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Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Sep. 30, 2012	Dec. 03, 2012	Mar. 31, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	SURMODICS INC
Entity Central Index Key	0000924717
Document Type	10-K
Document Period End Date	Sep. 30, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--09-30
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 203
Entity Common Stock, Shares Outstanding		0

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2012	Sep. 30, 2011
Current Assets:
Cash and cash equivalents	$ 15,540	$ 23,217
Available-for-sale securities	14,117	12,196
Held-to-maturity securities		3,030
Accounts receivable, net of allowance for doubtful accounts of $40 and $32 as of September 30, 2012 and 2011, respectively	5,069	4,385
Inventories	3,524	3,181
Deferred tax assets	219	327
Prepaids and other	603	2,268
Current assets of discontinued operations	883	5,983
Total Current Assets	39,955	54,587
Property and equipment, net	13,610	14,586
Available-for-sale securities	28,433	29,754
Deferred tax assets	5,806	8,832
Intangible assets, net	4,430	5,199
Goodwill	8,010	8,010
Other assets, net	2,831	3,303
Non-current assets of discontinued operations		32,511
Total Assets	103,075	156,782
Current Liabilities:
Accounts payable	1,657	1,572
Accrued liabilities:
Compensation	2,319	1,952
Accrued other	1,066	1,241
Deferred revenue	47	53
Other current liabilities	170	873
Current liabilities of discontinued operations	1,640	5,349
Total Current Liabilities	6,899	11,040
Deferred revenue, less current portion	185	222
Other long-term liabilities	2,247	2,421
Non-current liabilities of discontinued operations		3,491
Total Liabilities	9,331	17,174
Commitments and Contingencies (Note 9)
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; 14,656,806 and 17,531,408 shares issued and outstanding, respectively	733	877
Additional paid-in capital	18,346	74,490
Accumulated other comprehensive income (loss)	40	(153)
Retained earnings	74,625	64,394
Total Stockholders' Equity	93,744	139,608
Total Liabilities and Stockholders' Equity	$ 103,075	$ 156,782

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2012	Sep. 30, 2011
Condensed Consolidated Balance Sheets [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 40	$ 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	14,656,806	17,531,408
Common stock, shares outstanding	14,656,806	17,531,408

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Revenue:
Royalties and license fees	$ 27,445	$ 30,385	$ 33,843
Product sales	20,742	20,150	17,364
Research and development	3,741	2,221	3,281
Total revenue	51,928	52,756	54,488
Operating costs and expenses:
Product costs	7,418	6,750	6,806
Research and development	14,143	14,005	18,972
Selling, general and administrative	14,025	14,862	12,509
Restructuring charges	0	1,616	1,204
Asset impairment charges			3,006
Total operating costs and expenses	35,586	37,233	42,497
Operating income from continuing operations	16,342	15,523	11,991
Other (loss) income:
Investment income, net	540	627	1,022
Impairment loss on investments	(804)		(7,943)
Other income, net	228	379	314
Other (loss) income	(36)	1,006	(6,607)
Income from continuing operations before income taxes	16,306	16,529	5,384
Income tax provision	(6,177)	(5,604)	(4,979)
Income from continuing operations	10,129	10,925	405
Discontinued operations:
Income (loss) from discontinued operations, net of income taxes	1,176	(29,431)	(21,494)
Loss on sale of discontinued operations, net of income taxes	(1,074)
Income (loss) from discontinued operations	102	(29,431)	(21,494)
Net income (loss)	$ 10,231	$ (18,506)	$ (21,089)
Basic income (loss) per share:
Continuing operations	$ 0.58	$ 0.63	$ 0.02
Discontinued operations	0.01	(1.69)	(1.24)
Net income (loss)	0.59	(1.06)	(1.21)
Diluted income (loss) per share:
Continuing operations	0.58	0.63	0.02
Discontinued operations	0.01	(1.69)	(1.24)
Net income (loss)	$ 0.59	$ (1.06)	$ (1.21)
Weighted average number of shares outstanding:
Basic	17,318	17,419	17,372
Diluted	17,431	17,462	17,380

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings
Beginning Balance, Shares at Sep. 30, 2009		17,471,000
Beginning Balance at Sep. 30, 2009	$ 172,372	$ 874	$ 66,005	$ 1,504	$ 103,989
Components of comprehensive income (loss), net of tax:
Net income (loss)	(21,089)				(21,089)
Unrealized holding gains (losses) on available-for-sale securities arising during the period	(437)			(437)
Reclassification for gains included in net income (loss), net of tax provision	(181)			(181)
Comprehensive income (loss)	(21,707)
Issuance of common stock, Shares		40,000
Issuance of common stock	610	$ 2	608
Common stock repurchased, Shares		(102,000)
Common stock repurchased	$ (2,032)	$ (6)	(2,026)
Common stock options exercised, Shares	20,350	14,000
Common stock options exercised, net	$ 282	$ 1	281
Purchase of common stock to pay employee taxes, Shares		1,000
Purchase of common stock to pay employee taxes	(545)		(545)
(Reduction or adjustment) Excess of tax benefit from stock-based compensation plans	(496)		(496)
Stock-based compensation	5,875		5,875
Ending Balance at Sep. 30, 2010	154,359	$ 871	69,702	886	82,900
Ending Balance, Shares at Sep. 30, 2010		17,424,000
Components of comprehensive income (loss), net of tax:
Net income (loss)	(18,506)				(18,506)
Unrealized holding gains (losses) on available-for-sale securities arising during the period	(804)			(804)
Reclassification for gains included in net income (loss), net of tax provision	(235)			(235)
Comprehensive income (loss)	(19,545)
Issuance of common stock, Shares		55,000
Issuance of common stock	$ 574	$ 3	571
Common stock repurchased, Shares	0
Common stock options exercised, Shares
Purchase of common stock to pay employee taxes, Shares		52,000
Purchase of common stock to pay employee taxes	$ (40)	$ 3	(43)
(Reduction or adjustment) Excess of tax benefit from stock-based compensation plans	8		8
Stock-based compensation	4,252		4,252
Ending Balance at Sep. 30, 2011	139,608	$ 877	74,490	(153)	64,394
Ending Balance, Shares at Sep. 30, 2011		17,531,000
Components of comprehensive income (loss), net of tax:
Net income (loss)	10,231				10,231
Unrealized holding gains (losses) on available-for-sale securities arising during the period	335			335
Reclassification for gains included in net income (loss), net of tax provision	(142)			(142)
Comprehensive income (loss)	10,424
Issuance of common stock, Shares		26,000
Issuance of common stock	$ 271	$ 1	270
Common stock repurchased, Shares	(2,894,253)	(2,894,000)
Common stock repurchased	$ (54,991)	$ (145)	(54,846)
Common stock options exercised, Shares	11,379	10,000
Common stock options exercised, net	$ 73	$ 1	72
Purchase of common stock to pay employee taxes, Shares		(16,000)
Purchase of common stock to pay employee taxes	(236)	$ (1)	(235)
(Reduction or adjustment) Excess of tax benefit from stock-based compensation plans	(4,138)		(4,138)
Stock-based compensation	2,733		2,733
Ending Balance at Sep. 30, 2012	$ 93,744	$ 733	$ 18,346	$ 40	$ 74,625
Ending Balance, Shares at Sep. 30, 2012		14,657,000

Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Gains included in net income, tax provision	$ 86	$ 144	$ 118
Accumulated Other Comprehensive Income (Loss)
Gains included in net income, tax provision	$ 86	$ 144	$ 118

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Operating Activities:
Net income (loss)	$ 10,231	$ (18,506)	$ (21,089)
Adjustments to reconcile net income (loss) to net cash provided by operating activities from continuing operations:
(Income) loss from discontinued operations	(1,176)	29,431	21,494
Loss on sale of discontinued operations	1,074
Depreciation and amortization	2,929	3,159	3,620
Asset impairment charges			3,006
Gains on sales of securities, net	(228)	(380)	(299)
Amortization of premium on held-to-maturity securities	31	93	128
Impairment loss on investment	804		7,943
Stock-based compensation	2,671	3,650	4,587
Deferred taxes	(728)	(1,283)	(2,082)
Reduction of tax benefit from stock-based compensation plans	38	4	115
(Gain) loss on disposals of property and equipment	(36)	28	4
Change in operating assets and liabilities:
Accounts receivable	(685)	1,873	2,117
Inventories	(343)	(954)	332
Accounts payable and accrued liabilities	(2,663)	570	134
Income taxes	5,734	5,016	2,959
Deferred revenue	(42)	(51)	(917)
Prepaids and other	15	250	416
Net cash provided by operating activities from continuing operations	17,626	22,900	22,468
Investing Activities:
Purchases of property and equipment	(763)	(1,551)	(2,780)
Purchases of available-for-sale securities	(43,840)	(50,926)	(34,919)
Sales and maturities of available-for-sale securities	43,556	50,364	23,986
Maturities of held-to-maturity securities	3,000	1,000	2,000
Investment in other strategic assets			(500)
Purchase of licenses and patents			(210)
Payments related to a prior business acquisition		(5,650)	(750)
Cash received from (transferred to) discontinued operations	27,665	(4,841)	(7,740)
Net cash provided by (used in) investing activities from continuing operations	29,618	(11,604)	(20,913)
Financing Activities:
Reduction of tax benefit from stock-based compensation plans	(38)	(4)	(115)
Issuance of common stock	344	574	892
Repurchase of common stock	(54,991)		(2,032)
Purchase of common stock to pay employee taxes	(236)	(40)	(545)
Net cash (used in) provided by financing activities from continuing operations	(54,921)	530	(1,800)
Net cash (used in) provided by continuing operations	(7,677)	11,826	(245)
Discontinued Operations:
Net cash used in operating activities	(1,514)	(2,945)	(461)
Net cash provided by (used in) investing activities	29,817	(1,908)	(6,898)
Net cash (used in) provided by financing activities	(28,303)	4,853	7,359
Net cash provided by discontinued operations
Net change in cash and cash equivalents	(7,677)	11,826	(245)
Cash and Cash Equivalents:
Beginning of year	23,217	11,391	11,636
End of year	15,540	23,217	11,391
Supplemental Information:
Cash paid (received) for income taxes	2,060	(398)	4,105
Noncash transaction - acquisition of property and equipment on account	$ 553	$ 104	$ 565

Description

12 Months Ended

Sep. 30, 2012

Description and Summary of Significant Accounting Policies and Select Balance Sheet Information [Abstract]

Description

1.	Description

SurModics, Inc. and subsidiaries (the “Company”) is a leading provider of surface modification and in vitro diagnostic technologies to the healthcare industry. The Company derives its revenue from three primary sources: (1) royalties and license fees from licensing its patented drug delivery and surface modification technologies and in vitro diagnostic formats to customers; (2) the sale of reagent chemicals to licensees and the sale of stabilization products, antigens, substrates and surface coatings to the diagnostic and biomedical research markets; and (3) research and development fees generated on customer projects.

Basis of Presentation

The consolidated financial statements include all accounts and wholly-owned subsidiaries, and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.”) (“GAAP”). All significant inter-company transactions have been eliminated.

Certain items in the consolidated financial statements for the years ended September 30, 2011 and 2010, 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. All information in the following notes to the consolidated financial statements includes only results from continuing operations (excluding SurModics Pharmaceuticals) for all periods presented, unless otherwise noted.

Changes to Consolidated Statements of Operations

Beginning with the first quarter of fiscal 2012, the Company changed the format of the consolidated statements of operations 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.

Subsequent Events

In October 2012, the Company was informed that one of its strategic investments, OctoPlus N.V. (“OctoPlus”), had received a tender offer from Dr. Reddy’s Laboratories Ltd. (“Dr. Reddy’s”) to purchase all issued and outstanding ordinary shares of OctoPlus at an offer price of €0.52 per share. The Company expects to record a gain of approximately $0.1 million on the sale of this investment in the second quarter of fiscal 2013 pending final completion of the tender offer.

In November 2012, the Company was informed that one of its strategic investments, Vessix Vascular, Inc. (“Vessix”), was purchased by Boston Scientific Corporation. The Company expects to record a gain of approximately $1.2 million on the sale of this investment in the first quarter of fiscal 2013 with total potential proceeds of $5.5 million over time depending on achievement of future milestones during the period 2013 to 2017.

Summary of Significant Accounting Policies and Select Balance Sheet Information

12 Months Ended

Sep. 30, 2012

Description and Summary of Significant Accounting Policies and Select Balance Sheet Information [Abstract]

Summary of Significant Accounting Policies and Select Balance Sheet Information

2.	Summary of Significant Accounting Policies and Select Balance Sheet Information

Cash and Cash Equivalents

Cash and cash equivalents consist of financial instruments with original maturities of three months or less and are stated at cost which approximates fair value.

Investments

Investments consist principally of U.S. government and government agency obligations, mortgage-backed securities and corporate and municipal debt securities and are classified as available-for-sale or held-to-maturity at September 30, 2012 and 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 (loss). This adjustment results in a new cost basis for the investment. Investments for which 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 (loss). Interest on debt securities, including amortization of premiums and accretion of discounts, is included in other income (loss). Realized gains and losses from the sales of debt securities, which are included in other income (loss), 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 September 30 were as follows (in thousands):


	2012
	Original Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and government agency obligations	$	28,641	$	213	$	—		$	28,854
Mortgage-backed securities		2,896		129		(26	)		2,999
Municipal bonds		3,178		35		—			3,213
Asset-backed securities		613		—		(15	)		598
Corporate bonds		6,858		28		—			6,886

Total	$	42,186	$	405	$	(41	)	$	42,550


	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

As of September 30, 2012, the Company concluded that the unrealized losses related to the available-for-sale securities shown above were not other-than-temporary as the Company does not have the intent to sell, nor is it more likely than not that the Company will be required to sell, before recovery of their amortized cost.

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


	Amortized Cost		Fair Value
Debt securities due within:
One year	$	14,093	$	14,117
One to five years		23,903		24,149
Five years or more		4,190		4,284

Total	$	42,186	$	42,550

The following table summarizes sales of available-for-sale securities for the years ended September 30, 2012, 2011 and 2010 (in thousands):


	2012			2011			2010
Proceeds from sales	$	43,556		$	50,364		$	23,986
Gross realized gains	$	229		$	384		$	302
Gross realized losses	$	(1	)	$	(4	)	$	(3	)

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 September 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.

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 as of September 30 (in thousands):


	2012		2011
Raw materials	$	1,479	$	1,218
Finished products		2,045		1,963

Total	$	3,524	$	3,181

Property and Equipment

Property and equipment are stated at cost, less any impairment, and are depreciated using the straight-line method over the estimated useful lives of the assets. The Company recorded depreciation expense of $2.2 million, $2.4 million and $2.8 million for the years ended September 30, 2012, 2011 and 2010, respectively.

The September 30, 2012 and 2011 balances in construction-in-progress include the cost of enhancing the capabilities of the Company’s Eden Prairie, Minnesota facility. As assets are placed in service, construction-in-progress is transferred to the specific property and equipment categories and depreciated over the estimated useful lives of the assets.

In fiscal 2010, the Company recognized an $0.8 million asset impairment charge associated with certain long-lived assets included in Laboratory fixtures and equipment where no ongoing business was expected in the foreseeable future based on market conditions. The Company also recognized a $0.4 million asset impairment charge associated with prototypes and other equipment related to a development project for which no ongoing business was expected in the foreseeable future in light of market conditions. In addition, the Company recorded a $1.3 million asset impairment charge associated with certain fixed asset costs located in Minnesota that were included in Construction-in-progress during fiscal 2010.

