Segment Information

6 Months Ended

Jun. 30, 2011

Segment Information

Segment Information

16. Segment Information

     The Company has two reportable segments organized according to its services and products: Preservation Services and Medical Devices. The Preservation Services segment includes external services revenues from the preservation of cardiac and vascular tissues. The Medical Devices segment includes external revenues from product sales of BioGlue^® Surgical Adhesive ("BioGlue"), BioFoam^® Surgical Matrix ("BioFoam"), PerClot, HemoStase, and revascularization technology, as well as sales of other medical devices. 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 preservation services and products. 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 services and products, and gross margins for the Company's operating segments (in thousands):

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2011		2010		2011		2010
Revenues:
Preservation services	$	14,688	$	15,005	$	30,362	$	30,588
Medical devices		14,580		14,146		29,009		28,101
Other a		111		112		204		291
Total revenues		29,379		29,263		59,575		58,980
Cost of preservation services and products:
Preservation services		8,164		9,013		17,360		18,411
Medical devices		2,162		2,481		4,658		5,008
Total cost of preservation services and products		10,326		11,494		22,018		23,419
Gross margin:
Preservation services		6,524		5,992		13,002		12,177
Medical devices		12,418		11,665		24,351		23,093
Other a		111		112		204		291
Total gross margin	$	19,053	$	17,769	$	37,557	$	35,561

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

		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2011			2010			2011			2010
Preservation services:
Cardiac tissue	$	6,691	$		6,861		$	13,225	$		13,764
Vascular tissue		7,997			8,144			17,137			16,824
Total preservation services		14,688			15,005			30,362			30,588
Products:
BioGlue and BioFoam		12,772			12,261			24,746			24,173
PerClot		631		-	-			1,291		-	-
HemoStase	-	-			1,893			1,795			3,998
Revascularization technology		1,177		-	-			1,177		-	-
Other medical devices	-	-			(8	)	-	-			(70	)
Total products		14,580			14,146			29,009			28,101
Other a		111			112			204			291
Total revenues	$	29,379	$		29,263		$	59,575	$		58,980

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a For the three and six months ended June 30, 2011 and 2010, the "Other" designation includes grant revenue.