View Filing Data

Print Document View Excel Document

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Sep. 30, 2019	Nov. 30, 2019	Mar. 31, 2019
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Trading Symbol	SRDX
Security Exchange Name	NASDAQ
Entity Registrant Name	SURMODICS INC
Entity Central Index Key	0000924717
Current Fiscal Year End Date	--09-30
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Common Stock, $0.05 par value
Entity File Number	0-23837
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	41-1356149
Entity Address, Address Line One	9924 West 74th Street
Entity Address, City or Town	Eden Prairie
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55344
City Area Code	952
Local Phone Number	500-7000
Document Annual Report	true
Document Transition Report	false
Entity Common Stock, Shares Outstanding		13,549,070
Entity Public Float			$ 389

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Current Assets:
Cash and cash equivalents	$ 30,361	$ 23,318
Restricted cash		350
Available-for-sale securities	24,931	41,352
Accounts receivable, net of allowance for doubtful accounts of $200 and $147 as of September 30, 2019 and 2018, respectively	8,993	8,877
Contract assets - royalties and license fees	8,210
Inventories	4,501	4,016
Income tax receivable	558	1,152
Prepaids and other	3,866	2,462
Total Current Assets	81,420	81,527
Property and equipment, net	29,748	30,143
Deferred income taxes	6,176	6,304
Intangible assets, net	14,226	17,683
Goodwill	26,171	27,032
Other assets	2,124	1,446
Total Assets	159,865	164,135
Current Liabilities:
Accounts payable	2,085	2,546
Accrued liabilities:
Compensation	4,581	5,635
Accrued other	4,790	6,265
Deferred revenue	5,553	9,646
Contingent consideration	3,200	11,041
Total Current Liabilities	20,209	35,133
Contingent consideration, less current portion		3,425
Deferred revenue, less current portion	11,628	11,247
Other long-term liabilities	5,512	5,720
Total Liabilities	37,349	55,525
Commitments and Contingencies (Note 10)
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; 13,504,102 and 13,397,647 shares issued and outstanding, as of September 30, 2019 and 2018, respectively	675	670
Additional paid-in capital	10,740	7,607
Accumulated other comprehensive income	396	2,718
Retained earnings	110,705	97,615
Total Stockholders’ Equity	122,516	108,610
Total Liabilities and Stockholders’ Equity	$ 159,865	$ 164,135

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Statement Of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 200	$ 147
Series A preferred stock, par value	$ 0.05	$ 0.05
Series A preferred stock, shares authorized	450,000	450,000
Series A preferred stock, shares issued	0	0
Series A preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.05	$ 0.05
Common stock, shares authorized	45,000,000	45,000,000
Common stock, shares issued	13,504,102	13,397,647
Common stock, shares outstanding	13,504,102	13,397,647

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Revenue:
Total revenue	$ 100,077	$ 81,336	$ 73,112
Operating costs and expenses:
Type of Cost, Good or Service [Extensible List]	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember
Product costs	$ 13,639	$ 13,997	$ 11,422
Research and development	52,885	40,973	31,817
Selling, general and administrative	23,950	24,111	20,478
Acquired in-process research and development	890	7,888
Acquired intangible asset amortization	2,405	2,491	2,419
Contingent consideration (gain) expense	(161)	675	(127)
Total operating costs and expenses	93,608	90,135	66,009
Operating income (loss)	6,469	(8,799)	7,103
Other income (loss):
Investment income, net	1,097	851	390
Interest expense	(152)
Foreign exchange gain (loss)	134	239	(504)
Gains on strategic investments and other	10	177	44
Other income (loss)	1,089	1,267	(70)
Income (loss) before income taxes	7,558	(7,532)	7,033
Income tax benefit (provision)	34	3,075	(3,107)
Net income (loss)	$ 7,592	$ (4,457)	$ 3,926
Basic net income (loss) per share:	$ 0.57	$ (0.34)	$ 0.30
Diluted net income (loss) per share:	$ 0.55	$ (0.34)	$ 0.29
Weighted average number of shares outstanding:
Basic	13,389	13,157	13,153
Diluted	13,779	13,157	13,389
Product Sales [Member]
Revenue:
Total revenue	$ 40,219	$ 37,953	$ 32,790
Royalties and License Fees [Member]
Revenue:
Total revenue	48,458	35,424	31,787
Research, Development and Other [Member]
Revenue:
Total revenue	$ 11,400	$ 7,959	$ 8,535

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ 7,592	$ (4,457)	$ 3,926
Other comprehensive (loss) income:
Unrealized holding gains (losses) on available-for-sale securities, net of tax	64	(38)	49
Foreign currency translation adjustments	(2,386)	(661)	2,095
Other comprehensive (loss) income	(2,322)	(699)	2,144
Comprehensive income (loss)	$ 5,270	$ (5,156)	$ 6,070

- Definition

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

+ References + Details

Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income [Member]	Retained Earnings [Member]
Beginning balance at Sep. 30, 2016	$ 106,833	$ 660	$ 6,754	$ 1,273	$ 98,146
Beginning balance, shares at Sep. 30, 2016		13,208,000
Net income (loss)	3,926				3,926
Other comprehensive income (loss), net of tax	2,144			2,144
Issuance of common stock	348	$ 5	343
Issuance of common stock, shares		99,000
Common stock options exercised, net	$ 96	$ 1	95
Common stock options exercised, net, shares	6,819	7,000
Stock Repurchased During Period Value	$ (4,702)	$ (10)	(4,692)
Common stock repurchased, shares	(196,190)	(196,000)
Purchase of common stock to pay employee taxes	$ (560)	$ (1)	(559)
Purchase of common stock to pay employee taxes, shares		(23,000)
Stock-based compensation	3,472		3,472
Ending balance at Sep. 30, 2017	111,557	$ 655	5,413	3,417	102,072
Ending balance, shares at Sep. 30, 2017		13,095,000
Net income (loss)	(4,457)				(4,457)
Other comprehensive income (loss), net of tax	(699)			(699)
Issuance of common stock	340	$ 7	333
Issuance of common stock, shares		137,000
Common stock options exercised, net	$ 1,749	$ 22	1,727
Common stock options exercised, net, shares	450,495	440,000
Purchase of common stock to pay employee taxes	$ (4,687)	$ (14)	(4,673)
Purchase of common stock to pay employee taxes, shares		(274,000)
Stock-based compensation	4,807		4,807
Ending balance at Sep. 30, 2018	108,610	$ 670	7,607	2,718	97,615
Ending balance, shares at Sep. 30, 2018		13,398,000
Net impact from adoption of ASC Topic 606 (Note 2)	5,498				5,498
Net income (loss)	7,592				7,592
Other comprehensive income (loss), net of tax	(2,322)			(2,322)
Issuance of common stock	441	$ 7	434
Issuance of common stock, shares		141,000
Common stock options exercised, net	$ 282	$ 1	281
Common stock options exercised, net, shares	12,604	12,000
Purchase of common stock to pay employee taxes	$ (2,662)	$ (3)	(2,659)
Purchase of common stock to pay employee taxes, shares		(47,000)
Stock-based compensation	5,077		5,077
Ending balance at Sep. 30, 2019	$ 122,516	$ 675	$ 10,740	$ 396	$ 110,705
Ending balance, shares at Sep. 30, 2019		13,504,000

Consolidated Statements of Cash Flows - USD ($)
$ in Thousands

12 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2017

Operating Activities:

Net income (loss)

$ 7,592

$ (4,457)

$ 3,926

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

7,312

6,431

5,555

Stock-based compensation

5,077

4,807

3,472

Payment of contingent consideration obligations in excess of acquisition-date value

(2,041)

Contingent consideration (gain) expense

(161)

675

(127)

Acquired in-process research and development

890

7,888

Deferred taxes

^[1]

(1,088)

(2,277)

1,000

Gains on strategic investments

(7)

(177)

(43)

Provision for bad debts

160

208

Impairment losses on intangible assets

259

427

Property and equipment disposal loss

(10)

Unrealized foreign exchange (gain) loss

(148)

474

Other, net

Change in operating assets and liabilities

Accounts receivable and contract asset

^[1]

(1,630)

(1,773)

(528)

Inventories

(543)

(513)

Prepaids and other

(2,131)

(1,584)

(599)

Accounts payable

(765)

155

1,101

Accrued liabilities

(2,187)

5,086

(733)

Deferred revenue

^[1]

(3,512)

20,651

(124)

Income taxes

^[1]

822

(842)

(59)

Net cash provided by operating activities

8,038

34,052

14,053

Investing Activities:

Purchases of property and equipment

(5,998)

(9,092)

(6,432)

Cash proceeds from sale of property and equipment

Purchases of available-for-sale securities

(44,973)

(81,536)

(73,671)

Sales and maturities of available-for-sale securities

61,458

71,951

63,871

Acquisition of in-process research and development (Note 10)

(750)

(5,000)

Cash received from strategic investments

177

Net cash used in investing activities

9,754

(23,500)

(16,189)

Financing Activities:

Issuance of common stock

723

2,089

444

Payments for taxes related to net share settlement of equity awards

(2,688)

(4,557)

(2,156)

Payment of contingent consideration

(9,064)

(925)

Payment of deferred financing costs

(96)

Repurchase of common stock

(4,702)

Net cash used in financing activities

(11,029)

(3,393)

(6,510)

Effect of exchange rate changes on cash

(70)

(25)

193

Net change in cash and cash equivalents

6,693

7,134

(8,453)

Cash and Cash Equivalents:

Beginning of year

23,668

16,534

24,987

End of year

30,361

23,668

16,534

Supplemental Information:

Cash paid for income taxes

193

914

2,114

Noncash financing and investing activities:

Acquisition of property and equipment on account, net of refundable credits in other current assets

202

632

$ 109

Acquisition of property and equipment in long-term deferred rent

1,200

Acquisition of in process research and development in other long-term liabilities

140

2,888

Accrual of employee taxes on common stock exercises

$ 104

$ 130

[1]	Amounts presented are net of impact from adoption of ASC Topic 606.

Schedule of Valuation and Qualifying Accounts

12 Months Ended

Sep. 30, 2019

Valuation And Qualifying Accounts [Abstract]

Schedule of Valuation and Qualifying Accounts

Surmodics, Inc.

Valuation and Qualifying Accounts

(In thousands)

Description (1)	Balance at Beginning of Period		Additions Charged (Credited) to Expenses		Deductions From Reserves			Balance at End of Period
Year Ended September 30, 2017:
Allowance for doubtful accounts	$	19	$	222	$	11	(a)	$	230
Year Ended September 30, 2018:
Allowance for doubtful accounts	$	230	$	64	$	147	(a)	$	147
Year Ended September 30, 2019:
Allowance for doubtful accounts	$	147	$	188	$	135	(a)	$	200

(1)	Uncollectible accounts written off and adjustments to the allowance.

Description

12 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Description

1. Description

Surmodics, Inc. and subsidiaries (“Surmodics” or the “Company”) is a leading provider of medical device and in vitro diagnostic technologies to the healthcare industry. The Company derives its revenue from three primary sources: (1) royalties and license fees from licensing our proprietary surface modification and device drug-delivery technologies to customers; (2) product revenue generated from reagent chemical sales to licensees; stabilization chemical, antigen, substrate and surface coating chemical sales to the diagnostic and biomedical research markets as well as sales of medical devices (such as balloons and catheters) and related products to original equipment manufacturer (“OEM”) suppliers and distributors; and (3) research and commercial development fees generated on customer projects.

Basis of Presentation

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

Summary of Significant Accounting Policies and Select Balance Sheet Information

12 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies and Select Balance Sheet Information

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

Cash, Restricted Cash and Cash Equivalents

Cash, restricted cash and cash equivalents consist of financial instruments with maturities of three months or less at the Company’s acquisition date of the security and are stated at cost which approximates fair value and may include money market instruments, certificates of deposit, repurchase agreements and commercial paper instruments. Restricted cash represents cash balances restricted pursuant to the terms of a real estate lease.

Investments

Investments consisted principally of commercial paper and corporate bond securities and are classified as available-for-sale as of September 30, 2019 and 2018. Available-for-sale securities are reported at fair value with unrealized gains and losses, net of tax, excluded from the consolidated statements of operations and reported in the consolidated statements of comprehensive income (loss) as well as a separate component of stockholders’ equity in the 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 (loss) with a corresponding adjustment to other income (loss). This adjustment would result in a new cost basis for the investment. No such adjustments occurred during the years ended September 30, 2019, 2018 or 2017. Interest earned on debt securities, including amortization of premiums and accretion of discounts, is included in other income (loss). Realized gains and losses from the sales of available-for-sale debt securities, which are included in other income (loss), 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 September 30, 2019 and 2018 were as follows (in thousands):

	September 30, 2019
(Dollars in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Commercial paper and corporate bonds	$	24,918	$	13	$	—	$	24,931
Total	$	24,918	$	13	$	—	$	24,931

	September 30, 2018
(Dollars in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Commercial paper and corporate bonds	$	41,403	$	—	$	(51	)	$	41,352
Total	$	41,403	$	—	$	(51	)	$	41,352

There were no held-to-maturity debt securities as of September 30, 2019 or 2018. There were no realized gains or losses on sales of available-for-sale securities for the years ended September 30, 2019, 2018 or 2017.

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 as of September 30 (in thousands):

	2019		2018
Raw materials	$	2,034	$	1,890
Work in-process		892		780
Finished products		1,575		1,346
Total	$	4,501	$	4,016

Property and Equipment

Property and equipment are stated at cost, less any impairment, and are depreciated using the straight-line method over the estimated useful lives of the assets. The Company recorded depreciation expense of $4.7 million, $3.7 million and $3.0 million for the years ended September 30, 2019, 2018 or 2017, respectively.

The September 30, 2019 and 2018 balances in construction-in-progress include the cost of equipment and building improvements not yet placed in service in the Company’s Ballinasloe, Ireland and Eden Prairie, Minnesota facilities. As assets are placed in service, construction-in-progress is transferred to the specific property and equipment categories and depreciated over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the term of the lease or the estimated useful life of the asset. Expenditures for maintenance and repairs and minor renewals and betterments that do not extend or improve the life of the respective assets are expensed as incurred.

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

	Useful Life	2019			2018
	(In years)
Land	N/A	$	4,415		$	4,420
Laboratory fixtures and equipment	3 to 10		25,467			22,024
Buildings and improvements	3 to 20		24,513			21,717
Leasehold improvements	10		4,836			4,836
Office furniture and equipment	3 to 10		6,476			5,824
Construction-in-progress			2,030			4,834
Less accumulated depreciation			(37,989	)		(33,512	)
Property and equipment, net		$	29,748		$	30,143

Other Assets

Other assets consist principally of the following as of September 30 (in thousands):

	2019		2018
ViaCyte, Inc.	$	479	$	479
Other noncurrent assets		1,645		967
Other assets, net	$	2,124	$	1,446

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 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 fiscal 2013, the Company recorded an additional other-than-temporary impairment loss on this investment totaling $0.1 million based on a financing round and market valuations. The $0.5 million balance of the investment, 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 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 carrying value of cost method investments is not adjusted if there are no identified events or changes in circumstances that may have a material adverse effect on the fair value of the investment.

In the years ended September 30, 2019, 2018 or 2017, the Company recognized revenue of less than $0.1 million in each period from activity with companies in which it had a strategic investment. Other noncurrent assets include prepaid expenses related to our ongoing clinical trials and a receivable related to refundable Irish research and development tax credits.

Intangible Assets

Intangible assets consist principally of acquired patents and technology, customer lists and relationships, licenses and trademarks. The Company recorded amortization expense of $2.6 million, $2.7 million and $2.6 million for the years ended September 30, 2019, 2018 or 2017, respectively.

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

	2019
	Weighted Average Original Life (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Definite-lived intangible assets:
Customer lists and relationships		8.9	$	17,374	$	(10,661	)	$	6,713
Developed technology		11.5		9,490		(3,196	)		6,294
Non-compete		5.0		230		(196	)		34
Patents and other		16.5		2,321		(1,716	)		605
Subtotal				29,415		(15,769	)		13,646
Unamortized intangible assets:
Trademarks and trade names				580		—			580
Total			$	29,995	$	(15,769	)	$	14,226

	2018
	Weighted Average Original Life (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Definite-lived intangible assets:
Customer lists and relationships		8.9	$	18,086	$	(9,377	)	$	8,709
Developed technology		11.5		9,656		(2,361	)		7,295
Non-compete		5.0		230		(150	)		80
Patents and other		16.5		2,321		(1,569	)		752
Subtotal				30,293		(13,457	)		16,836
Unamortized intangible assets:
In-process research and development				267		—			267
Trademarks and trade names				580		—			580
Total			$	31,140	$	(13,457	)	$	17,683

Based on the intangible assets in service as of September 30, 2019, estimated amortization expense for each of the next five fiscal years is as follows (in thousands):

2020	$	2,414
2021		2,275
2022		2,235
2023		1,629
2024		1,584

Future amortization amounts presented above are estimates. Actual future amortization expense may be different as a result of future acquisitions, impairments, changes in amortization periods, foreign currency exchange rates or other factors.

