Segment Information

9 Months Ended

Sep. 30, 2012

Segment Information [Abstract]

Segment Information

17.  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, revascularization technologies, and HeRO Graft.  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				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012		2011
Revenues:
Preservation services	$	16,399	$	14,656	$	48,371	$	45,018
Medical devices		16,893		14,923		50,043		43,932
Othera		137		75		504		279
Total revenues		33,429		29,654		98,918		89,229
Cost of preservation services and products:
Preservation services		9,005		8,349		26,645		25,709
Medical devices		3,114		2,393		8,300		7,051
Total cost of preservation services and products		12,119		10,742		34,945		32,760
Gross margin:
Preservation services		7,394		6,307		21,726		19,309
Medical devices		13,779		12,530		41,743		36,881
Othera		137		75		504		279
Total gross margin	$	21,310	$	18,912	$	63,973	$	56,469

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012		2011
Preservation services:
Cardiac tissue	$	8,239	$	6,764	$	22,662	$	19,989
Vascular tissue		8,160		7,892		25,709		25,029
Total preservation services		16,399		14,656		48,371		45,018
Products:
BioGlue and BioFoam		12,725		12,190		39,858		36,936
PerClot		734		620		2,069		1,911
HemoStase		--		--		--		1,795
Revascularization technologies		2,060		2,113		6,107		3,290
HeRO Graft		1,374		--		2,009		--
Total products		16,893		14,923		50,043		43,932
Othera		137		75		504		279
Total revenues	$	33,429	$	29,654	$	98,918	$	89,229

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^aFor the three and nine months endedSeptember 30, 2012 and 2011, the “Other” designation includes grant revenue.