Indicate by a check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

This Quarterly Report on Form 10-Q contains forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor from civil litigation for forward-looking statements accompanied by meaningful cautionary statements. Except for historical information, this report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, which may be identified by words such as “estimates”, “anticipates”, “projects”, “plans”, “seeks”, “may”, “will”, “expects”, “intends”, “believes”, “should” and similar expressions or the negative versions thereof and which also may be identified by their context. All statements that address operating performance or events or developments that Meridian expects or anticipates will occur in the future, including, but not limited to, statements relating to per share diluted earnings and revenue, are forward-looking statements. Such statements, whether expressed or implied, are based upon current expectations of the Company and speak only as of the date made. Specifically, Meridian’s forward-looking statements are, and will be, based on management’s then-current views and assumptions regarding future events and operating performance. Meridian assumes no obligation to publicly update or revise any forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. These statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially, including, without limitation, the following: Meridian’s continued growth depends, in part, on its ability to introduce into the marketplace enhancements of existing products or new products that incorporate technological advances, meet customer requirements and respond to products developed by Meridian’s competition, and its ability to effectively sell such products. While Meridian has introduced a number of internally developed products, there can be no assurance that it will be successful in the future in introducing such products on a timely basis. Meridian relies on proprietary, patented and licensed technologies, and the Company’s ability to protect its intellectual property rights, as well as the potential for intellectual property litigation, would impact its results. Ongoing consolidations of reference laboratories and formation of multi-hospital alliances may cause adverse changes to pricing and distribution. Recessionary pressures on the economy and the markets in which our customers operate, as well as adverse trends in buying patterns from customers can change expected results. Costs and difficulties in complying with laws and regulations, including those administered by the United States Food and Drug Administration, can result in

unanticipated expenses and delays and interruptions to the sale of new and existing products. The international scope of Meridian’s operations, including changes in the relative strength or weakness of the U.S. dollar and general economic conditions in foreign countries, can impact results and make them difficult to predict. One of Meridian’s growth strategies is the acquisition of companies and product lines. There can be no assurance that additional acquisitions will be consummated or that, if consummated, will be successful and the acquired businesses will be successfully integrated into Meridian’s operations. There may be risks that acquisitions may disrupt operations and may pose potential difficulties in employee retention and there may be additional risks with respect to Meridian’s ability to recognize the benefits of acquisitions, including potential synergies and cost savings or the failure of acquisitions to achieve their plans and objectives. Meridian cannot predict the possible impact of U.S. health care legislation enacted in 2010 – the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act – and any modification or repeal of any of the provisions thereof, and any similar initiatives in other countries on its results of operations. Efforts to reduce the U.S. federal deficit, breaches of Meridian’s information technology systems and natural disasters and other events could have a materially adverse effect on Meridian’s results of operations and revenues. In addition to the factors described in this paragraph, Part I, Item 1A Risk Factors of our Form 10-K contains a list and description of uncertainties, risks and other matters that may affect the Company.


													Three Months Ended
	Three Months Ended June 30,						Nine Months Ended June 30,						December 31,
	2015			2014			2015			2014			2015		2014
NET REVENUES	$	48,204		$	47,212		$	147,762		$	142,140		$	47,160	$	48,013

COST OF SALES		17,873			17,970			55,673			53,298			15,577		18,776


GROSS PROFIT		30,331			29,242			92,089			88,842			31,583		29,237


OPERATING EXPENSES
Research and development		3,214			3,146			9,685			9,185			3,381		3,103
Selling and marketing		6,184			6,249			18,745			18,787			6,443		6,080
General and administrative		6,535			6,715			20,860			20,446			8,173		7,385

Total operating expenses		15,933			16,110			49,290			48,418			17,997		16,568


OPERATING INCOME		14,398			13,132			42,799			40,424			13,586		12,669

OTHER INCOME (EXPENSE)
Interest income		6			5			18			15			17		6
Other, net		(99	)		(257	)		(892	)		(505	)		96		(582	)

Total other income (expense)		(93	)		(252	)		(874	)		(490	)		113		(576	)


EARNINGS BEFORE INCOME TAXES		14,305			12,880			41,925			39,934			13,699		12,093

INCOME TAX PROVISION		5,203			4,045			14,852			13,373			4,806		4,192

NET EARNINGS	$	9,102		$	8,835		$	27,073		$	26,561		$	8,893	$	7,901


BASIC EARNINGS PER COMMON SHARE	$	0.22		$	0.21		$	0.65		$	0.64		$	0.21	$	0.19

DILUTED EARNINGS PER COMMON SHARE	$	0.22		$	0.21		$	0.64		$	0.63		$	0.21	$	0.19

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC		41,714			41,478			41,647			41,445

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING—BASIC														41,947		41,607
EFFECT OF DILUTIVE STOCK OPTIONS AND RESTRICTED SHARES AND UNITS		379			618			352			669			380		334


WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED		42,093			42,096			41,999			42,114

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING—DILUTED														42,327		41,941

ANTI-DILUTIVE SECURITIES:
Common share options and restricted shares and units		493			337			567			161			450		566


DIVIDENDS DECLARED PER COMMON SHARE	$	0.20		$	0.20		$	0.60		$	0.59		$	0.20	$	0.20

The accompanying notes are an integral part of these condensed consolidated financial statements.


										Three Months Ended
	Three Months Ended June 30,				Nine Months Ended June 30,					December 31,
	2015		2014		2015			2014		2015			2014
NET EARNINGS	$	9,102	$	8,835	$	27,073		$	26,561	$	8,893		$	7,901

Foreign currency translation adjustment		1,357		361		(2,146	)		1,421		(787	)		(1,365	)


COMPREHENSIVE INCOME	$	10,459	$	9,196	$	24,927		$	27,982	$	8,106		$	6,536

The accompanying notes are an integral part of these condensed consolidated financial statements.


Nine Months Ended June 30,	2015			2014
Three Months Ended December 31,							2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings	$	27,073		$	26,561		$	8,893		$	7,901
Non-cash items included in net earnings:
Depreciation of property, plant and equipment		2,585			2,634			896			927
Amortization of intangible assets		1,309			1,549			388			469
Amortization of deferredillumigene instrument costs		1,088			1,281
Amortization of deferredillumigene^® instrument costs								281			395
Stock-based compensation		2,676			2,662			1,611			1,428
Deferred income taxes		(270	)		(438	)		433			100
Loss on disposition and write-down of fixed assets and other assets		39			22
Change in current assets		(4,399	)		(6,804	)		(1,186	)		4,878
Change in current liabilities		796			(4,055	)		834			246
Other, net		299			199			(58	)		(259	)

Net cash provided by operating activities		31,196			23,611			12,092			16,085


CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment		(3,783	)		(3,968	)		(776	)		(1,331	)
Proceeds from sale of assets		1,138			—
Purchase of equity method investment								(600	)		—
Purchases of intangible assets		—			(1,687	)		(16	)		—

Net cash used for investing activities		(2,645	)		(5,655	)		(1,392	)		(1,331	)


CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid		(25,014	)		(24,464	)		(8,407	)		(8,330	)
Proceeds and tax benefits from exercises of stock options		654			629			1,470			499


Net cash used for financing activities		(24,360	)		(23,835	)		(6,937	)		(7,831	)


Effect of Exchange Rate Changes on Cash and Equivalents		(1,263	)		882			(314	)		(454	)

Net Increase (Decrease) in Cash and Equivalents		2,928			(4,997	)

Net Increase in Cash and Equivalents								3,449			6,469
Cash and Equivalents at Beginning of Period		43,047			44,282			49,973			43,047

Cash and Equivalents at End of Period	$	45,975		$	39,285		$	53,422		$	49,516

The accompanying notes are an integral part of these condensed consolidated financial statements.


