Segment Information

6 Months Ended

Jun. 30, 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, HeRO Graft, and other products.  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,
	2014		2013		2014		2013
Revenues:
Medical devices	$	20,350	$	18,195	$	39,805	$	37,991
Preservation services		14,340		15,317		30,616		30,994
Othera		--		8		--		71
Total revenues		34,690		33,520		70,421		69,056
Cost of products and preservation services:
Medical devices		4,131		3,721		7,932		7,186
Preservation services		8,175		8,320		17,632		17,115
Total cost of products and preservation services		12,306		12,041		25,564		24,301
Gross margin:
Medical devices		16,219		14,474		31,873		30,805
Preservation services		6,165		6,997		12,984		13,879
Othera		--		8		--		71
Total gross margin	$	22,384	$	21,479	$	44,857	$	44,755

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
Products:
BioGlue and BioFoam	$	15,389	$	13,542	$	30,629	$	29,006
PerClot		1,143		940		2,059		1,804
Revascularization technologies		2,084		2,293		3,768		4,484
HeRO Graft		1,705		1,420		3,320		2,697
Other products		29		--		29		--
Total products		20,350		18,195		39,805		37,991
Preservation services:
Cardiac tissue		6,454		6,818		13,644		13,463
Vascular tissue		7,886		8,499		16,972		17,531
Total preservation services		14,340		15,317		30,616		30,994
Othera		--		8		--		71
Total revenues	$	34,690	$	33,520	$	70,421	$	69,056

___________________

aThe “Other” designation includes grant revenue.