The Company defines IPR&D as the value of technology acquired for which the related projects have substance and are incomplete. IPR&D acquired in a business acquisition is recognized at fair value and is capitalized as an indefinite-lived intangible asset until completion or abandonment of the IPR&D project. Upon completion of the development project (generally when regulatory approval to market the product is obtained), an impairment assessment is performed prior to amortizing the asset over its estimated useful life. If the IPR&D projects were abandoned, the related IPR&D assets would be written off. The Company assesses indefinite-lived assets for impairment annually in the fourth quarter and whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. Similar to the goodwill impairment test, the indefinite-lived assets impairment test requires the Company to make several estimates about fair value, most of which are based on projected future cash flows.

The Company performs its annual impairment analysis as of August 31 each fiscal year. After completing the fiscal 2019 and 2017 impairment analyses, the fair value of certain IPR&D and trade name assets were deemed to be less than their carrying value, due to decreases in estimated future revenue associated with the assets. Accordingly, impairment losses on indefinite-lived intangible assets totaling $0.3 million were recorded in research and development in the consolidated statements of operations for both fiscal 2019 and 2017 and impairment losses totaling $0.1 million were recorded in and selling, general and administrative expenses in fiscal 2017. No impairment charges were recorded in fiscal 2018 as there were no indicators of impairment associated with the indefinite-lived intangible assets. No other impairment losses were identified during the annual impairment analyses in fiscal 2019 or 2017. The valuation methodology for determining the decline in value of the indefinite-lived intangible assets was based on inputs that require management judgment and are Level 3 inputs, as discussed in Note 5 to the consolidated financial statements.

Goodwill

Goodwill represents the excess of the purchase price of an acquired business over the fair value assigned to the assets purchased and liabilities assumed. 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 it is more likely than not that the fair value of a reporting unit is less than its carrying amount.

The Company’s reporting units are the In Vitro Diagnostics and Medical Device operating segments. Inherent in the determination of fair value of the reporting units are certain estimates and judgments, including the interpretation of current economic indicators and market valuations as well as the Company’s strategic plans with regard to its operations.

The Company performs its annual assessment of goodwill for impairment as of August 31 each fiscal year and no goodwill impairment charges were recorded in fiscal 2019, 2018 or 2017 as there were no indicators of impairment associated with either of the reporting units. The impairment assessment is reliant on forecasted cash flows, as well as the selected discount rate when a quantitative assessment is necessary, which are inherently subjective and require significant management estimates. Differences in the reporting units’ actual future operating results as compared with these forecasted estimates could materially affect the estimation of the fair value of the reporting units.

Goodwill as of September 30, 2019 and 2018 totaled $26.2 million and $27.0 million, respectively. Goodwill related to the In Vitro Diagnostics reporting unit represents the gross value from the acquisition of BioFX Laboratories, Inc. in 2007. Goodwill related to the Medical Device reporting unit represents the gross value from the acquisitions of Creagh Medical, Ltd. and NorMedix, Inc. which were completed in fiscal 2016. The Medical Device reporting segment goodwill includes $13.4 million of goodwill denominated in Euros and subject to revaluation due to fluctuations in exchange rates.

The change in the carrying amount of goodwill by segment for the years ended September 30, 2019 and 2018 was as follows (in thousands):

(Dollars in thousands)	In Vitro Diagnostics		Medical Device			Total
Balance as of September 30, 2017	$	8,010	$	19,272		$	27,282
Foreign currency translation adjustment		—		(250	)		(250	)
Balance as of September 30, 2018		8,010		19,022			27,032
Foreign currency translation adjustment		—		(861	)		(861	)
Balance as of September 30, 2019	$	8,010	$	18,161		$	26,171

Valuation of Long-Lived Assets

Accounting guidance requires the Company to evaluate periodically whether events and circumstances have occurred that may affect the estimated useful life or the recoverability of the remaining balance of long-lived assets, such as property and equipment and intangibles with finite lives. If such events or circumstances were to indicate that the carrying amount of these assets may not be recoverable, the Company would estimate the future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) were less than the carrying amount of the assets, the Company would recognize an impairment charge to reduce such assets to their fair value. In fiscal 2019, 2018 and 2017, there were no impairment charges relating to the Company’s long-lived assets as there were no events or circumstances that occurred that affected the recoverability of such assets.

Accrued Liabilities

Other accrued liabilities consisted of the following as of September 30 (in thousands):

	2019		2018
Accrued professional fees	$	434	$	311
Accrued clinical study expense		2,163		2,839
Accrued purchases		679		533
Acquisition of in process research and development		989		—
Deferred rent		130		121
Other		395		262
Customer claim		—		1,000
Construction in progress		—		1,199
Total	$	4,790	$	6,265

Revenue Recognition

Effective October 1, 2018, the Company adopted ASC Topic 606 using the modified retrospective adoption method. Based on the requirements of ASC Topic 606, revenue is recognized when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to receive in exchange for those goods or services. The Company primarily sells or licenses its products, technologies and services to other medical device and diagnostics companies.

Taxes collected from customers and remitted to governmental authorities that are imposed on, and concurrent with, a specific revenue producing transaction are excluded from revenue. For contracts that have an original duration of one year or less, the Company uses the practical expedient applicable to such contracts and does not adjust the transaction price for the time value of money.

Performance Obligations

The Company derives its revenue from three primary sources: (1) product revenues from the sale of reagent chemicals to licensees, the sale of stabilization products, antigens, substrates and surface coatings to the diagnostic and biomedical research markets as well as the sale of medical devices and related products (such as balloons and catheters) to original equipment manufacturer (OEM) suppliers and distributors; (2) royalties and license fees from licensing our proprietary surface modification and device drug delivery technologies to customers; and (3) research and commercial development fees generated on customer projects.

The Company recognizes revenue when control is transferred to the customer. The transfer of control varies by revenue classification and is described below.

Product sales – Revenue from product sales is recognized at the point in time control of the products is transferred, generally upon shipment based upon the standard contract terms. Shipping and handling activities are considered to be fulfillment activities rather than promised services and are not, therefore, considered to be separate performance obligations. The Company’s sales terms provide no right of return outside of a standard warranty policy and returns are generally not significant. Payment terms for product sales are generally set at 30-45 days after the consideration becomes due and payable.

Royalties – Royalty revenue consists of sales-based and recurring minimum royalties earned under licenses of our surface modification technologies. Performance obligations under these licenses, which consist of the right to use the Company’s proprietary technology, are satisfied at a point in time corresponding with delivery of the underlying technology rights to the customer, which is generally upon transfer of the licensed technology to the customer. Sales-based royalty revenue represents variable consideration under the license agreements and is recognized in the period a customer sells products incorporating the Company’s licensed technologies. The Company estimates sales-based royalty revenue earned but unpaid at each reporting period using the expected value method based on historical sales information, adjusted for known changes such as product launches and patent expirations. The Company's license arrangements also often provide for recurring fees (minimum royalties) which the Company recognizes at the later of the satisfaction of the underlying performance obligation or upon renewal of the contract, which is generally done on a quarterly basis. Sales-based and minimum royalties are generally due within 45 days of the end of each quarter.

License fees – For distinct license performance obligations, upfront license fees are recognized when the Company satisfies the underlying performance obligation. This generally occurs upon transfer of the right to use the Company’s licensed technology to the customer, with the exception of the license of the Company’s SurVeil™ drug-coated balloon (the “SurVeil DCB”) disclosed below. Certain license arrangements include contingent milestone payments, which are due following achievement by our customers of specified sales or regulatory milestones. Contingent milestone payment terms vary by contract. The Company has generally fulfilled its performance obligation prior to achievement of these milestones. However, because of the uncertainty of the milestone achievement, and/or the dependence on sales of our customers, variable consideration for contingent milestones is fully constrained and excluded from the contract price until the milestone is achieved by our customer, to the extent collectability is reasonably certain.

The Company has a collaborative arrangement contract with Abbott Vascular, Inc. (“Abbott”) disclosed in Note 4 (the “Abbott Agreement”), pursuant to which the Company received an upfront payment of $25 million in fiscal 2018 and a milestone payment after completion of enrollment in the TRANSCEND clinical trial of $10 million in fiscal 2019. To the extent the Company achieves certain agreed-upon clinical and regulatory milestones, the Company may receive up to $57 million of additional contingent milestone payments. The performance obligation identified in this arrangement includes delivery of our licensed technology and completion of research and development activities, primarily clinical trial activities (together, “R&D and Clinical Activities”). These promises are not distinct performance obligations because the product necessary for completion of the R&D and Clinical Activities is currently only able to be manufactured by the Company due to the exclusive proprietary know-how and certain regulatory requirements associated with the manufacture of the product. The customer (Abbott) simultaneously receives and consumes the benefits of the R&D and Clinical Activities as study data are generated to support regulatory approval submissions. Control is effectively transferred over time as we complete the TRANSCEND clinical study of our SurVeil DCB and related regulatory activities. Revenue related to this contract is recognized using the cost-to-cost method which measures progress based on costs incurred to date relative to the expected total cost of the services, as the Company believes this represents a faithful depiction of the satisfaction of its performance obligation. Use of the cost-to-cost method requires significant estimates including the total cost of the TRANSCEND study, which is expected to be completed over the next six years. Revenue is recorded based on the cost-to-cost completion estimate relative to the transaction price, which is equal to the total upfront fee plus the expected value of the clinical and regulatory milestones. As of September 30, 2019, consideration from the clinical and regulatory milestones, other than the $10 million full-enrollment milestone discussed above, has been fully constrained and excluded from the contract price, due to the high level of uncertainty as to the achievement of the underlying regulatory approval(s) and/or clinical milestones. Significant judgment is used to estimate total revenue and cost at completion for this contract.

Research and development – The Company performs third-party research and development activities, which are typically charged to customers on a time-and-materials basis. Generally, revenue for research and development is recorded over time as the services are provided to the customer in the amount to which the Company has the right to invoice. These services are generally charged to the customer as they are provided. Payment terms for R&D services are generally set at 30-45 days after the consideration becomes due and payable.

If a contract contains more than one distinct performance obligation, the transaction price is allocated to each performance obligation based on relative standalone selling price.

Contract Assets, Deferred Revenue and Remaining Performance Obligations

Contract assets are generally short in duration given the nature of products produced and services provided by the Company. Contract assets consist of sales-based and minimum royalty revenue earned for which unconditional right to payment does not exist as of the balance sheet date. These assets are comprised of estimated sales-based royalties earned, but not yet reported by the Company’s customers, minimum royalties on non-cancellable contracts, and contingent milestones earned but not yet billable based on the terms of the contract. The increase in contract assets from October 1, 2018 to September 30, 2019 resulted primarily from changes in sales-based and minimum royalties earned but not collected at each balance sheet date.

The Company records a contract liability, or deferred revenue, when there is an obligation to provide a product or service to the customer and payment is received or due in advance of performance, or when payment is received for a period outside the contract term. The Company’s deferred revenue at September 30, 2019 and 2018 is primarily related to the upfront payment received pursuant to the Abbott Agreement (Note 4).

Remaining performance obligations include deferred revenue and amounts the Company expects to receive for goods and services that have not yet been delivered or provided under existing, noncancellable contracts. For contracts that have an original duration of one year or less, the Company has elected the practical expedient applicable to such contracts and does not disclose the transaction price for remaining performance obligations at the end of each reporting period and when the Company expects to recognize this revenue. As of September 30, 2019, the estimated revenue expected to be recognized in future periods related to performance obligations that are unsatisfied for executed contracts with an original duration of one year or more was approximately $17.1 million. This revenue is entirely related to the R&D and Clinical Activities performance obligation in the Abbott Agreement from the upfront payment and milestone payments and does not include revenue from potential contingent milestone payments that may be received in the future. The Company expects to recognize the remaining revenue from this performance obligation over the next six years as the services, which are primarily comprised of the TRANSCEND clinical study activities, are completed. We expect the contract to be approximately 75% completed by the end of fiscal 2021, with the remaining 25% amortized over the final four years of the TRANSCEND trial follow-up and clinical reporting period.

Concentrations

The Company has licenses and supply agreements with a diverse base of customers and certain customers have multiple products using the Company’s technology. Abbott and its affiliates and Medtronic plc (“Medtronic”) are our largest customers, comprising 19% and 14%, respectively, of our consolidated revenue for fiscal 2019. These same customers each comprised 11% and 16%, respectively of our consolidated revenue for fiscal 2018. In fiscal 2017, revenue from Medtronic comprised 18% of our consolidated revenue. Abbott has several separately licensed products, including the SurVeil license, which generate royalty and license fee revenue for Surmodics. Revenue from the SurVeil license represented 13%, 5% and 0% of total revenue for fiscal 2019, 2018 and 2017, respectively. Medtronic has several separately licensed products that generate royalty revenue for Surmodics, none of which represented more than 3% of our total revenue. No other individual customer constitutes more than 10% of the Company’s total revenue. The loss of Abbott, Medtronic or any of our largest customers, or reductions in business from them, could have a material adverse effect on the Company’s business, financial condition, results of operations, and cash flows from operations.

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

The Company believes that the credit risk related to marketable securities is limited due to the adherence to an investment policy and that credit risk related to accounts receivable is limited due to a large customer base.

Income Taxes

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

Research and Development

Research and development (“R&D”) costs are expensed as incurred. Some R&D costs are related to customer contracts, and the related revenue is recognized as described in “Revenue Recognition” above. Costs associated with customer-related R&D include specific project direct labor and material expenses as well as an allocation of overhead costs based on direct labor dollars. Costs associated with research and development of the Company’s own products include design, engineering and testing activities necessary to develop a new product or improve the manufacturing process of an existing product. Internal research and development costs also include any necessary pre-commercialization regulatory and clinical trial costs.

Clinical trial costs. The Company sponsors clinical trials intended to obtain the necessary clinical data required to obtain approval from various regulatory agencies to market medical devices developed by the Company. Costs associated with clinical trials include trial design and management expenses, clinical site reimbursements and third party fees, among other things. The Company’s clinical trials are administered by third-party clinical research organizations (“CROs”). These CROs generally bill monthly for certain services performed as well as upon achievement of certain milestones. The Company monitors patient enrollment, the progress of clinical studies and related activities through internal reviews of data reported to the Company by the CROs and correspondence with the CROs. The Company periodically evaluates its estimates to determine if adjustments are necessary or appropriate based on information it receives. These estimates often require significant judgement on the part of the Company’s management.

Government funding. The Company is eligible to receive reimbursement for certain qualifying R&D expenditures under a grant from the Industrial Development Agency of Ireland (“IDA”). Reimbursements are recognized as a reduction of R&D expense when there is reasonable assurance that the funding will be received and conditions associated with the funding are met. The Company recorded reimbursements from IDA grants of $0.7 million, $0.8 million and $0.8 million during the years ended September 30, 2019, 2018 and 2017 as a reduction of R&D expense.

Use of Estimates

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

Income Per Share Data

Basic income (loss) per common share is calculated based on the weighted average number of common shares outstanding during the period. Diluted income 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 potentially dilutive common shares are those that result from dilutive common stock options and non-vested stock relating to restricted stock awards, restricted stock units and performance shares. However, these items have been excluded from the calculation of diluted net loss per share for the year ended September 30, 2018, as their effect was antidilutive as a result of the net loss incurred for that period. Therefore, diluted weighted average number of shares outstanding and diluted net loss per share were the same as basic weighted average number of shares outstanding and net loss per share for the year ended September 30, 2018.

The following table sets forth the denominator for the computation of basic and diluted income per share for each of the years ended September 30 (in thousands):

	2019		2018			2017
Net income (loss) available to common shareholders	$	7,592	$	(4,457	)	$	3,926

Basic weighted average shares outstanding		13,389		13,157			13,153
Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units and performance shares		390		—			236
Diluted weighted average shares outstanding		13,779		13,157			13,389

The calculation of weighted average diluted shares outstanding excludes outstanding common stock options associated with the right to purchase 0.2 million, $1.0 million and 0.2 million shares for fiscal 2019, 2018 and 2017, respectively, as their inclusion would have had an antidilutive effect on diluted income per share for those fiscal years.

Currency Translation

The Company’s reporting currency is the U.S. Dollar. Assets and liabilities of non-U.S. dollar functional currency subsidiaries are translated into U.S. dollars at the period-end exchange rates, and revenue and expenses are translated at the average quarterly exchange rates during the period. The net effect of these translation adjustments on the consolidated financial statements is recorded as a foreign currency translation adjustment, a component of accumulated other comprehensive income on the consolidated balance sheets. Realized foreign currency transaction gains and losses are included in other, income (loss) net in the consolidated statements of operations.

