<SEC-DOCUMENT>0001157523-16-004327.txt : 20160128
<SEC-HEADER>0001157523-16-004327.hdr.sgml : 20160128
<ACCEPTANCE-DATETIME>20160128075013
ACCESSION NUMBER:		0001157523-16-004327
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20160128
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20160128
DATE AS OF CHANGE:		20160128

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SURMODICS INC
		CENTRAL INDEX KEY:			0000924717
		STANDARD INDUSTRIAL CLASSIFICATION:	SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841]
		IRS NUMBER:				411356149
		STATE OF INCORPORATION:			MN
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-23837
		FILM NUMBER:		161366642

	BUSINESS ADDRESS:	
		STREET 1:		9924 W 74TH ST
		CITY:			EDEN PRAIRIE
		STATE:			MN
		ZIP:			55344
		BUSINESS PHONE:		9525007000

	MAIL ADDRESS:	
		STREET 1:		9924 WEST 74TH ST
		CITY:			EDEN PRAIRIE
		STATE:			MN
		ZIP:			55344

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BSI CORP
		DATE OF NAME CHANGE:	19970506
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a51268222.htm
<DESCRIPTION>SURMODICS, INC. 8-K
<TEXT>
<html>
  <head>
    <title></title>
<!--Copyright 2016 Business Wire, a Berkshire Hathaway company.-->
<!--All rights reserved www.businesswire.com-->
  </head>
  <body style="font-family: Times New Roman; font-size: 10pt">
    <p style="text-align: center">
      <br>
      <font style="font-size: 12pt; font-family: Times New Roman"><b>UNITED
      STATES</b></font><font style="font-size: 12pt"><br style="font-size: 12pt"></font><font style="font-size: 12pt; font-family: Times New Roman"><b>SECURITIES
      AND EXCHANGE COMMISSION</b></font><br><font style="font-size: 12pt; font-family: Times New Roman"><b>Washington,
      D.C. 20549</b></font><br><br><font style="font-size: 12pt; font-family: Times New Roman"><b>FORM
      8-K</b></font><br><br><font style="font-size: 12pt; font-family: Times New Roman"><b>CURRENT
      REPORT</b></font><b><font style="font-size: 12pt; font-family: Times New Roman"><br style="font-family: Times New Roman; font-size: 12pt"></font><font style="font-size: 12pt; font-family: Times New Roman">PURSUANT
      TO SECTION 13 OR 15(d)&#160;OF THE</font><font style="font-size: 12pt; font-family: Times New Roman"><br style="font-family: Times New Roman; font-size: 12pt"></font><font style="font-size: 12pt; font-family: Times New Roman">SECURITIES
      EXCHANGE ACT OF 1934</font></b><br><br><br>
    </p>
    <div style="text-align:center">
    <table style="margin-left:auto;margin-right:auto; font-size: 10pt; width: 65%; font-family: Times New Roman; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td style="padding-left: 0.0px; text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="top">
          <p style="font-size: 10pt; margin-top: 0px; margin-bottom: 0px">
            <font style="font-size: 10pt; font-family: Times New Roman"><b>January
            28, 2016</b></font><font style="font-size: 10pt; font-family: Times New Roman"><br style="font-size: 10pt; font-family: Times New Roman"></font>
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top">
          Date of report (Date of earliest event reported)
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">
      <br>

    </p>
    <div style="text-align:center">
    <table style="margin-left:auto;margin-right:auto; font-size: 10pt; width: 75%; font-family: Times New Roman; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td style="padding-left: 0.0px; text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <font style="font-size: 16pt"><b>SurModics, Inc.</b></font>
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top">
          (Exact Name of Registrant as Specified in its Charter)
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">
      <br>

    </p>
<div style="text-align:left">
    <table style="font-size: 10pt; width: 100%; font-family: Times New Roman; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td style="padding-left: 0.0px; text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid; width: 33%" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Minnesota</b>
          </p>
        </td>
        <td style="width: 1%">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid; width: 32%" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>0-23837</b>
          </p>
        </td>
        <td style="width: 1%">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid; width: 33%" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>41-1356149</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center; width: 33%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (State of Incorporation)
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 1%">

        </td>
        <td style="padding-left: 0.0px; text-align: center; width: 32%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (Commission File Number)
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 1%">