Property and equipment consisted of the following components as of September 30 (in thousands):


	Useful Life		2012			2011
	(In years)
Land			$	4,359		$	4,359
Laboratory fixtures and equipment		3 to 10		13,004			13,236
Buildings and improvements		3 to 20		14,702			14,655
Office furniture and equipment		3 to 10		3,370			3,222
Construction-in-progress				848			237
Less accumulated depreciation				(22,673	)		(21,123	)

Property and equipment, net			$	13,610		$	14,586

Other Assets

Other assets consisted principally of strategic investments as of September 30 as follows (in thousands):


	2012		2011
Investment in OctoPlus N.V.	$	718	$	1,190
Investment in Nexeon MedSystems, Inc.		285		285
Investment in ThermopeutiX, Inc.		1,185		1,185
Investment in ViaCyte, Inc.		559		559
Other		84		84

Other assets, net	$	2,831	$	3,303

In January 2005, the Company made an initial equity investment of approximately $3.9 million in OctoPlus, a company based in the Netherlands active in the development of pharmaceutical formulations incorporating novel biodegradable polymers. Subsequent investments brought the Company’s total investment to $6.0 million. In October 2006, OctoPlus common stock began trading on the Euronext Amsterdam Stock Exchange following an initial public offering of its common stock. With a readily determinable fair market value, the Company now treats the investment in OctoPlus as an available-for-sale investment rather than a cost method 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 (loss) section of the consolidated statements of operations, and resulting in a new cost basis for the investment. As of September 30, 2012, the investment in OctoPlus represented an ownership interest of less than 10%. 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 had been trading below the previous cost basis of $1.7 million. The Company recorded no realized gain or loss related to this investment in fiscal 2011 or 2010. Subsequent to the recognized impairment loss in the second quarter of fiscal 2012, the Company recorded in comprehensive income an unrealized loss of $0.2 million in the second half of fiscal 2012. The Company also recorded in comprehensive income (loss) an unrealized loss of $0.5 million and an unrealized gain of $0.9 million in fiscal 2011 and 2010, respectively, related to the OctoPlus investment. The Company recognized an impairment loss on the investment totaling $4.3 million in fiscal 2008 based on a significant decline in the stock price of OctoPlus as a result of market conditions. The cost basis in OctoPlus is $0.9 million after consideration of the fiscal 2012 and 2008 impairments. As noted in Note 1 under “Subsequent Events”, in October 2012 OctoPlus received a tender offer from Dr. Reddy’s. The Company expects to record a gain of approximately $0.1 million on the sale of this investment in the second quarter of fiscal 2013 pending final completion of the tender offer.

Beginning in May 2005, the Company has invested $1.2 million in ThermopeutiX, Inc. (“ThermopeutiX”), a California-based early stage company developing novel medical devices for the treatment of vascular and neurovascular diseases. In addition to the investment, SurModics has licensed its hydrophilic and hemocompatible coating technologies to ThermopeutiX for use with its devices. The Company’s investment in ThermopeutiX, which is accounted for under the cost method, represents an ownership interest of less than 20%. The Company does not exert significant influence over ThermopeutiX’s operating or financial activities.

The Company has invested a total of $5.2 million in ViaCyte, Inc. (“ViaCyte”), formerly Novocell, Inc., a privately-held California-based biotechnology firm that is developing a unique treatment for diabetes using coated islet cells, the cells that produce insulin in the human body. In fiscal 2006, the Company determined that its investment in ViaCyte was impaired and that the impairment was other than temporary. Accordingly, the Company recorded an impairment loss of $4.7 million. The balance of the investment of $0.6 million, which is accounted for under the cost method, represents less than a 5% ownership interest. The Company does not exert significant influence over ViaCyte’s operating or financial activities.

In July 2007, the Company made equity investments in Paragon Intellectual Properties, LLC (“Paragon”) and Apollo Therapeutics, LLC, a Paragon subsidiary, totaling $3.5 million. SurModics made an additional equity investment in fiscal 2008 totaling $2.5 million, based upon successful completion of specified development milestones. In October 2008, Paragon announced that it had restructured, moving from a limited liability company with seven subsidiaries to a single C-corporation named Nexeon MedSystems, Inc. (“Nexeon”). Commencing with the second quarter of fiscal 2009, SurModics accounts for its investment in Nexeon under the cost method (previously accounted for under the equity method) as the Company’s ownership is less than 20%, and the Company does not exert significant influence over Nexeon’s operating or financial activities. The Company made an additional cash investment in Nexeon of $0.5 million in fiscal 2009. In the fourth quarter of fiscal 2010, the Company held discussions with Nexeon management to understand the business status and outlook, valuations associated with potential new rounds of financing, operating metrics and other industry factors which impacted the Company’s assessment of the carrying value of this investment. As a result of its assessment, the Company recognized a $5.3 million impairment loss on this investment in fiscal 2010 as it was determined that the investment was other-than-temporarily impaired.

In August 2009, the Company invested $2.0 million in Vessix, and made a follow-on investment of $0.5 million in March 2010. The Company recognized an impairment loss on this investment totaling $2.4 million in fiscal 2010, based on market valuations and a pending financing round for this company. The Company’s investment in Vessix is accounted for under the cost method, as the Company’s ownership interest is less than 20% and the Company does not exert significant influence over Vessix’s operating or financial activities. Vessix was purchased by Boston Scientific Corporation in November 2012. The Company expects to record a gain of approximately $1.2 million on the sale of this investment in the first quarter of fiscal 2013 with total potential proceeds of $5.5 million over time depending on achievement of future milestones during the period 2013 to 2017. Another entity in which the Company had a strategic investment sold the majority of its assets in fiscal 2010, resulting in an impairment loss of $0.2 million to the Company in fiscal 2010. These investments are included in the category titled “Other” in the table above.

The total carrying value of cost method investments is reviewed quarterly for changes in circumstance or the occurrence of events that suggest the Company’s investment may not be recoverable. The fair value of cost method investments is not adjusted if there are no identified events or changes in circumstances that may have a material adverse effect on the fair value of the investment.

In the years ended September 30, 2012, 2011 and 2010, the Company recognized revenue of $0.1 million, $0.1 million and $1.5 million, respectively, from activity with companies in which it had a strategic investment.

Intangible Assets

Intangible assets consist principally of acquired patents and technology, customer relationships, licenses and trademarks. The Company recorded amortization expense of $0.7 million, $0.7 million and $0.8 million for the years ended September 30, 2012, 2011 and 2010, respectively.

In fiscal 2010, the Company recognized an asset impairment charge of $0.5 million associated with certain patent rights. Management applied the accounting guidance associated with long-lived assets and determined that an impairment occurred for these assets as no ongoing business was expected in the foreseeable future based on market conditions.

The asset impairment charges in fiscal 2010 are included in the asset impairment charges line in the consolidated statements of operations.

Intangible assets consisted of the following as of September 30 (in thousands):


	2012
	Weighted Average Original Life (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Definite-lived intangible assets:
Customer lists		9.0	$	4,857	$	(2,734	)	$	2,123
Core technology		8.0		530		(343	)		187
Patents and other		16.8		2,256		(716	)		1,540

Subtotal				7,643		(3,793	)		3,850
Unamortized intangible assets:
Trademarks				580		—			580

Total			$	8,223	$	(3,793	)	$	4,430


	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 September 30, 2012, estimated amortization expense for each of the next five fiscal years is as follows (in thousands):


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

Goodwill represents the excess of the cost of an acquired entity over the fair value assigned to the assets purchased and liabilities assumed in connection with a company’s acquisition. Goodwill is not amortized but is subject, at a minimum, to annual tests for impairment in accordance with accounting guidance for goodwill. The carrying amount of goodwill is evaluated annually, and between annual evaluations if events occur or circumstances change indicating that the carrying amount of goodwill may be impaired.

The Company has determined that its continuing reporting units are the In Vitro Diagnostics operations known as its In Vitro Diagnostics unit and which contains its BioFX branded products and the SurModics drug delivery and hydrophilic coatings operations known as the Medical Device unit. Goodwill in the In Vitro Diagnostics reporting unit resulted from the acquisition of BioFX Laboratories, Inc. (“BioFX”) in fiscal 2007. Inherent in the determination of fair value of the reporting units are certain estimates and judgments, including the interpretation of current economic indicators and market valuations as well as the Company’s strategic plans with regard to its operations.

The $8.0 million of goodwill at September 30, 2012 and 2011 is related to the In Vitro Diagnostics reporting unit and represents the gross value from the acquisition of BioFX in 2007. The Company performed its annual impairment test of goodwill as of August 31, 2012, and did not record any goodwill impairment charges during fiscal 2012 as there were no indicators of impairment associated with the In Vitro Diagnostics reporting unit. The Company also did not record any goodwill impairment charges related to the In Vitro Diagnostics reporting unit during fiscal 2011 or 2010.

The evaluation of goodwill for impairment in fiscal 2012 and 2011 was based on goodwill accounting guidance which was early adopted by the Company in the fourth quarter of fiscal 2011 (Step 0). The guidance involves assessment of qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test becomes unnecessary.

Prior to testing goodwill for impairment in fiscal 2010 the Company tested its definite-lived assets (property and equipment as well as intangible assets) under the provisions of the accounting guidance for impairment or disposal of long-lived assets, and determined that there were no impairments of these assets.

In fiscal 2010, the Company experienced a significant decrease in the Company’s stock price as it declined from $24.13 per share at October 1, 2009 to $12.03 per share at the date of the annual impairment test, which was August 31, 2010. While the Company continually evaluated whether any indications of impairment were present that would require an impairment analysis on an interim basis, no such indicators were considered present prior to the fourth quarter of fiscal 2010. Prior to the fourth quarter of fiscal 2010, based on the Company’s outlook for future results and the fact that the market capitalization exceeded the Company’s book value by a margin of 64% at June 30, 2010, Company management did not believe that the events and circumstances in existence at interim reporting dates indicated that it was more likely than not that the fair value of any of the Company’s reporting units would be less than its carrying amount.

In evaluating whether goodwill was impaired in fiscal 2010, the Company compared the fair value of its reporting units to which goodwill was assigned to their respective carrying values (Step 1 of the impairment test). In calculating fair value, the Company used the income approach as the primary indicator of fair value, with the market approach used as a test of reasonableness. The income approach is a valuation technique under which the Company estimates future cash flows using the reporting units’ financial forecasts. Future estimated cash flows are discounted to their present value to calculate fair value. The market approach establishes fair value by comparing SurModics to other publicly traded guideline companies or by analysis of actual transactions of similar businesses or assets sold. The income approach is tailored to the circumstances of the Company’s business, and the market approach is completed as a secondary test to ensure that the results of the income approach are reasonable and in line with comparable companies in the industry. The summation of the reporting units’ fair values was compared and reconciled to the Company’s market capitalization as of the date of the impairment test.

In the situation where a reporting unit’s carrying amount exceeds its fair value, the amount of the impairment loss must be measured. The measurement of the impairment (Step 2 of the impairment test) is calculated by determining the implied fair value of a reporting unit’s goodwill. In calculating the implied fair value of goodwill, the fair value of the reporting unit is allocated to all other assets and liabilities of that unit based on their fair values. The excess of the fair value of a reporting unit over the amount assigned to its other assets and liabilities is the implied fair value of goodwill. The goodwill impairment is measured as the excess of the carrying amount of goodwill over its implied fair value.

In estimating the fiscal 2010 fair value of the Company under the market approach, management considered the relative merits of commonly applied market capitalization multiples based on the availability of data. Based on the analysis, the Company utilized the guideline public company method to support the valuation of the reporting units in fiscal 2010.

Based on the goodwill analysis performed as of August 31, 2010, the excess in fair value over carrying value of the Company’s In Vitro Diagnostics reporting unit in Step 1 of the impairment test was approximately 82% and, as such, the $8.0 million of goodwill related to this reporting unit was not impaired.

Valuation of Long-Lived Assets

Accounting guidance requires the Company to evaluate periodically whether events and circumstances have occurred that may affect the estimated useful life or the recoverability of the remaining balance of long-lived assets, such as property and equipment and intangibles with finite lives. If such events or circumstances were to indicate that the carrying amount of these assets may not be recoverable, the Company would estimate the future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) were less than the carrying amount of the assets, the Company would recognize an impairment charge to reduce such assets to their fair value. See the Property and Equipment, Other Assets and Intangible Assets sections in Note 2 for further information on impairments that were recognized in fiscal 2012 and 2010. See also Note 3 for further information on impairments recognized in fiscal 2011 and 2010 associated with the Pharmaceuticals segment which are classified as discontinued operations.

Revenue Recognition

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

The Company derives its revenue from three primary sources: (1) royalties and license fees from licensing its patented drug delivery and surface modification technologies and in vitro diagnostic formats to customers; (2) the sale of reagent chemicals to licensees and the sale of stabilization products, antigens, substrates and surface coatings to the diagnostic and biomedical research markets; and (3) research and development fees generated on customer projects.

Taxes collected from customers and remitted to governmental authorities are excluded from revenue and amounted to $0.1 million for each of the years ended September 30, 2012, 2011 and 2010.

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.

Arrangements with multiple deliverables. Revenue arrangements with multiple deliverables have been accounted for based on accounting guidance in existence at the time the arrangement commences. Prior to October 1, 2009, arrangements such as license and development agreements were analyzed to determine whether the deliverables, which often include a license and performance obligations such as research and development, could be separated, or whether they must be accounted for as a single unit of accounting in accordance with accounting guidance.

In October 2009, the Financial Accounting Standards Board (“FASB”) amended the accounting standards for multiple deliverable revenue arrangements to:

(i) provide updated guidance on whether multiple deliverables exist, how the deliverables in an arrangement should be separated, and how the consideration should be allocated;

(ii) require an entity to allocate revenue in an arrangement using estimated selling prices (“ESP”) of deliverables if a vendor does not have vendor-specific objective evidence of selling price (“VSOE”) or third-party evidence of selling price (“TPE”); and

(iii) eliminate the use of the residual method and require an entity to allocate revenue using the relative selling price method.

The Company elected to early adopt this accounting guidance at the beginning of its first quarter of fiscal 2010, on a prospective basis, for applicable transactions originating or materially modified on or after October 1, 2009. In connection with the adoption of the amended accounting standard the Company also changed its policy prospectively for multiple element arrangements, whereby the Company accounts for revenue using a multiple attribution model in which consideration allocated to research and development activities is recognized as performed, and milestone payments are recognized when the milestone events are achieved, when such activities and milestones are deemed substantive. Accordingly, in situations where a unit of accounting includes both a license and research and development activities, and when a license does not have stand-alone value, the Company applies a multiple attribution model in which consideration allocated to the license is recognized ratably, consideration allocated to research and development activities is recognized as performed and milestone payments are recognized when the milestone events are achieved, when such activities and milestones are deemed substantive.

The Company enters into license and development arrangements that may consist of multiple deliverables which could include a license(s) to SurModics’ technology, research and development activities, manufacturing services, and product sales based on the needs of its customers. For example, a customer may enter into an arrangement to obtain a license to SurModics’ intellectual property which may also include research and development activities, and supply of products manufactured by SurModics. For these services provided, SurModics could receive upfront license fees upon signing of an agreement and granting the license, fees for research and development activities as such activities are performed, milestone payments contingent upon advancement of the product through development and clinical stages to successful commercialization, fees for manufacturing services and supply of product, and royalty payments based on customer sales of product incorporating SurModics’ technology. The Company’s license and development arrangements generally do not have refund provisions if the customer cancels or terminates the agreement. Typically all payments made are non-refundable.

Under the accounting guidance, the Company is still required to evaluate each deliverable in a multiple element arrangement for separability. The Company is then required to allocate revenue to each separate deliverable using a hierarchy of VSOE, TPE, or ESP. In many instances, the Company is not able to establish VSOE for all deliverables in an arrangement with multiple elements. This may be a result of the Company infrequently selling each element separately or having a limited history with multiple element arrangements. When VSOE cannot be established, the Company attempts to establish a selling price of each element based on TPE. TPE is determined based on competitor prices for similar deliverables when sold separately.

When the Company is unable to establish a selling price using VSOE or TPE, the Company uses ESP in its allocation of arrangement consideration. The objective of ESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. ESP is generally used for highly customized offerings.

The Company determines ESP for undelivered elements by considering multiple factors including, but not limited to, market conditions, competitive landscape and past pricing arrangements with similar features. The determination of ESP is made through consultation with the Company’s management, taking into consideration the marketing strategies for each business unit.

Deferred Revenue

Amounts received prior to satisfying the above revenue recognition criteria are recorded as deferred revenue in the accompanying consolidated balance sheets, with deferred revenue to be recognized beyond one year being classified as non-current deferred revenue. As of September 30, 2012 and 2011, the Company had deferred revenue of $0.2 million and $0.3 million, respectively.

Customer advances are accounted for as a liability until all criteria for revenue recognition have been met.