New Accounting Pronouncements

Accounting Standards Implemented

In May 2014, the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) issued Update No. 2014-09, Revenue from Contracts with Customers (“ASC Topic 606”). The core principal of ASC Topic 606 is to recognize revenue in a manner that depicts the transfer of goods or services to customers in amounts that reflect the consideration an entity expects to be entitled to in exchange for those goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, as well as significant judgements and changes in judgements. The Company adopted ASC Topic 606 in the first quarter of fiscal year 2019 using the modified retrospective method and applied the new revenue standard to all new customer contracts initiated on or after the effective date and contracts which had remaining performance obligations as of the effective date. The adoption of ASC Topic 606 resulted in an acceleration of minimum license fees and sales-based royalty revenue earned under the Company’s hydrophilic coating technology license agreements by approximately one quarter. Prior to the adoption of ASC Topic 606, sales-based royalties were recognized in the period the Company’s customers reported the underlying sales, which is generally one quarter after the sales occur. Additionally, minimum royalties were recognized in the period they were contractually owed to the Company. Upon adoption of ASC Topic 606, sales-based royalties are recognized in the period the underlying customer sale occurs, while the minimum royalties are recognized at each renewal of the license contract, which generally occurs on the last day of the quarter for minimum royalties contractually due in the following quarter.

The adoption of ASC Topic 606 resulted in cumulative-effect adjustments to opening retained earnings, contract assets, deferred tax assets and income tax receivable. The impact of the adoption of ASC Topic 606 on the opening consolidated balance sheet as of October 1, 2018, as compared with the consolidated balance sheet previously reported as of September 30, 2018, was as follows:

(Dollars in thousands)	September 30, 2018, As Reported		Adjustments for Adoption of Topic 606			October 1, 2018 Opening Balance
Assets
Contract assets - royalties and license fees	$	—	$	6,904		$	6,904
Deferred income taxes		6,304		(1,215	)		5,089
Income tax receivable		1,152		(390	)		762

Liabilities and Stockholders' Equity
Deferred revenue, current portion		9,646		(18	)		9,628
Deferred revenue, less current portion		11,247		(181	)		11,066
Retained earnings		97,615		5,498			103,113

The impact of adoption of ASC Topic 606 to the Company’s consolidated statements of operations for the year ended September 30, 2019 was an increase of royalty and license fee revenue of $1.3 million, as well as reduced income tax benefit of $0.3 million.

Accounting Standards to be Adopted

In February 2016, the FASB issued Accounting Standards Update ASU 2016-02, Leases (ASC Topic 842). The new guidance primarily affects lessee accounting, while accounting by lessors will not be significantly impacted by the update. The update maintains two classifications of leases: finance leases, which replace capital leases, and operating leases. Lessees will need to recognize a right-of-use asset and a lease liability on the statement of financial position for those leases previously classified as operating leases under the old guidance. The liability will be equal to the present value of remaining contractual lease payments. The asset will be based on the liability, subject to adjustment, such as for direct costs. The accounting standard will be effective for the Company beginning the first quarter of fiscal year 2020 (October 1, 2019) and will be applied using a modified retrospective approach. The Company is currently evaluating the impact that the adoption of this standard will have on the Company’s results of operations, cash flows and financial position and expects the impact to be material due to the right of use assets and lease obligations that will be recorded as a result of the adoption, as well as several additional required financial statement footnote disclosures. The Company estimates that a right of use asset totaling approximately $1.7 million and a lease obligation liability totaling approximately $2.9 million will be recorded as a result of the adoption of the new lease accounting standard. Additionally, the deferred rent liability totaling approximately $1.2 million that is currently included in other current and long-term liabilities will be eliminated as it will reduce the amount of the right-of-use asset recorded upon adoption. The Company expects the adoption of the lease standard will not have a significant impact on stockholders’ equity, the consolidated statements of operations, or the consolidated statements of cash flows.

In June 2016, the FASB issued ASU No 2016-13, Financial Instruments – Credit Losses (ASC Topic 326), Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or a group of financial assets) measured at an amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The accounting standard will be effective for the Company beginning in the first quarter of fiscal 2021 (October 1, 2020). The Company is currently evaluating the impact that the adoption of this standard will have on the Company’s results of operations, cash flows and financial position.

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.

Revenue

12 Months Ended

Sep. 30, 2019

Revenue From Contract With Customer [Abstract]

Revenue

3. Revenue

The following table presents our revenues disaggregated by product classification and by operating segment (in thousands):

	2019		2018		2017
Medical Device
Product sales	$	18,617	$	17,200	$	13,735
Royalties		34,781		30,606		30,264
Research, development and other		11,277		7,889		8,528
License fees		13,678		4,818		1,456
Total Revenue - Medical Device		78,353		60,513		53,983
IVD
Product sales		21,390		20,789		19,055
Other		334		34		74
Total Revenue - IVD		21,724		20,823		19,129
Total Revenue	$	100,077	$	81,336	$	73,112

Collaborative Arrangement

12 Months Ended

Sep. 30, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Collaborative Arrangement

4. Collaborative Arrangement

On February 26, 2018, the Company entered into an agreement with Abbott whereby Abbott will have exclusive worldwide commercialization rights for Surmodics' SurVeil DCB to treat the superficial femoral artery, which is currently being evaluated in a U.S. pivotal clinical trial. Separately, Abbott also received options to negotiate agreements for Surmodics' below-the-knee and arteriovenous (AV) fistula DCB products, which are currently in pre-clinical development. Surmodics is responsible for conducting all necessary clinical trials and other activities required to achieve U.S. and European Union regulatory clearances for the SurVeil DCB, including completion of the ongoing TRANSCEND clinical trial. Abbott and Surmodics will participate on a joint development committee charged with providing guidance on the Company’s clinical and regulatory activities with regard to the SurVeil DCB.

The Company has received a $25 million upfront fee as well as a $10 million milestone payment. The Company may receive up to $57 million of additional payments upon achievement of various clinical and regulatory milestones. Revenue from the upfront fee and contingent clinical and regulatory milestone payments, once the underlying contingencies are achieved, is recognized within royalties and license fees in the consolidated statements of operations as the clinical and regulatory activities are performed on a proportional performance basis. Performance is measured based on actual costs incurred relative to the expected total cost of the underlying activities, most notably the completion of the TRANSCEND clinical trial. A significant component of the cost of this trial is the cost of the Company’s outsourced clinical trial clinical research organization (“CRO”) consultants, which are estimated based on executed statements of work, project budgets, and patient enrollment timing, among other things. A significant change to the Company’s estimate of the costs to complete the TRANSCEND clinical trial could have a material effect on the Company’s results of operations. The total expected cost of the trial is a significant management estimate and is reviewed and assessed each reporting period.

For the years ended September 30, 2019 and 2018, the Company recognized revenue totaling $13.5 million and $4.4 million, respectively, from the Abbott arrangement. In fiscal 2019, the Company received a $10 million milestone payment as a result of completing enrollment in the TRANSCEND clinical trial. As of September 30, 2019, the Company had received $35 million under this contract. Revenue recognized from this milestone totaled $5.1 million in fiscal 2019, $1.7 million of which related to the proportional performance completed prior to fiscal 2019. The remaining, unrecognized portion of the $35 million is included in deferred revenue in current and long-term deferred revenue as of September 30, 2019, totaling $5.5 million and $11.6 million, respectively. Upon receipt of regulatory approval for the SurVeil DCB, Abbott will have the right to purchase commercial units from the Company and Surmodics will realize revenue from product sales to Abbott at an agreed-upon transfer price, as well as a share of net profits resulting from third-party product sales by Abbott.

Fair Value Measurements

12 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

5. Fair Value Measurements

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

Fair Value Hierarchy

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

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

The Company did not have any Level 1 assets as of September 30, 2019 or 2018.

Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.

The Company’s Level 2 assets as of September 30, 2019 and 2018 consisted of money market funds, commercial paper instruments and corporate bond securities. Fair market values for these assets are based on quoted vendor prices and broker pricing where all significant inputs are observable. To ensure the accuracy of quoted vendor prices and broker pricing, the Company performs regular reviews of investment returns to industry benchmarks and sample tests of individual securities to validate quoted vendor prices with other available market data.

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.

Included in Level 3 liabilities as of September 30, 2019 is a $3.2 million contingent consideration liability, all of which is current. Included in Level 3 liabilities as of September 30, 2018 is a $14.5 million contingent consideration liability, of which $3.4 million is noncurrent. The current contingent consideration liabilities represents the liabilities for revenue and strategic milestones achieved during a contingency periods which ended September 30, 2019 and 2018, respectively. The non-current contingent consideration liabilities are subject to achievement of revenue and value-creating milestones in the period ending September 30, 2019. There were no Level 3 assets as of September 30, 2019 and 2018.

In valuing assets and liabilities, the Company is required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The Company did not significantly change its valuation techniques from prior periods. The carrying value of cash, accounts receivable, accounts payable and accrued liabilities approximates fair value as of September 30, 2019 and 2018 due to the short maturity nature of these instruments.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

In instances where the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability.

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 (in thousands):

	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Total Fair Value as of September 30, 2019
Assets
Cash equivalents	$	—	$	24,375	$	—		$	24,375
Available-for-sale securities		—		24,931		—		$	24,931
Total assets	$	—	$	49,306	$	—		$	49,306

Liabilities
Contingent consideration	$	—	$	—	$	(3,200	)	$	(3,200	)
Total liabilities	$	—	$	—	$	(3,200	)	$	(3,200	)

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2018 (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, 2018
Assets
Cash equivalents	$	—	$	13,999	$	—		$	13,999
Available-for-sale securities		—		41,352		—		$	41,352
Total assets	$	—	$	55,351	$	—		$	55,351

Liabilities
Contingent consideration	$	—	$	—	$	(14,466	)	$	(14,466	)
Total liabilities	$	—	$	—	$	(14,466	)	$	(14,466	)

The following table summarizes the changes in the contingent consideration liability for the years ended September 30, 2019 and 2018:

(Dollars in thousands)
Contingent consideration liability at September 30, 2017	$	14,864
Additions		—
Fair value adjustments		288
Settlements		(925	)
Interest accretion		387
Foreign currency translation		(148	)
Contingent consideration liability at September 30, 2018		14,466
Additions		—
Fair value adjustments		(415	)
Settlements		(10,979	)
Interest accretion		254
Foreign currency translation		(126	)
Contingent consideration liability at September 30, 2019	$	3,200

There were no transfers of assets or liabilities to or from amounts measured using Level 3 fair value measurements during fiscal 2019 or 2018.

Valuation Techniques

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

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

Available-for-sale securities — These assets are classified as Level 2 and include commercial paper instruments and corporate bonds. These securities are valued based on quoted vendor prices in active markets underlying the securities.

Contingent consideration — The contingent consideration liabilities were determined based on discounted cash flow analyses that included revenue estimates, probability of strategic milestone achievement and a discount rate, which are considered significant unobservable inputs as of the acquisition dates and September 30, 2019 and 2018. The contingency period for the NorMedix acquisition ended September 30, 2019. Based on the milestones achieved during the contingency period, the Company expects to pay the NorMedix shareholders $3.2 million in December 2019, based on the achievement of milestones throughout the contingency period. The contingency period for the Creagh Medical contingent consideration obligation ended September 30, 2018. Based on the milestones achieved during the contingency period, the Company paid Creagh Medical shareholders $11.0 million in December 2018. The Creagh Medical obligation was discounted using the Company’s annualized cost of debt for the three-month period between September 30, 2019 and the expected settlement date, or 2.3%. Probability of completion for the redefined milestones was reflected in the estimated fair value of the NorMedix contingent consideration obligation as of September 30, 2018. For the revenue-based milestones, the Company discounted forecasted revenue by 20.5%, which represents the Company’s weighted average cost of capital for the transaction, adjusted for the short-term nature of the cash flows. The resulting present value of revenue was used as an input into an option pricing approach, which also considered the Company’s risk of non-payment of the revenue-based milestones. Outstanding strategic milestones were projected to have a 5% to 95% probability of achievement as of September 30, 2018, and related payments were discounted using the Company’s estimated cost of debt for the remaining contingency period, or 6.0%.

The €9.6 million (approximately $11.0 million as of September 30, 2018) contingent consideration related to the Creagh Medical acquisition was denominated in Euros and was not hedged. The Company recorded foreign currency gains (losses) of $0.1 million, $0.1 million and ($0.5) million, respectively, in the years ended September 30, 2019, 2018 and 2017, respectively, related to this contingent consideration obligation as it was marked to year-end exchange rates.

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

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

- 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

Stockholders' Equity

12 Months Ended

Sep. 30, 2019

Equity [Abstract]

Stockholders' Equity

6. Stockholders’ Equity

Repurchase of Common Stock

Shares are repurchased from time to time to support the Company’s stock-based compensation programs and to return capital to stockholders. The Company accounts for repurchases of common stock using the par value method.

On November 6, 2015 and November 5, 2014, the Company’s Board of Directors authorized the repurchase of up to $20.0 million and $30.0 million, respectively, of the Company’s outstanding common stock in open-market purchases, privately negotiated transactions, block trades, accelerated share repurchase transactions, tender offers or by any combination of such methods. The authorizations have no fixed expiration date. During fiscal 2017, we paid $4.7 million to repurchase 196,190 common shares in open market purchases at an average price of $23.97 per share. As of September 30, 2019, $25.3 million remained available to the Company for the purchase of its common stock under outstanding authorizations.

Stock-Based Compensation Plans

12 Months Ended

Sep. 30, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation Plans

7. Stock-Based Compensation Plans

The Company has stock-based compensation plans under which it grants stock options, restricted stock awards, performance share awards, restricted stock units and deferred stock units. Accounting guidance requires all share-based payments to be recognized as an expense, based on their fair values, over the requisite service period. The Company also estimates forfeitures of awards granted, which are based on historical experience and reduce the recognized expense. The Company’s stock-based compensation expenses for the years ended September 30 were allocated to the following expense categories (in thousands):

	2019		2018		2017
Product costs	$	135	$	69	$	90
Research and development		876		801		510
Selling, general and administrative		4,066		3,937		2,872
Total stock-based compensation expense	$	5,077	$	4,807	$	3,472

As of September 30, 2019, approximately $6.9 million of total unrecognized compensation costs related to non-vested awards is expected to be recognized over a weighted average period of approximately 2.2 years.

Under the 2019 Equity Incentive Plan (“2019 Plan”), the Company is authorized to issue 1,100,000 shares, plus the number of shares pursuant to any awards granted under the 2009 Equity Incentive Plan (“2009 Plan”) that were outstanding on the effective date of the 2019 Plan that expire, are cancelled or forfeited or are settled for cash.. As of September 30, 2019, there were 1,084,492 shares available for future equity awards, including stock options, restricted stock awards, and restricted stock and deferred stock units, under the 2019 Plan.

Stock Option Awards

The Company uses the Black-Scholes option pricing model to determine the weighted average grant date fair value of stock options. Weighted average per share fair values of stock options granted during fiscal 2019, 2018 and 2017 were $17.89, $10.91 and $7.63, respectively. The assumptions used as inputs in the model for the years ended September 30 were as follows:

	2019			2018			2017
Risk-free interest rates		2.75	%		2.18	%		1.74	%
Expected life	4.5 years			4.8 years			4.6 years
Expected volatility		34	%		33	%		34	%
Dividend yield		0	%		0	%		0	%

The risk-free interest rate assumption was based on the U.S. Treasury’s rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award. The expected life of options granted is determined based on the Company’s experience. Expected volatility is based on the Company’s stock price movement over a period approximating the expected term. Based on management’s judgment, dividend rates are expected to be 0.0% for the expected life of the options.

Non-qualified stock options are granted at fair market value on the grant date. Non-qualified stock options expire in seven years or upon termination of employment or service as a Board member. With respect to members of the Board, non-qualified stock options generally become exercisable on a pro-rata basis over the one-year period following the date of grant. With respect to employees, non-qualified stock options generally become exercisable with respect to 25% of the shares on each of the first four anniversaries following the grant date. The stock-based compensation table above includes stock option expenses recognized related to these awards, which totaled $2.2 million, $1.6 million and $1.3 million during fiscal 2019, 2018 and 2017, respectively.

As of September 30, 2019, the aggregate intrinsic value of the option shares outstanding and option shares exercisable was $13.8 million and $9.0 million, respectively. As of September 30, 2019, the average remaining contractual life of options outstanding and options exercisable was 4.4 years and 3.5 years, respectively. The total pre-tax intrinsic value of options exercised during fiscal 2019, 2018 and 2017 was $0.3 million, $12.1 million and $0.1 million, respectively. The intrinsic value represents the difference between the exercise price and the fair market value of the Company’s common stock on the last day of the respective fiscal year end.

