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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Dec. 31, 2013	Jan. 31, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2013
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Trading Symbol	SRDX
Entity Registrant Name	SURMODICS INC
Entity Central Index Key	0000924717
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		13,518,835

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2013	Sep. 30, 2013
Current Assets:
Cash and cash equivalents	$ 10,516	$ 15,495
Available-for-sale securities	12,481	10,212
Accounts receivable, net of allowance for doubtful accounts of $67 and $26 as of December 31, 2013 and September 30, 2013, respectively	5,110	5,332
Inventories	2,832	3,328
Deferred tax assets	303	506
Prepaids and other	592	860
Current assets of discontinued operations	46	46
Total Current Assets	31,880	35,779
Property and equipment, net	12,486	12,845
Available-for-sale securities	30,149	32,397
Deferred tax assets	5,863	6,038
Intangible assets, net	3,502	3,688
Goodwill	8,010	8,010
Other assets, net	3,166	3,166
Total Assets	95,056	101,923
Current Liabilities:
Accounts payable	1,366	954
Accrued liabilities:
Compensation	844	2,271
Accrued other	1,202	1,149
Share repurchase accrual	513	1,004
Deferred revenue	42	43
Restructuring and other current liabilities	228	416
Current liabilities of discontinued operations	126	139
Total Current Liabilities	4,321	5,976
Deferred revenue, less current portion	151	160
Other long-term liabilities	1,636	1,970
Total Liabilities	6,108	8,106
Commitments and Contingencies (Note 17)
Stockholders' Equity:
Series A Preferred stock- $.05 par value, 450,000 shares authorized; no shares issued and outstanding
Common stock- $.05 par value, 45,000,000 shares authorized; 13,622,451 and 13,891,402 shares issued and outstanding, respectively	681	695
Additional paid-in capital		2,028
Accumulated other comprehensive income	25	58
Retained earnings	88,242	91,036
Total Stockholders' Equity	88,948	93,817
Total Liabilities and Stockholders' Equity	$ 95,056	$ 101,923

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2013	Sep. 30, 2013
Statement Of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 67	$ 26
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
Series A Preferred stock, shares outstanding
Common stock, par value	$ 0.05	$ 0.05
Common stock, shares authorized	45,000,000	45,000,000
Common stock, shares issued	13,622,451	13,891,402
Common stock, shares outstanding	13,622,451	13,891,402

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Revenue:
Royalties and license fees	$ 7,465	$ 7,516
Product sales	5,400	5,353
Research and development	1,018	982
Total revenue	13,883	13,851
Operating costs and expenses:
Product costs	2,004	1,959
Research and development	3,699	3,362
Selling, general and administrative	3,851	3,653
Total operating costs and expenses	9,554	8,974
Operating income	4,329	4,877
Other income:
Investment income, net	86	72
Gain on sale of strategic investment	681	1,174
Other investment capital gains		2
Other income	767	1,248
Income before income taxes	5,096	6,125
Income tax provision	(1,466)	(1,877)
Net income	$ 3,630	$ 4,248
Basic net income per share	$ 0.26	$ 0.29
Diluted net income per share	$ 0.26	$ 0.29
Weighted average number of shares outstanding:
Basic	13,756	14,655
Diluted	14,009	14,863

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 3,630	$ 4,248
Other comprehensive (loss) income, net of tax:
Unrealized holding (losses) gains on available-for-sale securities arising during the period	(33)	240
Reclassification adjustment for realized gains included in net income		(3)
Other comprehensive (loss) income	(33)	237
Comprehensive income	$ 3,597	$ 4,485

- Definition

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

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+ Details

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Operating Activities:
Net income	$ 3,630	$ 4,248
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations:
Depreciation and amortization	697	722
Stock-based compensation	813	392
Deferred tax	395	27
Gain on sale of strategic investment	(681)	(1,174)
Excess tax (benefit) deficiency from stock-based compensation plans	(690)	4
Other		(2)
Change in operating assets and liabilities:
Accounts receivable	222	653
Inventories	496	302
Prepaids and other	62	111
Accounts payable and accrued liabilities	(1,641)	(1,499)
Income taxes	947	1,623
Net cash provided by operating activities from continuing operations	4,250	5,407
Investing Activities:
Purchases of property and equipment	(56)	(857)
Purchases of available-for-sale securities	(2,938)	(843)
Sales and maturities of available-for-sale securities	2,867	805
Cash (transferred to) received from discontinued operations	(13)	75
Cash received from sale of a strategic investment	681	1,258
Net cash provided by investing activities from continuing operations	541	438
Financing Activities:
Excess tax benefit (deficiency) from stock-based compensation plans	690	(4)
Issuance of common stock	61	84
Repurchase of common stock	(9,424)
Purchase of common stock to pay employee taxes	(1,097)
Net cash (used in) provided by financing activities from continuing operations	(9,770)	80
Net cash (used in) provided by continuing operations	(4,979)	5,925
Discontinued Operations:
Net cash (used in) provided by operating activities	(13)	75
Net cash provided by (used in) financing activities	13	(75)
Net cash provided by discontinued operations
Net change in cash and cash equivalents	(4,979)	5,925
Cash and Cash Equivalents:
Beginning of period	15,495	15,540
End of period	10,516	21,465
Supplemental Information:
Cash paid for income taxes	124	228
Noncash transactions - acquisition of property and equipment on account	123	209
Noncash transactions - share repurchase accrual	513
Noncash transactions - issuance of performance shares	$ 2,756

Basis of Presentation	3 Months Ended
Basis of Presentation	Dec. 31, 2013
Accounting Policies [Abstract]
Basis of Presentation	1. Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.”) (“GAAP”) and, in the opinion of management, reflect all adjustments, consisting solely of normal recurring adjustments, needed to fairly present the financial results of SurModics, Inc. and subsidiaries (“SurModics” or the “Company”) for the periods presented. These financial statements include some amounts that are based on management’s best estimates and judgments. These estimates may be adjusted as more information becomes available, and any adjustment could be significant. The impact of any change in estimates is included in the determination of earnings in the period in which the change in estimate is identified. The results of operations for the three months ended December 31, 2013 are not necessarily indicative of the results that may be expected for the entire 2014 fiscal year. In accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”), the Company has omitted footnote disclosures that would substantially duplicate the disclosures contained in the audited financial statements of the Company. These unaudited condensed consolidated financial statements should be read together with the audited consolidated financial statements for the fiscal year ended September 30, 2013, and footnotes thereto included in the Company’s Form 10-K as filed with the Securities and Exchange Commission on December 11, 2013.

- Definition

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

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+ Details

Key Accounting Policies

3 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Key Accounting Policies

2. Key Accounting Policies

Revenue recognition

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

The Company derives its revenue from three primary sources: (1) royalties and license fees from licensing its proprietary 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 commercial development fees generated on customer projects.

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

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

•

The milestone payment is non-refundable;

•

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

•

Accomplishment of the milestone involved substantial effort;

•

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

•

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

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

Product sales. Product sales to third parties consist of direct and distributor sales and are recognized at the time of shipment. The Company’s sales terms provide no right of return outside of the standard warranty policy. Payment terms are generally set at 30-45 days.

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

Arrangements with multiple deliverables. Revenue arrangements with multiple deliverables requires the Company to:

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

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

(iii) allocate revenue using the relative selling price method.

The Company accounts for revenue using a multiple attribution model in which consideration allocated to research and development activities is recognized as performed, and milestone payments are recognized when the milestone events are achieved, when such activities and milestones are deemed substantive. Accordingly, in situations where a unit of accounting includes both a license and research and development activities, and when a license does not have stand-alone value, the Company applies a multiple attribution model in which consideration allocated to the license is recognized ratably, consideration allocated to research and development activities is recognized as performed and milestone payments are recognized when the milestone events are achieved, when such activities and milestones are deemed substantive.

