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Heska Announces Q4 and Annual 2007 Results
Date:2/26/2008

d by the prospects for our diagnostic instruments, where we launched three major new products in 2007."

Total Revenue

Total revenue for the fourth quarter of 2007 was $20.0 million, a decrease of 2% compared to the fourth quarter of 2006. 2007 total revenue was $82.3 million, up 10% compared to $75.1 million in 2006. 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 fourth quarter of 2007 was $19.7 million, up 7% from $18.5 million in the fourth quarter of 2006. For the year ended December 31, 2007, total product revenue was $80.8 million, up 13% from $71.8 million in 2006. 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 fourth quarter of 2007, this segment generated product revenue of $17.1 million, up 11% as compared to $15.4 million in the fourth quarter of 2006. For the year ended December 31, 2007, this segment generated product revenue of $65.9 million, up 10% from $59.9 million in 2006.

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 fourth quarter of 2007, this segment generated product revenue of $2.6 million, down 15% as compared to $3.1 million in the fourth quarter of 2006. In 2007, this segment generated product revenue of $14.9 million up 25% from $11.9 million in 2006. Results for the year ended December 31, 2007 include approximately $1
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