Operating Segment Information

12 Months Ended

Sep. 30, 2015

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):

	2015			2014			2013
Revenue:
Medical Device	$	45,944		$	43,068		$	41,153
In Vitro Diagnostics		15,954			14,371			14,979
Total revenue	$	61,898		$	57,439		$	56,132
Operating income (loss):
Medical Device	$	21,192		$	22,636		$	21,164
In Vitro Diagnostics		4,484			3,459			4,222
Total segment operating income		25,676			26,095			25,386
Corporate		(6,587	)		(7,519	)		(6,566	)
Total operating income from continuing operations	$	19,089		$	18,576		$	18,820
Depreciation and amortization:
Medical Device	$	1,138		$	1,136		$	1,255
In Vitro Diagnostics		873			850			864
Corporate		794			729			767
Total depreciation and amortization	$	2,805		$	2,715		$	2,886

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 equity awards granted to Board members.

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.

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:

	2015			2014			2013
Medtronic		26	%		19	%		19	%

The revenue from the customer listed is derived from two primary sources: licensing and product sales. The percentage of revenue increased in fiscal 2015 as a result of Medtronic’s merger with Covidien PLC on January 26, 2015.

Geographic Revenue

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

	2015			2014			2013
Domestic		77	%		78	%		79	%
Foreign		23	%		22	%		21	%