Customer Concentrations

The Company’s licensed technologies provide royalty revenue, which represents the largest revenue stream to the Company. The Company has licenses with a diverse base of customers and certain customers have multiple products using the Company’s technology. Medtronic, Inc. (“Medtronic”) is the Company’s largest customer at 19% of total revenue for fiscal 2012. Medtronic has several separately licensed products that generate royalty revenue for SurModics, none of which represented more than 6% of SurModics’ total revenue. No other individual customer using licensed technology constitutes more than 10% of SurModics’ total revenue. The Company has seen a significant decrease in its royalty revenue from Cordis Corporation, a subsidiary of Johnson & Johnson (“Cordis”) in fiscal 2012. Cordis has historically been one of the Company’s largest customers. In June 2011, Cordis announced it was ceasing production of the CYPHER^® and CYPHER SELECT^® Plus stents by the end of calendar 2011. Beginning with the first quarter of fiscal 2012, the minimum royalty requirements were eliminated and royalty revenue from Cordis is now based on a percentage of CYPHER ^® sales, if any, until the products are no longer sold.

The Company’s licensing agreements with many of its customers, including most of its significant customers, cover many licensed products that each separately generates royalty revenue. This structure reduces the potential risk to the Company’s operations that may result from reduced sales (or the termination of a license) of a single product for any specific customer.

Research and Development

Research and development costs are expensed as incurred. Some research and development costs are related to third-party contracts, and the related revenue is recognized as described in “Revenue Recognition” above. Costs associated with customer-related research and development include specific project direct labor costs and material expenses as well as an allocation of overhead costs based on direct labor dollars.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Ultimate results could differ from those estimates.

Income (Loss) Per Share Data

Basic income (loss) per common share is calculated based on the weighted average number of common shares outstanding during the period. Diluted income (loss) per common share is computed by dividing income (loss) by the weighted average number of common and common equivalent shares outstanding during the period. The Company’s only potentially dilutive common shares are those that result from dilutive common stock options and non-vested stock relating to restricted stock awards.

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


	2012		2011		2010
Basic weighted average shares outstanding		17,318		17,419		17,372
Dilutive effect of outstanding stock options and non-vested stock		113		43		8

Diluted weighted average shares outstanding		17,431		17,462		17,380

The calculation of weighted average diluted shares outstanding excludes outstanding stock options associated with the right to purchase 0.6 million, 1.1 million and 1.5 million shares of common stock for fiscal 2012, 2011 and 2010, respectively, as their inclusion would have had an antidilutive effect on diluted income (loss) per share.

New Accounting Pronouncements

In June 2011, the 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 became 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 that 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

12 Months Ended

Sep. 30, 2012

Discontinued Operations [Abstract]

Discontinued Operations

3.	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 the majority of liabilities associated with SurModics Pharmaceuticals 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, 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 SurModics Pharmaceuticals, 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. (“PR Pharma”) SurModics 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.

As part of the Pharma Sale, the Company recorded a loss on the sale in fiscal 2012 of $1.7 million ($1.1 million net of income tax benefit), which was principally related to transaction closing costs. The loss is included in “Loss on sale of discontinued operations” in the consolidated statements of operations.

In the fourth quarter of fiscal 2011, the Company recognized asset impairment charges totaling $28.1 million (fixed assets of $23.3 million and intangibles of $4.8 million), associated with its Pharmaceuticals segment. The Company recorded a $23.3 million asset impairment charge associated with writing down its facilities in Alabama to fair value based on the current valuation of the Company’s SurModics Pharmaceuticals assets relative to their carrying value (the entire $23.3 million related to Buildings and improvements). The Company recorded a $4.8 million asset impairment charge associated with writing down its SurModics Pharmaceuticals intangibles to fair value based on the current valuation of such 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.

The Company recorded goodwill of $13.8 million associated with the acquisition of SurModics Pharmaceuticals in fiscal 2007 and an additional $5.7 million associated with milestone events in fiscal 2011. The aggregate goodwill amount of $19.5 million was impaired in fiscal 2010 and 2011 as described below.

The Company recognized a goodwill impairment charge of $5.7 million in the first quarter of fiscal 2011 associated with its SurModics Pharmaceuticals reporting unit. Two milestone events were achieved associated with the July 2007 acquisition of SurModics Pharmaceuticals and $5.7 million of additional purchase price was recorded as an increase to goodwill. There had been no substantial changes in operating results for SurModics Pharmaceuticals in the first quarter of fiscal 2011 when compared with fiscal 2010, and, as such, the Company concluded that the goodwill associated with the milestone events was fully impaired.

In fiscal 2010, the Company recorded a $1.9 million asset impairment charge associated with writing down one of its facilities in Alabama to fair value based on a decision to sell the facility, which decision was reversed later in fiscal 2010 ($0.5 million related to Land, $1.2 million related to Building and improvements and $0.2 million related to Laboratory fixtures and equipment).

During the Company’s annual test of goodwill as of August 31, 2010, the Company determined that the goodwill related to its SurModics Pharmaceuticals reporting unit was fully impaired and it recognized a goodwill impairment charge of $13.8 million. The goodwill impairment in fiscal 2010 reflected a significant decline in the estimated fair value of the Company’s SurModics Pharmaceuticals reporting unit, which resulted from a slowdown in business activity which was most pronounced in the fourth quarter of fiscal 2010, higher operating costs with the cGMP manufacturing facility, and a significant decrease in the Company’s stock price during fiscal 2010. The stock price declined from $24.13 per share at October 1, 2009 to $12.03 at the date of the annual impairment test, which was August 31, 2010. While the Company continually evaluated whether any indications of impairment were present which would require an impairment analysis on an interim basis, no such indicators were considered present prior to the fourth quarter of fiscal 2010.

All results of operations, cash flows, assets and liabilities of SurModics Pharmaceuticals for all periods presented are classified as discontinued operations, and the 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 for the years ended September 30 is as follows (in thousands):


	2012			2011			2010
Total revenue	$	5,297		$	15,109		$	15,715

Income (loss) from discontinued operations	$	2,309		$	(43,197	)	$	(26,043	)
Income tax (provision) benefit		(1,133	)		13,766			4,549

Income (loss) from discontinued operations, net of income taxes	$	1,176		$	(29,431	)	$	(21,494	)

Loss on sale of discontinued operations	$	(1,691	)	$	—		$	—
Income tax benefit		617			—			—

Loss on sale of discontinued operations, net of income taxes	$	(1,074	)	$	—		$	—

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


	2012		2011
Accounts receivable, net	$	283	$	3,309
Inventories		—		969
Other current assets		600		1,705

Current assets of discontinued operations		883		5,983
Property and equipment, net		—		24,911
Intangible assets, net		—		3,683
Other assets, net		—		3,917

Total assets of discontinued operations	$	883	$	38,494

Accounts payable	$	—	$	849
Accrued liabilities — compensation		—		1,522
Deferred revenue		—		550
Other current liabilities		1,640		2,428

Current liabilities of discontinued operations		1,640		5,349
Deferred revenue, less current portion		—		3,371
Other long-term liabilities		—		120

Total liabilities of discontinued operations	$	1,640	$	8,840

The assets and liabilities of discontinued operations as of September 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 Note 9 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

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

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1510-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759

Reference 6: 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 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2443-110228

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43-48
-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

Fair Value Measurements

12 Months Ended

Sep. 30, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

4.	Fair Value Measurements

The accounting guidance on fair value measurements defines fair value, establishes a framework for measuring fair value under GAAP, and expands disclosures about fair value measurements. The guidance is applicable for all financial assets and financial liabilities and for all nonfinancial assets and nonfinancial liabilities recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). Fair value is defined as the exchange price that would be received from selling an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and also considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of nonperformance.

Fair Value Hierarchy

Accounting guidance on fair value measurements requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories:

Level 1 — Quoted (unadjusted) prices in active markets for identical assets or liabilities.

The Company’s Level 1 asset consists of its investment in OctoPlus (see Note 2 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.

There were no Level 3 assets at September 30, 2012. The Company’s Level 3 assets at September 30, 2011 included certain asset-backed and mortgage-backed securities. The fair market values of these investments were determined by broker pricing where not all significant inputs were observable.

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 September 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 September 30, 2012
Assets:
Cash equivalents	$	—	$	5,101	$	—	$	5,101
Available-for-sale debt securities:
U.S. government and government agency obligations		—		28,854		—		28,854
Mortgage-backed securities		—		2,999		—		2,999
Municipal bonds		—		3,213		—		3,213
Asset-backed securities		—		598		—		598
Corporate bonds		—		6,886		—		6,886
Other assets		718		—		—		718

Total assets measured at fair value	$	718	$	47,651	$	—	$	48,369

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

The consolidated balance sheets include held-to-maturity investments totaling $3.0 million as of September 30, 2011. Held-to-maturity investments are carried at amortized cost. These investments matured during fiscal 2012.

Valuation Techniques

The valuation techniques used to measure the fair value of assets are as follows:

Cash equivalents — These assets are classified as Level 2 and are carried at historical cost which is a reasonable estimate of fair value because of the relatively short time between origination of the instrument and its expected realization.

Available-for-sale debt securities — These securities are classified as Level 2 and include various types of debt securities. These securities are valued based on quoted vendor prices in active markets underlying the securities.

Other assets — This asset is classified as Level 1 and represents the Company’s investment in OctoPlus. This investment is valued based on the quoted market price of OctoPlus shares.

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

The following tables provide a reconciliation of fiscal 2012 and 2011 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 year values.


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

Balance at September 30, 2012	$	—		$	—		$	—


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the Year Ended September 30, 2011 Available-for-Sale Debt Securities
	U.S. Government Obligations			Mortgage- Backed Securities			Asset- Backed Securities			Total
Balance at September 30, 2010	$	704		$	69		$	—		$	773
Transfers into Level 3		—			17			14			31
Transfers out of Level 3		(695	)		(68	)		—			(763	)
Total realized and unrealized gains (losses):
Included in other comprehensive income (loss)		19			(3	)		(3	)		13
Purchases		—			620			—			620
Issuances		—			—			—			—
Sales		(28	)		(620	)		(2	)		(650	)
Settlements		—			—			—			—

Balance at September 30, 2011	$	—		$	15		$	9		$	24

As of September 30, 2011, marketable securities measured at fair value using Level 3 inputs comprised less than $50,000 and included one asset-backed security and one mortgage-backed security within the Company’s available-for-sale investment portfolio. These securities were measured using observable market data and Level 3 inputs as a result of the lack of market activity and liquidity. The fair value of these securities was based on the Company’s assessment of the underlying collateral and the creditworthiness of the issuer of the securities. During fiscal 2012, these securities were reclassified from Level 3 to Level 2. During fiscal 2012, readily determinable market prices allowed for the securities to be properly measured and the securities were reclassified to Level 2.

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The Company’s investments in non-marketable securities of private companies are accounted for using the cost method as the Company does not exert significant influence over the investees’ operating or financial activities. These investments, as well as held-to-maturity securities, are measured at fair value on a non-recurring basis when they are deemed to be other-than-temporarily impaired. In determining whether a decline in value of non-marketable equity investments in private companies has occurred and is other than temporary, an assessment is made by considering available evidence, including the general market conditions in the investee’s industry, the investee’s product development status and subsequent rounds of financing and the related valuation and/or the Company’s participation in such financings. The Company also assesses the investee’s ability to meet business milestones and the financial condition and near-term prospects of the individual investee, including the rate at which the investee is using its cash and the investee’s need for possible additional funding at a potentially lower valuation. The valuation methodology for determining the decline in value of non-marketable equity securities is based on inputs that require management judgment and are Level 3 inputs.

In the fourth quarter of fiscal 2011, the Company recognized asset impairment charges totaling $28.1 million, writing down long-lived assets (fixed assets of $23.3 million and intangibles of $4.8 million) which are presented as part of the discontinued operations associated with the Pharmaceuticals segment. The Company wrote down these long-lived assets to $30.0 million based on the current valuation of the assets relative to their carrying value. The valuation methodology for determining the decline in value of long-lived assets is based on inputs that require management judgment and are Level 3 inputs. See Note 3 for further information.

The Company wrote down three investments totaling $7.9 million in the year ended September 30, 2010, as the investments were deemed to be other-than-temporarily impaired. A pending round of financing at a substantially lower valuation at one of the private companies resulted in impairment loss of $2.4 million. Another company sold off assets in light of current market conditions and this action resulted in an impairment loss of $0.2 million. In addition, an impairment loss of $5.3 million was recognized related to a third company, which continues to face operational and financing difficulties and potential rounds of future financing at lower valuations. Management utilized Level 3 inputs which included information about pending financings as well as market input to determine the fair value of these investments.

The Company also recognized long-lived asset impairment charges totaling $4.9 million in fiscal 2010 ($3.0 million in continuing operations and $1.9 million in discontinued operations). Fair value measurements used in the impairment reviews of property and equipment and intangible assets are Level 3 measurements that require management judgment. The Company recorded a $1.3 million asset impairment charge in fiscal 2010 associated with certain long-lived assets where no ongoing business was expected in the foreseeable future based on current market conditions. Furthermore, a $1.3 million asset impairment charge associated with certain fixed asset costs located in Minnesota and a $0.4 million asset impairment charge associated with prototypes and other equipment related to a development project for which no ongoing business was expected in the foreseeable future in light of market conditions were also recognized. The assets associated with these charges had limited remaining value and, as such, were written down to zero value.

The Company recorded an asset impairment charge, included in discontinued operations, totaling $1.9 million associated with writing down one of its facilities in Alabama to fair value based on a decision to sell the facility, which decision was reversed later in fiscal 2010. The $2.1 million carrying value of this Alabama facility was based on a real estate market appraisal obtained during the year. The fair value was determined to be a Level 3 measurement that required management judgment.

See Note 2 for additional information related to these impairments. See also Note 3 for further information related to the discontinued operations impairments.

- 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
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
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-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13504-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-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
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-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
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-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
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
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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

Stockholders' Equity

12 Months Ended

Sep. 30, 2012

Stockholders' Equity [Abstract]

Stockholders' Equity

5.	Stockholders’ Equity

Repurchase of Common Stock

Shares are repurchased from time to time to support the Company’s stock-based compensation programs and to return capital to stockholders. In November 2007, the Company’s Board of Directors authorized the repurchase of up to $35.0 million of the Company’s outstanding common stock in open-market transactions, private transactions, tender offers or other transactions. In addition, in May 2012, the Board of Directors authorized the repurchase of up to an additional $50.0 million of the Company’s outstanding common stock through open-market purchases, private transactions, block trades, accelerated share repurchase transactions, tender offers, or by any combination of such methods. Under the November 2007 and May 2012 authorizations, the Company had $55.3 million available for repurchases as of June 30, 2012. On August 6, 2012, the Company commenced a “modified Dutch auction” 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 expired on September 5, 2012, resulting in the repurchase of $55.0 million in value of common stock, consisting of 2,894,253 shares at a price of $19.00 per share. As of September 30, 2012, pursuant to the November 2007 authorization, the Company had used the entire amount authorized and repurchased a cumulative 1,303,240 shares at an average price of $26.86 per share. Under the May 2012 authorization, the Company has $0.3 million available for future share repurchases as of September 30, 2012. The repurchase authorization does not have a fixed expiration date. The Company accounts for repurchases of common stock using the par value method.

During fiscal 2012, the Company repurchased 2,894,253 shares of common stock for a total of $55.0 million under the November 2007 and May 2012 authorizations. During fiscal 2011, the Company did not repurchase any common stock.