        </td>
        <td style="padding-left: 0.0px; text-align: center; width: 33%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (I.R.S. Employer
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            Identification No.)
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
<div style="text-align:left">
    <table style="font-size: 10pt; width: 100%; font-family: Times New Roman; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td style="padding-left: 0.0px; text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid; width: 33%" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>9924 West 74<sup>th</sup> Street</b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Eden Prairie, Minnesota</b>
          </p>
        </td>
        <td style="width: 34%">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid; width: 33%" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>55344</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center; width: 33%" valign="bottom">
          <font style="font-size: 10pt; font-family: Times New Roman">(Address
          of Principal Executive Offices)</font>
        </td>
        <td style="width: 34%">

        </td>
        <td style="padding-left: 0.0px; text-align: center; width: 33%" valign="bottom">
          <font style="font-size: 10pt; font-family: Times New Roman">(Zip
          Code)</font>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <div style="text-align:center">
    <table style="margin-left:auto;margin-right:auto; font-size: 10pt; width: 65%; font-family: Times New Roman; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td style="padding-left: 0.0px; text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>(952) 500-7000</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top">
          (Registrant&#8217;s Telephone Number, Including Area Code)
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <p style="text-indent: 30.0px; font-size: 10pt">
      <font style="font-size: 10pt; font-family: Times New Roman">Check the
      appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions&#160; </font>(see General Instruction A.2):
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font>
    </p>
    <div style="margin-right: 0pt; text-indent: 0pt; margin-left: 0pt; width: 100%; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p>
      <b>Item 2.02 &#160;&#160;&#160;&#160;Results of Operations And Financial Condition.</b>
    </p>
    <p style="text-indent: 30.0px; font-size: 10pt">
      On January 28, 2016, the Company issued a press release (the &#8220;<u>Press
      Release</u>&#8221;) announcing the results for the quarter ended December 31,
      2015.&#160;&#160;A copy of the full text of the Press Release is furnished as
      Exhibit 99.1 to this report.
    </p>
    <p style="text-indent: 30.0px; font-size: 10pt">
      The information contained in this Item 2.02, including Exhibit 99.1,
      shall not be deemed to be &#8220;filed&#8221; for purposes of Section&#160;18 of the
      Securities Exchange Act of 1934, as amended, nor shall they be deemed to
      be incorporated by reference into any filing under the Securities Act of
      1933, as amended, except as shall be expressly set forth by specific
      reference in such a filing.
    </p>
    <p>
      <b>Item 9.01 &#160;&#160;&#160;&#160;Financial Statements and Exhibits.</b>
    </p>
<div style="text-align:left">
    <table style="font-size: 10pt; width: 100%; font-family: Times New Roman; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td style="padding-left: 0.0px; text-align: center; width: 9%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (d)
          </p>
        </td>
        <td style="padding-left: 0.0px; text-align: left" colspan="3" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <i>Exhibits.</i>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 9%">

        </td>
        <td style="width: 9%">

        </td>
        <td style="width: 2%">
          &#160;
        </td>
        <td style="width: 80%">

        </td>
      </tr>
      <tr>
        <td style="width: 9%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 9%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Exhibit</b>
          </p>
        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 2%" valign="top">

        </td>
        <td style="width: 80%">

        </td>
      </tr>
      <tr>
        <td style="width: 9%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid; width: 9%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Number</b>
          </p>
        </td>
        <td style="width: 2%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid; width: 80%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Description</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 9%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap; width: 9%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            99.1
          </p>
        </td>
        <td style="width: 2%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 80%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Press Release dated January 28, 2016.
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <div style="margin-right: 0pt; text-indent: 0pt; margin-left: 0pt; width: 100%; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: center">
      <font style="font-size: 10pt; font-family: Times New Roman">SIGNATURES</font>
    </p>
    <p style="text-indent: 30.0px; font-size: 10pt">
      Pursuant to the requirements of the Securities Exchange Act of 1934, the
      registrant has duly caused this report to be signed on its behalf by the
      undersigned hereunto duly authorized.
    </p>
<div style="text-align:left">
    <table style="font-size: 10pt; width: 100%; font-family: Times New Roman; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td style="padding-left: 0.0px; text-align: left" colspan="2" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            SURMODICS, INC.
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td style="padding-left: 0.0px; text-align: left" colspan="2" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; width: 5%" valign="top">

        </td>
        <td style="width: 45%">

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; width: 5%; padding-bottom: 2.0px" valign="top">
          Date:
        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 45%; padding-bottom: 2.0px" valign="top">
          January 28, 2016
        </td>
        <td style="padding-left: 0.0px; text-align: left; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid; width: 3%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="padding-left: 0.0px; text-align: left; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid; width: 47%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            /s/&#160;&#160;&#160; Andrew D. C. LaFrence
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td style="width: 3%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 47%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Andrew D. C. LaFrence
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td style="width: 3%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 47%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Vice President Finance and Chief Financial Officer
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <div style="margin-right: 0pt; text-indent: 0pt; margin-left: 0pt; width: 100%; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: center">
      EXHIBIT INDEX
    </p>
    <p>