					December 31, 2015		September 30, 2015
	June 30, 2015 (Unaudited)		September 30, 2014		(Unaudited)
CURRENT ASSETS
Cash and equivalents	$	45,975	$	43,047	$	53,422	$	49,973
Accounts receivable, less allowances of $256 and $272		27,963		23,232
Accounts receivable, less allowances of $222 and $248						27,617		26,254
Inventories		33,592		35,495		38,778		35,817
Prepaid expenses and other current assets		6,439		7,058		3,414		7,378
Deferred income taxes		4,006		3,916


Total current assets		117,975		112,748		123,231		119,422


PROPERTY, PLANT AND EQUIPMENT, at Cost
Land		984		1,173		981		986
Buildings and improvements		29,872		29,146		30,119		30,056
Machinery, equipment and furniture		41,761		40,192		42,363		41,541
Construction in progress		535		652		938		1,139

Subtotal		73,152		71,163		74,401		73,722
Less: accumulated depreciation and amortization		45,771		43,553		46,952		46,230


Net property, plant and equipment		27,381		27,610		27,449		27,492


OTHER ASSETS
Goodwill		22,784		23,193		22,064		22,349
Other intangible assets, net		6,374		7,813		5,465		5,931
Restricted cash		1,000		1,000		1,000		1,000
Deferredillumigene instrument costs, net		2,000		2,740		1,671		1,750
Deferred income taxes		1,398		1,483		4,566		4,954
Other assets		404		342		989		384


Total other assets		33,960		36,571		35,755		36,368


TOTAL ASSETS	$	179,316	$	176,929	$	186,435	$	183,282

The accompanying notes are an integral part of these condensed consolidated financial statements.


						December 31, 2015			September 30, 2015
	June 30, 2015 (Unaudited)			September 30, 2014		(Unaudited)
CURRENT LIABILITIES
Accounts payable	$	5,453		$	4,966	$	7,208		$	6,646
Accrued employee compensation costs		4,236			4,761		4,990			5,132
Other accrued expenses		2,630			3,149		2,601			2,587
Income taxes payable		969			859		933			886


Total current liabilities		13,288			13,735		15,732			15,251


NON-CURRENT LIABILITIES		2,097			2,165		2,129			2,158

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS’ EQUITY
Preferred stock, no par value, 1,000,000 shares authorized, none issued		—			—
Common shares, no par value, 71,000,000 shares authorized, 41,714,185 and 41,622,216 shares issued, respectively		—			—
Preferred stock, no par value; 1,000,000 shares authorized; none issued							—			—
Common shares, no par value; 71,000,000 shares authorized; 42,044,388 and 41,838,399 shares issued, respectively							—			—
Additional paid-in capital		114,840			111,851		120,153			117,151
Retained earnings		50,928			48,869		51,538			51,052
Accumulated other comprehensive income		(1,837	)		309

Accumulated other comprehensive income (loss)							(3,117	)		(2,330	)

Total shareholders’ equity		163,931			161,029		168,574			165,873


TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	179,316		$	176,929	$	186,435		$	183,282

The accompanying notes are an integral part of these condensed consolidated financial statements.

Condensed Consolidated Statement of Changes in Shareholders’ Equity (Unaudited)


	Common Shares Issued		Additional Paid-In Capital		Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total Shareholders’ Equity			Common Shares Issued		Additional Paid-In Capital		Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total Shareholders’ Equity

Balance at September 30, 2014		41,622	$	111,851	$	48,869		$	309		$	161,029
Balance at September 30, 2015															41,838	$	117,151	$	51,052		$	(2,330	)	$	165,873
Cash dividends paid		—		—		(25,014	)		—			(25,014	)		—		—		(8,407	)		—			(8,407	)
Exercise of stock options		65		313		—			—			313			91		1,391		—			—			1,391
Conversion of restricted stock units		27		—		—			—			—			115		—		—			—			—
Stock compensation expense		—		2,676		—			—			2,676			—		1,611		—			—			1,611
Net earnings		—		—		27,073			—			27,073			—		—		8,893			—			8,893
Foreign currency translation adjustment		—		—		—			(2,146	)		(2,146	)		—		—		—			(787	)		(787	)

Balance at June 30, 2015		41,714	$	114,840	$	50,928		$	(1,837	)	$	163,931
Balance at December 31, 2015															42,044	$	120,153	$	51,538		$	(3,117	)	$	168,574

The accompanying notes are an integral part of these condensed consolidated financial statements.

The interim condensed consolidated financial statements are unaudited and are prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information, and the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. In the opinion of Management, the interim financial statements include all normal adjustments and disclosures necessary to present fairly the Company’s financial position as of ~~June 30,~~December 31, 2015, the results of its operations for the three ~~and nine~~ month periods ended ~~June 30,~~December 31, 2015 and 2014, and its cash flows for the ~~nine~~three month periods ended ~~June 30,~~December 31, 2015 and 2014. These statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s fiscal ~~2014~~2015 Annual Report on Form 10-K. Financial information as of September 30, ~~2014~~2015 has been derived from the Company’s audited consolidated financial statements.

The results of operations for interim periods are not necessarily indicative of the results to be expected for the year.

A summary of the Company’s significant accounting policies is included in Note 1 to the audited consolidated financial statements of the Company’s fiscal 2015 Annual Report on Form 10-K.

~~Revenue is generally recognized from sales when product is shipped and title has passed to~~In November 2015, the ~~customer. Revenue for~~FASB issued ASU 2015-17,Balance Sheet Classification of Deferred Taxes, which simplifies the ~~Diagnostics segment is reduced at the date~~financial statement presentation of ~~sale for product price adjustments due certain distributors under local contracts. Management estimates accruals for distributor price adjustments based on local contract terms, sales data provided~~deferred income taxes by ~~distributors, estimates of inventories of certain of our products held by distributors, historical statistics, current trends, and other factors. Changes to the accruals are recorded in the period~~requiring that ~~they become known. Such accruals were $4,431 at June 30, 2015 and $4,220 at September 30, 2014, and have been netted against accounts receivable.~~

~~Revenue for our Diagnostics segment includes revenue for our~~~~illumi~~~~gene~~^® molecular test system. This system includes an instrument, instrument accessories and test kits. In markets where the test system is sold via multiple deliverable arrangements, the cost of the instrument and instrument accessories is deferred ~~upon placement at a customer and amortized on a straight-line basis into cost of sales over the expected utilization period, generally three years.~~

We evaluate whether each deliverable in the arrangement is a separate unit of accounting. The significant deliverables are an instrument, instrument accessories (e.g., printer) and test kits. An instrument and instrument accessories are delivered to the customer prior to the start of the customer utilization period, in order to accommodate customer set-up and installation. There is~~de minimis~~ consideration received from the customer at the time of instrument placement. We have determined that the instrument and instrument accessories are not a separate unit of accounting because such equipment can only be used to process and read the results from our~~illumi~~~~gene~~ diagnostic tests (i.e., our instrument and test kits function together to deliver a diagnostic test result), and therefore the instrument and instrument accessories do not have standalone value to the customer. Consequently, there is no revenue allocated to the placement of the instrument and instrument accessories. Test kits are delivered to the customer over the utilization period of the instrument, which we estimate has a useful life of three years. Our average customer contract period, including estimated renewals, is at least equal to the estimated three-year utilization period. Revenue for the sale of test kits is recognized upon shipment and transfer of title to the customers.

In markets where the test system is not sold via multiple deliverable arrangements, the cost of the instrument and instrument accessories is charged to cost of sales at the time of shipment and transfer of title to the customer. Revenue for the sales of instruments and instrument accessories and test kits is recognized upon shipment and transfer of title to the customers. In these markets, our~~illumi~~~~gene~~~~molecular test system is sold to independent distributors who inventory the instruments, instrument accessories and test kits for resale to end-users.~~

Our products are generally not subject to a customer right of return except for product recall events under the rules and regulations of the Food and Drug Administration or equivalent agencies outside the United States. In this circumstance, the costs to replace affected products would be accrued at the time a loss was considered to be probable and estimable.

Life Science revenue for contract services may come from research and development services or manufacturing services, including process development work, or a combination of both. Revenue is recognized based on each of the deliverables in a given arrangement having distinct and separate customer pricing. Depending on the nature of the arrangement, revenue is recognized as services are performed and billed, upon completion and acceptance by the customer, or upon delivery of product and acceptance by the customer.

Trade accounts receivable are recorded in the accompanying Condensed Consolidated Balance Sheets at invoiced amounts less provisions for distributor price adjustments under local contracts and doubtful accounts. The allowance for doubtful accounts represents our estimate of probable credit losses and is based on historical write-off experience and known conditions that would likely lead to non-payment. The allowance for doubtful accounts and related metrics, such as days’ sales outstanding, are reviewed monthly. Accounts with past due balances over 90 days are reviewed individually for collectibility. Customer invoices are charged off against the allowance when we believe it is probable that the invoices will not be paid.

