SEGMENT REPORTING

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE I - SEGMENT REPORTING

We are a medical device company serving the surgical product and cancer treatment 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” used primarily in the minimally invasive treatment of localized prostate cancer.  Our brachytherapy product line includes our palladium-103 TheraSeed® device and our iodine-125 based devices.

Capital expenditures associated with our new ERP system were reported in our brachytherapy segment previously.  We have changed the manner in which these costs are reported to reflect the segment that received the benefit of these amounts.  This change had no effect on the consolidated amounts previously reported in 2011.

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Revenues
Surgical products	$	15,922		$	15,470		$	31,416		$	29,862
Brachytherapy seed		6,315			6,278			12,635			12,231
Intersegment eliminations		(281	)		(212	)		(512	)		(304	)
	$	21,956		$	21,536		$	43,539		$	41,789
Earnings from operations
Surgical products	$	588		$	498		$	787		$	307
Brachytherapy seed		747			1,517			2,127			2,595
Intersegment eliminations		(20	)		(12	)		(23	)		(13	)
	$	1,315		$	2,003		$	2,891		$	2,889
Capital expenditures, excluding asset acquisition
Surgical products	$	411		$	503		$	683		$	1,127
Brachytherapy seed		242			105			299			177
	$	653		$	608		$	982		$	1,304
Depreciation and amortization
Surgical products	$	1,214		$	1,233		$	2,443		$	2,434
Brachytherapy seed		923			579			1,677			1,158
	$	2,137		$	1,812		$	4,120		$	3,592

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 for surgical products segment sales transactions.  Corporate expenses are allocated based upon the relative revenue for each segment.

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

	June 30, 2012			December 31, 2011
Identifiable assets
Surgical products	$	72,646		$	72,475
Brachytherapy seed		69,522			60,791
Corporate investment in subsidiaries		111,439			111,439
Intersegment eliminations		(133,643	)		(128,887	)
	$	119,964		$	115,818
Intangible assets
Surgical products	$	8,015		$	9,404
Brachytherapy seed		8,259			55
	$	16,274		$	9,459

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Product sales
United States	$	17,876	$	18,645	$	36,824	$	35,851
Europe		2,285		2,009		3,794		4,184
Other foreign countries		1,152		314		1,674		671
		21,313		20,968		42,292		40,706
License and fee income
United States		258		222		505		419
Canada		385		346		742		664
		643		568		1,247		1,083
	$	21,956	$	21,536	$	43,539	$	41,789

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.  Less than 10% of all foreign product sales are related to the brachytherapy segment.  All of our long-lived assets are located within the United States.