    </p>
<div style="text-align:left">
    <table style="font-size: 10pt; width: 100%; font-family: Times New Roman; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td style="padding-left: 0.0px; text-align: left; width: 9%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Exhibit</b>
          </p>
        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 2%" valign="top">
          &#160;
        </td>
        <td style="width: 89%">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid; width: 9%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Number</b>
          </p>
        </td>
        <td style="width: 2%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid; width: 89%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Description</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap; width: 9%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            99.1
          </p>
        </td>
        <td style="width: 2%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 89%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Press Release dated January 28, 2016.
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
  </body>
</html>
<!--<!DOCTYPE html
     PUBLIC "-//W3C//DTD XHTML 1.0 Strict//EN"
     "http://www.w3.org/TR/xhtml1/DTD/xhtml1-strict.dtd">-->
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a51268222ex99_1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html>
  <head>
    <title></title>
<!--Copyright 2016 Business Wire, a Berkshire Hathaway company.-->
<!--All rights reserved www.businesswire.com-->
  </head>
  <body style="font-family: Times New Roman; font-size: 8pt">
    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p>
      <font style="font-size: 12pt; font-family: Times New Roman"><b>SurModics
      Reports First Quarter Fiscal 2016 Results</b></font>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        <font style="font-size: 12pt; font-family: Times New Roman"><b>GAAP
        Revenue of $16.5 Million, up 16%</b></font>
      </li>
      <li style="margin-bottom: 10.0px">
        <font style="font-size: 12pt; font-family: Times New Roman"><b>GAAP
        EPS of $0.19, Non-GAAP EPS of $0.38</b></font>
      </li>
      <li style="margin-bottom: 10.0px">
        <font style="font-size: 12pt; font-family: Times New Roman"><b>Fiscal
        2016 Guidance Reaffirmed</b></font>
      </li>
    </ul>
    <p>
      EDEN PRAIRIE, Minn.--(BUSINESS WIRE)--January 28, 2016--SurModics, Inc.
      (NASDAQ:SRDX), a leading provider of medical device and in vitro
      diagnostic technologies to the healthcare industry, today announced
      results for its fiscal 2016 first quarter, ended December 31, 2015.
    </p>
    <p>
      &#8220;The SurModics team had an exceptional first quarter of fiscal 2016,&#8221;
      said Gary Maharaj, president and chief executive officer. &#8220;We delivered
      outstanding results from our core Medical Device and In Vitro Diagnostic
      businesses while completing both the November 2015 Creagh Medical and
      January 2016 NorMedix acquisitions. We are well-positioned to meet our
      fiscal 2016 financial commitments with our first quarter financial
      results as well as execute our future growth with our whole products
      solutions strategy with these acquisitions and our continued progress on
      the SurModics <i>SurVeil</i> <sup>TM</sup> drug-coated balloon platform.
      &#8221;
    </p>
    <p>
      <b>First Quarter Revenue and Earnings Summary</b>
    </p>
    <p>
      GAAP revenue for the fiscal 2016 first quarter totaled $16.5 million,
      compared with $14.2 million a year earlier. First quarter fiscal 2016
      revenue included $0.5 million from Creagh Medical.
    </p>
    <p>
      Diluted GAAP earnings per share from continuing operations in the first
      quarter of fiscal 2016 were $0.19 compared with $0.27 a year ago. Both
      the first quarter of fiscal 2016 and 2015 earnings include a $0.02 per
      share discrete income tax benefit from the renewal of the federal
      research and development tax credit. As indicated by SurModics earlier
      this month, fiscal 2016 first quarter earnings also reflect a $0.20 per
      share reduction from Creagh Medical acquisition-related transaction
      costs including investment banker fees, integration, contingent
      consideration accretion, foreign currency transaction and other
      expenses. On a non-GAAP comparative basis, earnings per share were $0.38
      in the first quarter of fiscal 2016 versus $0.26 last year, an increase
      of 46%.
    </p>
    <p>
      <b>Medical Device Segment</b>
    </p>
    <p>
      This business, which includes hydrophilic coatings, device drug delivery
      technologies, and balloon catheter products, posted revenue of $12.2
      million in the first quarter of fiscal 2016, an increase of 15% compared
      to the year-ago period. The gain stems from higher hydrophilic
      royalties, reagent product sales, and research and development contract
      coating services as well as the Creagh Medical acquisition. Fiscal first
      quarter 2016 hydrophilic coating royalty revenue was $7.5&#160;million, an
      increase of 6% compared to the year-earlier period. The Medical Device
      business unit generated $3.8&#160;million of operating income in the first
      quarter compared to $5.5 million in the prior-year quarter. Higher gross
      margin from revenue gains was more than offset by $2.8 million of Creagh
      Medical transaction-related expenses, amortization, accretion and
      foreign currency transaction loss costs.
    </p>
    <p>
      <b>In Vitro Diagnostics Segment</b>
    </p>
    <p>
      Revenue for the first quarter of fiscal 2016 totaled $4.3 million, an
      increase of 20% compared to the year-ago period. The IVD business unit
      generated $1.6 million of operating income in the first quarter of
      fiscal 2016, which reflects a 50%&#160;increase from a year ago. Operating
      income benefited from improved operating leverage due to higher revenue
      and lower legal costs.
    </p>
    <div style="margin-right: 0pt; margin-left: 0pt; text-indent: 0pt; width: 100%; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>Balance Sheet and Cash Flow</b>
    </p>
    <p>
      As of December 31, 2015, the Company had $42.7 million of cash and
      investments. SurModics generated cash from operating activities of $6.1