~~As reflected in the accompanying Condensed Consolidated Statements of Comprehensive Income, our comprehensive~~ income ~~or loss is comprised of net earnings and foreign currency translation.~~

Assets and liabilities of foreign operations are translated using period-end exchange rates with gains or losses resulting from translation included as a separate component of comprehensive income or loss. Revenues and expenses are translated using exchange rates prevailing during the period. We also recognize foreign currency transaction gains and losses on certaintax assets and liabilities ~~that are denominated~~be classified as noncurrent within a classified statement of financial position. Adoption and implementation of the guidance is not required by the Company until issuance of fiscal 2018 first quarter financial statements. However, in light of early adoption being permitted and believing the required presentation results in more useful and comparable information related to our net deferred income tax assets, the Company has chosen to adopt the guidance as of December 31, 2015 and retrospectively apply the guidance to the prior period presented. This retrospective application results in $3,431 of deferred income tax assets being reclassified from current assets to non-current assets in the ~~non-functional currencies~~September 30, 2015 balance sheet included herein. Adoption of ~~the Company or its subsidiaries. These gains and losses are included in other income and expense in the accompanying Condensed Consolidated Statements of Operations.~~

The provision for income taxes includes federal, foreign, state and local income taxes currently payable and those deferred because of temporary differences between income for financial reporting and income for tax purposes. We prepare estimates of permanent and temporary differences between income for financial reporting purposes and income for tax purposes. These differences are adjusted to actual upon filing of our tax returns, typically occurring in the third and fourth quarters of the current fiscal year for the preceding fiscal year’s estimates.

We account for uncertain tax positions using a benefit recognition model with a two-step approach: (i) a more-likely-than-not recognition criterion; and (ii) a measurement attribute that measures the position as the largest amount of tax benefit that is greater than 50% likely of being ultimately realized upon settlement. If it is not more likely than not that the benefit will be sustained on its technical merits, no benefit is recorded. We recognize accrued interest and penalties related to unrecognized tax benefits as a portion of our income tax provision in the Condensed Consolidated Statements of Operations.

In September 2013, the Internal Revenue Service issued Treasury Decision 9636, which enacted final tax regulations regarding the capitalization and expensing of amounts paid to acquire, produce or improve tangible property. The regulations also includethis guidance ~~regarding the retirement of depreciable property. Our adoption of these regulations on October 1, 2014~~ did not have ~~a significant~~an impact on the Company’s consolidated results of operations or cash ~~flows or financial position.~~

~~We recognize compensation expense for all share-based awards made~~Issued but not yet effective accounting pronouncements are not expected to ~~employees, based upon the fair value of the share-based award~~have a material impact on the date of the grant. Awards are expensed over their requisite service periods. For awards which vest solely on future service, we begin to expense such awards on the date of grant. For awards with performance conditions, we begin to expense such awards in the period upon which we believe there is sufficient evidence to support that it is probable that the performance condition(s) will be achieved.Condensed Consolidated Financial Statements.

~~In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09,~~~~Revenue from Contracts with Customers~~, which supersedes and replaces nearly all currently-existing U.S. GAAP revenue recognition guidance including related disclosure requirements. Considering the FASB’s recent effective date deferral, this guidance will be effective for the Company beginning October 1, 2018 (fiscal 2019). The Company has not yet completed its assessment of the impact that adoption of this guidance will have on its financial statements.

Certain reclassifications have been made to the prior ~~fiscal~~ period financial statements to conform to the current fiscal period presentation. Such reclassifications had no impact on net earnings or shareholders’ equity.


	June 30, 2015		September 30, 2014		December 31, 2015		September 30, 2015
Raw materials	$	6,637	$	5,674	$	7,351	$	7,095
Work-in-process		9,189		10,591		12,297		10,096
Finished goods -*illumi*gene instruments		1,277		1,710
Finished goods - kits and reagents		16,489		17,520
Finished goods—*illumi*gene instruments						2,260		1,890
Finished goods—kits and reagents						16,870		16,736

Total	$	33,592	$	35,495	$	38,778	$	35,817

Meridian was formed in 1976 and functions as a fully-integrated research, development, manufacturing, marketing and sales organization with primary emphasis in the fields of in vitro diagnostics and life science. Our principal businesses are (i) the development, manufacture and distribution of diagnostic test kits primarily for gastrointestinal, viral, respiratory and parasitic infectious diseases; and (ii) the manufacture and distribution of bulk antigens, antibodies, PCR/qPCR reagents, nucleotides, competent cells and bioresearch reagents used by researchers and other diagnostic manufacturers, and the contract development and manufacture of proteins and other biologicals for use by biopharmaceutical and biotechnology companies engaged in research for new drugs and vaccines.

Our reportable segments are Diagnostics and Life Science, both of which are headquartered in Cincinnati, Ohio, which also serves as the Diagnostics segment’s base of manufacturing operations and research and development. The Diagnostics segment has sales and distribution facilities in the United States, Europe and Australia. The Life Science segment consists of manufacturing operations in Memphis, Tennessee; Boca Raton, Florida; London, England; Luckenwalde, Germany; and Sydney, Australia, and the sale and distribution of bulk antigens, antibodies, PCR/qPCR reagents, nucleotides, competent cells and bioresearch reagents domestically and abroad, including sales and business development offices in Singapore and Beijing, China to further pursue growing revenue opportunities in Asia. The Life Science segment also includes the contract development and manufacture of cGMP clinical grade proteins and other biologicals for use by biopharmaceutical and biotechnology companies engaged in research for new drugs and vaccines.

Amounts due from two Diagnostics distributor customers accounted for ~~23%~~26% and ~~15%~~21% of consolidated accounts receivable at ~~June 30,~~December 31, 2015 and September 30, ~~2014,~~2015, respectively. Revenues from these two distributor customers accounted for ~~35%~~39% and ~~36%~~41% of the Diagnostics ~~segment’s~~segment third-party revenues during the three months ended ~~June 30,~~December 31, 2015 and 2014, ~~respectively,~~respectively; and ~~36% during each of the nine months ended June 30, 2015~~represented 29% and ~~2014. These distributors represented 27%~~31% of consolidated revenues for ~~each of~~ the fiscal 2016 and 2015 ~~and 2014 third~~first quarters, ~~and 27% and 28% for the fiscal 2015 and 2014 year-to-date nine month periods,~~ respectively. In addition, approximately $2,000 and $2,700 of our consolidated accounts receivable at June 30, 2015 and September 30, 2014, respectively, was due from Italian hospital customers whose funding ultimately comes from the Italian government, representing 7% and 12% of consolidated accounts receivable in each of the respective periods.

Within our Life Science segment, two diagnostic manufacturing customers accounted for ~~16%~~18% of the segment’s third-party revenues during each of the three months ended ~~June 30,~~December 31, 2015 and ~~2014, and 16% and 17% during the nine months ended June 30, 2015 and 2014, respectively.~~2014.

Transactions between segments are accounted for at established intercompany prices for internal and management purposes, with all intercompany amounts eliminated in consolidation.

A summary of our acquired intangible assets subject to amortization, as of ~~June 30,~~December 31, 2015 and September 30, ~~2014,~~2015 is as follows:


	June 30, 2015				September 30, 2014
	Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization		December 31, 2015				September 30, 2015
									Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Manufacturing technologies, core products and cell lines	$	11,635	$	10,849	$	11,685	$	10,568	$	11,547	$	10,963	$	11,582	$	10,906
Trademarks, licenses and patents		6,390		3,167		6,463		2,766		6,349		3,450		6,410		3,296
Customer lists and supply agreements		12,246		9,881		12,378		9,379		12,012		10,030		12,105		9,964

	$	30,271	$	23,897	$	30,526	$	22,713	$	29,908	$	24,443	$	30,097	$	24,166

The actual aggregate amortization expense for these intangible assets was ~~$409~~$388 and ~~$507~~$469 for the three months ended ~~June 30, 2015 and 2014, respectively, and $1,309 and $1,549 for the nine months ended June 30,~~December 31, 2015 and 2014, respectively. The estimated aggregate amortization expense for these intangible assets for each of the fiscal years through fiscal ~~2020~~2021 is as follows: remainder of fiscal ~~2015 – $402, fiscal~~ 2016 – ~~$1,369,~~$1,009, fiscal 2017 – ~~$1,141,~~$1,106, fiscal 2018 – ~~$1,120,~~$1,085, fiscal 2019 – ~~$1,079 and~~$1,045, fiscal 2020 – ~~$903.~~$873 and fiscal 2021 – $313.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Refer to ~~“Forward Looking~~“Forward-Looking Statements” following the Table of Contents in front of this Form 10-Q. In the discussion that follows, all dollar amounts are in thousands (both tables and text), except per share data.