The following table summarizes all stock options activity and stock options outstanding and exercisable under the stock option plans during fiscal 2019, 2018 and 2017:

	Number of Shares			Weighted Average Exercise Price
Outstanding at September 30, 2016		827,325		$	21.30
Granted		229,039			24.08
Exercised		(6,819	)		13.89
Forfeited and expired		(47,640	)		30.65
Outstanding at September 30, 2017		1,001,905			21.54
Granted		269,961			34.08
Exercised		(450,495	)		19.46
Forfeited and expired		(110,825	)		30.18
Outstanding at September 30, 2018		710,546			26.28
Granted		179,669			55.09
Exercised		(12,604	)		22.03
Forfeited and expired		(6,435	)		42.28
Outstanding at September 30, 2019		871,176			32.18
Exercisable at September 30, 2019		418,873		$	24.71

Restricted Stock Awards

The Company has entered into restricted stock agreements with certain key employees, covering the issuance of common stock (“Restricted Stock”). Under accounting guidance, these shares are considered to be non-vested shares. The Restricted Stock is released to the key employees if they are employed by the Company at the end of the vesting period. Restricted stock awards generally vest at a 33% rate on each of the first three anniversaries following the grant date. Compensation expense is recognized on a straight-line basis over the vesting term based on the fair value of the common shares on the date of grant. The stock-based compensation table above includes Restricted Stock expenses recognized related to these awards, which totaled $1.7 million, $1.0 million and $0.5 million during fiscal 2019, 2018 and 2017, respectively.

The following table summarizes all restricted stock awards activity during fiscal 2019, 2018 and 2017:

	Number of Shares			Weighted Average Grant Price
Balance at September 30, 2016		33,133		$	20.96
Granted		51,559			25.12
Vested		(14,497	)		21.10
Forfeited		(2,278	)		25.12
Balance at September 30, 2017		67,917			23.98
Granted		56,244			34.38
Vested		(28,717	)		23.78
Forfeited		(10,020	)		29.10
Balance at September 30, 2018		85,424			30.30
Granted		45,049			56.05
Vested		(39,195	)		28.61
Forfeited		(869	)		47.86
Balance at September 30, 2019		90,409		$	43.69

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. The Performance Shares are not issued and outstanding until the performance objectives are met. The Organization and Compensation Committee of the Board of Directors (the “Committee”) approves the performance objectives used for executive compensation programs, which objectives were cumulative earnings before interest, income taxes, depreciation and amortization (“EBITDA”) for fiscal 2015 awards (2015 – 2017), fiscal 2016 awards (2016-2018) and fiscal 2017 awards (2016-2018). The Committee did not approve Performance Share awards in fiscal 2018 or fiscal 2019. Assuming that the minimum performance level is attained, the number of shares that may actually vest will vary based on performance from 20% (minimum) to 200% (maximum) of the target number of shares. Shares will be issued to participants as soon as practicable following the end of the performance periods, subject to Committee approval and verification of results. The per-unit compensation cost related to the shares to be granted under each performance period is fixed on the grant date, which is the date the performance period begins. Compensation expense is recognized in each period based on management’s best estimate of the achievement level of the specified performance objectives for Performance Shares for each open performance period. In fiscal 2019, the Company recognized expense of $0.4 million related to probable achievement of performance objectives for three-year Performance Shares granted in fiscal 2017. In fiscal 2018, the Company recognized expense of $1.5 million related to probable achievement of performance objectives for three-year Performance Shares granted in fiscal 2017 and 2016. In fiscal 2017, the Company recognized expense of $1.2 million related to probable achievement of performance objectives for three-year Performance Shares granted in fiscal 2017, 2016 and 2015. The stock-based compensation table above includes the Performance Shares expenses.

The fair values of the Performance Shares, at target, were $1.2 million for the grant awarded in fiscal 2017. During the year ended September 30, 2018, the resignation of an executive resulted in the forfeiture of 12,217 Performance Shares at their respective original performance targets.

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 2017 - 2019

9,352

46,758

93,516

The Fiscal 2017 – 2019 awards are expected to be finalized in December 2019 at an estimated 47,000 shares based on performance objective results.

1999 Employee Stock Purchase Plan

Under the amended 1999 Employee Stock Purchase Plan (“Stock Purchase Plan”), the Company is authorized to issue up to 600,000 shares of common stock. All full-time and part-time U.S. employees can choose to have up to 10% of their annual compensation withheld, with a limit of $25,000, to purchase the Company’s common stock at purchase prices defined within the provisions of the Stock Purchase Plan. As of September 30, 2019 and 2018, there were less than $0.1 million of employee contributions in accrued liabilities in the consolidated balance sheets. Stock compensation expense recognized related to the Stock Purchase Plan for fiscal 2019, 2018 and 2017 totaled $0.1 million or less for each year. The stock-based compensation table above includes the Employee Stock Purchase Plan expenses.

Restricted Stock and Deferred Stock Units

The Company awarded 11,871 and 21,535 restricted stock units (“RSU”) in fiscal 2019 and 2018, respectively, under the 2019 Plan and the 2009 Plan to non-employee directors and certain key employees in foreign jurisdictions with forfeitures of 88 and 528 in fiscal 2019 and 2018, respectively. 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. As of September 30, 2019 and 2018, outstanding, unvested RSU’s totaled 62,242 and 60,182, respectively, with an estimated fair value of $2.8 million and $4.5 million, respectively. Compensation expense is recognized over the vesting term based on the fair value of the common shares on the date of grant. The stock-based compensation table above includes RSU expenses recognized related to these awards, which totaled $0.6 million, $0.5 million and $0.3 million in fiscal 2019, 2018 and 2017, respectively.

Directors may elect to receive their annual fees for services to the Board in deferred stock units (“DSUs”). As of September 30, 2019 and 2018, outstanding DSUs totaled 29,729 and 26,991, respectively, with an estimated fair value of $1.4 million and $2.0 million, respectively. These DSUs are fully vested when granted. Stock-based compensation expense related to DSU awards, totaled $0.1 million per year in fiscal 2019, 2018 and 2017.

Income Taxes

12 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

8. Income Taxes

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

	2019			2018			2017
Current provision (benefit):
U.S. Federal	$	1,355		$	(890	)	$	2,125
U.S. State		192			51			(72	)
International		41			41			54
Total current provision (benefit)		1,588			(798	)		2,107
Deferred provision (benefit):
U.S. Federal		(1,505	)		(2,006	)		1,085
U.S. State		(117	)		(271	)		(85	)
International		—			—			—
Total deferred (benefit) provision (1)		(1,622	)		(2,277	)		1,000
Total (benefit) provision	$	(34	)	$	(3,075	)	$	3,107

Both the current and deferred benefit include the impact of the adoption of ASC Topic 606 in fiscal 2019, which reduced deferred income taxes and income taxes receivable by $1.2 million and $0.4 million, respectively.

In December 2017, the Tax Cuts and Jobs Act (“TCJA”) tax legislation was signed into law, which reduced the U.S. Federal statutory tax rate from 35% to 21%, among other changes. As of September 30, 2019, the Company has fully completed its accounting for the tax effects of the enactment of the TCJA. The fiscal 2018 tax provision includes discrete tax expense of $1.6 million from the revaluation of the Company’s net deferred tax assets based on the enacted tax rate of 21%, as compared with the previous rate of 35%. U.S. tax law requires that taxpayers with a fiscal year beginning before and ending after the effective date of a rate change calculate a blended tax rate for the year based on the pro rata number of days in the year before and after such effective date. As a result, for the fiscal year ended September 30, 2018, our U.S. federal statutory income tax rate was 24.5%. The reconciliation of the difference between amounts calculated at the statutory U.S. federal tax rate of 21%, 24.5% and 35% for fiscal 2019, 2018 and 2017, respectively, and the Company’s effective tax rate from continuing operations is as follows (in thousands):

	2019			2018			2017
Amount at statutory U.S. federal income tax rate	$	1,587		$	(1,845	)	$	2,461
Change because of the following items:
State income taxes, net of federal benefit		(452	)		(724	)		(13	)
U.S. Federal and foreign research and development credits		(2,464	)		(1,710	)		(706	)
Foreign and state rate differential		156			371			948
Valuation allowance change		671			960			665
Stock-based compensation (1)		(163	)		(2,063	)		330
Contingent consideration (gain) expense and related foreign currency revaluation		(61	)		142			125
U.S. Federal and state rate change		44			1,582			—
Tax reserve change		770			158			(52	)
Foreign-derived income deduction		(150	)		—			—
Federal manufacturing deduction		—			—			(313	)
Other		28			54			(338	)
Income tax provision	$	(34	)	$	(3,075	)	$	3,107

(1)

Includes non-deductible stock-based compensation.

Excess tax benefits (shortfalls) related to stock based compensation expense are recorded within income tax benefit (expense) in the consolidated statements of operations and totaled $0.5 million, 2.0 million and $($0.2) million for the fiscal years ended September 30, 2019, 2018 and 2017, respectively.

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

	2019			2018
Depreciable assets	$	(905	)	$	(1,019	)
Deferred revenue		1,554			—
Accruals and reserves		585			1,308
Stock-based compensation		2,213			1,798
Impaired strategic investments		1,666			1,687
NOL carryforwards		3,308			4,637
U.S. Federal and state R&D credits		2,394			1,896
Other		689			538
Valuation allowance		(5,328	)		(4,541	)
Total deferred tax assets	$	6,176		$	6,304

As of September 30, 2019 and 2018, the Company recorded deferred tax asset valuation allowances of $5.3 million and $4.5 million, respectively. The valuation allowances are primarily related to other-than-temporary impairment losses on strategic investments, state R&D credit carryforwards, and net operating loss carryforwards of Creagh Medical. As of September 30, 2019, the Company had federal and state R&D credit carryforwards of $2.4 million that will begin expiring in 2029 and federal and state net operating loss carryforwards of $0.2 million and $0.2 million that will begin expiring in 2034 and 2022, respectively. Ireland net operating loss carryforward assets totaling $3.0 million, much of which was acquired as part of the Creagh Medical acquisition in fiscal 2016, have an unlimited carryforward period. The U.S. federal and Minnesota net operating losses acquired as part of the NorMedix acquisition are subject to the IRC Section 382 limitation rules. The Company has projected that these loss carryforwards will be utilized with over the nine years remaining in the carryforward period.

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

	2019			2018			2017
Beginning of fiscal year	$	1,559		$	1,481		$	1,508
Increases in tax positions for prior years		278			61			8
Decreases in tax positions for prior years		(2	)		—			(35	)
Increases in tax positions for current year		735			735			216
Settlements with taxing authorities		—			(613	)		—
Lapse of the statute of limitations		(247	)		(105	)		(216	)
End of fiscal year	$	2,323		$	1,559		$	1,481

The total amount of unrecognized tax benefits excluding interest and penalties that, if recognized, would affect the effective tax rate as of September 30, 2019, 2018 and 2017, respectively, are $2.1 million, $1.4 million and $1.2 million. Currently, the Company does not expect the liability for unrecognized tax benefits to change significantly in the next 12 months and has classified the above balances on the consolidated balance sheets in other long-term liabilities. Interest and penalties related to unrecognized tax benefits are recorded in income tax expense. As of September 30, 2019, 2018 and 2017, a gross balance of $0.5 million, $0.4 million and $0.5 million, respectively, has been accrued related to the unrecognized tax benefits balance for interest and penalties.

The Company files income tax returns, including returns for its subsidiaries, in the U.S. federal jurisdiction and in various state jurisdictions as well as several non-U.S. jurisdictions. Uncertain tax positions are related to tax years that remain subject to examination. The Internal Revenue Service (“IRS”) completed an examination of our fiscal 2016 U.S. federal income tax return in the third quarter of fiscal 2018, with a payment made associated primarily with timing adjustments. U.S. federal income tax returns for years prior to fiscal 2015 are no longer subject to examination by federal tax authorities. For tax returns for state and local jurisdictions, the Company is no longer subject to examination for tax years generally before fiscal 2007. For tax returns for non-U.S. jurisdictions, the Company is no longer subject to income tax examination for years prior to 2012. Additionally, the Company has been indemnified of liability for any taxes relating to Creagh Medical and NorMedix for periods prior to the respective acquisition dates, pursuant to the terms of the related share purchase agreements. As of September 30, 2019 and 2018, there were no undistributed earnings in foreign subsidiaries.

Defined Contribution Plan

12 Months Ended

Sep. 30, 2019

Compensation And Retirement Disclosure [Abstract]

Defined Contribution Plan

9. Defined Contribution Plan

The Company has a 401(k) retirement and savings plan for the benefit of qualifying U.S. employees, and a defined contribution PRSA plan for the benefit of qualifying Ireland employees. For U.S. employees, the Company matches 50% of employee contributions on the first 6% of eligible compensation. For Ireland employees, the Company makes contributions of up to 8% of eligible compensation on employee contributions of up to 6% of eligible compensation. Company contributions totaling $0.9 million, $0.7 million and $0.7 million have been expensed in the years ended September 30, 2019, 2018 and 2017, respectively.

Commitments and Contingencies

12 Months Ended

Sep. 30, 2019

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

10. 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.

On January 17, 2018, the Company entered into a settlement agreement fully resolving the previously disclosed litigation involving Merit Medical Systems, Inc. (“Merit”) and NorMedix.

In April 2018, a customer notified the Company that it believed it had overpaid hydrophilic coating royalties to the Company from January 2009 through December 2017. During the year ended September 30, 2018, the Company recorded $1.0 million in selling, general and administrative expenses related to this claim. During fiscal 2019, the Company settled this claim and made a payment to the customer totaling $0.4 million, resulting in a reduction of selling, general and administrative expenses of $0.6 million for the year ended September 30, 2019.

InnoRx, Inc. In January 2005, the Company entered into a merger agreement whereby the Company acquired all of the assets of InnoRx, Inc. (“InnoRx”), an early stage company developing drug-delivery devices and therapies for the ophthalmology market. The Company will be required to issue up to approximately 480,059 additional shares of its common stock to the stockholders of InnoRx upon the successful completion of the remaining development and commercial milestones involving InnoRx technology acquired in the transaction. The Company has not recorded any accrual for this contingency as of September 30, 2019 as the milestones have not been achieved and the probability of achievement is remote.

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 $218,000 using a euro to US $ exchange rate of 1.0916 as of September 30, 2019) until the last patent expires which is currently estimated to be September 2027. The total minimum future payments associated with this license are approximately $1.7 million. The license is currently utilized with one of Surmodics’ drug-delivery technology customers.

Operating Leases. The Company leases certain facilities under noncancelable operating lease agreements. Rent expense for the years ended September 30, 2019, 2018 and 2017 was $0.5 million, $0.5 million and $0.1 million, respectively. In November 2017, the Company executed a lease for a 36,000 square feet of office and R&D facility in Eden Prairie, Minnesota. In September 2019, we amended this lease to add 13,000 square feet of additional office space, effective December 1, 2019 through the end of the lease term. Contractual obligations under the lease agreement, including the amendment total $5.2 million over the ten-year lease term, which commenced in May 2018. Annual commitments pursuant to operating lease agreements in place as of September 30, 2019 are as follows (in thousands):


2019	$	493
2020		538
2021		536
2022		547
2023		558
Thereafter		2,092
Total minimum lease payments	$	4,765

Clinical Trials. The Company has engaged CRO consultants to assist with the administration of its ongoing clinical trials. The Company has executed separate contracts with two CROs for services rendered in connection with the TRANSCEND pivotal clinical trial for the SurVeil DCB, including pass-through expenses paid by the CROs, of up to $26 million in the aggregate. As of September 30, 2019, an estimated $11.8 million remains to be paid on these contracts, which may vary depending on actual pass-through expenses incurred to execute the trial. The Company estimates that the total cost of the TRANSCEND clinical trial will be in the range of $35 million to $40 million from inception to completion. In the event the Company were to terminate any trial, it may incur certain financial penalties which would become payable to the CRO for costs to wind down the terminated trial.

Asset Acquisitions. In July 2019, the Company acquired certain intellectual property assets supporting ongoing development of the Company’s medical device pipeline. As a result of this acquisition, the Company made an upfront, nonrefundable payment of $0.8 million. In addition, the Company is obligated to pay up to $1.3 million of additional consideration upon achievement of certain strategic milestones within a contingency period ending in 2022, of which $0.2 million is guaranteed to be paid by December 2020. In the fourth quarter of fiscal 2019, the Company recorded a charge totaling $0.9 million related to this acquisition in acquired in-process research and development expense on the consolidated statement of operations for the year ended September 30, 2019.