      million in the first quarter of fiscal 2016. Capital expenditures
      totaled $0.4 million for the first quarter of fiscal 2016. In addition,
      the Company used $18.2 million of net cash to acquire Creagh Medical in
      the first quarter.
    </p>
    <p>
      <b>Fiscal 2016 Outlook</b>
    </p>
    <p>
      SurModics is reaffirming its previously stated guidance for fiscal 2016.
      The Company expects revenue to range from $62&#160;million to $66 million,
      with diluted GAAP earnings in the range of $0.30 to $0.35 per share and
      non-GAAP earnings of $0.66 to $0.75 per share.
    </p>
    <p>
      <b>Live Webcast</b>
    </p>
    <p>
      SurModics will host a webcast at 7:30 a.m. CT (8:30 a.m. ET) today to
      discuss first quarter results. To access the webcast, go to the investor
      relations portion of the Company&#8217;s website at <u>www.surmodics.com</u>
      and click on the webcast icon. A replay of the first quarter conference
      call will be available by dialing 888-203-1112 and entering conference
      call ID passcode 167645. The audio replay will be available beginning at
      10:30 a.m. CT on Thursday, January 28, 2016, until 10:30&#160;a.m.&#160;CT on
      Thursday, February 4, 2016.
    </p>
    <p>
      <b>About SurModics SurVeil&#8482; Drug-Coated Balloon</b>
    </p>
    <p>
      The <i>SurVeil</i> drug-coated balloon incorporates SurModics&#8217; decades
      of experience as a leading supplier of surface modification technologies
      to the medical device industry. It includes a SurModics-proprietary
      drug-excipient formulation for the balloon coating, and a new and
      proprietary manufacturing process for the coating applications. It also
      includes the SurModics Serene&#8482; low-friction, low-particulate hydrophilic
      coating on the catheter shaft. The SurVeil DCB is not available for sale
      in the US and is for investigational use only. We plan to initiate a
      first-in-human clinical trial using SurModics <i>SurVeil </i>drug-coated
      balloon by the end of the second quarter of fiscal 2016.
    </p>
    <p>
      <b>About SurModics, Inc.</b>
    </p>
    <p>
      SurModics partners with the world&#8217;s leading and emerging medical device,
      diagnostic and life science companies to develop and commercialize
      innovative products designed to improve lives by enabling the detection
      and treatment of disease. Our mission is to be a trusted partner to our
      customers by providing the most advanced surface modification
      technologies and <i>in vitro</i> diagnostic chemical components that
      help enhance the well-being of patients. The Company&#8217;s core offerings
      include surface modification coating technologies that impart lubricity,
      prohealing, and biocompatibility characteristics and components for <i>in
      vitro</i> diagnostic test kits and microarrays. SurModics&#8217; strategy is
      to build on the product and technical leadership within these fields,
      and expand the core offerings to generate opportunities for longer term
      sustained growth. SurModics is headquartered in Eden Prairie, Minnesota.
      For more information about the Company, visit <u>www.surmodics.com</u>.
      The content of SurModics&#8217; website is not part of this press release or
      part of any filings that the Company makes with the SEC.
    </p>
    <div style="margin-right: 0pt; text-indent: 0pt; margin-left: 0pt; width: 100%; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>Safe Harbor for Forward-Looking Statements</b>
    </p>
    <p>
      This press release contains forward-looking statements. Statements that
      are not historical or current facts, including statements about beliefs
      and expectations regarding the Company&#8217;s performance in the near- and
      long-term, including our revenue, earnings and cash flow expectations
      for fiscal 2016, our fiscal 2016 priorities, and our <i>SurVeil </i>drug-coated
      balloon, are forward-looking statements. Forward-looking statements
      involve inherent risks and uncertainties, and important factors could
      cause actual results to differ materially from those anticipated,
      including (1)&#160;our ability to successfully develop, obtain regulatory
      approval for, and commercialize our <i>SurVeil</i> drug-coated balloon
      product, including the timing associated with the initiation of our
      first-in-human clinical trial; (2) our reliance on third parties
      (including our customers and licensees) and their failure to
      successfully develop, obtain regulatory approval for, market and sell
      products incorporating our technologies; (3) our ability to successfully
      identify and acquire target companies or achieve expected benefits from
      acquisitions that are consummated; (4) possible adverse market
      conditions and possible adverse impacts on our cash flows, and (5) the
      factors identified under &#8220;Risk Factors&#8221; in Part I, Item 1A of our Annual
      Report on Form 10-K for the fiscal year ended September 30, 2015, and
      updated in our subsequent reports filed with the SEC. These reports are
      available in the Investors section of our website at <u>www.surmodics.com</u>
      and at the SEC website at <u>www.sec.gov</u>. Forward-looking statements
      speak only as of the date they are made, and we undertake no obligation
      to update them in light of new information or future events.
    </p>
    <p>
      <b>Use of Non-GAAP Financial Information</b>
    </p>
    <p>
      In addition to reporting financial results in accordance with generally
      accepted accounting principles, or GAAP, SurModics is reporting non-GAAP
      financial results including non-GAAP operating income, non-GAAP income
      before income taxes, non-GAAP net income, and non-GAAP diluted net
      income per share. We believe that these non-GAAP measures provide
      meaningful insight into our operating performance excluding certain
      event-specific matters, and provide an alternative perspective of our
      results of operations. We use non-GAAP measures, including those set
      forth in this release, to assess our operating performance and to
      determine payout under our executive compensation programs. We believe
      that presentation of certain non-GAAP measures allows investors to
      review our results of operations from the same perspective as management