Following is a discussion and analysis of the financial statements and other statistical data that management believes will enhance the understanding of Meridian’s financial condition, changes in financial condition and results of operations. This discussion should be read in conjunction with the financial statements and notes thereto beginning on page 1.

~~As more fully detailed below, the third quarter~~Results of fiscal 2015 was highlighted by our Diagnostics segment’s launch of our newest molecular-based tests for the detection of Herpes Simplex Virus Type 1 (“HSV-1”) and Type 2 (“HSV-2”) outside of the U.S. and our Life Science segment’s continued successful expansion into China, as revenues from sales into China now exceed $1,500 in fiscal 2015 year-to-date. During July 2015, we received FDA clearance for our~~illumi~~~~gene~~^®~~HSV 1&2 tests and began selling in the U.S. market.~~

Net earnings for the ~~third~~first quarter of fiscal ~~2015~~2016 increased 3%13% to ~~$9,102,~~$8,893, or ~~$0.22~~$0.21 per diluted share, from net earnings for the ~~third~~first quarter of fiscal ~~2014~~2015 of ~~$8,835,~~$7,901, or ~~$0.21~~$0.19 per diluted share. This increase reflects the combined effects of increased revenues, increased gross profit margins and slightly decreased operating expenses. Also impacting the quarterly results was an increase in the effective tax rate, as discussed below, which had an approximate $0.01 impact on diluted earnings per share. Consolidated revenues ~~increased~~decreased 2% to ~~$48,204~~$47,160 for the ~~third~~first quarter of fiscal ~~2015~~2016 compared to the same period of the prior year ~~increasing 5%~~and were flat on a constant-currency basis.

Included within the ~~third~~first quarter ~~2015 results~~of fiscal 2016 were revenues from ourillumigene^®molecular platform of products totaling ~~$10,500,~~$9,836, representing a ~~10% increase over~~1% decrease from the fiscal ~~2014 third quarter.~~2015 first quarter (flat on a constant-currency basis). Also contributing to the ~~increase in~~ consolidated revenues decrease were ~~increased~~decreased revenues in ~~two~~three of our diagnostic focus product families (~~H. pylori~~C. difficile, foodborne and respiratory) and our Life Science segment’s ~~immunoassay components business.~~molecular component business line. Serving to ~~partially~~substantially offset these ~~increases~~decreases were ~~decreased~~increased revenues in our~~C. difficile~~H. pylori and ~~foodborne~~women’s health & STD focus product families and our Life Science segment’s ~~molecular~~immunoassay components business.

Revenues for the Diagnostics segment for the ~~third~~first quarter of fiscal 2016 decreased 4% compared to the first quarter of fiscal 2015 ~~increased 3% compared to the third quarter of fiscal 2014 (5%~~(decreased 2% on a constant-currency basis), reflecting the following for each of our focus product families: 8%2% decline in ourC. difficile products, 9% decline in our respiratory products, 11% decline in our foodborne products, 7% growth in our women’s health & STD products, and 19% growth in ourH. pylori ~~products, 35% growth in our respiratory products, 2% decline in our foodborne products, and 8% decline in our~~~~C. difficile~~products. ~~As it relates to our respiratory products, the growth was driven by several products in both our molecular and immunoassay categories. Our molecular products (~~~~illumi~~~~gene~~ ~~Group A Strep,~~~~illumi~~~~gene~~ ~~Mycoplasma and~~~~illumi~~~~gene~~ ~~Pertussis) experienced volume growth from new assay placements. Our immunoassay products (influenza and Mycoplasma) experienced growth in distribution channels.~~ With growth in its immunoassay ~~components~~component business and a decline in its molecular components business, revenues of our Life Science segment increased by 1%4% during the ~~third~~first quarter of fiscal ~~2015~~2016 compared to the ~~third~~first quarter of fiscal ~~2014, increasing 5% on a constant-currency basis.~~

For the nine month period ended June 30, 2015, net earnings increased 2% to $27,073, or $0.64 per diluted share, from net earnings for the comparable fiscal 2014 period of $26,561, or $0.63 per diluted share. This increase reflects the combined effects of increased revenues, slightly decreased gross profit margins and increased operating expenses. Consolidated revenues increased 4% to $147,762 for the first nine months of fiscal 2015 compared to the same period of the prior fiscal year, increasing 6% on a constant-currency basis.

~~Included within~~Additionally, during November 2015, we made a minority investment in Oasis Diagnostics^® Corporation (“Oasis”), with the ~~nine month year-to-date fiscal 2015 results were revenues from our~~~~illumi~~~~gene~~ ~~molecular platform~~right to acquire 100% ownership interest in the future. Located in Vancouver, Washington, Oasis designs, develops, manufactures and sells pre-analytic tools for the collection, preservation, and transportation of products totaling $30,600, representing a 10% increase over the first nine months of fiscal 2014. Also contributing to the consolidated revenue increase were increased revenues in three of our diagnostic focus product families (~~H. pylori~~~~, foodborne and respiratory)~~saliva/oral fluids – and our ~~Life Science segment’s immunoassay components business. Serving~~investment was made to ~~partially offset these increases were decreased revenues~~explore our interest in ~~our~~~~C. difficile~~ ~~focus product family~~saliva diagnostics and ~~our Life Science segment’s molecular components business.~~collection devices. Our investment in Oasis has been accounted for as an equity method investment and is included within other assets in the accompanying Condensed Consolidated Balance Sheet as of December 31, 2015.

During the first nine months of fiscal 2015, revenues for the Diagnostics segment increased 4% from the comparable fiscal 2014 period (6% on a constant-currency basis), reflecting the following for each of our focus product families: 10% growth in our~~H. pylori~~ ~~products, 10% growth in our foodborne products, 23% growth in our respiratory products, and 10% decline in our~~~~C. difficile~~ ~~products. During the first nine months of fiscal 2015, revenues for our Life Science segment increased 4%, 7% on a constant-currency basis.~~

Below are analyses of the Company’s revenue, provided for each of the following:

Our reportable segments are Diagnostics and Life Science. The Diagnostics segment consists of manufacturing operations in Cincinnati, Ohio, and the sale and distribution of diagnostic test kits in the countries comprising North, Central and South America (the “Americas”); Europe, Middle East and Africa (“EMEA”); and other countries outside of the Americas and EMEA (rest of the world, or “ROW”). The Life Science segment consists of manufacturing operations in Memphis, Tennessee; Boca Raton, Florida; London, England; Luckenwalde, Germany; and Sydney, Australia, and the sale and distribution of bulk antigens, antibodies, PCR/qPCR reagents, nucleotides, competent cells and bioresearch reagents domestically and abroad, including a sales and business development ~~location~~offices in ~~Singapore. Additionally, in order~~Singapore and Beijing, China to further pursue growing revenue opportunities in ~~Asia, and China in~~

particular, our Life Science segment has opened a business development office in Beijing, China. The Life Science segment also includes the contract development and manufacture of cGMP clinical grade proteins and other biologicals for use by biopharmaceutical and biotechnology companies engaged in research for new drugs and vaccines.Asia.

Revenues for the Diagnostics segment, in the normal course of business, may be affected from quarter to quarter by buying patterns of major distributors, seasonality and strength of certain diseases, and foreign currency exchange rates. Revenues for the Life Science segment, in the normal course of business, may be affected from quarter to quarter by ~~the timing and nature of arrangements for contract services work, which may have longer production cycles than bioresearch reagents and bulk antigens and antibodies, as well as~~ buying patterns of major customers and foreign currency exchange rates. We believe that the overall breadth of our product lines serves to reduce the variability in consolidated revenues due to these factors.


