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 ☒ 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 RegulationS-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, anon-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule12b-2 of the Exchange Act). Yes ☐ No ☒

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 Form10-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 operating results, financial condition and 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, its ability to effectively sell such products and its ability to successfully expand and effectively manage increased sales and marketing operations. 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 or in protecting its intellectual

property, and unexpected or costly manufacturing costs associated with the ramp up of new products could cause actual results to differ from expectations. Meridian relies on proprietary, patented and licensed technologies. As such, 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, as can the uncertainty of regulatory approvals and the regulatory process. 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 outcome of goodwill impairment testing and the impact of possible goodwill impairments on Meridian’s earnings and financial results. 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 initiated by Congress or the presidential administration, 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. ~~We have~~In the past, the Company has identified a material weakness in our internal control over financial reporting, which has been remediated, but the Company can make no assurances that a material weakness will not be identified in the future, which if identified and not properly corrected, could materially adversely affect our operations and result in material misstatements in our financial statements. In addition to the factors described in this paragraph, as well as those factors identified from time to time in our filings with the Securities and Exchange Commission, Part I, Item 1A Risk Factors of our most recent Annual Report on Form10-K contains a list and description of uncertainties, risks and other matters that may affect the Company. Readers should carefully review these forward-looking statements and risk factors and not place undue reliance on our forward-looking statements.


	Three Months Ended						Three Months Ended						Six Months Ended
	December 31,						March 31,						March 31,
	2017			2016			2018			2017			2018			2017
NET REVENUES	$	52,283		$	46,809		$	56,451		$	54,125		$	108,734		$	100,934
COST OF SALES		20,497			17,770			21,882			20,648			42,379			38,418

GROSS PROFIT		31,786			29,039			34,569			33,477			66,355			62,516

OPERATING EXPENSES
Research and development		4,496			3,597			4,222			3,951			8,702			7,548
Selling and marketing		8,842			7,618			8,648			8,066			17,458			15,684
General and administrative		8,904			7,739			9,110			7,274			18,062			15,013
CEO transition and litigation costs		1,483			—
Executive transition and realignment costs								3,458			—			4,192			—
Litigation costs								1,453			—			2,202			—

Total operating expenses		23,725			18,954			26,891			19,291			50,616			38,245

OPERATING INCOME		8,061			10,085			7,678			14,186			15,739			24,271
OTHER INCOME (EXPENSE)
Interest income		72			22			90			29			162			51
Interest expense		(395	)		(423	)		(379	)		(408	)		(774	)		(831	)
Other, net		(80	)		(25	)		(165	)		383			(245	)		358

Total other expense		(403	)		(426	)
Total other income (expense)								(454	)		4			(857	)		(422	)

EARNINGS BEFORE INCOME TAXES		7,658			9,659			7,224			14,190			14,882			23,849
INCOME TAX PROVISION		1,356			3,380			1,936			4,878			3,292			8,258

NET EARNINGS	$	6,302		$	6,279		$	5,288		$	9,312		$	11,590		$	15,591

BASIC EARNINGS PER COMMON SHARE	$	0.15		$	0.15		$	0.12		$	0.22		$	0.27		$	0.37
DILUTED EARNINGS PER COMMON SHARE	$	0.15		$	0.15		$	0.12		$	0.22		$	0.27		$	0.37
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC		42,263			42,159			42,323			42,202			42,289			42,177
EFFECT OF DILUTIVE STOCK OPTIONS AND RESTRICTED SHARE UNITS		399			376			409			366			404			362

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED		42,662			42,535			42,732			42,568			42,693			42,539

ANTI-DILUTIVE SECURITIES:
Common share options and restricted share units		1,034			715			1,021			1,001			1,015			871

DIVIDENDS DECLARED PER COMMON SHARE	$	0.125		$	0.20		$	0.125		$	0.125		$	0.250		$	0.325

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


							Three Months Ended						Six Months Ended
	Three Months Ended December 31,						March 31,						March 31,
	2017			2016			2018			2017			2018			2017
NET EARNINGS	$	6,302		$	6,279		$	5,288		$	9,312		$	11,590		$	15,591
Other comprehensive income (loss):
Foreign currency translation adjustment		291			(1,423	)		926			512			1,217			(911	)
Unrealized gain on cash flow hedge		341			1,560			424			128			765			1,688
Income taxes related to items of other comprehensive income		(112	)		(589	)		(107	)		(24	)		(219	)		(613	)

Other comprehensive income (loss), net of tax		520			(452	)
Other comprehensive income, net of tax								1,243			616			1,763			164

COMPREHENSIVE INCOME	$	6,822		$	5,827		$	6,531		$	9,928		$	13,353		$	15,755

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


Three Months Ended December 31,	2017			2016
Six Months Ended March 31,							2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings	$	6,302		$	6,279		$	11,590		$	15,591
Non-cash items included in net earnings:
Depreciation of property, plant and equipment		1,146			1,078			2,236			2,154
Amortization of intangible assets		938			968			1,883			1,904
Amortization of deferred instrument costs		201			257			401			500
Stock-based compensation		1,759			1,884			1,975			2,360
Deferred income taxes		(1,624	)		2,091			(1,576	)		1,982
Change in:
Accounts receivable		(2,989	)		2,191			(4,185	)		(298	)
Inventories		(2,353	)		(169	)		(2,370	)		2,248
Prepaid expenses and other current assets		87			(406	)		754			2,684
Accounts payable and accrued expenses		1,315			(913	)		3,746			(3,415	)
Income taxes payable		497			44			(775	)		146
Other, net		(108	)		(311	)		160			(724	)

Net cash provided by operating activities		5,171			12,993			13,839			25,132

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment		(1,234	)		(1,392	)		(2,160	)		(2,273	)

Net cash used for investing activities		(1,234	)		(1,392	)		(2,160	)		(2,273	)

CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid		(5,288	)		(8,440	)		(10,577	)		(13,715	)
Payments on term loan		(1,125	)		(750	)		(2,250	)		(1,500	)
Proceeds and tax benefits from exercises of stock options		—			301			—			303

Net cash used for financing activities		(6,413	)		(8,889	)		(12,827	)		(14,912	)

Effect of Exchange Rate Changes on Cash and Equivalents		115			(662	)		476			(428	)

Net (Decrease) Increase in Cash and Equivalents		(2,361	)		2,050			(672	)		7,519
Cash and Equivalents at Beginning of Period		57,072			47,226			57,072			47,226

Cash and Equivalents at End of Period	$	54,711		$	49,276		$	56,400		$	54,745

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


	December 31, 2017 (Unaudited)		September 30, 2017		March 31, 2018 (Unaudited)		September 30, 2017
CURRENT ASSETS
Cash and equivalents	$	54,711	$	57,072	$	56,400	$	57,072
Accounts receivable, less allowances of $306 and $307		32,136		29,106
Accounts receivable, less allowances of $326 and $307						33,793		29,106
Inventories		43,644		41,493		43,794		41,493
Prepaid expenses and other current assets		6,126		6,204		5,485		6,204

Total current assets		136,617		133,875		139,472		133,875

PROPERTY, PLANT AND EQUIPMENT, at Cost
Land		1,164		1,162		1,169		1,162
Buildings and improvements		32,244		32,207		32,293		32,207
Machinery, equipment and furniture		49,367		48,836		50,366		48,836
Construction in progress		2,374		1,895		2,356		1,895

Subtotal		85,149		84,100		86,184		84,100
Less: accumulated depreciation and amortization		54,749		53,590		55,923		53,590

Net property, plant and equipment		30,400		30,510		30,261		30,510

OTHER ASSETS
Goodwill		54,997		54,926		55,409		54,926
Other intangible assets, net		25,777		26,704		24,885		26,704
Restricted cash		1,000		1,000		1,000		1,000
Deferred instrument costs, net		1,415		1,368		1,388		1,368
Fair value of interest rate swap		1,156		815		1,580		815
Deferred income taxes		146		158		107		158
Other assets		443		421		445		421