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
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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 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 505
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Section B
-Paragraph 7, 11A
-Chapter 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 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-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 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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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 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
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-Section E

Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
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Reference 21: http://www.xbrl.org/2003/role/presentationRef
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-Name Staff Accounting Bulletin (SAB)
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Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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Reference 23: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

Stock-Based Compensation Plans

12 Months Ended

Sep. 30, 2012

Stock-Based Compensation Plans [Abstract]

Stock-Based Compensation Plans

6.	Stock-Based Compensation Plans

The Company has stock-based compensation plans under which it grants stock options, restricted stock awards 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 for the years ended September 30 were allocated to the following expense categories (in thousands):


	2012		2011		2010
Product costs	$	35	$	79	$	60
Research and development		511		1,156		2,466
Selling, general and administrative		2,125		2,415		2,061

Total continuing operations		2,671		3,650		4,587
Discontinued operations		62		602		1,288

Total stock-based compensation expense	$	2,733	$	4,252	$	5,875

As of September 30, 2012, approximately $2.9 million of total unrecognized compensation costs related to non-vested awards is expected to be recognized over a weighted average period of approximately 2.7 years. The unrecognized compensation costs include $0.8 million associated with performance share awards that are currently anticipated to be fully expensed because the performance conditions are 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 values of stock options granted during fiscal 2012, 2011 and 2010 were $5.26, $3.96, and $6.78, respectively. The assumptions used as inputs in the model for the years ended September 30 were as follows:


	2012			2011			2010
Risk-free interest rates		0.82	%		1.45	%		1.95	%
Expected life		4.8 years			4.8 years			4.8 years
Expected volatility		50	%		45	%		41	%
Dividend yield		0	%		0	%		0	%

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

The Company’s Incentive Stock Options (“ISO”) are granted at a price of at least 100% of the fair market value of the common stock of the Company on the date of the grant or 110% with respect to optionees who own more than 10% of the total combined voting power of all classes of stock. ISOs generally expire in seven years or upon termination of employment and generally are exercisable at a rate of 20% per year commencing one year after the date of grant. 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. Shareholders approved the 2009 Equity Incentive Plan (“2009 Plan”) at the February 8, 2010 Annual Meeting of Shareholders. The 2009 Plan has 1,500,000 shares authorized, plus the number of shares that have not yet been awarded under the 2003 Equity Incentive Plan, or were awarded and subsequently returned to the pool of available shares under the 2003 Equity Incentive Plan pursuant to its terms. At September 30, 2012, there were 1,448,000 shares available for future awards. As of September 30, 2012, the aggregate intrinsic value of the option shares outstanding and option shares exercisable was $6.2 million and $1.0 million, respectively. At September 30, 2012, the average remaining contractual life of options outstanding and options exercisable was 4.3 and 3.2 years, respectively. The total pre-tax intrinsic value of options exercised during fiscal 2012 was $0.1 million. 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. There were no stock options exercised in fiscal 2011. There was no intrinsic value associated with options exercised during fiscal 2010 as the Company’s stock price of $11.92 per share on September 30, 2010 was below the value of options exercised.

The following table summarizes all stock options activity and stock options outstanding and exercisable under the stock option plans during fiscal 2012, 2011 and 2010:


	Number of Shares			Weighted Average Exercise Price
Outstanding at September 30, 2009		1,669,570		$	32.82
Granted		388,635			22.88
Exercised		(20,350	)		20.74
Forfeited		(545,534	)		30.58

Outstanding at September 30, 2010		1,492,321		$	31.22
Granted		551,773			9.96
Exercised		—			—
Forfeited		(528,906	)		25.15

Outstanding at September 30, 2011		1,515,188		$	25.59
Granted		299,832			12.46
Exercised		(11,379	)		10.03
Forfeited		(478,203	)		29.76

Outstanding at September 30, 2012		1,325,438		$	21.25

Exercisable at September 30, 2012		661,006		$	29.67

The table above includes stock options activity related to discontinued operations, however, there were no stock options outstanding or exercisable related to discontinued operations as of September 30, 2012.

Restricted Stock Awards

The Company has entered into restricted stock agreements with certain key employees, covering the issuance of common stock (“Restricted Stock”). Under accounting guidance these shares are considered to be non-vested shares. The Restricted Stock is released to the key employees if they are employed by the Company at the end of the vesting period. Compensation has been recognized for the estimated fair value of the common shares and is being charged to income over the vesting term. The stock-based compensation table above includes Restricted Stock expenses recognized related to these awards, which totaled $0.2 million, $0.6 million and less than $0.1 million during fiscal 2012, 2011 and 2010, respectively.

The following table summarizes all restricted stock awards activity during fiscal 2012, 2011 and 2010:


	Number of Shares			Weighted Average Grant Price
Balance at September 30, 2009		100,895		$	35.80
Granted		30,440			18.49
Vested		(83,195	)		36.32
Forfeited		(7,068	)		33.39

Balance at September 30, 2010		41,072		$	22.33
Granted		66,533			10.01
Vested		(23,978	)		19.38
Forfeited		(11,000	)		20.79

Balance at September 30, 2011		72,627		$	12.25
Vested		(67,627	)		11.52
Forfeited		(1,000	)		22.35

Balance at September 30, 2012		4,000		$	22.11

The table above includes restricted stock awards activity related to discontinued operations, however, there were no restricted stock awards outstanding related to discontinued operations as of September 30, 2012.

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. Performance objectives selected by the Organization and Compensation Committee of the Board of Directors (the “Committee”) were cumulative earnings per share and cumulative revenue for the three-year performance periods beginning on October 1, 2010 and ending on September 30, 2013 and beginning on October 1, 2011 and ending on September 30, 2014. Shares will be issued to participants as soon as practicable following the end of the performance periods subject to Committee approval and verification of results. The compensation cost related to the number of shares to be granted under each performance period is fixed on the grant date, which is the date the performance period begins. 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. In fiscal 2012, the Company recognized expense of $1.0 million related to likely achievement of performance objectives for three-year Performance Shares granted in fiscal 2012 (62,497 shares) and fiscal 2011 (68,533 shares). In fiscal 2011, the Company recognized expense of $0.2 million related to 68,533 three-year Performance Shares awarded in fiscal 2011. In fiscal 2010, the Company recognized expense of less than $0.1 million related to specific performance objectives achieved by certain individuals. The Company did not recognize any expense in fiscal 2012, 2011 or 2010 related to three-year Performance Shares granted in fiscal 2010 (4,373 shares) as the performance objectives were not met. The stock-based compensation table above includes the Performance Shares expenses.

The fair values of the Performance Shares, at target, were $0.8 million and $0.7 million for grants awarded in fiscal 2012 and 2011, respectively.

The aggregate number of shares that could be awarded to key employees if the minimum, target and maximum performance goals are met, based upon the fair value at the date of grant is as follows:


Performance Period	Minimum Shares		Target Shares		Maximum Shares
Fiscal 2011 — 2013		13,707		68,533		137,066
Fiscal 2012 — 2014		12,499		62,497		124,994

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 September 30, 2012 and 2011, there were less than $0.1 million of employee contributions in each period included in accrued liabilities in the consolidated balance sheets. Stock compensation expense recognized related to the Stock Purchase Plan totaled less than $0.1 million, $0.1 million and $0.2 million, during fiscal 2012, 2011 and 2010, respectively. 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
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 4
-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

12 Months Ended

Sep. 30, 2012

Restructuring Charges [Abstract]

Restructuring Charges

7.	Restructuring Charges

During the fiscal year ended September 30, 2012, the Company did not incur any restructuring charges. The charges for fiscal 2011 and 2010 described below have been presented separately as restructuring charges in the consolidated statements of operations. In addition, all restructuring costs related to SurModics Pharmaceuticals are included in discontinued operations and totaled $0.6 million in fiscal 2011 and $0.1 million in fiscal 2010. The following information in this footnote pertains to continuing operations only.

In August 2011 (fiscal 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 10% 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 (fiscal 2011), 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 its customer environment. As a result of the organizational change, the Company eliminated approximately 8% 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.

In March 2010 (fiscal 2010), the Company announced an organizational change designed to support future growth by better meeting customer needs and leveraging its multiple competencies across the organization. As a result of the reorganization, the Company eliminated approximately 5% of the Company’s workforce. These employee terminations occurred across various functions and the reorganization plan was completed by the end of the third quarter of fiscal 2010. The Company also vacated and subleased its leased sales office in Irvine, California as part of the reorganization plan. The leased space was vacated by the Company by March 31, 2010. The Company recorded total pre-tax restructuring charges of approximately $1.2 million in connection with the fiscal 2010 reorganization, which consisted of $0.8 million of severance pay and benefits expenses and $0.4 million of facility-related costs.

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

The following table summarizes the restructuring accrual activity (in thousands):


	Employee Severance and Benefits			Facility- Related Costs			Total
Balance at September 30, 2009	$	—		$	955		$	955
Accruals during the year		764			440			1,204
Cash payments		(760	)		(216	)		(976	)

Balance at September 30, 2010	$	4		$	1,179		$	1,183
Accruals during the year		1,616			—			1,616
Cash payments		(890	)		(929	)		(1,819	)

Balance at September 30, 2011	$	730		$	250		$	980
Accruals during the year		—			—			—
Cash payments		(720	)		(68	)		(788	)

Balance at September 30, 2012	$	10		$	182		$	192

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 on the consolidated balance sheet as of September 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 Taxes

12 Months Ended

Sep. 30, 2012

Income Taxes [Abstract]

Income Taxes

8.	Income Taxes

The Company accounts for income taxes under the asset and liability method prescribed in accounting guidance. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the period in which related temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in this assessment. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date of such change.

Income taxes from continuing operations in the accompanying consolidated statements of operations for the fiscal years ended September 30 are as follows (in thousands):


	2012			2011			2010
Current provision:
Federal	$	6,615		$	6,011		$	6,708
State and foreign		290			765			408

Total current provision		6,905			6,776			7,116

Deferred (benefit) provision :
Federal		(835	)		(652	)		(1,883	)
State		107			(520	)		(254	)

Total deferred (benefit) provision		(728	)		(1,172	)		(2,137	)

Total provision	$	6,177		$	5,604		$	4,979

The reconciliation of the difference between amounts calculated at the statutory federal tax rate of 35% for the fiscal years ended September 30 and the Company’s effective tax rate from continuing operations is as follows (in thousands):


	2012			2011			2010
Amount at statutory federal income tax rate	$	5,707		$	5,785		$	1,884
Change because of the following items:
State taxes		236			412			121
Stock-based compensation		36			(7	)		255
Valuation allowance		303			21			2,780
Other		(105	)		(607	)		(61	)

Income tax provision	$	6,177		$	5,604		$	4,979

The Company recorded an income tax expense from discontinued operations of $1.1 million for fiscal 2012 and an income tax benefit from discontinued operations of $13.8 million and $4.5 million for fiscal 2011 and 2010, respectively. The Company recorded an income tax benefit of $0.6 million from the sale of discontinued operations for fiscal 2012.

The components of deferred income taxes consisted of the following as of September 30 and result from differences in the recognition of transactions for income tax and financial reporting purposes (in thousands):


	2012			2011
Depreciable assets	$	1,146		$	827
Deferred revenue		85			101
Accruals and reserves		362			566
Stock-based compensation		3,883			6,927
Impaired investments		6,455			6,151
Unrealized (gains) losses on investments		(131	)		96
Other		755			718
Valuation allowance		(6,530	)		(6,227	)

Total deferred tax assets		6,025			9,159
Less current deferred tax assets		(219	)		(327	)

Noncurrent deferred tax assets	$	5,806		$	8,832

In fiscal 2012 and 2011, the Company recorded valuation allowances of $0.3 million and less than $0.1 million, respectively, related to deferred tax assets. The fiscal 2012 and 2011 valuation allowances relate to deferred tax assets associated with potential capital losses created by the impairment of certain of the Company’s investments.

Unrecognized tax benefits are the differences between a tax position taken, or expected to be taken in a tax return, and the benefit recognized for accounting purposes pursuant to accounting guidance. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):


	2012			2011			2010
Beginning of fiscal year	$	1,564		$	1,948		$	2,042
Increases in tax positions for prior years		5			3			—
Decreases in tax positions for prior years		(3	)		(85	)		(104	)
Increases in tax positions for current year		72			55			92
Settlements with taxing authorities		—			(53	)		—
Lapse of the statute of limitations		(203	)		(304	)		(82	)

End of fiscal year	$	1,435		$	1,564		$	1,948

The total amount of unrecognized tax benefits including interest and penalties that, if recognized, would affect the effective tax rate as of September 30, 2012, 2011 and 2010, respectively, are $1.4 million, $1.6 million and $1.9 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 consolidated balance sheets in other long-term liabilities. Interest and penalties related to unrecognized tax benefits are recorded in income tax expense. As of September 30, 2012, 2011 and 2010, a gross balance of $0.8 million, $0.7 million and $0.7 million, respectively, has been accrued related to the unrecognized tax benefits balance for interest and penalties.

The Company files income tax returns, including returns for its subsidiaries, in the U.S. federal jurisdiction and in various state jurisdictions. 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 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

+ Details

Commitments and Contingencies

12 Months Ended

Sep. 30, 2012

Commitments and Contingencies [Abstract]

Commitments and Contingencies

9.	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 consolidated statements of operations. 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. Following the Pharma Sale, the Company remains responsible for this litigation and has agreed to indemnify Evonik against certain losses, including those that may be incurred in connection with this litigation.

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. The Company has not recorded any accrual for this contingency as of September 30, 2012 as the milestones have not been achieved and the probability of achievement is low.

PR Pharmaceuticals, Inc. In November 2008, the Company’s SurModics Pharmaceuticals subsidiary acquired certain contracts and assets of PR Pharma to enhance its portfolio of drug delivery technologies for the pharmaceutical and biotechnology industries. The sellers of PR Pharma 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 SurModics Pharmaceuticals. 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 in November 2011. As of September 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 consolidated balance sheet as of September 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.

Operating Leases. The Company leases certain facilities under noncancelable operating lease agreements. Rent expense for the years ended September 30, 2012, 2011 and 2010 was $0.1 million, $0.2 million, and $0.2 million, respectively. Annual commitments pursuant to operating lease agreements are as follows (in thousands):


Year Ended September 30,
2013	$	61
2014		62
2015		64
2016		16

Total minimum lease payments	$	203

- 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

Defined Contribution Plan

12 Months Ended

Sep. 30, 2012

Defined Contribution Plan [Abstract]

Defined Contribution Plan

10.

Defined Contribution Plan

The Company has a 401(k) retirement and savings plan for the benefit of qualifying employees. The Company matches 50% of employee contributions on the first 6% of eligible compensation. Company contributions totaling $0.2 million, $0.3 million, and $0.1 million have been expensed for the years ended September 30, 2012, 2011 and 2010, respectively.

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Implementation Guide (Q and A)
-Number FAS88
-Paragraph 63
-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 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph 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 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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Reference 5: 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 6: 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 7: 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 8: 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 9: 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 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
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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.

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-Number 158
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-Publisher AICPA
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-Number 30
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+ Details

Operating Segments

12 Months Ended

Sep. 30, 2012

Operating Segments [Abstract]

Operating Segments

11.

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 who is the Company’s Chief Executive Officer, 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. 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 protein stabilization reagents, substrates, antigens and surface coatings.

The tables below present segment revenue, operating income from continuing operations and depreciation and amortization, for the years ended September 30, as follows (in thousands):


	2012			2011			2010
Revenue:
Medical Device	$	37,883		$	39,606		$	43,294
In Vitro Diagnostics		14,045			13,150			11,194

Total revenue	$	51,928		$	52,756		$	54,488

Operating income (loss):
Medical Device	$	18,431		$	19,997		$	19,461
In Vitro Diagnostics		4,542			4,314			3,296
Corporate		(6,631	)		(8,788	)		(10,766	)

Total operating income from continuing operations	$	16,342		$	15,523		$	11,991

Depreciation and amortization:
Medical Device	$	1,414		$	1,604		$	2,136
In Vitro Diagnostics		774			799			828
Corporate		741			756			656

Total depreciation and amortization	$	2,929		$	3,159		$	3,620

Segment results above for fiscal 2012 include costs of $0.5 million in Corporate associated with the “modified Dutch auction” tender offer.

Segment results above for fiscal 2011 include restructuring charges of $1.6 million in Corporate. There were no restructuring charges for the year ended September 30, 2012.

Segment results above for fiscal 2010 include restructuring charges of $1.2 million and asset impairment charges of $3.0 million in Corporate.

The Corporate category includes expenses for administrative corporate functions, such as executive, corporate accounting, legal, human resources and Board related, that have not been fully allocated to the Medical Device and In Vitro Diagnostics segments. Corporate also includes one-time 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.

Major Customers

Revenue from customers that equaled or exceeded 10% of total revenue was as follows for the years ended September 30:


	2012			2011			2010
Medtronic		19	%		18	%		16	%
Johnson & Johnson		**			16	%		22	%

**	-less than 10%

The revenue from the customers listed is derived from all three primary sources: licensing, product sales, and research and development.

