Navigation Links
Heska Announces Q3 2008 Results
Date:11/10/2008

Revenue and Gross Profit Increase

LOVELAND, Colo., Nov. 10 /PRNewswire-FirstCall/ -- Heska Corporation (Nasdaq: HSKA) today reported financial results for its third quarter ended September 30, 2008.

(Logo: http://www.newscom.com/cgi-bin/prnh/20000622/HESKALOGO)

Heska Corporation ("Heska" or the "Company") generated Core Companion Animal Health product revenue of $18.9 million, an increase of 21% from the prior year period.

"Revenue from Heska's blood chemistry instrument, the DRI-CHEM(R) Veterinary Chemistry Analyzer, and associated consumables, were a key factor in the strong revenue growth we posted this quarter," said Robert Grieve, Heska's Chairman and CEO. "Investors should note the accounting change in the way Heska is reporting income tax expense in 2008 as compared to 2007. This is the primary reason for the large increase in income tax expense. We have included pro forma information for additional clarity. Heska will continue to furnish pro forma information until the Company begins to report 2009 results with comparable income tax accounting treatment to 2008."

Total Revenue

Total revenue for the third quarter of 2008 was $21.7 million, an increase of 11% compared to the third quarter of 2007. Total revenue consists of product revenue and research, development and other revenue, both of which are discussed below.

Segment Product Revenue

Total product revenue for the third quarter of 2008 was $21.4 million, up 12% from $19.0 million in the third quarter of 2007. Heska Corporation's business is comprised of two reportable segments -- Core Companion Animal Health and Other Vaccines, Pharmaceuticals and Products. Product revenue from these segments is as follows:

Core Companion Animal Health This segment includes revenue from the Company's diagnostic instruments and supplies as well as single use, point-of-care tests, vaccines and pharmaceuticals, primarily for canine and feline use. In the third quarter of 2008, this segment generated product revenue of $18.9 million, up 21% as compared to $15.6 million in the third quarter of 2007.

Other Vaccines, Pharmaceuticals and Products This segment includes revenue from private label vaccine and pharmaceutical production, primarily for cattle but also for other animals including small mammals and fish. In the third quarter of 2008, this segment generated product revenue of $2.4 million, down 29% as compared to $3.4 million in the third quarter of 2007. Results for the nine months ended September 30, 2007 include approximately $1.6 million in revenue recognized in the first quarter upon receipt of a payment for product previously shipped and "take-or-pay" minimums for 2005 and 2006 which previously had not been paid as part of a now settled dispute with United Vaccines, Inc. ("United"), a former customer.

Research, Development and Other Revenue

Research, development and other revenue was $316 thousand in the third quarter of 2008, a decrease of approximately $175 thousand when compared to $491 thousand in the prior year period.

Investor Conference Call

Management will conduct a conference call on Monday, November 10, 2008 at 9:00 a.m. MST (11:00 a.m. EST) to discuss the third quarter 2008 financial results. To participate, dial (800) 240-2134 (domestic) or (303) 262-2125 (international); the conference call access number is 11121827. 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 November 24, 2008. The telephone replay may be accessed by dialing (800) 405-2236 (domestic) or (303) 590-3000 (international). The webcast replay may be accessed from Heska's home page at http://www.heska.com until November 24, 2008.

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 http://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 to predict future outcomes. Revenue generated in the past related to customers, technology or products may not recur in future periods. For example, in the nine months ended September 30, 2007, Heska recognized approximately $1.6 million in revenue upon receipt of a payment from United for product previously shipped and "take or pay" minimums for 2005 and 2006. As United has ceased operations, Heska does not expect to generate any future revenue from United. In addition, factors that could affect the business and financial results of Heska generally include the following: risks related to the ultimate commercial success of the Heska's recently launched chemistry instrument; risks related to Heska's ability to maintain financial covenants under its credit facility agreement, which is essential to fund the Company's ongoing operations; uncertainties related to Heska's ability to project future financial results; risks regarding Heska's reliance on third-party suppliers, which is substantial and could have significant negative consequences if Heska were to lose exclusive rights or access to a product due to a failure to meet minimum sales requirements or for other reasons; risks regarding Heska's ability to successfully market, sell and distribute its products; risks related to the loss of large or significant customers; competition, including uncertainties regarding the impact of new products competitors have recently launched or may launch in the future; uncertainties regarding Heska's reliance on third parties to whom Heska has granted substantial marketing rights to certain of Heska's existing products; uncertainties regarding potential changes in accounting standards, which could affect the manner in which Heska's financial statements are reported; uncertainties surrounding Heska's ability to maintain its listing on the Nasdaq Capital Market; 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 for the year ended December 31, 2007 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2008.