Total other assets		84,934		85,392		84,814		85,392

TOTAL ASSETS	$	251,951	$	249,777	$	254,547	$	249,777

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


	December 31, 2017 (Unaudited)			September 30, 2017			March 31, 2018 (Unaudited)			September 30, 2017
CURRENT LIABILITIES
Accounts payable	$	8,507		$	7,719		$	7,564		$	7,719
Accrued employee compensation costs		4,801			4,536			8,355			4,536
Current portion of acquisition consideration		2,095			2,095			2,095			2,095
Other accrued expenses		2,795			2,789			2,899			2,789
Current portion of long-term debt		4,500			4,500			4,500			4,500
Income taxes payable		776			1,248			368			1,248

Total current liabilities		23,474			22,887			25,781			22,887

NON-CURRENT LIABILITIES
Acquisition consideration		235			235			235			235
Post-employment benefits		2,551			2,468			2,492			2,468
Long-term debt		49,030			50,147			47,914			50,147
Long-term income taxes payable		854			—			854			—
Deferred income taxes		2,929			4,455			2,935			4,455

Totalnon-current liabilities		55,599			57,305			54,430			57,305

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, 42,307,542 and 42,207,317 shares issued, respectively		—			—
Common shares, no par value; 71,000,000 shares authorized, 42,344,042 and 42,207,317 shares issued, respectively								—			—
Additionalpaid-in capital		127,367			125,608			127,583			125,608
Retained earnings		47,937			46,923			47,936			46,923
Accumulated other comprehensive loss		(2,426	)		(2,946	)		(1,183	)		(2,946	)

Total shareholders’ equity		172,878			169,585			174,336			169,585

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	251,951		$	249,777		$	254,547		$	249,777

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, 2017		42,207	$	125,608	$	46,923		$	(2,946	)	$	169,585			42,207	$	125,608	$	46,923		$	(2,946	)	$	169,585
Cash dividends paid		—		—		(5,288	)		—			(5,288	)		—		—		(10,577	)		—			(10,577	)
Conversion of restricted share units		100		—		—			—			—			137		—		—			—			—
Stock compensation expense		—		1,759		—			—			1,759			—		1,975		—			—			1,975
Net earnings		—		—		6,302			—			6,302			—		—		11,590			—			11,590
Foreign currency translation adjustment		—		—		—			291			291			—		—		—			1,217			1,217
Hedging activity, net of tax		—		—		—			229			229			—		—		—			546			546

Balance at December 31, 2017		42,307	$	127,367	$	47,937		$	(2,426	)	$	172,878
Balance at March 31, 2018															42,344	$	127,583	$	47,936		$	(1,183	)	$	174,336

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 ~~December~~March 31, ~~2017,~~2018, the results of its operations for the three and six month periods ended ~~December~~March 31, ~~2017~~2018 and ~~2016,~~2017, and its cash flows for the ~~three~~six month periods ended ~~December~~March 31, ~~2017~~2018 and ~~2016.~~2017. These statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s fiscal 2017 Annual Report on Form10-K. Financial information as of September 30, 2017 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 2017 Annual Report on Form10-K.

In May 2014, the FASB issued ASUNo. 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. This guidance, including any clarification guidance thereon, will be effective for the Company beginning October 1, 2018 (fiscal 2019). The Company has prepared an inventory of its existing revenue streams and a preliminary analysis of the revenue recognition criteria applying ASU2014-09. This analysis is preliminary and our overall assessment is not yet complete. However, based on the analysis completed to date, aside from certain expanded disclosure requirements, the Company does not currently anticipate that its planned adoption of ASU2014-09 on a modified retrospective basis will have a material impact on its reported revenues.

In February 2016, the FASB issued ASU2016-02,Leases, which amends the accounting guidance related to leases. These changes, which are designed to increase transparency and comparability among organizations for both lessees and lessors, include, among other things, requiring recognition of lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. Adoption and implementation of the guidance is not required by the Company until the beginning of fiscal 2020, although early adoption is permitted. The Company expects to begin its assessment of the impact that adoption of this guidance will have on its financial statements ~~later~~ in fiscal ~~2018.~~2019.

In March 2016, the FASB issued ASU2016-09,Improvements to Employee Share-Based Payment Accounting, which amends the accounting for share-based payment transactions. These changes, which are designed for simplification, involve several aspects of the accounting for share-based transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted this guidance in the first quarter of fiscal 2018, and as a result recorded $160 to the income tax provision, which under the previous guidance would have been recorded within additionalpaid-in capital. While the future effect of the guidance is dependent upon numerous factors (e.g., the market price of the Company’s common stock on the equity award grant date, the exercise/lapse dates of equity awards, and the market price of the Company’s common stock on such exercise/lapse dates), the effect is not expected to be material. During the first six months of fiscal 2018, our tax provision included a $170 charge for application of ASU2016-09.

In February 2018, the FASB issued ASU2018-02,Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, to address certain of the recent U.S. federal income tax legislation’s impact on Accumulated Other Comprehensive Income (“AOCI”). The guidance specifically provides the option of reclassifying “stranded tax effects” related to the tax legislation from AOCI to retained earnings. Adoption and implementation of the optional guidance is not effective for the Company until the beginning of fiscal 2020, although early adoption is permitted. The Company plans to address adoption of this guidance later in fiscal 2018 in connection with the finalization of other matters related to the recent tax legislation (see Note 6“Income Taxes”) but does not expect adoption to have a significant impact on the Company’s consolidated results of operations, cash flows or financial position.

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


	December 31, 2017				September 30, 2017				March 31, 2018				September 30, 2017
	Cash and Equivalents		Other Assets		Cash and Equivalents		Other Assets		Cash and Equivalents		Other Assets		Cash and Equivalents		Other Assets
Institutional money market funds	$	20,155	$	—	$	20,104	$	—	$	20,224	$	—	$	20,104	$	—
Cash on hand -
Restricted		—		1,000		—		1,000		—		1,000		—		1,000
Unrestricted		34,556		—		36,968		—		36,176		—		36,968		—

Total	$	54,711	$	1,000	$	57,072	$	1,000	$	56,400	$	1,000	$	57,072	$	1,000


	December 31, 2017		September 30, 2017		March 31, 2018		September 30, 2017
	December 31, 2017		September 30, 2017		March 31, 2018		September 30, 2017
Raw materials	$	7,989	$	6,575	$	7,645	$	6,575
Work-in-process		12,110		11,559		12,781		11,559
Finished goods - instruments		1,271		1,460		1,027		1,460
Finished goods - kits and reagents		22,274		21,899		22,341		21,899

Total	$	43,644	$	41,493	$	43,794	$	41,493

A summary of our acquired intangible assets subject to amortization, as of ~~December~~March 31, ~~2017~~2018 and September 30, 2017, is as follows:

The actual aggregate amortization expense for these intangible assets was ~~$938~~$945 and ~~$968~~$936 for the three months ended ~~December~~March 31, 2018 and 2017, respectively, and ~~2016,~~$1,883 and $1,904 for the six months ended March 31, 2018 and 2017, respectively. The estimated aggregate amortization expense for these intangible assets for each of the fiscal years through fiscal 2023 is as follows: remainder of fiscal 2018 – ~~$2,628,~~$1,701, fiscal 2019 – ~~$3,343,~~$3,361, fiscal 2020 – ~~$3,178,~~$3,193, fiscal 2021 – ~~$2,561,~~$2,562, fiscal 2022 – $2,182, and fiscal 2023 – $2,170.

On May 17, 2017, the FDA issued a field safety notice advising customers to discontinue use of Magellan’s lead testing systems with venous blood samples. This field safety notice was followed by product recall notices on May 25^th and June 5^th.Magellan’s lead testing systems are capable of processing both capillary and venous blood samples. Magellan’s LeadCare Plus and LeadCare Ultra systems, which ~~account~~accounted for approximately 10% of Magellan’s annual revenues, are used predominantly with venous blood samples. Magellan’s LeadCare and LeadCare II systems are predominantly used with capillary blood samples.