Geographic Revenue

Geographic revenue was as follows for the years ended September 30:


	2012			2011			2010
Domestic		79	%		73	%		79	%
Foreign		21	%		27	%		21	%

- 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

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 8: http://www.xbrl.org/2003/role/presentationRef
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-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
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-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

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-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-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

Quarterly Financial Data (Unaudited)

12 Months Ended

Sep. 30, 2012

Quarterly Financial Data (Unaudited) [Abstract]

Quarterly Financial Data (Unaudited)

12.

Quarterly Financial Data (Unaudited)

The following is a summary of the unaudited quarterly results for the years ended September 30, 2012 and 2011 (in thousands, except per share data).


	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Fiscal 2012
Total revenue	$	11,916		$	12,210		$	13,959		$	13,843
Operating income from continuing operations		3,222			3,689			4,793			4,638
Income from continuing operations		2,155			1,946			3,174			2,854
Income (loss) from discontinued operations		551			(223	)		(112	)		(114	)
Net income		2,706			1,723			3,062			2,740
Basic income (loss) per share(1):
Continuing operations		0.12			0.11			0.18			0.17
Discontinued operations		0.03			(0.01	)		(0.01	)		(0.01	)
Net income		0.15			0.10			0.17			0.16
Diluted income (loss) per share(1):
Continuing operations		0.12			0.11			0.18			0.17
Discontinued operations		0.03			(0.01	)		(0.01	)		(0.01	)
Net income		0.15			0.10			0.17			0.16
Fiscal 2011
Total revenue	$	12,522		$	13,334		$	12,999		$	13,901
Operating income from continuing operations		4,121			4,212			4,257			2,933
Income from continuing operations		2,860			2,824			3,051			2,190
(Loss) income from discontinued operations		(9,031	)		(336	)		791			(20,855	)
Net (loss) income		(6,171	)		2,488			3,842			(18,665	)
Basic income (loss) per share(1):
Continuing operations		0.16			0.16			0.17			0.13
Discontinued operations		(0.52	)		(0.02	)		0.05			(1.20	)
Net (loss) income		(0.36	)		0.14			0.22			(1.07	)
Diluted income (loss) per share(1):
Continuing operations		0.16			0.16			0.17			0.13
Discontinued operations		(0.52	)		(0.02	)		0.05			(1.19	)
Net (loss) income		(0.35	)		0.14			0.22			(1.07	)

(1)	The sum of the quarterly income (loss) per share may not equal the annual income (loss) per share because of changes in the weighted average number of shares outstanding that occurred during the year.

In the second quarter of fiscal 2012, the Company recorded an $0.8 million impairment loss on its investment in OctoPlus.

In the fourth quarter of fiscal 2012, the Company recorded $0.5 million of costs associated with its “modified Dutch auction” tender offer.

In the first quarter of fiscal 2011, the Company recorded a $0.6 million restructuring charge in connection with the reorganization announced in October 2010, included in the operating results from continuing operations, and a $5.7 million goodwill impairment charge and $0.6 million restructuring charge in connection with the reorganization announced in October 2010, associated with the Company’s SurModics Pharmaceuticals reporting unit which have been included in the operating results of discontinued operations.

In the fourth quarter of fiscal 2011, the Company recorded a $1.0 million restructuring charge in connection with the reorganization announced in August 2011, included in the operating results from continuing operations, and $28.1 million of asset impairment charges associated with the write-down of the long-lived assets of the SurModics Pharmaceuticals segment, included in the operating results of discontinued operations.

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References + Details

Summary of Significant Accounting Policies and Select Balance Sheet Information (Policies)

12 Months Ended

Sep. 30, 2012

Description and Summary of Significant Accounting Policies and Select Balance Sheet Information [Abstract]

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents consist of financial instruments with original maturities of three months or less and are stated at cost which approximates fair value.

Investments

Investments

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


	2012
	Original Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and government agency obligations	$	28,641	$	213	$	—		$	28,854
Mortgage-backed securities		2,896		129		(26	)		2,999
Municipal bonds		3,178		35		—			3,213
Asset-backed securities		613		—		(15	)		598
Corporate bonds		6,858		28		—			6,886

Total	$	42,186	$	405	$	(41	)	$	42,550


	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 September 30, 2012 were as follows (in thousands):


	Amortized Cost		Fair Value
Debt securities due within:
One year	$	14,093	$	14,117
One to five years		23,903		24,149
Five years or more		4,190		4,284

Total	$	42,186	$	42,550

The following table summarizes sales of available-for-sale securities for the years ended September 30, 2012, 2011 and 2010 (in thousands):


	2012			2011			2010
Proceeds from sales	$	43,556		$	50,364		$	23,986
Gross realized gains	$	229		$	384		$	302
Gross realized losses	$	(1	)	$	(4	)	$	(3	)

Inventories

Inventories


	2012		2011
Raw materials	$	1,479	$	1,218
Finished products		2,045		1,963

Total	$	3,524	$	3,181

Property and Equipment

Property and Equipment

Property and equipment consisted of the following components as of September 30 (in thousands):


	Useful Life		2012			2011
	(In years)
Land			$	4,359		$	4,359
Laboratory fixtures and equipment		3 to 10		13,004			13,236
Buildings and improvements		3 to 20		14,702			14,655
Office furniture and equipment		3 to 10		3,370			3,222
Construction-in-progress				848			237
Less accumulated depreciation				(22,673	)		(21,123	)

Property and equipment, net			$	13,610		$	14,586

Other Assets

Other Assets

Other assets consisted principally of strategic investments as of September 30 as follows (in thousands):


	2012		2011
Investment in OctoPlus N.V.	$	718	$	1,190
Investment in Nexeon MedSystems, Inc.		285		285
Investment in ThermopeutiX, Inc.		1,185		1,185
Investment in ViaCyte, Inc.		559		559
Other		84		84

Other assets, net	$	2,831	$	3,303

Intangible Assets

Intangible Assets

The asset impairment charges in fiscal 2010 are included in the asset impairment charges line in the consolidated statements of operations.

Intangible assets consisted of the following as of September 30 (in thousands):


	2012
	Weighted Average Original Life (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Definite-lived intangible assets:
Customer lists		9.0	$	4,857	$	(2,734	)	$	2,123
Core technology		8.0		530		(343	)		187
Patents and other		16.8		2,256		(716	)		1,540

Subtotal				7,643		(3,793	)		3,850
Unamortized intangible assets:
Trademarks				580		—			580

Total			$	8,223	$	(3,793	)	$	4,430


	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 September 30, 2012, estimated amortization expense for each of the next five fiscal years is as follows (in thousands):


2013	$	742
2014		742
2015		731
2016		594
2017		183

Goodwill

Goodwill

Valuation of Long-Lived Assets

Valuation of Long-Lived Assets

Revenue Recognition

Revenue Recognition

Taxes collected from customers and remitted to governmental authorities are excluded from revenue and amounted to $0.1 million for each of the years ended September 30, 2012, 2011 and 2010.

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.

In October 2009, the Financial Accounting Standards Board (“FASB”) amended the accounting standards for multiple deliverable revenue arrangements to:

(i) provide updated guidance on whether multiple deliverables exist, how the deliverables in an arrangement should be separated, and how the consideration should be allocated;

(iii) eliminate the use of the residual method and require an entity to allocate revenue using the relative selling price method.

Deferred Revenue

Deferred Revenue

Customer advances are accounted for as a liability until all criteria for revenue recognition have been met.

Customer Concentrations

Customer Concentrations

Research and Development

Research and Development

Use of Estimates

Use of Estimates

Income (Loss) Per Share Data

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):


	2012		2011		2010
Basic weighted average shares outstanding		17,318		17,419		17,372
Dilutive effect of outstanding stock options and non-vested stock		113		43		8

Diluted weighted average shares outstanding		17,431		17,462		17,380

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.

Summary of Significant Accounting Policies and Select Balance Sheet Information (Tables)

12 Months Ended

Sep. 30, 2012

Description and Summary of Significant Accounting Policies and Select Balance Sheet Information [Abstract]

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


	2012
	Original Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and government agency obligations	$	28,641	$	213	$	—		$	28,854
Mortgage-backed securities		2,896		129		(26	)		2,999
Municipal bonds		3,178		35		—			3,213
Asset-backed securities		613		—		(15	)		598
Corporate bonds		6,858		28		—			6,886

Total	$	42,186	$	405	$	(41	)	$	42,550


	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


	Amortized Cost		Fair Value
Debt securities due within:
One year	$	14,093	$	14,117
One to five years		23,903		24,149
Five years or more		4,190		4,284

Total	$	42,186	$	42,550

Schedule of sales available-for-sale securities


	2012			2011			2010
Proceeds from sales	$	43,556		$	50,364		$	23,986
Gross realized gains	$	229		$	384		$	302
Gross realized losses	$	(1	)	$	(4	)	$	(3	)

Schedule of components of inventories


	2012		2011
Raw materials	$	1,479	$	1,218
Finished products		2,045		1,963

Total	$	3,524	$	3,181

Schedule of Property, Plant and Equipment


	Useful Life		2012			2011
	(In years)
Land			$	4,359		$	4,359
Laboratory fixtures and equipment		3 to 10		13,004			13,236
Buildings and improvements		3 to 20		14,702			14,655
Office furniture and equipment		3 to 10		3,370			3,222
Construction-in-progress				848			237
Less accumulated depreciation				(22,673	)		(21,123	)

Property and equipment, net			$	13,610		$	14,586

Schedule of other assets consist principally of strategic investments


	2012		2011
Investment in OctoPlus N.V.	$	718	$	1,190
Investment in Nexeon MedSystems, Inc.		285		285
Investment in ThermopeutiX, Inc.		1,185		1,185
Investment in ViaCyte, Inc.		559		559
Other		84		84

Other assets, net	$	2,831	$	3,303

Schedule of intangible assets


	2012
	Weighted Average Original Life (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Definite-lived intangible assets:
Customer lists		9.0	$	4,857	$	(2,734	)	$	2,123
Core technology		8.0		530		(343	)		187
Patents and other		16.8		2,256		(716	)		1,540

Subtotal				7,643		(3,793	)		3,850
Unamortized intangible assets:
Trademarks				580		—			580

Total			$	8,223	$	(3,793	)	$	4,430


	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


2013	$	742
2014		742
2015		731
2016		594
2017		183

Schedule of basic and diluted income (loss) per share


	2012		2011		2010
Basic weighted average shares outstanding		17,318		17,419		17,372
Dilutive effect of outstanding stock options and non-vested stock		113		43		8

Diluted weighted average shares outstanding		17,431		17,462		17,380

Discontinued Operations (Tables)

12 Months Ended

Sep. 30, 2012

Discontinued Operations [Abstract]

Schedule of operating results from discontinued operations


	2012			2011			2010
Total revenue	$	5,297		$	15,109		$	15,715

Income (loss) from discontinued operations	$	2,309		$	(43,197	)	$	(26,043	)
Income tax (provision) benefit		(1,133	)		13,766			4,549

Income (loss) from discontinued operations, net of income taxes	$	1,176		$	(29,431	)	$	(21,494	)

Loss on sale of discontinued operations	$	(1,691	)	$	—		$	—
Income tax benefit		617			—			—

Loss on sale of discontinued operations, net of income taxes	$	(1,074	)	$	—		$	—

Schedule of assets and liabilities of discontinued operations


	2012		2011
Accounts receivable, net	$	283	$	3,309
Inventories		—		969
Other current assets		600		1,705

Current assets of discontinued operations		883		5,983
Property and equipment, net		—		24,911
Intangible assets, net		—		3,683
Other assets, net		—		3,917

Total assets of discontinued operations	$	883	$	38,494

Accounts payable	$	—	$	849
Accrued liabilities — compensation		—		1,522
Deferred revenue		—		550
Other current liabilities		1,640		2,428

Current liabilities of discontinued operations		1,640		5,349
Deferred revenue, less current portion		—		3,371
Other long-term liabilities		—		120

Total liabilities of discontinued operations	$	1,640	$	8,840

Fair Value Measurements (Tables)

12 Months Ended

Sep. 30, 2012

Fair Value Measurements [Abstract]

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


	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, 2012
Assets:
Cash equivalents	$	—	$	5,101	$	—	$	5,101
Available-for-sale debt securities:
U.S. government and government agency obligations		—		28,854		—		28,854
Mortgage-backed securities		—		2,999		—		2,999
Municipal bonds		—		3,213		—		3,213
Asset-backed securities		—		598		—		598
Corporate bonds		—		6,886		—		6,886
Other assets		718		—		—		718

Total assets measured at fair value	$	718	$	47,651	$	—	$	48,369


	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) For the Year Ended September 30, 2012 Available-for-Sale Debt Securities
	Mortgage- Backed Securities			Asset- Backed Securities			Total
Balance at September 30, 2011	$	15		$	9		$	24
Transfers into/out of Level 3		(15	)		(9	)		(24	)
Total realized and unrealized gains (losses):
Included in other comprehensive income (loss)		—			—			—
Purchases		—			—			—
Issuances		—			—			—
Sales		—			—			—
Settlements		—			—			—

Balance at September 30, 2012	$	—		$	—		$	—


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the Year Ended September 30, 2011 Available-for-Sale Debt Securities
	U.S. Government Obligations			Mortgage- Backed Securities			Asset- Backed Securities			Total
Balance at September 30, 2010	$	704		$	69		$	—		$	773
Transfers into Level 3		—			17			14			31
Transfers out of Level 3		(695	)		(68	)		—			(763	)
Total realized and unrealized gains (losses):
Included in other comprehensive income (loss)		19			(3	)		(3	)		13
Purchases		—			620			—			620
Issuances		—			—			—			—
Sales		(28	)		(620	)		(2	)		(650	)
Settlements		—			—			—			—

Balance at September 30, 2011	$	—		$	15		$	9		$	24

- 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

Stock-Based Compensation Plans (Tables)

12 Months Ended

Sep. 30, 2012

Stock-Based Compensation Plans [Abstract]

Schedule of stock-based compensation expenses


	2012		2011		2010
Product costs	$	35	$	79	$	60
Research and development		511		1,156		2,466
Selling, general and administrative		2,125		2,415		2,061

Total continuing operations		2,671		3,650		4,587
Discontinued operations		62		602		1,288

Total stock-based compensation expense	$	2,733	$	4,252	$	5,875

Schedule of stock option plans


	2012			2011			2010
Risk-free interest rates		0.82	%		1.45	%		1.95	%
Expected life		4.8 years			4.8 years			4.8 years
Expected volatility		50	%		45	%		41	%
Dividend yield		0	%		0	%		0	%

Schedule of stock option activity


	Number of Shares			Weighted Average Exercise Price
Outstanding at September 30, 2009		1,669,570		$	32.82
Granted		388,635			22.88
Exercised		(20,350	)		20.74
Forfeited		(545,534	)		30.58

Outstanding at September 30, 2010		1,492,321		$	31.22
Granted		551,773			9.96
Exercised		—			—
Forfeited		(528,906	)		25.15

Outstanding at September 30, 2011		1,515,188		$	25.59
Granted		299,832			12.46
Exercised		(11,379	)		10.03
Forfeited		(478,203	)		29.76

Outstanding at September 30, 2012		1,325,438		$	21.25

Exercisable at September 30, 2012		661,006		$	29.67

Schedule of restricted stock awards activity


	Number of Shares			Weighted Average Grant Price
Balance at September 30, 2009		100,895		$	35.80
Granted		30,440			18.49
Vested		(83,195	)		36.32
Forfeited		(7,068	)		33.39

Balance at September 30, 2010		41,072		$	22.33
Granted		66,533			10.01
Vested		(23,978	)		19.38
Forfeited		(11,000	)		20.79

Balance at September 30, 2011		72,627		$	12.25
Vested		(67,627	)		11.52
Forfeited		(1,000	)		22.35

Balance at September 30, 2012		4,000		$	22.11

Schedule of Fair value at the date of grant


Performance Period	Minimum Shares		Target Shares		Maximum Shares
Fiscal 2011 — 2013		13,707		68,533		137,066
Fiscal 2012 — 2014		12,499		62,497		124,994

