Segment Information

9 Months Ended

Sep. 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				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Revenues:
Medical devices	$	18,833	$	16,893	$	56,824	$	50,043
Preservation services		17,417		16,399		48,411		48,371
Othera		--		137		71		504
Total revenues		36,250		33,429		105,306		98,918
Cost of products and preservation services:
Medical devices		3,544		3,114		10,730		8,300
Preservation services		9,357		9,005		26,472		26,645
Total cost of products and preservation services		12,901		12,119		37,202		34,945
Gross margin:
Medical devices		15,289		13,779		46,094		41,743
Preservation services		8,060		7,394		21,939		21,726
Othera		--		137		71		504
Total gross margin	$	23,349	$	21,310	$	68,104	$	63,973

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Products:
BioGlue and BioFoam	$	14,232	$	12,725	$	43,238	$	39,858
PerClot		882		734		2,686		2,069
Revascularization technologies		2,353		2,060		6,837		6,107
HeRO Graft		1,366		1,374		4,063		2,009
Total products		18,833		16,893		56,824		50,043
Preservation services:
Cardiac tissue		8,572		8,239		22,035		22,662
Vascular tissue		8,845		8,160		26,376		25,709
Total preservation services		17,417		16,399		48,411		48,371
Othera		--		137		71		504
Total revenues	$	36,250	$	33,429	$	105,306	$	98,918

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aThe “Other” designation includes grant revenue.