Reportable Segment Information

12 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Reportable Segment Information

12.  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 is comprised of surface modification coating technologies to improve access, deliverability, and predictable deployment of medical devices; international cardiology and peripheral balloon design, development and manufacturing; 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. During fiscal 2016, the Company acquired Creagh Medical and NorMedix, which are included in the Medical Device segment.

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):

	2016			2015			2014
Revenue:
Medical Device	$	53,202		$	45,944		$	43,068
In Vitro Diagnostics		18,164			15,954			14,371
Total revenue	$	71,366		$	61,898		$	57,439
Operating income (loss):
Medical Device	$	16,975		$	21,192		$	22,636
In Vitro Diagnostics		7,115			4,484			3,459
Total segment operating income		24,090			25,676			26,095
Corporate		(7,231	)		(6,587	)		(7,519	)
Total operating income from continuing operations	$	16,859		$	19,089		$	18,576
Depreciation and amortization:
Medical Device	$	3,261		$	1,138		$	1,136
In Vitro Diagnostics		789			873			850
Corporate		823			794			729
Total depreciation and amortization	$	4,873		$	2,805		$	2,715

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.

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.

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:

	2016			2015			2014
Medtronic		25	%		26	%		19	%

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

	2016			2015			2014
Domestic		79	%		77	%		78	%
Foreign		21	%		23	%		22	%