SurModics, Inc. updated earnings guidance for the year ending September 30, 2016. The revenue and earnings per share ranges incorporate the acquisition of Creagh Medical. The company now estimates GAAP revenue for fiscal 2016 to be in the range of $60.0 million to $64.0 million.

This includes an aggregate of $3.5 million to $4.5 million from the acquisition of Creagh Medical. Diluted GAAP earnings are expected to range from $0.38 to $0.43 per share, which includes $4.4 million to $5.0 million, or $0.27 to $0.31 per share, of integration costs, as well as amortization and contingent consideration accretion expenses associated with the acquisition. Because the final purchase accounting for the Creagh Medical acquisition has not been completed, the amount of amortization and contingent consideration accretion expenses may vary materially from preliminary estimates.

Non-GAAP earnings are expected to range from $0.66 to $0.75 per share. Assumptions in the company's 2016 guidance include: No substantial changes in the USD and Euro exchange range in fiscal 2016 from current rates. SurModics anticipates research and development expenses to be approximately mid-30% of revenue.

Selling, general and administrative expenses are projected to be approximately mid-20% of revenue. The income tax rate is expected to be between 39.0% and 42.0%. This includes the benefit of the re-enactment of the Federal R&D tax credit, offset by on-tax benefited items including contingent consideration accretion and transaction costs.

SurModics estimates capital expenditures to be between $4.5 million and $5.0 million, including investments in Creagh Medical's Irish facility.