Quarterly Financial Data (Unaudited)

12 Months Ended

Sep. 30, 2016

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (Unaudited)

13.  Quarterly Financial Data (Unaudited)

The following is a summary of the unaudited quarterly results for the years ended September 30, 2016 and 2015 (in thousands, except per share data).

	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Fiscal 2016
Total revenue	$	16,541	$	16,699	$	19,972	$	18,154
Operating income		3,939		2,240		6,597		4,083
Net income (1)		2,653		821		3,934		2,577
Basic net income per share (2):		0.20		0.06		0.31		0.20
Diluted net income per share (2):		0.20		0.06		0.30		0.20
Fiscal 2015
Total revenue	$	14,205	$	14,415	$	15,914	$	17,364
Operating income		5,034		3,932		5,857		4,266
Net income		3,614		3,051		3,924		1,358
Basic net income per share (2):		0.27		0.24		0.30		0.10
Diluted net income per share (2):		0.27		0.23		0.30		0.10

(1) Previously reported quarterly net income amounts for the first through third quarters of fiscal 2016 have been adjusted for the effects of the adoption of ASU 2016-09 (see Note 2), as this guidance was adopted in the fourth quarter of fiscal 2016 retroactive to the beginning of the fiscal year. The adjustments to net income were approximately $0.1 million each quarter. Additionally, basic and diluted net income per share for the first quarter were adjusted from $0.19 to $0.20 as a result of the adoption of the ASU.

(2) The sum of the quarterly income 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 first quarter of fiscal 2016, the Company recorded expense related to acquisition related costs, including due diligence and integration expenses of $2.5 million, related to the acquisitions of Creagh Medical and NorMedix (Note 3).

During the second quarter of fiscal 2016, the Company recorded an out-of-period adjustment of $1.1 million to correct a cumulative overstatement of royalty revenue, of which $1.0 million related to years prior to fiscal 2016. The overstatement was evaluated and concluded to not be material to fiscal 2016, or any prior interim or annual periods.

In the third quarter of fiscal 2016, the Company recorded a $2.9 million customer royalty catch-up payment related to periods prior to the third quarter fiscal 2016.

In the fourth quarter of fiscal 2016, the Company recorded a $0.5 million reduction of the income tax provision related to the adoption of ASU 2016-09 as discussed in Note 2.

In the fourth quarter of fiscal 2015, the Company recorded expense related to the settlement of a claim of $2.5 million, a $1.5 million impairment loss on a strategic investment and recognized $0.8 million in previously contingent royalties.

In the third quarter of fiscal 2015, the Company recorded a $0.6 million customer royalty catch-up payment related to periods prior to the third quarter fiscal 2015.

In the second quarter of fiscal 2015, the Company recorded a $0.5 million gain on a strategic investment in Intersect ENT shares.