Financial Table Follows:

Consolidated Statements of Operations

In Thousands, Except per Share Amounts

(unaudited)

Three Months Nine Months

Ended Ended

September 30, September 30,

2007 2008 2007 2008

Revenue, net:

Product revenue, net:

Core companion animal health $15,601 $18,944 $48,828 $53,623

Other vaccines, pharmaceuticals

and products 3,399 2,426 12,262 11,581

Total product revenue, net 19,000 21,370 61,090 65,204

Research, development and other 491 316 1,203 1,015

Total revenue 19,491 21,686 62,293 66,219

Cost of revenue:

Cost of products sold 11,825 13,402 35,790 41,395

Cost of research, development

and other 58 88 234 321

Total cost of revenue 11,883 13,490 36,024 41,716

Gross profit 7,608 8,196 26,269 24,503

Operating expenses:

Selling and marketing 3,795 4,458 12,172 14,024

Research and development 663 506 2,109 1,462

General and administrative 2,017 2,134 7,042 6,756

(Gain) on sale of assets -- -- (47) --

Total operating expenses 6,475 7,098 21,276 22,242

Income from operations 1,133 1,098 4,993 2,261

Interest and other expense, net 94 153 433 500

Income before income taxes 1,039 945 4,560 1,761

Income tax expense:

Current 23 54 112 173

Net operating loss usage and

other deferred 4 314 9 571

Total income tax expense 27 368 121 744

Net income $1,012 $577 $4,439 $1,017

Basic net income per share $0.02 $0.01 $0.09 $0.02

Diluted net income per share $0.02 $0.01 $0.08 $0.02

Shares used for basic net income

per share 51,269 51,797 51,008 51,625

Shares used for diluted net

income per share 56,173 52,580 55,458 53,774

Balance Sheet Data

In Thousands (unaudited)

December 31, September 30,

2007 2008

Cash and cash equivalents $5,524 $5,434

Total current assets 35,127 32,716

Total assets 75,591 72,180

Line of credit 12,614 9,020

Current portion of long-term debt

and capital leases 776 1,344

Total current liabilities 25,195 22,279

Long-term debt and capital leases 1,151 --

Stockholders' equity 42,883 44,592

Pro Forma Financial Information Statement of Utility

The following estimated pro forma financial information is presented assuming Heska had reduced its valuation allowance related to its domestic net operating loss on December 31, 2006 rather than December 31, 2007. In this circumstance, the Company would have recognized Net Operating Loss Usage as Income Tax Expense, as outlined below. The Company believes the pro forma information may be valuable to investors as an additional tool to benchmark future periods versus historical results on a consistently reported basis. The Company does not suggest that investors should consider such pro forma financial information in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

Pro Forma Reconciliation to GAAP

Consolidated Statements of Operations

In Thousands, Except per Share Amounts

(unaudited)

Three Months Ended Nine Months Ended

September 30, 2007 September 30, 2007

As As

Reported Pro Reported Pro

(GAAP) Adjustments Forma (GAAP) Adjustments Forma

Revenue, net:

Product revenue,

net:

Core companion

animal health $15,601 $-- $15,601 $48,828 $-- $48,828

Other vaccines,

pharmaceuticals

and products 3,399 -- 3,399 12,262 -- 12,262

Total product

revenue, net 19,000 -- 19,000 61,090 -- 61,090

Research,

development

and other 491 -- 491 1,203 -- 1,203

Total

revenue 19,491 -- 19,491 62,293 -- 62,293

Cost of revenue:

Cost of products

sold 11,825 -- 11,825 35,790 -- 35,790

Cost of research,

development and

other 58 -- 58 234 -- 234

Total cost

of revenue 11,883 -- 11,883 36,024 -- 36,024

Gross profit 7,608 -- 7,608 26,269 -- 26,269

Operating expenses:

Selling and

marketing 3,795 -- 3,795 12,172 -- 12,172

Research and

development 663 -- 663 2,109 -- 2,109

General and

administrative 2,017 -- 2,017 7,042 -- 7,042

(Gain) on sale of

assets -- -- -- (47) -- (47)