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

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

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

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

New Accounting Pronouncements

Accounting Standards to be Adopted

In July 2013, the Financial Accounting Standards Board issued amended guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar to a tax loss, or tax credit carryforward exits. The guidance requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, be presented as a reduction of a deferred tax asset when a net operating loss carryforward, or similar tax loss, or tax credit carryforward exits, with certain exceptions. This accounting guidance is effective prospectively for the Company beginning in the first quarter of fiscal 2015, with early adoption permitted. While the Company is currently evaluating the impact, its adoption is not expected to have a material impact on the Company’s financial position, results of operation or cash flows.

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

3 Months Ended

Dec. 31, 2013

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

3. Discontinued Operations

Beginning in the first quarter of fiscal 2012, the results of operations, cash flows, assets and liabilities of SurModics Pharmaceuticals, Inc. (“SurModics Pharmaceuticals”), which were previously reported in the Pharmaceuticals segment as a separate operating segment, are classified as 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 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. These obligations were settled or terminated in fiscal 2013 with payments totaling $325,000 repaid to the governmental authorities and a gain of $1.3 million recognized in the fiscal year ended September 30, 2013.

There was no condensed consolidated statement of income impact associated with discontinued operations for the three months ended December 31, 2013 and 2012.

The major classes of assets and liabilities of discontinued operations as of December 31, 2013 and September 30, 2013 were as follows:


	December 31,		September 30,
*(Dollars in thousands)*	2013		2013
Other current assets	$	46	$	46

Current assets of discontinued operations		46		46

Total assets of discontinued operations	$	46	$	46

Other current liabilities payable	$	126	$	139

Current liabilities of discontinued operations		126		139

Total liabilities of discontinued operations	$	126	$	139

The assets and liabilities of discontinued operations as of December 31, 2013 are based on accruals associated with the Southern Research Institute (“SRI”) litigation matter and a related deferred tax asset balance. See Note 17 for further discussion of the SRI litigation matter.

- 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).

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+ Details

Fair Value Measurements

3 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements

4. Fair Value Measurements

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

Fair Value Hierarchy

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

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

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. government and government agency obligations, mortgage-backed securities, municipal bonds, asset-backed securities and corporate bonds. Fair market values for these assets are based on quoted vendor prices and broker pricing where all significant inputs are observable. The Company performs limited tests of the quoted vendor prices based on available U.S. government security pricing on government websites as a means of validating the third party pricing. To ensure the accuracy of quoted vendor prices and broker pricing, the Company performs regular reviews of investment returns to industry benchmarks and sample tests of individual securities to validate quoted vendor prices with other available market data.

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

There were no Level 3 assets at December 31, 2013, September 30, 2013 or December 31, 2012 and there was no Level 3 activity in each of the first quarter of fiscal 2014 and fiscal 2013.

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 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 December 31, 2013:


*(Dollars in thousands)*	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value as of December 31, 2013
Assets:
Cash equivalents	$	—	$	9,202	$	—	$	9,202
Available-for-sale debt securities:
U.S. government and government agency obligations		—		21,767		—		21,767
Mortgage-backed securities		—		7,977		—		7,977
Municipal bonds		—		2,877		—		2,877
Asset-backed securities		—		5,348		—		5,348
Corporate bonds		—		4,661		—		4,661

Total assets measured at fair value	$	—	$	51,832	$	—	$	51,832

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2013:


*(Dollars in thousands)*	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value as of September 30, 2013
Assets:
Cash equivalents	$	—	$	4,402	$	—	$	4,402
Available-for-sale debt securities:
U.S. government and government agency obligations		—		22,890		—		22,890
Mortgage-backed securities		—		8,216		—		8,216
Municipal bonds		—		3,059		—		3,059
Asset-backed securities		—		3,537		—		3,537
Corporate bonds		—		4,907		—		4,907

Total assets measured at fair value	$	—	$	47,011	$	—	$	47,011

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.

- 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 + Details

Investments

3 Months Ended

Dec. 31, 2013

Investments Debt And Equity Securities [Abstract]

Investments

5. Investments

Investments consist principally of U.S. government and government agency obligations, mortgage-backed securities, municipal bonds, asset-backed securities and corporate bonds and they are classified as available-for-sale at December 31, 2013 and September 30, 2013. Available-for-sale securities are reported at fair value with unrealized gains and losses, net of tax, excluded from the condensed consolidated statements of income and reported in the condensed consolidated statements of comprehensive income as well as a separate component of stockholders’ equity in the condensed consolidated balance sheets, except for other-than-temporary impairments, which are reported as a charge to current earnings. A loss would be recognized when there is an other-than-temporary impairment in the fair value of any individual security classified as available-for-sale, with the associated net unrealized loss reclassified out of accumulated other comprehensive income with a corresponding adjustment to other income. This adjustment results in a new cost basis for the investment. Interest earned on debt securities, including amortization of premiums and accretion of discounts, is included in other income. Realized gains and losses from the sales of debt securities, which are included in other income, are determined using the specific identification method.

The amortized cost, unrealized holding gains and losses, and fair value of available-for-sale securities as of December 31, 2013 and September 30, 2013 were as follows:


	December 31, 2013
*(Dollars in thousands)*	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and government agency obligations	$	21,783	$	22	$	(38	)	$	21,767
Mortgage-backed securities		7,939		101		(63	)		7,977
Municipal bonds		2,865		17		(5	)		2,877
Asset-backed securities		5,348		8		(8	)		5,348
Corporate bonds		4,657		24		(20	)		4,661

Total	$	42,592	$	172	$	(134	)	$	42,630


	September 30, 2013
*(Dollars in thousands)*	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and government agency obligations	$	22,889	$	28	$	(27	)	$	22,890
Mortgage-backed securities		8,149		118		(51	)		8,216
Municipal bonds		3,049		15		(5	)		3,059
Asset-backed securities		3,539		6		(8	)		3,537
Corporate bonds		4,896		17		(6	)		4,907

Total	$	42,522	$	184	$	(97	)	$	42,609

As of December 31, 2013 and September 30, 2013, 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 amortized cost and fair value of investments by contractual maturity at December 31, 2013 were as follows:


*(Dollars in thousands)*	Amortized Cost		Fair Value
Debt securities due within:
One year	$	12,470	$	12,481
One to five years		21,046		21,046
Five years or more		9,076		9,103

Total	$	42,592	$	42,630

The following table summarizes sales of available-for-sale securities :


	Three months ended December 31,
*(Dollars in thousands)*	2013		2012
Proceeds from sales	$	2,867	$	805
Gross realized gains	$	—	$	4
Gross realized losses	$	—	$	—

- Definition

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

+ References + Details

Inventories

3 Months Ended

Dec. 31, 2013

Inventory Disclosure [Abstract]

Inventories

6. Inventories

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


	December 31,		September 30,
*(Dollars in thousands)*	2013		2013
Raw materials	$	1,231	$	1,378
Finished products		1,601		1,950

Total	$	2,832	$	3,328

Other Assets

3 Months Ended

Dec. 31, 2013

Investments All Other Investments [Abstract]

Other Assets

7. Other Assets

Other assets consist principally of strategic investments as follows:


	December 31,		September 30,
*(Dollars in thousands)*	2013		2013
CeloNova BioSciences, Inc.	$	1,500	$	1,500
ThermopeutiX, Inc.		1,185		1,185
ViaCyte, Inc.		479		479
Other		2		2

Other assets, net	$	3,166	$	3,166

The Company accounts for all of its strategic investments under the cost method as of December 31, 2013 and September 30, 2013.