Subsequent to the issuances of these field safety and product recall notices, the FDA completed an inspection of Magellan’s Quality System, and issued its Form 483, Inspectional Observations, on June 29, 2017, which was expectedly followed by a Warning Letter issued on October 23, 2017. The Warning Letter requires periodic reporting on our remediation progress. To date, we have satisfied our post-Warning Letter reporting requirements with the FDA. During the ~~first quarter of fiscal~~three and six months ended March 31, 2018, we incurred approximately ~~$500~~$300 and $800, respectively, in Quality System remediation costs, primarily related to regulatory ~~consultants.~~consultants and studies required to reinstate our venous blood sample claim.

As a result of these matters, we expect to experience delays in reinstating venous blood sample testing on our LeadCare products, as well as in obtaining 510(k) clearance for new Magellan products. We also expect delays in obtaining export certifications for Magellan products during the remediation period. In light of these factors and their impacts, during our 2017 third fiscal quarter, it was determined that a potential impairment of goodwill recorded in connection with the acquisition of Magellan had occurred (i.e., a “triggering event”). With the assistance of an independent valuation firm, Magellan’s fair value was calculated via both market (comparable company) and income (discounted cash flows) approaches. Based upon these approaches, it was determined that the carrying value of the Magellan reporting unit did, in fact, exceed its fair value. As a result, an impairment charge of $6,628, on both apre-tax andafter-tax basis, was recorded during the fiscal 2017 third quarter.

Given all of the factors considered, we do not anticipate, at this time, any further goodwill impairment charge from the Magellan acquisition. See Note 10“Subsequent Events”.

On December 22, 2017, the United States enacted tax reform legislation commonly known as the Tax Cuts and Jobs Act (the “tax reform act”). In applying the tax reform act, we followed the guidance in SEC Staff Accounting Bulletin 118 (“SAB 118”), regarding the application of ASC Topic 740 – Income Taxes in situations where a company does not have the necessary information available, prepared or analyzed in reasonable detail to complete the accounting for certain income tax effects of the tax reform act for the reporting period in which the tax reform act was enacted. SAB 118 provides for a measurement period beginning in the reporting period that includes the tax reform act’s enactment date and ending when a company has obtained, prepared and analyzed the information needed in order to complete the accounting requirements but in no circumstances should the measurement period extend beyond one year from the enactment date.

We completed the accounting for the effects of the tax reform act during the quarter ended December 31, 2017, except for the effects related to theone-time deemed repatriation transition tax on unrepatriated foreign earnings (the “repatriation transition tax”). As a result, our financial statements for the ~~quarter~~six months ended ~~December~~March 31, ~~2017~~2018 reflect these effects of the tax reform act as provisional based on a reasonable estimate of the income tax effects. We have included a provisionalnon-current income tax payable in the amount of $854 related to the repatriation transition tax. The provisional amount is based on tax attribute information currently available from foreign investments. We continue to gather and analyze information, including historical adjustments to earnings and profits of foreign subsidiaries, in order to complete the accounting for the effects of the estimated repatriation transition tax.

Accounting for the remaining income tax effects of the tax reform act which impact our tax provision has been substantially completed and are included in the accompanying Condensed Consolidated Financial Statements as of ~~December~~March 31, ~~2017.~~2018. We recorded aone-time tax benefit of $1,695 in the first quarter resulting from the tax reform act, including an adjustment from there-measurement of deferred tax assets and liabilities. Thisre-measurement includes an estimate of the temporary differences expected to be realized during fiscal 2018 at a transitional blended federal rate of 24.5%. The remaining temporary differences werere-measured at the 21%.

In connection with the acquisition of Magellan Biosciences, Inc., and its wholly-owned subsidiary Magellan Diagnostics, Inc. (collectively, “Magellan”), on March 22, 2016 the Company entered into a $60,000 five-year term loan with a commercial bank. The term loan requires quarterly principal and interest payments, with interest at a variable rate tied to LIBOR, and a balloon principal payment due March 31, 2021. The required principal payments on the term loan for each of the remaining fiscal years are as follows: remainder of fiscal 2018 ~~- $3,375,~~– $2,250, fiscal 2019 -– $5,250, fiscal 2020 -– $6,000, and fiscal 2021 -– $39,000. In light of the term loan’s interest being determined on a variable rate basis, the fair value of the term loan at ~~December~~March 31, ~~2017~~2018 approximates the current carrying value reflected in the accompanying Condensed Consolidated Balance Sheet.

In order to limit exposure to volatility in the LIBOR interest rate, the Company and the commercial bank also entered into an interest rate swap that effectively converts the variable interest rate on the term loan to a fixed rate of 2.76%. With an initial notional balance of $60,000, the interest rate swap was established with critical terms identical to those of the term loan, including (i) notional reduction amounts and dates; (ii) LIBOR settlement rates; (iii) rate reset dates; and (iv) term/maturity. Due to this, the interest rate swap has been designated as an effective cash flow hedge, with changes in fair value reflected as a separate component of other comprehensive income in the accompanying Condensed Consolidated Statements of Comprehensive Income. At ~~December~~March 31, ~~2017~~2018 and September 30, 2017, the fair value of the interest rate swap was ~~$1,156~~$1,580 and $815, respectively, and is reflected as anon-current asset in the accompanying Condensed Consolidated Balance Sheets. This fair value was determined by reference to a third party valuation, and is considered a Level 2 input within the fair value hierarchy of valuation techniques.

In addition, the Company maintains a $30,000 revolving credit facility with a commercial bank, which expires March 31, 2021. There were no borrowings outstanding on this credit facility at ~~December~~March 31, ~~2017~~2018 or September 30, 2017.

The term loan and the revolving credit facility are collateralized by the business assets of the Company’s U.S. subsidiaries and require compliance with financial covenants that limit the amount of debt obligations and require a minimum level of coverage of fixed charges, as defined in the borrowing agreement. As of ~~December~~March 31, ~~2017,~~2018, the Company is in compliance with all covenants. The Company is also required to maintain a compensating cash balance with the bank in the amount of $1,000, and is in compliance with this requirement.

Meridian was formed in 1976 and functions as a fully-integrated life science company with principal businesses in (i) the development, manufacture, sale and distribution of diagnostic test kits, primarily for certain gastrointestinal, viral, respiratory, and parasitic infectious diseases, and elevated blood lead levels; 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.

Our reportable segments are Diagnostics and Life Science. The Diagnostics segment consists of manufacturing operations for infectious disease products in Cincinnati, Ohio; ~~Magellan’s~~ manufacturing operations for products detecting elevated lead levels in blood in Billerica, Massachusetts (near Boston); and the sale and distribution of diagnostics products domestically and abroad. This segment’s products are used by hospitals, reference labs and physician offices to detect infectious diseases and elevated lead levels.

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, business development and distribution facilities in Singapore and Beijing, China to further pursue growing revenue opportunities in Asia. This segment’s products are used by manufacturers and researchers in a variety of applications (e.g.,in-vitro medical device manufacturing, microRNA detection,next-gen sequencing, plant genotyping, and mutation detection, among others).

Amounts due from two Diagnostics distributor customers accounted for 25% and 11% of consolidated accounts receivable at ~~December~~March 31, ~~2017~~2018 and September 30, 2017, respectively. Revenues from these two distributor customers accounted for ~~38%~~27% and ~~23%~~28% of the Diagnostics segment third-party revenues during the three months ended ~~December~~March 31, ~~2017~~2018 and ~~2016,~~2017, respectively, and 30% and 27% during the six month periods ended March 31, 2018 and 2017, respectively. These distributors represented ~~27% and 17%~~19% of consolidated revenues for each of the fiscal 2018 and 2017 ~~first~~second quarters and 21% and 19% for the respectiveyear-to-date six month periods, respectively.

Within our Life Science segment, two diagnostic manufacturing customers accounted for ~~15%~~22% and ~~19%~~21% of the segment’s third-party revenues during the three months ended ~~December~~March 31, 2018 and 2017, respectively, and ~~2016,~~19% and 20% during the six months ended March 31, 2018 and 2017, respectively.


