Segment Information

3 Months Ended

Mar. 31, 2014

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 preservation services, and gross margins for the Company’s operating segments (in thousands): 

	Three Months Ended
	March 31,
	2014		2013
Revenues:
Medical devices	$	19,455	$	19,796
Preservation services		16,276		15,677
Othera		--		63
Total revenues		35,731		35,536
Cost of products and preservation services:
Medical devices		3,801		3,465
Preservation services		9,457		8,795
Total cost of products and preservation services		13,258		12,260
Gross margin:
Medical devices		15,654		16,331
Preservation services		6,819		6,882
Othera		--		63
Total gross margin	$	22,473	$	23,276

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

	Three Months Ended
	March 31,
	2014		2013
Products:
BioGlue and BioFoam	$	15,240	$	15,464
PerClot		916		864
Revascularization technologies		1,684		2,191
HeRO Graft		1,615		1,277
Total products		19,455		19,796
Preservation services:
Cardiac tissue		7,190		6,645
Vascular tissue		9,086		9,032
Total preservation services		16,276		15,677
Othera		--		63
Total revenues	$	35,731	$	35,536

___________________  

aThe “Other” designation includes grant revenue.