8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  August 15, 2005

HESKA CORPORATION

(Exact name of Registrant as specified in its charter)

Delaware	000-22427	77-0192527
(State or other jurisdiction of	(Commission File Number)	(I.R.S. Employer
incorporation)		Identification Number)

3760 Rocky Mountain Avenue
Loveland, Colorado 80538

(Address, including zip code, of principal executive offices)

Registrant’s telephone number, including area code:  (970) 493-7272

Former name or former address, if changed since last report:  Not Applicable

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

[  ]  Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02       Results of Operations and Financial Condition.

         The information in this Current Report is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

         On August 15, 2005, Heska Corporation announced its financial results for the quarter ended June 30, 2005 and certain other information. A copy of the press release announcing these financial results and certain other information is attached hereto as Exhibit 99.1.

Item 9.01       Financial Statements and Exhibits.

         (c)     Exhibits.

                   The following exhibit is furnished with this report on Form 8-K:

                   99.1     Press Release dated August 15, 2005.

         Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

HESKA CORPORATION
a Delaware corporation

Dated:           August 15, 2005
By:  /s/Jason A. Napolitano     
JASON A. NAPOLITANO
Executive Vice President and Chief Financial Officer

EXHIBIT INDEX

      Exhibit Number                                                                    Description                                                                              

              99.1                                            Press Release dated August 15, 2005

EX-99.1

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

At Heska Corporation:
Jason Napolitano, Executive Vice President & CFO
    (970) 493-7272, Ext. 4105

 

Heska Announces Q2 Results

2nd Quarter Net Loss Decreased 45% Over Prior Year

LOVELAND, CO, August 15, 2005 - Heska Corporation (NASDAQ:HSKA) today reported financial results for its second quarter ended June 30, 2005.

Heska Corporation (“Heska” or the “Company”) highlights since its second quarter began in April were:

— Amended bank agreement to include new equipment notes and extend maturity date to June 30, 2009

— Completed headquarters relocation to a new facility at Centerra in Loveland, Colorado

— 200th U.S. patent issued

“We continue to pursue operating efficiencies, and were able to reduce our operating expenses this quarter by approximately $1.2 million as compared to the second quarter of 2004,” said Robert Grieve, Heska’s Chairman and CEO. “Despite our lower operating expenses, second quarter 2005 Core Companion Animal Health product revenue exceeded its level in the second quarter of 2004.”

Segment Product Revenue
Total product revenue for the second quarter of 2005 was $16.2 million, down 7% from $17.4 million in the second quarter of 2004. 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 and monitoring instruments and supplies as well as single use, point-of-care tests, vaccines and pharmaceuticals, primarily for canine and feline use. In the second quarter of 2005, this segment generated product revenue of $13.3 million, which was up slightly as compared to product revenue in the second quarter of 2004.

Other Vaccines, Pharmaceuticals and Products    This segment includes revenue from private label vaccine and pharmaceutical production, primarily for cattle but also for other species including small mammals, horses and fish. In the second quarter of 2005, this segment generated product revenue of $2.8 million, down 31% as compared to $4.1 million in the second quarter of 2004.

Investor Conference Call
Management will conduct a conference call on Monday, August 15, 2005 at 9:00 a.m. MDT (11:00 a.m. EDT) to discuss the second quarter 2005 financial results. To participate, dial (800)218-0204 (domestic) or (303)262-2138 (international); the conference call access number is 11035775. 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 August 29, 2005. 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 www.heska.com until August 29, 2005.

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 and monitoring instruments and supplies as well as single use, point-of-care tests, vaccines and pharmaceuticals. The company’s core focus is on the canine and feline markets where it strives to provide high value products for unmet needs in veterinary medicine. 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. In addition, factors that could affect the business and financial results of Heska generally include the following: uncertainties regarding our ability to raise additional capital or borrow additional cash to fund future operations as needed; uncertainties regarding the impact of revenue fluctuations or shortfalls versus our expectations on our cash flow and liquidity as many of our expenses are fixed; uncertainties regarding our ability to achieve profitability; uncertainties regarding our ability to comply with financial covenants required under our revolving line of credit agreement; inability to market, sell and distribute products successfully; uncertainties regarding the scope, enforceability and validity of patents and proprietary rights, which are subject to interpretation by administrative agencies and courts; uncertainties regarding our ability to successfully develop or commercialize products in research and development and/or supported by our patents; competition; risks regarding our reliance on third parties who we have granted substantial marketing rights to certain of our existing products; risks regarding our reliance on third-party suppliers, which is substantial; 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, 2004 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2005.

Financial Table Follows (Certain prior year numbers have been reclassified to be consistent with the current year presentation.):
 
 
 
 

Consolidated Statements of Operations
In Thousands, Except per Share Amounts
(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2004			2005			2004			2005
Revenue, net:
Product revenue, net:
Core companion animal health	$	13,308		$	13,324		$	27,422		$	26,180
Other vaccines, pharmaceuticals and              products		4,123			2,847			6,428			6,827
Total product revenue, net		17,431			16,171			33,850			33,007
Research, development and other		365			394			687			712
Total revenue		17,796			16,565			34,537			33,719
Cost of Revenue:
Cost of products sold		11,515			10,752			21,976			21,809
Cost of research, development and other		94			288			229			467
Total cost of revenue		11,609			11,040			22,205			22,276
Gross Profit		6,187			5,525			12,332			11,443
Operating expenses:
Selling and marketing		3,792			3,428			8,240			7,227
Research and development		1,571			950			3,284			2,177
General and administrative		2,029			1,854			4,070			3,849
Total operating expenses		7,392			6,232			15,594			13,253
Loss from operations		(1,205	)		(707	)		(3,262	)		(1,810	)
Interest and other expense, net		183			60			120			265
Net loss	$	(1,388	)	$	(767	)	$	(3,382	)	$	(2,075	)
Basic and diluted net loss per share	$	(0.03	)	$	(0.02	)	$	(0.07	)	$	(0.04	)
Shares used to compute basic and diluted net   loss per share		48,996			49,521			48,950			49,448

Balance Sheet Data
In Thousands
(unaudited)

	December 31,		June 30,
	2004		2005
Cash and cash equivalents	$	4,982	$	4,637
Total current assets		28,442		24,787
Total assets		38,724		35,247
Line of credit		10,375		9,872
Current portion of long-term debt and capital leases		302		1,586
Total current liabilities		23,269		24,070
Long-term debt and capital leases		1,466		23
Stockholders’ equity		2,579		538
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