Segment Information

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Information

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 aortic stent grafts, surgical sealants, On-X, and other product revenues. Aortic stent grafts include aortic arch stent grafts, abdominal stent grafts, and synthetic vascular grafts. Aortic arch stent grafts include our E-vita Open NEO, E-vita Open Plus, AMDS, NEXUS, E-vita Thoracic 3G, and E-nya products. Abdominal stent grafts include our E-xtra Design Engineering, E-nside, E-tegra, E-ventus BX, and E-liac products. Surgical sealants include BioGlue Surgical Adhesive products. 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 September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Revenues:
Medical devices	$	55,248	$	53,107	$	171,726	$	162,528
Preservation services	21,590		19,100		62,665		56,914
Total revenues	76,838		72,207		234,391		219,442
Cost of products and preservation services:
Medical devices	17,743		15,503		53,381		46,592
Preservation services	10,351		8,915		29,375		26,710
Total cost of products and preservation services	28,094		24,418		82,756		73,302
Gross margin:
Medical devices	37,505		37,604		118,345		115,936
Preservation services	11,239		10,185		33,290		30,204
Total gross margin	$	48,744	$	47,789	$	151,635	$	146,140

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Products:
Aortic stent grafts	$	19,674	$	20,896	$	69,013	$	62,165
Surgical sealants	17,374		16,544		49,022		52,236
On-X	16,456		14,022		47,082		41,843
Other	1,744		1,645		6,609		6,284
Total products	55,248		53,107		171,726		162,528
Preservation services	21,590		19,100		62,665		56,914
Total revenues	$	76,838	$	72,207	$	234,391	$	219,442