Operating Segments

9 Months Ended

Jun. 30, 2012

Operating Segments [Abstract]

Operating Segments

15. Operating Segments

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. On November 17, 2011, the Company completed its sale of SurModics Pharmaceuticals. Accordingly, beginning in the first quarter of fiscal 2012, all results of operations, cash flows, assets and liabilities of SurModics Pharmaceuticals for all periods presented are classified as discontinued operations. Beginning in the first quarter of fiscal 2012, following the sale of SurModics Pharmaceuticals which was previously reported as a separate operating segment, the Company is now organized into two segments, as follows: (1) the Medical Device unit, which is comprised of surface modification coating technologies to improve access, deliverability, and predictable deployment of medical devices, as well as drug delivery coating technologies to provide site-specific drug delivery from the surface of a medical device, with end markets that include coronary, peripheral, and neuro-vascular, and urology, among others, and (2) the In Vitro Diagnostics unit, which consists of component products and technologies for diagnostic test kits and biomedical research applications, with products that include microarray slide technologies, protein stabilization reagents, substrates, and antigens.

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

	Three months ended June 30,						Nine months ended June 30,
	2012			2011			2012			2011
Revenue:
Medical Device	$	10,269		$	9,559		$	27,889		$	29,372
In Vitro Diagnostics		3,690			3,440			10,196			9,483
Total revenue	$	13,959		$	12,999		$	38,085		$	38,855
Operating income (loss):
Medical Device	$	5,173		$	4,574		$	13,226		$	15,035
In Vitro Diagnostics		1,070			1,439			3,246			3,354
Corporate		(1,450	)		(1,756	)		(4,768	)		(5,799	)
Total operating income from continuing operations	$	4,793		$	4,257		$	11,704		$	12,590
Depreciation and amortization:
Medical Device	$	355		$	397		$	1,073		$	1,230
In Vitro Diagnostics		193			200			582			598
Corporate		186			192			559			565
Total depreciation and amortization	$	734		$	789		$	2,214		$	2,393

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

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

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