	Three Months Ended June 30,									Nine Months Ended June 30,									Three Months Ended December 31,
	2015			2014			Inc (Dec)			2015			2014			Inc (Dec)			2015			2014			Inc (Dec)
Diagnostics-
Americas	$	30,410		$	28,881			5	%	$	93,502		$	87,454			7	%	$	30,115		$	30,913			(3	)%
EMEA		4,651			5,485			(15	)%		15,184			16,810			(10	)%		4,649			5,003			(7	)%
ROW		988			802			23	%		2,611			2,802			(7	)%		537			670			(20	)%

Total Diagnostics		36,049			35,168			3	%		111,297			107,066			4	%		35,301			36,586			(4	)%


Life Science-
Americas		5,065			4,842			5	%		16,274			14,257			14	%		5,103			5,299			(4	)%
EMEA		4,877			5,278			(8	)%		13,637			15,287			(11	)%		4,536			3,758			21	%
ROW		2,213			1,924			15	%		6,554			5,530			19	%		2,220			2,370			(6	)%

Total Life Science		12,155			12,044			1	%		36,465			35,074			4	%		11,859			11,427			4	%

Consolidated	$	48,204		$	47,212			2	%	$	147,762		$	142,140			4	%	$	47,160		$	48,013			(2	)%


% of total revenues-
Diagnostics		75	%		74	%					75	%		75	%					75	%		76	%
Life Science		25	%		26	%					25	%		25	%					25	%		24	%

Total		100	%		100	%					100	%		100	%					100	%		100	%

Ex-Americas		26	%		29	%					26	%		28	%					25	%		25	%

The revenues generated by each of our reportable segments result primarily from the sale of the following segment-specific categories of products:

Revenues for each product platform/type, as well as its relative percentage of segment revenue, are shown below.


	Three Months Ended June 30,									Nine Months Ended June 30,									Three Months Ended December 31,
	2015			2014			Inc (Dec)			2015			2014			Inc (Dec)			2015			2014			Inc (Dec)
Diagnostics-
Molecular tests	$	10,550		$	9,578			10	%	$	30,650		$	27,865			10	%
Immunoassay tests		25,499			25,590			—	%		80,647			79,201			2	%
Molecular																			$	9,836		$	9,908			(1	)%
Immunoassay																				25,465			26,678			(5	)%

Total Diagnostics	$	36,049		$	35,168			3	%	$	111,297		$	107,066			4	%	$	35,301		$	36,586			(4	)%


Life Science-
Molecular components	$	5,104		$	5,476			(7	)%	$	15,009		$	15,369			(2	)%	$	4,749		$	5,012			(5	)%
Immunoassay components		7,051			6,568			7	%		21,456			19,705			9	%		7,110			6,415			11	%

Total Life Science	$	12,155		$	12,044			1	%	$	36,465		$	35,074			4	%	$	11,859		$	11,427			4	%


% of Diagnostics revenues-
Molecular tests		29	%		27	%					28	%		26	%
Immunoassay tests		71	%		73	%					72	%		74	%
Molecular																				28	%		27	%
Immunoassay																				72	%		73	%

Total Diagnostics		100	%		100	%					100	%		100	%					100	%		100	%


% of Life Science revenues-
Molecular components		42	%		45	%					41	%		44	%					40	%		44	%
Immunoassay components		58	%		55	%					59	%		56	%					60	%		56	%

Total Life Science		100	%		100	%					100	%		100	%					100	%		100	%

Following is a discussion of the revenues generated by each of these product platforms/types:

~~Following our launch outside the U.S. of~~~~illumi~~~~gene~~~~HSV 1&2 during the third quarter of fiscal 2015 and~~~~illumi~~~~gene Chlamydia trachomatis~~ ~~and~~~~illumi~~~~gene~~~~Neisseria gonorrhea~~ ~~during the second quarter of fiscal 2015, we now~~We have approximately ~~1,425~~1,490 customer account placements. Of these account placements, ~~approximately 1,275~~over 1,300 accounts have completed evaluations and validations and are regularly purchasing product, with the balance of our account placements being in some stage of product evaluation and/or validation. Of our account placements, we have ~~approximately~~over 400 accounts that are regularly purchasing, evaluating and/or validating two or more assays.

We continue to invest in new product development for our molecular testing platform,illumigene. This platform now has the following commercialized tests:

2.illumigene^® Group BStreptococcus (Group B Strep or GBS) – commercialized in December 2011

3.illumigene^® Group AStreptococcus (Group A Strep) – commercialized in September 2012

4.illumigene^® Mycoplasma (M. pneumonia; walking pneumonia) – commercialized in June 2013

5.illumigene^®Bordetella pertussis (whooping cough) – commercialized in March 2014

6.illumigene^®Chlamydia trachomatis – commercialized outside of U.S. in February 2015

7.illumigene^®Neisseria gonorrhea – commercialized outside of U.S. in February 2015

8.illumigene^® HSV 1&2 (Herpes Simplex Virus Type 1 & Type 2) – commercialized outside of U.S. in May 2015; commercialized in U.S. in July 2015

~~Additional~~We have several additionalillumigene tests in ~~research~~development and ~~development include foodborne pathogens such as~~have a robust pipeline of~~Campylobacter jejuni~~illumi~~, and bloodborne pathogens such as~~gene opportunities. We continue to add new assays to ourillumigene platform menu, with our latest being malaria, which was launched in the ~~causative agents for malaria.~~EMEA region in February 2016.

We believe that the diagnostic testing market is continuing to selectively move away from culture and immunoassay testing to molecular testing for diseases where there is a favorable cost/benefit position for the total cost of health care. While this market is competitive, with molecular companies such as Cepheid and Becton Dickinson and others such as Quidel, Great Basin, Nanosphere, and Alere, we believe we are well positioned to capitalize on the migration to molecular testing. Our simple, easy-to-use,illumigene platform, with its expanding menu, requires no expensive equipment purchase and little to no maintenance cost. We believe these features, along with its small footprint and the performance of theillumigene assays, makeillumigene an attractive molecular platform to any size hospital or physician office laboratory that runs moderately-complex tests.

~~Our~~Revenues from our Diagnostics segment’s ~~revenues from~~ immunoassay products decreased ~~less than 1% for~~5% in the first quarter ~~and increased 2% on a nine month, year-to-date basis.~~of fiscal 2016. As described in the product discussions below, the ~~quarterly revenue growth of our~~~~H. pylori~~ ~~and respiratory products was slightly more than offset by~~current year decrease results primarily from the decline in revenues ~~from~~of our foodborne, ~~and~~C. difficile ~~products. The year-to-date increase results primarily from the revenue growth of our~~~~H. pylori~~~~, foodborne~~ and respiratory immunoassay products, partially offset by the ~~decline~~revenue increase in ~~revenues from~~ our~~C. difficile~~H. pylori products.

During the ~~third~~first quarter of fiscal 2015, revenues from our Life Science segment increased 1%, with revenues from molecular components sales decreasing 7% from the comparable fiscal 2014 quarter and revenues from immunoassay components sales increasing 7%. For the first nine months of fiscal 2015,2016, revenues from our Life Science segment increased 4%, with revenues from molecular ~~components~~component sales decreasing 2%5% from the comparable ~~prior year period~~fiscal 2015 quarter and revenues from immunoassay ~~components~~component sales increasing 9%11%. Our molecular ~~components~~component business’ growth was negatively impacted by the movement in currency exchange rates since the ~~2014 third~~fiscal 2015 first quarter, with the revenues increasing ~~2% and 4%~~less than 1% on a constant-currency basis ~~for~~over the ~~quarterly and year-to-date periods, respectively.~~fiscal 2015 first quarter. Our Life Science segment continued to benefit from increased sales into China, with such sales totaling approximately ~~$1,600 for~~$500 during the fiscal 2016 first ~~nine months of fiscal 2015 (approximately $400 in the molecular components business and $1,200~~quarter (primarily in the immunoassay components business).

