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Document and Entity Information - $ / shares	9 Months Ended
Document and Entity Information - $ / shares	Jun. 30, 2012	Aug. 01, 2012	Sep. 30, 2011
Document and Entity Information [Abstract]
Entity Registrant Name	SURMODICS INC
Entity Central Index Key	0000924717
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Common stock, par value	$ 0.05	$ 0.05	$ 0.05
Entity Common Stock, Shares Outstanding		17,544,156

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2012	Sep. 30, 2011
Current Assets:
Cash and cash equivalents	$ 65,868	$ 23,217
Available-for-sale securities	13,519	12,196
Held-to-maturity securities		3,030
Accounts receivable, net of allowance for doubtful accounts of $45 and $32 as of June 30, 2012 and September 30, 2011, respectively	5,177	4,385
Inventories	3,263	3,181
Deferred tax assets	312	142
Prepaids and other	1,560	2,268
Current assets of discontinued operations	1,130	5,983
Total Current Assets	90,829	54,402
Property and equipment, net	13,214	14,586
Available-for-sale securities	28,801	29,754
Deferred tax assets	9,215	9,017
Intangible assets, net	4,616	5,199
Goodwill	8,010	8,010
Other assets, net	2,990	3,303
Non-current assets of discontinued operations		32,511
Total Assets	157,675	156,782
Current Liabilities:
Accounts payable	740	1,572
Accrued liabilities:
Compensation	1,822	1,952
Accrued other	829	1,241
Deferred revenue	49	53
Other current liabilities	317	873
Current liabilities of discontinued operations	1,716	5,349
Total Current Liabilities	5,473	11,040
Deferred revenue, less current portion	196	222
Other long-term liabilities	2,355	2,421
Non-current liabilities of discontinued operations		3,491
Total Liabilities	8,024	17,174
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; 00,000,000 and 17,531,408 shares issued and outstanding	877	877
Additional paid-in capital	76,749	74,490
Accumulated other comprehensive income (loss)	139	(153)
Retained earnings	71,886	64,394
Total Stockholders' Equity	149,651	139,608
Total Liabilities and Stockholders' Equity	$ 157,675	$ 156,782

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2012	Sep. 30, 2011
Condensed Consolidated Balance Sheets [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 45	$ 32
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	17,544,463	17,544,463
Common stock, shares outstanding	17,531,408	17,531,408

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenue:
Royalties and license fees	$ 7,104	$ 7,478	$ 19,997	$ 22,638
Product sales	5,748	4,966	15,449	14,543
Research and development	1,107	555	2,639	1,674
Total revenue	13,959	12,999	38,085	38,855
Operating costs and expenses:
Product costs	2,251	1,302	5,456	4,714
Research and development	3,503	3,907	10,653	10,212
Selling, general and administrative	3,412	3,533	10,272	10,730
Restructuring charges	0	0	0	609
Total operating costs and expenses	9,166	8,742	26,381	26,265
Operating income from continuing operations	4,793	4,257	11,704	12,590
Other income (loss) :
Investment income, net	137	147	418	498
Impairment loss on investment			(804)
Other income, net	2	171	172	379
Other income (loss)	139	318	(214)	877
Income from continuing operations before income taxes	4,932	4,575	11,490	13,467
Income tax provision	(1,758)	(1,524)	(4,215)	(4,732)
Income from continuing operations	3,174	3,051	7,275	8,735
Discontinued operations:
(Loss) Income from discontinued operations, net of income taxes	(30)	791	1,231	(8,576)
Loss on sale of discontinued operations, net of income taxes	(82)		(1,015)
(Loss) income from discontinued operations	(112)	791	216	(8,576)
Net income	$ 3,062	$ 3,842	$ 7,491	$ 159
Basic income (loss) per share:
Continuing operations	$ 0.18	$ 0.17	$ 0.42	$ 0.50
Discontinued operations	(0.01)	0.05	0.01	(0.49)
Net income	0.17	0.22	0.43	0.01
Diluted income (loss) per share:
Continuing operations		0.17	0.41	0.50
Discontinued operations	(0.01)	0.05	0.01	(0.49)
Net income	$ 0.17	$ 0.22	$ 0.43	$ 0.01
Weighted average number of shares outstanding:
Basic	17,528	17,437	17,505	17,409
Diluted	17,647	17,529	17,593	17,456

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Operating Activities:
Net income	$ 7,491	$ 159
Adjustments to reconcile net income (loss) to net cash provided by operating activities from continuing operations:
Income (loss) from discontinued operations, net of income taxes	(1,231)	8,576
Loss on sale of discontinued operations	1,015
Depreciation and amortization	2,214	2,393
Gain on sale of investments	(172)	(380)
Amortization of premium on held-to-maturity securities	31	72
Impairment loss on investment	804
Stock-based compensation	2,189	2,791
Deferred taxes	(548)	(229)
Other	48	13
Change in operating assets and liabilities:
Accounts receivable	(793)	682
Inventories	(82)	(700)
Accounts payable and accrued liabilities	(3,445)	(1,321)
Income taxes	4,632	4,651
Deferred revenue	(30)	429
Prepaids and other	(138)	54
Net cash provided by operating activities from continuing operations	11,985	17,190
Investing Activities:
Purchases of property and equipment	(429)	(1,387)
Purchases of available-for-sale securities	(35,420)	(48,309)
Sales and maturities of available-for-sale securities	35,203	47,827
Maturities of held-to-maturity securities	3,000	1,000
Payments related to a prior business acquisition		(5,650)
Cash received from (transferred to) discontinued operations	28,304	(4,102)
Net cash provided by (used in) investing activities from continuing operations	30,658	(10,621)
Financing Activities:
Issuance of common stock	280	487
Purchase of common stock to pay employee taxes	(272)	(10)
Net cash provided by financing activities from continuing operations	8	477
Net cash provided by continuing operations	42,651	7,046
Discontinued Operations:
Net cash used in operating activities	(1,513)	(2,170)
Net cash (used in) provided by investing activities	29,817	(1,892)
Net cash (used in) provided by financing activities	(28,304)	4,062
Net cash (used in) provided by discontinued operations	(606)	1,027
Net change in cash and cash equivalents	42,651	7,046
Cash and Cash Equivalents:
Beginning of period	23,217	11,391
End of period	65,868	18,437
Supplemental Information:
Cash paid (received) for income taxes	389	(398)
Noncash transaction - acquisition of property and equipment on account	$ 8	$ 104

Basis of Presentation

9 Months Ended

Jun. 30, 2012

Basis of Presentation [Abstract]

Basis of Presentation

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 solely of normal recurring adjustments, needed to fairly present the financial results of SurModics, Inc. and subsidiaries (“SurModics” or the “Company”) for the periods presented. These financial statements include some amounts that are based on management’s best estimates and judgments. These estimates may be adjusted as more information becomes available, and any adjustment could be significant. The impact of any change in estimates is included in the determination of earnings in the period in which the change in estimate is identified. The results of operations for the three and nine months ended June 30, 2012 are not necessarily indicative of the results that may be expected for the entire 2012 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 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, 2011, and footnotes thereto included in the Company’s Form 10-K/A as filed with the SEC on February 14, 2012.

Certain items in the condensed consolidated financial statements for the three and nine months ended June 30, 2011, and assets and liabilities as of September 30, 2011, have been reclassified to conform to the current period presentation. As discussed in Note 3, the results of operations, assets and liabilities of SurModics Pharmaceuticals, Inc. (“SurModics Pharmaceuticals”) have been accounted for as discontinued operations for all periods presented. Accordingly, the results of operations, cash flows, assets and liabilities of SurModics Pharmaceuticals for prior periods have been reclassified to discontinued operations. In addition, footnote disclosures have also been modified to conform to the current period presentation as appropriate.

Changes to Condensed Consolidated Statements of Income

Beginning with the Form 10-Q for the first quarter of fiscal 2012, the Company changed the format of the condensed consolidated statements of income for reporting cost of revenue associated with research and development revenue. The change in format combines customer research and development expenses with other research and development expenses into the research and development expense category. Previously the research and development revenue exceeded ten percent of total revenue and as such Regulation S-X Rule 5-03 required presentation of an associated cost of revenue. With the presentation of the Pharmaceuticals segment as discontinued operations, the research and development revenue no longer exceeds ten percent of total revenue and as such there is no requirement to disclose a corresponding cost. All prior periods have been reclassified to present results following this new format.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

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+ Details

Key Accounting Policies

9 Months Ended

Jun. 30, 2012

Key Accounting Policies [Abstract]

Key Accounting Policies

Key Accounting Policies

Revenue recognition

The Company recognizes revenue when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) shipment has occurred or delivery has occurred if the terms specify destination; (3) the sales price is fixed or determinable; and (4) collectability is reasonably assured. When there are additional performance requirements, revenue is recognized when all such requirements have been satisfied. Under revenue arrangements with multiple deliverables, the Company recognizes each separable deliverable as it is earned.

The Company’s revenue is derived from three primary sources: (1) royalties and license fees from licensing its proprietary drug delivery and surface modification technologies to customers; (2) the sale of polymers and reagent chemicals, stabilization products, antigens, substrates and microarray slides to the diagnostics and biomedical research industries; and (3) research and development fees generated on customer projects.

Royalties and license fees. The Company licenses technology to third parties and collects royalties. Royalty revenue is generated when a customer sells products incorporating the Company’s licensed technologies. Royalty revenue is recognized as licensees report it to the Company, and payment is typically submitted concurrently with the report. For stand-alone license agreements, up-front license fees are recognized over the term of the related licensing agreement. Minimum royalty fees are recognized in the period earned.

Revenue related to a performance milestone is recognized upon the achievement of the milestone, as defined in the respective agreements and provided the following conditions have been met:

•

The milestone payment is non-refundable;

•

The milestone involved a significant degree of risk, and was not reasonably assured at the inception of the arrangement;

•

Accomplishment of the milestone involved substantial effort;

•

The amount of the milestone payment is commensurate with the related effort and risk; and

•

A reasonable amount of time passed between the initial license payment and the first and subsequent milestone payments.

If these conditions have not been met, the milestone payment is deferred and recognized over the term of the agreement.

