Segments (Tables)

9 Months Ended

Sep. 30, 2012

Segments [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

For the three months and nine months ended September 30, 2012 and 2011, the contributions of our segments to net revenues and income from operations, and the reconciliation to total net income, were as follows (amounts in thousands):

	Three Months Ended September 30,									Three Months Ended September 30,
	2012									2011
	Acute Care			Non-Acute Care (1)			Total			Acute Care			Total
Net revenues from external customers	$	64,394		$	19,937		$	84,331		$	64,439		$	64,439
Cost of revenues	26,920			11,324			38,244			29,991			29,991
Gross profit	$	37,474		$	8,613		$	46,087		$	34,448		$	34,448
Gross margin %	58.2		%	43.2		%	54.7		%	53.5		%	53.5		%
Operating expenses	29,070			5,791			34,861			29,654			29,654
Income from operations	$	8,404		$	2,822		$	11,226		$	4,794		$	4,794
Operating margin %	13.1		%	14.2		%	13.3		%	7.4		%	7.4		%
Interest and other income (expense), net							34						(191		)
Income before provision for income taxes							11,260						4,603
Provision for income taxes							4,340						1,609
Net income							$	6,920					$	2,994

	Nine Months Ended September 30,									Nine Months Ended September 30,
	2012									2011
	Acute Care			Non-Acute Care (1)			Total			Acute Care			Total
Net revenues from external customers	$	191,294		$	32,564		$	223,858		$	182,604		$	182,604
Cost of revenues	82,858			19,788			102,646			82,699			82,699
Gross profit	$	108,436		$	12,776		$	121,212		$	99,905		$	99,905
Gross margin %	56.7		%	39.2		%	54.1		%	54.7		%	54.7		%
Operating expenses	94,167			9,753			103,920			89,852			89,852
Income from operations	$	14,269		$	3,023		$	17,292		$	10,053		$	10,053
Operating margin %	7.5		%	9.3		%	7.7		%	5.5		%	5.5		%
Interest and other income (expense), net							57						(66		)
Income before provision for income taxes							17,349						9,987
Provision for income taxes							6,703						3,736
Net income							$	10,646					$	6,251
(1) Non-Acute Care segment includes MTS results from May 21, 2012, the date of acquisition.

For the nine months ended September 30, 2012, the Non-Acute Care cost of revenues included $1.7 million of acquisition-related charges primarily associated with the step-up to the estimated fair value of inventory acquired from MTS and consumed in the normal manufacturing cycle of our business. The Non-Acute Care operating expenses included $0.9 million of acquisition-related charges primarily associated with severance expenses. For the nine months ended September 30, 2012, the Acute Care operating expenses included $2.3 million of acquisition-related charges for transaction costs, required to be expensed under ASC 805 Business Combinations. As of September 30, 2012, we have not assigned assets to our operating segments.