Segment Information

3 Months Ended

Mar. 31, 2020

14. Segment Information

We have two reportable segments organized according to our products and services: Medical Devices and Preservation Services. The Medical Devices segment includes external revenues from product sales of BioGlue, JOTEC, On-X, CardioGenesis cardiac laser therapy, PerClot, PhotoFix, and NEXUS. 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 our management, is segment gross margin or net external revenues less cost of products and preservation services. We do 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 our operating segments (in thousands):


	Three Months Ended
	March 31,
	2020		2019
Revenues:
Medical devices	$	46,420	$	48,401
Preservation services		20,009		19,104
Total revenues		66,429		67,505

Cost of products and preservation services:
Medical devices		13,040		13,826
Preservation services		9,218		9,406
Total cost of products and preservation services		22,258		23,232

Gross margin:
Medical devices		33,380		34,575
Preservation services		10,791		9,698
Total gross margin	$	44,171	$	44,273

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


	Three Months Ended
	March 31,
	2020		2019
Products:
BioGlue	$	16,737	$	17,222
JOTEC		15,268		15,954
On-X		12,202		11,731
PhotoFix		1,042		730
PerClot		860		1,050
NEXUS		200		--
CardioGenesis cardiac laser therapy		111		1,714
Total products		46,420		48,401

Preservation services:
Cardiac tissue		10,033		8,930
Vascular tissue		9,976		10,174
Total preservation services		20,009		19,104

Total revenues	$	66,429	$	67,505