In May 2018, the Company entered into an asset purchase agreement with Embolitech, LLC (“Embolitech”) to acquire certain intellectual property assets. As part of the Embolitech Transaction, the Company paid the sellers $5.0 million in fiscal 2018. Additionally, the Company is obligated to pay $3.5 million in several installments beginning January 2020 and ending December 2023. These payments may be accelerated upon the occurrence of certain sales and regulatory milestones. An additional $2.0 million payment is contingent upon the achievement of certain regulatory milestones within a contingency period ending in 2033. The present value of the probable payments totaling $7.9 million was recorded in acquired in-process research and development expense on the consolidated statement of operations for the year ended September 30, 2018.

As of September 30, 2019, $1.0 million and $2.1 million is included in other accrued liabilities and other long-term liabilities, respectively, on the consolidated balance sheets related to the guaranteed installment payments for these asset acquisitions.

Reportable Segment Information

12 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Reportable Segment Information

11. Reportable Segment Information

The accounting standards for reporting information about operating segments define operating segments 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 designs, develops and manufactures interventional medical devices, primarily for the peripheral vascular market; surface modification coating technologies to improve access, deliverability, and predictable deployment of medical devices; as well as drug-delivery coating technologies to provide site-specific drug-delivery from the surface of a medical device, with end markets that include coronary, peripheral, neuro-vascular and urology, among others, and (2) the In Vitro Diagnostics unit, which consists of component products and technologies for diagnostic test kits and biomedical research applications, with products that include protein stabilization reagents, substrates, antigens and surface coatings.

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

	2019			2018			2017
Revenue:
Medical Device	$	78,353		$	60,513		$	53,983
In Vitro Diagnostics		21,724			20,823			19,129
Total revenue	$	100,077		$	81,336		$	73,112

Operating income (loss):
Medical Device	$	4,794		$	(8,478	)	$	6,902
In Vitro Diagnostics		10,620			8,619			8,293
Total segment operating income		15,414			141			15,195
Corporate		(8,945	)		(8,940	)		(8,092	)
Total operating income (loss)	$	6,469		$	(8,799	)	$	7,103

Depreciation and amortization:
Medical Device	$	5,811		$	5,376		$	4,453
In Vitro Diagnostics		464			394			412
Corporate		1,037			661			690
Total depreciation and amortization	$	7,312		$	6,431		$	5,555

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

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

Major Customers

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

	2019			2018			2017
Abbott		19	%		11	%	N/A
Medtronic		14	%		16	%		18	%

The revenue from the customers listed is derived from two primary sources: licensing and product sales (primarily in the Medical Device segment).

Geographic Revenue and Long-lived Assets

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

	2019			2018			2017
Domestic		81	%		79	%		77	%
Foreign		19	%		21	%		23	%

Long-lived assets, including property and equipment and intangible assets net of accumulated depreciation and amortization, respectively, by country were as follows as of September 30:

	2019		2018
U.S.	$	24,450	$	26,652
Ireland		19,524		21,174

Quarterly Financial Data (Unaudited)

12 Months Ended

Sep. 30, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (Unaudited)

12. Quarterly Financial Data (Unaudited)

The following is a summary of the unaudited quarterly results for the years ended September 30, 2019 and 2018 (in thousands, except per share data).

	First Quarter			Second Quarter		Third Quarter			Fourth Quarter
Fiscal 2019
Total revenue	$	22,241		$	22,676	$	24,344		$	30,816
Operating income		712			865		1,017			3,875
Net income		1,310			1,262		1,466			3,554
Basic net income per share (1):		0.10			0.09		0.11			0.27
Diluted net income per share (1):		0.09			0.09		0.11			0.26

Fiscal 2018
Total revenue	$	17,013		$	19,058	$	22,227		$	23,038
Operating (loss) income		(633	)		525		(6,250	)		(2,441	)
Net (loss) income		(1,556	)		1,534		(2,682	)		(1,753	)
Basic net (loss) income per share (1):		(0.12	)		0.12		(0.20	)		(0.13	)
Diluted net (loss) income per share (1):		(0.12	)		0.11		(0.20	)		(0.13	)

(1)

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

In the third quarter of fiscal 2019, the Company recorded royalty revenue from the extension of a customer license agreement totaling $1.0 million.

In July 2019, the Company acquired certain technology assets resulting in a $0.9 million charge in the fourth quarter of fiscal 2019.

In the August 2019, the Company achieved a clinical milestone related to its agreement with Abbott, which resulted in the receipt of a $10 million payment, of which $5.1 million was recognized as revenue for the quarter.

In the first quarter of fiscal 2018, the Company recorded a $1.2 million charge related to the revaluation of deferred tax assets to reflect the change in the U.S. Federal tax rate from 35% to 21% in conjunction with the Tax Cuts and Jobs Act tax legislation.

In the second quarter of fiscal 2018, the Company entered into a collaborative arrangement with Abbott, which resulted in license fee revenue totaling $4.4 million in the final nine months of the fiscal year.

In May 2018, the Company acquired certain technology assets from Embolitech resulting in a $7.9 million charge in the third quarter of fiscal 2018.

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

12 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Accounting Policies [Abstract]

Cash, Restricted Cash and Cash Equivalents

Investments

The amortized cost, unrealized holding gains and losses, and fair value of available-for-sale securities as of September 30, 2019 and 2018 were as follows (in thousands):

	September 30, 2019
(Dollars in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Commercial paper and corporate bonds	$	24,918	$	13	$	—	$	24,931
Total	$	24,918	$	13	$	—	$	24,931

	September 30, 2018
(Dollars in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Commercial paper and corporate bonds	$	41,403	$	—	$	(51	)	$	41,352
Total	$	41,403	$	—	$	(51	)	$	41,352

Inventories

	2019		2018
Raw materials	$	2,034	$	1,890
Work in-process		892		780
Finished products		1,575		1,346
Total	$	4,501	$	4,016

Property and Equipment

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

	Useful Life	2019			2018
	(In years)
Land	N/A	$	4,415		$	4,420
Laboratory fixtures and equipment	3 to 10		25,467			22,024
Buildings and improvements	3 to 20		24,513			21,717
Leasehold improvements	10		4,836			4,836
Office furniture and equipment	3 to 10		6,476			5,824
Construction-in-progress			2,030			4,834
Less accumulated depreciation			(37,989	)		(33,512	)
Property and equipment, net		$	29,748		$	30,143

Other Assets

Other assets consist principally of the following as of September 30 (in thousands):

	2019		2018
ViaCyte, Inc.	$	479	$	479
Other noncurrent assets		1,645		967
Other assets, net	$	2,124	$	1,446

Intangible Assets

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

	2019
	Weighted Average Original Life (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Definite-lived intangible assets:
Customer lists and relationships		8.9	$	17,374	$	(10,661	)	$	6,713
Developed technology		11.5		9,490		(3,196	)		6,294
Non-compete		5.0		230		(196	)		34
Patents and other		16.5		2,321		(1,716	)		605
Subtotal				29,415		(15,769	)		13,646
Unamortized intangible assets:
Trademarks and trade names				580		—			580
Total			$	29,995	$	(15,769	)	$	14,226

	2018
	Weighted Average Original Life (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Definite-lived intangible assets:
Customer lists and relationships		8.9	$	18,086	$	(9,377	)	$	8,709
Developed technology		11.5		9,656		(2,361	)		7,295
Non-compete		5.0		230		(150	)		80
Patents and other		16.5		2,321		(1,569	)		752
Subtotal				30,293		(13,457	)		16,836
Unamortized intangible assets:
In-process research and development				267		—			267
Trademarks and trade names				580		—			580
Total			$	31,140	$	(13,457	)	$	17,683

Based on the intangible assets in service as of September 30, 2019, estimated amortization expense for each of the next five fiscal years is as follows (in thousands):

2020	$	2,414
2021		2,275
2022		2,235
2023		1,629
2024		1,584

Goodwill

The change in the carrying amount of goodwill by segment for the years ended September 30, 2019 and 2018 was as follows (in thousands):

(Dollars in thousands)	In Vitro Diagnostics		Medical Device			Total
Balance as of September 30, 2017	$	8,010	$	19,272		$	27,282
Foreign currency translation adjustment		—		(250	)		(250	)
Balance as of September 30, 2018		8,010		19,022			27,032
Foreign currency translation adjustment		—		(861	)		(861	)
Balance as of September 30, 2019	$	8,010	$	18,161		$	26,171

Valuation of Long-Lived Assets

Accrued Liabilities

Other accrued liabilities consisted of the following as of September 30 (in thousands):

	2019		2018
Accrued professional fees	$	434	$	311
Accrued clinical study expense		2,163		2,839
Accrued purchases		679		533
Acquisition of in process research and development		989		—
Deferred rent		130		121
Other		395		262
Customer claim		—		1,000
Construction in progress		—		1,199
Total	$	4,790	$	6,265

Revenue Recognition

Performance Obligations

The Company recognizes revenue when control is transferred to the customer. The transfer of control varies by revenue classification and is described below.

If a contract contains more than one distinct performance obligation, the transaction price is allocated to each performance obligation based on relative standalone selling price.

Contract Assets, Deferred Revenue and Remaining Performance Obligations

Concentrations

Income Taxes

Research and Development

Use of Estimates

Income Per Share Data

The following table sets forth the denominator for the computation of basic and diluted income per share for each of the years ended September 30 (in thousands):

	2019		2018			2017
Net income (loss) available to common shareholders	$	7,592	$	(4,457	)	$	3,926

Basic weighted average shares outstanding		13,389		13,157			13,153
Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units and performance shares		390		—			236
Diluted weighted average shares outstanding		13,779		13,157			13,389

Currency Translation

New Accounting Pronouncements

Accounting Standards Implemented

(Dollars in thousands)	September 30, 2018, As Reported		Adjustments for Adoption of Topic 606			October 1, 2018 Opening Balance
Assets
Contract assets - royalties and license fees	$	—	$	6,904		$	6,904
Deferred income taxes		6,304		(1,215	)		5,089
Income tax receivable		1,152		(390	)		762

Liabilities and Stockholders' Equity
Deferred revenue, current portion		9,646		(18	)		9,628
Deferred revenue, less current portion		11,247		(181	)		11,066
Retained earnings		97,615		5,498			103,113

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.

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

12 Months Ended

Sep. 30, 2019

Accounting Policies [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 September 30, 2019 and 2018 were as follows (in thousands):

	September 30, 2019
(Dollars in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Commercial paper and corporate bonds	$	24,918	$	13	$	—	$	24,931
Total	$	24,918	$	13	$	—	$	24,931

	September 30, 2018
(Dollars in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Commercial paper and corporate bonds	$	41,403	$	—	$	(51	)	$	41,352
Total	$	41,403	$	—	$	(51	)	$	41,352

Components of Inventories

Inventories consisted of the following components as of September 30 (in thousands):

	2019		2018
Raw materials	$	2,034	$	1,890
Work in-process		892		780
Finished products		1,575		1,346
Total	$	4,501	$	4,016

Schedule of Property, Plant and Equipment

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

	Useful Life	2019			2018
	(In years)
Land	N/A	$	4,415		$	4,420
Laboratory fixtures and equipment	3 to 10		25,467			22,024
Buildings and improvements	3 to 20		24,513			21,717
Leasehold improvements	10		4,836			4,836
Office furniture and equipment	3 to 10		6,476			5,824
Construction-in-progress			2,030			4,834
Less accumulated depreciation			(37,989	)		(33,512	)
Property and equipment, net		$	29,748		$	30,143

Summary of Other Assets

Other assets consist principally of the following as of September 30 (in thousands):

	2019		2018
ViaCyte, Inc.	$	479	$	479
Other noncurrent assets		1,645		967
Other assets, net	$	2,124	$	1,446

Schedule of Intangible Assets

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

	2019
	Weighted Average Original Life (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Definite-lived intangible assets:
Customer lists and relationships		8.9	$	17,374	$	(10,661	)	$	6,713
Developed technology		11.5		9,490		(3,196	)		6,294
Non-compete		5.0		230		(196	)		34
Patents and other		16.5		2,321		(1,716	)		605
Subtotal				29,415		(15,769	)		13,646
Unamortized intangible assets:
Trademarks and trade names				580		—			580
Total			$	29,995	$	(15,769	)	$	14,226

	2018
	Weighted Average Original Life (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Definite-lived intangible assets:
Customer lists and relationships		8.9	$	18,086	$	(9,377	)	$	8,709
Developed technology		11.5		9,656		(2,361	)		7,295
Non-compete		5.0		230		(150	)		80
Patents and other		16.5		2,321		(1,569	)		752
Subtotal				30,293		(13,457	)		16,836
Unamortized intangible assets:
In-process research and development				267		—			267
Trademarks and trade names				580		—			580
Total			$	31,140	$	(13,457	)	$	17,683

Estimated Amortization Expense

Based on the intangible assets in service as of September 30, 2019, estimated amortization expense for each of the next five fiscal years is as follows (in thousands):

2020	$	2,414
2021		2,275
2022		2,235
2023		1,629
2024		1,584

Schedule Of Carrying Amount Of Goodwill By Segment

The change in the carrying amount of goodwill by segment for the years ended September 30, 2019 and 2018 was as follows (in thousands):

(Dollars in thousands)	In Vitro Diagnostics		Medical Device			Total
Balance as of September 30, 2017	$	8,010	$	19,272		$	27,282
Foreign currency translation adjustment		—		(250	)		(250	)
Balance as of September 30, 2018		8,010		19,022			27,032
Foreign currency translation adjustment		—		(861	)		(861	)
Balance as of September 30, 2019	$	8,010	$	18,161		$	26,171

Schedule of Other Accrued Liabilities

Other accrued liabilities consisted of the following as of September 30 (in thousands):

	2019		2018
Accrued professional fees	$	434	$	311
Accrued clinical study expense		2,163		2,839
Accrued purchases		679		533
Acquisition of in process research and development		989		—
Deferred rent		130		121
Other		395		262
Customer claim		—		1,000
Construction in progress		—		1,199
Total	$	4,790	$	6,265

Denominator for Computation of Basic and Diluted Income Per Share

The following table sets forth the denominator for the computation of basic and diluted income per share for each of the years ended September 30 (in thousands):

	2019		2018			2017
Net income (loss) available to common shareholders	$	7,592	$	(4,457	)	$	3,926

Basic weighted average shares outstanding		13,389		13,157			13,153
Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units and performance shares		390		—			236
Diluted weighted average shares outstanding		13,779		13,157			13,389

Impact of Adoption of ASC Topic 606 on Consolidated Balance Sheet

The impact of the adoption of ASC Topic 606 on the opening consolidated balance sheet as of October 1, 2018, as compared with the consolidated balance sheet previously reported as of September 30, 2018, was as follows:

(Dollars in thousands)	September 30, 2018, As Reported		Adjustments for Adoption of Topic 606			October 1, 2018 Opening Balance
Assets
Contract assets - royalties and license fees	$	—	$	6,904		$	6,904
Deferred income taxes		6,304		(1,215	)		5,089
Income tax receivable		1,152		(390	)		762

Liabilities and Stockholders' Equity
Deferred revenue, current portion		9,646		(18	)		9,628
Deferred revenue, less current portion		11,247		(181	)		11,066
Retained earnings		97,615		5,498			103,113

Revenue (Tables)

12 Months Ended

Sep. 30, 2019

Revenue From Contract With Customer [Abstract]

Summary of Revenues Disaggregated by Product Classification and Operating Segment

The following table presents our revenues disaggregated by product classification and by operating segment (in thousands):

	2019		2018		2017
Medical Device
Product sales	$	18,617	$	17,200	$	13,735
Royalties		34,781		30,606		30,264
Research, development and other		11,277		7,889		8,528
License fees		13,678		4,818		1,456
Total Revenue - Medical Device		78,353		60,513		53,983
IVD
Product sales		21,390		20,789		19,055
Other		334		34		74
Total Revenue - IVD		21,724		20,823		19,129
Total Revenue	$	100,077	$	81,336	$	73,112

Fair Value Measurements (Tables)

12 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 (in thousands):

	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Total Fair Value as of September 30, 2019
Assets
Cash equivalents	$	—	$	24,375	$	—		$	24,375
Available-for-sale securities		—		24,931		—		$	24,931
Total assets	$	—	$	49,306	$	—		$	49,306

Liabilities
Contingent consideration	$	—	$	—	$	(3,200	)	$	(3,200	)
Total liabilities	$	—	$	—	$	(3,200	)	$	(3,200	)

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2018 (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, 2018
Assets
Cash equivalents	$	—	$	13,999	$	—		$	13,999
Available-for-sale securities		—		41,352		—		$	41,352
Total assets	$	—	$	55,351	$	—		$	55,351

Liabilities
Contingent consideration	$	—	$	—	$	(14,466	)	$	(14,466	)
Total liabilities	$	—	$	—	$	(14,466	)	$	(14,466	)