Product sales. Product sales to third parties are recognized at the time of shipment, provided that an order has been received, the price is fixed or determinable, collectability of the resulting receivable is reasonably assured and returns can be reasonably estimated. The Company’s sales terms provide no right of return outside of the standard warranty policy. Payment terms are generally set at 30-45 days.

Research and development. The Company performs third party research and development activities, which are typically provided on a time and materials basis. Generally, revenue for research and development is recorded as performance progresses under the applicable contract.

New Accounting Pronouncements

In June 2011, the Financial Accounting Standards Board (“FASB”) issued changes to the presentation of comprehensive income. The FASB subsequently deferred the effective date of certain provisions of this standard pertaining to the reclassification of items out of accumulated other comprehensive income, pending the issuance of further guidance on that matter. These changes give an entity the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements and, the option to present components of other comprehensive income as part of the statement of changes in stockholders’ equity was eliminated. The items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income were not changed. Additionally, no changes were made to the calculation and presentation of earnings per share. These changes become effective for the Company on October 1, 2012 (fiscal 2013). Management is currently evaluating these changes to determine which option will be chosen for the presentation of comprehensive income. Other than the change in presentation, management has determined these changes will not have an impact on the consolidated financial statements.

No other new accounting pronouncement issued or effective has had, or is expected to have, a material impact on the Company’s consolidated financial statements.

Discontinued Operations

9 Months Ended

Jun. 30, 2012

Discontinued Operations [Abstract]

Discontinued Operations

Discontinued Operations

On November 1, 2011, the Company entered into a definitive agreement (the “Purchase Agreement”) to sell substantially all of the assets of its wholly-owned subsidiary, SurModics Pharmaceuticals, to Evonik Degussa Corporation (“Evonik”). Under the terms of the Purchase Agreement, the entire portfolio of products and services of SurModics Pharmaceuticals, including the Company’s Current Good Manufacturing Practices (“cGMP”) development and manufacturing facility located in Birmingham, Alabama, were sold. The Company retained all accounts receivable and certain liabilities associated with the SurModics Pharmaceuticals business incurred prior to closing. The sale (the “Pharma Sale”) closed on November 17, 2011. The total consideration received from the Pharma Sale was $30.0 million in cash.

As part of the Pharma Sale, the Company recorded a loss on the sale in the first nine months of fiscal 2012 of $1.7 million ($1.0 million net of income tax benefit), including transaction costs of $1.7 million. The loss is included in “Loss on sale of discontinued operations” in the condensed consolidated statements of income.

In the fourth quarter of fiscal 2011, the Company recognized asset impairment charges totaling $28.1 million. The Company wrote down long-lived assets (fixed assets of $23.3 million and intangibles of $4.8 million), associated with its Pharmaceuticals segment, based on the valuation of the assets relative to their carrying value. The Company had been exploring strategic alternatives for the Pharmaceuticals segment, including a potential sale. The assets of the Pharmaceuticals segment did not qualify as held-for-sale as of September 30, 2011, because the Company had not committed to a plan to sell at that time.

As part of the Pharma Sale, SurModics agreed not to compete in the restricted business (as defined in the Purchase Agreement) for a period of five years and to indemnify Evonik against specified losses in connection with the SurModics Pharmaceuticals business, including, for a period of five years, certain contingent consideration obligations related to the acquisition by SurModics Pharmaceuticals of the portfolio of intellectual property and drug delivery projects from PR Pharmaceuticals, Inc. SurModics also retained responsibility for repayment obligations related to an agreement with various governmental authorities associated with creation of jobs in Alabama. The foregoing summary of the Purchase Agreement is qualified in its entirety by reference to the full text of the Purchase Agreement, which is attached as Exhibit 2.1 to the Company’s Current Report on Form 8-K filed on November 7, 2011. Refer to the Purchase Agreement for more details on the Pharma Sale.

All results of operations, cash flows, assets and liabilities of SurModics Pharmaceuticals for all periods presented are classified as discontinued operations, and the condensed consolidated financial statements, including the notes, have been reclassified to reflect such segregation for all periods presented. Prior to reclassification, the discontinued operations were reported in the Pharmaceuticals segment as a separate operating segment. The summary of operating results from discontinued operations is as follows (in thousands):


	Three months ended						Nine months ended
	June 30,						June 30,
	2012			2011			2012			2011
Total revenue	$	—		$	4,970		$	5,311		$	11,823


(Loss) income from discontinued operations	$	—		$	(810	)	$	2,309		$	(12,699	)
Income tax (provision) benefit		(30	)		1,601			(1,078	)		4,123

(Loss) income from discontinued operations, net of income taxes	$	(30	)	$	791		$	1,231		$	(8,576	)


Loss on sale of discontinued operations	$	(57	)	$	—		$	(1,691	)	$	—
Income tax (provision) benefit		(25	)		—			676			—

Loss on sale of discontinued operations, net of income taxes	$	(82	)	$	—		$	(1,015	)	$	—

The major classes of assets and liabilities of discontinued operations as of June 30, 2012 and September 30, 2011 were as follows (in thousands):


	June 30,		September 30,
	2012		2011
Accounts receivable, net	$	358	$	3,309
Inventories		—		969
Other current assets		772		1,705

Current assets of discontinued operations		1,130		5,983

Property and equipment, net		—		24,911
Intangible assets, net		—		3,683
Other assets, net		—		3,917

Total assets of discontinued operations	$	1,130	$	38,494


Accounts payable	$	—	$	849
Accrued liabilities – compensation		—		1,522
Deferred revenue		—		550
Other current liabilities		1,716		2,428

Current liabilities of discontinued operations		1,716		5,349
Deferred revenue, less current portion		—		3,371
Other long-term liabilities		—		120

Total liabilities of discontinued operations	$	1,716	$	8,840

The assets and liabilities of discontinued operations as of June 30, 2012 are mainly associated with accounts receivable not purchased by Evonik, deferred tax assets and a retained liability of $1.7 million associated with financial incentives SurModics Pharmaceuticals received from various Alabama governmental authorities related to creation of jobs in Alabama. See also Note 16 for further discussion of the Alabama jobs commitment liability.

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

+ References

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+ Details

Fair Value Measurements

9 Months Ended

Jun. 30, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

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’s Level 1 asset consists of its investment in OctoPlus, N.V. (“OctoPlus”) (see Note 7 for further information). The fair market value of this investment is based on the quoted price of OctoPlus shares as traded on the Euronext Amsterdam Stock Exchange.

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 consist of money market funds, U.S. Treasury securities, corporate bonds, municipal bonds, U.S. government agency securities, government agency and municipal securities and certain asset-backed and mortgage-backed securities. Fair market values for these assets are based on quoted vendor prices and broker pricing where all significant inputs are observable.

Level 3 - Unobservable inputs to the valuation methodology that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation.

Level 3 assets can include asset-backed and mortgage-backed securities. When applicable, the fair market values of these investments are determined by broker pricing where not all significant inputs are observable. There were no Level 3 assets at March 31, 2011, June 30, 2011, March 31, 2012 or June 30, 2012 and there was no Level 3 activity during the third quarter of fiscal 2012 or fiscal 2011.

In valuing assets and liabilities, the Company is required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The Company did not significantly change its valuation techniques from prior periods.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

In instances where the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2012 (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 June 30, 2012
Assets:
Cash equivalents	$	—	$	14,601	$	—	$	14,601
Available-for-sale debt securities:
U.S. government and government agency obligations		—		32,774		—		32,774
Mortgage-backed securities		—		3,305		—		3,305
Municipal bonds		—		3,212		—		3,212
Asset-backed securities		—		910		—		910
Corporate bonds		—		2,119		—		2,119
Other assets		877		—		—		877

Total assets measured at fair value	$	877	$	56,921	$	—	$	57,798

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2011 (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, 2011
Assets:
Cash equivalents	$	—	$	8,419	$	—	$	8,419
Available-for-sale debt securities:
U.S. government and government agency obligations		—		30,603		—		30,603
Mortgage-backed securities		—		3,933		15		3,948
Municipal bonds		—		3,614		—		3,614
Asset-backed securities		—		1,279		9		1,288
Corporate bonds		—		2,497		—		2,497
Other assets		1,190		—		—		1,190

Total assets measured at fair value	$	1,190	$	50,345	$	24	$	51,559

Changes in Level 3 Instruments Measured at Fair Value on a Recurring Basis

The following tables provide a reconciliation of financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands). Transfers of instruments into and out of Level 3 are based on beginning of period values.


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Nine Months Ended June 30, 2012 Available-for-Sale Debt Securities
	Mortgage- Backed Securities			Asset- Backed Securities			Total
Balance at September 30, 2011	$	15		$	9		$	24
Transfers into Level 3		—			—			—
Transfers out of Level 3		(15	)		(9	)		(24	)
Total realized and unrealized gains (losses):
Included in other comprehensive (loss) income		—			—			—
Purchases		—			—			—
Issuances		—			—			—
Sales		—			—			—
Settlements		—			—			—

Balance at June 30, 2012	$	—		$	—		$	—


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Nine Months Ended June 30, 2011 Available-for-Sale Debt Securities
	U.S. Government Obligations			Mortgage- Backed Securities			Total
Balance at September 30, 2010	$	704		$	69		$	773
Transfers into Level 3		—			—			—
Transfers out of Level 3		(695	)		(68	)		(763	)
Total realized and unrealized gains (losses):
Included in other comprehensive (loss) income		19			(1	)		18
Purchases		—			620			620
Issuances		—			—			—
Sales		(28	)		(620	)		(648	)
Settlements		—			—			—

Balance at June 30, 2011	$	—		$	—		$	—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Investments

9 Months Ended

Jun. 30, 2012

Investments [Abstract]

Investments

Investments

Investments consist principally of U.S. government and government agency obligations and mortgage-backed securities and are classified as available-for-sale or held-to-maturity at June 30, 2012 and September 30, 2011. Available-for-sale securities are reported at fair value with unrealized gains and losses net of tax excluded from operations and reported as a separate component of stockholders’ equity, except for other-than-temporary impairments, which are reported as a charge to current operations. A loss would be recognized when there is an other-than-temporary impairment in the fair value of any individual security classified as available-for-sale, with the associated net unrealized loss reclassified out of accumulated other comprehensive income with a corresponding adjustment to other income. This adjustment results in a new cost basis for the investment. Investments that management has the intent and ability to hold to maturity are classified as held-to-maturity and reported at amortized cost. When an other-than-temporary impairment in the fair value of any individual security classified as held-to-maturity occurs, the Company writes down the security to fair value with a corresponding adjustment to other income. Interest on debt securities, including amortization of premiums and accretion of discounts, is included in other income. Realized gains and losses from the sales of debt securities, which are included in other income, are determined using the specific identification method.

