 11.5 9,490 (3,196 ) 6,294 Non-compete 5.0 230 (196 ) 34 Patents and other 16.5 2,321 (1,716 ) 605 Subtotal 29,415 (15,769 ) 13,646 Unamortized intangible assets: Trademarks and trade names 580 — 580 Total $ 29,995 $ (15,769 ) $ 14,226 Based on the intangible assets in service as of December 31, 2019, estimated amortization expense for the remainder of fiscal 2020 and each of the next five fiscal years is as follows (in thousands) Remainder of 2020 $ 1,799 2021 2,319 2022 2,279 2023 1,668 2024 1,610 2025 1,553 Future amortization amounts presented above are estimates. Actual future amortization expense may be different as a result of future acquisitions, impairments, changes in amortization periods, foreign currency translation rates, or other factors. |
Goodwill
Goodwill | 3 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 9. Goodwill Goodwill represents the excess of the cost of an acquired entity over the fair value assigned to the assets purchased and liabilities assumed in connection with a business acquisition. Goodwill is not amortized but is subject, at a minimum, to annual tests for impairment in accordance with accounting guidance for goodwill. The carrying amount of goodwill is evaluated annually, and between annual evaluations if events occur or circumstances change indicating that the carrying amount of goodwill may be impaired. Goodwill as of December 31, 2019 and September 30, 2019 totaled $26.5 million and $26.2 million, respectively. Goodwill in the Medical Device reporting unit represents the gross value from the fiscal 2016 acquisitions of Creagh Medical Limited (“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 2019 annual impairment test, and there have been no events or circumstances that have occurred in the first three months of fiscal 2020 to indicate that goodwill has been impaired. Changes in the carrying amount of goodwill by segment were as follows: (Dollars in thousands) In Vitro Diagnostics Medical Device Total Balance as of September 30, 2019 $ 8,010 $ 18,161 $ 26,171 Currency translation adjustment — 375 375 Balance as of December 31, 2019 $ 8,010 $ 18,536 $ 26,546 |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | 10. Accrued Liabilities Accrued liabilities consisted of the following: December 31, September 30, (Dollars in thousands) 2019 2019 Accrued professional fees $ 257 $ 434 Accrued clinical study expense 1,438 2,163 Accrued purchases 1,150 679 Acquisition of in process research and development 1,167 989 Current portion of lease liability 472 — Deferred rent — 130 Other 394 395 Total $ 4,878 $ 4,790 |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 11. Stock-based Compensation The Company has stock-based compensation plans under which it grants stock options, restricted stock awards, performance share awards, restricted stock units and deferred stock units. Accounting guidance requires all share-based payments to be recognized as an operating expense, based on their fair values, over the requisite service period. The Company’s stock-based compensation expenses were allocated to the following expense categories: Three Months Ended December 31, (Dollars in thousands) 2019 2018 Product costs $ 33 $ 32 Research and development 262 213 Selling, general and administrative 1,098 986 Total $ 1,393 $ 1,231 As of December 31, 2019, approximately $10.5 million of total unrecognized compensation costs related to non-vested awards is expected to be recognized over a weighted average period of approximately 2.7 years. Stock Option Awards The Company uses the Black-Scholes option pricing model to determine the weighted average grant date fair value of stock options granted. The weighted average per share fair values of stock options granted during the three months ended December 31, 2019 and 2018 Three Months Ended December 31, 2019 2018 Risk-free interest rates 1.6 % 2.9 % Expected life (years) 4.6 4.5 Expected volatility 37.8 % 33.2 % 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 awards. 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 years 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 $0.6 million and $0.5 million for the three months ended December 31, 2019 and 2018. The total pre-tax intrinsic value of options exercised during the three months ended December 31, 2019 and 2018 was $0.2 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, 2019 and 2018, the Company awarded 54,694 and 42,248 Restricted Stock shares, respectively, to certain key employees and officers. Forfeiture of 4,099 and 507 Restricted Stock shares occurred during the three months ended December 31, 2019 and 2018, respectively. As of December 31, 2019 and September 30, 2019, 99,500 and 90,409 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 $0.5 million and $0.4 million for the three months ended December 31, 2019 and 2018, respectively. Performance Share Awards The Company has entered into performance share agreements with certain key employees 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 2017 (2017 – 2019). The fiscal 2017 awards also included performance objectives related to achievement of the Company’s strategic initiatives. Awards granted in fiscal 2017 were finalized in the three months ended December 31, 2019 and resulted in the issuance of 67,653 shares, with a value of $2.8 million, based on the performance objectives relative to actual results achieved during the performance period. The per share compensation cost for each award was fixed on the grant date. The stock-based compensation expense table includes Performance Shares expense recognized related to these awards, which totaled $0.2 million for the three months ended December 31, 2018. Performance Shares expense recognized in the three months ended December 31, 2019 was insignificant as all Performances Shares were vested as of September 30, 2019. The fair values of the Performance Shares, at target, were $1.2 million for awards granted in fiscal 2017. There have been no Performance Share awards granted subsequent to fiscal 2017. 