	Diagnostics		Life Science		Eliminations(1)			Total			Diagnostics		Life Science		Unallocated Costs and Eliminations(1)			Total
Three Months Ended December 31, 2017
Three Months Ended March 31, 2018										Three Months Ended March 31, 2018
Net revenues -
Third-party	$	37,490	$	14,793	$	—		$	52,283		$	39,782	$	16,669	$	—		$	56,451
Inter-segment		121		192		(313	)		—			80		75		(155	)		—
Operating income		5,291		2,784		(14	)		8,061			8,986		3,576		(4,884	)		7,678
Goodwill (December 31, 2017)		35,213		19,784		—			54,997
Other intangible assets, net (December 31, 2017)		24,202		1,575		—			25,777
Total assets (December 31, 2017)		179,943		72,480		(472	)		251,951
Three Months Ended December 31, 2016
Goodwill (March 31, 2018)												35,213		20,196		—			55,409
Other intangible assets, net (March 31, 2018)												23,430		1,455		—			24,885
Total assets (March 31, 2018)												179,825		75,288		(566	)		254,547
Three Months Ended March 31, 2017										Three Months Ended March 31, 2017
Net revenues -
Third-party	$	33,808	$	13,001	$	—		$	46,809		$	37,772	$	16,353	$	—		$	54,125
Inter-segment		79		125		(204	)		—			128		107		(235	)		—
Operating income		6,643		3,267		175			10,085			9,595		4,571		20			14,186
Goodwill (September 30, 2017)		35,213		19,713		—			54,926			35,213		19,713		—			54,926
Other intangible assets, net (September 30, 2017)		24,973		1,731		—			26,704			24,973		1,731		—			26,704
Total assets (September 30, 2017)		180,226		69,938		(387	)		249,777			180,226		69,938		(387	)		249,777
Six Months Ended March 31, 2018										Six Months Ended March 31, 2018
Net revenues -
Third-party											$	77,272	$	31,462	$	—		$	108,734
Inter-segment												201		267		(468	)		—
Operating income												15,760		6,360		(6,381	)	��	15,739
Six Months Ended March 31, 2017										Six Months Ended March 31, 2017
Net revenues -
Third-party											$	71,580	$	29,354	$	—		$	100,934
Inter-segment												207		232		(439	)		—
Operating income												16,238		7,838		195			24,271

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

On May 17, 2017, Meridian filed a complaint in the United States District Court for the Southern District of Ohio, Western Division (Cincinnati) naming DiaSorin Inc. (“DiaSorin”) as a defendant. Meridian’s complaint alleges DiaSorin has breached the 2010Co-Development and License Agreement (the “Agreement”) between it and Meridian relating to theco-development of certain tests and diagnostic products, pursuant to which Meridian disclosed certain trade secrets and proprietary information. The lawsuit underlying Meridian’s complaint alleges that DiaSorin breached the Agreement and used, and is currently using, Meridian’s proprietary information and therefore seeks injunctive relief to protect Meridian’s intellectual property and information with respect to its diagnostics products. Approximately ~~$730~~$925 and $1,655 of expense for attorneys’ fees related to this matter is included within the accompanying Condensed Consolidated ~~Statement~~Statements of Operations for the ~~fiscal quarter~~three and six months ended ~~December~~March 31, ~~2017.~~2018, respectively.

On November 15, 2017, Barbara Forman filed a class action complaint in the United States District Court for the Southern District of Ohio naming Meridian, its Chief Executive Officer and Chief Financial Officer (in their capacities as such) as defendants. An amended complaint was filed on April 16, 2018 and the Company believes the essential elements of the amended complaint are the same. The complaint and the amended complaint are hereafter referred to as the “Complaint”. The Complaint alleges that Meridian made false and misleading representations concerning certain of Magellan’s lead test systems at or around the time of Meridian’s acquisition of Magellan and subsequent thereto. The ~~lawsuit underlying plaintiff’s class action complaint~~Complaint seeks compensatory damages, injunctive relief and attorneys’ fees to all members of the proposed class. Because the litigation and related discovery are in preliminary stages, we do not have sufficient information to determine or predict the ultimate outcome or estimate the range of possible losses, if any. Accordingly, no provision for litigation losses has been included within the accompanying Condensed Consolidated Statement of Operations for the fiscal ~~quarter~~year-to-date period ended ~~December~~March 31, ~~2017.~~2018.

On December 6, 2017, Michael Edelson filed a ~~class action~~derivative complaint in the United States District Court for the Southern District of Ohio naming Meridian, its Chief Executive Officer, Chief Financial Officer and certain members of Meridian’s Board of Directors and Audit Committee (in their capacities as such) as defendants. The complaint alleges that Meridian made false and misleading representations concerning certain of Magellan’s lead test systems at or around the time of Meridian’s acquisition of Magellan and subsequent thereto, and the complaint alleges that certain members of the Board of Directors and Audit Committee breached their fiduciary duties in their oversight of the Company’s public disclosures and corporate governance matters. The lawsuit underlying plaintiff’s class action complaint seeks compensatory damages, injunctive relief, equitable relief and attorneys’ fees to all members of the proposed class. Because the litigation and related discovery are in preliminary stages, we do not have sufficient information to determine or predict the ultimate outcome or estimate the range of possible losses, if any. Accordingly, no provision for litigation losses has been included within the accompanying Condensed Consolidated Statement of Operations for the fiscal ~~quarter~~year-to-date period ended ~~December~~March 31, 2018.

Approximately $500 of expense for attorneys’ fees related to the above two class action matters is included within the accompanying Condensed Consolidated Statements of Operations for both the three and six months ended March 31, 2018. The Company maintains insurance covering these matters, which has a $500 deductible.

As discussed in Note 5“Intangible Assets” and Item 2“Management’s Discussion and Analysis of Financial Condition and Results of Operations,” Magellan lead tests have been the subject of a series of FDA activities including (i) a Field Safety Notice on May 17, 2017; (ii) product recall notices on May 25, 2017 and June 5, 2017; (iii) an inspection and resulting Form 483, Inspection Observations; and (iv) a Warning Letter on October 23, 2017. On April 17, 2018, Magellan received a subpoena from the United States Department of Justice (“DOJ”) regarding its LeadCare product line. The subpoena outlines documents to be produced, and the Company is cooperating with the DOJ in this matter. The Company maintains rigorous policies and procedures to promote compliance with applicable regulatory agencies and requirements, and is working with the DOJ to promptly respond to the subpoena. However, the Company cannot predict when the investigation will be resolved, the outcome of the investigation, or its potential impact on the Company.

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

Refer to “Forward-Looking Statements” following the Table of Contents in front of this Form10-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. Unless otherwise noted, increases or decreases are measured over the corresponding period of the prior fiscal year. This discussion should be read in conjunction with the financial statements and notes thereto beginning on page 1.

~~The first quarter of fiscal 2018 proved to be a successful quarter; a quarter highlighted~~Highlighted by the following, the effects of which are discussed throughout this MD~~&A:~~&A, the second quarter of fiscal 2018 continued the success and positive momentum of the first quarter:

Net earnings for the ~~first~~second quarter of fiscal 2018 ~~totaled $6,302,~~were $5,288, or ~~$0.15 per diluted share, relatively flat compared to the net earnings for the first quarter of fiscal 2017 of $6,279, or $0.15~~$0.12 per diluted share. The fiscal 2018 ~~first~~second quarter results include ~~$1,483~~$4,911 of costs associated with the transition to our new CEO and the realignment of other executive positions, and litigation costs (collectively, ~~“CEO~~“Executive transition and realignment costs, and litigation costs”) (see Note 9“Litigation Matters” of the accompanying Condensed Consolidated Financial Statements). These items impacted earnings by $3,575, or approximately $0.08 per diluted share on a net basis (see “USE OFNON-GAAP MEASURES” below). Consolidated revenues increased 4% to $56,451 for the second quarter of fiscal 2018 compared to the same period of the prior year (3% on a constant-currency basis). On an operating segment basis, revenues increased 5% (3% in constant-currency) and 2% (1% in constant-currency) for Diagnostics and Life Science, respectively.