Revenues from our focus families (C. difficile, foodborne,H. pylori, respiratory and ~~respiratory)~~women’s health & STD) comprised ~~74%~~81% and 78% of our Diagnostics segment’s ~~revenue~~revenues during the ~~third~~first quarter ~~and first nine months~~ of fiscal 2016 and 2015, ~~and 73% for both of the comparable fiscal 2014 periods.~~respectively. Following is a discussion of the revenues generated by each product family:

~~Revenues~~During the fiscal 2016 first quarter, revenues for ourC. difficile product family decreased 8%2% to ~~$8,200 for~~$7,400 from the first quarter of fiscal 2015 ~~third quarter, and decreased 10% to $24,000 for the nine month, year-to-date period.~~(flat in constant-currency). Our molecular products now represent ~~approximately~~over 80% of this product ~~category, and new customers are being added each quarter.~~category. TheC. difficile test market continues to be highly competitive, with over 10 suppliers in the United States, certain of which choose to compete solely on

price. During the first quarter of fiscal 2016, the amount and rate of decline in constant-currency revenues has continued to decrease. We believe ~~that~~this is due largely to the ~~following factors will help us respond to these highly competitive market conditions: (i) our marketing programs emphasize that we are the only company that can offer a full range~~expansion of ~~high performing, FDA cleared,~~~~C. difficile~~ ~~testing formats, including toxin, GDH and molecular tests; (ii)~~ ourillumigene molecular platform ~~with its expanding differentiated~~ menu ~~affords both an opportunity to grow the platform utilization within the hospital, as well as protect against competitive threats; and (iii)~~having a positive effect on defending our~~illumi~~~~gene~~C. difficile ~~molecular platform requires no expensive equipment purchase or maintenance contract, which we believe makes it an attractive and affordable option for any size hospital.~~business.

Revenues ~~for~~from our foodborne products (EnterohemorrhagicE. coli~~(“EHEC”)~~(EHEC) andCampylobacter), all of which are immunoassay products, totaled ~~$5,700~~$5,300 during the first quarter of fiscal ~~2015 third quarter, a 2%~~2016, an 11% decrease from the fiscal ~~2014 third quarter. During the nine months ended June 30,~~ 2015 ~~foodborne revenues totaled $18,500, a 10% increase from the fiscal 2014 year-to-date period.~~first quarter (also 11% in constant-currency). Revenues for our foodborne products ~~on a quarterly basis (up 5% in~~during the first quarter ~~up 27% in the second quarter and down 2% in the third quarter) have been~~of fiscal 2016 were affected by distributor ordering ~~patterns and our inside and field sales programs designed to protect and expand upon our current customer base through the addition of new customers adopting rapid tests and competitive takeaways.~~patterns. We are continuing to re-emphasize the benefits of increased sensitivity and faster turnaround time versus culture methods in our marketing programs. The primary competition

for our foodborne products is laboratory culture methods and an immunoassay EHEC shiga toxin test from one of our competitors. We believe that our test offers better workflow, less hands-on time and quicker results, in addition to being fully compliant with CDC-recommended testing methods. More recently, multi-plex gastro-intestinal panels are introducing new competition in this product category.

During the ~~third~~fiscal 2016 first quarter, ~~of fiscal 2015,~~ revenues from ourH. pylori products, all of which are immunoassay products, ~~grew 8%~~increased 19% (22% in constant-currency) to ~~$8,000. These revenues grew 10% to $23,000 during the first nine months of fiscal 2015. These increases continue~~$8,700. This increase continues to reflect the benefits of our partnerships with managed care companies in promoting (i) the health and economic benefits of a test and treat strategy; (ii) changes in policies that discourage the use of traditional serology methods and promote the utilization of active infection testing methods; and (iii) physician behavior movement away from serology-based testing and toward direct antigen testing. A significant amount of theH. pylori product revenues are sales to reference labs, whose buying patterns may not be consistent from period to period. In addition to our managed care strategy, we have also begun to increase sales promotions into selected distribution and laboratory channels as a defensive strategy against potential new competitive product introductions later in the year.

The patents for ourH. pylori products are owned by us and expire in May 2016 in the U.S. and in 2017 in countries outside the U.S. We expect competition with respect to ourH. pylori products to increase upon the expiration of these patents in 2016 and 2017 as we currently market the only FDA-cleared test to detectH. pylori antigen in stool samples. Such competition may have an adverse impact on our selling prices for these products, or our ability to retain business at prices acceptable to us, and consequently, adversely affect our future results of operations and liquidity, including revenues and gross profit. In order to mitigate any loss in revenues upon patent expiration, among other things, we are researching and experimenting with new products (e.g., detection ofH. pylori ~~in samples other than stool and detection of~~~~H. pylori~~on molecular platforms). and attempting to secure significant customers under long-term contracts. We are unable to provide any assurances that we will be successful with any mitigation strategy or that any mitigation strategy will prevent an adverse effect on our future results of operations and liquidity, including revenues and gross profit.

Total respiratory revenues ~~from~~for our Diagnostics segment ~~increased 35%~~decreased 9% to ~~$5,000~~$5,600 during the first quarter of fiscal 2016 (decreased 8% in constant-currency). This decline was largely due to the success of promotional “stock-and-block” programs in the third (influenza) and fourth (Group A strep) quarters of fiscal 2015 that affected buying patterns in the first quarter of fiscal 2016.

Revenues from our women’s health & STD products, all of which are molecular products, totaled $1,700 during the first quarter of fiscal 2016, a 7% increase from the fiscal 2015 ~~third quarter; and increased 23% to $17,000 for~~first quarter (also 7% in constant-currency). This growth primarily reflects the ~~nine month year-to-date period. Growth was driven by several products in both~~results of our ~~molecular and immunoassay categories. Our molecular products (~~commercialization during fiscal 2015 of threeillumigene ~~Group A Strep,~~~~illumi~~~~gene~~tests for sexually transmitted diseases (Chlamydia, Gonorrhea and HSV). ~~Mycoplasma and~~~~illumi~~~~gene~~ Pertussis) experienced volume growth from new assay placements. Our immunoassay products (influenza and Mycoplasma) experienced growth as a result of increases in Japanese orders of our Mycoplasma product and a large purchase by a distributor of influenza product in advance of the influenza season.

During the third quarter of fiscal 2015, currency exchange rates had a $1,500 unfavorable impact on revenue; $1,000 unfavorable within the Diagnostics segment and $500 unfavorable within the Life Science segment. On a nine month year-to-date basis, currency exchange rates had a $3,500 unfavorable impact on revenue; $2,500 unfavorable within the Diagnostics segment and $1,000 unfavorable within the Life Science segment.

Two U.S. distributors accounted for ~~35%~~39% and ~~36%~~41% of our Diagnostics segment’s total revenues for the ~~third~~first quarter of fiscal 2016 and 2015, respectively. These revenues represented 29% and ~~2014, respectively, and 36% during each of the nine months ended June 30, 2015 and 2014. These distributors represented 27%~~31% of consolidated revenues for ~~each of~~ the fiscal 2016 and 2015 ~~and 2014 third~~first quarters, ~~and 27% and 28% for the fiscal 2015 and 2014 year-to-date nine month periods,~~ respectively.

Within our Life Science segment, two diagnostic manufacturing customers accounted for ~~16%~~18% of the segment’s total revenues for each of the ~~third~~first quarters of fiscal 2016 and 2015.

On January 1, 2013, the medical device tax established as part of the U.S. health care reform legislation became effective, and as a result, the Company made its first required tax deposit near the end of January 2013. During each of the first quarters of fiscal 2016 and fiscal 2015, the Company recorded approximately $500 of medical device tax expense, which is reflected as a component of cost of sales in the accompanying Condensed Consolidated

Statements of Operations. During December 2015, the Consolidations Appropriations Act of 2016 imposed a two-year moratorium on this excise tax effective January 1, 2016. During calendar years 2016 and ~~2014, and 16% and 17% during the nine months ended June 30, 2015 and 2014, respectively.~~2017, this moratorium would result in approximately $2,000 of savings each year. We are unable to predict any future legislative changes or developments related to this moratorium or excise tax.