In February 2011, the stent technology of Nexeon MedSystems, Inc. (“Nexeon”) was acquired by CeloNova BioSciences, Inc. (“CeloNova”). Prior to the acquisition by CeloNova, Nexeon created a wholly-owned subsidiary, Nexeon Stent, to hold the company’s stent-related assets. Nexeon distributed to its stockholders the Nexeon Stent stock which was exchanged for Series B-1 preferred shares of CeloNova. CeloNova is a privately-held Texas-based medical technology company that is marketing a variety of medical products. The Company’s investment in CeloNova, which is accounted for under the cost method, represents less than a 2% ownership interest. The Company does not exert significant influence over CeloNova’s operating or financial activities.

The Company has invested a total of $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 $5.3 million in ViaCyte, Inc. (“ViaCyte”), a privately-held California-based biotechnology firm that is developing a unique treatment for diabetes using coated islet cells, the cells that produce insulin in the human body. In fiscal 2006, the Company determined that its investment in ViaCyte was impaired and that the impairment was other than temporary. Accordingly, the Company recorded an impairment loss of $4.7 million. In the second quarter of fiscal 2013, the Company recorded an additional other-than-temporary impairment loss on this investment totaling $0.1 million based on a current financing round and market valuations. The balance of the investment of $0.5 million, which is accounted for under the cost method, represents less than a 1% ownership interest. The Company does not exert significant influence over ViaCyte’s operating or financial activities.

The Company had invested a total of $2.5 million in Vessix Vascular, Inc. (“Vessix”) and recognized an other-than-temporary impairment loss on this investment totaling $2.4 million in fiscal 2010, based on market valuations and a pending financing round for Vessix. Vessix was purchased by Boston Scientific Corporation in November 2012. The Company recorded a gain of approximately $1.2 million in “gain on sale of strategic investments” section within the condensed consolidated statements of income, on the sale of this investment in the first quarter of fiscal 2013. In the first quarter of fiscal 2014, the Company recorded a $0.7 million gain upon achievement by Vessix of a clinical milestone. Total potential maximum additional proceeds of $3.5 million may be received in the remainder of fiscal 2014 through fiscal 2017 depending on Vessix’s achievement of future sales milestones. No amounts have been recorded associated with these future milestones given the level of uncertainty that exists. Any potential additional income will be recognized once the milestones are achieved.

The total carrying value of cost method investments is reviewed quarterly for changes in circumstances or the occurrence of events that suggest the Company’s investment may not be recoverable. The 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.

For the three months ended December 31, 2013 and 2012, the Company recognized revenue of less than $0.1 million for each period from activity with companies in which it had a strategic investment.

Intangible Assets

3 Months Ended

Dec. 31, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets

8. Intangible Assets

Intangible assets consist principally of acquired patents and technology, customer relationships, licenses and trademarks. For the three months ended December 31, 2013 and 2012, the Company recorded amortization expense of $0.2 million for each period.

Intangible assets consisted of the following:


	December 31, 2013
*(Dollars in thousands)*	Weighted Average Original Life (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Definite-lived intangible assets:
Customer lists		9.0	$	4,857	$	(3,409	)	$	1,448
Core technology		8.0		530		(425	)		105
Patents and other		16.8		2,256		(887	)		1,369

Subtotal				7,643		(4,721	)		2,922
Unamortized intangible assets:
Trademarks				580		—			580

Total			$	8,223	$	(4,721	)	$	3,502


	September 30, 2013
*(Dollars in thousands)*	Weighted Average Original Life (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Definite-lived intangible assets:
Customer lists		9.0	$	4,857	$	(3,274	)	$	1,583
Core technology		8.0		530		(409	)		121
Patents and other		16.8		2,256		(852	)		1,404

Subtotal				7,643		(4,535	)		3,108
Unamortized intangible assets:
Trademarks				580		—			580

Total			$	8,223	$	(4,535	)	$	3,688

Based on the intangible assets in service as of December 31, 2013, estimated amortization expense for the remainder of fiscal 2014 and each of the next five fiscal years is as follows (Dollars in thousands):


Remainder of 2014	$	557
2015		731
2016		594
2017		183
2018		137
2019		137

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	3 Months Ended
Goodwill	Dec. 31, 2013
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	9. Goodwill Goodwill represents the excess of the cost of an acquired entity over the fair value assigned to the assets purchased and liabilities assumed in connection with a business acquisition. Goodwill is not amortized but is subject, at a minimum, to annual tests for impairment in accordance with accounting guidance for goodwill. The carrying amount of goodwill is evaluated annually, and between annual evaluations if events occur or circumstances change indicating that the carrying amount of goodwill may be impaired. The $8.0 million of goodwill at December 31, 2013 and September 30, 2013 is related to the In Vitro Diagnostics reporting unit and represents the gross value from the acquisition of BioFX Laboratories, Inc. (“BioFX”) in 2007. The goodwill was not impaired based on the outcome of the fiscal 2013 annual impairment test, and there have been no events or circumstances that have occurred in the first quarter of fiscal 2014 associated with the In Vitro Diagnostics reporting unit to indicate that the goodwill may be impaired.

Stock-based Compensation

3 Months Ended

Dec. 31, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-based Compensation

10. Stock-based Compensation

The Company has stock-based compensation plans under which it grants stock options, restricted stock awards, performance share awards and restricted stock units. Accounting guidance requires all share-based payments to be recognized as an operating expense, based on their fair values, over the requisite service period.

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


	Three months ended December 31,
*(Dollars in thousands)*	2013		2012
Product costs	$	4	$	3
Research and development		52		23
Selling, general and administrative		757		366

Total	$	813	$	392

As of December 31, 2013, approximately $5.1 million of total unrecognized compensation costs related to non-vested awards is expected to be recognized over a weighted average period of approximately 2.4 years. The unrecognized compensation costs above include $1.6 million based on payout levels associated with performance share awards that are currently anticipated to be fully expensed because the performance conditions are expected to be met at or above target levels.

Stock Option Awards

The Company uses the Black-Scholes option pricing model to determine the weighted average grant date fair value of stock options granted. The weighted average per share fair values of stock options granted during the three months ended December 31, 2013 and 2012 were $8.80 and $8.48, respectively. The assumptions used as inputs in the model were as follows:


	Three months ended December 31,
	2013			2012
Risk-free interest rates		1.2	%		0.6	%
Expected life (years)		4.6			4.8
Expected volatility		45.1	%		49.2	%
Dividend yield		0.0	%		0.0	%

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

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

The total pre-tax intrinsic value of options exercised during the three months ended December 31, 2013 and 2012 was $0.5 million and less than $0.1 million, respectively. The intrinsic value represents the difference between the average exercise price and the fair market value of the Company’s common stock on the last day of the respective fiscal period end.

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 less than $0.1 million and $0.1 million during the three months ended December 31, 2013 and 2012, respectively.

Performance Share Awards

The Company has entered into performance share agreements with certain key employees, covering the issuance of common stock (“Performance Shares”). The Performance Shares vest upon the achievement of all or a portion of certain performance objectives, which must be achieved during the performance period. 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 for fiscal 2011 (2011 – 2013), fiscal 2012 (2012 – 2014), fiscal 2013 (2013 – 2015) and fiscal 2014 (2014 – 2016). Assuming that the minimum performance level is attained, the number of shares that may actually vest will vary based on performance from 20% (minimum) to 200% (maximum). 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 fiscal 2011 awards were finalized in the three months ended December 31, 2013 and resulted in issuance of 122,053 shares (maximum was 137,066 shares) based on the performance objective 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 specified performance objectives for Performance Shares. For the three months ended December 31, 2013 and 2012, the Company recognized expense of $0.3 million and $0.2 million, respectively. The stock-based compensation table above includes the Performance Shares expenses.