For the six month period ended March 31, 2018, net earnings were $11,590, or $0.27 per diluted share. Theyear-to-date fiscal 2018 results include $6,394 of costs associated with the transition to our new CEO and the realignment of other executive positions, and litigation costs (collectively, “Executive transition and realignment costs, and litigation costs”) (see Note 9“Litigation Matters” of the accompanying Condensed Consolidated Financial Statements), along with certainone-time tax effects of the recently-enacted U.S. tax reform act. These items impacted earnings by ~~$239,~~$3,814, or ~~less than $0.01~~approximately $0.09 per diluted share on a net basis (see “USE OFNON-GAAP MEASURES” below). Consolidated revenues increased ~~12%~~8% to ~~$52,283~~$108,734 for the first ~~quarter~~six months of fiscal 2018 compared to the same period of the prior year ~~(10%~~(6% on a constant-currency basis). On an operating segment basis, revenues increased 8% (6% in constant-currency) and 7% (5% in constant-currency) for Diagnostics and Life Science, respectively.

~~Revenues for the Diagnostics segment for the first quarter of fiscal 2018 increased 11% compared to the first quarter of fiscal 2017 (10%~~

Update on ~~a constant-currency basis), comprised of a 12% increase in molecular assay products and a 10% increase in immunoassay and~~Magellan Lead Testing

Magellan offers multiple lead testing ~~products. With~~systems that are capable of processing both capillary and venous blood samples. Magellan’s LeadCare Plus and LeadCare Ultra systems, which accounted for approximately 10% of Magellan’s annual revenues in fiscal 2016, are used predominantly with venous blood samples. Typically, the Ultra and Plus systems are used in a 12% increase in its molecular components business and a 15% increase in its immunoassay components business, revenues of our Life Science segment increased by 14% during the first quarter of fiscal 2018 compared to the first quarter of fiscal 2017, increasing 12% on a constant-currency basis.

~~Our outlook for~~reference lab setting. Magellan’s LeadCare II testing volume continues to be healthy. In the time period since the FDA released its Safety Notification (which pertained to venous blood lead testing performed on the systems produced by Magellan), nearly 700 new LeadCare II systems utilizingsystem is predominantly used with capillary blood samples ~~have been placed~~and is typically used in a physician ~~offices~~office setting. LeadCare II system revenue represented approximately 90% of revenues in fiscal 2016. The LeadCare II system is the onlypoint-of-care system for testing lead exposure, receiving CLIA-waived status. Other methods for testing blood lead levels include Graphite Furnace Atomic Absorption Spectroscopy and ~~clinics.~~Mass Spectrometry, which are typically performed in hospital and reference laboratory settings.

On May 17, 2017, the FDA issued a field safety notice advising customers to discontinue use of Magellan’s lead testing systems with venous blood samples. This field safety notice was followed by product recall notices on May 25^th and June 5^th. Subsequent to the issuances of these field safety and product recall notices, the FDA completed an inspection of Magellan’s Quality System, and issued its Form 483, Inspectional Observations, on June 29, 2017, which was expectedly followed by a Warning Letter issued on October 23, 2017. During our 2017 third fiscal quarter, it was determined that a potential impairment of goodwill recorded in connection with the acquisition of Magellan had occurred (i.e., a “triggering event”). An impairment charge of $6,628, on both apre-tax andafter-tax basis, was recorded during the fiscal 2017 third quarter as set forth in Note 5“Intangible Assets” of the accompanying Condensed Consolidated Financial Statements.

The Warning Letter requires periodic reporting on our remediation progress. To date, we have satisfied our post-Warning Letter reporting requirements with the FDA. During the three and six months ended March 31, 2018, we incurred approximately $300 and $800, respectively, in remediation costs, primarily related to regulatory consultants and studies required to reinstate our venous blood sample claim. We expect remediation costs in the ~~first quarter~~second half of ~~fiscal 2018 associated with~~ the ~~Magellan FDA matter totaled approximately $500pre-tax,~~ ~~resulting in a total impact of less than $0.01 on diluted earnings per share for the quarter. Remediation costs~~year to be in the ~~remainder of fiscal 2018 are expected~~$200 to ~~be approximately $250pre-tax,~~ ~~or less than $0.01 impact on diluted earnings per share. Remediation costs relate primarily to professional fees for regulatory consultants and periodic Quality System audits.~~$400 range. In the course of remediation, Magellan may encounter additional matters that warrant notifications to the FDA and/or customers regarding the use of its products. At this time, we do not believe that any such notifications would impact the ability to use the LeadCare systems with capillary blood samples. ~~In addition, at~~

Revenues for Magellan for the six month period ending March 31, 2018 were $8,344, compared to $8,844 in the same period of the prior fiscal year, reflecting reduced revenues as a result of removing the venous blood claimas noted above. Revenues of LeadCare II, utilizing capillary blood samples, increased 7% during the six month period ending March 31, 2018, compared to the same period of the prior fiscal year, reflecting the continued placement of new LeadCare II systems in physician offices.

As set forth in Note 10“Subsequent Events” of the accompanying Condensed Consolidated Financial Statements, on April 17, 2018, Magellan received a subpoena from the United States Department of Justice (“DOJ”) regarding its LeadCare product line. The subpoena outlines documents to be produced, and the Company is cooperating with the DOJ in this ~~time, we do not anticipate any further significant~~matter. The Company maintains rigorous policies and procedures to promote compliance with applicable regulatory agencies and requirements, and is working with the DOJ to promptly respond to the subpoena. However, the Company cannot predict when the investigation will be resolved, the outcome of the investigation, or its potential impact on ~~our results of operations or financial condition.~~the Company.

We have supplemented our reported GAAP financial information with information on net earnings, basic earnings per share and diluted earnings per share excluding the effects of ~~CEO~~executive transition and realignment costs, litigation costs and certainone-time tax effects of the tax reform act, each of which is anon-GAAP measure. We have provided in the tables below reconciliations of net earnings, basic earnings per share and diluted earnings per share, with and without the effects of thesenon-routine items, for the ~~fiscal~~second quarters and six month periods ended ~~December~~March 31, ~~2017~~2018 and ~~December~~March 31, ~~2016.~~2017.

We believe that this information is useful to those who read our financial statements and evaluate our operating results because:

Thesenon-GAAP measures may be different fromnon-GAAP measures used by other companies. In addition, thesenon-GAAP measures are not based on any comprehensive set of accounting rules or principles.Non-GAAP measures have limitations, in that they do not reflect all amounts associated with our results as determined in accordance with U.S. GAAP. Therefore, these measures should only be used to evaluate our results in conjunction with corresponding GAAP measures.


						Three Months				Six Months
	Three Months Ended December 31,					Ended March 31,				Ended March 31,
	2017			2016		2018		2017		2018			2017
Net Earnings -
U.S. GAAP basis	$	6,302		$	6,279	$	5,288	$	9,312	$	11,590		$	15,591
CEO transition and litigation costs (1)		1,080			—
Executive transition and realignment costs (1)							2,517		—		3,052			—
Litigation costs (1)							1,058		—		1,603			—
One-time benefit from tax law change		(1,695	)		—		—		—		(1,695	)		—
Repatriation transition tax		854			—		—		—		854			—

Adjusted earnings	$	6,541		$	6,279	$	8,863	$	9,312	$	15,404		$	15,591

Net Earnings per Basic Common Share -
U.S. GAAP basis	$	0.15		$	0.15	$	0.12	$	0.22	$	0.27		$	0.37
CEO transition and litigation costs (1)		0.03			—
Executive transition and realignment costs (1)							0.06		—		0.07			—
Litigation costs (1)							0.02		—		0.04			—
One-time benefit from tax law change		(0.04	)		—		—		—		(0.04	)		—
Repatriation transition tax		0.02			—		—		—		0.02			—

Adjusted Basic EPS (2)	$	0.15		$	0.15	$	0.21	$	0.22	$	0.36		$	0.37

Net Earnings per Diluted Common Share -
U.S. GAAP basis	$	0.15		$	0.15	$	0.12	$	0.22	$	0.27		$	0.37
CEO transition and litigation costs (1)		0.03			—
Executive transition and realignment costs (1)							0.06		—		0.07			—
Litigation costs (1)							0.02		—		0.04			—
One-time benefit from tax law change		(0.04	)		—		—		—		(0.04	)		—
Repatriation transition tax		0.02			—		—		—		0.02			—

Adjusted Diluted EPS (2)	$	0.15		$	0.15	$	0.21	$	0.22	$	0.36		$	0.37

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

Our reportable segments are Diagnostics and Life Science, with products sold and distributed in the countries comprising North and Latin America (the “Americas”); Europe, Middle East and Africa (“EMEA”); and other countries outside of the Americas and EMEA (rest of the world, or “ROW”). A full description of our segments is set forth in Note 8“Reportable Segments and Major Customers Information” of the accompanying Condensed Consolidated Financial Statements.