      and our board of directors and facilitates comparisons of our current
      results of operations. The method we use to produce non-GAAP results is
      not in accordance with GAAP and may differ from the methods used by
      other companies. Non-GAAP results should not be regarded as a substitute
      for corresponding GAAP measures but instead should be utilized as a
      supplemental measure of operating performance in evaluating our
      business. Non-GAAP measures do have limitations in that they do not
      reflect certain items that may have a material impact on our reported
      financial results. As such, these non-GAAP measures should be viewed in
      conjunction with both our financial statements prepared in accordance
      with GAAP and the reconciliation of the supplemental non-GAAP financial
      measures to the comparable GAAP results provided for the specific
      periods presented, which are attached to this release.
    </p>
    <div style="margin-right: 0pt; text-indent: 0pt; margin-left: 0pt; width: 100%; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="font-size: 8pt; width: 100%; font-family: Times New Roman; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td colspan="9">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" colspan="9" valign="top">
          <b>SurModics, Inc. and Subsidiaries</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" colspan="9" valign="top">
          <b>Condensed Consolidated Statements of Income</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" colspan="9" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (in thousands, except per share data)
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="7">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="7" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Three Months Ended</b><br><b>December 31,</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          <b>2015</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          <b>2014</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center" colspan="7" valign="top">
          (Unaudited)
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Revenue
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Royalties and license fees
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          7,954
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          7,275
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Product sales
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          7,181
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          5,847
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Research and development
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          1,406
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          1,083
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 35.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Total revenue
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          16,541
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          14,205
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Operating expenses
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Product costs
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          2,366
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          1,902
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Research and development
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          3,634
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          3,576
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Selling, general and administrative
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          3,608
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          3,542
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Amortization, special and other charges
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          2,994
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          151
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 35.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Total operating costs and expenses
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          12,602
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          9,171
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Operating income
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          3,939
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          5,034
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Other (loss) income, net
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          (134
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          50
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Income before income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          3,805
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          5,084
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Income tax provision
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          (1,292
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          (1,470
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; padding-bottom: 4.0px" valign="top">
          Net income
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          2,513
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          3,614
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; padding-bottom: 4.0px" valign="top">
          Basic net income per share
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          0.19
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          0.27
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; padding-bottom: 4.0px" valign="top">
          Diluted net income per share
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          0.19
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          0.27
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Weighted average shares outstanding
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Basic
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          12,966
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          13,225
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Diluted
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          13,186
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          13,423
        </td>
        <td>