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 December 31, 2019 and September 30, 2019, 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, 2019 and 2018 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, 2019 and 2018, the Company awarded 8,032 and 6,206 restricted stock units (“RSUs”), respectively, to non-employee directors and certain key employees in foreign jurisdictions. RSU awards are not considered issued or outstanding common stock of the Company until they vest. As of December 31, 2019 and September 30, 2019, outstanding, unvested RSUs totaled 62,113 and 62,242, respectively. Compensation expense has been recognized for the estimated fair value of the common shares and is being charged to operating expenses over the vesting term. The estimated fair value of the RSUs was calculated based on the closing market price of Surmodics’ common stock on the grant date. The stock-based compensation table includes RSU expenses recognized related to these awards, which totaled $0.2 million and $0.1 million for the three months ended December 31, 2019 and 2018 , respectively Directors may elect to receive their annual fees for services to the Board in deferred stock units (“DSUs”). Directors may elect this option quarterly. During the three months ended December 31, 2019 and 2018, 823 and 751 units, respectively, were issued with a total fair value of less than $0.1 million in each period. As of December 31, 2019 and September 30, 2018, outstanding, fully vested DSUs totaled 30,552 and 29,729, respectively. Stock-based compensation expense related to DSU awards totaled less than $0.1 million for both the three months ended December 31, 2019 and 2018. |
Net Income Per Share Data
Net Income Per Share Data | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share Data | 12. Net Income Per Share Data Basic net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common and 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 and deferred stock units, as well as performance shares in years prior to fiscal 2020. Options to purchase shares of common stock as well as unvested restricted stock and performance stock units are considered to be potentially dilutive common shares. The calculation of weighted average diluted shares outstanding excludes outstanding stock options associated with the right to purchase 0.1 million shares of common stock for both the three months ended December 31, 2019 and 2018, as their inclusion would have had an antidilutive effect on diluted net income per share for those periods. 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, 2019 2018 Net income available to common shareholders $ 148 $ 1,310 Basic weighted average shares outstanding 13,469 13,367 Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units, deferred stock units and performance shares 300 460 Diluted weighted average shares outstanding 13,769 13,827 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, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes For interim income tax reporting, the Company estimates its annual effective tax rate and applies it to year-to-date pretax (loss) 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 benefit of $0.3 million and $0.2 million for the three months ended December 31, 2019 and 2018, respectively. The effective income tax rate for the three months ended December 31, 2019 and 2018 differs from the U.S. federal statutory tax rate of 21% primarily due to the favorable impacts of the U.S. federal research and development tax credits in both periods, as well as stock award activity in the three-month period and operating results of our Irish subsidiary, where tax benefit is offset by a valuation allowance. share awards vested, expired, cancelled and exercised The total amount of unrecognized tax benefits, excluding interest and penalties that, if recognized, would affect the effective tax rate is $2.7 million and $2.1 million as of December 31, 2019 and September 30, 2019, respectively. Interest and penalties related to unrecognized tax benefits are recorded in the income tax (benefit) 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 2015 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 2009. For tax returns for non-U.S. jurisdictions, the Company is no longer subject to income tax examination for years prior to 2014. 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, 2019 and September 30, 2019, there were no undistributed earnings in foreign subsidiaries. |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 14. Segment 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 designs, develops and manufactures interventional medical devices, primarily for the peripheral vascular market; surface modification coating technologies to improve access, deliverability, and predictable deployment of medical devices; as well as drug-delivery coating technologies to provide site-specific drug-delivery from the surface of a medical device, with end markets that include coronary, peripheral, neuro-vascular and urology, among others, and (2) the In Vitro Diagnostics unit, which consists of component products and technologies for diagnostic test kits and biomedical research applications, with products that include protein stabilization reagents, substrates, antigens and surface coatings. Segment revenue, operating (loss) income, and depreciation and amortization, were as follows: Three Months Ended December 31, (Dollars in thousands) 2019 2018 Revenue: Medical Device $ 17,404 $ 17,258 In Vitro Diagnostics 5,212 4,983 Total revenue $ 22,616 $ 22,241 Operating (loss) income: Medical Device $ (423 ) $ 357 In Vitro Diagnostics 2,599 2,455 Total segment operating income 2,176 2,812 Corporate (2,442 ) (2,100 ) Total operating (loss) income $ (266 ) $ 712 Depreciation and amortization: Medical Device $ 1,455 $ 1,388 In Vitro Diagnostics 110 116 Corporate 239 252 Total depreciation and amortization $ 1,804 $ 1,756 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 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. |
