SEGMENT REPORTING

6 Months Ended

Jun. 30, 2011

SEGMENT REPORTING

NOTE I - SEGMENT REPORTING

We are a medical device company serving the cancer treatment and surgical markets, operating in two business segments. Our surgical products business consists of wound closure, vascular access, and specialty needle products. Our brachytherapy seed business produces, markets, and distributes “seeds” primarily in the minimally invasive treatment of localized prostate cancer.  Our brachytherapy product line includes  our palladium-103 TheraSeed® device and the iodine-125 based devices, I-Seed and OncoSeed™, all of which we used primarily in the minimally invasive treatment of localized prostate cancer and services.

The following tables provide certain information for these segments (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Revenues
Surgical products	$	15,470		$	14,895		$	29,862		$	29,465
Brachytherapy seed		6,278			5,988			12,231			11,880
Intersegment eliminations		(212	)		(106	)		(304	)		(250	)
	$	21,536		$	20,777		$	41,789		$	41,095
Earnings (loss) from operations
Surgical products	$	498		$	388		$	307		$	(2	)
Brachytherapy seed		1,517			1,059			2,595			2,119
Intersegment eliminations		(12	)		1			(13	)		(12	)
	$	2,003		$	1,448		$	2,889		$	2,105
Capital expenditures
Surgical products	$	140		$	3,730		$	275		$	5,832
Brachytherapy seed		468			526			1,029			1,212
	$	608		$	4,256		$	1,304		$	7,044
Depreciation and amortization
Surgical products	$	1,233		$	1,201		$	2,434		$	2,443
Brachytherapy seed		579			636			1,158			1,180
	$	1,812		$	1,837		$	3,592		$	3,623

We evaluate business segment performance based on segment revenue and segment earnings from operations.Earnings from operations by segment do not include interest expense, interest income, other income and expense, or provisions for income taxes.  Intersegment eliminations are primarily for surgical products segment sales transactions.  Corporate expenses are allocated based upon the relative revenue for each segment.

Supplemental information related to significant assets and liabilities follows (in thousands):

	June 30, 2011			December 31, 2010
Identifiable assets
Surgical products	$	70,000		$	69,994
Brachytherapy seed		62,540			65,649
Corporate investment in subsidiaries		111,439			111,439
Intersegment eliminations		(127,838	)		(131,895	)
	$	116,141		$	115,187
Intangible assets
Surgical products	$	10,801		$	12,198
Brachytherapy seed		88			121
	$	10,889		$	12,319

Information regarding revenue by geographic regions follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Product sales
United States	$	18,645	$	18,289	$	35,851	$	36,142
Europe		2,009		1,806		4,184		3,596
Other foreign countries		314		333		671		662
		20,968		20,428		40,706		40,400
License and fee income
United States		222		127		419		267
Canada		346		222		664		428
		568		349		1,083		695
	$	21,536	$	20,777	$	41,789	$	41,095

Foreign sales are attributed to countries based on the location of the customer. Thelicense fees attributed to Canada are with Nordion, a Canadian based company, for the license of our TheraSphere® product.  Substantially all foreign product sales are related to the surgical products segment.  All of our long-lived assets are located within the United States.