The original cost, unrealized holding gains and losses, and fair value of available-for-sale securities as of June 30, 2012 and September 30, 2011 were as follows (in thousands):


	June 30, 2012
	Original Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and government agency obligations	$	32,614	$	161	$	(1	)	$	32,774
Mortgage-backed securities		3,212		129		(36	)		3,305
Municipal bonds		3,183		30		(1	)		3,212
Asset-backed securities		955		1		(46	)		910
Corporate bonds		2,100		22		(3	)		2,119

Total	$	42,064	$	343	$	(87	)	$	42,320


	September 30, 2011
	Original Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and government agency obligations	$	30,433	$	176	$	(6	)	$	30,603
Mortgage-backed securities		3,871		131		(54	)		3,948
Municipal bonds		3,561		53		—			3,614
Asset-backed securities		1,336		1		(49	)		1,288
Corporate bonds		2,474		32		(9	)		2,497

Total	$	41,675	$	393	$	(118	)	$	41,950

The original cost and fair value of investments by contractual maturity at June 30, 2012 were as follows (in thousands):


	Amortized Cost		Fair Value
Debt securities due within:
One year	$	13,509	$	13,519
One to five years		24,346		24,545
Five years or more		4,209		4,256

Total	$	42,064	$	42,320

The following table summarizes sales of available-for-sale securities (in thousands):


	Three months ended June 30,					Nine months ended June 30,
	2012			2011		2012			2011
Proceeds from sales	$	649		$	23,247	$	35,203		$	47,827
Gross realized gains	$	3		$	171	$	174		$	383
Gross realized losses	$	(1	)	$	—	$	(2	)	$	(4	)

During the second quarter of fiscal 2012, all remaining held-to-maturity debt securities matured. Therefore, there were no held-to-maturity debt securities at June 30, 2012. At September 30, 2011, the amortized cost and fair market value of held-to-maturity debt securities were $3.0 million and $3.1 million, respectively.

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-Glossary Debt Security
-URI http://asc.fasb.org/extlink&oid=6509901

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=6511694

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Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Inventories

9 Months Ended

Jun. 30, 2012

Inventories [Abstract]

Inventories

Inventories

Inventories are principally stated at the lower of cost or market using the specific identification method and include direct labor, materials and overhead. Inventories consisted of the following components (in thousands):


	June 30,		September 30,
	2012		2011
Raw materials	$	1,285	$	1,218
Finished products		1,978		1,963

Total	$	3,263	$	3,181

Other Assets

9 Months Ended

Jun. 30, 2012

Other Assets [Abstract]

Other Assets

Other Assets

Other assets consist principally of strategic investments as follows (in thousands):


	June 30,		September 30,
	2012		2011
Investment in OctoPlus N.V.	$	877	$	1,190
Investment in Nexeon MedSystems		285		285
Investment in ThermopeutiX		1,185		1,185
Investment in ViaCyte, Inc.		559		559
Other		84		84

Other assets, net	$	2,990	$	3,303

The Company accounts for most of its strategic investments under the cost method. The Company accounts for its investment in OctoPlus common stock, whose shares are traded on the Euronext Amsterdam Stock Exchange, as an available-for-sale investment. Available-for-sale investments are reported at fair value with unrealized gains and losses reported as a separate component of stockholders’ equity, except for other-than-temporary impairments, which are reported as a charge to current operations, recorded in the other income section of the condensed consolidated statements of income. The cost basis in the Company’s investment in OctoPlus is $0.9 million as of June 30, 2012. In the second quarter of fiscal 2012, the Company recognized an impairment loss on the investment totaling $0.8 million based on a significant decline in the stock price of OctoPlus and length of time the stock price has been trading below the previous cost basis of $1.7 million.

The Company recognized revenue of less than $0.1 million for each of the three months ended June 30, 2012 and 2011 and the nine months ended June 30, 2012 and the Company recognized revenue of $0.1 million for the nine months ended June 30, 2011, from activity with companies in which it had a strategic investment.

Intangible Assets

9 Months Ended

Jun. 30, 2012

Intangible Assets [Abstract]

Intangible Assets

Intangible Assets

Intangible assets consist principally of acquired patents and technology, customer relationships, licenses and trademarks. For the three months ended June 30, 2012 and 2011, the Company recorded amortization expense of $0.2 million for each period. For the nine months ended June 30, 2012 and 2011, the Company recorded amortization expense of $0.6 million for each period.

Intangible assets consisted of the following (in thousands):


	June 30, 2012
	Weighted Average Original Life (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Definite-lived intangible assets:
Customer lists		9.0	$	4,857	$	(2,599	)	$	2,258
Core technology		8.0		530		(326	)		204
Patents and other		16.8		2,255		(681	)		1,574

Subtotal				7,642		(3,606	)		4,036
Unamortized intangible assets:
Trademarks				580		—			580

Total			$	8,222	$	(3,606	)	$	4,616


	September 30, 2011
	Weighted Average Original Life (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Definite-lived intangible assets:
Customer lists		9.0	$	4,857	$	(2,195	)	$	2,662
Core technology		8.0		530		(276	)		254
Patents and other		16.8		2,308		(605	)		1,703

Subtotal				7,695		(3,076	)		4,619
Unamortized intangible assets:
Trademarks				580		—			580

Total			$	8,275	$	(3,076	)	$	5,199

Based on the intangible assets in service as of June 30, 2012, estimated amortization expense for the remainder of fiscal 2012 and each of the next five fiscal years is as follows (in thousands):


Remainder of 2012	$	186
2013		742
2014		742
2015		731
2016		594
2017		183

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, or other factors.

Goodwill

9 Months Ended

Jun. 30, 2012

Intangible Assets [Abstract]

Goodwill

Goodwill

Goodwill represents the excess of the cost of an acquired entity over the fair value assigned to the assets purchased and liabilities assumed in connection with the Company’s acquisition. 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.

The $8.0 million of goodwill at June 30, 2012 and September 30, 2011 is related to the In Vitro Diagnostics reporting unit. The goodwill was not impaired based on the outcome of the fiscal 2011 annual impairment test, and there have been no events or circumstances that have occurred in fiscal 2012 to indicate that the goodwill may be impaired.

Stock-based Compensation

9 Months Ended

Jun. 30, 2012

Stock-based Compensation [Abstract]

Stock-based Compensation

10.

Stock-based Compensation

The Company has stock-based compensation plans under which it grants stock options, restricted stock awards and performance share awards. 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 (in thousands):


	Three months ended June 30,				Nine months ended June 30,
	2012		2011		2012		2011
Product costs	$	5	$	18	$	31	$	59
Research and development		71		271		453		865
Selling, general and administrative		580		589		1,705		1,867

Total	$	656	$	878	$	2,189	$	2,791

As of June 30, 2012, approximately $4.1 million of total unrecognized compensation costs related to non-vested awards is expected to be recognized over a weighted average period of approximately 2.1 years. The unrecognized compensation costs above include $0.9 million associated with performance share awards that are currently anticipated to be fully expensed because the performance conditions for certain award periods are expected to be met. The unrecognized compensation costs above exclude $0.1 million associated with performance share awards that are currently anticipated to not be fully expensed because the performance conditions for certain award periods are not expected to be met.

Stock Option Plans

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 value of stock options granted during the three months ended June 30, 2012 was $5.94. There were no stock options granted in the three months ended June 30, 2011. The weighted average per share fair values of stock options granted during the nine months ended June 30, 2012 and 2011 were $5.24 and $3.96, respectively. The assumptions used as inputs in the model were as follows:


	Three months ended June 30,					Nine months ended June 30,
	2012			2011		2012			2011
Risk-free interest rates		0.7	%		N/A		0.8	%		1.5	%
Expected life (years)		4.8			N/A		4.8			4.8
Expected volatility		48.6	%		N/A		49.6	%		45.0	%
Dividend yield		0	%		N/A		0	%		0	%

The risk-free interest rate assumption was based on the U.S. Treasury’s rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award. The expected life of options granted is determined based on the Company’s experience. Expected volatility is based on the Company’s stock price movement over a period approximating the expected term. Based on management’s judgment, dividend rates are expected to be zero for the expected life of the options. The Company also estimates forfeitures of options granted, which are based on historical experience.

Non-qualified stock options are granted at fair market value on the date of grant. Non-qualified stock options expire in seven to ten years or upon termination of employment or service as a Board member. Non-qualified stock options granted prior to May 2008 generally become exercisable with respect to 20% of the shares on each of the first five anniversaries following the grant date, and non-qualified stock options granted subsequent to April 2008 generally become exercisable with respect to 25% of the shares on each of the first four anniversaries following the grant date.

The total pre-tax intrinsic value of options exercised during the nine months ended June 30, 2012 was $49,000. The intrinsic value represents the difference between the exercise price and the fair market value of the Company’s common stock on the last day of the respective fiscal period end. No stock options were exercised during each of the three months ended June 30, 2012 and 2011 and the nine months ended June 30, 2011.

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 will be released to the key employees if they are employed by the Company at the end of the vesting period. The stock-based compensation table above includes Restricted Stock expenses of less than $0.1 million and $0.2 million during the three and nine months ended June 30, 2012, respectively, and $0.1 million and $0.5 million for the three and nine months ended June 30, 2011, respectively.

Performance Share Awards

The Company has entered into performance share agreements with certain key employees, covering the issuance of common stock (“Performance Shares”). The Performance Shares vest upon the achievement of all or a portion of certain performance objectives, which must be achieved during the performance period. Compensation is recognized in each period based on management’s best estimate of the achievement level of the grants’ specified performance objectives and the resulting vesting amounts. The Company recognized expenses of approximately $0.4 million and $0.7 million related to Performance Shares for the three and nine months ended June 30, 2012, respectively. For the three and nine months ended June 30, 2011, the Company recognized expenses of approximately $0.1 million and $0.2 million, respectively. The stock-based compensation table above includes the Performance Shares expenses.