Schedule of Contingent Consideration Liability

The following table summarizes the changes in the contingent consideration liability for the years ended September 30, 2019 and 2018:

(Dollars in thousands)
Contingent consideration liability at September 30, 2017	$	14,864
Additions		—
Fair value adjustments		288
Settlements		(925	)
Interest accretion		387
Foreign currency translation		(148	)
Contingent consideration liability at September 30, 2018		14,466
Additions		—
Fair value adjustments		(415	)
Settlements		(10,979	)
Interest accretion		254
Foreign currency translation		(126	)
Contingent consideration liability at September 30, 2019	$	3,200

Stock-Based Compensation Plans (Tables)

12 Months Ended

Sep. 30, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation Expenses

The Company’s stock-based compensation expenses for the years ended September 30 were allocated to the following expense categories

	2019		2018		2017
Product costs	$	135	$	69	$	90
Research and development		876		801		510
Selling, general and administrative		4,066		3,937		2,872
Total stock-based compensation expense	$	5,077	$	4,807	$	3,472

Assumptions Used in Stock Option Plans

The assumptions used as inputs in the model for the years ended September 30 were as follows:

	2019			2018			2017
Risk-free interest rates		2.75	%		2.18	%		1.74	%
Expected life	4.5 years			4.8 years			4.6 years
Expected volatility		34	%		33	%		34	%
Dividend yield		0	%		0	%		0	%

Schedule of Stock Option Activity

The following table summarizes all stock options activity and stock options outstanding and exercisable under the stock option plans during fiscal 2019, 2018 and 2017:

	Number of Shares			Weighted Average Exercise Price
Outstanding at September 30, 2016		827,325		$	21.30
Granted		229,039			24.08
Exercised		(6,819	)		13.89
Forfeited and expired		(47,640	)		30.65
Outstanding at September 30, 2017		1,001,905			21.54
Granted		269,961			34.08
Exercised		(450,495	)		19.46
Forfeited and expired		(110,825	)		30.18
Outstanding at September 30, 2018		710,546			26.28
Granted		179,669			55.09
Exercised		(12,604	)		22.03
Forfeited and expired		(6,435	)		42.28
Outstanding at September 30, 2019		871,176			32.18
Exercisable at September 30, 2019		418,873		$	24.71

Schedule of Restricted Stock Awards Activity

The following table summarizes all restricted stock awards activity during fiscal 2019, 2018 and 2017:

	Number of Shares			Weighted Average Grant Price
Balance at September 30, 2016		33,133		$	20.96
Granted		51,559			25.12
Vested		(14,497	)		21.10
Forfeited		(2,278	)		25.12
Balance at September 30, 2017		67,917			23.98
Granted		56,244			34.38
Vested		(28,717	)		23.78
Forfeited		(10,020	)		29.10
Balance at September 30, 2018		85,424			30.30
Granted		45,049			56.05
Vested		(39,195	)		28.61
Forfeited		(869	)		47.86
Balance at September 30, 2019		90,409		$	43.69

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 2017 - 2019

9,352

46,758

93,516

Income Taxes (Tables)

12 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Schedule of Income Taxes from Continuing Operations

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

	2019			2018			2017
Current provision (benefit):
U.S. Federal	$	1,355		$	(890	)	$	2,125
U.S. State		192			51			(72	)
International		41			41			54
Total current provision (benefit)		1,588			(798	)		2,107
Deferred provision (benefit):
U.S. Federal		(1,505	)		(2,006	)		1,085
U.S. State		(117	)		(271	)		(85	)
International		—			—			—
Total deferred (benefit) provision (1)		(1,622	)		(2,277	)		1,000
Total (benefit) provision	$	(34	)	$	(3,075	)	$	3,107

Schedule of Reconciliation Difference of Income Taxes

The reconciliation of the difference between amounts calculated at the statutory U.S. federal tax rate of 21%, 24.5% and 35% for fiscal 2019, 2018 and 2017, respectively, and the Company’s effective tax rate from continuing operations is as follows (in thousands):

	2019			2018			2017
Amount at statutory U.S. federal income tax rate	$	1,587		$	(1,845	)	$	2,461
Change because of the following items:
State income taxes, net of federal benefit		(452	)		(724	)		(13	)
U.S. Federal and foreign research and development credits		(2,464	)		(1,710	)		(706	)
Foreign and state rate differential		156			371			948
Valuation allowance change		671			960			665
Stock-based compensation (1)		(163	)		(2,063	)		330
Contingent consideration (gain) expense and related foreign currency revaluation		(61	)		142			125
U.S. Federal and state rate change		44			1,582			—
Tax reserve change		770			158			(52	)
Foreign-derived income deduction		(150	)		—			—
Federal manufacturing deduction		—			—			(313	)
Other		28			54			(338	)
Income tax provision	$	(34	)	$	(3,075	)	$	3,107

Schedule of Deferred Income Taxes

	2019			2018
Depreciable assets	$	(905	)	$	(1,019	)
Deferred revenue		1,554			—
Accruals and reserves		585			1,308
Stock-based compensation		2,213			1,798
Impaired strategic investments		1,666			1,687
NOL carryforwards		3,308			4,637
U.S. Federal and state R&D credits		2,394			1,896
Other		689			538
Valuation allowance		(5,328	)		(4,541	)
Total deferred tax assets	$	6,176		$	6,304

Summary of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands):

	2019			2018			2017
Beginning of fiscal year	$	1,559		$	1,481		$	1,508
Increases in tax positions for prior years		278			61			8
Decreases in tax positions for prior years		(2	)		—			(35	)
Increases in tax positions for current year		735			735			216
Settlements with taxing authorities		—			(613	)		—
Lapse of the statute of limitations		(247	)		(105	)		(216	)
End of fiscal year	$	2,323		$	1,559		$	1,481

Commitments and Contingencies (Tables)

12 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Commitments And Contingencies Disclosure [Abstract]

Summary of Annual Commitments Pursuant to Operating Lease Agreements

Annual commitments pursuant to operating lease agreements in place as of September 30, 2019 are as follows (in thousands):


2019	$	493
2020		538
2021		536
2022		547
2023		558
Thereafter		2,092
Total minimum lease payments	$	4,765

Reportable Segment Information (Tables)

12 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Segment Revenue, Operating Income and Depreciation and Amortization

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

	2019			2018			2017
Revenue:
Medical Device	$	78,353		$	60,513		$	53,983
In Vitro Diagnostics		21,724			20,823			19,129
Total revenue	$	100,077		$	81,336		$	73,112

Operating income (loss):
Medical Device	$	4,794		$	(8,478	)	$	6,902
In Vitro Diagnostics		10,620			8,619			8,293
Total segment operating income		15,414			141			15,195
Corporate		(8,945	)		(8,940	)		(8,092	)
Total operating income (loss)	$	6,469		$	(8,799	)	$	7,103

Depreciation and amortization:
Medical Device	$	5,811		$	5,376		$	4,453
In Vitro Diagnostics		464			394			412
Corporate		1,037			661			690
Total depreciation and amortization	$	7,312		$	6,431		$	5,555

Revenue from Major Customers

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

	2019			2018			2017
Abbott		19	%		11	%	N/A
Medtronic		14	%		16	%		18	%

Geographic Revenue and Long-lived Assets

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

	2019			2018			2017
Domestic		81	%		79	%		77	%
Foreign		19	%		21	%		23	%

Long-lived assets, including property and equipment and intangible assets net of accumulated depreciation and amortization, respectively, by country were as follows as of September 30:

	2019		2018
U.S.	$	24,450	$	26,652
Ireland		19,524		21,174

Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Sep. 30, 2019

Quarterly Financial Information Disclosure [Abstract]

Summary of Unaudited Quarterly Results

The following is a summary of the unaudited quarterly results for the years ended September 30, 2019 and 2018 (in thousands, except per share data).

	First Quarter			Second Quarter		Third Quarter			Fourth Quarter
Fiscal 2019
Total revenue	$	22,241		$	22,676	$	24,344		$	30,816
Operating income		712			865		1,017			3,875
Net income		1,310			1,262		1,466			3,554
Basic net income per share (1):		0.10			0.09		0.11			0.27
Diluted net income per share (1):		0.09			0.09		0.11			0.26

Fiscal 2018
Total revenue	$	17,013		$	19,058	$	22,227		$	23,038
Operating (loss) income		(633	)		525		(6,250	)		(2,441	)
Net (loss) income		(1,556	)		1,534		(2,682	)		(1,753	)
Basic net (loss) income per share (1):		(0.12	)		0.12		(0.20	)		(0.13	)
Diluted net (loss) income per share (1):		(0.12	)		0.11		(0.20	)		(0.13	)

(1)

Schedule of Valuation and Qualifying Accounts - Valuation and Qualifying Accounts (Detail) - Allowance for doubtful accounts [Member] - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Valuation And Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	$ 147	$ 230	$ 19
Additions Charged (Credited) to Expenses	188	64	222
Deductions From Reserves	135	147	11
Balance at End of Period	$ 200	$ 147	$ 230

Summary of Significant Accounting Policies and Select Balance Sheet Information - Additional Information (Detail) - USD ($) shares in Millions	3 Months Ended								9 Months Ended	12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2013	Sep. 30, 2006	Oct. 01, 2019
Summary Of Significant Accounting Policies [Line Items]
Net unrealized loss reclassified out of accumulated other comprehensive income (loss) with a corresponding adjustment to other income (loss)										$ 0	$ 0	$ 0
Held-to-maturity debt securities	$ 0				$ 0				$ 0	0	0
Realized gains or losses on sales of available-for-sale securities										0	0	0
Depreciation expense										4,700,000	3,700,000	3,000,000
Amortization expense									2,700,000	2,600,000		2,600,000
Impairment loss											0
Other impairment losses										0		0
Goodwill impairment charges										0	0	0
Goodwill	26,171,000				27,032,000				27,032,000	26,171,000	27,032,000	27,282,000
Goodwill subject to revaluation due to fluctuations in exchange rates	13,400,000									13,400,000
Impairment charges relating to long-lived assets										$ 0	$ 0	$ 0
Sales-based and minimum royalties due period										45 days
Weighted average diluted shares outstanding excluded outstanding stock options										0.2	1.0	0.2
Revenue	30,816,000	$ 24,344,000	$ 22,676,000	$ 22,241,000	23,038,000	$ 22,227,000	$ 19,058,000	$ 17,013,000		$ 100,077,000	$ 81,336,000	$ 73,112,000
Income tax benefit										(34,000)	$ (3,075,000)	$ 3,107,000
Deferred rent liability	1,200,000									1,200,000
ASC Topic 842 [Member] \| Scenario Forecast [Member]
Summary Of Significant Accounting Policies [Line Items]
Right of use asset															$ 1,700,000
Lease obligation liability															$ 2,900,000
Impact of Adoption [Member] \| Adoption of ASC Topic 606 [Member]
Summary Of Significant Accounting Policies [Line Items]
Revenue										$ 1,300,000
Type of Revenue [Extensible List]										us-gaap:RoyaltyMember
Customer Concentration Risk [Member] \| Revenue [Member] \| Abbott [Member]
Summary Of Significant Accounting Policies [Line Items]
Percentage of revenue										19.00%	11.00%
Customer Concentration Risk [Member] \| Revenue [Member] \| Medtronic [Member]
Summary Of Significant Accounting Policies [Line Items]
Percentage of revenue										14.00%	16.00%	18.00%
SurVeil DCB [Member] \| Product Concentration Risk \| Revenue [Member] \| Abbott [Member]
Summary Of Significant Accounting Policies [Line Items]
Percentage of revenue										13.00%	5.00%	0.00%
Abbott [Member]
Summary Of Significant Accounting Policies [Line Items]
Upfront fee received										$ 25,000,000	$ 25,000,000
Collaborative arrangement milestone payment received										10,000,000
Abbott [Member] \| TRANSCEND Clinical Trial [Member]
Summary Of Significant Accounting Policies [Line Items]
Collaborative arrangement milestone payment received										$ 10,000,000
Abbott [Member] \| SurVeil DCB [Member]
Summary Of Significant Accounting Policies [Line Items]
Clinical study completion period										6 years
IDA [Member]
Summary Of Significant Accounting Policies [Line Items]
Reimbursement recorded as reduction to R&D expense										$ 700,000	800,000	$ 800,000
Research and development [Member] \| In-Process Research and Development [Member]
Summary Of Significant Accounting Policies [Line Items]
Impairment loss										300,000		300,000
Selling, General and Administrative Expenses [Member] \| In-Process Research and Development [Member]
Summary Of Significant Accounting Policies [Line Items]
Impairment loss												100,000
ViaCyte, Inc. [Member]
Summary Of Significant Accounting Policies [Line Items]
Equity method investment					5,300,000				5,300,000		5,300,000
Impairment loss on investment													$ 100,000	$ 4,700,000
Cost method of investment					$ 500,000				$ 500,000		500,000
Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Revenue recognized from activity with companies in which it had strategic investment										$ 100,000	$ 100,000	$ 100,000
Product sales payment terms										45 days
Payment period set for R&D services										45 days
Maximum [Member] \| Impact of Adoption [Member] \| Adoption of ASC Topic 606 [Member]
Summary Of Significant Accounting Policies [Line Items]
Income tax benefit										$ 300,000
Maximum [Member] \| Customer Concentration Risk [Member] \| Revenue [Member] \| Medtronic [Member]
Summary Of Significant Accounting Policies [Line Items]
Percentage of revenue										10.00%
Maximum [Member] \| Product Concentration Risk \| Revenue [Member] \| Medtronic [Member]
Summary Of Significant Accounting Policies [Line Items]
Percentage of revenue										3.00%
Maximum [Member] \| Abbott [Member]
Summary Of Significant Accounting Policies [Line Items]
Collaborative arrangement additional potential milestone payments receivable	$ 57,000,000									$ 57,000,000
Maximum [Member] \| ViaCyte, Inc. [Member]
Summary Of Significant Accounting Policies [Line Items]
Company's ownership percentage	1.00%									1.00%
Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Product sales payment terms										30 days
Payment period set for R&D services										30 days
Leasehold Improvements [Member]
Summary Of Significant Accounting Policies [Line Items]
Amortization period										Leasehold improvements are amortized over the shorter of the term of the lease or the estimated useful life of the asset.

Summary of Significant Accounting Policies and Select Balance Sheet Information - Amortized Cost, Unrealized Holding Gains and (Losses) and Fair Value of Available-for-sale Securities (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	$ 24,918	$ 41,403
Unrealized Gains	13
Unrealized Losses		(51)
Fair Value	24,931	41,352
Commercial paper and corporate bonds [Member]
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	24,918	41,403
Unrealized Gains	13
Unrealized Losses		(51)
Fair Value	$ 24,931	$ 41,352

Summary of Significant Accounting Policies and Select Balance Sheet Information - Components of Inventories (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 2,034	$ 1,890
Work in-process	892	780
Finished products	1,575	1,346
Total	$ 4,501	$ 4,016

Summary of Significant Accounting Policies and Select Balance Sheet Information - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Property, Plant and Equipment [Line Items]
Less accumulated depreciation	$ (37,989)	$ (33,512)
Property and equipment, net	29,748	30,143
Land [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	4,415	4,420
Laboratory Fixtures and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	$ 25,467	22,024
Laboratory Fixtures and Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life	3 years
Laboratory Fixtures and Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life	10 years
Building and Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	$ 24,513	21,717
Building and Improvements [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life	3 years
Building and Improvements [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life	20 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life	10 years
Property and Equipment, Gross	$ 4,836	4,836
Office Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	$ 6,476	5,824
Office Furniture and Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life	3 years
Office Furniture and Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life	10 years
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	$ 2,030	$ 4,834

Summary of Significant Accounting Policies and Select Balance Sheet Information - Summary of Other Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Schedule of Investments [Line Items]
Other assets, net	$ 2,124	$ 1,446
ViaCyte, Inc. [Member]
Schedule of Investments [Line Items]
Other assets, net	479	479
Other Noncurrent Assets [Member]
Schedule of Investments [Line Items]
Other assets, net	$ 1,645	$ 967

