Segment Information

3 Months Ended

Mar. 31, 2012

Segment Information

Segment Information

16.Segment Information

The Company has two reportable segments organized according to its services and products: Preservation Services and Medical Devices.The Preservation Services segment includes external services revenues from the preservation of cardiac and vascular tissues.The Medical Devices segment includes external revenues from product sales of BioGlue^® Surgical Adhesive (“BioGlue”), BioFoam^® Surgical Matrix (“BioFoam”), PerClot, HemoStase, and revascularization technologies. There are no intersegment revenues.

The primary measure of segment performance, as viewed by the Company’s management, is segment gross margin, or net external revenues less cost of preservation services and products.The Company does not segregate assets by segment; therefore, asset information is excluded from the segment disclosures below.The following table summarizes revenues, cost of services and products, and gross margins for the Company’s operating segments (in thousands):

	Three Months Ended
	March 31,
	2012		2011
Revenues:
Preservation services	$	15,659	$	15,674
Medical devices		16,454		14,429
Othera		188		93
Total revenues		32,301		30,196
Cost of preservation services and products:
Preservation services		8,496		9,196
Medical devices		2,513		2,496
Total cost of preservation services and products		11,009		11,692
Gross margin:
Preservation services		7,163		6,478
Medical devices		13,941		11,933
Othera		188		93
Total gross margin	$	21,292	$	18,504

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

	Three Months Ended
	March 31,
	2012		2011
Preservation services:
Cardiac tissue	$	7,080	$	6,534
Vascular tissue		8,579		9,140
Total preservation services		15,659		15,674
Products:
BioGlue and BioFoam		13,696		11,974
PerClot		644		660
HemoStase		--		1,795
Revascularization technologies		2,114		--
Total products		16,454		14,429
Othera		188		93
Total revenues	$	32,301	$	30,196

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^aFor the three months ended March 31, 2012 and 2011, the “Other” designation includes grant revenue.