Segment Information

6 Months Ended

Jun. 30, 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				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Revenues:
Medical devices	$	30,045	$	19,918	$	57,063	$	39,309
Preservation services		17,038		15,608		33,036		30,048
Total revenues		47,083		35,526		90,099		69,357
Cost of products and preservation services:
Medical devices		7,698		4,244		14,701		9,277
Preservation services		9,084		9,728		17,476		18,859
Total cost of products and preservation services		16,782		13,972		32,177		28,136
Gross margin:
Medical devices		22,347		15,674		42,362		30,032
Preservation services		7,954		5,880		15,560		11,189
Total gross margin	$	30,301	$	21,554	$	57,922	$	41,221

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Products:
BioGlue and BioFoam	$	16,187	$	14,519	$	31,503	$	28,561
On-X		9,554		--		16,269		--
CardioGenesis cardiac laser therapy		1,860		1,943		3,844		4,080
PerClot		1,042		1,036		2,033		2,012
PhotoFix		490		343		871		515
HeRO Graft		912		1,744		2,325		3,604
ProCol		--		333		218		537
Total products		30,045		19,918		57,063		39,309
Preservation services:
Cardiac tissue		7,548		6,889		13,976		13,552
Vascular tissue		9,490		8,719		19,060		16,496
Total preservation services		17,038		15,608		33,036		30,048
Total revenues	$	47,083	$	35,526	$	90,099	$	69,357