Leases
Leases | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 15. Leases The Company leases facilities for research, office, manufacturing and warehousing. The Company determines whether a contract is a lease or contains a lease at inception date. Upon commencement, the Company recognizes a right-of-use asset and lease liability based on the net present value of the future minimum lease payments over the lease term at the commencement date. The unamortized balance of leasehold improvement incentives in the form of tenant allowances represents the primary difference between the balance of the right-of-use assets and operating lease liabilities. As the Company’s leases typically do not provide an implicit rate, the Company’s lease liabilities are measured on a discounted basis using the Company's incremental borrowing rate. Lease terms used in the recognition of right-of-use assets and lease liabilities include only options to extend the lease that are reasonably certain to be exercised. The condensed consolidated balance sheets do not include recognized assets or liabilities for leases that, at the commencement date, have a term of twelve months or less and do not include an option to purchase the underlying asset that is reasonably certain to be exercised. The Company recognizes such leases in the condensed consolidated statements of income on a straight-line basis over the lease term. The Company’s leases include one or more options to renew and extend the lease term at the Company’s discretion. These renewal options are not included in our right-of-use assets and lease liabilities as they are not reasonably certain of exercise. We regularly evaluate the renewal options and when they are reasonably certain of exercise, we include the renewal period in our lease term. The Company's operating lease cost for the three months ended December 31, 2019 was $0.1 million. Cash paid for operating lease liabilities approximated operating lease cost for the three months ended December 31, 2019. Operating lease right-of-use assets and operating lease liabilities were as follows: December 31, (Dollars in thousands) 2019 Right-of-use assets Other assets $ 1,696 Operating lease liabilities: Other accrued liabilities $ 472 Other long-term liabilities 2,394 Total operating lease liabilities $ 2,866 As of December 31, 2019, operating lease maturities for the remainder of fiscal 2020 and each of the next five fiscal years are as follows (in thousands) Remainder of 2020 $ 376 2021 538 2022 536 2023 547 2024 558 2025 570 Thereafter 1,965 Total expected operating lease payments 5,090 Less: Imputed interest (2,224 ) Total operating lease liabilities $ 2,866 As of December 31, 2019, the weighted average remaining lease term for operating leases was 8.2 years and the weighted average discount rate used to determine operating lease liabilities was 4.6%. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. 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. InnoCore Technologies BV . In March 2006, the Company entered into a license agreement whereby the Company 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 $224,000 using a euro to US dollar exchange rate of $1.1215 to the Euro as of December 31, 2019) until the last patent expires, which is currently estimated to be September 2027. The total minimum future payments associated with this license are approximately $1.8 million as of December 31, 2019. The license is currently utilized by one of the Company’s drug delivery customers. Clinical Trials. The Company has engaged clinical trial clinical research organization (“CRO”) consultants to assist with the administration of its ongoing clinical trials. The Company has executed separate contracts with two CROs for services rendered in connection with the TRANSCEND pivotal clinical trial for the DCB, including pass-through expenses paid by the CROs, of up to $26 million in the aggregate. As of December 31, 2019, an estimated $11.9 million remains to be paid on these contracts, which may vary depending on actual pass-through expenses incurred to execute the trial. The Company estimates that the total cost of the TRANSCEND clinical trial will be in the range of $35 million to $40 million from inception to completion. 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 Asset Acquisitions. In July 2019, the Company acquired certain intellectual property assets supporting ongoing development of the Company’s medical device pipeline. As a result of this acquisition, the Company made an upfront, nonrefundable payment of $0.8 million. In addition, the Company is obligated to pay up to $1.3 million of additional consideration upon achievement of certain strategic milestones within a contingency period ending in 2022, of which $0.2 million is guaranteed to be paid in fiscal 2021. In May 2018, the Company acquired certain intellectual property assets of Embolitech, LLC (the “Embolitech Transaction”). As part of the Embolitech Transaction, the Company paid the sellers $5.0 million during fiscal 2018. Additionally, the Company is obligated to pay $3.5 million in several installments beginning in fiscal 2020 and ending in fiscal 2024. These payments may be accelerated upon the occurrence of certain sales and regulatory milestones. An additional $2.0 million payment is contingent upon the achievement of certain regulatory milestones within a contingency period ending in 2033. As of December 31, 2019, $1.2 million and $2.1 million, respectively, is included in other accrued and other long-term liabilities on the condensed consolidated balance sheets related to the Embolitech Transaction. