Segment Information

6 Months Ended

Jun. 30, 2013

Segment Information [Abstract]

Segment Information

16.  Segment Information

The Company has two reportable segments organized according to its products and services: Medical Devices and Preservation Services.  The Medical Devices segment includes external revenues from product sales of BioGlue^® Surgical Adhesive (“BioGlue”), BioFoam^® Surgical Matrix (“BioFoam”), PerClot, revascularization technologies, and HeRO Graft.  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 the Company’s management, is segment gross margin, or net external revenues less cost of products and preservation services.  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 products and services, and gross margins for the Company’s operating segments (in thousands): 

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Revenues:
Medical devices	$	18,195	$	16,696	$	37,991	$	33,150
Preservation services		15,317		16,313		30,994		31,972
Othera		8		179		71		367
Total revenues		33,520		33,188		69,056		65,489
Cost of products and preservation services:
Medical devices		3,721		2,673		7,186		5,186
Preservation services		8,320		9,144		17,115		17,640
Total cost of products and preservation services		12,041		11,817		24,301		22,826
Gross margin:
Medical devices		14,474		14,023		30,805		27,964
Preservation services		6,997		7,169		13,879		14,332
Othera		8		179		71		367
Total gross margin	$	21,479	$	21,371	$	44,755	$	42,663

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Products:
BioGlue and BioFoam	$	13,542	$	13,437	$	29,006	$	27,133
PerClot		940		691		1,804		1,335
Revascularization technologies		2,293		1,933		4,484		4,047
HeRO Graft		1,420		635		2,697		635
Total products		18,195		16,696		37,991		33,150
Preservation services:
Cardiac tissue		6,818		7,343		13,463		14,423
Vascular tissue		8,499		8,970		17,531		17,549
Total preservation services		15,317		16,313		30,994		31,972
Othera		8		179		71		367
Total revenues	$	33,520	$	33,188	$	69,056	$	65,489

___________________  

^aFor the three and six months endedJune 30, 2013 and 2012 the “Other” designation includes grant revenue.