The fair values of the Performance Shares, at target, were $0.9 million, $0.9 million and $0.8 million for grants awarded in fiscal 2014, 2013 and 2012, 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 2012 - 2014		12,499		62,497		124,994
Fiscal 2013 - 2015		8,551		42,753		85,506
Fiscal 2014 - 2016		7,861		39,303		78,606

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 December 31, 2013 and 2012, there were $0.1 million and less than $0.1 million, respectively, of employee contributions in each period included in accrued liabilities in the condensed consolidated balance sheets. Stock compensation expense recognized related to the Stock Purchase Plan for the three months ended December 31, 2013 and 2012 totaled less than $0.1 million in each period. The stock-based compensation table above includes the Stock Purchase Plan expenses.

Restricted Stock Units

The Company has awarded 22,400 restricted stock units (“RSU”) in fiscal 2014 and 2013 under the 2009 Equity Incentive Plan to non-employee directors. The RSU awards vest annually at a rate of 33%. RSU awards are not considered issued or outstanding common stock of the Company until they vest. The estimated fair value of the RSU awards was calculated based on the closing market price of SurModics’ common stock on the date of grant. Compensation has been recognized for the estimated fair value of the common shares and is being charged to income over the vesting term. Directors can also elect to receive their cash retainers for services to the Board of Directors and its committees in the form of RSUs. Certain directors elected this option beginning on January 1, 2013 which has resulted in 7,821 units issued with a total value of $184,000. These RSUs are fully vested. The stock-based compensation table above includes RSU expenses recognized related to these awards, which totaled $0.1 million and less than $0.1 million for the three months ended December 31, 2013 and 2012, respectively.

Restructuring Charges

3 Months Ended

Dec. 31, 2013

Restructuring And Related Activities [Abstract]

Restructuring Charges

11. Restructuring Charges

During the three months ended December 31, 2013 and 2012, the Company did not incur any restructuring charges.

In September 2013 (fiscal 2013), the Company announced a realignment of its business to enhance focus on key growth initiatives. As a result of the organizational change, the Company eliminated approximately 6% of its workforce. These employee terminations occurred across various functions, and the reorganization plan was completed by the end of fiscal 2013. The Company recorded total pre-tax restructuring charges of $0.5 million in the fourth quarter of fiscal 2013, which consisted of severance pay and benefits expenses.

The following table summarizes the restructuring accrual activity:


*(Dollars in thousands)*	Employee Severance and Benefits			Facility- Related Costs			Total
Balance at September 30, 2013	$	399		$	17		$	416
Cash payments		(173	)		(15	)		(188	)

Balance at December 31, 2013	$	226		$	2		$	228

The remaining restructuring accrual balance relates to the fiscal 2013 restructuring and is expected to be paid within the next 12 months. As such, the total balance is recorded as a current liability within other current liabilities on the consolidated balance sheet as of December 31, 2013.

Revolving Credit Facility	3 Months Ended
Revolving Credit Facility	Dec. 31, 2013
Text Block [Abstract]
Revolving Credit Facility	12. Revolving Credit Facility On November 4, 2013, the Company entered into a three-year $20.0 million secured revolving credit facility. The Company’s obligations under the credit facility are secured by substantially all of its and its subsidiaries’ assets, other than intellectual property and real estate. Borrowings under the credit facility, if any, will bear interest at a benchmark rate plus a margin ranging from 1.375% to 2.00% based on the Company’s leverage ratio. A facility fee is payable on unused commitments at a rate of 0.20% per annum. In connection with the credit facility, the Company is required to maintain financial covenants related to a maximum leverage ratio and a minimum EBITDA amount and nonfinancial covenants. As of December 31, 2013, the Company has no debt outstanding and was in compliance with all financial and nonfinancial covenants.

Income Per Share Data

3 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Income Per Share Data

13. Income Per Share Data

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

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


	Three months ended December 31,
	2013		2012
Basic weighted average shares outstanding		13,756		14,655
Dilutive effect of outstanding stock options, non-vested restricted stock and performance shares		253		208

Diluted weighted average shares outstanding		14,009		14,863

The calculation of weighted average diluted shares outstanding excludes outstanding stock options associated with the right to purchase 0.4 million and 0.7 million shares of common stock for the three months ended December 31, 2013 and 2012, respectively, as their inclusion would have had an antidilutive effect on diluted income per share.

During the first quarter of fiscal 2014, the Company repurchased 380,011 shares of common stock for a total of $8.9 million under the July 2013 authorization, including $0.5 million associated with open repurchases at December 31, 2013. During the first quarter of fiscal 2013, there were no purchases of common stock of the Company. As of December 31, 2013, the Company has $2.6 million available for future repurchases under the current authorization. In January 2014, the $2.6 million remaining under the repurchase program was used to repurchase additional shares of common stock, and the repurchase authorization is now completed.

Income Taxes	3 Months Ended
Income Taxes	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Income Taxes	14. Income Taxes The Company recorded income tax provisions associated with income from continuing operations of $1.5 million and $1.9 million for the three months ended December 31, 2013 and 2012, respectively, representing effective tax rates of 28.8% and 30.6%, respectively. The difference between the U.S. federal statutory tax rate of 35% and the Company’s effective tax rate for the three months ended December 31, 2013 and 2012 reflects the impact of state income taxes, permanent tax items and discrete tax benefits. The three months ended December 31, 2013 and 2012 also reflects the impact of a gain related to a Vessix contingent consideration payment and gain on sale of our ownership interest in Vessix stock, neither of which resulted in recognition of tax expense as a result of the reversal of a capital loss valuation allowance. The total amount of unrecognized tax benefits including interest and penalties that, if recognized, would affect the effective tax rate as of December 31, 2013 and September 30, 2013, respectively, are $0.9 million and $1.0 million for each period. Currently, the Company does not expect the liability for unrecognized tax benefits to change significantly in the next 12 months with the above balances classified on the condensed consolidated balance sheets in other long-term liabilities. Interest and penalties related to unrecognized tax benefits are recorded in income tax expense. The Company files income tax returns, including returns for its subsidiaries, in the U.S. federal jurisdiction and in various state jurisdictions. Uncertain tax positions are related to tax years that remain subject to examination. The Internal Revenue Service has commenced an examination of the Company’s U.S. income tax return for fiscal 2012 in the first quarter of fiscal 2014. U.S. income tax returns for years prior to fiscal 2010 are no longer subject to examination by federal tax authorities. For tax returns for state and local jurisdictions, the Company is no longer subject to examination for tax years generally before fiscal 2003.

