Segment Information

9 Months Ended

Sep. 30, 2019

14. 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				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Revenues:
Medical devices	$	47,484	$	45,152	$	147,053	$	138,063
Preservation services		20,397		19,446		59,472		56,979
Total revenues		67,881		64,598		206,525		195,042

Cost of products and preservation services:
Medical devices		12,706		12,459		41,021		40,166
Preservation services		9,953		9,425		29,043		27,083
Total cost of products and preservation services		22,659		21,884		70,064		67,249

Gross margin:
Medical devices		34,778		32,693		106,032		97,897
Preservation services		10,444		10,021		30,429		29,896
Total gross margin	$	45,222	$	42,714	$	136,461	$	127,793

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


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Products:
BioGlue	$	15,679	$	15,646	$	50,834	$	48,685
JOTEC		15,774		15,004		48,936		46,669
On-X		12,610		11,298		36,751		33,495
CardioGenesis cardiac laser therapy		1,354		1,590		4,966		4,514
PerClot		980		882		2,814		2,822
PhotoFix		1,087		732		2,752		1,878
Total products		47,484		45,152		147,053		138,063

Preservation services:
Cardiac tissue		11,304		9,502		30,734		26,660
Vascular tissue		9,093		9,944		28,738		30,319
Total preservation services		20,397		19,446		59,472		56,979

Total revenues	$	67,881	$	64,598	$	206,525	$	195,042