- 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)

12 Months Ended

Sep. 30, 2012

Restructuring Charges [Abstract]

Summary of restructuring accrual activity


	Employee Severance and Benefits			Facility- Related Costs			Total
Balance at September 30, 2009	$	—		$	955		$	955
Accruals during the year		764			440			1,204
Cash payments		(760	)		(216	)		(976	)

Balance at September 30, 2010	$	4		$	1,179		$	1,183
Accruals during the year		1,616			—			1,616
Cash payments		(890	)		(929	)		(1,819	)

Balance at September 30, 2011	$	730		$	250		$	980
Accruals during the year		—			—			—
Cash payments		(720	)		(68	)		(788	)

Balance at September 30, 2012	$	10		$	182		$	192

Income Taxes (Tables)

12 Months Ended

Sep. 30, 2012

Income Taxes [Abstract]

Income taxes from continuing operations in accompanying consolidated statements of operations


	2012			2011			2010
Current provision:
Federal	$	6,615		$	6,011		$	6,708
State and foreign		290			765			408

Total current provision		6,905			6,776			7,116

Deferred (benefit) provision :
Federal		(835	)		(652	)		(1,883	)
State		107			(520	)		(254	)

Total deferred (benefit) provision		(728	)		(1,172	)		(2,137	)

Total provision	$	6,177		$	5,604		$	4,979

Reconciliation of difference between amounts of income tax provision


	2012			2011			2010
Amount at statutory federal income tax rate	$	5,707		$	5,785		$	1,884
Change because of the following items:
State taxes		236			412			121
Stock-based compensation		36			(7	)		255
Valuation allowance		303			21			2,780
Other		(105	)		(607	)		(61	)

Income tax provision	$	6,177		$	5,604		$	4,979

Components of deferred income taxes and result from differences in the recognition of transactions for income tax and financial reporting purposes


	2012			2011
Depreciable assets	$	1,146		$	827
Deferred revenue		85			101
Accruals and reserves		362			566
Stock-based compensation		3,883			6,927
Impaired investments		6,455			6,151
Unrealized (gains) losses on investments		(131	)		96
Other		755			718
Valuation allowance		(6,530	)		(6,227	)

Total deferred tax assets		6,025			9,159
Less current deferred tax assets		(219	)		(327	)

Noncurrent deferred tax assets	$	5,806		$	8,832

Summary of reconciliation of unrecognized tax benefits


	2012			2011			2010
Beginning of fiscal year	$	1,564		$	1,948		$	2,042
Increases in tax positions for prior years		5			3			—
Decreases in tax positions for prior years		(3	)		(85	)		(104	)
Increases in tax positions for current year		72			55			92
Settlements with taxing authorities		—			(53	)		—
Lapse of the statute of limitations		(203	)		(304	)		(82	)

End of fiscal year	$	1,435		$	1,564		$	1,948

Commitments and Contingencies (Tables)

12 Months Ended

Sep. 30, 2012

Commitments and Contingencies [Abstract]

Summary of annual commitments pursuant to operating lease agreements


Year Ended September 30,
2013	$	61
2014		62
2015		64
2016		16

Total minimum lease payments	$	203

Operating Segments (Tables)

12 Months Ended

Sep. 30, 2012

Operating Segments [Abstract]

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


	2012			2011			2010
Revenue:
Medical Device	$	37,883		$	39,606		$	43,294
In Vitro Diagnostics		14,045			13,150			11,194

Total revenue	$	51,928		$	52,756		$	54,488

Operating income (loss):
Medical Device	$	18,431		$	19,997		$	19,461
In Vitro Diagnostics		4,542			4,314			3,296
Corporate		(6,631	)		(8,788	)		(10,766	)

Total operating income from continuing operations	$	16,342		$	15,523		$	11,991

Depreciation and amortization:
Medical Device	$	1,414		$	1,604		$	2,136
In Vitro Diagnostics		774			799			828
Corporate		741			756			656

Total depreciation and amortization	$	2,929		$	3,159		$	3,620

Revenue from major customers


	2012			2011			2010
Medtronic		19	%		18	%		16	%
Johnson & Johnson		**			16	%		22	%

**	-less than 10%

Geographic revenue


	2012			2011			2010
Domestic		79	%		73	%		79	%
Foreign		21	%		27	%		21	%

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References + Details

Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Sep. 30, 2012

Quarterly Financial Data (Unaudited) [Abstract]

summary of the unaudited quarterly results


	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Fiscal 2012
Total revenue	$	11,916		$	12,210		$	13,959		$	13,843
Operating income from continuing operations		3,222			3,689			4,793			4,638
Income from continuing operations		2,155			1,946			3,174			2,854
Income (loss) from discontinued operations		551			(223	)		(112	)		(114	)
Net income		2,706			1,723			3,062			2,740
Basic income (loss) per share(1):
Continuing operations		0.12			0.11			0.18			0.17
Discontinued operations		0.03			(0.01	)		(0.01	)		(0.01	)
Net income		0.15			0.10			0.17			0.16
Diluted income (loss) per share(1):
Continuing operations		0.12			0.11			0.18			0.17
Discontinued operations		0.03			(0.01	)		(0.01	)		(0.01	)
Net income		0.15			0.10			0.17			0.16
Fiscal 2011
Total revenue	$	12,522		$	13,334		$	12,999		$	13,901
Operating income from continuing operations		4,121			4,212			4,257			2,933
Income from continuing operations		2,860			2,824			3,051			2,190
(Loss) income from discontinued operations		(9,031	)		(336	)		791			(20,855	)
Net (loss) income		(6,171	)		2,488			3,842			(18,665	)
Basic income (loss) per share(1):
Continuing operations		0.16			0.16			0.17			0.13
Discontinued operations		(0.52	)		(0.02	)		0.05			(1.20	)
Net (loss) income		(0.36	)		0.14			0.22			(1.07	)
Diluted income (loss) per share(1):
Continuing operations		0.16			0.16			0.17			0.13
Discontinued operations		(0.52	)		(0.02	)		0.05			(1.19	)
Net (loss) income		(0.35	)		0.14			0.22			(1.07	)

Description (Details) - 12 months ended Sep. 30, 2012 $ in Millions	€ / shares	USD ($)
Description (Additional Textual) [Abstract]
Minimum percentage of research & development revenue to aggregate revenue		10.00%
OctoPlus N.V.[Member] \| Subsequent Event [Member]
Description (Textual) [Abstract]
Common stock offering price \| € / shares	€ 0.52
Expected gain on sale of investments		$ 0.1
Vessix Vascular, Inc. [Member] \| Subsequent Event [Member]
Description (Textual) [Abstract]
Expected gain on sale of investments		1.2
Proceeds on Sale of Investment at Maturity		$ 5.5

- Definition

The cash inflow associated with the sale, maturity and collection of all investments such as debt, security and so forth during the period.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Investing Activities
-URI http://asc.fasb.org/extlink&oid=6516133

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3179-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 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.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 31
-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 115
-Paragraph 18
-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 95
-Paragraph 16
-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

Summary of Significant Accounting Policies and Select Balance Sheet Information (Details) - USD ($) $ in Thousands	Sep. 30, 2012	Sep. 30, 2011
Schedule of available for sale securities
Original Cost	$ 42,186	$ 41,675
Unrealized Gains	405	393
Unrealized Losses	(41)	(118)
Fair Value	42,550	41,950
U.S. government and government agency obligations [Member]
Schedule of available for sale securities
Original Cost	28,641	30,433
Unrealized Gains	213	176
Unrealized Losses		(6)
Fair Value	28,854	30,603
Mortgage-backed securities [Member]
Schedule of available for sale securities
Original Cost	2,896	3,871
Unrealized Gains	129	131
Unrealized Losses	(26)	(54)
Fair Value	2,999	3,948
Municipal Bonds [Member]
Schedule of available for sale securities
Original Cost	3,178	3,561
Unrealized Gains	35	53
Fair Value	3,213	3,614
Asset-backed securities [Member]
Schedule of available for sale securities
Original Cost	613	1,336
Unrealized Gains		1
Unrealized Losses	(15)	(49)
Fair Value	598	1,288
Corporate Bonds [Member]
Schedule of available for sale securities
Original Cost	6,858	2,474
Unrealized Gains	28	32
Unrealized Losses		(9)
Fair Value	$ 6,886	$ 2,497

Summary of Significant Accounting Policies and Select Balance Sheet Information (Details 1) - USD ($) $ in Thousands	Sep. 30, 2012	Sep. 30, 2011
Schedule of Original Cost and Fair Value of Investments by Contractual Maturity
Amortized cost, debt securities due within one year	$ 14,093
Amortized cost, debt securities due within one to five years	23,903
Amortized cost, debt securities due within five years or more	4,190
Amortized cost, Total	42,186
Fair value, debt securities due within one year	14,117
Fair value, debt securities due within one to five years	24,149
Fair value, debt securities due within five years or more	4,284
Fair value, Total	42,550	$ 41,950
Amortized cost, debt securities due within one year	14,093
Fair value, debt securities due within one year	14,117
Fair value, debt securities due within one to five years	24,149
Fair value, debt securities due within five years or more	4,284
Fair value, Total	$ 42,550	$ 41,950

- Definition

This element represents the portion of the balance sheet assertion valued at fair value by the entity whether such amount is presented as a separate caption or as a parenthetical disclosure. Additionally, this element may be used in connection with the fair value disclosures required in the footnote disclosures to the financial statements. The element may be used in both the balance sheet and disclosure in the same submission. This item represents Available-for-sale Securities which consist of all investments in certain debt and equity securities neither classified as trading or held-to-maturity securities. A debt security represents a creditor relationship with an enterprise. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities which are categorized as Available-for-sale.

+ References + Details

Summary of Significant Accounting Policies and Select Balance Sheet Information (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Schedule of sales available-for-sale securities
Proceeds from sales	$ 43,556	$ 50,364	$ 23,986
Gross realized gains	229	384	302
Gross realized losses	$ (1)	$ (4)	$ (3)

Summary of Significant Accounting Policies and Select Balance Sheet Information (Details 3) - USD ($) $ in Thousands	Sep. 30, 2012	Sep. 30, 2011
Schedule of Components of Inventories
Raw materials	$ 1,479	$ 1,218
Finished products	2,045	1,963
Total	$ 3,524	$ 3,181

Summary of Significant Accounting Policies and Select Balance Sheet Information (Details 4) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Components of Property, Plant and Equipment
Less accumulated depreciation	$ (22,673)	$ (21,123)
Property and equipment, net	13,610	14,586
Land [Member]
Components of Property, Plant and Equipment
Property and Equipment, Gross	4,359	4,359
Laboratory Fixtures and Equipment [Member]
Components of Property, Plant and Equipment
Property and Equipment, Gross	$ 13,004	13,236
Laboratory Fixtures and Equipment [Member] \| Maximum [Member]
Components of Property, Plant and Equipment
Property and Equipment, Useful Life	10 years
Laboratory Fixtures and Equipment [Member] \| Minimum [Member]
Components of Property, Plant and Equipment
Property and Equipment, Useful Life	3 years
Buildings and improvements [Member]
Components of Property, Plant and Equipment
Property and Equipment, Gross	$ 14,702	14,655
Buildings and improvements [Member] \| Maximum [Member]
Components of Property, Plant and Equipment
Property and Equipment, Useful Life	20 years
Buildings and improvements [Member] \| Minimum [Member]
Components of Property, Plant and Equipment
Property and Equipment, Useful Life	3 years
Office Furniture and Equipment [Member]
Components of Property, Plant and Equipment
Property and Equipment, Gross	$ 3,370	3,222
Office Furniture and Equipment [Member] \| Maximum [Member]
Components of Property, Plant and Equipment
Property and Equipment, Useful Life	10 years
Office Furniture and Equipment [Member] \| Minimum [Member]
Components of Property, Plant and Equipment
Property and Equipment, Useful Life	3 years
Construction-in-Progress [Member]
Components of Property, Plant and Equipment
Property and Equipment, Gross	$ 848	$ 237

Summary of Significant Accounting Policies and Select Balance Sheet Information (Details 5) - USD ($) $ in Thousands	Sep. 30, 2012	Sep. 30, 2011
Schedule of other assets consist principally of strategic investments
Other assets, net	$ 2,831	$ 3,303
Investment in OctoPlus N.V. [Member]
Schedule of other assets consist principally of strategic investments
Other assets, net	718	1,190
Investment in Nexeon MedSystems, Inc. [Member]
Schedule of other assets consist principally of strategic investments
Other assets, net	285	285
Investment in ThermopeutiX, Inc. [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

Summary of Significant Accounting Policies and Select Balance Sheet Information (Details 6) - USD ($) $ in Thousands	Sep. 30, 2012	Sep. 30, 2011
Schedule of Intangible assets
Gross Carrying Amount	$ 8,223	$ 8,275
Accumulated Amortization	(3,793)	(3,076)
Net	$ 4,430	$ 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	(2,734)	(2,195)
Net	$ 2,123	$ 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	(343)	(276)
Net	$ 187	$ 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	$ 2,256	$ 2,308
Accumulated Amortization	(716)	(605)
Net	1,540	1,703
Definite-lived intangible assets [Member]
Schedule of Intangible assets
Gross Carrying Amount	7,643	7,695
Accumulated Amortization	(3,793)	(3,076)
Net	3,850	4,619
Trademarks [Member]
Schedule of Intangible assets
Gross Carrying Amount	580	580
Net	$ 580	$ 580

Summary of Significant Accounting Policies and Select Balance Sheet Information (Details 7) $ in Thousands	Sep. 30, 2012 USD ($)
Schedule of Intangible Assets in Service
2013	$ 742
2014	742
2015	731
2016	594
2017	$ 183

Summary of Significant Accounting Policies and Select Balance Sheet Information (Details 8) - shares shares in Thousands	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Schedule of Basic and Diluted Income (loss) per share
Basic weighted average shares outstanding	17,318	17,419	17,372
Dilutive effect of outstanding stock options and non-vested stock	113	43	8
Diluted weighted average shares outstanding	17,431	17,462	17,380