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) ASU 2016-02, Leases ASC Topic 842” Effective October 1, 2019, the Company adopted the new lease accounting standard using the optional transition method which allowed us to continue to apply the guidance under the lease standard in effect at the time in the comparative periods presented. In addition, the Company elected the package of practical expedients, including opting not to reassess whether any existing contracts contain a lease, historical lease classification as operating or finance leases, or initial direct costs. The Company has also elected the practical expedient to not separate the lease and non-lease components for all classes of underlying assets. The Company elected the short-term lease recognition exemption for all leases that qualified and has accordingly excluded short-term leases from the recognition of right-of-use assets and lease liabilities. As a result of adoption of Accounting Standards Codification (“ASC”) Topic 842, we recorded operating lease right-of-use assets and corresponding operating lease liabilities of approximately $1.7 million and $2.9 million, respectively, as of October 1, 2019 with no impact on retained earnings. In addition, deferred rent liabilities related to escalating rent payments and tenant incentives totaling approximately $1.2 million were eliminated upon adoption, as these items are netted against right-of-use assets. The condensed consolidated balance sheets for reporting periods beginning on or after October 1, 2019 are presented under the new guidance, while prior period amounts are not adjusted and continue to be reported in accordance with previous guidance. Not Yet Adopted In June 2016, the FASB issued ASU No 2016-13, Financial Instruments – Credit Losses, 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. |
Leases | The Company leases facilities for research, office, manufacturing and warehousing. The Company determines whether a contract is a lease or contains a lease at inception date. Upon commencement, the Company recognizes a right-of-use asset and lease liability based on the net present value of the future minimum lease payments over the lease term at the commencement date. The unamortized balance of leasehold improvement incentives in the form of tenant allowances represents the primary difference between the balance of the right-of-use assets and operating lease liabilities. As the Company’s leases typically do not provide an implicit rate, the Company’s lease liabilities are measured on a discounted basis using the Company's incremental borrowing rate. Lease terms used in the recognition of right-of-use assets and lease liabilities include only options to extend the lease that are reasonably certain to be exercised. The condensed consolidated balance sheets do not include recognized assets or liabilities for leases that, at the commencement date, have a term of twelve months or less and do not include an option to purchase the underlying asset that is reasonably certain to be exercised. The Company recognizes such leases in the condensed consolidated statements of income on a straight-line basis over the lease term. The Company’s leases include one or more options to renew and extend the lease term at the Company’s discretion. These renewal options are not included in our right-of-use assets and lease liabilities as they are not reasonably certain of exercise. We regularly evaluate the renewal options and when they are reasonably certain of exercise, we include the renewal period in our lease term. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenues Disaggregated by Product Classification and Operating Segment | The following table presents our revenues disaggregated by product classification and by operating segment, excluding sales taxes collected and remitted to governmental authorities (in thousands, unaudited). Three Months Ended December 31, (Dollars in thousands) 2019 2018 Medical Device Product sales $ 5,023 $ 4,778 Royalties 8,898 7,685 Research, development and other 2,234 2,384 License fees 1,249 2,411 Total Revenue - Medical Device 17,404 17,258 IVD Product sales 4,952 4,973 Other 260 10 Total Revenue - IVD 5,212 4,983 Total Revenue $ 22,616 $ 22,241 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents information about the Company’s assets measured at fair value on a recurring basis as of December 31, 2019: (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, 2019 Assets Cash equivalents $ — $ 6,286 $ — $ 6,286 Available-for-sale securities — 39,256 — 39,256 Total assets $ — $ 45,542 $ — $ 45,542 The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2019: (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, 2019 Assets Cash equivalents $ — $ 24,375 $ — $ 24,375 Available-for-sale securities — 24,931 — $ 24,931 Total assets $ — $ 49,306 $ — $ 49,306 Liabilities Contingent consideration $ — $ — $ (3,200 ) $ (3,200 ) Total liabilities $ — $ — $ (3,200 ) $ (3,200 ) |
Schedule of Contingent Consideration Liabilities Measured at Fair Value | Changes in the contingent consideration liabilities measured at fair value using Level 3 inputs were as follows three months ended December 31, 2019 and 2018 Three Months Ended December 31, (Dollars in thousands) 2019 2018 Beginning balance $ 3,200 $ 14,466 Additions — — Fair value adjustments — (149 ) Settlements (3,200 ) (10,979 ) Interest accretion — 114 Foreign currency translation loss (gain) — (126 ) Ending balance $ — $ 3,326 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
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, 2019 (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper and corporate bonds $ 39,251 $ 5 $ — $ 39,256 Total $ 39,251 $ 5 $ — $ 39,256 September 30, 2019 (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper and corporate bonds $ 24,918 $ 13 $ — $ 24,931 Total $ 24,918 $ 13 $ — $ 24,931 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consisted of the following components: December 31, September 30, (Dollars in thousands) 2019 2019 Raw materials $ 2,409 $ 2,034 Work-in process 1,349 892 Finished products 1,193 1,575 Total $ 4,951 $ 4,501 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Investments All Other Investments [Abstract] | |