	Three Months Ended June 30,									Nine Months Ended June 30,									Three Months Ended December 31,
	2015			2014			Change			2015			2014			Change			2015			2014			Change
Gross Profit	$	30,331		$	29,242			4	%	$	92,089		$	88,842			4	%	$	31,583		$	29,237			8	%

Gross Profit Margin		63	%		62	%		+1 point			62	%		63	%		-1 point			67	%		61	%		+6 points

The overall gross profit increase for the three months ended December 31, 2015 primarily results from the combined effects of (i) mix of products sold, particularly the higher revenue contribution fromH. pylori products; (ii) realization of manufacturing facility efficiencies for ourillumigene products as a result of bringing in-house certain reagent dispensing operations that were previously outsourced; (iii) manufacturing efficiencies in our Life Science segment; and (iv) favorable effects of currency rates related to products where the purchase cost is denominated in Euros but the customer sales are billed in U.S. dollars.

Our overall operations consist of the sale of diagnostic test kits for various disease states and in alternative test formats, as well as bioresearch reagents, bulk antigens and antibodies, PCR/qPCR reagents, nucleotides, competent cells, proficiency panels, and contract ~~research and development, and contract~~ manufacturing services. Product revenue mix shifts, in the normal course of business, can cause the consolidated gross profit margin to fluctuate by several points.

~~Due to our growing~~~~illumi~~~~gene~~ platform, we have invested approximately $4,000 in new molecular manufacturing facilities, which will provide additional manufacturing capacity, as well as improved manufacturing efficiency and quality. We believe that we will begin to realize these efficiencies late in fiscal 2015.

~~Overall, total~~Total operating expenses ~~decreased during the third quarter of fiscal 2015 and~~ increased during the first ~~nine months~~quarter of fiscal ~~2015 relative~~2016 compared to the ~~comparable prior~~first quarter of fiscal ~~year periods, decreasing slightly as a percentage of both quarterly and year-to-date consolidated revenues. These levels~~2015. This level of operating expenses ~~result in large part~~results primarily from the combined effects of our (i) ongoing efforts to control spending in each of our segments while investing the necessary resources in our strategic areas of growth, including increased investment in new product development in ~~both of~~ our ~~segments,~~Diagnostics segment, and increased investment in Sales and Marketing personnel and programs, particularly in our ~~Diagnostics~~Life Science segment; and (ii) favorable effects of currency rates.

Operating expenses for the Diagnostics segment ~~decreased $171~~increased $1,117 for the ~~third~~first quarter of fiscal ~~2015~~2016 compared to the ~~fiscal 2014 third~~first quarter ~~and in the first nine months~~ of fiscal ~~2015, increased $1,201 over the comparable prior year period.~~2015. These overall Diagnostics segment increases result ~~largely~~primarily from the combined effects of the following:

~~Overall increase~~Increase in spending on new product development activities, related primarily to the previously noted products for ourillumigene molecular platform, as well as immunoassay products in development.

~~Increase in year-to-date personnel costs resulting from increased Sales and Marketing headcount.~~

Increase in ~~profit sharing~~incentive bonus and stock-based compensation expense ~~resulting from~~as a result of the ~~previously noted increases~~increase in corporate-wide operating profits, along with ~~an increase~~expenses incurred in ~~legal spending over~~connection with completing the ~~prior year related largely to a foreign distributor matter.~~Company’s investment in Oasis.

Operating income increased ~~10%~~7% to ~~$14,398~~$13,586 for the ~~third~~first quarter of fiscal ~~2015, and increased 6% to $42,799 for the first nine months of fiscal 2015,~~2016, as a result of the factors discussed above.

First quarter of fiscal 2016 other income and expense included approximately $100 of foreign currency gains. This compares to $600 of foreign currency losses in the first quarter of fiscal 2015, which related primarily to foreign currency exchange transaction losses on a subsidiary intercompany loan.

The effective rate for income taxes ~~was 36% and 31%~~remained stable at 35% for the ~~third~~first quarters of fiscal ~~2015~~2016 and ~~2014, respectively, and 35% and 33% for the nine month year-to-date periods ended June 30, 2015 and 2014, respectively. The higher current year rates relative to~~ fiscal 2014 primarily result from the effects of increased tax apportionments in certain state taxing jurisdictions, as well as the prior year period reflecting the positive effects of a net U.S. foreign tax credit resulting from a restructuring of our legal entities during the fiscal 2014 third quarter.2015. For the fiscal year ending September 30, ~~2015,~~2016, we expect the effective tax rate to approximate ~~35%~~34%-35%.

In September 2013, the Internal Revenue Service issued Treasury Decision 9636, which enacted final tax regulations regarding the capitalization and expensing of amounts paid to acquire, produce or improve tangible property. The regulations also include guidance regarding the retirement of depreciable property. Our adoption of these regulations on October 1, 2014 did not have a significant impact on the Company’s consolidated results of operations, cash flows or financial position.

Our cash flow and financing requirements are determined by analyses of operating and capital spending budgets, consideration of acquisition plans, and consideration of common share dividends. We have historically maintained a credit facility to augment working capital requirements and to respond quickly to acquisition opportunities. ~~Our investment portfolio presently consists of overnight repurchase agreements.~~

We have an investment policy that guides the holdings of our investment ~~portfolio.~~portfolio, which at present consist of overnight repurchase agreements and bank savings accounts. Our objectives ~~in managing the investment portfolio~~ are to (i) preserve capital; (ii) provide sufficient liquidity to meet working capital requirements and fund strategic objectives such as acquisitions; and (iii) capture a market rate of return commensurate with market conditions and our policy’s investment eligibility criteria. As we look forward, we will continue to manage the holdings of our investment portfolio with preservation of capital being the primary objective.

We do not expect ~~current conditions in the financial markets, or overall~~ economic conditions to have a significant impact on our liquidity needs, financial condition, or results of operations, although no assurances can be made in this regard. We intend to continue to fund our working capital requirements and dividends from current cash flows from operating activities and cash on hand. If needed, we also have an additional source of liquidity through our $30,000 bank credit facility, which has been renewed through April 21, 2018. Approximately $2,000 of our consolidated accounts receivable at June 30, 2015 is due from Italian hospital customers whose funding ultimately comes from the Italian government, which is down from approximately $2,700 at September 30, 2014. The amount of our annual revenues in the country of Greece and the corresponding amount of customer receivables outstanding at any point in time is not significant, and therefore, we do not expect any meaningful impact from the current financial crisis in the country of Greece.facility. Our liquidity needs may change if overall economic conditions ~~worsen~~change and/or liquidity and credit within the financial markets tightens for an extended period of time, and such conditions impact the collectibility of our customer accounts receivable or impact credit terms with our vendors, or disrupt the supply of raw materials and services.

Net cash provided by operating activities totaled ~~$31,196~~$12,092 for the first ~~nine months~~quarter of fiscal ~~2015,~~2016, a ~~32% increase over~~25% decrease from the ~~$23,611~~$16,085 provided during the first ~~nine months~~quarter of fiscal ~~2014.~~2015. While reflecting the effects of ~~the timing of federal income tax payments, and~~ the timing of payments from and to customers and suppliers, respectively, this ~~$7,585~~decrease reflects the approximate $3,000 increase ~~results~~ in ~~large part from approximately $5,500 of incentive bonus payments related to fiscal 2013 being made in the first quarter of fiscal 2014, with no such payments having been made~~inventory during the ~~fiscal~~quarter ended December 31, 2015, ~~year-to-date period.~~compared to the approximate $1,100 decrease in inventory during the quarter ended December 31, 2014. Net cash flows from operating activities and cash on hand are anticipated to be adequate to fund working capital requirements, capital expenditures and dividends during the next 12 months.

We have a $30,000 credit facility with a commercial bank that expires on April 21, 2018. As of ~~July~~January 31, ~~2015,~~2016, there were no borrowings outstanding on this facility and we had 100% borrowing capacity available to us. We have had no borrowings outstanding under this facility during the first ~~nine~~three months of fiscal ~~2015~~2016 or during the full year of fiscal ~~2014.~~2015.

Our capital expenditures are estimated to berange between approximately $3,000 to $4,000 for fiscal ~~2015,~~2016, with the actual amount depending upon actual operating results and the phasing of certain projects. Such expenditures may be funded with cash and equivalents on hand, operating cash flows, and/or availability under the $30,000 credit facility discussed above.

~~During June 2015, we sold the land and building related to our former Life Science facility in Saco, Maine. Net proceeds from the sale were approximately $1,138.~~

We do not utilize any special-purpose financing vehicles or have any undisclosed off-balance sheet arrangements.