Amounts Reclassified Out of Accumulated Other Comprehensive Income	3 Months Ended
	Dec. 31, 2013
Equity [Abstract]
Amounts Reclassified Out of Accumulated Other Comprehensive Income	15. Amounts Reclassified Out of Accumulated Other Comprehensive Income Amounts reclassified out of accumulated other comprehensive income (“AOCI”) were less than $0.1 million on a pre-tax basis for each of the three months ended December 31, 2013 and 2012. The amounts reclassified out of AOCI are associated with unrealized gains on available-for-sale securities that were realized on the sale of the securities and are presented in other income, net in the condensed consolidated statements of income.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e689-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=28358780&loc=SL7669619-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e640-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 17
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-Name Accounting Standards Codification
-Topic 505
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-Paragraph 1
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-Name Accounting Standards Codification
-Glossary Reclassification Adjustments
-URI http://asc.fasb.org/extlink&oid=6522872

+ Details

Operating Segments

3 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Operating Segments

16. 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. For financial accounting and reporting purposes, the Company reports its results for the two reportable segments as follows: (1) the Medical Device unit, which is comprised of surface modification coating technologies to improve access, deliverability, and predictable deployment of medical devices, 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 and depreciation and amortization, as follows:


	Three months ended December 31,
*(Dollars in thousands)*	2013			2012
Revenue:
Medical Device	$	10,549		$	10,531
In Vitro Diagnostics		3,334			3,320

Total revenue	$	13,883		$	13,851

Operating income:
Medical Device	$	5,328		$	5,840
In Vitro Diagnostics		671			751

Total segment operating income		5,999			6,591
Corporate		(1,670	)		(1,714	)

Total operating income	$	4,329		$	4,877

Depreciation and amortization:
Medical Device	$	294		$	317
In Vitro Diagnostics		214			215
Corporate		189			190

Total depreciation and amortization	$	697		$	722

The Corporate category includes expenses for administrative corporate functions, such as executive, corporate accounting, legal, human resources and Board of Directors related, that have not been fully allocated to the Medical Device and In Vitro Diagnostics segments. Corporate also includes expenses, such as litigation, which are not specific to a segment and thus not allocated to the operating segments.

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

- 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
-Topic 280
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-Section 50
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-Publisher FASB
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-Topic 280
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-Name Accounting Standards Codification
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-Publisher FASB
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-Topic 280
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+ Details

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Dec. 31, 2013
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	17. 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 is expected to take place in the May to July 2014 timeframe. Based on the facts known to date, the Company recorded a $100,000 expense in discontinued operations for the year ended September 30, 2013. The Company has not recorded additional accruals 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. 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 had recorded cumulative unreimbursed legal expenses totaling $1.3 million as of June 30, 2013, related to this litigation, within selling, general and administrative expenses from continuing operations in the condensed consolidated statements of income. In June 2011, the Company sued SRI in United States District Court for the District of Minnesota seeking a judicial declaration regarding the scope of the Company’s indemnification rights under the Stock Purchase Agreement. On April 17, 2013, the District Court entered a judgment in the Company’s favor requiring SRI to indemnify the Company for prior and future legal expenditures related to this matter. On July 30, 2013, the Company and SRI entered into a settlement and release agreement resolving the litigation relating to indemnification rights. The settlement and release agreement does not relate to claims for indemnification under the Stock Purchase Agreement for any substantive liability, judgment, or settlement in or related to the ongoing litigation in Alabama discussed above. The Company received payment of $1.0 million associated with the historical cumulative unreimbursed legal expenses and recognized the receipt as an expense offset in the fourth quarter ended September 30, 2013. This settlement included $0.6 million of legal expenses incurred prior to fiscal 2013. Additionally, under the settlement and release agreement, the Company will be reimbursed for 75% of the legal fees, costs and expenses that the Company may incur in the future in connection with the Alabama litigation that are not considered excessive. 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 December 31, 2013 as the milestones have not been achieved and the probability of achievement is low. InnoCore Technologies BV. In March 2006, the Company entered into a license agreement whereby SurModics obtained an exclusive license to a drug delivery coating for licensed products within the vascular field which included peripheral, coronary and neurovascular biodurable stent product. The license requires an annual minimum payment of 200,000 euros (equivalent to $275,000 using a euro to U.S. $ exchange rate of 1.3766 as of December 31, 2013) until the last patent expires which is currently estimated to be September 2027. The total minimum future payments associated with this license are approximately $3.9 million. The license is currently utilized with one of SurModics’ drug delivery customers. PR Pharmaceuticals, Inc. In November 2008, SurModics Pharmaceuticals acquired certain contracts and assets of PR Pharma to enhance its portfolio of drug delivery technologies for the pharmaceutical and biotechnology industries. The Company agreed to indemnify Evonik, for a period of five years, for up to $2.5 million of contingent consideration obligations to the sellers of PR Pharma related to a future patent issuance milestone when it sold substantially all of the SurModics Pharmaceuticals assets to Evonik on November 17, 2011. The Company has not recorded any accrual for this contingency as of December 31, 2013 as the milestone has not been achieved and the probability of achievement is low.

Key Accounting Policies (Policies)

3 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Revenue recognition

Revenue recognition

Royalties and license fees

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

•

The milestone payment is non-refundable;

•

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

•

Accomplishment of the milestone involved substantial effort;

•

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

•

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

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

Product sales

Research and development

Arrangements with multiple deliverables

Arrangements with multiple deliverables. Revenue arrangements with multiple deliverables requires the Company to:

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

(iii) allocate revenue using the relative selling price method.

New Accounting Pronouncements

New Accounting Pronouncements

Accounting Standards to be Adopted

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

- Definition

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

+ References + Details

Discontinued Operations (Tables)

3 Months Ended

Dec. 31, 2013

Discontinued Operations And Disposal Groups [Abstract]

Assets and Liabilities of Discontinued Operations

The major classes of assets and liabilities of discontinued operations as of December 31, 2013 and September 30, 2013 were as follows:


	December 31,		September 30,
*(Dollars in thousands)*	2013		2013
Other current assets	$	46	$	46

Current assets of discontinued operations		46		46

Total assets of discontinued operations	$	46	$	46

Other current liabilities payable	$	126	$	139

Current liabilities of discontinued operations		126		139

Total liabilities of discontinued operations	$	126	$	139

Fair Value Measurements (Tables)

3 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2013:


*(Dollars in thousands)*	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value as of December 31, 2013
Assets:
Cash equivalents	$	—	$	9,202	$	—	$	9,202
Available-for-sale debt securities:
U.S. government and government agency obligations		—		21,767		—		21,767
Mortgage-backed securities		—		7,977		—		7,977
Municipal bonds		—		2,877		—		2,877
Asset-backed securities		—		5,348		—		5,348
Corporate bonds		—		4,661		—		4,661

Total assets measured at fair value	$	—	$	51,832	$	—	$	51,832

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2013:


*(Dollars in thousands)*	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value as of September 30, 2013
Assets:
Cash equivalents	$	—	$	4,402	$	—	$	4,402
Available-for-sale debt securities:
U.S. government and government agency obligations		—		22,890		—		22,890
Mortgage-backed securities		—		8,216		—		8,216
Municipal bonds		—		3,059		—		3,059
Asset-backed securities		—		3,537		—		3,537
Corporate bonds		—		4,907		—		4,907

Total assets measured at fair value	$	—	$	47,011	$	—	$	47,011

Investments (Tables)

3 Months Ended

Dec. 31, 2013

Investments Debt And Equity Securities [Abstract]

Amortized Cost, Unrealized Holding Gains (Losses) and Fair Value of Available-for-Sale Securities

The amortized cost, unrealized holding gains and losses, and fair value of available-for-sale securities as of December 31, 2013 and September 30, 2013 were as follows:


	December 31, 2013
*(Dollars in thousands)*	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and government agency obligations	$	21,783	$	22	$	(38	)	$	21,767
Mortgage-backed securities		7,939		101		(63	)		7,977
Municipal bonds		2,865		17		(5	)		2,877
Asset-backed securities		5,348		8		(8	)		5,348
Corporate bonds		4,657		24		(20	)		4,661

Total	$	42,592	$	172	$	(134	)	$	42,630


	September 30, 2013
*(Dollars in thousands)*	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and government agency obligations	$	22,889	$	28	$	(27	)	$	22,890
Mortgage-backed securities		8,149		118		(51	)		8,216
Municipal bonds		3,049		15		(5	)		3,059
Asset-backed securities		3,539		6		(8	)		3,537
Corporate bonds		4,896		17		(6	)		4,907

