Operating Segment Information

12 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Operating Segment Information

13. Operating 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 is comprised of surface modification coating technologies to improve access, deliverability, and predictable deployment of medical devices, as well as drug delivery coating technologies to provide site-specific drug delivery from the surface of a medical device, with end markets that include coronary, peripheral, and neuro-vascular, and urology, among others, and (2) the In Vitro Diagnostics unit, which consists of component products and technologies for diagnostic test kits and biomedical research applications, with products that include protein stabilization reagents, substrates, antigens and surface coatings.

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

	2014			2013			2012
Revenue:
Medical Device	$	43,068		$	41,153		$	37,883
In Vitro Diagnostics		14,371			14,979			14,045
Total revenue	$	57,439		$	56,132		$	51,928
Operating income (loss):
Medical Device	$	22,636		$	21,164		$	18,431
In Vitro Diagnostics		3,459			4,222			4,542
Total segment operating income		26,095			25,386			22,973
Corporate		(7,519	)		(6,566	)		(6,631	)
Total operating income from continuing operations	$	18,576		$	18,820		$	16,342
Depreciation and amortization:
Medical Device	$	1,136		$	1,255		$	1,414
In Vitro Diagnostics		850			864			774
Corporate		729			767			741
Total depreciation and amortization	$	2,715		$	2,886		$	2,929

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

Corporate segment results above for fiscal 2014 include increased stock option expense of $0.9 million related to a modification of awards granted to Board members and an award granted to the former Chairman of the Board in connection with his retirement from the Board.

Corporate segment results above for fiscal 2013 include restructuring charges of $0.5 million and recovery of legal fees associated with the SRI litigation of $1.0 million.

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

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:

	2014			2013			2012
Medtronic		19	%		19	%		19	%

The revenue from the customer listed is derived from two primary sources: licensing and product sales.

Geographic Revenue

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

	2014			2013			2012
Domestic		78	%		79	%		79	%
Foreign		22	%		21	%		21	%