Segment Information

3 Months Ended

Mar. 31, 2013

Segment Information [Abstract]

Segment Information

16.  Segment Information

The Company has two reportable segments organized according to its products and services: Medical Devices and Preservation Services.  The Medical Devices segment includes external revenues from product sales of BioGlue^® Surgical Adhesive (“BioGlue”), BioFoam^® Surgical Matrix (“BioFoam”), PerClot, revascularization technologies, and HeRO Graft.  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 the Company’s management, is segment gross margin, or net external revenues less cost of products and preservation services.  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 products and services, and gross margins for the Company’s operating segments (in thousands): 

	Three Months Ended
	March 31,
	2013		2012
Revenues:
Medical devices	$	19,796	$	16,454
Preservation services		15,677		15,659
Othera		63		188
Total revenues		35,536		32,301
Cost of products and preservation services:
Medical devices		3,465		2,513
Preservation services		8,795		8,496
Total cost of products and preservation services		12,260		11,009
Gross margin:
Medical devices		16,331		13,941
Preservation services		6,882		7,163
Othera		63		188
Total gross margin	$	23,276	$	21,292

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

	Three Months Ended
	March 31,
	2013		2012
Products:
BioGlue and BioFoam	$	15,464	$	13,696
PerClot		864		644
Revascularization technologies		2,191		2,114
HeRO Graft		1,277		--
Total products		19,796		16,454
Preservation services:
Cardiac tissue		6,645		7,080
Vascular tissue		9,032		8,579
Total preservation services		15,677		15,659
Othera		63		188
Total revenues	$	35,536	$	32,301

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^aFor the three months endedMarch 31, 2013 and 2012 the “Other” designation includes grant revenue.