Segment Information

3 Months Ended

Mar. 31, 2018

14. Segment Information

We have two reportable segments organized according to our products and services: Medical Devices and Preservation Services. The Medical Devices segment includes external revenues from product sales of BioGlue; BioFoam® Surgical Matrix; JOTEC products, since the acquisition of JOTEC; On-X products; CardioGenesis cardiac laser therapy; PerClot; and PhotoFix. The Preservation Services segment includes external services revenues from the preservation of cardiac and vascular tissues. There are no intersegment revenues.

The primary measure of segment performance, as viewed by our management, is segment gross margin, or net external revenues less cost of products and preservation services. We do not segregate assets by segment; therefore, asset information is excluded from the segment disclosures below.

The following table summarizes revenues, cost of products and preservation services, and gross margins for our operating segments (in thousands):


	Three Months Ended
	March 31,
	2018		2017
Revenues:
Medical devices	$	43,598	$	27,396
Preservation services		18,350		17,663
Total revenues		61,948		45,059

Cost of products and preservation services:
Medical devices		14,157		8,017
Preservation services		8,563		7,530
Total cost of products and preservation services		22,720		15,547

Gross margin:
Medical devices		29,441		19,379
Preservation services		9,787		10,133
Total gross margin	$	39,228	$	29,512

The following table summarizes net revenues by product and service (in thousands):


	Three Months Ended
	March 31,
	2018		2017
Products:
BioGlue and BioFoam	$	15,970	$	15,681
JOTEC		14,460		--
On-X		10,309		8,860
CardioGenesis cardiac laser therapy		1,346		1,585
PerClot		972		819
PhotoFix		541		451
Total products		43,598		27,396

Preservation services:
Cardiac tissue		8,103		7,502
Vascular tissue		10,247		10,161
Total preservation services		18,350		17,663

Total revenues	$	61,948	$	45,059