Summary of Significant Accounting Policies and Select Balance Sheet Information - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Intangible Assets [Line Items]
Definite-lived intangible assets, Accumulated Amortization	$ (15,769)	$ (13,457)
Intangible assets, Gross Carrying Amount	29,995	31,140
Intangible assets, Net	$ 14,226	$ 17,683
Customer Lists and Relationships [Member]
Intangible Assets [Line Items]
Definite-lived intangible assets, Weighted Average Original Life (Years)	8 years 10 months 24 days	8 years 10 months 24 days
Definite-lived intangible assets, Gross Carrying Amount	$ 17,374	$ 18,086
Definite-lived intangible assets, Accumulated Amortization	(10,661)	(9,377)
Definite-lived intangible assets, Net	$ 6,713	$ 8,709
Developed Technology [Member]
Intangible Assets [Line Items]
Definite-lived intangible assets, Weighted Average Original Life (Years)	11 years 6 months	11 years 6 months
Definite-lived intangible assets, Gross Carrying Amount	$ 9,490	$ 9,656
Definite-lived intangible assets, Accumulated Amortization	(3,196)	(2,361)
Definite-lived intangible assets, Net	$ 6,294	$ 7,295
Non-compete [Member]
Intangible Assets [Line Items]
Definite-lived intangible assets, Weighted Average Original Life (Years)	5 years	5 years
Definite-lived intangible assets, Gross Carrying Amount	$ 230	$ 230
Definite-lived intangible assets, Accumulated Amortization	(196)	(150)
Definite-lived intangible assets, Net	$ 34	$ 80
Patents and Other [Member]
Intangible Assets [Line Items]
Definite-lived intangible assets, Weighted Average Original Life (Years)	16 years 6 months	16 years 6 months
Definite-lived intangible assets, Gross Carrying Amount	$ 2,321	$ 2,321
Definite-lived intangible assets, Accumulated Amortization	(1,716)	(1,569)
Definite-lived intangible assets, Net	605	752
Definite-Lived Intangible Assets [Member]
Intangible Assets [Line Items]
Definite-lived intangible assets, Gross Carrying Amount	29,415	30,293
Definite-lived intangible assets, Accumulated Amortization	(15,769)	(13,457)
Definite-lived intangible assets, Net	13,646	16,836
In-Process Research and Development [Member]
Intangible Assets [Line Items]
Indefinite-lived intangible assets, Net		267
Trademarks and Trade Names [Member]
Intangible Assets [Line Items]
Indefinite-lived intangible assets, Net	$ 580	$ 580

Summary of Significant Accounting Policies and Select Balance Sheet Information - Estimated Amortization Expense (Detail) $ in Thousands	Sep. 30, 2019 USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
2020	$ 2,414
2021	2,275
2022	2,235
2023	1,629
2024	$ 1,584

Summary of Significant Accounting Policies and Select Balance Sheet Information - Schedule Of Carrying Amount of Goodwill by Segment (Detail) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Goodwill [Line Items]
Beginning Balance	$ 27,032	$ 27,282
Foreign currency translation adjustment	(861)	(250)
Ending Balance	26,171	27,032
In Vitro Diagnostics [Member]
Goodwill [Line Items]
Beginning Balance	8,010	8,010
Ending Balance	8,010	8,010
Medical Device [Member]
Goodwill [Line Items]
Beginning Balance	19,022	19,272
Foreign currency translation adjustment	(861)	(250)
Ending Balance	$ 18,161	$ 19,022

Summary of Significant Accounting Policies and Select Balance Sheet Information - Schedule of Other Accrued Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Accrued Liabilities Current [Abstract]
Accrued professional fees	$ 434	$ 311
Accrued clinical study expense	2,163	2,839
Accrued purchases	679	533
Acquisition of in process research and development	989
Deferred rent	130	121
Other	395	262
Customer claim		1,000
Construction in progress		1,199
Total	$ 4,790	$ 6,265

Summary of Significant Accounting Policies and Select Balance Sheet Information - Additional Information (Detail 1) - Abbott [Member] - R&D and Clinical Activities [Member] - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-01-01 $ in Millions	Sep. 30, 2019 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Estimated revenue to be recognized in future	$ 17.1
Expected period to recognize the remaining revenue	6 years
TRANSCEND Clinical Trial [Member]
Summary Of Significant Accounting Policies [Line Items]
Revenue remaining performance obligation percentage	75.00%
Revenue remaining performance obligation expected timing of satisfaction year	2021
Capitalized contract cost amortization period	4 years
Revenue remaining performance obligation amortization percentage	25.00%

Summary of Significant Accounting Policies and Select Balance Sheet Information - Denominator for Computation of Basic and Diluted Income Per Share (Detail) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Earnings Per Share [Abstract]
Net income (loss) available to common shareholders	$ 7,592	$ (4,457)	$ 3,926
Basic weighted average shares outstanding	13,389	13,157	13,153
Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units and performance shares	390		236
Diluted weighted average shares outstanding	13,779	13,157	13,389

Summary of Significant Accounting Policies and Select Balance Sheet Information - Impact of Adoption of ASC Topic 606 on Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Oct. 01, 2018	Sep. 30, 2018
Assets
Contract assets - royalties and license fees	$ 8,210
Deferred income taxes	6,176		$ 6,304
Income tax receivable	558		1,152
Liabilities and Stockholders' Equity
Deferred revenue, current portion			9,646
Deferred revenue, less current portion			11,247
Retained earnings	110,705		$ 97,615
Adoption of ASC Topic 606 [Member]
Assets
Contract assets - royalties and license fees		$ 6,904
Deferred income taxes		5,089
Income tax receivable		762
Liabilities and Stockholders' Equity
Deferred revenue, current portion		9,628
Deferred revenue, less current portion		11,066
Retained earnings		103,113
Adjustments \| Adoption of ASC Topic 606 [Member]
Assets
Contract assets - royalties and license fees		6,904
Deferred income taxes	1,200	(1,215)
Income tax receivable	$ 400	(390)
Liabilities and Stockholders' Equity
Deferred revenue, current portion		(18)
Deferred revenue, less current portion		(181)
Retained earnings		$ 5,498

Revenue - Summary of Revenues Disaggregated by Product Classification and Operating Segment (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Disaggregation Of Revenue [Line Items]
Total revenue	$ 30,816	$ 24,344	$ 22,676	$ 22,241	$ 23,038	$ 22,227	$ 19,058	$ 17,013	$ 100,077	$ 81,336	$ 73,112
Product Sales [Member]
Disaggregation Of Revenue [Line Items]
Total revenue									40,219	37,953	32,790
Royalties [Member]
Disaggregation Of Revenue [Line Items]
Total revenue		$ 1,000							48,458	35,424	31,787
Research, Development and Other [Member]
Disaggregation Of Revenue [Line Items]
Total revenue									11,400	7,959	8,535
Operating Segments [Member]
Disaggregation Of Revenue [Line Items]
Total revenue									100,077	81,336	73,112
Operating Segments [Member] \| Medical Device [Member]
Disaggregation Of Revenue [Line Items]
Total revenue									78,353	60,513	53,983
Operating Segments [Member] \| Medical Device [Member] \| Product Sales [Member]
Disaggregation Of Revenue [Line Items]
Total revenue									18,617	17,200	13,735
Operating Segments [Member] \| Medical Device [Member] \| Royalties [Member]
Disaggregation Of Revenue [Line Items]
Total revenue									34,781	30,606	30,264
Operating Segments [Member] \| Medical Device [Member] \| Research, Development and Other [Member]
Disaggregation Of Revenue [Line Items]
Total revenue									11,277	7,889	8,528
Operating Segments [Member] \| Medical Device [Member] \| License Fees [Member]
Disaggregation Of Revenue [Line Items]
Total revenue									13,678	4,818	1,456
Operating Segments [Member] \| In Vitro Diagnostics [Member]
Disaggregation Of Revenue [Line Items]
Total revenue									21,724	20,823	19,129
Operating Segments [Member] \| In Vitro Diagnostics [Member] \| Product Sales [Member]
Disaggregation Of Revenue [Line Items]
Total revenue									21,390	20,789	19,055
Operating Segments [Member] \| In Vitro Diagnostics [Member] \| Other [Member]
Disaggregation Of Revenue [Line Items]
Total revenue									$ 334	$ 34	$ 74

Collaborative Arrangement - Additional Information (Detail) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Deferred revenue, current portion		$ 9,646,000
Long-term deferred revenue		11,247,000
Abbott [Member]
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront fee received	$ 25,000,000	25,000,000
Collaborative arrangement milestone payment received	10,000,000
Collaboration revenue recognized	13,500,000	$ 4,400,000
Proceeds from collaborative arrangement	35,000,000
Collaborative arrangement revenue recognized from milestone	5,100,000
Collaborative arrangement revenue recognized from milestone related to proportional performance	1,700,000
Collaboration revenue unrecognized	35,000,000
Deferred revenue, current portion	5,500,000
Long-term deferred revenue	11,600,000
Abbott [Member] \| Maximum [Member]
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Collaborative arrangement additional potential milestone payments receivable	$ 57,000,000

Fair Value Measurements - Additional Information (Detail) € in Millions	12 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2018 EUR (€)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Contingent consideration	$ 3,200,000	$ 11,041,000
Contingent consideration liability, noncurrent		3,425,000
Level 3 assets	0	0
Transfers in or out Level 3, Assets	0	0
Transfers in or out Level 3, Liabilities	0	$ 0
Minimum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Percentage of Probability Achievement of Contingent Consideration payment.		5.00%
Maximum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Percentage of Probability Achievement of Contingent Consideration payment.		95.00%
Contingent Consideration [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Foreign currency gains (losses)	$ 100,000	$ 100,000	$ (500,000)
Contingent Consideration [Member] \| Revenue Based Milestones [Member] \| Discount Rate [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value measurement inputs	20.5
Contingent Consideration [Member] \| Non Revenue Based Milestones \| Discount Rate [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value measurement inputs		6.0				6.0
Creagh Medical Ltd [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Contingent consideration related to acquisition		$ 11,000,000			$ 11,000,000	€ 9.6
Business combination contingent consideration liability percentage	2.30%
Scenario Forecast [Member] \| NorMedix [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Contingent consideration related to acquisition				$ 3,200,000
Level 3 Liabilities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Contingent consideration	$ 3,200,000
Contingent consideration liability		14,500,000
Contingent consideration liability, noncurrent		$ 3,400,000

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets measured at fair value	$ 49,306	$ 55,351
Liabilities measured at fair value	(3,200)	(14,466)
Available-for-sale securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets measured at fair value	24,931	41,352
Cash equivalents [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets measured at fair value	24,375	13,999
Contingent consideration [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Liabilities measured at fair value	(3,200)	(14,466)
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets measured at fair value	49,306	55,351
Significant Other Observable Inputs (Level 2) [Member] \| Available-for-sale securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets measured at fair value	24,931	41,352
Significant Other Observable Inputs (Level 2) [Member] \| Cash equivalents [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets measured at fair value	24,375	13,999
Level 3 Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Liabilities measured at fair value	(3,200)	(14,466)
Level 3 Liabilities [Member] \| Contingent consideration [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Liabilities measured at fair value	$ (3,200)	$ (14,466)

Fair Value Measurements - Schedule of Contingent Consideration Liability (Detail) - Contingent Consideration [Member] - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Contingent consideration liability, beginning balance	$ 14,466	$ 14,864
Fair value adjustments	(415)	288
Settlements	(10,979)	(925)
Interest accretion	254	387
Foreign currency translation	(126)	(148)
Contingent consideration liability, ending balance	$ 3,200	$ 14,466

Stockholders' Equity - Additional Information (Detail) - USD ($)	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2019	Nov. 06, 2015	Nov. 05, 2014
Stockholders Equity [Line Items]
Payments for repurchase of common stock	$ 4,702,000
Common stock repurchased, Shares	196,190
Stock repurchased average price per share	$ 23.97
Remaining amount available for repurchases of shares		$ 25,300,000
Accelerated Share Repurchase Program [Member]
Stockholders Equity [Line Items]
Maximum payments for repurchase of common stock			$ 20,000,000	$ 30,000,000

Stock-Based Compensation Plans - Stock-based Compensation Expenses (Detail) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 5,077	$ 4,807	$ 3,472
Product costs [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	135	69	90
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	876	801	510
Selling, general and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 4,066	$ 3,937	$ 2,872

Stock-Based Compensation Plans - Additional Information (Detail) - USD ($)	1 Months Ended	12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Stock-Based Compensation Activity [Line Items]
Unrecognized compensation costs related to non-vested awards		$ 6,900,000
Weighted average period for recognition of compensation costs related to non-vested awards		2 years 2 months 12 days
Weighted average per share fair value of stock options		$ 17.89	$ 10.91	$ 7.63
Dividend rates		0.00%	0.00%	0.00%
Stock option exercisable on a pro-rata basis		3 years 6 months
Stock-based compensation		$ 5,077,000	$ 4,807,000	$ 3,472,000
Aggregate intrinsic value of the option shares outstanding		13,800,000
Aggregate intrinsic value of the option shares exercisable		$ 9,000,000
Remaining contractual life of options outstanding		4 years 4 months 24 days
Total pre-tax intrinsic value of options exercised		$ 300,000	12,100,000	100,000
Fiscal 2015 (2015 - 2017) [Member]
Stock-Based Compensation Activity [Line Items]
Performance period start year		2015
Performance period end year		2017
Fiscal 2016 (2016 - 2018) [Member]
Stock-Based Compensation Activity [Line Items]
Performance period start year		2016
Performance period end year		2018
Fiscal 2017 (2016 - 2018) [Member]
Stock-Based Compensation Activity [Line Items]
Performance period start year		2016
Performance period end year		2018
Fiscal 2017 (2017 - 2019) [Member] \| Scenario Forecast [Member]
Stock-Based Compensation Activity [Line Items]
Maximum estimated shares earned	47,000
Nonqualified Stock Options [Member]
Stock-Based Compensation Activity [Line Items]
Stock-based compensation		$ 2,200,000	1,600,000	1,300,000
Nonqualified Stock Options [Member] \| Employee [Member]
Stock-Based Compensation Activity [Line Items]
Vesting period		4 years
Nonqualified Stock Options [Member] \| Minimum [Member] \| Board of Director [Member]
Stock-Based Compensation Activity [Line Items]
Stock option expiration term upon expiration of employment or service		7 years
Nonqualified Stock Options [Member] \| Maximum [Member]
Stock-Based Compensation Activity [Line Items]
Stock option exercisable on a pro-rata basis		1 year
Restricted Stock Awards [Member]
Stock-Based Compensation Activity [Line Items]
Vesting period		3 years
Restricted stock expense		$ 1,700,000	$ 1,000,000	$ 500,000
Number of stock units awarded		45,049	56,244	51,559
Number of stock units forfeited		869	10,020	2,278
Number of stock units outstanding		90,409	85,424	67,917	33,133
Performance Shares [Member]
Stock-Based Compensation Activity [Line Items]
Stock-based compensation		$ 400,000	$ 1,500,000	$ 1,200,000
Performance shares forfeited			12,217
Performance Shares [Member] \| Fiscal 2017 (2017 - 2019) [Member]
Stock-Based Compensation Activity [Line Items]
Fair value of performance shares for grants awarded				1,200,000
1999 Employee Stock Purchase Plan [Member]
Stock-Based Compensation Activity [Line Items]
Annual compensation withheld, maximum limit		$ 25,000
1999 Employee Stock Purchase Plan [Member] \| Maximum [Member]
Stock-Based Compensation Activity [Line Items]
Common stock authorized, shares		600,000
Stock-based compensation		$ 100,000	$ 100,000	100,000
Annual compensation withheld		10.00%
Employee contributions		$ 100,000	100,000
Vesting Anniversary [Member] \| Nonqualified Stock Options [Member] \| Employee [Member]
Stock-Based Compensation Activity [Line Items]
Vesting percentage		25.00%
Vesting Anniversary [Member] \| Restricted Stock Awards [Member]
Stock-Based Compensation Activity [Line Items]
Vesting percentage		33.00%
Performance Level [Member] \| Minimum [Member]
Stock-Based Compensation Activity [Line Items]
Performance share awards, estimated vesting percentage		20.00%
Performance Level [Member] \| Maximum [Member]
Stock-Based Compensation Activity [Line Items]
Performance share awards, estimated vesting percentage		200.00%
2019 Equity Incentive Plan [Member]
Stock-Based Compensation Activity [Line Items]
Common stock authorized, shares		1,100,000
Number of shares available for future awards		1,084,492
2019 and 2009 Equity Incentive Plan [Member] \| Restricted Stock Units (RSUs) [Member]
Stock-Based Compensation Activity [Line Items]
Stock-based compensation		$ 600,000	$ 500,000	300,000
Number of stock units awarded		11,871	21,535
Number of stock units forfeited		88	528
Number of stock units outstanding		62,242	60,182
2009 Equity Incentive Plan [Member] \| Deferred Stock Units [Member] \| Director [Member]
Stock-Based Compensation Activity [Line Items]
Stock-based compensation		$ 100,000	$ 100,000	$ 100,000
Number of stock units outstanding		29,729	26,991
Number of stock units outstanding estimated fair value		$ 1,400,000	$ 2,000,000

Stock-Based Compensation Plans - Assumptions Used in Stock Option Plans (Detail)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Risk-free interest rates	2.75%	2.18%	1.74%
Expected life	4 years 6 months	4 years 9 months 18 days	4 years 7 months 6 days
Expected volatility	34.00%	33.00%	34.00%
Dividend yield	0.00%	0.00%	0.00%