        </td>
      </tr>
    </table>
    </div>
    <div style="margin-right: 0pt; text-indent: 0pt; margin-left: 0pt; width: 100%; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="font-size: 8pt; width: 100%; font-family: Times New Roman; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" colspan="7" valign="top">
          <b>SurModics, Inc. and Subsidiaries</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" colspan="7" valign="top">
          <b>Condensed Consolidated Balance Sheets</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" colspan="7" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (in thousands)
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="2" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>December 31,</b><br><b>2015</b>
          </p>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="2" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>September 30,</b><br><b>2015</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center" colspan="5" valign="top">
          (Unaudited)
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Assets
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Cash and short-term investments
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          42,668
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          55,588
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Restricted cash
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          786
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right" colspan="2" valign="top">
          &#8213;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Accounts receivable
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          5,522
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          7,478
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Inventories
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          3,301
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          2,979
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Other current assets
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          961
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          1,744
        </td>
      </tr>
      <tr>
        <td style="padding-left: 50.0px; text-align: left" valign="top">
          Total current assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          53,238
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          67,789
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Property and equipment, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          13,506
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          12,968
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Intangible assets, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          16,502
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          2,760
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Goodwill
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          21,822
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          8,010
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Other assets
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          7,147
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          7,183
        </td>
      </tr>
      <tr>
        <td style="padding-left: 50.0px; text-align: left; padding-bottom: 4.0px" valign="top">
          Total assets
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          112,215
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          98,710
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Liabilities and Stockholders&#8217; Equity
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Current liabilities
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          5,608
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          4,700
        </td>
      </tr>
      <tr>
        <td style="padding-left: 50.0px; text-align: left" valign="top">
          Total current liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          5,608
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          4,700
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Contingent consideration
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          9,308
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right" colspan="2" valign="top">
          &#8213;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Other liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          2,026
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          2,137
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Total stockholders&#8217; equity
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          95,273
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          91,873
        </td>
      </tr>
      <tr>
        <td style="padding-left: 50.0px; text-align: left; padding-bottom: 4.0px" valign="top">
          Total liabilities and stockholders&#8217; equity
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          112,215
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          98,710
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-right: 0pt; text-indent: 0pt; margin-left: 0pt; width: 100%; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="font-size: 8pt; width: 100%; font-family: Times New Roman; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="7">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" colspan="9" valign="top">
          <b>SurModics, Inc. and Subsidiaries</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" colspan="9" valign="top">
          <b>Condensed Consolidated Statements of Cash Flows</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" colspan="9" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (in thousands)
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="7">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="7" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Three Months Ended</b><br><b>December 31,</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="3" valign="bottom">
          <b>2015</b>
        </td>
        <td>
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="3" valign="bottom">
          <b>2014</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center" colspan="7" valign="top">
          (Unaudited)
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Operating Activities:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Net income
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          2,513
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          3,614
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Depreciation and amortization
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          909
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          683
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Stock-based compensation
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          684
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          525
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Contingent consideration accretion and foreign currency
            transaction loss expenses
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          244
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right" colspan="3" valign="top">
          &#8213;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Deferred taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          741
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          1,025
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Net other operating activities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (143
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (492
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Change in operating assets and liabilities:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Accounts receivable
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          2,194
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          309
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Accounts payable and accrued liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (1,248
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (508
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          508
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          413
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Net change in other operating assets and liabilities
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          (274
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          (39
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-left: 35.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Net cash provided by operating activities from continuing
            operations
          </p>
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          6,128
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          5,530
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Investing Activities:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Payments for acquisitions, net of cash acquired
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (18,156
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right" colspan="3" valign="top">
          &#8213;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Net purchases of property and equipment
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (384
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (41
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Cash transferred to discontinued operations
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right" colspan="3" valign="top">
          &#8213;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (45
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Net other investing activities
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="3" valign="top">
          &#8213;
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          (2,238
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-left: 35.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Net cash used in investing activities from continuing operations
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          (18,540
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          (2,324
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Financing Activities:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Purchase of common stock to fund employee taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (353
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (725
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Repurchase of common stock
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right" colspan="3" valign="top">