Summary of Other Assets | Other assets consisted of the following: December 31, September 30, (Dollars in thousands) 2019 2019 ViaCyte, Inc. $ 479 $ 479 Operating lease right-of-use assets 1,696 — Other noncurrent assets 1,950 1,645 Other assets $ 4,125 $ 2,124 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of the following: December 31, 2019 (Dollars in thousands) Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 8.9 $ 17,684 $ (11,177 ) $ 6,507 Developed technology 11.5 $ 9,562 $ (3,453 ) $ 6,109 Non-compete 5.0 $ 230 $ (207 ) $ 23 Patents and other 16.5 $ 2,321 $ (1,755 ) $ 566 Subtotal 29,797 (16,592 ) 13,205 Unamortized intangible assets: Trademarks and trade names 580 — 580 Total $ 30,377 $ (16,592 ) $ 13,785 September 30, 2019 (Dollars in thousands) Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 8.9 $ 17,374 $ (10,661 ) $ 6,713 Developed technology 11.5 9,490 (3,196 ) 6,294 Non-compete 5.0 230 (196 ) 34 Patents and other 16.5 2,321 (1,716 ) 605 Subtotal 29,415 (15,769 ) 13,646 Unamortized intangible assets: Trademarks and trade names 580 — 580 Total $ 29,995 $ (15,769 ) $ 14,226 |
Estimated Amortization Expense | Based on the intangible assets in service as of December 31, 2019, estimated amortization expense for the remainder of fiscal 2020 and each of the next five fiscal years is as follows (in thousands) Remainder of 2020 $ 1,799 2021 2,319 2022 2,279 2023 1,668 2024 1,610 2025 1,553 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Carrying Amount of Goodwill By Segment | Changes in the carrying amount of goodwill by segment were as follows: (Dollars in thousands) In Vitro Diagnostics Medical Device Total Balance as of September 30, 2019 $ 8,010 $ 18,161 $ 26,171 Currency translation adjustment — 375 375 Balance as of December 31, 2019 $ 8,010 $ 18,536 $ 26,546 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following: December 31, September 30, (Dollars in thousands) 2019 2019 Accrued professional fees $ 257 $ 434 Accrued clinical study expense 1,438 2,163 Accrued purchases 1,150 679 Acquisition of in process research and development 1,167 989 Current portion of lease liability 472 — Deferred rent — 130 Other 394 395 Total $ 4,878 $ 4,790 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Expenses | The Company’s stock-based compensation expenses were allocated to the following expense categories: Three Months Ended December 31, (Dollars in thousands) 2019 2018 Product costs $ 33 $ 32 Research and development 262 213 Selling, general and administrative 1,098 986 Total $ 1,393 $ 1,231 |
Assumptions Used in Stock Option Plans | Three Months Ended December 31, 2019 2018 Risk-free interest rates 1.6 % 2.9 % Expected life (years) 4.6 4.5 Expected volatility 37.8 % 33.2 % Dividend yield 0.0 % 0.0 % |
Net Income Per Share Data (Tabl
Net Income Per Share Data (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 Net income available to common shareholders $ 148 $ 1,310 Basic weighted average shares outstanding 13,469 13,367 Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units, deferred stock units and performance shares 300 460 Diluted weighted average shares outstanding 13,769 13,827 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Revenue, Operating (Loss) Income and Depreciation and Amortization | Segment revenue, operating (loss) income, and depreciation and amortization, were as follows: Three Months Ended December 31, (Dollars in thousands) 2019 2018 Revenue: Medical Device $ 17,404 $ 17,258 In Vitro Diagnostics 5,212 4,983 Total revenue $ 22,616 $ 22,241 Operating (loss) income: Medical Device $ (423 ) $ 357 In Vitro Diagnostics 2,599 2,455 Total segment operating income 2,176 2,812 Corporate (2,442 ) (2,100 ) Total operating (loss) income $ (266 ) $ 712 Depreciation and amortization: Medical Device $ 1,455 $ 1,388 In Vitro Diagnostics 110 116 Corporate 239 252 Total depreciation and amortization $ 1,804 $ 1,756 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Balance Sheet Classification and Amounts of Right-of-Use Assets and Lease Liabilities | Operating lease right-of-use assets and operating lease liabilities were as follows: December 31, (Dollars in thousands) 2019 Right-of-use assets Other assets $ 1,696 Operating lease liabilities: Other accrued liabilities $ 472 Other long-term liabilities 2,394 Total operating lease liabilities $ 2,866 |
Schedule of Operating Lease Maturities | As of December 31, 2019, operating lease maturities for the remainder of fiscal 2020 and each of the next five fiscal years are as follows (in thousands) Remainder of 2020 $ 376 2021 538 2022 536 2023 547 2024 558 2025 570 Thereafter 1,965 Total expected operating lease payments 5,090 Less: Imputed interest (2,224 ) Total operating lease liabilities $ 2,866 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Oct. 01, 2019 |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | ||
Operating lease right-of-use assets | $ 1,696 | $ 1,700 |
Operating lease liabilities | $ 2,866 | 2,900 |
Deferred rent liabilities | $ 1,200 |
Revenue - Summary of Revenues D
Revenue - Summary of Revenues Disaggregated by Product Classification and Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 22,616 | $ 22,241 |
Product Sales [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 9,974 | 9,751 |
Royalties [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 10,148 | 10,096 |
Research, Development and Other [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 2,494 | 2,394 |
Operating Segments [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 22,616 | 22,241 |