1999 Employee Stock Purchase Plan

Under the 1999 Employee Stock Purchase Plan (“Stock Purchase Plan”), the Company is authorized to issue up to 400,000 shares of common stock. All full-time and part-time employees can choose to have up to 10% of their annual compensation withheld, with a limit of $25,000, to purchase the Company’s common stock at purchase prices defined within the provisions of the Stock Purchase Plan. As of June 30, 2012 and 2011, there were less than $0.1 million of employee contributions for each period, 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 June 30, 2012 and 2011 totaled less than $0.1 million for each period. Stock compensation expense for the nine months ended June 30, 2012 and 2011 totaled approximately $0.1 million for each period. The stock-based compensation table above includes the Stock Purchase Plan expenses.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

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-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Restructuring Charges

9 Months Ended

Jun. 30, 2012

Restructuring Charges [Abstract]

Restructuring Charges

11.

Restructuring Charges

In August 2011, the Company announced a realignment of its business to optimize the Company’s resources according to its strategic plan. As a result of the organizational change, the Company eliminated approximately 9% of its workforce. These employee terminations occurred across various functions, and the reorganization plan was completed by the end of the fourth quarter of fiscal 2011. The Company recorded total pre-tax restructuring charges of $1.0 million in the fourth quarter of fiscal 2011, which consisted of severance pay and benefits expenses.

In October 2010, the Company announced initiatives to reduce its cost structure and renew its focus on business units to more closely match operations and cost structure with the current customer environment. As a result of the organizational change, the Company eliminated 30 positions, or approximately 13% of its workforce. These employee terminations occurred across various functions, and the reorganization plan was completed by the end of the first quarter of fiscal 2011. The Company recorded total pre-tax restructuring charges of $0.6 million in the first quarter of fiscal 2011, which consisted of $0.6 million of severance pay and benefits expenses and less than $0.1 million of facility-related costs.

During the three and nine months ended June 30, 2012, the Company did not incur any restructuring charges. The charges for fiscal 2011 have been presented separately as restructuring charges in the condensed consolidated statements of income. In addition, all restructuring costs related to SurModics Pharmaceuticals are included in discontinued operations.

Cash payments associated with the two fiscal 2011 restructuring events totaled $0.7 million during the nine months ended June 30, 2012, leaving a restructuring accrual balance of less than $0.1 million at June 30, 2012. There were also payments of less than $0.1 million during the nine months ended June 30, 2012 associated with facility-related costs related to a fiscal 2010 restructuring event, leaving a restructuring accrual balance of $0.2 million at June 30, 2012.

The following table summarizes the restructuring accrual activity for the nine months ended June 30, 2012 (in thousands):


	Employee severance and benefits			Facility- related costs			Total
Balance at September 30, 2011	$	730		$	250		$	980
Cash payments		(720	)		(54	)		(774	)

Balance at June 30, 2012	$	10		$	196		$	206

The remaining restructuring accrual balance relates to the fiscal 2011 and 2010 restructurings and is expected to be paid within the next 15 months. As such, the current portion totaling $0.2 million is recorded as a current liability within other current liabilities and the long-term portion totaling less than $0.1 million is recorded as a long-term liability within other long-term liabilities on the condensed consolidated balance sheet as of June 30, 2012.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References + Details

Income (Loss) Per Share Data

9 Months Ended

Jun. 30, 2012

Income (Loss) Per Share Data [Abstract]

Income (Loss) Per Share Data

12.

Income (Loss) Per Share Data

The following table sets forth the denominator for the computation of basic and diluted income (loss) per share (in thousands):


	Three months ended June 30,				Nine months ended June 30,
	2012		2011		2012		2011
Basic weighted average shares outstanding		17,528		17,437		17,505		17,409
Dilutive effect of outstanding stock options and non-vested stock		119		92		88		47

Diluted weighted average shares outstanding		17,647		17,529		17,593		17,456

The calculation of weighted average diluted shares outstanding excluded outstanding stock options for 0.7 million and 1.1 million shares of common stock for the three months ended June 30, 2012 and 2011, respectively, and 0.7 million and 1.1 million for the nine months ended June 30, 2012 and 2011, respectively, as their inclusion would have had an antidilutive effect on diluted income (loss) per share.

Comprehensive Income (Loss)

9 Months Ended

Jun. 30, 2012

Comprehensive Income (Loss) [Abstract]

Comprehensive Income (Loss)

13.

Comprehensive Income (Loss)

The components of comprehensive income (loss) are as follows (in thousands):


	Three months ended June 30,						Nine months ended June 30,
	2012			2011			2012			2011
Net income	$	3,062		$	3,842		$	7,491		$	159
Other comprehensive income (loss):
Unrealized holding gains (losses) on available-for-sale securities arising during the period, net of tax		44			(80	)		401			(82	)
Less reclassification adjustment for realized gains included in net income, net of tax		(2	)		(106	)		(109	)		(236	)

Other comprehensive income (loss)		42			(186	)		292			(318	)

Comprehensive income (loss)	$	3,104		$	3,656		$	7,783		$	(159	)

- Definition

The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
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+ Details

Income Taxes

9 Months Ended

Jun. 30, 2012

Income Taxes [Abstract]

Income Taxes

14.

Income Taxes

The Company recorded income tax provisions associated with income from continuing operations of $1.8 million and $1.5 million for the three months ended June 30, 2012 and 2011, respectively, representing effective tax rates of 35.6% and 33.3%, respectively. The Company recorded income tax provisions associated with income from continuing operations of $4.2 million and $4.7 million for the nine months ended June 30, 2012 and 2011, respectively, representing effective tax rates of 36.7% and 35.1%, respectively. The difference between the U.S. federal statutory tax rate of 35.0% and the Company’s effective tax rate for the three and nine months ended June 30, 2012 and 2011 reflects the impact of state income taxes, permanent tax items and discrete tax benefits.

The Company recorded an income tax expense from discontinued operations of less than $0.1 million and an income tax benefit from discontinued operations of $1.6 million for each of the three months ended June 30, 2012 and 2011, respectively. The Company recorded an income tax expense from discontinued operations of $1.1 million and an income tax benefit from discontinued operations of $4.1 million for each of the nine months ended June 30, 2012 and 2011, respectively. The Company recorded an income tax expense of less than $0.1 million and an income tax benefit of $0.7 million from the sale of discontinued operations for the three and nine months ended June 30, 2012. The effective tax rate applied to discontinued operations was 96.5% and 197.7% for the three months ended June 30, 2012 and 2011, respectively, and 65.0% and 32.5% for the nine months ended June 30, 2012 and 2011, respectively. The effective tax rates as calculated include tax return to accrual adjustments. The tax rate for the nine months ended June 30, 2011 is lower than the U.S. federal statutory tax rate of 35.0% because of a non-deductible goodwill impairment charge of $5.7 million on a pre-tax loss of $12.7 million.

The total amount of unrecognized tax benefits including interest and penalties that, if recognized, would affect the effective tax rate as of June 30, 2012 and September 30, 2011, respectively, are $1.5 million and $1.6 million. Currently, the Company does not expect the liability for unrecognized tax benefits to change significantly in the next 12 months with the above balances classified on the condensed consolidated balance sheets in other long-term liabilities. Interest and penalties related to unrecognized tax benefits are recorded in income tax expense.

The Company files income tax returns, including returns for its subsidiaries, in the U.S. federal jurisdiction and in various state jurisdictions. Uncertain tax positions are related to tax years that remain subject to examination. The Internal Revenue Service (“IRS”) commenced an examination of the Company’s U.S. income tax return for fiscal 2010 in the first quarter of fiscal 2012. The IRS completed its examination in the third quarter of fiscal 2012 and a minimal payment was made in the fourth quarter of fiscal 2012 associated with a timing adjustment. The IRS completed an examination of the Company’s U.S. income tax return for fiscal 2009 and a payment was made in the third quarter of fiscal 2011 associated with timing adjustments. U.S. income tax returns for years prior to fiscal 2009 are no longer subject to examination by federal tax authorities. Tax returns for state and local jurisdictions for fiscal years 2003 through 2011 remain subject to examination by state and local tax authorities.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1
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-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Operating Segments

9 Months Ended

Jun. 30, 2012

Operating Segments [Abstract]

Operating Segments

15.

Operating Segments

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. On November 17, 2011, the Company completed its sale of SurModics Pharmaceuticals. Accordingly, beginning in the first quarter of fiscal 2012, all results of operations, cash flows, assets and liabilities of SurModics Pharmaceuticals for all periods presented are classified as discontinued operations. Beginning in the first quarter of fiscal 2012, following the sale of SurModics Pharmaceuticals which was previously reported as a separate operating segment, the Company is now organized into two segments, as follows: (1) the Medical Device unit, which is comprised of surface modification coating technologies to improve access, deliverability, and predictable deployment of medical devices, as well as drug delivery coating technologies to provide site-specific drug delivery from the surface of a medical device, with end markets that include coronary, peripheral, and 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 microarray slide technologies, protein stabilization reagents, substrates, and antigens.

The tables below present segment revenue, operating income from continuing operations and depreciation and amortization, as follows (in thousands):


	Three months ended June 30,						Nine months ended June 30,
	2012			2011			2012			2011
Revenue:
Medical Device	$	10,269		$	9,559		$	27,889		$	29,372
In Vitro Diagnostics		3,690			3,440			10,196			9,483

Total revenue	$	13,959		$	12,999		$	38,085		$	38,855


Operating income (loss):
Medical Device	$	5,173		$	4,574		$	13,226		$	15,035
In Vitro Diagnostics		1,070			1,439			3,246			3,354
Corporate		(1,450	)		(1,756	)		(4,768	)		(5,799	)

Total operating income from continuing operations	$	4,793		$	4,257		$	11,704		$	12,590


Depreciation and amortization:
Medical Device	$	355		$	397		$	1,073		$	1,230
In Vitro Diagnostics		193			200			582			598
Corporate		186			192			559			565

Total depreciation and amortization	$	734		$	789		$	2,214		$	2,393

Segment results above for the nine months ended June 30, 2011 include restructuring charges of $0.6 million in Corporate. There were no restructuring charges for the three months ended June 30, 2011 or for the three and nine months ended June 30, 2012.