Stock-Based Compensation Plans - Schedule of Stock Option Activity (Detail) - $ / shares	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of Shares Outstanding, Beginning balance	710,546	1,001,905	827,325
Number of Shares, Granted	179,669	269,961	229,039
Number of Shares, Exercised	(12,604)	(450,495)	(6,819)
Number of Shares, Forfeited and expired	(6,435)	(110,825)	(47,640)
Number of Shares Outstanding, Ending balance	871,176	710,546	1,001,905
Number of Shares, Exercisable	418,873
Weighted Average Exercise Price, Beginning Balance	$ 26.28	$ 21.54	$ 21.30
Weighted Average Exercise Price, Granted	55.09	34.08	24.08
Weighted Average Exercise Price, Exercised	22.03	19.46	13.89
Weighted Average Exercise Price, Forfeited and expired	42.28	30.18	30.65
Weighted Average Exercise Price, Ending balance	32.18	$ 26.28	$ 21.54
Weighted Average Exercise Price, Exercisable	$ 24.71

Stock-Based Compensation Plans - Schedule of Restricted Stock Awards Activity (Detail) - Restricted Stock [Member] - $ / shares	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Beginning balance	85,424	67,917	33,133
Number of Shares, Granted	45,049	56,244	51,559
Number of Shares, Vested	(39,195)	(28,717)	(14,497)
Number of Shares, Forfeited	(869)	(10,020)	(2,278)
Number of Shares, Ending balance	90,409	85,424	67,917
Weighted Average Grant Price, Beginning balance	$ 30.30	$ 23.98	$ 20.96
Weighted Average Grant Price, Granted	56.05	34.38	25.12
Weighted Average Grant Price, Vested	28.61	23.78	21.10
Weighted Average Grant Price, Forfeited	47.86	29.10	25.12
Weighted Average Grant Price, Ending balance	$ 43.69	$ 30.30	$ 23.98

Stock-Based Compensation Plans - Schedule of Fair Value at the Date of Grant (Detail) - Fiscal 2017 (2017 - 2019) [Member]	12 Months Ended
	Sep. 30, 2019 shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Minimum Shares	9,352
Target Shares	46,758
Maximum Shares	93,516

Income Taxes - Schedule of Income Taxes from Continuing Operations (Detail) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Current provision (benefit):
U.S. Federal	$ 1,355	$ (890)	$ 2,125
U.S. State	192	51	(72)
International	41	41	54
Total current provision (benefit)	1,588	(798)	2,107
Deferred provision (benefit):
U.S. Federal	(1,505)	(2,006)	1,085
U.S. State	(117)	(271)	(85)
Total deferred (benefit) provision	(1,622)	(2,277)	1,000
Income tax (benefit) provision	$ (34)	$ (3,075)	$ 3,107

Income Taxes - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2017	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017	Oct. 01, 2018
Income Tax Disclosure [Line Items]
Deferred income taxes			$ 6,176,000	$ 6,304,000
Income tax receivable			$ 558,000	$ 1,152,000
U.S. federal statutory tax rate	21.00%	35.00%	21.00%	24.50%	35.00%
Discrete tax expense		$ 1,200,000		$ 1,600,000
Excess tax benefits (shortfalls) related to stock based compensation expense			$ 500,000	2,000,000	$ (200,000)
Deferred tax asset valuation allowance			$ 5,328,000	4,541,000
Net operating loss carryforwards, remaining period			9 years
Unrecognized tax benefits excluding interest and penalties that would impact effective tax rate			$ 2,100,000	1,400,000	1,200,000
Liability for unrecognized tax benefits to change significantly in the next 12 months			500,000	400,000	$ 500,000
Undistributed earnings in foreign subsidiaries			0	$ 0
Federal and State [Member] \| 2034 [Member]
Income Tax Disclosure [Line Items]
Net operating loss carryforwards			$ 200,000
Net operating loss carryforwards, beginning of expiration year			2034
Federal and State [Member] \| 2022 [Member]
Income Tax Disclosure [Line Items]
Net operating loss carryforwards			$ 200,000
Net operating loss carryforwards, beginning of expiration year			2022
Ireland and Luxembourg [Member] \| Creagh Medical Ltd [Member]
Income Tax Disclosure [Line Items]
Net operating loss carryforwards			$ 3,000,000
R&D Credit Carryforwards [Member] \| Federal and State [Member] \| 2029 [Member]
Income Tax Disclosure [Line Items]
Tax credit carryforwards			$ 2,400,000
Tax credit carryforward, beginning of expiration year			2029
Adoption of ASC Topic 606 [Member]
Income Tax Disclosure [Line Items]
Deferred income taxes						$ 5,089,000
Income tax receivable						762,000
Impact of Adoption [Member] \| Adoption of ASC Topic 606 [Member]
Income Tax Disclosure [Line Items]
Deferred income taxes			$ 1,200,000			(1,215,000)
Income tax receivable			$ 400,000			$ (390,000)

Income Taxes - Schedule of Reconciliation Difference of Income Taxes (Detail) - USD ($)
$ in Thousands

12 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Amount at statutory U.S. federal income tax rate

$ 1,587

$ (1,845)

$ 2,461

Change because of the following items:

State income taxes, net of federal benefit

(452)

(724)

(13)

U.S. Federal and foreign research and development credits

(2,464)

(1,710)

(706)

Foreign and state rate differential

156

371

948

Valuation allowance change

671

960

665

Stock-based compensation

^[1]

(163)

(2,063)

330

Contingent consideration (gain) expense and related foreign currency revaluation

(61)

142

125

U.S. Federal and state rate change

1,582

Tax reserve change

770

158

(52)

Foreign-derived income deduction

(150)

Federal manufacturing deduction

(313)

Other

(338)

Income tax (benefit) provision

$ (34)

$ (3,075)

$ 3,107

[1]	Includes non-deductible stock-based compensation.

Income Taxes - Schedule of Deferred Income Taxes (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Depreciable assets	$ (905)	$ (1,019)
Deferred revenue	1,554
Accruals and reserves	585	1,308
Stock-based compensation	2,213	1,798
Impaired strategic investments	1,666	1,687
NOL carryforwards	3,308	4,637
U.S. Federal and state R&D credits	2,394	1,896
Other	689	538
Valuation allowance	(5,328)	(4,541)
Total deferred tax assets	$ 6,176	$ 6,304

Income Taxes - Summary of Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Beginning of fiscal year	$ 1,559	$ 1,481	$ 1,508
Increases in tax positions for prior years	278	61	8
Decreases in tax positions for prior years	(2)		(35)
Increases in tax positions for current year	735	735	216
Settlements with taxing authorities		(613)
Lapse of the statute of limitations	(247)	(105)	(216)
End of fiscal year	$ 2,323	$ 1,559	$ 1,481

Defined Contribution Plan - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Defined Contribution Plan Disclosure [Line Items]
Contribution expense	$ 0.9	$ 0.7	$ 0.7
U.S. [Member] \| 401 (K) Retirement and Savings Plan [Member]
Defined Contribution Plan Disclosure [Line Items]
Percentage of employee contributions	50.00%
Percentage of employee eligible compensation	6.00%
Ireland [Member] \| Defined Contribution PRSA Plan [Member]
Defined Contribution Plan Disclosure [Line Items]
Percentage of employee contributions	8.00%
Percentage of employee eligible compensation	6.00%

Commitments and Contingencies - Additional Information (Detail)	1 Months Ended		3 Months Ended		12 Months Ended				49 Months Ended
	Jul. 31, 2019 USD ($)	Nov. 30, 2017 USD ($) ft²	Sep. 30, 2019 USD ($) ft² € / $	Jun. 30, 2018 USD ($)	Sep. 30, 2019 USD ($) ft² € / $ shares	Sep. 30, 2019 EUR (€) shares	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Dec. 31, 2023 USD ($)
Commitments And Contingencies [Line Items]
Settlement of claim					$ 400,000
Additional shares of common stock to stockholders \| shares					480,059	480,059
License agreement commencement date					2006-03	2006-03
Exchange rate relating to license payment \| € / $			1.0916		1.0916
Future minimum payments associated with license			$ 1,700,000		$ 1,700,000
Rent expense related to operating leases					500,000		$ 500,000	$ 100,000
Acquisition charge for in-process of research and development					890,000		7,888,000
Other long-term liabilities			$ 5,512,000		$ 5,512,000		5,720,000
Eden Prairie Minnesota [Member]
Commitments And Contingencies [Line Items]
Square feet of office and R&D facility \| ft²		36,000	13,000		13,000
Contractual obligations		$ 5,200,000
Operating lease agreement term		10 years
Operating lease agreement commencement date		2018-05
CRO [Member]
Commitments And Contingencies [Line Items]
Contractual obligation to be paid			$ 11,800,000		$ 11,800,000
Embolitech LLC [Member]
Commitments And Contingencies [Line Items]
Contingent payments upon achievement of regulatory milestones					$ 2,000,000
Installment payment beginning period					2020-01	2020-01
Installment payment ending period					2023-12	2023-12
Minimum [Member] \| CRO [Member]
Commitments And Contingencies [Line Items]
Contractual obligation due in next several years			35,000,000		$ 35,000,000
Maximum [Member] \| CRO [Member]
Commitments And Contingencies [Line Items]
Contractual obligations			26,000,000		26,000,000
Contractual obligation due in next several years			40,000,000		40,000,000
License [Member]
Commitments And Contingencies [Line Items]
Annual minimum payments for licenses					$ 218,000	€ 200,000
Patents [Member]
Commitments And Contingencies [Line Items]
Patent expiry date					2027-09	2027-09
Intellectual Property [Member]
Commitments And Contingencies [Line Items]
Payments to acquire intellectual property assets			900,000
Intellectual Property [Member] \| Medical Device [Member]
Commitments And Contingencies [Line Items]
Payments to acquire intellectual property assets	$ 800,000
Contingent payments upon achievement of regulatory milestones	1,300,000
Contingency period ending year					2022	2022
Estimated additional payment to acquire intellectual property assets	$ 200,000
Acquisition charge for in-process of research and development			900,000
Intellectual Property [Member] \| Embolitech LLC [Member]
Commitments And Contingencies [Line Items]
Payments to acquire intellectual property assets				$ 7,900,000	$ 5,000,000
Contingency period ending year					2033	2033
Acquisition charge for in-process of research and development							7,900,000
Other accrued liabilities noncurrent			1,000,000		$ 1,000,000
Other long-term liabilities			$ 2,100,000		2,100,000
Intellectual Property [Member] \| Embolitech LLC [Member] \| Scenario Forecast [Member]
Commitments And Contingencies [Line Items]
Estimated additional payment to acquire intellectual property assets									$ 3,500,000
Selling, general and administrative [Member]
Commitments And Contingencies [Line Items]
Claim accrual recorded in selling, general and other administrative expenses							1,000,000
Reduction in selling, general and administrative expenses					$ 600,000
Other Accrued Liabilities [Member]
Commitments And Contingencies [Line Items]
Claim accrual recorded in other accrued liabilities							$ 1,000,000

Commitments and Contingencies - Summary of Annual Commitments Pursuant to Operating Lease Agreements (Detail) $ in Thousands	Sep. 30, 2019 USD ($)
Commitments And Contingencies Disclosure [Abstract]
2019	$ 493
2020	538
2021	536
2022	547
2023	558
Thereafter	2,092
Total minimum lease payments	$ 4,765

Reportable Segment Information - Additional Information (Detail)	12 Months Ended
	Sep. 30, 2019 Segment Source
Segment Reporting [Abstract]
Number of operating segments \| Segment	2
Number of primary sources of revenue \| Source	2

Reportable Segment Information - Segment Revenue, Operating Income and Depreciation and Amortization (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Segment Reporting Information [Line Items]
Revenue	$ 30,816	$ 24,344	$ 22,676	$ 22,241	$ 23,038	$ 22,227	$ 19,058	$ 17,013	$ 100,077	$ 81,336	$ 73,112
Operating income (loss)	$ 3,875	$ 1,017	$ 865	$ 712	$ (2,441)	$ (6,250)	$ 525	$ (633)	6,469	(8,799)	7,103
Depreciation and amortization									7,312	6,431	5,555
Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenue									100,077	81,336	73,112
Operating income (loss)									15,414	141	15,195
Operating Segments [Member] \| Medical Device [Member]
Segment Reporting Information [Line Items]
Revenue									78,353	60,513	53,983
Operating income (loss)									4,794	(8,478)	6,902
Depreciation and amortization									5,811	5,376	4,453
Operating Segments [Member] \| In Vitro Diagnostics [Member]
Segment Reporting Information [Line Items]
Revenue									21,724	20,823	19,129
Operating income (loss)									10,620	8,619	8,293
Depreciation and amortization									464	394	412
Corporate [Member]
Segment Reporting Information [Line Items]
Operating income (loss)									(8,945)	(8,940)	(8,092)
Depreciation and amortization									$ 1,037	$ 661	$ 690

Reportable Segment Information - Revenue from Major Customers (Detail) - Revenue [Member] - Customer Concentration Risk [Member]	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Medtronic [Member]
Revenue, Major Customer [Line Items]
Percentage of revenue	14.00%	16.00%	18.00%
Abbott [Member]
Revenue, Major Customer [Line Items]
Percentage of revenue	19.00%	11.00%

Reportable Segment Information - Geographic Revenue and Long-lived Assets (Detail) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
U.S. [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets, including property and equipment and intangible assets net of accumulated depreciation and amortization	$ 24,450	$ 26,652
Ireland [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets, including property and equipment and intangible assets net of accumulated depreciation and amortization	$ 19,524	$ 21,174
Revenue [Member] \| Geographic Concentration Risk [Member] \| Domestic [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Percentage of revenue	81.00%	79.00%	77.00%
Revenue [Member] \| Geographic Concentration Risk [Member] \| Foreign [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Percentage of revenue	19.00%	21.00%	23.00%

Quarterly Financial Data (Unaudited) - Summary of Unaudited Quarterly Results (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Quarterly Financial Information Disclosure [Abstract]
Total revenue	$ 30,816	$ 24,344	$ 22,676	$ 22,241	$ 23,038	$ 22,227	$ 19,058	$ 17,013	$ 100,077	$ 81,336	$ 73,112
Operating (loss) income	3,875	1,017	865	712	(2,441)	(6,250)	525	(633)	6,469	(8,799)	7,103
Net (loss) income	$ 3,554	$ 1,466	$ 1,262	$ 1,310	$ (1,753)	$ (2,682)	$ 1,534	$ (1,556)	$ 7,592	$ (4,457)	$ 3,926
Basic net (loss) income per share	$ 0.27	$ 0.11	$ 0.09	$ 0.10	$ (0.13)	$ (0.20)	$ 0.12	$ (0.12)	$ 0.57	$ (0.34)	$ 0.30
Diluted net (loss) income per share	$ 0.26	$ 0.11	$ 0.09	$ 0.09	$ (0.13)	$ (0.20)	$ 0.11	$ (0.12)	$ 0.55	$ (0.34)	$ 0.29

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=116637232&loc=SL114874131-224263

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1337-109256

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=117327953&loc=d3e4984-109258

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=116634182&loc=SL114868664-224227

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1252-109256

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=116637391&loc=SL114874048-224260

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=117326831&loc=SL5780133-109256

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=117327953&loc=d3e4984-109258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1252-109256

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=116637391&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1337-109256

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=116634182&loc=SL114868664-224227

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=117326831&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=116637232&loc=SL114874131-224263

+ Details

- Definition

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

+ References + Details

Quarterly Financial Data (Unaudited) - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended								9 Months Ended	12 Months Ended
	Aug. 31, 2019	Dec. 31, 2017	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Quarterly Financial Data [Line Items]
Discrete tax expense										$ 1,200			$ 1,600
U.S. federal statutory tax rate		21.00%								35.00%		21.00%	24.50%	35.00%
Total revenue			$ 30,816	$ 24,344	$ 22,676	$ 22,241	$ 23,038	$ 22,227	$ 19,058	$ 17,013		$ 100,077	$ 81,336	$ 73,112
Intellectual Property [Member]
Quarterly Financial Data [Line Items]
Payments to acquire intellectual property assets			900
Embolitech LLC [Member] \| Intellectual Property [Member]
Quarterly Financial Data [Line Items]
Payments to acquire intellectual property assets								$ 7,900				5,000
Abbott [Member] \| Clinical [Member]
Quarterly Financial Data [Line Items]
Recognized Revenue			$ 5,100
Milestone payment received	$ 10,000
Royalties and License Fees [Member]
Quarterly Financial Data [Line Items]
Total revenue				$ 1,000								$ 48,458	$ 35,424	$ 31,787
Royalties and License Fees [Member] \| Abbott [Member]
Quarterly Financial Data [Line Items]
Total revenue											$ 4,400