Total	$	42,522	$	184	$	(97	)	$	42,609

Amortized Cost and Fair Value of Investments by Contractual Maturity

The amortized cost and fair value of investments by contractual maturity at December 31, 2013 were as follows:


*(Dollars in thousands)*	Amortized Cost		Fair Value
Debt securities due within:
One year	$	12,470	$	12,481
One to five years		21,046		21,046
Five years or more		9,076		9,103

Total	$	42,592	$	42,630

Sales of Available-for-Sale Securities

The following table summarizes sales of available-for-sale securities :


	Three months ended December 31,
*(Dollars in thousands)*	2013		2012
Proceeds from sales	$	2,867	$	805
Gross realized gains	$	—	$	4
Gross realized losses	$	—	$	—

Inventories (Tables)

3 Months Ended

Dec. 31, 2013

Inventory Disclosure [Abstract]

Components of Inventories

Inventories consisted of the following components:


	December 31,		September 30,
*(Dollars in thousands)*	2013		2013
Raw materials	$	1,231	$	1,378
Finished products		1,601		1,950

Total	$	2,832	$	3,328

Other Assets (Tables)

3 Months Ended

Dec. 31, 2013

Investments All Other Investments [Abstract]

Schedule of Other Assets Consist Principally of Strategic Investments

Other assets consist principally of strategic investments as follows:


	December 31,		September 30,
*(Dollars in thousands)*	2013		2013
CeloNova BioSciences, Inc.	$	1,500	$	1,500
ThermopeutiX, Inc.		1,185		1,185
ViaCyte, Inc.		479		479
Other		2		2

Other assets, net	$	3,166	$	3,166

Intangible Assets (Tables)

3 Months Ended

Dec. 31, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

Intangible assets consisted of the following:


	December 31, 2013
*(Dollars in thousands)*	Weighted Average Original Life (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Definite-lived intangible assets:
Customer lists		9.0	$	4,857	$	(3,409	)	$	1,448
Core technology		8.0		530		(425	)		105
Patents and other		16.8		2,256		(887	)		1,369

Subtotal				7,643		(4,721	)		2,922
Unamortized intangible assets:
Trademarks				580		—			580

Total			$	8,223	$	(4,721	)	$	3,502


	September 30, 2013
*(Dollars in thousands)*	Weighted Average Original Life (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Definite-lived intangible assets:
Customer lists		9.0	$	4,857	$	(3,274	)	$	1,583
Core technology		8.0		530		(409	)		121
Patents and other		16.8		2,256		(852	)		1,404

Subtotal				7,643		(4,535	)		3,108
Unamortized intangible assets:
Trademarks				580		—			580

Total			$	8,223	$	(4,535	)	$	3,688

Estimated Amortization Expenses


Remainder of 2014	$	557
2015		731
2016		594
2017		183
2018		137
2019		137

Stock-based Compensation (Tables)

3 Months Ended

Dec. 31, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation Expenses

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


	Three months ended December 31,
*(Dollars in thousands)*	2013		2012
Product costs	$	4	$	3
Research and development		52		23
Selling, general and administrative		757		366

Total	$	813	$	392

Assumptions Used in Stock Option Plans

The assumptions used as inputs in the model were as follows:


	Three months ended December 31,
	2013			2012
Risk-free interest rates		1.2	%		0.6	%
Expected life (years)		4.6			4.8
Expected volatility		45.1	%		49.2	%
Dividend yield		0.0	%		0.0	%

Schedule of Fair Value at the Date of Grant

The aggregate number of shares that could be awarded to 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 2012 - 2014		12,499		62,497		124,994
Fiscal 2013 - 2015		8,551		42,753		85,506
Fiscal 2014 - 2016		7,861		39,303		78,606

Restructuring Charges (Tables)

3 Months Ended

Dec. 31, 2013

Restructuring And Related Activities [Abstract]

Restructuring Accrual Activities

The following table summarizes the restructuring accrual activity:


*(Dollars in thousands)*	Employee Severance and Benefits			Facility- Related Costs			Total
Balance at September 30, 2013	$	399		$	17		$	416
Cash payments		(173	)		(15	)		(188	)

Balance at December 31, 2013	$	226		$	2		$	228

Income Per Share Data (Tables)

3 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Components of Basic and Diluted Income Per Share Computation

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


	Three months ended December 31,
	2013		2012
Basic weighted average shares outstanding		13,756		14,655
Dilutive effect of outstanding stock options, non-vested restricted stock and performance shares		253		208

Diluted weighted average shares outstanding		14,009		14,863

Operating Segments (Tables)

3 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment Revenue, Operating Income and Depreciation and Amortization

The tables below present segment revenue, operating income and depreciation and amortization, as follows:


	Three months ended December 31,
*(Dollars in thousands)*	2013			2012
Revenue:
Medical Device	$	10,549		$	10,531
In Vitro Diagnostics		3,334			3,320

Total revenue	$	13,883		$	13,851

Operating income:
Medical Device	$	5,328		$	5,840
In Vitro Diagnostics		671			751

Total segment operating income		5,999			6,591
Corporate		(1,670	)		(1,714	)

Total operating income	$	4,329		$	4,877

Depreciation and amortization:
Medical Device	$	294		$	317
In Vitro Diagnostics		214			215
Corporate		189			190

Total depreciation and amortization	$	697		$	722

Key Accounting Policies - Additional Information (Detail)	3 Months Ended
	Dec. 31, 2013
Accounting Policies [Abstract]
Product sales payment terms, general minimum	30 days
Product sales payment terms, general maximum	45 days

Discontinued Operations - Additional Information (Detail) - USD ($)		3 Months Ended		12 Months Ended
	Nov. 17, 2011	Dec. 31, 2013	Dec. 31, 2012	Sep. 30, 2013
Discontinued Operations [Line Items]
Total consideration received from the Pharma Sale	$ 30,000,000
Restricted time period for competition	5 years
Income impact associated with discontinued operations		$ 0	$ 0
Government Authorities in Alabama [Member]
Discontinued Operations [Line Items]
Payment on settlement of retained liability				$ 325,000
Gain (Loss) on sale of discontinued operations, net of income taxes				$ 1,300,000

Discontinued Operations - Assets and Liabilities of Discontinued Operations (Detail) - USD ($) $ in Thousands	Dec. 31, 2013	Sep. 30, 2013
Discontinued Operations And Disposal Groups [Abstract]
Other current assets	$ 46	$ 46
Current assets of discontinued operations	46	46
Total assets of discontinued operations	46	46
Other current liabilities payable	126	139
Current liabilities of discontinued operations	126	139
Total liabilities of discontinued operations	$ 126	$ 139

Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2012
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 0	$ 0	$ 0

Investments - Amortized Cost, Unrealized Holding Gains (Losses) and Fair Value of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands	Dec. 31, 2013	Sep. 30, 2013
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 42,592	$ 42,522
Unrealized Gains	172	184
Unrealized Losses	(134)	(97)
Fair Value	42,630	42,609
Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,865	3,049
Unrealized Gains	17	15
Unrealized Losses	(5)	(5)
Fair Value	2,877	3,059
Corporate Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	4,657	4,896
Unrealized Gains	24	17
Unrealized Losses	(20)	(6)
Fair Value	4,661	4,907
U.S. government and government agency obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	21,783	22,889
Unrealized Gains	22	28
Unrealized Losses	(38)	(27)
Fair Value	21,767	22,890
Mortgage-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	7,939	8,149
Unrealized Gains	101	118
Unrealized Losses	(63)	(51)
Fair Value	7,977	8,216
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	5,348	3,539
Unrealized Gains	8	6
Unrealized Losses	(8)	(8)
Fair Value	$ 5,348	$ 3,537

