Segment Information

6 Months Ended

Jun. 30, 2024

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, AMDSTM, NEXUS®, NEXUS DUOTM, E-vita Thoracic 3G, and ArtivexTM. Abdominal stent grafts include our E-xtra Design Engineering, E-nsideTM, E-tegraTM, E-ventusTM BX, and E-liacTM 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,
	2024		2023		2024		2023
Revenues:
Medical devices	$	73,210	$	66,003	$	144,324	$	128,294
Preservation services	24,809		23,248		51,126		44,186
Total revenues	98,019		89,251		195,450		172,480
Cost of products and preservation services:
Medical devices	24,545		20,977		48,295		40,510
Preservation services	10,150		10,190		20,885		20,159
Total cost of products and preservation services	34,695		31,167		69,180		60,669
Gross margin:
Medical devices	48,665		45,026		96,029		87,784
Preservation services	14,659		13,058		30,241		24,027
Total gross margin	$	63,324	$	58,084	$	126,270	$	111,811

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Products:
Aortic stent grafts	$	32,190	$	28,359	$	64,293	$	54,509
On-X	20,645		17,946		40,326		35,602
Surgical sealants	18,545		16,566		35,526		33,269
Other	1,830		3,132		4,179		4,914
Total products	73,210		66,003		144,324		128,294
Preservation services	24,809		23,248		51,126		44,186
Total revenues	$	98,019	$	89,251	$	195,450	$	172,480