Corporate includes expenses for administrative corporate functions, such as executive, corporate accounting, legal, human resources and Board related, that have not been fully allocated to segments. Corporate also includes special charges, such as restructuring costs, which are not specific to a segment.

Asset information by segment is not presented because the Company does not provide its chief operating decision maker assets by segment, as the data is not readily available.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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-Publisher FASB
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+ Details

Commitments and Contingencies

9 Months Ended

Jun. 30, 2012

Commitments and Contingencies [Abstract]

Commitments and Contingencies

16.

Commitments and Contingencies

Litigation. From time to time, the Company has been, and may become, involved in various legal actions involving its operations, products and technologies, including intellectual property and employment disputes. The outcomes of these legal actions are not within the Company’s complete control and may not be known for prolonged periods of time. In some actions, the claimants seek damages, as well as other relief, including injunctions barring the sale of products that are the subject of the lawsuit, which, if granted, could require significant expenditures or result in lost revenue. The Company records a liability in the 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.

Southern Research Institute (“SRI”) Litigation. On July 31, 2009, the Company’s SurModics Pharmaceuticals subsidiary was named as a defendant in litigation pending in the circuit court of Jefferson County, Alabama, between SRI and two of SRI’s former employees (the “Plaintiffs”). In the litigation, the Plaintiffs allege that they contributed to or invented certain intellectual property while they were employed at SRI, and pursuant to SRI’s policies then in effect, they are entitled to, among other things, a portion of the purchase price consideration paid by the Company to SRI as part of the Company’s acquisition of SurModics Pharmaceuticals pursuant to a stock purchase agreement made effective on July 31, 2007 (the “Stock Purchase Agreement”). The Plaintiffs have also alleged that they are entitled to a portion of the intellectual property income derived from license agreements with certain customers of SurModics Pharmaceuticals that make use of patents to which the Plaintiffs invented or contributed. A trial has not yet been scheduled. Pursuant to the Stock Purchase Agreement, the Company has certain rights of indemnification against losses (including without limitation, damages, expenses and costs) incurred as a result of the litigation. The Company has recorded unreimbursed legal expenses related to this litigation within selling, general and administrative expenses from continuing operations in the condensed consolidated statements of income. However, the Company has not recorded an expense or any liabilities related to damages related to this litigation as the probability of the outcome is currently not determinable and any potential loss is not estimable. The Company believes that it has meritorious defenses to the Plaintiff’s claims and will vigorously defend and prosecute this matter.

InnoRx, Inc. In January 2005, the Company entered into a merger agreement whereby SurModics acquired all of the assets of InnoRx, Inc. (“InnoRx”), an early stage company developing drug delivery devices and therapies for the ophthalmology market. SurModics will be required to issue up to approximately 480,059 additional shares of its common stock to the stockholders of InnoRx upon the successful completion of the remaining development and commercial milestones involving InnoRx technology acquired in the transaction.

PR Pharmaceuticals, Inc. In November 2008, the Company’s SurModics Pharmaceuticals subsidiary acquired certain contracts and assets of PR Pharmaceuticals, Inc. to enhance its portfolio of drug delivery technologies for the pharmaceutical and biotechnology industries. The sellers of PR Pharmaceuticals, Inc. are still eligible to receive up to an additional $3.0 million in cash based on successful achievement of specified milestones for successful patent issuances and product development. The Company agreed to indemnify Evonik, for a period of five years, for certain contingent consideration obligations when it sold substantially all of the SurModics Pharmaceuticals assets to Evonik on November 17, 2011.

Alabama Jobs Commitment. In April 2008, the Company purchased a 286,000 square foot office and warehouse facility to support cGMP needs of customers and the anticipated growth of the SurModics Pharmaceuticals business. At the same time, SurModics Pharmaceuticals entered into an agreement with various governmental authorities to obtain financial incentives associated with creation of jobs in Alabama. Some of the governmental agencies have recapture rights in connection with the financial incentives if a specific number of full-time employees were not hired by June 2012, with an extension to June 2013 if circumstances or events occurred that were beyond the control of SurModics Pharmaceuticals or could not have been reasonably anticipated by SurModics Pharmaceuticals. This liability was retained by the Company and did not transfer to Evonik as part of the Pharma Sale. As of June 30, 2012, SurModics Pharmaceuticals had received $1.7 million in connection with the agreement, and the Company recorded the payments in current liabilities of discontinued operations on the condensed consolidated balance sheet as of June 30, 2012 because the Company has not met the criteria to recognize the amounts received as income. The Company is reviewing its obligations with respect to the financial incentives discussed above, which review may include discussions with the various governmental authorities that are parties to the agreement.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Subsequent Event

9 Months Ended

Jun. 30, 2012

Subsequent Events [Abstract]

Subsequent Events

17.

Subsequent Event

On August 6, 2012, the Company commenced a “modified Dutch auction” self-tender offer to purchase up to $55.0 million in value of its common stock at a price not greater than $19.00 and not less than $17.00 per share. The tender offer period is expected to expire on September 5, 2012, unless extended by the Company.

Key Accounting Policies (Policies)

9 Months Ended

Jun. 30, 2012

Key Accounting Policies [Abstract]

Revenue recognition

Revenue recognition

Royalties and license fees

Revenue related to a performance milestone is recognized upon the achievement of the milestone, as defined in the respective agreements and provided the following conditions have been met:

•

The milestone payment is non-refundable;

•

The milestone involved a significant degree of risk, and was not reasonably assured at the inception of the arrangement;

•

Accomplishment of the milestone involved substantial effort;

•

The amount of the milestone payment is commensurate with the related effort and risk; and

•

A reasonable amount of time passed between the initial license payment and the first and subsequent milestone payments.

If these conditions have not been met, the milestone payment is deferred and recognized over the term of the agreement.

Product sales

Research and development

New Accounting Pronouncements

New Accounting Pronouncements

No other new accounting pronouncement issued or effective has had, or is expected to have, a material impact on the Company’s consolidated financial statements.

- Definition

Disclosure of accounting policy for revenue recognition. If the entity has different policies for different types of revenue transactions, the policy for each material type of transaction is generally disclosed. If a sales transaction has multiple element arrangements (for example, delivery of multiple products, services or the rights to use assets) the disclosure may indicate the accounting policy for each unit of accounting as well as how units of accounting are determined and valued. The disclosure may encompass important judgment as to appropriateness of principles related to recognition of revenue. The disclosure also may indicate the entity's treatment of any unearned or deferred revenue that arises from the transaction.

+ References + Details

Discontinued Operations (Tables)

9 Months Ended

Jun. 30, 2012

Discontinued Operations [Abstract]

Schedule of operating results from discontinued operations


	Three months ended						Nine months ended
	June 30,						June 30,
	2012			2011			2012			2011
Total revenue	$	—		$	4,970		$	5,311		$	11,823


(Loss) income from discontinued operations	$	—		$	(810	)	$	2,309		$	(12,699	)
Income tax (provision) benefit		(30	)		1,601			(1,078	)		4,123

(Loss) income from discontinued operations, net of income taxes	$	(30	)	$	791		$	1,231		$	(8,576	)


Loss on sale of discontinued operations	$	(57	)	$	—		$	(1,691	)	$	—
Income tax (provision) benefit		(25	)		—			676			—

Loss on sale of discontinued operations, net of income taxes	$	(82	)	$	—		$	(1,015	)	$	—

Schedule of assets and liabilities of discontinued operations


	June 30,		September 30,
	2012		2011
Accounts receivable, net	$	358	$	3,309
Inventories		—		969
Other current assets		772		1,705

Current assets of discontinued operations		1,130		5,983

Property and equipment, net		—		24,911
Intangible assets, net		—		3,683
Other assets, net		—		3,917

Total assets of discontinued operations	$	1,130	$	38,494


Accounts payable	$	—	$	849
Accrued liabilities – compensation		—		1,522
Deferred revenue		—		550
Other current liabilities		1,716		2,428

Current liabilities of discontinued operations		1,716		5,349
Deferred revenue, less current portion		—		3,371
Other long-term liabilities		—		120

Total liabilities of discontinued operations	$	1,716	$	8,840

Fair Value Measurements (Tables)

9 Months Ended

Jun. 30, 2012

Fair Value Measurements [Abstract]

Schedule of assets and liabilities measured at fair value on a recurring basis

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2012 (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 June 30, 2012
Assets:
Cash equivalents	$	—	$	14,601	$	—	$	14,601
Available-for-sale debt securities:
U.S. government and government agency obligations		—		32,774		—		32,774
Mortgage-backed securities		—		3,305		—		3,305
Municipal bonds		—		3,212		—		3,212
Asset-backed securities		—		910		—		910
Corporate bonds		—		2,119		—		2,119
Other assets		877		—		—		877

Total assets measured at fair value	$	877	$	56,921	$	—	$	57,798

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2011 (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, 2011
Assets:
Cash equivalents	$	—	$	8,419	$	—	$	8,419
Available-for-sale debt securities:
U.S. government and government agency obligations		—		30,603		—		30,603
Mortgage-backed securities		—		3,933		15		3,948
Municipal bonds		—		3,614		—		3,614
Asset-backed securities		—		1,279		9		1,288
Corporate bonds		—		2,497		—		2,497
Other assets		1,190		—		—		1,190

Total assets measured at fair value	$	1,190	$	50,345	$	24	$	51,559

Schedule of assets measured at fair value on a recurring basis using Significant unobservable inputs (Level 3)


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Nine Months Ended June 30, 2012 Available-for-Sale Debt Securities
	Mortgage- Backed Securities			Asset- Backed Securities			Total
Balance at September 30, 2011	$	15		$	9		$	24
Transfers into Level 3		—			—			—
Transfers out of Level 3		(15	)		(9	)		(24	)
Total realized and unrealized gains (losses):
Included in other comprehensive (loss) income		—			—			—
Purchases		—			—			—
Issuances		—			—			—
Sales		—			—			—
Settlements		—			—			—