          &#8213;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (20,000
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Net other financing activities
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          (155
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          568
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 35.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Net cash used in financing activities from continuing operations
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          (508
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          (20,157
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-left: 35.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Net cash used in continuing operations
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          (12,920
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          (16,951
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Discontinued operations:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Net cash used in operating activities
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right" colspan="3" valign="top">
          &#8213;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (45
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Net cash provided by financing activities
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="3" valign="top">
          &#8213;
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          45
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 35.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Net cash provided by discontinued operations
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="3" valign="top">
          &#8213;
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="3" valign="top">
          &#8213;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Net change in cash and cash equivalents
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (12,920
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (16,951
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Cash and Cash Equivalents:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left; padding-bottom: 2.0px" valign="bottom">
          Beginning of period
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          55,588
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          43,511
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left; padding-bottom: 4.0px" valign="top">
          End of period
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          42,668
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          26,560
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-right: 0pt; text-indent: 0pt; margin-left: 0pt; width: 100%; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="font-size: 8pt; width: 100%; font-family: Times New Roman; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="11">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" colspan="16" valign="top">
          <b>SurModics, Inc. and Subsidiaries</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" colspan="16" valign="top">
          <b>Supplemental Segment Information</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" colspan="16" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (in thousands)
          </p>
        </td>
      </tr>
      <tr>
        <td colspan="16">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" colspan="16" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (Unaudited)
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="11">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="11" valign="bottom">
          <b>Three Months Ended December 31,</b>
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="5" valign="bottom">
          <b>2015</b>
        </td>
        <td>
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="5" valign="bottom">
          <b>2014</b>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="2" valign="bottom">
          <b>% Change</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; padding-bottom: 2.0px" valign="bottom">
          <b>Revenue</b>
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="2" valign="bottom">
          <b>% of Total</b>
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="2" valign="bottom">
          <b>% of Total</b>
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          Medical Device
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          12,247
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          74.0
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          %
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          10,635
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          74.9
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          %
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          15.2
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          %
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left; padding-bottom: 2.0px" valign="bottom">
          In Vitro Diagnostics
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          4,294
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          26.0
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          3,570
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          25.1
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; padding-bottom: 2.0px" valign="bottom">
          20.3
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 35.0px; text-align: left; padding-bottom: 4.0px" valign="bottom">
          Total revenue
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          16,541
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          100.0
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          %
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          14,205
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          100.0
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          %
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; padding-bottom: 4.0px" valign="bottom">
          16.4
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap; padding-bottom: 4.0px" valign="bottom">
          %
        </td>
      </tr>
    </table>
    </div>
<div style="text-align:left">
    <table style="font-size: 8pt; width: 100%; font-family: Times New Roman; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="7">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="7" valign="bottom">
          <b>Three Months Ended December 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="3" valign="bottom">
          <b>2015</b>
        </td>
        <td>
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: center; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="3" valign="bottom">
          <b>2014</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          <b>Operating Income</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          Medical Device
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          3,830
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          5,515
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          In Vitro Diagnostics
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          1,643
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          1,098
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left; padding-bottom: 2.0px" valign="bottom">
          Corporate
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          (1,534
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          (1,579
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-left: 35.0px; text-align: left; padding-bottom: 4.0px" valign="bottom">
          Total operating income
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          3,939
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          5,034
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-right: 0pt; text-indent: 0pt; margin-left: 0pt; width: 100%; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="font-size: 8pt; width: 100%; font-family: Times New Roman; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" colspan="21" valign="top">
          <b>SurModics, Inc., and Subsidiaries</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" colspan="21" valign="top">
          <b>Net Income and Diluted EPS GAAP to Non-GAAP Reconciliation</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" colspan="21" valign="top">
          <b>For the Three Months Ended December 31, 2015</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" colspan="21" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (in thousands, except per share data)
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" colspan="21" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (Unaudited)
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="2" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Total</b><br><b>Revenue</b>
          </p>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="2" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Operating</b><br><b>Income</b>
          </p>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="2" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Operating</b><br><b>Income</b><br><b>Percentage</b>
          </p>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="2" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Income</b><br><b>Before</b><br><b>Income</b><br><b>Taxes</b>
          </p>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="3" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Net</b><br><b>Income</b>
          </p>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="3" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Diluted</b><br><b>EPS</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          <b>GAAP</b>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          16,541
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          3,939
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          23.8
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          %
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          3,805
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          2,513
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          0.19
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          Adjustments:
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 20.0px; text-align: left" valign="top">
          Acquisition transaction, integration and other costs (1)
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right" colspan="2" valign="top">
          &#8213;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          2,531