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 the severity of seasonal diseases and outbreaks, 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 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 December 31,									Three Months Ended March 31,									Six Months Ended March 31,
	2017			2016			Inc (Dec)			2018			2017			Inc (Dec)			2018			2017			Inc (Dec)
Diagnostics -
Americas	$	31,462		$	27,569			14	%	$	33,403		$	31,842			5	%	$	64,865		$	59,411			9	%
EMEA		5,341			5,662			(6	)%		5,736			5,013			14	%		11,077			10,675			4	%
ROW		687			577			19	%		643			917			(30	)%		1,330			1,494			(11	)%

Total Diagnostics		37,490			33,808			11	%		39,782			37,772			5	%		77,272			71,580			8	%

Life Science -
Americas		5,351			5,399			(1	)%		5,228			5,732			(9	)%		10,579			11,131			(5	)%
EMEA		5,106			4,898			4	%		7,440			6,722			11	%		12,546			11,620			8	%
ROW		4,336			2,704			60	%		4,001			3,899			3	%		8,337			6,603			26	%

Total Life Science		14,793			13,001			14	%		16,669			16,353			2	%		31,462			29,354			7	%

Consolidated	$	52,283		$	46,809			12	%	$	56,451		$	54,125			4	%	$	108,734		$	100,934			8	%

% of total revenues -
Diagnostics		72	%		72	%					70	%		70	%					71	%		71	%
Life Science		28	%		28	%					30	%		30	%					29	%		29	%

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

Ex-Americas		30	%		30	%					32	%		31	%					31	%		30	%

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 revenues, are shown below.


	Three Months Ended December 31,									Three Months Ended March 31,									Six Months Ended March 31,
	2017			2016			Inc (Dec)			2018			2017			Inc (Dec)			2018			2017			Inc (Dec)
Diagnostics -
Diagnostics-
Molecular assays	$	8,668		$	7,711			12	%	$	9,674		$	9,477			2	%	$	18,342		$	17,188			7	%
Immunoassays & lead tests		28,822			26,097			10	%		30,108			28,295			6	%		58,930			54,392			8	%

Total Diagnostics	$	37,490		$	33,808			11	%	$	39,782		$	37,772			5	%	$	77,272		$	71,580			8	%

Life Science -
Molecular components	$	5,705		$	5,116			12	%
Immunoassay components		9,088			7,885			15	%
Life Science-
Molecular reagents										$	6,245		$	5,339			17	%	$	11,950		$	10,455			14	%
Immunological reagents											10,424			11,014			(5	)%		19,512			18,899			3	%

Total Life Science	$	14,793		$	13,001			14	%	$	16,669		$	16,353			2	%	$	31,462		$	29,354			7	%

% of Diagnostics revenues -
% of Diagnostics revenues-
Molecular assays		23	%		23	%					24	%		25	%					24	%		24	%
Immunoassays & lead tests		77	%		77	%					76	%		75	%					76	%		76	%

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

% of Life Science revenues -
Molecular components		39	%		39	%
Immunoassay components		61	%		61	%
% of Life Science revenues-
Molecular reagents											37	%		33	%					38	%		36	%
Immunological reagents											63	%		67	%					62	%		64	%

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

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

~~Revenues~~The 2017-2018 flu season was particularly strong, as measured by the rate of laboratory-confirmed influenza hospitalizations (published by the CDC). Our respiratory products, which include tests for ~~our~~~~illumi~~~~gene~~ ~~molecular platform of products increased 12% to $8,668 for~~flu, RSV, Group A Strep, Pertussis, and Mycoplasma pneumonia, among others, were strong performers during the first ~~quarter~~half of fiscal 2018, ~~(also 12% on a constant-currency basis). This increase primarily reflects strong revenue growth in our respiratory-related products~~up $1,333 (18%) during the second quarter and ~~a continuation~~$3,173 (26%) during the first half of the ~~revenue stabilization trend for our~~~~C. difficile~~ ~~tests over the last four quarters.~~

We have over 1,650 customer account placements. Of these account placements, over 1,375 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 600 accounts that are regularly purchasing, evaluating and/or validating two or more assays. Increasing the number of customers utilizing two or more assays is a key objective, as we believe broader menu utilization lessens the risk of displacement by competitors.

We continue to invest in new product development for our molecular testing platform, and this platform now has nine commercialized tests spanning hospital acquired infections, women’s health, respiratory, sexually transmitted diseases, and tropical diseases. As of December 31, 2017, our~~illumi~~~~gene~~ Malaria test has been placed in nearly 175 accounts in the EMEA region for use as a screening test for travelers returning to Europe from endemic areas in Africa. Our efforts to develop market channels in the endemic areas of Africa continue, as we work to convince policy-makers of the advantages of a more accurate molecular test to assist in efforts to eradicate malaria.

We believe that the diagnostic testing market, particularly in the U.S., 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, Luminex and Abbott (Alere division), we believe we are well-

~~positioned. Our simple,easy-to-use,~~~~illumi~~~~gene~~ ~~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 the~~~~illumi~~~~gene~~ ~~assays, make~~~~illumi~~~~gene~~ an attractive molecular platform for any size hospital or physician office laboratory that runs moderately-complex tests. We continue to invest in the development of additional assays for this platform and expect a test for congenital cytomegalovirus (CMV), a leading cause of deafness in infants, to be our next~~FDA-cleared~~ ~~test on the~~~~illumi~~~~gene~~~~platform.~~year.

~~Revenues from our Diagnostics segment’s immunoassay and lead testing products increased 10% in the first quarter of fiscal 2018. These results reflect increased revenues in our~~~~H. pylori~~~~and other immunoassay product lines, partially offset by decreased revenue from Magellan’s lead testing products.~~

~~During the first quarter of fiscal 2018, revenues from our~~~~H. pylori~~ ~~products increased 24% (22% on a constant-currency basis) to $8,860, reflecting~~Reflecting the ongoing conversion of serology testing to our antigen tests and buying patterns of certain ~~customers.~~customers, ourH. pylori products also showed solid revenue growth for the first half of fiscal 2018, up $273 (4%) during the second quarter and $1,977 (13%) during the first half of the fiscal year. We continue to believe there are ongoing benefits to be realized from 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. ~~During fiscal 2017, we also~~We have introduced capabilities to identify resistance to Clarithromycin, the antibiotic commonly used to treatH. pylori~~.This~~. This is currently available in an Analyte Specific Reagent (ASR) format. We believe that partnering the ability to diagnoseH. pylori and identify resistance provides a competitive advantage.

The patents for ourH. pylori products, owned by us, expired in May 2016 in the U.S. and in May 2017 in countries outside the U.S. We expect competition with respect to ourH. pylori products, which represent approximately 15% of our total revenues, to increase in the near future, ~~as we currently market the onlyFDA-cleared~~ ~~tests to detect~~~~H. pylori~~ ~~antigen in stool samples in the U.S. market. Such~~and 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 competition, our product development pipeline includes multiple new product initiatives for the detection ofH. pylori~~.We~~. We are unable to provide 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. See Note 9“Litigation Matters”of the accompanying Condensed Consolidated Financial Statements regarding related litigation.