Balance at June 30, 2012	$	—		$	—		$	—


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Nine Months Ended June 30, 2011 Available-for-Sale Debt Securities
	U.S. Government Obligations			Mortgage- Backed Securities			Total
Balance at September 30, 2010	$	704		$	69		$	773
Transfers into Level 3		—			—			—
Transfers out of Level 3		(695	)		(68	)		(763	)
Total realized and unrealized gains (losses):
Included in other comprehensive (loss) income		19			(1	)		18
Purchases		—			620			620
Issuances		—			—			—
Sales		(28	)		(620	)		(648	)
Settlements		—			—			—

Balance at June 30, 2011	$	—		$	—		$	—

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details

Investments (Tables)

9 Months Ended

Jun. 30, 2012

Investments [Abstract]

Schedule of unrealized holding gains and losses, and fair value of available-for-sale securities

The original cost, unrealized holding gains and losses, and fair value of available-for-sale securities as of June 30, 2012 and September 30, 2011 were as follows (in thousands):


	June 30, 2012
	Original Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and government agency obligations	$	32,614	$	161	$	(1	)	$	32,774
Mortgage-backed securities		3,212		129		(36	)		3,305
Municipal bonds		3,183		30		(1	)		3,212
Asset-backed securities		955		1		(46	)		910
Corporate bonds		2,100		22		(3	)		2,119

Total	$	42,064	$	343	$	(87	)	$	42,320


	September 30, 2011
	Original Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and government agency obligations	$	30,433	$	176	$	(6	)	$	30,603
Mortgage-backed securities		3,871		131		(54	)		3,948
Municipal bonds		3,561		53		—			3,614
Asset-backed securities		1,336		1		(49	)		1,288
Corporate bonds		2,474		32		(9	)		2,497

Total	$	41,675	$	393	$	(118	)	$	41,950

Schedule of original cost and fair value of investments by contractual maturity

The original cost and fair value of investments by contractual maturity at June 30, 2012 were as follows (in thousands):


	Amortized Cost		Fair Value
Debt securities due within:
One year	$	13,509	$	13,519
One to five years		24,346		24,545
Five years or more		4,209		4,256

Total	$	42,064	$	42,320

Schedule of sales available-for-sale securities

The following table summarizes sales of available-for-sale securities (in thousands):


	Three months ended June 30,					Nine months ended June 30,
	2012			2011		2012			2011
Proceeds from sales	$	649		$	23,247	$	35,203		$	47,827
Gross realized gains	$	3		$	171	$	174		$	383
Gross realized losses	$	(1	)	$	—	$	(2	)	$	(4	)

Inventories (Tables)

9 Months Ended

Jun. 30, 2012

Inventories [Abstract]

Schedule of components of inventories

Inventories consisted of the following components (in thousands):


	June 30,		September 30,
	2012		2011
Raw materials	$	1,285	$	1,218
Finished products		1,978		1,963

Total	$	3,263	$	3,181

Other Assets (Tables)

9 Months Ended

Jun. 30, 2012

Other Assets [Abstract]

Schedule of other assets consist principally of strategic investments

Other assets consist principally of strategic investments as follows (in thousands):


	June 30,		September 30,
	2012		2011
Investment in OctoPlus N.V.	$	877	$	1,190
Investment in Nexeon MedSystems		285		285
Investment in ThermopeutiX		1,185		1,185
Investment in ViaCyte, Inc.		559		559
Other		84		84

Other assets, net	$	2,990	$	3,303

Intangible Assets(Tables)

9 Months Ended

Jun. 30, 2012

Intangible Assets [Abstract]

Schedule of intangible assets

Intangible assets consisted of the following (in thousands):


	June 30, 2012
	Weighted Average Original Life (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Definite-lived intangible assets:
Customer lists		9.0	$	4,857	$	(2,599	)	$	2,258
Core technology		8.0		530		(326	)		204
Patents and other		16.8		2,255		(681	)		1,574

Subtotal				7,642		(3,606	)		4,036
Unamortized intangible assets:
Trademarks				580		—			580

Total			$	8,222	$	(3,606	)	$	4,616


	September 30, 2011
	Weighted Average Original Life (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Definite-lived intangible assets:
Customer lists		9.0	$	4,857	$	(2,195	)	$	2,662
Core technology		8.0		530		(276	)		254
Patents and other		16.8		2,308		(605	)		1,703

Subtotal				7,695		(3,076	)		4,619
Unamortized intangible assets:
Trademarks				580		—			580

Total			$	8,275	$	(3,076	)	$	5,199

Schedule of intangible assets in service

Based on the intangible assets in service as of June 30, 2012, estimated amortization expense for the remainder of fiscal 2012 and each of the next five fiscal years is as follows (in thousands):


Remainder of 2012	$	186
2013		742
2014		742
2015		731
2016		594
2017		183

Stock-Based Compensation (Tables)

9 Months Ended

Jun. 30, 2012

Stock-based Compensation [Abstract]

Schedule of stock-based compensation expenses

The Company’s stock-based compensation expenses were allocated to the following expense categories (in thousands):


	Three months ended June 30,				Nine months ended June 30,
	2012		2011		2012		2011
Product costs	$	5	$	18	$	31	$	59
Research and development		71		271		453		865
Selling, general and administrative		580		589		1,705		1,867

Total	$	656	$	878	$	2,189	$	2,791

Schedule of stock option plans


	Three months ended June 30,					Nine months ended June 30,
	2012			2011		2012			2011
Risk-free interest rates		0.7	%		N/A		0.8	%		1.5	%
Expected life (years)		4.8			N/A		4.8			4.8
Expected volatility		48.6	%		N/A		49.6	%		45.0	%
Dividend yield		0	%		N/A		0	%		0	%

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

+ References + Details

Restructuring Charges (Tables)

9 Months Ended

Jun. 30, 2012

Restructuring Charges [Abstract]

Summary of restructuring accrual activity

The following table summarizes the restructuring accrual activity for the nine months ended June 30, 2012 (in thousands):


	Employee severance and benefits			Facility- related costs			Total
Balance at September 30, 2011	$	730		$	250		$	980
Cash payments		(720	)		(54	)		(774	)

Balance at June 30, 2012	$	10		$	196		$	206

Income (Loss) Per Share Data (Tables)

9 Months Ended

Jun. 30, 2012

Income (Loss) Per Share Data [Abstract]

Schedule of basic and diluted income (loss) per share

The following table sets forth the denominator for the computation of basic and diluted income (loss) per share (in thousands):


	Three months ended June 30,				Nine months ended June 30,
	2012		2011		2012		2011
Basic weighted average shares outstanding		17,528		17,437		17,505		17,409
Dilutive effect of outstanding stock options and non-vested stock		119		92		88		47

Diluted weighted average shares outstanding		17,647		17,529		17,593		17,456

Comprehensive Income (Loss) (Tables)

9 Months Ended

Jun. 30, 2012

Comprehensive Income (Loss) [Abstract]

Schedule of components of comprehensive income (loss)

The components of comprehensive income (loss) are as follows (in thousands):


	Three months ended June 30,						Nine months ended June 30,
	2012			2011			2012			2011
Net income	$	3,062		$	3,842		$	7,491		$	159
Other comprehensive income (loss):
Unrealized holding gains (losses) on available-for-sale securities arising during the period, net of tax		44			(80	)		401			(82	)
Less reclassification adjustment for realized gains included in net income, net of tax		(2	)		(106	)		(109	)		(236	)

Other comprehensive income (loss)		42			(186	)		292			(318	)

Comprehensive income (loss)	$	3,104		$	3,656		$	7,783		$	(159	)

Operating Segments (Tables)

9 Months Ended

Jun. 30, 2012

Operating Segments [Abstract]

Schedule of segment revenue operating income from continuing operations and depreciation and amortization

The tables below present segment revenue, operating income from continuing operations and depreciation and amortization, as follows (in thousands):


	Three months ended June 30,						Nine months ended June 30,
	2012			2011			2012			2011
Revenue:
Medical Device	$	10,269		$	9,559		$	27,889		$	29,372
In Vitro Diagnostics		3,690			3,440			10,196			9,483

Total revenue	$	13,959		$	12,999		$	38,085		$	38,855


Operating income (loss):
Medical Device	$	5,173		$	4,574		$	13,226		$	15,035
In Vitro Diagnostics		1,070			1,439			3,246			3,354
Corporate		(1,450	)		(1,756	)		(4,768	)		(5,799	)

Total operating income from continuing operations	$	4,793		$	4,257		$	11,704		$	12,590


Depreciation and amortization:
Medical Device	$	355		$	397		$	1,073		$	1,230
In Vitro Diagnostics		193			200			582			598
Corporate		186			192			559			565

Total depreciation and amortization	$	734		$	789		$	2,214		$	2,393

Key Accounting Policies (Details)	Jun. 30, 2012
Key Accounting Policies (Textual) [Abstract]
Maximum payment terms on product sales	45 days
Minimum payment terms on product sales	30 days

Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Discontinued Operations (Details) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Schedule of operating results from discontinued operations
Total revenue		$ 4,970	$ 5,311	$ 11,823
(Loss) income from discontinued operations		(810)	2,309	(12,699)
Income tax (provision) benefit	$ (30)	1,601	(1,078)	4,123
(Loss) income from discontinued operations, net of income taxes	(30)	$ 791	1,231	$ (8,576)
Loss on sale of discontinued operations	(57)		(1,691)
Income tax (provision) benefit	(25)		676
Loss on sale of discontinued operations, net of income taxes	$ (82)		$ (1,015)

- Definition

Overall income (loss) from a disposal group that is classified as a component of the entity, before income tax, reported as a separate component of income before extraordinary items. Includes the following (before income tax): income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal.

+ References + Details

- Definition

Amount of tax expense or benefit on gain (loss), not previously recognized, resulting from the sale of a business component.

