Segment Information

9 Months Ended

Sep. 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				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014		2013
Revenues:
Medical devices	$	20,405	$	18,833	$	60,210	$	56,824
Preservation services		16,664		17,417		47,280		48,411
Othera		--		--		--		71
Total revenues		37,069		36,250		107,490		105,306
Cost of products and preservation services:
Medical devices		4,167		3,544		12,099		10,730
Preservation services		9,103		9,357		26,735		26,472
Total cost of products and preservation services		13,270		12,901		38,834		37,202
Gross margin:
Medical devices		16,238		15,289		48,111		46,094
Preservation services		7,561		8,060		20,545		21,939
Othera		--		--		--		71
Total gross margin	$	23,799	$	23,349	$	68,656	$	68,104

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014		2013
Products:
BioGlue and BioFoam	$	15,116	$	14,232	$	45,745	$	43,238
PerClot		998		882		3,057		2,686
Revascularization technologies		2,306		2,353		6,074		6,837
HeRO Graft		1,984		1,366		5,304		4,063
Other products		1		--		30		--
Total products		20,405		18,833		60,210		56,824
Preservation services:
Cardiac tissue		8,337		8,572		21,981		22,035
Vascular tissue		8,327		8,845		25,299		26,376
Total preservation services		16,664		17,417		47,280		48,411
Othera		--		--		--		71
Total revenues	$	37,069	$	36,250	$	107,490	$	105,306

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aThe “Other” designation includes grant revenue.