13. Quarterly Financial Data (Unaudited)

The following is a summary of the unaudited quarterly results for the years ended September 30, 2017 and 2016 (in thousands, except per share data).

	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Fiscal 2017
Total revenue	$	17,761	$	17,503	$	17,790	$	20,058
Operating income		3,268		1,677		1,743		415
Net income		2,300		506		720		400
Basic net income per share (1):		0.17		0.04		0.05		0.03
Diluted net income per share (1):		0.17		0.04		0.05		0.03

Fiscal 2016
Total revenue	$	16,541	$	16,699	$	19,972	$	18,154
Operating income		3,939		2,240		6,597		4,083
Net income		2,653		821		3,934		2,577
Basic net income per share (1):		0.20		0.06		0.31		0.20
Diluted net income per share (1):		0.20		0.06		0.30		0.20

(1)

The sum of the quarterly income per share amounts may not equal the annual income per share total because of changes in the weighted average number of shares outstanding that occurred during the year.

In the fourth quarter of fiscal 2017, the Company recorded a $1.1 million license fee related to a customer’s acquisition and the Company’s sale of related jointly-owned intellectual property to the acquirer.

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

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

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

In the fourth quarter of fiscal 2016, the Company recorded a $0.5 million reduction of the income tax provision related to the adoption of ASU 2016-09 as discussed in Note 9.