Business Segment, Geographic Areas and Major Customers

6 Months Ended

Jun. 30, 2011

Business Segment, Geographic Areas and Major Customers [Abstract]

Business Segment, Geographic Areas and Major Customers

Note 15. Business Segment, Geographic Areas and Major Customers

For financial reporting purposes, we have one reportable segment which designs, manufactures and markets medical devices for the treatment of advanced heart failure. Generally, products are sold to customers located in the United States through our clinical trials, as commercial products to customers in Europe and under special access in other countries. Product sales attributed to a country or region are based on the location of the customer to whom the products are sold. Long-lived assets are primarily held in the United States.

Product sales by geographic location are as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2011		2010		2011		2010
Domestic	$	6,291	$	1,865	$	12,189	$	4,547
Germany		8,214		5,283		13,712		10,839
International, excluding Germany		5,884		2,609		12,463		5,074
	$	20,389	$	9,757	$	38,364	$	20,460

For the three and six months ended June 30, 2011, one customer accounted for approximately 11% and 10%, respectively, of product sales in the aggregate. For the three and six months ended June 30, 2010, two customers exceeded 10% of product sales individually and accounted for approximately 30% and 29%, respectively, of product sales in the aggregate. As the majority of our revenue is generated outside of the U.S., we are dependent on favorable economic and regulatory environments for our products in Europe and other countries outside of the U.S.

The percentage of our revenue generated in the U.S. was lower in 2010 compared to 2011 due to the completion of enrollment in our ADVANCE trial in the U.S. in February 2010. While the FDA approved an Investigational Device Exemption Supplement that allowed us to enroll additional patients in our ADVANCE trial under a Continued Access Protocol, we did not recommence enrollment in our ADVANCE trial until the second quarter of 2010 while we awaited approval. Also contributing to the increase in the percentage of our revenue generated in the U.S. in 2011 was continued enrollment in our ENDURANCE destination therapy clinical trial in the U.S., which commenced in August 2010.