There have been no material changes in the Company’s exposure to market risk since September 30, ~~2014.~~2015.

As of ~~June 30,~~December 31, 2015, an evaluation was completed under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15(b) and 15d-15(b) promulgated under the Securities Exchange Act of 1934, as amended. Based on that evaluation, our management, including the CEO and CFO, concluded that our disclosure controls and procedures were effective as of ~~June 30,~~December 31, 2015. There have been no changes in our internal control over financial reporting identified in connection with the evaluation of internal control that occurred during the ~~third~~first fiscal quarter that ~~have~~has materially affected, or ~~are~~is reasonably likely to materially affect, our internal control over financial reporting, or in other factors that could materially affect internal control subsequent to ~~June 30,~~December 31, 2015.

There have been no material changes from risk factors as previously disclosed in the Registrant’s Form 10-K in response to Item 1A to Part I of Form ~~10-K as updated by the Registrant’s Form 10-Q for the Quarterly Period ended March 31, 2015 in Item 1A to Part II of Form 10-Q.~~

~~The following exhibits are being filed or furnished as a part of this Quarterly Report on Form 10-Q.~~10-K.

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 thereunto duly authorized.


Class		Outstanding ~~July~~January 31, ~~2015~~2016
Common Stock, no par value	~~41,714,635~~	42,051,142


			Page(s)

PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)
		Condensed Consolidated Statements of Operations Three ~~and Nine~~ Months Ended ~~June 30,~~December 31, 2015 and 2014		1

		Condensed Consolidated Statements of Comprehensive Income Three ~~and Nine~~ Months Ended ~~June 30,~~December 31, 2015 and 2014		2

		Condensed Consolidated Statements of Cash Flows ~~Nine~~ Three Months Ended ~~June 30,~~December 31, 2015 and 2014		3

		Condensed Consolidated Balance Sheets ~~June 30,~~ December 31, 2015 and September 30, ~~2014~~2015		4-5

		Condensed Consolidated Statement of Changes in Shareholders’ Equity ~~Nine~~ Three Months Ended ~~June 30,~~December 31, 2015		6

		Notes to Condensed Consolidated Financial Statements		~~7-12~~7-10

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations			~~12-20~~10-17

Item 3.	Quantitative and Qualitative Disclosures About Market Risk			2117

Item 4.	Controls and Procedures			2117

PART II.	OTHER INFORMATION

Item 1A.	Risk Factors			2118

Item 6.	Exhibits			2218

Signature				2319


	Diagnostics		Life Science		Eliminations(1)			Total
Three Months Ended June 30, 2015
Net revenues -
Third-party	$	36,049	$	12,155	$	—		$	48,204
Inter-segment		46		345		(391	)		—
Operating income		11,203		3,240		(45	)		14,398
Goodwill (June 30, 2015)		1,250		21,534		—			22,784
Other intangible assets, net (June 30, 2015)		2,436		3,938		—			6,374
Total assets (June 30, 2015)		117,602		61,955		(241	)		179,316

Three Months Ended June 30, 2014
Net revenues -
Third-party	$	35,168	$	12,044	$	—		$	47,212
Inter-segment		99		374		(473	)		—
Operating income		10,526		2,676		(70	)		13,132
Goodwill (September 30, 2014)		1,250		21,943		—			23,193
Other intangible assets, net (September 30, 2014)		2,756		5,057		—			7,813
Total assets (September 30, 2014)		109,350		67,834		(255	)		176,929

Nine Months Ended June 30, 2015
Net revenues -
Third-party	$	111,297	$	36,465	$	—		$	147,762
Inter-segment		235		867		(1,102	)		—
Operating income		33,081		9,814		(96	)		42,799

Nine Months Ended June 30, 2014
Net revenues -
Third-party	$	107,066	$	35,074	$	—		$	142,140
Inter-segment		362		858		(1,220	)		—
Operating income		32,211		8,243		(30	)		40,424


	Diagnostics		Life Science		Eliminations(1)			Total
Three Months Ended December 31, 2015
Net revenues—
Third-party	$	35,301	$	11,859	$	—		$	47,160
Inter-segment		71		367		(438	)		—
Operating income		10,330		3,236		20			13,586
Goodwill (December 31, 2015)		1,250		20,814		—			22,064
Other intangible assets, net (December 31, 2015)		2,236		3,229		—			5,465
Total assets (December 31, 2015)		120,780		65,927		(272	)		186,435
Three Months Ended December 31, 2014
Net revenues—
Third-party	$	36,586	$	11,427	$	—		$	48,013
Inter-segment		104		297		(401	)		—
Operating income		10,284		2,489		(104	)		12,669
Goodwill (September 30, 2015)		1,250		21,099		—			22,349
Other intangible assets, net (September 30, 2015)		2,364		3,567		—			5,931
Total assets (September 30, 2015)		119,939		63,670		(327	)		183,282


	June 30, 2015				September 30, 2014
	Cash and Equivalents		Other Assets		Cash and Equivalents		Other Assets
Overnight repurchase agreements	$	23,315	$	—	$	26,407	$	—

Cash on hand -
Restricted		—		1,000		—		1,000
Unrestricted		22,660		—		16,640		—

Total	$	45,975	$	1,000	$	43,047	$	1,000


	Three Months Ended June 30, 2015
	Research & Development			Selling & Marketing			General & Administrative			Total Operating Expenses
2014 Expenses	$	3,146		$	6,249		$	6,715		$	16,110

% of Revenues		7	%		13	%		14	%		34	%

Fiscal 2015 Increases (Decreases):
Diagnostics		20			(55	)		(136	)		(171	)
Life Science		48			(10	)		(44	)		(6	)

2015 Expenses	$	3,214		$	6,184		$	6,535		$	15,933

% of Revenues		7	%		13	%		14	%		33	%
% Increase (Decrease)		2	%		(1	)%		(3	)%		(1	)%


	Changes for the Three Months Ended December 31, 2015
	Research & Development			Selling & Marketing			General & Administrative			Total Operating Expenses
2015 Expenses	$	3,103		$	6,080		$	7,385		$	16,568

% of Revenues		6	%		13	%		15	%		35	%
Fiscal 2016 Increases (Decreases):
Diagnostics		395			29			693			1,117
Life Science		(117	)		334			95			312

2016 Expenses	$	3,381		$	6,443		$	8,173		$	17,997

% of Revenues		7	%		14	%		17	%		38	%
% Increase		9	%		6	%		11	%		9	%


~~10.1~~ITEM 6. EXHIBITS

~~Amended and Restated Revolving Note with Fifth Third Bank dated April 21, 2015~~The following exhibits are being filed or furnished as a part of this Quarterly Report on Form 10-Q.

~~10.2~~		Fifth Amendment to Loan and Security Agreement among Meridian Bioscience, Inc., Meridian Bioscience Corporation, Omega Technologies, Inc., Meridian Life Science, Inc., Bioline USA, Inc., and Fifth Third Bank dated April 21, 2015

31.1		Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a)

31.2		Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a)

32		Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101		The following financial information from Meridian Bioscience Inc.’s Quarterly Report on Form 10-Q for the quarter ended ~~June 30,~~December 31, 2015 filed with the SEC on ~~August 10, 2015,~~February 9, 2016, formatted in XBRL includes: (i) Condensed Consolidated Statements of Operations for the three ~~and nine~~ months ended ~~June 30,~~December 31, 2015 and 2014; (ii) Condensed Consolidated Statements of Comprehensive Income for the three ~~and nine~~ months ended ~~June 30,~~December 31, 2015 and 2014; (iii) Condensed Consolidated Statements of Cash Flows for the ~~nine~~three months ended ~~June 30,~~December 31, 2015 and 2014; (iv) Condensed Consolidated Balance Sheets as of ~~June 30,~~December 31, 2015 and September 30, ~~2014;~~2015; (v) Condensed Consolidated Statement of Shareholders’ Equity for the ~~nine~~three months ended ~~June 30,~~December 31, 2015; and (vi) the Notes to Condensed Consolidated Financial Statements


			MERIDIAN BIOSCIENCE, INC.

Date:	~~August 10, 2015~~ February 9, 2016	By:	/s/ Melissa A. Lueke
			Melissa A. Lueke
			Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

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Non-accelerated filer

Smaller reporting company