Segment Information

3 Months Ended

Mar. 31, 2024

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, E-vita Thoracic 3G, and Artivex. 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 March 31,
	2024		2023
Revenues:
Medical devices	$	71,114	$	62,291
Preservation services	26,317		20,938
Total revenues	97,431		83,229
Cost of products and preservation services:
Medical devices	23,750		19,533
Preservation services	10,735		9,969
Total cost of products and preservation services	34,485		29,502
Gross margin:
Medical devices	47,364		42,758
Preservation services	15,582		10,969
Total gross margin	$	62,946	$	53,727

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

	Three Months Ended March 31,
	2024		2023
Products:
Aortic stent grafts	$	32,103	$	26,150
On-X	19,681		17,656
Surgical sealants	16,981		16,703
Other	2,349		1,782
Total products	71,114		62,291
Preservation services	26,317		20,938
Total revenues	$	97,431	$	83,229