Summary of Significant Accounting Policies and Select Balance Sheet Information (Details Textual) $ / shares in Units, shares in Millions	1 Months Ended		3 Months Ended			12 Months Ended
	Mar. 31, 2010 USD ($)	Jan. 31, 2005 USD ($)	Mar. 31, 2012 USD ($)	Sep. 30, 2011 USD ($)	Dec. 31, 2010 USD ($)	Sep. 30, 2012 USD ($) Security Customers $ / shares shares	Sep. 30, 2011 USD ($) shares	Sep. 30, 2010 USD ($) $ / shares shares	Sep. 30, 2009 USD ($) $ / shares	Sep. 30, 2008 USD ($)	Sep. 30, 2006 USD ($)	Jun. 30, 2012 USD ($)	Aug. 31, 2010 $ / shares	Jun. 30, 2010	Aug. 31, 2009 USD ($)	Jul. 31, 2007 USD ($)	May 01, 2005 USD ($)
Summary of Significant Accounting Policies and Select Balance Sheet Information (Textual) [Abstract]
Unrealized Loss/Gain						$ 335,000	$ (804,000)	$ (437,000)
Cost basis in the Company's investment in OctoPlus						900,000
Additional Equity Investment										$ 2,500,000
Asset impairment charges				$ 28,100,000				3,006,000
Goodwill				8,010,000		$ 8,010,000	8,010,000
Major customer percentage of total revenue						19.00%
Summary of Significant Accounting Policies and Select Balance Sheet Information (Additional Textual) [Abstract]
Number of held to maturity debt securities \| Security						0
Amortized cost of held-to-maturity debt securities				3,000,000			3,000,000					$ 0
Fair market value of held-to-maturity debt securities				3,100,000			3,100,000
Depreciation expense						$ 2,200,000	2,400,000	2,800,000
Recognized Revenue						100,000	100,000	1,500,000
Amortization Expense						$ 700,000	700,000	$ 800,000
Company's stock price \| $ / shares						$ 19.00		$ 11.92	$ 24.13				$ 12.03
Percentage of increase in market capitalization over Company's book value														64.00%
Taxes collected from customers and remitted to governmental authorities						$ 100,000	100,000	$ 100,000
Product sales payment terms, Minimum						30 days
Product sales payment terms, Maximum						45 days
Deferred revenue				300,000		$ 200,000	$ 300,000
Weighted average diluted shares outstanding excluded outstanding stock options \| shares						0.6	1.1	1.5
Number of customers represents more than 6% of revenue \| Customers						0
In Vitro Diagnostics [Member]
Summary of Significant Accounting Policies and Select Balance Sheet Information (Textual) [Abstract]
Goodwill				8,000,000		$ 8,000,000	$ 8,000,000
Goodwill impairment charge						0	0	$ 0
Excess in fair value over carrying value													82.00%
SurModics Pharmaceuticals Subsidiary [Member]
Summary of Significant Accounting Policies and Select Balance Sheet Information (Textual) [Abstract]
Asset impairment charges				$ 28,100,000
Goodwill impairment charge					$ 5,700,000
Patents [Member]
Summary of Significant Accounting Policies and Select Balance Sheet Information (Textual) [Abstract]
Asset impairment charges								500,000
Paragon Intellectual Properties, LLC and Apollo Therapeutics, LLC [Member]
Summary of Significant Accounting Policies and Select Balance Sheet Information (Textual) [Abstract]
Equity Investments																$ 3,500,000
OctoPlus [Member]
Summary of Significant Accounting Policies and Select Balance Sheet Information (Textual) [Abstract]
Initial Equity Investment in Octoplus		$ 3,900,000
Company's Total Investment						$ 6,000,000
Percentage of Ownership Interest in OctoPlus						10.00%
Impairment Loss on investment			$ 800,000							$ 4,300,000
Previous cost basis						$ 1,700,000
Realized Gain or Loss							0	0
Unrealized Loss/Gain			$ (200,000)				$ (500,000)	900,000
Expected gain on sale of investments						100,000
ThermopeutiX, Inc. [Member]
Summary of Significant Accounting Policies and Select Balance Sheet Information (Textual) [Abstract]
Investment in various securities																	$ 1,200,000
ViaCyte [Member]
Summary of Significant Accounting Policies and Select Balance Sheet Information (Textual) [Abstract]
Investment in various securities						600,000					$ 5,200,000
Cost basis investment in company after consideration impairment											$ 4,700,000
Nexeon MedSystems, Inc. [Member]
Summary of Significant Accounting Policies and Select Balance Sheet Information (Textual) [Abstract]
Additional Equity Investment									$ 500,000
Impairment Loss on the Investment								5,300,000
Vessix Vascular, Inc. [Member]
Summary of Significant Accounting Policies and Select Balance Sheet Information (Textual) [Abstract]
Expected gain on sale of investments						1,200,000
Investment in various securities															$ 2,000,000
Impairment Loss on the Investment								2,400,000
Proceeds on Sale of Investment at Maturity						$ 5,500,000
Follow on Investment	$ 500,000
Other [Member]
Summary of Significant Accounting Policies and Select Balance Sheet Information (Textual) [Abstract]
Impairment Loss on the Investment								200,000
Maximum [Member]
Summary of Significant Accounting Policies and Select Balance Sheet Information (Additional Textual) [Abstract]
Company's stock price \| $ / shares						$ 19.00
Maximum [Member] \| ThermopeutiX, Inc. [Member]
Summary of Significant Accounting Policies and Select Balance Sheet Information (Textual) [Abstract]
Percentage of ownership interest						20.00%
Maximum [Member] \| ViaCyte [Member]
Summary of Significant Accounting Policies and Select Balance Sheet Information (Textual) [Abstract]
Percentage of ownership interest						5.00%
Maximum [Member] \| Nexeon MedSystems, Inc. [Member]
Summary of Significant Accounting Policies and Select Balance Sheet Information (Textual) [Abstract]
Percentage of ownership interest						20.00%
Maximum [Member] \| Vessix Vascular, Inc. [Member]
Summary of Significant Accounting Policies and Select Balance Sheet Information (Textual) [Abstract]
Percentage of ownership interest						20.00%
Laboratory Fixtures and Equipment [Member]
Summary of Significant Accounting Policies and Select Balance Sheet Information (Textual) [Abstract]
Asset impairment charges								800,000
Prototypes and Other Equipment [Member]
Summary of Significant Accounting Policies and Select Balance Sheet Information (Textual) [Abstract]
Asset impairment charges								400,000
Certain Fixed Asset [Member]
Summary of Significant Accounting Policies and Select Balance Sheet Information (Textual) [Abstract]
Asset impairment charges								$ 1,300,000

Discontinued Operations (Details) - USD ($) $ in Thousands	12 Months Ended
Discontinued Operations (Details) - USD ($) $ in Thousands	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Schedule of operating results from discontinued operations
Total revenue	$ 5,297	$ 15,109	$ 15,175
Income (loss) from discontinued operations	2,309	(43,197)	(26,043)
Income tax (provision) benefit	(1,133)	13,766	4,549
Income (loss) from discontinued operations, net of income taxes	1,176	$ (29,431)	$ (21,494)
Loss on sale of discontinued operations	(1,691)
Income tax benefit	617
Loss on sale of discontinued operations, net of income taxes	$ (1,074)

- 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	Sep. 30, 2012	Sep. 30, 2011
Schedule of assets and liabilities of discontinued operations
Accounts receivable, net	$ 283	$ 3,309
Inventories		969
Other current assets	600	1,705
Current assets of discontinued operations	883	5,983
Property and equipment, net		24,911
Intangible assets , net		3,683
Other assets, net		3,917
Total assets of discontinued operations	883	38,494
Accounts payable		849
Accrued liabilities - compensation		1,522
Deferred Revenue		550
Other current liabilities	1,640	2,428
Current liabilities of discontinued operations	1,640	5,349
Deferred revenue, less current portion		3,371
Other long-term liabilities		120
Total liabilities of discontinued operations	$ 1,640	$ 8,840

Discontinued Operations (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Sep. 30, 2011	Dec. 31, 2010	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2007	Aug. 31, 2010	Sep. 30, 2009
Discontinued Operations (Textual) [Abstract]
Impairment of long-lived asset					$ 1,900
Discontinued Operations (Additional Textual) [Abstract]
Total Consideration received from the Pharma Sale			$ 30,000
Loss on sale of discontinued operations, net of income taxes			(1,074)
Income tax benefit			$ 1,100
Restricted time period for competition			5 years
Deferred tax assets and retained liability			$ 1,700
Stock price at October 1, 2009								$ 24.13
Stock price at impairment test date							$ 12.03
Pharmaceuticals [Member]
Discontinued Operations (Textual) [Abstract]
Asset impairment charges totaling	$ 28,100
Impairment of long lived fixed assets disposed	23,300
Impairment of long lived intangible assets disposed	4,800
Alabama [Member]
Discontinued Operations (Textual) [Abstract]
Asset impairment charges totaling	23,300				1,900
Alabama [Member] \| Land [Member]
Discontinued Operations (Textual) [Abstract]
Impairment of long-lived asset					500
Alabama [Member] \| Buildings and improvements [Member]
Discontinued Operations (Textual) [Abstract]
Impairment of long-lived asset	$ 23,300				1,200
Alabama [Member] \| Laboratory Fixtures and Equipment [Member]
Discontinued Operations (Textual) [Abstract]
Impairment of long-lived asset					$ 200
Surmodics Pharmaceuticals [Member]
Discontinued Operations (Textual) [Abstract]
Goodwill impairment charge		$ 5,700	13,800			$ 19,500
Additional purchase price			$ 5,700	$ 5,700		$ 13,800

Fair Value Measurements (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Schedule of Assets Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs (Level 3)
Beginning Balance	$ 24	$ 773
Transfers into Level 3		31
Transfers out of Level 3	(24)	(763)
Total realized and unrealized gains (losses):
Included in other comprehensive income (loss)		13
Purchases		620
Issuances
Sales		(650)
Settlements
Ending Balance		24
Mortgage-backed securities [Member]
Schedule of Assets Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs (Level 3)
Beginning Balance	15	69
Transfers into Level 3		17
Transfers out of Level 3	(15)	(68)
Total realized and unrealized gains (losses):
Included in other comprehensive income (loss)		(3)
Purchases		620
Issuances
Sales		(620)
Settlements
Ending Balance		15
Asset-backed securities [Member]
Schedule of Assets Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs (Level 3)
Beginning Balance	9
Transfers into Level 3		14
Transfers out of Level 3	(9)
Total realized and unrealized gains (losses):
Included in other comprehensive income (loss)		(3)
Purchases
Issuances
Sales		(2)
Settlements
Ending Balance		9
U.S. Government Obligations [Member]
Schedule of Assets Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs (Level 3)
Beginning Balance		704
Transfers out of Level 3		(695)
Total realized and unrealized gains (losses):
Included in other comprehensive income (loss)		19
Issuances
Sales		(28)
Settlements
Ending Balance

Fair Value Measurements (Details Textual) - USD ($)	3 Months Ended	12 Months Ended
Fair Value Measurements (Details Textual) - USD ($)	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2012
Fair Value Measurements (Textual) [Abstract]
Long-lived asset impairment charges		$ 4,900,000
Wrote down of investments		7,900,000
Long-lived assets on the current valuation of the assets	$ 24,911,000
Fair Value Measurements (Additional Textual) [Abstract]
Held-to-maturity investments	3,000,000
Asset impairment charges	28,100,000	3,006,000
Fixed asset impairment charges	23,300,000
Intangibles asset impairment charges	4,800,000
Impairment of long-lived asset in continuing operations		3,000,000
Impairment of long-lived asset in discontinuing operations		1,900,000
Significant Unobservable Inputs (Level 3) [Member]
Fair Value Measurements (Textual) [Abstract]
Maximum fair value of mortgage-backed and asset-backed securities available for sale	50,000
Alabama [Member]
Fair Value Measurements (Textual) [Abstract]
Asset impairment charges in discontinued operations		1,900,000
Facility carrying value			$ 2,100,000
Pharmaceuticals [Member]
Fair Value Measurements (Textual) [Abstract]
Long-lived assets on the current valuation of the assets	$ 30,000,000
Certain Long Lived Assets [Member]
Fair Value Measurements (Textual) [Abstract]
Long-lived asset impairment charges		1,300,000
Fixed Asset Costs Located in Minnesota [Member]
Fair Value Measurements (Textual) [Abstract]
Long-lived asset impairment charges		1,300,000
Prototypes and Other Equipment [Member]
Fair Value Measurements (Textual) [Abstract]
Long-lived asset impairment charges		400,000
Fair Value Measurements (Additional Textual) [Abstract]
Asset impairment charges		400,000
Company one [Member]
Fair Value Measurements (Textual) [Abstract]
Wrote down of investments		2,400,000
Company two [Member]
Fair Value Measurements (Textual) [Abstract]
Wrote down of investments		200,000
Company three [Member]
Fair Value Measurements (Textual) [Abstract]
Wrote down of investments		$ 5,300,000

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		12 Months Ended
	May 31, 2012	Nov. 30, 2007	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010	Jun. 30, 2012	Aug. 31, 2010	Sep. 30, 2009
Stockholders' Equity (Textual) [Abstract]
Share price in tender offer			$ 19.00		$ 11.92		$ 12.03	$ 24.13
Stockholders' Equity (Additional Textual) [Abstract]
Stock repurchase program authorized amount	$ 50,000	$ 35,000
Amount available for repurchases of shares			$ 300			$ 55,300
Amount of tender offer for repurchases of shares			$ 55,000
Common stock repurchased, Shares			2,894,253	0
Common stock repurchased			$ 54,991		$ 2,032
Number of cumulative shares repurchased			1,303,240
Stock repurchased average price per share			$ 26.86
Maximum [Member]
Stockholders' Equity (Textual) [Abstract]
Share price in tender offer			19.00
Minimum [Member]
Stockholders' Equity (Textual) [Abstract]
Share price in tender offer			$ 17.00

Stock-Based Compensation Plans (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Schedule of stock-based compensation expenses
Total continuing operations	$ 2,671	$ 3,650	$ 4,587
Discontinued operations	62	602	1,288
Total stock-based compensation expense	2,733	4,252	5,875
Product costs [Member]
Schedule of stock-based compensation expenses
Total continuing operations	35	79	60
Research and development [Member]
Schedule of stock-based compensation expenses
Total continuing operations	511	1,156	2,466
Selling, general and administrative [Member]
Schedule of stock-based compensation expenses
Total continuing operations	$ 2,125	$ 2,415	$ 2,061

- 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 Plans (Details 1)	12 Months Ended
Stock-Based Compensation Plans (Details 1)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Schedule of stock option plans
Risk-free interest rates	0.82%	1.45%	1.95%
Expected life	4 years 9 months 18 days	4 years 9 months 18 days	4 years 9 months 18 days
Expected volatility	50.00%	45.00%	41.00%
Dividend yield	0.00%	0.00%	0.00%

Stock-Based Compensation Plans (Details 2) - $ / shares	12 Months Ended
Stock-Based Compensation Plans (Details 2) - $ / shares	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Schedule of stock option activity
Number of shares outstanding, beginning balance	1,515,188	1,492,321	1,669,570
Number of shares, granted	299,832	551,773	388,635
Number of shares, exercised	(11,379)		(20,350)
Number of shares, forfeited	(478,203)	(528,906)	(545,534)
Number of shares outstanding, ending balance	1,325,438	1,515,188	1,492,321
Weighted average exercise price, beginning balance	$ 25.59	$ 31.22	$ 32.82
Weighted average exercise price, granted	12.46	9.96	22.88
Weighted average exercise price, exercised	10.03		20.74
Weighted average exercise price, forfeited	29.76	25.15	30.58
Weighted average exercise price, ending balance	$ 21.25	$ 25.59	$ 31.22
Number of shares, exercisable	661,006
Weighted average exercise price, exercisable	$ 29.67

Stock-Based Compensation Plans (Details 3) - $ / shares	12 Months Ended
Stock-Based Compensation Plans (Details 3) - $ / shares	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Schedule of restricted stock awards activity
Number of shares, granted			4,373
Restricted stock [Member]
Schedule of restricted stock awards activity
Number of shares, beginning balance	72,627	41,072	100,895
Number of shares, granted		66,533	30,440
Number of shares, vested	(67,627)	(23,978)	(83,195)
Number of shares, forfeited	(1,000)	(11,000)	(7,068)
Number of shares, ending balance	4,000	72,627	41,072
Weighted average granted price, beginning balance	$ 12.25	$ 22.33	$ 35.80
Weighted average granted price, granted		10.01	18.49
Weighted average granted price, vested	11.52	19.38	36.32
Weighted average granted price, forfeited	22.35	20.79	33.39
Weighted average granted price, ending balance	$ 22.11	$ 12.25	$ 22.33

Stock-Based Compensation Plans (Details 4)	12 Months Ended
Stock-Based Compensation Plans (Details 4)	Sep. 30, 2012 shares
Fiscal 2011 - 2013 [Member]
Fair value at the date of grant
Minimum Shares	13,707
Target Shares	68,533
Maximum Shares	137,066
Fiscal 2012 - 2014 [Member]
Fair value at the date of grant
Minimum Shares	12,499
Target Shares	62,497
Maximum Shares	124,994

Stock-Based Compensation Plans (Details Textual) - USD ($)	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010	Aug. 31, 2010	Sep. 30, 2009
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Performance Shares			4,373
Stock based compensation expense	$ 2,733,000	$ 4,252,000	$ 5,875,000
Stock Based Compensation Expenses (Textual) [Abstract]
Unrecognized compensation costs related to non-vested awards	$ 2,900,000
Weighted average period for recognition of compensation costs related to non-vested awards	2 years 8 months 12 days
Performance Share Awards Fully Expensed	$ 800,000
Weighted average per share fair value of stock options	$ 5.26	$ 3.96	$ 6.78
Combined voting power minimum	10.00%
Stock options granted	299,832	551,773	388,635
Aggregate intrinsic value of the option shares outstanding	$ 6,200,000
Aggregate intrinsic value of the option shares exercisable	$ 1,000,000		$ 0
Remaining contractual life of options outstanding	4 years 3 months 18 days
Remaining contractual life of options exercisable	3 years 2 months 12 days
Total pre-tax intrinsic value of options exercised	$ 100,000
Common stock options exercised, Shares	11,379		20,350
Company's stock price	$ 29.67
Company's stock price	$ 19.00		$ 11.92	$ 12.03	$ 24.13
Stock options outstanding related to discontinued operations	0
Stock options exercisable related to discontinued operations	0
Authorized Common Stock	400,000
Incentive Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incentive stock options granted price minimum percentage	100.00%
Incentive stock options granted price maximum percentage	110.00%
Incentive stock options exercisable rate	20.00%
Restricted stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards outstanding related to discontinued operations	0
Number of Performance Shares		66,533	30,440
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Performance Shares	62,497	68,533
Stock based compensation expense	$ 0	$ 0	$ 0
Fair value of performance shares for grants awarded	$ 800,000	700,000
2009 Equity incentive plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of authorized shares in 2009 plan	1,500,000
Number of shares available for future awards	1,448,000
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	$ 200,000	600,000	100,000
Performance Shares	$ 1,000,000	200,000	100,000
Annual compensation withheld	10.00%
Maximum Limit	$ 25,000
Employee contributions	100,000	100,000
Stock compensation expense recognized	$ 100,000	$ 100,000	$ 200,000
Stock Based Compensation Expenses (Textual) [Abstract]
Company's stock price	$ 19.00

Restructuring Charges (Details) - USD ($) $ in Thousands	12 Months Ended
Restructuring Charges (Details) - USD ($) $ in Thousands	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Summary of restructuring accrual activity
Beginning Balance	$ 980	$ 1,183	$ 955
Accruals during the year		1,616	1,204
Cash payments	(788)	(1,819)	(976)
Ending Balance	192	980	1,183
Employee severance and benefits [Member]
Summary of restructuring accrual activity
Beginning Balance	730	4
Accruals during the year		1,616	764
Cash payments	(720)	(890)	(760)
Ending Balance	10	730	4
Facility-related costs [Member]
Summary of restructuring accrual activity
Beginning Balance	250	1,179	955
Accruals during the year			440
Cash payments	(68)	(929)	(216)
Ending Balance	$ 182	$ 250	$ 1,179

- Definition

Amount of any reversal and other adjustment made during the period to the amount of a previously accrued liability for a specified type of restructuring cost, excluding adjustments for costs incurred during the period, costs settled during the period, and foreign currency translation adjustments.