Operating Segments [Member] | Medical Device [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 17,404 | 17,258 |
Operating Segments [Member] | Medical Device [Member] | Product Sales [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 5,023 | 4,778 |
Operating Segments [Member] | Medical Device [Member] | Royalties [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 8,898 | 7,685 |
Operating Segments [Member] | Medical Device [Member] | Research, Development and Other [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 2,234 | 2,384 |
Operating Segments [Member] | Medical Device [Member] | License Fees [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 1,249 | 2,411 |
Operating Segments [Member] | In Vitro Diagnostics [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 5,212 | 4,983 |
Operating Segments [Member] | In Vitro Diagnostics [Member] | Product Sales [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 4,952 | 4,973 |
Operating Segments [Member] | In Vitro Diagnostics [Member] | Other [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 260 | $ 10 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - Abbott [Member] - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 $ in Millions | Dec. 31, 2019USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue to be recognized in future | $ 15.8 |
Expected period to recognize the remaining revenue | 6 years |
Collaborative Arrangement - Add
Collaborative Arrangement - Additional Information (Detail) - Abbott [Member] - USD ($) | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Upfront fee received | $ 25,000,000 | ||
Collaborative arrangement milestone payment received | 10,000,000 | ||
Collaboration revenue recognized | 1,300,000 | $ 2,400,000 | |
Upfront and milestone fee payment included in deferred revenue | 15,800,000 | $ 17,100,000 | |
Maximum [Member] | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Collaborative arrangement additional potential milestone payments receivable | $ 56,000,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Payment for contingent consideration liability, operating activities | $ 608,000 | $ 2,041,000 | |
Payment for contingent consideration liability, financing activities | 2,592,000 | $ 9,064,000 | |
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 | |
NorMedix [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Contingent consideration liability | 3,200,000 | ||
Payment for contingent consideration liability, operating activities | 600,000 | ||
Payment for contingent consideration liability, financing activities | $ 2,600,000 |
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, 2019 | Sep. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | $ 45,542 | $ 49,306 |
Liabilities measured at fair value | (3,200) | |
Available-for-sale securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 39,256 | 24,931 |
Cash equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 6,286 | 24,375 |
Contingent consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (3,200) | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets measured at fair value | 45,542 | 49,306 |
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 | 39,256 | 24,931 |
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 | $ 6,286 | 24,375 |
Level 3 Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (3,200) | |
Level 3 Liabilities [Member] | Contingent consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liabilities measured at fair value | $ (3,200) |
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, 2019 | Dec. 31, 2018 | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ 3,200 | $ 14,466 |
Fair value adjustments | (149) | |
Settlements | $ (3,200) | (10,979) |
Interest accretion | 114 | |
Foreign currency translation loss (gain) | (126) | |
Ending balance | $ 3,326 |
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, 2019 | Sep. 30, 2019 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 39,251 | $ 24,918 |
Unrealized Gains | 5 | 13 |
Fair Value | 39,256 | 24,931 |
Commercial paper and corporate bonds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 39,251 | 24,918 |
Unrealized Gains | 5 | 13 |
Fair Value | $ 39,256 | $ 24,931 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,409 | $ 2,034 |
Work-in process | 1,349 | 892 |
Finished products | 1,193 | 1,575 |
Total | $ 4,951 | $ 4,501 |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Schedule of Investments [Line Items] | ||
Other assets | $ 4,125 | $ 2,124 |
ViaCyte, Inc. [Member] | ||
Schedule of Investments [Line Items] | ||
Other assets | 479 | 479 |
Operating Lease Right-of-Use Assets [Member] | ||
Schedule of Investments [Line Items] | ||
Other assets | 1,696 | |
Other Noncurrent Assets [Member] | ||
Schedule of Investments [Line Items] | ||
Other assets | $ 1,950 | $ 1,645 |
Other Assets - Additional Infor
Other Assets - Additional Information (Detail) - ViaCyte, Inc. [Member] $ in Millions | 3 Months Ended |
Dec. 31, 2019USD ($) | |
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, 2019 | Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 0.7 | $ 0.7 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Sep. 30, 2019 | |
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Accumulated Amortization | $ (16,592) | $ (15,769) |
Intangible assets, Gross Carrying Amount | 30,377 | 29,995 |
Intangible assets, Net | $ 13,785 | $ 14,226 |
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 | $ 17,684 | $ 17,374 |
Definite-lived intangible assets, Accumulated Amortization | (11,177) | (10,661) |
Definite-lived intangible assets, Net | $ 6,507 | $ 6,713 |
Developed Technology [Member] | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Weighted Average Original Life (Years) | 11 years 6 months | 11 years 6 months |
Definite-lived intangible assets, Gross Carrying Amount | $ 9,562 | $ 9,490 |
Definite-lived intangible assets, Accumulated Amortization | (3,453) | (3,196) |
