Segment Information

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment Information

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 aortic stent grafts, On-X, surgical sealants, and other product revenues. Aortic stent grafts include aortic arch stent grafts, abdominal stent grafts, and synthetic vascular grafts. Aortic arch stent grafts include our E-vita Open NEO, E-vita Open Plus, AMDS, NEXUS, and E-vita Thoracic 3G. Abdominal stent grafts include our E-xtra Design Engineering, E-nside, E-tegra, E-ventus BX, and E-liac products. Surgical sealants include BioGlue Surgical Adhesive 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 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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Revenues:
Medical devices	$	66,003	$	58,936	$	128,294	$	116,478
Preservation services	23,248		21,404		44,186		41,075
Total revenues	89,251		80,340		172,480		157,553
Cost of products and preservation services:
Medical devices	20,977		18,230		40,510		35,638
Preservation services	10,190		9,938		20,159		19,024
Total cost of products and preservation services	31,167		28,168		60,669		54,662
Gross margin:
Medical devices	45,026		40,706		87,784		80,840
Preservation services	13,058		11,466		24,027		22,051
Total gross margin	$	58,084	$	52,172	$	111,811	$	102,891

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Products:
Aortic stent grafts	$	28,359	$	23,833	$	54,509	$	49,339
On-X	17,946		16,255		35,602		30,626
Surgical sealants	16,566		15,967		33,269		31,648
Other	3,132		2,881		4,914		4,865
Total products	66,003		58,936		128,294		116,478
Preservation services	23,248		21,404		44,186		41,075
Total revenues	$	89,251	$	80,340	$	172,480	$	157,553