+ References + Details

Restructuring Charges (Details Textual) $ in Thousands	1 Months Ended	3 Months Ended				12 Months Ended
Restructuring Charges (Details Textual) $ in Thousands	Mar. 31, 2010 Position	Sep. 30, 2012 USD ($)	Sep. 30, 2011 USD ($)	Dec. 31, 2010 USD ($)	Jun. 30, 2010 USD ($)	Sep. 30, 2012 USD ($)	Sep. 30, 2011 USD ($)	Sep. 30, 2010 USD ($)	Aug. 31, 2011	Oct. 30, 2010 Position
Restructuring Cost and Reserve [Line Items]
Restructuring accrual balance		$ 100				$ 100
Summary Of Restructuring Accrual Activity (Textual) [Abstract]
Restructuring costs related to SurModics			$ 1,000	$ 600		0	$ 1,616	$ 1,204
Eliminated Work Force	4.00%								9.00%	13.00%
Positions eliminated as a result of the organizational change \| Position	11									30
Pre-Tax Restructuring Charges			$ 1,000	600	$ 1,200
Cash payments for restructuring events						700
Current portion		200				200
Payments associated with facility related costs						100
Severance pay and benefit expenses				$ 600				800
Restructuring accrual balance fiscal 2010 restructuring event.		$ 200				$ 200
Restructuring accrual balance expected to be paid within		15 months				15 months
Facility related cost								$ 400
Percentage of eliminated workforce	5.00%	10.00%		8.00%
Maximum [Member]
Restructuring Cost and Reserve [Line Items]
Long term portion		$ 100				$ 100

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Current provision:
Federal	$ 6,615	$ 6,011	$ 6,708
State and foreign	290	765	408
Total current provision	6,905	6,776	7,116
Deferred (benefit) provision :
Federal	(835)	(652)	(1,883)
State	107	(520)	(254)
Total deferred (benefit) provision	(728)	(1,172)	(2,137)
Total provision	$ 6,177	$ 5,604	$ 4,979

- Definition

The component of income tax expense for the period representing amounts paid or payable (or refundable) as determined by applying the provisions of enacted federal tax law to the domestic taxable Income or Loss from continuing operations.

+ References

+ Details

- Definition

The component of income tax expense for the period representing amounts of income taxes paid or payable (or refundable) for the period for all income tax obligations as determined by applying the provisions of relevant enacted tax laws to relevant amounts of taxable Income or Loss from continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Current Tax Expense (or Benefit)
-URI http://asc.fasb.org/extlink&oid=6509736

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.7)
-URI http://asc.fasb.org/extlink&oid=6889476&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 45
-Subparagraph a
-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 SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section I
-Subsection 7

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 289
-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

The component of total income tax expense for the period comprised of the increase (decrease) during the period in the entity's domestic deferred tax assets and liabilities attributable to continuing operations as determined by applying the provisions of the federally enacted tax law.

+ References

+ Details

- Definition

The change during the period in the entity's deferred tax assets and liabilities attributable to continuing operations as determined by applying enacted tax laws other than federal, domestic, foreign, state or local. Items affecting deferred income taxes and required to be disclosed, but not included elsewhere, would also be designated as "Other"; for example, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity and adjustments to be beginning-of-year balance of a valuation allowance because of a change in circumstance that causes a change in judgment about the realizability of the related deferred tax asset in future periods.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (g),(h)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.7)
-URI http://asc.fasb.org/extlink&oid=6889476&loc=d3e330036-122817

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Deferred Tax Expense (or Benefit)
-URI http://asc.fasb.org/extlink&oid=6510177

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 8, 16, 17, 289
-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 109
-Paragraph 45
-Subparagraph g, h
-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 Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section I
-Subsection 7

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

+ Details

- Definition

The component of total income tax expense for the period comprised of the increase (decrease) in the entity's state and local deferred tax assets and liabilities attributable to continuing operations as determined by applying the provisions of the applicable enacted tax laws.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Deferred Tax Expense (or Benefit)
-URI http://asc.fasb.org/extlink&oid=6510177

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.7)
-URI http://asc.fasb.org/extlink&oid=6889476&loc=d3e330036-122817

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 45
-Subparagraph 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 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 8, 16, 17, 289
-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 Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section I
-Subsection 7

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

+ Details

Income Taxes (Details 1) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details 1) - USD ($) $ in Thousands	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Reconciliation of difference between amounts of income tax provision
Amount at statutory federal income tax rate	$ 5,707	$ 5,785	$ 1,884
Change because of the following items:
State taxes	236	412	121
Stock-based compensation	36	(7)	255
Valuation allowance	303	21	2,780
Other	(105)	(607)	(61)
Total provision	$ 6,177	$ 5,604	$ 4,979

Income Taxes (Details 2) - USD ($) $ in Thousands	Sep. 30, 2012	Sep. 30, 2011
Components of deferred income taxes and result from differences in the recognition of transactions for income tax and financial reporting purposes
Depreciable assets	$ 1,146	$ 827
Deferred revenue	85	101
Accruals and reserves	362	566
Stock-based compensation	3,883	6,927
Impaired investments	6,455	6,151
Unrealized (gains) losses on investments	(131)	96
Other	755	718
Valuation allowance	(6,530)	(6,227)
Total deferred tax assets	6,025	9,159
Less current deferred tax assets	(219)	(327)
Noncurrent deferred tax assets	$ 5,806	$ 8,832

Income Taxes (Details 3) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details 3) - USD ($) $ in Thousands	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Summary of reconciliation of unrecognized tax benefits
Beginning of fiscal year	$ 1,564	$ 1,948	$ 2,042
Increases in tax positions for prior years	5	3
Decreases in tax positions for prior years	(3)	(85)	(104)
Increases in tax positions for current year	72	55	92
Settlements with taxing authorities		(53)
Lapse of the statute of limitations	(203)	(304)	(82)
End of fiscal year	$ 1,435	$ 1,564	$ 1,948

Income Taxes (Details Textual) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details Textual) - USD ($) $ in Millions	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Income Taxes (Textual) [Abstract]
Valuation allowance	$ 0.3
Income Taxes (Additional Textual) [Abstract]
U.S. federal statutory tax rate	35.00%
Income tax expense from discontinued operations	$ 1.1
Income tax benefit from discontinued operations		$ 13.8	$ 4.5
Income tax benefit from the sale of discontinued operations	0.6
Unrecognized tax benefits including interest and penalties	1.4	1.6	1.9
Liability for unrecognized tax benefits to change significantly in the next 12 months	$ 0.8	0.7	$ 0.7
Maximum [Member]
Income Taxes (Textual) [Abstract]
Valuation allowance		$ 0.1

Commitments and Contingencies (Details) $ in Thousands	Sep. 30, 2012 USD ($)
Summary of annual commitments pursuant to operating lease agreements
2013	$ 61
2014	62
2015	64
2016	16
Total minimum lease payments	$ 203

Commitments and Contingencies (Details Textual) $ in Thousands	12 Months Ended
	Sep. 30, 2012 USD ($) shares	Sep. 30, 2011 USD ($)	Sep. 30, 2010 USD ($)	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	$ 3,000
Indemnification Period	5 years
Office and Warehouse Facility \| ft²				286,000
Payments in Other Current Liabilities	$ 1,700
Rent expense related to operating leases	100	$ 200	$ 200
Accrual for contingency	$ 0

Defined Contribution Plan (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Defined Contribution Plan (Textual) [Abstract]
Percentage of employee contributions	50.00%
Percentage of employee eligible compensation	6.00%
Contribution expense	$ 0.2	$ 0.3	$ 0.1

Operating Segments (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
Operating Segments (Details) - USD ($) $ in Thousands	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Schedule of segment revenue operating income from continuing operations and depreciation and amortization
Total revenue	$ 13,843	$ 13,959	$ 12,210	$ 11,916	$ 13,901	$ 12,999	$ 13,334	$ 12,522	$ 51,928	$ 52,756	$ 54,488
Operating income (loss)	$ 4,638	$ 4,793	$ 3,689	$ 3,222	$ 2,933	$ 4,257	$ 4,212	$ 4,121	16,342	15,523	11,991
Depreciation and amortization									2,929	3,159	3,620
Medical Device [Member]
Schedule of segment revenue operating income from continuing operations and depreciation and amortization
Total revenue									37,883	39,606	43,294
Operating income (loss)									18,431	19,997	19,461
Depreciation and amortization									1,414	1,604	2,136
In Vitro Diagnostics [Member]
Schedule of segment revenue operating income from continuing operations and depreciation and amortization
Total revenue									14,045	13,150	11,194
Operating income (loss)									4,542	4,314	3,296
Depreciation and amortization									774	799	828
Corporate [Member]
Schedule of segment revenue operating income from continuing operations and depreciation and amortization
Operating income (loss)									(6,631)	(8,788)	(10,766)
Depreciation and amortization									$ 741	$ 756	$ 656

Operating Segments (Details 1)	12 Months Ended
Operating Segments (Details 1)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Revenue from major customers
Major customer percentage of total revenue	19.00%
Medtronic [Member]
Revenue from major customers
Major customer percentage of total revenue	19.00%	18.00%	16.00%
Johnson & Johnson [Member]
Revenue from major customers
Major customer percentage of total revenue		16.00%	22.00%

Operating Segments (Details 2)	12 Months Ended
Operating Segments (Details 2)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Geographic revenue
Domestic	79.00%	73.00%	79.00%
Foreign	21.00%	27.00%	21.00%

Operating Segments (Details Textual) $ in Thousands	3 Months Ended			12 Months Ended
Operating Segments (Details Textual) $ in Thousands	Sep. 30, 2012 USD ($)	Sep. 30, 2011 USD ($)	Dec. 31, 2010 USD ($)	Sep. 30, 2012 USD ($) Segment	Sep. 30, 2011 USD ($)	Sep. 30, 2010 USD ($)
Operating segments (Textual) [Abstract]
Asset impairment charges		$ 28,100				$ 3,006
Operating Segments (Additional Textual) [Abstract]
Number of operating segments \| Segment				2
Restructuring charges		$ 1,000	$ 600	$ 0	$ 1,616	1,204
Corporate [Member]
Operating segments (Textual) [Abstract]
Modified tender offer cost	$ 500			$ 500
Asset impairment charges						$ 3,006

Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Summary of the unaudited quarterly results
Total revenue	$ 13,843	$ 13,959	$ 12,210	$ 11,916	$ 13,901	$ 12,999	$ 13,334	$ 12,522	$ 51,928	$ 52,756	$ 54,488
Operating income from continuing operations	4,638	4,793	3,689	3,222	2,933	4,257	4,212	4,121	16,342	15,523	11,991
Income from continuing operations	2,854	3,174	1,946	2,155	2,190	3,051	2,824	2,860	10,129	10,925	405
Income (loss) from discontinued operations	(114)	(112)	(223)	551	(20,855)	791	(336)	(9,031)	102	(29,431)	(21,494)
Net income (loss)	$ 2,740	$ 3,062	$ 1,723	$ 2,706	$ (18,665)	$ 3,842	$ 2,488	$ (6,171)	$ 10,231	$ (18,506)	$ (21,089)
Basic income (loss) per share:
Continuing operations	$ 0.17	$ 0.18	$ 0.11	$ 0.12	$ 0.13	$ 0.17	$ 0.16	$ 0.16	$ 0.58	$ 0.63	$ 0.02
Discontinued operations	(0.01)	(0.01)	(0.01)	0.03	(1.20)	0.05	(0.02)	(0.52)	0.01	(1.69)	(1.24)
Net income (loss)	0.16	0.17	0.10	0.15	(1.07)	0.22	0.14	(0.36)	0.59	(1.06)	(1.21)
Diluted income (loss) per share:
Continuing operations	0.17	0.18	0.11	0.12	0.13	0.17	0.16	0.16	0.58	0.63	0.02
Discontinued operations	(0.01)	(0.01)	(0.01)	0.03	(1.19)	0.05	(0.02)	(0.52)	0.01	(1.69)	(1.24)
Net (loss) income	$ 0.16	$ 0.17	$ 0.10	$ 0.15	$ (1.07)	$ 0.22	$ 0.14	$ (0.35)	$ 0.59	$ (1.06)	$ (1.21)

Quarterly Financial Data (Unaudited) (Details Textual) - USD ($) $ in Thousands	3 Months Ended				12 Months Ended
	Sep. 30, 2012	Mar. 31, 2012	Sep. 30, 2011	Dec. 31, 2010	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Quarterly financial data (Textual) [Abstract]
Restructuring charges			$ 1,000	$ 600	$ 0	$ 1,616	$ 1,204
Asset impairment charges			28,100				3,006
OctoPlus [Member]
Quarterly financial data (Textual) [Abstract]
Impairment loss on investment		$ 800
SurModics Pharmaceuticals Subsidiary [Member]
Quarterly financial data (Textual) [Abstract]
Restructuring charges				600
Goodwill impairment charge				$ 5,700
Asset impairment charges			$ 28,100
Corporate [Member]
Quarterly financial data (Textual) [Abstract]
Modified tender offer cost	$ 500				$ 500
Asset impairment charges							$ 3,006

- Definition

Loss recognized during the period that results from the write-down of goodwill after comparing the implied fair value of reporting unit goodwill with the carrying amount of that goodwill. Goodwill is assessed at least annually for impairment.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13854-109267

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6388280&loc=d3e13777-109266

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13816-109267

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 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 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 20
-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 142
-Paragraph 45
-Subparagraph e
-Clause 5
-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 142
-Paragraph 47
-Subparagraph 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.

+ Details

Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] - USD ($) $ in Thousands	Sep. 30, 2012	Sep. 30, 2011
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value	$ 48,369	$ 51,559
Cash equivalents [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value	5,101	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	28,854	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	2,999	3,948
Municipal Bonds [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value	3,213	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	598	1,288
Corporate Bonds [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value	6,886	2,497
Other [Member]
Schedule of assets and liabilities measured at fair value on a recurring basis
Total assets measured at fair value	718	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	718	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	718	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	47,651	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	5,101	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	28,854	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	2,999	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	3,213	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	598	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	6,886	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
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