Revenues for our other diagnostic products also performed well in the aggregate during the first ~~quarter~~half of fiscal 2018, ~~revenues from our other immunoassay products (including~~~~C. difficile~~~~, foodborne and respiratory) increased 16% (14% in constant-currency) to $15,544. Although benefiting from the effects of strong seasonal respiratory sales, the extension of the growth experienced~~increasing $713 (3%) during the second quarter and $1,024 (2%) during the first half of ~~fiscal 2017 continues to support our belief that this portion of our business has stabilized and is positioned for continued future growth.~~

~~Revenues from Magellan’s sale of products to test for elevated levels of lead in blood totaled $4,159 during~~ the fiscal 2018 first quarter. This level of revenues reflects a 20% decrease from the three-month period ended December 31, 2016, primarily resulting from (i) the effect of the prior year quarter including an international bulk kit purchase that was not repeated during the current year quarter; and (2) decreased revenue from lead testing systems utilizing venous blood samples, in connection with the FDA matter noted above.year.

During the ~~first~~second quarter of fiscal 2018, revenues from our Life Science segment increased ~~14%~~2%, with revenues from molecular ~~component~~reagent sales increasing ~~12% from the comparable fiscal 2017 quarter~~17% and revenues from ~~immunoassay component~~immunological reagent sales decreasing 5%. For the first six months of fiscal 2018, revenues from our Life Science segment increased 7%, with revenues from molecular reagent sales increasing ~~15%~~14% and revenues from immunological reagent sales increasing 3%. Our molecular ~~component business’~~reagent products’ revenue growth was impacted by the movement in currency exchange rates since the ~~first quarter of~~ fiscal 2017 periods, with revenues increasing 7%12% and 8% on a constant-currency basis over the second quarter and first ~~quarter~~six months of fiscal ~~2017. Our~~2017, respectively. Comparisons of our immunological reagents products’ revenue to the prior year quarter was impacted by the fact that the 2017 second quarter revenue for such products was extraordinarily high due to a high level of contract manufacturing activity and the timing of orders from certain large customers.Overall, our Life Science segment continued to benefit from ~~(i)~~ increased revenues in the steadily-expanding tropical disease product family, with sales of such products increasing 20% over the fiscal 2017 first quarter to approximately $1,300 in the first quarter of fiscal 2018; and (ii) increased revenue from sales into China, with such sales totaling approximately ~~$1,500~~$2,100 during ~~first~~second quarter of fiscal 2018 ~~(approximately $200 in~~and approximately $3,600 during the ~~molecular components business and $1,300 in the immunoassay components business)~~year-to-date period – representing ~~an approximate 115% increase~~increases of approximately 60% and 80% over the ~~first quarter~~comparable periods of fiscal 2017.

Revenue concentrations related to certain customers within our Diagnostics and Life Science segments are set forth in Note 8“Reportable Segments and Major Customers Information” of the accompanying Condensed Consolidated Financial Statements.


	Three Months Ended December 31,									Three Months Ended March 31,									Six Months Ended March 31,
	2017			2016			Change			2018			2017			Change			2018			2017			Change
Gross Profit	$	31,786		$	29,039			9	%	$	34,569		$	33,477			3	%	$	66,355		$	62,516			6	%
Gross Profit Margin		61	%		62	%		-1 point			61	%		62	%		-1 point			61	%		62	%		-1 point

The gross profit margin decreases experienced in fiscal 2018 primarily result from the combined effects of mix of products sold and operating segment mix.

Total operating expenses increased during both the second quarter and first ~~quarter~~six months of fiscal 2018, ~~compared~~relating primarily to (i) executive transition and realignment costs; (ii) litigation costs; (iii) overall impact of the weakening of the U.S. dollar relative to the ~~first quarter of fiscal 2017, relating primarily to~~foreign currencies in which the Company’s foreign operations incur expenses; and (iv) overall increases in spending in our Diagnostics segment, with such increased Diagnostics spending reflecting the following:

~~CEO~~Executive transition and ~~litigation costs. CEO transition~~realignment costs ~~which~~(reflected within “Other” in the above tables) totaled ~~$734,~~$3,458 and $4,192 for the quarterly andyear-to-date periods, respectively. These costs reflect compensation and benefits for our Executive Chairman (formerly Chairman and CEO) during 2018, while we also have the compensation and benefits costs of a new ~~CEO.~~ CEO, along with executive termination related expenses incurred in the second quarter of fiscal 2018 in connection with realigning our business structure.

Litigation costs (reflected within “Other” in the above tables), which totaled ~~$749,~~$1,453 and $2,202 for the quarterly andyear-to-date periods, respectively, relate to the matters discussed in Note 9“Litigation Matters” of the accompanying Condensed Consolidated Financial Statements and Part II. Item 1 of this Quarterly Report on Form10-Q.

Operating income decreased ~~20%~~46% to ~~$8,061~~$7,678 for the second quarter of fiscal 2018, and decreased 35% to $15,739 for the first ~~quarter~~six months of fiscal 2018, as a result of the factors discussed above.

The effective rate for income taxes was ~~18%~~27% and 22% for the ~~first quarter of~~ fiscal 2018 second quarter and six monthyear-to-date periods, respectively, compared to 34% and 35% ~~for~~during the ~~first quarter of 2017. This~~corresponding fiscal 2017 periods. These lower fiscal 2018 ~~tax~~taxes primarily ~~results~~result from the combined net impact of the following effects of the recently-enacted tax reform act (see Note 6“Income Taxes” of the accompanying Condensed Consolidated Financial Statements):

Excluding the effects of theseone-time tax effects, we expect the overall effective tax rate for the fiscal year ending September 30, 2018 to approximate26%-27%.

Our cash flow and financing requirements are determined by analyses of operating and capital spending budgets, debt service, 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.

We have an investment policy that guides the holdings of our investment portfolio, which presently consists of bank savings accounts and institutional money market mutual funds. 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.

Considering the various worldwidegeo-political andgeo-economic conditions (including Brexit), we do not expect macroeconomic 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 revolving credit facility. Our liquidity needs may change if overall economic conditions worsen 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, impact credit terms with our vendors, or disrupt the supply of raw materials and services.

Net cash provided by operating activities totaled ~~$5,171~~$13,839 for the first ~~three~~six months of fiscal 2018, a ~~60%~~45% decrease from the ~~$12,993~~$25,132 provided during the first ~~three~~six months of fiscal 2017. While reflecting the timing of payments from customers, and to suppliers and taxing authorities, this decrease also results in large part from the net effects of (i) increased customer receivables from higher sales levels; and (ii) increased inventory levels during the first ~~quarter~~half of fiscal 2018, largely related to continued expansion in Asia; ~~and (iii) decreased~~partially offset by the effects of increased accrued employee compensation costs during the ~~first quarter~~fiscal 2018 period largely as a result of executive realignment activities, coupled with such accruals decreasing during the fiscal 2017 period, reflecting the payment of discretionary bonuses and the timing of regularly scheduled payroll payments. 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.

During fiscal 2017, ~~first quarter,~~ the ~~Board of Directors reduced the fiscal 2017~~ indicated annual cash dividend rate towas established at $0.50 per share (down from $0.80 per share) in order to align it with the stated policy guidelines of the payout ratio to range between 75% and 85% of each fiscal year’snon-GAAP net earnings. Consistent with this annual indicated dividend rate, a cash dividend of $0.125 per share was declared for each of the first ~~quarter~~and second quarters of fiscal 2018, representing ~~83%~~104% and 93% of the second quarter and first six months diluted earnings per ~~share.~~share, respectively; 60% and 69% of the periods’ diluted earnings per share on anon-GAAP basis (see “USE OFNON-GAAP MEASURES” above).

As described in Note 7“Bank Credit Arrangements” of the accompanying Condensed Consolidated Financial Statements, in connection with the acquisition of Magellan, the Company entered into a $60,000 five-year term loan with a commercial bank. The term loan requires quarterly principal and interest payments, with interest at a variable rate tied to LIBOR, and a balloon principal payment due March 31, 2021. In addition, we have a $30,000 revolving credit facility with a commercial bank that expires March 31, 2021. As of ~~January 31,~~April 30, 2018, 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 revolving credit facility during the first ~~three~~six months of fiscal 2018 or during the full year of fiscal 2017.

