Segment Information

6 Months Ended

Jun. 30, 2018

14. 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 BioGlue; BioFoam® Surgical Matrix; JOTEC products, since the JOTEC Acquisition; On-X products; CardioGenesis cardiac laser therapy; PerClot; and PhotoFix. 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				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Revenues:
Medical devices	$	49,313	$	30,094	$	92,911	$	57,490
Preservation services		19,183		17,724		37,533		35,387
Total revenues		68,496		47,818		130,444		92,877

Cost of products and preservation services:
Medical devices		13,550		6,959		27,707		14,976
Preservation services		9,095		7,954		17,658		15,484
Total cost of products and preservation services		22,645		14,913		45,365		30,460

Gross margin:
Medical devices		35,763		23,135		65,204		42,514
Preservation services		10,088		9,770		19,875		19,903
Total gross margin	$	45,851	$	32,905	$	85,079	$	62,417

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


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Products:
BioGlue and BioFoam	$	17,069	$	16,683	$	33,039	$	32,364
JOTEC		17,205		--		31,665		--
On-X		11,888		9,862		22,197		18,722
CardioGenesis cardiac laser therapy		1,578		2,056		2,924		3,641
PerClot		968		936		1,940		1,755
PhotoFix		605		557		1,146		1,008
Total products		49,313		30,094		92,911		57,490

Preservation services:
Cardiac tissue		9,055		8,477		17,158		15,979
Vascular tissue		10,128		9,247		20,375		19,408
Total preservation services		19,183		17,724		37,533		35,387

Total revenues	$	68,496	$	47,818	$	130,444	$	92,877