Total

Operating

expenses 6,475 -- 6,475 21,276 -- 21,276

Income from operations 1,133 -- 1,133 4,993 -- 4,993

Interest and other

expense, net 94 -- 94 433 -- 433

Income before income

taxes 1,039 -- 1,039 4,560 -- 4,560

Income tax expense:

Current 23 -- 23 112 -- 112

Net operating

loss usage

and other

deferred 4 331 335 9 1,607 1,616

Total income

tax expense 27 331 358 121 1,607 1,728

Net income $1,012 $(331) $681 $4,439 $(1,607) $2,832

Basic net income per

share $0.02 $(0.01) $0.01 $0.09 $(0.03) $0.06

Diluted net income per

share $0.02 $(0.01) $0.01 $0.08 $(0.03) $0.05

Shares used for basic

net income per share 51,269 51,269 51,269 51,008 51,008 51,008

Shares used for diluted

net income per share 56,173 56,173 56,173 55,458 55,458 55,458


'/>"/>
SOURCE Heska Corporation
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Webcast Alert: Heska Announces Third Quarter 2008 Earnings Conference Call Webcast
2. Deloitte Names Heska Corporation to Colorado Technology Fast 50
3. Webcast Alert: Heska Announces First Quarter 2008 Earnings Conference Call Webcast
4. Webcast Alert: Heska Corporations Annual Meeting of Stockholders Webcast
5. Heska Announces Q4 and Annual 2007 Results
6. Webcast Alert: Heska Announces Fourth Quarter and Year-End 2007 Earnings Conference Call Webcast
7. Louise McCormick Joins Heskas Board of Directors
8. Heska Announces Amended Agreement With AgriLabs
9. Heska to Present at New York Society of Security Analysts Biotech/Specialty Pharma Conference
10. Heska to Present at the BioWest 2007 Mature Company Forum
11. Heska to Present at Friedland Investment Events Life Sciences Conference
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/24/2016)... ... , ... Marcy was in a crisis. Her son James, eight, was out of control. Prone ... physically. , “When something upset him, he couldn’t control his emotions,” remembers Marcy. “If ... at my other children and say he was going to kill them. If we ...
(Date:6/24/2016)... ... June 24, 2016 , ... Dr. Amanda Cheng, an ... Dr. Cheng has extensive experience with all areas of orthodontics, including robotic Suresmile ... orthodontics. , Micro-osteoperforation is a revolutionary adjunct to orthodontic treatment. It can ...
(Date:6/24/2016)... ... June 24, 2016 , ... People across the U.S. are sharpening ... Talker Award, an essay contest in which patients and their families pay tribute to ... at the 2016 National Society of Genetic Counselors (NSGC) Annual Education Conference (AEC) this ...
(Date:6/24/2016)... ... 24, 2016 , ... Puradigm® & Innovative Solutions today announced ... and processing operations at its production facility, and opened its first two dispensaries ... manufacturer of a complete system of proactive air and surface purification solutions for ...
(Date:6/24/2016)... ... , ... Venture Construction Group (VCG) sponsors Luke’s Wings ... the Woodmont Country Club at 1201 Rockville Pike, Rockville, Maryland, 20852. The event ... that have been wounded in battle and their families. Venture Construction Group is a ...
Breaking Medicine News(10 mins):
(Date:6/24/2016)... LEXINGTON, Mass. , June 24, 2016   ... specialty pharmaceutical company developing innovative inhaled drugs, announced today ... when Russell Investments reconstituted its comprehensive set ... 2016. "This is an important milestone for ... "It will increase shareholder awareness of our progress in ...
(Date:6/23/2016)... Research and Markets has announced the ... to 2022" report to their offering. ... patients with kidney failure, it replaces the function of kidneys ... blood and thus the treatment helps to keep the patient ... Increasing number of ESRD patients & substantial ...
(Date:6/23/2016)... Roche (SIX: RO, ROG; OTCQX: RHHBY) announced ... BRAHMS PCT (procalcitonin) assay as a dedicated testing solution ... this clearance, Roche is the first IVD company in ... sepsis risk assessment and management. PCT is ... levels in blood can aid clinicians in assessing the ...
Breaking Medicine Technology: