SEGMENT REPORTING

9 Months Ended

Sep. 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 AgX100TM device.

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 September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Revenues
Surgical products	$	14,246		$	15,280		$	45,662		$	45,142
Brachytherapy seed		5,841			6,053			18,476			18,284
Intersegment eliminations		(171	)		(271	)		(683	)		(575	)
	$	19,916		$	21,062		$	63,455		$	62,851
Earnings from operations
Surgical products	$	243		$	780		$	1,030		$	1,087
Brachytherapy seed		906			1,243			3,033			3,838
Intersegment eliminations		11			15			(12	)		2
	$	1,160		$	2,038		$	4,051		$	4,927
Capital expenditures, excluding asset acquisition
Surgical products	$	341		$	319		$	1,024		$	1,446
Brachytherapy seed		61			60			360			237
	$	402		$	379		$	1,384		$	1,683
Depreciation and amortization
Surgical products	$	1,232		$	973		$	3,675		$	3,407
Brachytherapy seed		541			839			2,218			1,997
	$	1,773		$	1,812		$	5,893		$	5,404

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):

	September 30, 2012			December 31, 2011
Identifiable assets
Surgical products	$	72,400		$	72,475
Brachytherapy seed		58,877			60,791
Corporate investment in subsidiaries		111,439			111,439
Intersegment eliminations		(136,818	)		(128,887	)
	$	105,898		$	115,818
Intangible assets
Surgical products	$	7,329		$	9,404
Brachytherapy seed		4,553			55
	$	11,882		$	9,459

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Product sales
United States	$	16,545	$	17,928	$	53,369	$	53,779
Europe		2,073		1,894		5,867		6,078
Other foreign countries		668		678		2,342		1,349
		19,286		20,500		61,578		61,206
License and fee income
United States		277		225		782		644
Canada		353		337		1,095		1,001
		630		562		1,877		1,645
	$	19,916	$	21,062	$	63,455	$	62,851

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.  Substantially all of our long-lived assets are located within the United States.