+ References + Details

- Definition

Amount of income (loss) from a disposal group, net of income tax before extraordinary items allocable to noncontrolling interests. Includes, net of tax, income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.12)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.14)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 13
-Article 7

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 29
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 47
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 15
-Article 5

+ Details

Discontinued Operations (Details 1) - USD ($) $ in Thousands	Jun. 30, 2012	Sep. 30, 2011
Schedule of assets and liabilities of discontinued operations
Accounts receivable, net	$ 358	$ 3,309
Inventories		969
Other current assets	772	1,705
Current assets of discontinued operations	1,130	5,983
Property and equipment, net		24,911
Intangible assets , net		3,683
Other assets, net		3,917
Total assets Of discontinued operations	1,130	38,494
Accounts payable		849
Accrued liabilities-compensation		1,522
Deferred Revenue		550
Other current liabilities	1,716	2,428
Current liabilities of discontinued operations	1,716	5,349
Deferred revenue, less current portion		3,371
Other long-term liabilities		120
Total liabilities of discontinued operations	$ 1,716	$ 8,840

Discontinued Operations (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Jun. 30, 2012	Jun. 30, 2012
Discontinued Operations (Textual) [Abstract]
Total Consideration received from the Pharma Sale			$ 30,000
Loss on sale of discontinued operations, net of income taxes		$ (82)	(1,015)
Income tax benefit			1,000
Transaction costs			$ 1,700
Asset impairment charges totaling	$ 28,100
Impairment of long lived fixed assets disposed	23,300
Impairment of long lived intangible assets disposed	$ 4,800
Restricted time period for competition			5 years
Deferred tax assets and retained liability		$ 1,700	$ 1,700

Fair Value Measurements (Details 1) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Schedule of Assets Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs (Level 3)
Balance at September 30	$ 24	$ 773
Transfers into Level 3
Transfers out of Level 3	(24)	(763)
Total realized and unrealized gains (losses):
Included in other comprehensive (loss) income		18
Purchases		620
Issuances
Sales		(648)
Settlements
Balance at June 30
Mortgage-backed securities [Member]
Schedule of Assets Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs (Level 3)
Balance at September 30	15	69
Transfers into Level 3
Transfers out of Level 3	(15)	(68)
Total realized and unrealized gains (losses):
Included in other comprehensive (loss) income		(1)
Purchases		620
Issuances
Sales		(620)
Settlements
Balance at June 30
Asset-backed securities [Member]
Schedule of Assets Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs (Level 3)
Balance at September 30	9
Transfers into Level 3
Transfers out of Level 3	(9)
Total realized and unrealized gains (losses):
Included in other comprehensive (loss) income
Purchases
Issuances
Sales
Settlements
Balance at June 30
U.S. Government Obligations [Member]
Schedule of Assets Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs (Level 3)
Balance at September 30		704
Transfers into Level 3
Transfers out of Level 3		(695)
Total realized and unrealized gains (losses):
Included in other comprehensive (loss) income		19
Purchases
Issuances
Sales		(28)
Settlements
Balance at June 30

Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2012	Sep. 30, 2011
Schedule Of Sales Available For Sale Securities Abstract
Original Cost	$ 42,064	$ 41,675
Unrealized Gains	343	393
Unrealized Losses	(87)	(118)
Fair Value	42,320	41,950
U.S. government and government agency obligations [Member]
Schedule Of Sales Available For Sale Securities Abstract
Original Cost	32,614	30,433
Unrealized Gains	161	176
Unrealized Losses	(1)	(6)
Fair Value	32,774	30,603
Mortgage-backed securities [Member]
Schedule Of Sales Available For Sale Securities Abstract
Original Cost	3,212	3,871
Unrealized Gains	129	131
Unrealized Losses	(36)	(54)
Fair Value	3,305	3,948
Municipal Bonds [Member]
Schedule Of Sales Available For Sale Securities Abstract
Original Cost	3,183	3,561
Unrealized Gains	30	53
Unrealized Losses	(1)
Fair Value	3,212	3,614
Asset-backed securities [Member]
Schedule Of Sales Available For Sale Securities Abstract
Original Cost	955	1,336
Unrealized Gains	1	1
Unrealized Losses	(46)	(49)
Fair Value	910	1,288
Corporate Bonds [Member]
Schedule Of Sales Available For Sale Securities Abstract
Original Cost	2,100	2,474
Unrealized Gains	22	32
Unrealized Losses	(3)	(9)
Fair Value	$ 2,119	$ 2,497

Investments (Details 1) - USD ($) $ in Thousands	Jun. 30, 2012	Sep. 30, 2011
Schedule of original cost and fair value of investments by contractual maturity
Amortized Cost	$ 42,064
Fair market value of held-to-maturity debt securities	42,320	$ 3,100
One Year [Member]
Schedule of original cost and fair value of investments by contractual maturity
Amortized Cost	13,509
Fair market value of held-to-maturity debt securities	13,519
One to five years [Member]
Schedule of original cost and fair value of investments by contractual maturity
Amortized Cost	24,346
Fair market value of held-to-maturity debt securities	24,545
Five years or more [Member]
Schedule of original cost and fair value of investments by contractual maturity
Amortized Cost	4,209
Fair market value of held-to-maturity debt securities	$ 4,256

Investments (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Investments (Details 2) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Schedule of sales available-for-sale securities
Proceeds from sales	$ 649	$ 23,247	$ 35,203	$ 47,827
Gross realized gains	3	$ 171	174	384
Gross realized losses	$ (1)		$ (2)	$ (4)

Investments (Details Textual) - USD ($) $ in Thousands	Jun. 30, 2012	Sep. 30, 2011
Investments (Textual) [Abstract]
Amortized cost of held-to-maturity debt securities	$ 0	$ 3,000
Fair market value of held-to-maturity debt securities	$ 42,320	$ 3,100

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2012	Sep. 30, 2011
Schedule of Components of Inventories
Raw materials	$ 1,285	$ 1,218
Finished products	1,978	1,963
Total	$ 3,263	$ 3,181

Other Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2012	Sep. 30, 2011
Schedule of other assets consist principally of strategic investments
Other assets, net	$ 2,990	$ 3,303
Investment in OctoPlus N.V. [Member]
Schedule of other assets consist principally of strategic investments
Other assets, net	877	1,190
Investment in Nexeon MedSystems [Member]
Schedule of other assets consist principally of strategic investments
Other assets, net	285	285
Investment in ThermopeutiX [Member]
Schedule of other assets consist principally of strategic investments
Other assets, net	1,185	1,185
Investment in ViaCyte, Inc. [Member]
Schedule of other assets consist principally of strategic investments
Other assets, net	559	559
Other [Member]
Schedule of other assets consist principally of strategic investments
Other assets, net	$ 84	$ 84

Other Assets (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Other Assets (Details Textual) - USD ($) $ in Millions	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Schedule of Available-for-sale Securities [Line Items]
Recognized Revenue			$ 0.1	$ 0.1
Other Assets (Textual) [Abstract]
Cost basis in the Company's investment in OctoPlus	$ 0.9		0.9
Impairment loss on investment	0.8		0.8
Previous cost basis			$ 1.7
Maximum [Member]
Schedule of Available-for-sale Securities [Line Items]
Recognized Revenue	$ 0.1	$ 0.1

Intangible Assets(Details) - USD ($) $ in Thousands	Jun. 30, 2012	Sep. 30, 2011
Schedule of Intangible assets
Gross Carrying Amount	$ 8,222	$ 8,275
Accumulated Amortization	(3,606)	(3,076)
Intangible assets, net	$ 4,616	$ 5,199
Customer Lists [Member]
Schedule of Intangible assets
Weighted Average Original Life (Years)	9 years	9 years
Gross Carrying Amount	$ 4,857	$ 4,857
Accumulated Amortization	(2,599)	(2,195)
Intangible assets, net	$ 2,258	$ 2,662
Core Technology [Member]
Schedule of Intangible assets
Weighted Average Original Life (Years)	8 years	8 years
Gross Carrying Amount	$ 530	$ 530
Accumulated Amortization	(326)	(276)
Intangible assets, net	$ 204	$ 254
Patents And Other [Member]
Schedule of Intangible assets
Weighted Average Original Life (Years)	16 years 9 months 18 days	16 years 9 months 18 days
Gross Carrying Amount	$ 2,255	$ 2,308
Accumulated Amortization	(681)	(605)
Intangible assets, net	$ 1,574	$ 1,703
Trademarks [Member]
Schedule of Intangible assets
Weighted Average Original Life (Years)
Gross Carrying Amount	$ 580	$ 580
Intangible assets, net	580	580
Definite-lived intangible assets [Member]
Schedule of Intangible assets
Gross Carrying Amount	7,642	7,695
Accumulated Amortization	(3,606)	(3,076)
Intangible assets, net	$ 4,036	$ 4,619

Intangible Assets (Details 1) $ in Thousands	Jun. 30, 2012 USD ($)
Schedule of Intangible Assets in Service
Remainder of 2012	$ 186
2013	742
2014	742
2015	731
2016	594
2017	$ 183

Intangible Assets (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Intangible Assets (Details Textual) - USD ($) $ in Millions	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Schedule Of Amortization Expense (Textual) [Abstract]
Amortization Expense	$ 0.2	$ 0.2	$ 0.6	$ 0.6

Goodwill (Details) - USD ($) $ in Thousands	Jun. 30, 2012	Sep. 30, 2011
Goodwill (Textual) [Abstract]
Goodwill	$ 8,010	$ 8,010
Vitro Diagnostics [Member]
Goodwill (Textual) [Abstract]
Goodwill	$ 8,000	$ 8,000

- Definition

Carrying amount as of the balance sheet date, which is the cumulative amount paid and (if applicable) the fair value of any noncontrolling interest in the acquiree, adjusted for any amortization recognized prior to the adoption of any changes in generally accepted accounting principles (as applicable) and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6388280&loc=d3e13770-109266

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 72
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-Clause 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 68
-Subparagraph l
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Stock Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Stock Based Compensation (Details) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Schedule of stock-based compensation expenses
Stock-based compensation expenses	$ 656	$ 878	$ 2,189	$ 2,791
Product costs [Member]
Schedule of stock-based compensation expenses
Stock-based compensation expenses	5	18	31	59
Research and development [Member]
Schedule of stock-based compensation expenses
Stock-based compensation expenses	71	271	453	865
Selling, general and administrative [Member]
Schedule of stock-based compensation expenses
Stock-based compensation expenses	$ 580	$ 589	$ 1,705	$ 1,867

- Definition

Represents the expense recognized during the period arising from equity-based compensation arrangements (for example, shares of stock, unit, stock options or other equity instruments) with employees, directors and certain consultants qualifying for treatment as employees.

