Segment Information

6 Months Ended

Jun. 30, 2019

13. Segment Information

We have two reportable segments organized according to our products and services: Medical Devices and Preservation Services. The Medical Devices segment includes external revenues from product sales of BioGlue, JOTEC products, On-X products, CardioGenesis cardiac laser therapy, PerClot, and PhotoFix. The Preservation Services segment includes external services revenues from the preservation of cardiac and vascular tissues. There are no intersegment revenues.

The primary measure of segment performance, as viewed by our management, is segment gross margin or net external revenues less cost of products and preservation services. We do not segregate assets by segment; therefore, asset information is excluded from the segment disclosures below.

The following table summarizes revenues, cost of products and preservation services, and gross margins for our operating segments (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Revenues:
Medical devices	$	51,168	$	49,313	$	99,569	$	92,911
Preservation services		19,971		19,183		39,075		37,533
Total revenues		71,139		68,496		138,644		130,444

Cost of products and preservation services:
Medical devices		14,489		13,550		28,315		27,707
Preservation services		9,684		9,095		19,090		17,658
Total cost of products and preservation services		24,173		22,645		47,405		45,365

Gross margin:
Medical devices		36,679		35,763		71,254		65,204
Preservation services		10,287		10,088		19,985		19,875
Total gross margin	$	46,966	$	45,851	$	91,239	$	85,079

The following table summarizes net revenues by product and service (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Products:
BioGlue	$	17,933	$	17,069	$	35,155	$	33,039
JOTEC		17,208		17,205		33,162		31,665
On-X		12,410		11,888		24,141		22,197
CardioGenesis cardiac laser therapy		1,898		1,578		3,612		2,924
PerClot		784		968		1,834		1,940
PhotoFix		935		605		1,665		1,146
Total products		51,168		49,313		99,569		92,911

Preservation services:
Cardiac tissue		10,500		9,055		19,430		17,158
Vascular tissue		9,471		10,128		19,645		20,375
Total preservation services		19,971		19,183		39,075		37,533

Total revenues	$	71,139	$	68,496	$	138,644	$	130,444