Investments - Amortized Cost and Fair Value of Investments by Contractual Maturity (Detail) $ in Thousands	Dec. 31, 2013 USD ($)
Amortized cost
Debt securities due within one year	$ 12,481
Debt securities due within one to five years	21,046
Debt securities due within five years or more	9,103
Total	42,630
Fair value
Debt securities due within one year	12,470
Debt securities due within one to five years	21,046
Debt securities due within five years or more	9,076
Total	$ 42,592

Investments - Sales of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Investments Debt And Equity Securities [Abstract]
Proceeds from sales	$ 2,867	$ 805
Gross realized gains		4
Gross realized losses

Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands	Dec. 31, 2013	Sep. 30, 2013
Inventory Disclosure [Abstract]
Raw materials	$ 1,231	$ 1,378
Finished products	1,601	1,950
Total	$ 2,832	$ 3,328

Other Assets - Schedule of Other Assets Consist Principally of Strategic Investments (Detail) - USD ($) $ in Thousands	Dec. 31, 2013	Sep. 30, 2013
Schedule of Investments [Line Items]
Other assets, net	$ 3,166	$ 3,166
CeloNova BioSciences, Inc. [Member]
Schedule of Investments [Line Items]
Other assets, net	1,500	1,500
ThermopeutiX, Inc. [Member]
Schedule of Investments [Line Items]
Other assets, net	1,185	1,185
ViaCyte, Inc. [Member]
Schedule of Investments [Line Items]
Other assets, net	479	479
Other [Member]
Schedule of Investments [Line Items]
Other assets, net	$ 2	$ 2

Other Assets - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended			12 Months Ended
	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2010	Sep. 30, 2006
Schedule of Investments [Line Items]
Gain on sale of investment	$ 681		$ 1,174
Revenue recognized from activity with companies in which it had strategic investment	$ 100		100
CeloNova BioSciences, Inc. [Member] \| Maximum [Member]
Schedule of Investments [Line Items]
Company's ownership percentage	2.00%
ThermopeutiX, Inc. [Member] \| Maximum [Member]
Schedule of Investments [Line Items]
Company's ownership percentage	20.00%
ViaCyte, Inc. [Member]
Schedule of Investments [Line Items]
Impairment loss on investment	$ 5,300	$ 100			$ 4,700
Cost method of investment	$ 500
ViaCyte, Inc. [Member] \| Maximum [Member]
Schedule of Investments [Line Items]
Company's ownership percentage	1.00%
Vessix Vascular, Inc. [Member]
Schedule of Investments [Line Items]
Impairment loss on investment	$ 1,200
Investment In Vessix Vascular, Inc. [Member]
Schedule of Investments [Line Items]
Impairment loss on investment	2,500			$ 2,400
Gain on sale of investment			$ 1,200
Clinical milestone payment to be received	700
Investment In Vessix Vascular, Inc. [Member] \| Maximum [Member]
Schedule of Investments [Line Items]
Potential proceeds on achievement of future milestones	$ 3,500

Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense	$ 0.2	$ 0.2

Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013
Intangible Assets [Line Items]
Definite lived intangible assets, Gross Carrying Amount	$ 8,223	$ 8,223
Definite lived intangible assets, Accumulated Amortization	(4,721)	(4,535)
Definite lived intangible assets, Net	$ 3,502	$ 3,688
Customer Lists [Member]
Intangible Assets [Line Items]
Definite lived intangible assets, Weighted Average Original Life (Years)	9 years	9 years
Definite lived intangible assets, Gross Carrying Amount	$ 4,857	$ 4,857
Definite lived intangible assets, Accumulated Amortization	(3,409)	(3,274)
Definite lived intangible assets, Net	$ 1,448	$ 1,583
Core Technology [Member]
Intangible Assets [Line Items]
Definite lived intangible assets, Weighted Average Original Life (Years)	8 years	8 years
Definite lived intangible assets, Gross Carrying Amount	$ 530	$ 530
Definite lived intangible assets, Accumulated Amortization	(425)	(409)
Definite lived intangible assets, Net	$ 105	$ 121
Patents and Other [Member]
Intangible Assets [Line Items]
Definite lived intangible assets, Weighted Average Original Life (Years)	16 years 9 months 18 days	16 years 9 months 18 days
Definite lived intangible assets, Gross Carrying Amount	$ 2,256	$ 2,256
Definite lived intangible assets, Accumulated Amortization	(887)	(852)
Definite lived intangible assets, Net	1,369	1,404
Definite-lived intangible assets [Member]
Intangible Assets [Line Items]
Definite lived intangible assets, Gross Carrying Amount	7,643	7,643
Definite lived intangible assets, Accumulated Amortization	(4,721)	(4,535)
Definite lived intangible assets, Net	2,922	3,108
Trademarks [Member]
Intangible Assets [Line Items]
Definite lived intangible assets, Gross Carrying Amount	580	580
Definite lived intangible assets, Accumulated Amortization
Definite lived intangible assets, Net	$ 580	$ 580

Intangible Assets - Estimated Amortization Expenses (Detail) $ in Thousands	Dec. 31, 2013 USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
2014	$ 557
2015	731
2016	594
2017	183
2018	137
2019	$ 137

Goodwill - Additional Information (Detail) - USD ($) $ in Thousands	Dec. 31, 2013	Sep. 30, 2013
Goodwill [Line Items]
Goodwill	$ 8,010	$ 8,010
In Vitro Diagnostics [Member]
Goodwill [Line Items]
Goodwill	$ 8,000	$ 8,000

Stock-based Compensation - Stock-based Compensation Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expenses	$ 813	$ 392
Product costs [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expenses	4	3
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expenses	52	23
Selling, general and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expenses	$ 757	$ 366

Stock-based Compensation - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended		12 Months Ended
	Sep. 30, 2000	Dec. 31, 2013	Dec. 31, 2012	Sep. 30, 2013	Sep. 30, 2012
Stock Based Compensation Activity [Line Items]
Unrecognized compensation costs related to non-vested awards		$ 5,100,000
Weighted average period for recognition of compensation costs related to non-vested awards		2 years 4 months 24 days
Performance Share Awards Fully Expensed		$ 1,600,000
Weighted average per share fair value of stock options		$ 8.80	$ 8.48
Dividend yield		0.00%	0.00%
Percentage of non qualified stock options on each of first five anniversaries		20.00%
Percentage of non qualified stock options on each of first four anniversaries		25.00%
Total pre-tax intrinsic value of options exercised		$ 500,000
Restricted stock expense		$ 100,000	$ 100,000
Performance Shares, time period		3 years
Expense recognized related to Performance Shares		$ 300,000	200,000
Employee contributions		100,000
RSU expenses		$ 100,000
Minimum [Member]
Stock Based Compensation Activity [Line Items]
Performance share awards, estimated vesting percentage		20.00%
Maximum [Member]
Stock Based Compensation Activity [Line Items]
Total pre-tax intrinsic value of options exercised			100,000
Performance share awards, estimated vesting percentage		200.00%
Common stock authorized, shares	400,000
Annual compensation withheld	10.00%
Annual compensation withheld, maximum limit	$ 25,000
Employee contributions			100,000
Stock compensation expenses recognized		$ 100,000	100,000
RSU expenses			$ 100,000
Fiscal 2011 - 2013 [Member]
Stock Based Compensation Activity [Line Items]
Performance period start year		2011
Performance period end year		2013
Fiscal 2012 - 2014 [Member]
Stock Based Compensation Activity [Line Items]
Performance period start year		2012
Performance period end year		2014
Fiscal 2013 - 2015 [Member]
Stock Based Compensation Activity [Line Items]
Performance period start year		2013
Performance period end year		2015
Fiscal 2014 - 2016 [Member]
Stock Based Compensation Activity [Line Items]
Performance period start year		2014
Performance period end year		2016
Nonqualified Stock Options [Member] \| Minimum [Member]
Stock Based Compensation Activity [Line Items]
Stock option expiration term upon expiration of employment or service		7 years
Nonqualified Stock Options [Member] \| Maximum [Member]
Stock Based Compensation Activity [Line Items]
Stock option expiration term upon expiration of employment or service		10 years
Performance Shares [Member]
Stock Based Compensation Activity [Line Items]
Issuance of shares		122,053
Fair value of performance shares for grants awarded				$ 900,000	$ 800,000
Performance Shares [Member] \| Maximum [Member]
Stock Based Compensation Activity [Line Items]
Issuance of shares		137,066
Performance Shares [Member] \| Scenario, Forecast [Member]
Stock Based Compensation Activity [Line Items]
Fair value of performance shares for grants awarded		$ 900,000
Restricted Stock Units (RSUs) [Member]
Stock Based Compensation Activity [Line Items]
Number of restricted stock units awarded		7,821		22,400
Number of restricted stock issued value		$ 184,000
RSU award vest each year		33.00%
Restricted Stock Units (RSUs) [Member] \| Scenario, Forecast [Member]
Stock Based Compensation Activity [Line Items]
Number of restricted stock units awarded		22,400

Stock-based Compensation - Assumptions Used in Stock Option Plans (Detail)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Risk-free interest rates	1.20%	0.60%
Expected life (years)	4 years 7 months 6 days	4 years 9 months 18 days
Expected volatility	45.10%	49.20%
Dividend yield	0.00%	0.00%

Stock-based Compensation - Schedule of Fair Value at the Date of Grant (Detail)	3 Months Ended
	Dec. 31, 2013 shares
Fiscal 2012 - 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Minimum Shares	12,499
Target Shares	62,497
Maximum Shares	124,994
Fiscal 2013 - 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Minimum Shares	8,551
Target Shares	42,753
Maximum Shares	85,506
Fiscal 2014 - 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Minimum Shares	7,861
Target Shares	39,303
Maximum Shares	78,606

Restructuring Charges - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Sep. 30, 2013
Restructuring And Related Activities [Abstract]
Restructuring charges	$ 0.0	$ 0.0
Percentage of eliminated work force			6.00%
Pre-Tax Restructuring Charges			$ 0.5

Restructuring Charges - Restructuring Accrual Activities (Detail) $ in Thousands	3 Months Ended
	Dec. 31, 2013 USD ($)
Restructuring Cost and Reserve [Line Items]
Beginning Balance	$ 416
Cash payments	(188)
Ending Balance	228
Employee Severance and Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Beginning Balance	399
Cash payments	(173)
Ending Balance	226
Facility-Related Costs [Member]
Restructuring Cost and Reserve [Line Items]
Beginning Balance	17
Cash payments	(15)
Ending Balance	$ 2

Revolving Credit Facility - Additional Information (Detail) - USD ($)	Nov. 04, 2013	Dec. 31, 2013
Line of Credit Facility [Line Items]
Credit facility initiation date	Nov. 04, 2013
Revolving credit facility amount	$ 20,000,000
Credit facility fee percentage	0.20%
Line of Credit Facility, Expiration Period	3 years
Debt Outstanding		$ 0
Minimum [Member]
Line of Credit Facility [Line Items]
Credit facility interest rate	1.375%
Maximum [Member]
Line of Credit Facility [Line Items]
Credit facility interest rate	2.00%

Income Per Share Data - Components of Basic and Diluted Income Per Share Computation (Detail) - shares shares in Thousands	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Earnings Per Share [Abstract]
Basic weighted average shares outstanding	13,756	14,655
Dilutive effect of outstanding stock options, non-vested restricted stock and performance shares	253	208
Diluted weighted average shares outstanding	14,009	14,863

Income Per Share Data - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Jan. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Earnings Loss Per Share [Line Items]
Weighted average diluted shares outstanding excluded outstanding stock options		400,000	700,000
Common stock repurchased, Shares		380,011	0
Common stock repurchased		$ 8,900
Amount available for repurchase of shares		2,600
Amount used to repurchase common stock		9,424
Subsequent Event [Member]
Earnings Loss Per Share [Line Items]
Amount used to repurchase common stock	$ 2,600
Open Market Stock Repurchase Program [Member]
Earnings Loss Per Share [Line Items]
Common stock repurchased		$ 500

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Sep. 30, 2013
Income Tax Disclosure [Abstract]
Income tax provisions associated with income from continuing operations	$ 1,466	$ 1,877
Effective tax rates	28.80%	30.60%
U.S. federal statutory tax rate	35.00%	35.00%
Unrecognized tax benefits including interest and penalties	$ 900		$ 1,000
Liability for unrecognized tax benefits to change significantly in the next 12 months	$ 0

Amounts Reclassified Out of Accumulated Other Comprehensive Income - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Accumulated Other Comprehensive Income Pre-Tax [Member] \| Maximum [Member]
Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified out of AOCI pre-tax basis	$ 0.1	$ 0.1

Operating Segments - Additional Information (Detail)	3 Months Ended
Operating Segments - Additional Information (Detail)	Dec. 31, 2013 Segment
Segment Reporting [Abstract]
Number of operating segments	2

Operating Segments - Segment Revenue, Operating Income and Depreciation and Amortization (Detail) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Segment Reporting Information [Line Items]
Total revenue	$ 13,883	$ 13,851
Operating income	4,329	4,877
Depreciation and amortization	697	722
Medical Device [Member]
Segment Reporting Information [Line Items]
Depreciation and amortization	294	317
In Vitro Diagnostics [Member]
Segment Reporting Information [Line Items]
Depreciation and amortization	214	215
Operating Segments [Member]
Segment Reporting Information [Line Items]
Operating income	5,999	6,591
Operating Segments [Member] \| Medical Device [Member]
Segment Reporting Information [Line Items]
Total revenue	10,549	10,531
Operating income	5,328	5,840
Operating Segments [Member] \| In Vitro Diagnostics [Member]
Segment Reporting Information [Line Items]
Total revenue	3,334	3,320
Operating income	671	751
Corporate [Member]
Segment Reporting Information [Line Items]
Operating income	(1,670)	(1,714)
Depreciation and amortization	$ 189	$ 190

Commitments and Contingencies - Additional Information (Detail)		3 Months Ended
	Jun. 30, 2013 USD ($)	Dec. 31, 2013 USD ($) $ / shares shares	Dec. 31, 2013 EUR (€) shares	Sep. 30, 2013 USD ($)
Commitments and Contingencies [Line Items]
Accrual in discontinued operations				$ 100,000
Unreimbursed legal expenses	$ 1,300,000
Payment received on unreimbursed legal expenses				1,000,000
Reimbursement of legal fee, Percentage		75.00%	75.00%
Additional shares of common stock to stockholders \| shares		480,059	480,059
License agreement commencement date		2006-03	2006-03
Annual minimum payments for licenses		$ 275,000	€ 200,000
Exchange rate relating to license payment \| $ / shares		$ 1.3766
Future minimum payments associated with license		$ 3,900,000
Additional maximum amount payable on successful achievement of specified milestones to sellers of PR Pharma		$ 2,500,000
Indemnification period		5 years	5 years
Accrual for contingency		$ 0
Prior to Fiscal 2013 [Member]
Commitments and Contingencies [Line Items]
Legal expenses				$ 600,000
Patents [Member]
Commitments and Contingencies [Line Items]
Patent expiry date		2027-09	2027-09