Heska Announces Q4 and Annual 2010 Results

Company Reports Profitable Quarter and Year

Mar 09, 2011, 09:00 ET from Heska Corporation

LOVELAND, Colo., March 9, 2011 /PRNewswire/ -- Heska Corporation (Nasdaq: HSKA, "Heska" or the "Company") today reported financial results for its fourth quarter and the year ended December 31, 2010.

(Logo:  http://photos.prnewswire.com/prnh/20000622/HESKALOGO)

"I want to congratulate our employees for producing another profitable year.  Heska has now generated net income in five of the past six years.  For the quarter, our results met or exceeded our stated guidance in all areas," said Robert Grieve, Heska's Chairman and CEO.  "Throughout 2010, we have faced a difficult year-over-year comparison in our Core Companion Animal Health segment as we are no longer selling an old line of handheld blood analysis instruments and affiliated consumables.  This product area accounted for over $10 million in 2009 revenue.  The fourth quarter of 2010 was the last quarter in which we expect to face this issue."

Investor Conference Call

Management will conduct a conference call on Wednesday, March 9, 2011 at 9:00 a.m. MST (11:00 a.m. EST) to discuss the fourth quarter and year-end 2010 financial results.  To participate, dial (877) 941-6009 (domestic) or (480) 629-9770 (international); the conference call access number is 4407244.  The conference call will also be broadcast live over the Internet at http://www.heska.com.  To listen, simply log on to the web at this address at least ten minutes prior to the start of the call to register, download and install any necessary audio software.  Telephone replays of the conference call will be available for playback until March 23, 2011.  The telephone replay may be accessed by dialing (800) 406-7325 (domestic) or (303) 590-3030 (international).  The webcast replay may be accessed from Heska's home page at www.heska.com until March 23, 2011.

About Heska

Heska Corporation (NASDAQ: HSKA) sells advanced veterinary diagnostic and other specialty veterinary products.  Heska's state-of-the-art offerings to its customers include diagnostic instruments and supplies as well as single use, point-of-care tests, pharmaceuticals and vaccines.  The company's core focus is on the canine and feline markets where it strives to provide high value products and unparalleled customer support to veterinarians.  For further information on Heska and its products, visit the company's website at www.heska.com.

Forward-Looking Statements

This announcement contains forward-looking statements regarding Heska's future financial and operating results. These statements are based on current expectations and are subject to a number of risks and uncertainties. Investors should note that there is an inherent risk in using past results, including trends, to predict future outcomes.  In addition, factors that could affect the business and financial results of Heska generally include the following: risks regarding Heska's reliance on third-party suppliers and the potential loss of products supplied by one or more third parties, which could have a significant adverse impact on Heska's financial position; uncertainties regarding Heska's reliance on third parties to whom Heska has granted substantial marketing rights to certain of Heska's existing products and whom may be large Heska customers, including Schering-Plough Animal Health Corporation which has exclusive rights to our heartworm preventive in the United States and which it has been announced is to be combined with Merial Limited; uncertainties regarding Heska's ability to successfully market and sell its products in an economically sustainable manner; uncertainties regarding Heska's ability to generate profits and positive cash flow in future periods; competition, including uncertainties regarding the impact of new products competitors have recently launched or may launch in the future; and the risks set forth in Heska's filings and future filings with the Securities and Exchange Commission, including those set forth in Heska's Annual Report on Form 10-K/A for the year ended December 31, 2009 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2010.

Financial Table Follows:

Consolidated Statements of Operations

In Thousands, Except per Share Amounts

(unaudited)

Three Months Ended

December 31,

Twelve Months Ended December 31,

2009

2010

2009

2010

Revenue, net:

Core companion animal health

$

14,541

$

11,988

$

66,449

$

55,655

Other vaccines, pharmaceuticals and products

2,817

3,027

9,229

9,796

Total revenue, net

17,358

15,015

75,678

65,451

Cost of revenue

10,723

8,868

47,219

40,659

Gross profit

6,635

6,147

28,459

24,792

Operating expenses:

Selling and marketing

3,449

3,122

14,524

14,726

Research and development

410

297

1,718

1,597

General and administrative

1,918

2,040

8,173

8,111

Total operating expenses

5,777

5,459

24,415

24,434

Operating income

858

688

4,044

358

Interest and other expense, net

113

112

306

289

Income before income taxes

745

576

3,738

69

Income tax expense

285

304

1,496

51

Net income  

$

460

$

272

$

2,242

$

18

Basic net income per share

$

0.09

$

0.05

$

0.43

$

0.00

Diluted net income per share

$

0.09

$

0.05

$

0.43

$

0.00

Shares used for basic net income per share

5,216

5,224

5,207

5,220

Shares used for diluted net income per share

5,224

5,232

5,212

5,254

Balance Sheet Data

In Thousands (unaudited)

December 31,

2009

December 31,

2010

Cash and cash equivalents

$

5,400

$

5,492

Total current assets

28,493

27,279

Total assets

64,134

63,048

Line of credit

4,201

3,079

Long-term debt (all current)

381

-

Total current liabilities

14,107

12,660

Stockholders' equity

45,055

45,798

SOURCE Heska Corporation



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