Definite-lived intangible assets, Net | $ 6,109 | $ 6,294 |
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 | (207) | (196) |
Definite-lived intangible assets, Net | $ 23 | $ 34 |
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 | (1,755) | (1,716) |
Definite-lived intangible assets, Net | 566 | 605 |
Definite-Lived Intangible Assets [Member] | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross Carrying Amount | 29,797 | 29,415 |
Definite-lived intangible assets, Accumulated Amortization | (16,592) | (15,769) |
Definite-lived intangible assets, Net | 13,205 | 13,646 |
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, 2019USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Remainder of 2020 | $ 1,799 |
2021 | 2,319 |
2022 | 2,279 |
2023 | 1,668 |
2024 | 1,610 |
2025 | $ 1,553 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 26,546 | $ 26,171 |
Goodwill - Schedule of Carrying
Goodwill - Schedule of Carrying Amount of Goodwill by Segment (Detail) $ in Thousands | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Goodwill [Line Items] | |
Balance as of September 30, 2019 | $ 26,171 |
Currency translation adjustment | 375 |
Balance as of December 31, 2019 | 26,546 |
In Vitro Diagnostics [Member] | |
Goodwill [Line Items] | |
Balance as of September 30, 2019 | 8,010 |
Balance as of December 31, 2019 | 8,010 |
Medical Device [Member] | |
Goodwill [Line Items] | |
Balance as of September 30, 2019 | 18,161 |
Currency translation adjustment | 375 |
Balance as of December 31, 2019 | $ 18,536 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Accrued Liabilities Current [Abstract] | ||
Accrued professional fees | $ 257 | $ 434 |
Accrued clinical study expense | 1,438 | 2,163 |
Accrued purchases | 1,150 | 679 |
Acquisition of in process research and development | 1,167 | 989 |
Current portion of lease liability | 472 | |
Deferred rent | 130 | |
Other | 394 | 395 |
Total | $ 4,878 | $ 4,790 |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock-based Compensation Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 1,393 | $ 1,231 |
Product costs [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 33 | 32 |
Research and development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 262 | 213 |
Selling, general and administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 1,098 | $ 986 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | |
Stock-Based Compensation Activity [Line Items] | |||||
Unrecognized compensation costs related to non-vested awards | $ 10,500,000 | ||||
Weighted average period for recognition of compensation costs related to non-vested awards | 2 years 8 months 12 days | ||||
Weighted average per share fair value of stock options | $ 14.38 | $ 18.30 | |||
Dividend yield | 0.00% | 0.00% | |||
Stock-based compensation | $ 1,393,000 | $ 1,231,000 | |||
Total pre-tax intrinsic value of options exercised | $ 200,000 | 100,000 | |||
Fiscal 2017 (2017 - 2019) [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Performance period start year | 2017 | ||||
Performance period end year | 2019 | ||||
Nonqualified Stock Options [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Stock-based compensation | $ 600,000 | 500,000 | |||
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] | |||||
Vesting period | 1 year | ||||
Restricted Stock Awards [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Stock-based compensation | $ 500,000 | $ 400,000 | |||
Number of stock units awarded | 54,694 | 42,248 | |||
Number of stock units forfeited | 4,099 | 507 | |||
Number of stock units outstanding | 99,500 | 90,409 | |||
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] | |||||
Vesting period | 3 years | ||||
Stock-based compensation | $ 200,000 | ||||
Issuance of common stock, shares | 67,653 | ||||
Issuance of common stock | $ 2,800,000 | ||||
Performance Shares [Member] | Fiscal 2017 (2017 - 2019) [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Fair value of stock units granted | $ 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] | |||||
Stock-based compensation | $ 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] | |||||
Stock-based compensation | $ 200,000 | $ 100,000 | |||
Number of stock units awarded | 8,032 | 6,206 | |||
Number of stock units outstanding | 62,113 | 62,242 | |||
Deferred Stock Units [Member] | 2009 Equity Incentive Plan [Member] | Director [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Stock-based compensation | $ 100,000 | $ 100,000 | |||
Number of stock units awarded | 823 | 751 | |||
Number of stock units outstanding | 30,552 | 29,729 | |||
Deferred Stock Units [Member] | Maximum [Member] | 2009 Equity Incentive Plan [Member] | Director [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Fair value of stock units granted | $ 100,000 | $ 100,000 | |||
Vesting Anniversary [Member] | Nonqualified Stock Options [Member] | Employee [Member] | |||||
Stock-Based Compensation Activity [Line Items] | |||||
Vesting percentage | 25.00% |
Stock-based Compensation - Assu
Stock-based Compensation - Assumptions Used in Stock Option Plans (Detail) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Risk-free interest rates | 1.60% | 2.90% |
Expected life (years) | 4 years 7 months 6 days | 4 years 6 months |
Expected volatility | 37.80% | 33.20% |
Dividend yield | 0.00% | 0.00% |
Net Income Per Share Data - Add
Net Income Per Share Data - Additional Information (Detail) - USD ($) shares in Millions | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Nov. 05, 2014 | |
Earnings Loss Per Share [Line Items] | |||
Anti-dilutive outstanding stock options | 0.1 | 0.1 | |
Accelerated Share Repurchase Program [Member] | |||
Earnings Loss Per Share [Line Items] | |||
Maximum payments for repurchase of common stock | $ 25,300,000 |
Net Income Per Share Data - Den
Net Income Per Share Data - Denominator for Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income available to common shareholders | $ 148 | $ 1,310 |