Our capital expenditures are estimated to range between approximately $4,000 to $5,000 for fiscal 2018, with the actual amount dependent 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 revolving credit facility discussed above.

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

ITEM ~~3. QUANTITATIVE~~3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in the Company’s exposure to market risk since September 30, 2017.

Under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of the Company’s disclosure controls and procedures, as defined in Rules13a-15(e) and15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of ~~December~~March 31, ~~2017.~~2018. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were ~~not~~ effective as of ~~December~~March 31, ~~2017 due to~~2018.

Remediation of the ~~material weakness identified in our internal control over financial reporting described below.~~Prior Year Material Weakness

As previously disclosed in the Company’s Annual Report on Form10-K for the fiscal year ended September 30, 2017, a material weakness was identified in the design and operating effectiveness of the Company’s internal control over financial reporting. Specifically, deficiencies were identified related to Information Technology General Controls (“ITGC”) intended to restrict access to certain data and applications, resulting in inappropriate access at both the Information Technology and end user levels within an application impacting financial reporting functions and controls. As a result, we concluded that the Company’s disclosure controls and procedures were not effective in providing reasonable assurance that information required to be disclosed in our reports filed under the Exchange Act was recorded, processed, summarized and reported within the time periods prescribed by SEC rules and regulations, and that such information was accumulated and communicated to our management to allow timely decisions regarding required disclosure.

~~The~~In response to this material weakness, the Company ~~has~~ implemented ~~and continues to implement~~ changes to its internal control over financial reporting to remediate the control deficiencies that gave rise to the material ~~weakness. Since the end~~weakness originally identified as of ~~the fiscal year, we have taken~~September 30, 2017. Those changes included, but were not limited to, taking steps to strengthen information technology security and user access controls. We have tested the newly implemented controls and ~~begin the remediation of the material weakness described above. We are working to complete our evaluation, fully implement these controls and identify the appropriate level of documentation~~found them to be ~~maintained to evidence~~effective and therefore, have concluded that as of March 31, 2018, the effectiveness of these controls. We believe the remediation measures will strengthen our internal control over financial reporting and remediate the material weakness identified. However, as we are still assessing the design and operating effectiveness of these measures, thepreviously identified material weakness has ~~not~~ been ~~fully remediated as of December 31, 2017. We will continue to monitor the effectiveness of these remediation measures and will make any changes and take such other actions that we deem appropriate.~~remediated.

Except as described above, there were no changes in our internal control over financial reporting (as that term is defined in Rules13a-15(f) and15d-15(f) under the Exchange Act) during the quarter ended ~~December~~March 31, ~~2017~~2018 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

See Note 9“Litigation Matters” and Note 10“Subsequent Events”of the accompanying Condensed Consolidated Financial Statements.

There have been no material changes from risk factors as previously disclosed in the Company’s fiscal 2017 Annual Report onForm10-K in response to Item 1A to Part I of Form10-K.

The following exhibits are being filed or furnished as a part of this Quarterly Report on Form10-Q.

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 ~~January 31,~~April 30, 2018
Common Stock, no par value		~~42,307,742~~42,344,282


		Page(s)

PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Statements of Operations Three and Six Months Ended ~~December~~March 31, ~~2017~~2018 and ~~2016~~2017		1

	Condensed Consolidated Statements of Comprehensive Income Three and Six Months Ended ~~December~~March 31, ~~2017~~2018 and ~~2016~~2017		2

	Condensed Consolidated Statements of Cash Flows ~~Three~~Six Months Ended ~~December~~March 31, ~~2017~~2018 and ~~2016~~2017		3

	Condensed Consolidated Balance Sheets ~~December~~March 31, ~~2017~~2018 and September 30, 2017		4-5

	Condensed Consolidated Statement of Changes in Shareholders’ Equity ~~Three~~Six Months Ended ~~December~~March 31, ~~2017~~2018		6

	Notes to Condensed Consolidated Financial Statements		~~7-12~~7-13

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		~~12-20~~14-23

Item 3.	Quantitative and Qualitative Disclosures About Market Risk		2123

Item 4.	Controls and Procedures		2123

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings		2224

Item 1A.	Risk Factors		2224

Item 6.	Exhibits		2224

Signature			2225


	December 31, 2017				September 30, 2017
	Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Manufacturing technologies, core products and cell lines	$	22,341	$	13,117	$	22,332	$	12,807
Trade names, licenses and patents		8,699		4,632		8,689		4,398
Customer lists, customer relationships and supply agreements		24,586		12,190		24,562		11,854
Non-compete agreements		720		630		720		540

	$	56,346	$	30,569	$	56,303	$	29,599


	March 31, 2018				September 30, 2017
	Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Manufacturing technologies, core products and cell lines	$	22,391	$	13,469	$	22,332	$	12,807
Trade names, licenses and patents		8,758		4,905		8,689		4,398
Customer lists, customer relationships and supply agreements		24,721		12,611		24,562		11,854
Non-compete agreements		720		720		720		540

	$	56,590	$	31,705	$	56,303	$	29,599



10.1		~~Employment~~Separation Agreement and Release of Claims dated ~~October 9, 2017~~February 20, 2018 between ~~Meridian~~the Company and ~~John P. Kenny~~Richard L. Eberly (Incorporated by reference to Meridian’s Form8-K filed with the Securities and Exchange Commission on ~~October 11, 2017)~~February 26, 2018)

10.2		Separation Agreement and Release of Claims dated February 20, 2018 between the Company and Vecheslav A. Elagin (Incorporated by reference to Meridian’s Form8-K filed with the Securities and Exchange Commission on February 26, 2018)

10.3		April 2018 Revision to Fiscal 2018 Cash-Based Incentive Compensation Plan – Officers and Selected Executives

31.1		Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rule13a-14(a)/15d-14(a)

31.2		Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rule13a-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 Form10-Q for the quarter ended ~~December~~March 31, ~~2017~~2018 filed with the SEC on ~~February 7,~~May 10, 2018, formatted in XBRL includes: (i) Condensed Consolidated Statements of Operations for the three and six months ended ~~December~~March 31, ~~2017~~2018 and ~~2016;~~2017; (ii) Condensed Consolidated Statements of Comprehensive Income for the three and six months ended ~~December~~March 31, ~~2017~~2018 and ~~2016;~~2017; (iii) Condensed Consolidated Statements of Cash Flows for the ~~three~~six months ended ~~December~~March 31, ~~2017~~2018 and ~~2016;~~2017; (iv) Condensed Consolidated Balance Sheets as of ~~December~~March 31, ~~2017~~2018 and September 30, 2017; (v) Condensed Consolidated Statement of Shareholders’ Equity for the ~~three~~six months ended ~~December~~March 31, ~~2017;~~2018; and (vi) the Notes to Condensed Consolidated Financial Statements


	Research & Development			Selling & Marketing			General & Administrative			Other			Total Operating Expenses
Fiscal 2017 First Quarter:
Diagnostics	$	2,973		$	5,494		$	5,805		$	—		$	14,272
Life Science		624			2,124			1,934			—			4,682

Total 2017 First Quarter Expenses	$	3,597		$	7,618		$	7,739		$	—		$	18,954

Fiscal 2018 First Quarter:
Diagnostics	$	3,737		$	6,445		$	6,772		$	1,483		$	18,437
Life Science		759			2,397			2,132			—			5,288

Total 2018 First Quarter Expenses	$	4,496		$	8,842		$	8,904		$	1,483		$	23,725


	Research & Development			Selling & Marketing			General & Administrative			Other			Total Operating Expenses
Fiscal 2017 First Quarter Expenses	$	3,597		$	7,618		$	7,739		$	—		$	18,954

% of Revenues		8	%		16	%		17	%		—	%		40	%
Fiscal 2018 First Quarter Increases:
Diagnostics		764			951			967			1,483			4,165
Life Science		135			273			198			—			606

Fiscal 2018 First Quarter Expenses	$	4,496		$	8,842		$	8,904		$	1,483		$	23,725

% of Revenues		9	%		17	%		17	%		3	%		45	%
% Increase		25	%		16	%		15	%		NMF			25	%

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Emerging growth company