SEGMENT REPORTING

6 Months Ended

Jun. 30, 2013

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 manufactures, custom loads, markets, and distributes “seeds” used primarily in the minimally invasive treatment of localized prostate cancer. Our brachytherapy product line includes our palladium-103 based TheraSeed® device and our iodine-125 based AgX100® device.

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Revenues
Surgical products	$	14,680		$	15,922		$	29,163		$	31,416
Brachytherapy seed		5,975			6,315			11,694			12,635
Intersegment eliminations		(356	)		(281	)		(685	)		(512	)
	$	20,299		$	21,956		$	40,172		$	43,539
Earnings (loss) from operations
Surgical products	$	(31	)	$	588		$	(366	)	$	787
Brachytherapy seed		874			747			1,273			2,127
Transaction expenses		(716	)		—			(716	)		—
Intersegment eliminations		4			(20	)		(43	)		(23	)
	$	131		$	1,315		$	148		$	2,891
Capital expenditures, excluding asset acquisition
Surgical products	$	821		$	411		$	1,233		$	683
Brachytherapy seed		132			242			247			299
	$	953		$	653		$	1,480		$	982
Depreciation and amortization
Surgical products	$	1,207		$	1,214		$	2,443		$	2,443
Brachytherapy seed		767			923			1,535			1,677
	$	1,974		$	2,137		$	3,978		$	4,120

We evaluate business segment performance based on segment revenue and segment earnings (loss) from operations. Transaction expenses incurred in connection with the Agreement and Plan of Merger (the “Merger Agreement”) executed with Juniper Acquisition Corporation (“Juniper”) on August 2, 2013 are not allocated to earnings (loss) from operations by segment. See Note L. In addition, earnings (loss) 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 before transaction expenses are allocated based upon the relative revenue for each segment.

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

	June 30, 2013			December 31, 2012
Identifiable assets
Surgical products	$	70,284		$	70,361
Brachytherapy seed		62,243			62,474
Corporate investment in subsidiaries		111,439			111,439
Intersegment eliminations		(137,193	)		(138,549	)
	$	106,773		$	105,725
Intangible assets
Surgical products	$	5,272		$	6,644
Brachytherapy seed		3,958			4,376
	$	9,230		$	11,020

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Product sales
United States	$	16,626	$	17,876	$	32,638	$	36,824
Europe		1,956		2,285		4,159		3,794
Other foreign countries		1,043		1,152		2,040		1,674
		19,625		21,313		38,837		42,292
License and fee income
United States		276		258		544		505
Canada		398		385		791		742
		674		643		1,335		1,247
	$	20,299	$	21,956	$	40,172	$	43,539

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.