+ References + Details

Stock Based Compensation (Details 1)	3 Months Ended		9 Months Ended
Stock Based Compensation (Details 1)	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Schedule of stock option plans
Risk-free interest rates	0.70%		0.80%	1.50%
Expected life (years)	4 years 9 months 18 days		4 years 9 months 18 days	4 years 9 months 18 days
Expected volatility	46.80%		49.60%	45.00%
Dividend yield	0.00%		0.00%	0.00%

Stock Based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Stock Based Compensation Expenses (Textual) [Abstract]
Unrecognized compensation costs related to non-vested awards	$ 4,100		$ 4,100
Weighted average period for recognition of compensation costs related to non-vested awards			2 years 1 month 6 days
Performance Share Awards Fully Expensed	90		$ 90
Performance Share Awards Not Be Fully Expensed	$ 100		$ 100
Weighted average per share fair value of stock options	$ 5.94		$ 5.24	$ 3.96
Stock options granted		0
Total pre-tax intrinsic value of options exercised			$ 49,000
Stock options exercised	0	0	0	0
Authorized Common Stock			400,000
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of non qualified stock options on each of first four anniversaries.			25.00%
Percentage of non qualified stock options on each of first five anniversaries			20.00%
Restricted Stock Expenses	$ 100	$ 100	$ 200	$ 500
Performance Shares	400	100	$ 700	200
Annual compensation withheld			10.00%
Maximum Limit			$ 25,000
Employee contributions	100	100	100	100
Stock compensation expense recognized	$ 100	$ 100	$ 100	$ 100

Restructuring Charges (Details) $ in Thousands	9 Months Ended
Restructuring Charges (Details) $ in Thousands	Jun. 30, 2012 USD ($)
Summary of restructuring accrual activity
Balance at September 30, 2011	$ 980
Cash payments	(774)
Balance at June 30, 2012	206
Employee severance and benefits [Member]
Summary of restructuring accrual activity
Balance at September 30, 2011	730
Cash payments	(720)
Balance at June 30, 2012	10
Facility-related costs [Member]
Summary of restructuring accrual activity
Balance at September 30, 2011	250
Cash payments	(54)
Balance at June 30, 2012	$ 196

Restructuring Charges (Details Textual) $ in Thousands	3 Months Ended			9 Months Ended
Restructuring Charges (Details Textual) $ in Thousands	Sep. 30, 2012 USD ($)	Jun. 30, 2012 USD ($)	Dec. 31, 2010 USD ($)	Jun. 30, 2012 USD ($)	Aug. 31, 2011	Oct. 30, 2010 Positions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restructuring accrual balance		$ 100		$ 100
Payments associated with facility related costs				100
Summary Of Restructuring Accrual Activity (Textual) [Abstract]
Eliminated Work Force					9.00%	13.00%
Positions eliminated as a result of the organizational change \| Positions						30
Pre-Tax Restructuring Charges	$ 1,000	0	$ 600	0
Cash payments for restructuring events				(774)
Current portion		200		200
Severance pay and benefit expenses			600
Restructuring accrual balance fiscal 2010 restructuring event.		$ 200		$ 200
Restructuring accrual balance expected to be paid within		15 months		15 months
Facility related cost			$ 100
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Long term portion		$ 100		$ 100

Income (Loss) Per Share Data (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Schedule Of Basic and Diluted Income (loss) per share
Basic weighted average shares outstanding	17,528	17,437	17,505	17,409
Dilutive effect of outstanding stock options and non vested stock	119	92	88	47
Diluted weighted average shares outstanding	17,647	17,529	17,593	17,456

Income (Loss) Per Share Data (Details Textual) - shares shares in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Income (Loss) Per Share Data (Textual) [Abstract]
Weighted average diluted shares outstanding excluded outstanding stock options	0.7	1.1	0.7	1.1

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Schedule Of Components Of Comprehensive Income (loss)
Net income (loss)	$ 3,062	$ 3,842	$ 7,491	$ 159
Other comprehensive income (loss)
Unrealized holding gains (losses) on available-for-sale securities arising during the period, net of tax	44	(80)	401	(82)
Less :reclassification adjustment for realized gains included in net income (loss), net of tax	(2)	(106)	(109)	(236)
Other comprehensive income (loss)	42	(186)	292	(318)
Comprehensive income (loss)	$ 3,104	$ 3,656	$ 7,783	$ (159)

- Definition

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the economic entity, including both controlling (parent) and noncontrolling interests. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, including any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e565-108580

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-Paragraph 38
-Subparagraph d
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 10, 15
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-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph A7
-Appendix A

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 87-21
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 14: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Research Bulletin (ARB)
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

+ Details

- Definition

Net of tax amount of other comprehensive income (loss) attributable to the parent entity.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (c)(3)
-URI http://asc.fasb.org/extlink&oid=18733093&loc=SL4573702-111684

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 30
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 29
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Net of tax amount of unrealized holding gain (loss) before reclassification adjustments and transfers on available-for-sale securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
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-Subparagraph (e)
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Sep. 30, 2011
Income Taxes (Textual) [Abstract]
Income tax provisions associated with income from continuing operations	$ 1.8	$ 1.5	$ 4.2	$ 4.7
Effective tax rates	35.60%	33.30%	36.70%	35.10%
U.S. federal statutory tax rate	35.00%	35.00%	35.00%	35.00%
Income tax expense from discontinued operations	$ 0.1	$ 0.1	$ 1.1	$ 1.1
Income tax benefit from discontinued operations	1.6	$ 1.6	4.1	$ 4.1
Income tax benefit from the sale of discontinued operations	$ 0.1		$ 0.7
The effective tax rate applied to discontinued operations	96.50%	197.70%	65.00%	32.50%
Goodwill impairment charge				$ 5.7
Pre-tax loss				$ 12.7
Unrecognized tax benefits including interest and penalties	$ 1.5		$ 1.5		$ 1.6
Liability for unrecognized tax benefits to change significantly in the next 12 months	$ 0.0		$ 0.0

Operating Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Operating Segments (Details) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Schedule of segment revenue operating income from continuing operations and depreciation and amortization
Total revenue	$ 13,959	$ 12,999	$ 38,085	$ 38,855
Operating income (loss)	4,793	4,257	11,704	12,590
Depreciation and amortization	734	789	2,214	2,393
Medical Device [Member]
Schedule of segment revenue operating income from continuing operations and depreciation and amortization
Total revenue	10,269	9,559	27,889	29,372
Operating income (loss)	5,173	4,574	13,226	15,035
Depreciation and amortization	355	397	1,073	1,230
In Vitro Diagnostics [Member]
Schedule of segment revenue operating income from continuing operations and depreciation and amortization
Total revenue	3,690	3,440	10,196	9,483
Operating income (loss)	1,070	1,439	3,246	3,354
Depreciation and amortization	193	200	582	598
Corporate [Member]
Schedule of segment revenue operating income from continuing operations and depreciation and amortization
Operating income (loss)	(1,450)	(1,756)	(4,768)	(5,799)
Depreciation and amortization	$ 186	$ 192	$ 559	$ 565

Operating Segments (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Operating Segments [Abstract]
Restructuring charges	$ 0	$ 0	$ 0	$ 609

Commitments and Contingencies (Details) $ in Millions	9 Months Ended
Commitments and Contingencies (Details) $ in Millions	Jun. 30, 2012 USD ($) shares	Apr. 08, 2008 ft²
Commitments and Contingencies (Textual) [Abstract]
Additional Shares Of Common Stock to the Stockholders \| shares	480,059
Patent Issuances and Product Development	3.0
Indemnification Period	5 years
Office and Warehouse Facility \| ft²		286,000
Payments in Other Current Liabilities	1.7

Subsequent Event (Details) $ / shares in Units, $ in Millions	1 Months Ended
	Aug. 06, 2012 USD ($) $ / shares
Common stock shares at par value	$ 19.00
Maximum [Member]
Common stock shares at par value	$ 17.00
Common Stock [Member]
Purchased value of common stock \| $	$ 55.0

Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] - USD ($) $ in Thousands	Jun. 30, 2012	Sep. 30, 2011
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value	$ 57,798	$ 51,559
Cash equivalents [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value	14,601	8,419
U.S. government and government agency obligations [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value	32,774	30,603
Mortgage-backed securities [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value	3,305	3,948
Municipal Bonds [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value	3,212	3,614
Asset-backed securities [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value	910	1,288
Corporate Bonds [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value	2,119	2,497
Other [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value	877	1,190
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value	877	1,190
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] \| Cash equivalents [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] \| U.S. government and government agency obligations [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] \| Mortgage-backed securities [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] \| Municipal Bonds [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] \| Asset-backed securities [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] \| Corporate Bonds [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] \| Other [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value	877	1,190
Significant Other Observable Inputs (Level 2) [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value	56,921	50,345
Significant Other Observable Inputs (Level 2) [Member] \| Cash equivalents [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value	14,601	8,419
Significant Other Observable Inputs (Level 2) [Member] \| U.S. government and government agency obligations [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value	32,774	30,603
Significant Other Observable Inputs (Level 2) [Member] \| Mortgage-backed securities [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value	3,305	3,933
Significant Other Observable Inputs (Level 2) [Member] \| Municipal Bonds [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value	3,212	3,614
Significant Other Observable Inputs (Level 2) [Member] \| Asset-backed securities [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value	910	1,279
Significant Other Observable Inputs (Level 2) [Member] \| Corporate Bonds [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value	2,119	2,497
Significant Other Observable Inputs (Level 2) [Member] \| Other [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value	0
Significant Unobservable Inputs (Level 3) [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value		24
Significant Unobservable Inputs (Level 3) [Member] \| Cash equivalents [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value
Significant Unobservable Inputs (Level 3) [Member] \| U.S. government and government agency obligations [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value
Significant Unobservable Inputs (Level 3) [Member] \| Mortgage-backed securities [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value		15
Significant Unobservable Inputs (Level 3) [Member] \| Municipal Bonds [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value
Significant Unobservable Inputs (Level 3) [Member] \| Asset-backed securities [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value		9
Significant Unobservable Inputs (Level 3) [Member] \| Corporate Bonds [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value
Significant Unobservable Inputs (Level 3) [Member] \| Other [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value