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          15.3
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          2,531
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          2,225
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          0.17
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 20.0px; text-align: left" valign="top">
          Contingent consideration accretion expense (2)
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right" colspan="2" valign="top">
          &#8213;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          109
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          0.7
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          109
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          109
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          0.01
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 20.0px; text-align: left" valign="top">
          Research and development tax credit (3)
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right" colspan="2" valign="top">
          &#8213;
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right" colspan="2" valign="top">
          &#8213;
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right" colspan="2" valign="top">
          &#8213;
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right" colspan="2" valign="top">
          &#8213;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          135
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (0.02
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-left: 20.0px; text-align: left" valign="top">
          Foreign exchange loss (4)
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right" colspan="2" valign="top">
          &#8213;
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right" colspan="2" valign="top">
          &#8213;
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right" colspan="2" valign="top">
          &#8213;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          135
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (222
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          0.01
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 20.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Amortization of intangible assets (5)
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="2" valign="top">
          &#8213;
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          354
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          2.1
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          354
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          298
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          0.02
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; padding-bottom: 4.0px" valign="bottom">
          <b>Non-GAAP</b>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          16,541
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          6,933
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          41.9
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          %
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          6,934
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          5,058
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          0.38
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
      </tr>
    </table>
    </div>
<div style="text-align:left">
    <table style="font-size: 8pt; width: 100%; font-family: Times New Roman; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="top">
          (1)
        </td>
        <td>
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Represents acquisition related costs, including due diligence and
          integration expenses. Due diligence and other fees include legal,
          tax, investment banker and other expenses associated with
          acquisitions that can be highly variable and not representative of
          on-going operations.
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="top">
          (2)
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          The contingent consideration accretion adjustment represents
          accounting adjustments to state contingent consideration liabilities
          at their estimated fair value.
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="top">
          (3)
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Represents the estimated discrete income tax benefit associated with
          the December 2015 signing of the Protecting Americans from Tax Hikes
          Act of 2015&#8212; which retroactively reinstated federal R&amp;D income tax
          credits for calendar 2015.
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="top">
          (4)
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Foreign exchange loss related to marking contingent consideration to
          market.
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="top">
          (5)
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          To exclude amortization of acquisition related intangible assets and
          associated tax impact.
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-right: 0pt; text-indent: 0pt; margin-left: 0pt; width: 100%; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="font-size: 8pt; width: 100%; font-family: Times New Roman; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td colspan="21">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" colspan="21" valign="top">
          <b>SurModics, Inc., and Subsidiaries</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" colspan="21" valign="top">
          <b>Net Income and Diluted EPS GAAP to Non-GAAP Reconciliation</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" colspan="21" valign="top">
          <b>For the Three Months Ended December 31, 2014</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" colspan="21" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (in thousands, except per share data)
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" colspan="21" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (Unaudited)
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="2" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Total</b><br><b>Revenue</b>
          </p>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="2" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Operating</b><br><b>Income</b>
          </p>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="2" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Operating</b><br><b>Income</b><br><b>Percentage</b>
          </p>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="2" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Income</b><br><b>Before</b><br><b>Income</b><br><b>Taxes</b>
          </p>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="3" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Net</b><br><b>Income</b>
          </p>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="3" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Diluted</b><br><b>EPS</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          <b>GAAP</b>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          14,205
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          5,034
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          35.4
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          %
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          5,084
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          3,614
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          0.27
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          Adjustments:
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Research and development tax credit (1)
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right" colspan="2" valign="top">
          &#8213;
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right" colspan="2" valign="top">
          &#8213;
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right" colspan="2" valign="top">
          &#8213;
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right" colspan="2" valign="top">
          &#8213;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (201
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (0.02
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Amortization of intangible assets (2)
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" colspan="2" valign="top">
          &#8213;
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          151
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          1.1
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          151
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          96
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid" valign="bottom">
          0.01
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; padding-bottom: 4.0px" valign="bottom">
          <b>Non-GAAP</b>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          14,205
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          5,185
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          36.5
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          %
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          5,235
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          3,509
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="padding-left: 0.0px; text-align: right; padding-right: 0.0px; white-space: nowrap; border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double" valign="bottom">
          0.26
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
      </tr>
    </table>
    </div>
<div style="text-align:left">
    <table style="font-size: 8pt; width: 100%; font-family: Times New Roman; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="top">
          (1)
        </td>
        <td>
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Represents a discrete income tax benefit associated with the
          December 2014 signing of the Tax Increase Prevention Act of 2014
          which retroactively reinstated federal R&amp;D income tax credits for
          calendar 2014.
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; padding-right: 0.0px; white-space: nowrap" valign="top">
          (2)
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          To exclude amortization of acquisition related intangible assets and
          associated tax impact.
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <p>
      CONTACT:<br>SurModics, Inc.<br>Andy LaFrence, 952-500-7000<br>Vice
      President of Finance and Chief Financial Officer
    </p>
  </body>
</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
