Segment Information

3 Months Ended

Mar. 31, 2016

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; BioFoam® Surgical Matrix; On-X products, since the acquisition of On-X; CardioGenesis cardiac laser therapy; PerClot; PhotoFix; HeRO Graft; and ProCol, through the date of the ProCol Sale.  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,
	2016		2015
Revenues:
Medical devices	$	27,018	$	19,391
Preservation services		15,998		14,440
Total revenues		43,016		33,831
Cost of products and preservation services:
Medical devices		7,003		5,033
Preservation services		8,392		9,131
Total cost of products and preservation services		15,395		14,164
Gross margin:
Medical devices		20,015		14,358
Preservation services		7,606		5,309
Total gross margin	$	27,621	$	19,667

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

	Three Months Ended
	March 31,
	2016		2015
Products:
BioGlue and BioFoam	$	15,316	$	14,042
On-X		6,715		--
CardioGenesis cardiac laser therapy		1,984		2,137
PerClot		991		976
PhotoFix		381		172
HeRO Graft		1,413		1,860
ProCol		218		204
Total products		27,018		19,391
Preservation services:
Cardiac tissue		6,428		6,663
Vascular tissue		9,570		7,777
Total preservation services		15,998		14,440
Total revenues	$	43,016	$	33,831