Basic weighted average shares outstanding | 13,469 | 13,367 |
Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units, deferred stock units and performance shares | 300 | 460 |
Diluted weighted average shares outstanding | 13,769 | 13,827 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax benefit | $ 250,000 | $ 176,000 | |
U.S. federal statutory tax rate | 21.00% | 21.00% | |
Discrete tax benefit | $ 200,000 | $ 500,000 | |
Unrecognized tax benefits excluding interest and penalties that would impact effective tax rate | 2,700,000 | $ 2,100,000 | |
Undistributed earnings in foreign subsidiaries | $ 0 | $ 0 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Dec. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment Information - Segment R
Segment Information - Segment Revenue, Operating (Loss) Income and Depreciation and Amortization (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 22,616 | $ 22,241 |
Operating (loss) income | (266) | 712 |
Depreciation and amortization | 1,804 | 1,756 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 22,616 | 22,241 |
Operating (loss) income | 2,176 | 2,812 |
Operating Segments [Member] | Medical Device [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 17,404 | 17,258 |
Operating (loss) income | (423) | 357 |
Depreciation and amortization | 1,455 | 1,388 |
Operating Segments [Member] | In Vitro Diagnostics [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 5,212 | 4,983 |
Operating (loss) income | 2,599 | 2,455 |
Depreciation and amortization | 110 | 116 |
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating (loss) income | (2,442) | (2,100) |
Depreciation and amortization | $ 239 | $ 252 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Lease description | The Company leases facilities for research, office, manufacturing and warehousing. |
Lease, existence of option to extend | true |
Lease, option to extend | The Company’s leases include one or more options to renew and extend the lease term at the Company’s discretion. These renewal options are not included in our right-of-use assets and lease liabilities as they are not reasonably certain of exercise. |
Operating lease cost | $ 0.1 |
Weighted average remaining lease term for operating leases | 8 years 2 months 12 days |
Weighted average discount rate used to determine operating lease liabilities | 4.60% |
Leases - Balance Sheet Classifi
Leases - Balance Sheet Classification and Amounts of Right-of-Use Assets and Lease Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Oct. 01, 2019 |
Right-of-use assets | ||
Other assets | $ 1,696 | $ 1,700 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | |
Operating lease liabilities: | ||
Other accrued liabilities | $ 472 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherAccruedLiabilitiesCurrent | |
Other long-term liabilities | $ 2,394 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | |
Total operating lease liabilities | $ 2,866 | $ 2,900 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Maturities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Oct. 01, 2019 |
Operating Lease Liabilities Payments Due [Abstract] | ||
Remainder of 2020 | $ 376 | |
2021 | 538 | |
2022 | 536 | |
2023 | 547 | |
2024 | 558 | |
2025 | 570 | |
Thereafter | 1,965 | |
Total expected operating lease payments | 5,090 | |
Less: Imputed interest | (2,224) | |
Total operating lease liabilities | $ 2,866 | $ 2,900 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 60 Months Ended | ||
Jul. 31, 2019USD ($) | Dec. 31, 2019USD ($)€ / $ | Dec. 31, 2019EUR (€) | Sep. 30, 2018USD ($) | Sep. 30, 2024USD ($) | Sep. 30, 2019USD ($) | |
Commitments And Contingencies [Line Items] | ||||||
Exchange rate relating to license payment | € / $ | 1.1215 | |||||
Other long-term liabilities | $ 6,634,000 | $ 5,512,000 | ||||
Embolitech LLC [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Contingent payments upon achievement of regulatory milestones | $ 2,000,000 | |||||
Installment payment beginning period | 2020 | 2020 | ||||
Installment payment ending period | 2024 | 2024 | ||||
CRO [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Contractual obligation to be paid | $ 11,900,000 | |||||
CRO [Member] | Maximum [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Contractual obligations | 26,000,000 | |||||
Contractual obligation due in next several years | 40,000,000 | |||||
CRO [Member] | Minimum [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Contractual obligation due in next several years | $ 35,000,000 | |||||
License [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
License agreement commencement date | 2006-03 | 2006-03 | ||||
Annual minimum payments for licenses | $ 224,000 | € 200,000 | ||||
Future minimum payments associated with license | $ 1,800,000 | |||||
Patents [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Patent expiry date | 2027-09 | 2027-09 | ||||
Intellectual Property [Member] | Medical Device [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Payments to acquire intellectual property assets | $ 800,000 | |||||
Contingent payments upon achievement of regulatory milestones | $ 1,300,000 | |||||
Contingency period ending year | 2022 | |||||
Estimated additional payment to acquire intellectual property assets | $ 200,000 | |||||
Intellectual Property [Member] | Embolitech LLC [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Payments to acquire intellectual property assets | $ 5,000,000 | |||||
Contingency period ending year | 2033 | 2033 | ||||
Other accrued liabilities noncurrent | $ 1,200,000 | 1,000,000 | ||||
Other long-term liabilities | $ 2,100,000 | $ 2,100,000 | ||||
Intellectual Property [Member] | Embolitech LLC [Member] | Scenario Forecast [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Estimated additional payment to acquire intellectual property assets | $ 3,500,000 |