Segment Information

9 Months Ended

Sep. 30, 2023

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, On-X, surgical sealants, 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, NEXUS DUO, and E-vita Thoracic 3G. 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,
	2023		2022		2023		2022
Revenues:
Medical devices	$	63,747	$	55,248	$	192,041	$	171,726
Preservation services	24,107		21,590		68,293		62,665
Total revenues	87,854		76,838		260,334		234,391
Cost of products and preservation services:
Medical devices	21,574		17,743		62,084		53,381
Preservation services	10,010		10,351		30,169		29,375
Total cost of products and preservation services	31,584		28,094		92,253		82,756
Gross margin:
Medical devices	42,173		37,505		129,957		118,345
Preservation services	14,097		11,239		38,124		33,290
Total gross margin	$	56,270	$	48,744	$	168,081	$	151,635

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Products:
Aortic stent grafts	$	25,523	$	19,674	$	80,032	$	69,013
On-X	18,744		16,456		54,346		47,082
Surgical sealants	16,234		17,374		49,503		49,022
Other	3,246		1,744		8,160		6,609
Total products	63,747		55,248		192,041		171,726
Preservation services	24,107		21,590		68,293		62,665
Total revenues	$	87,854	$	76,838	$	260,334	$	234,391