form8k.htm

FOR IMMEDIATE RELEASE

At Heska Corporation:

Jason Napolitano, Executive Vice President & CFO

(970) 493-7272, Ext. 4105

Heska Announces Q1 2010 Results

Company Reports Net Cash Position for 2nd Consecutive Quarter

LOVELAND, CO, May 6, 2010 -- Heska Corporation (NASDAQ: HSKA, “Heska” or the “Company”) today reported financial results for its first quarter ended March 31, 2010.

“We knew we would face a difficult comparison this quarter as we had exclusive rights to our former handheld blood analysis instrument in the first quarter of 2009 and sold the last of our remaining inventory in this area in the first quarter of 2010. Sales of consumables in this area declined by $2.7 million on a year-over-year basis as a result. Total revenue from other Core Companion Animal Health products was up year-over-year,” said Robert Grieve, Heska’s Chairman and CEO. “We also recognized a reserve of $1.0 million due to unexpected production issues in our OVP segment. We have been focused on resolving the current issue and preventing future problems.”

Investor Conference Call

Management will conduct a conference call on Thursday, May 6, 2010 at 9:00 a.m. MDT (11:00 a.m. EDT) to discuss the first quarter 2010 financial results. To participate, dial (877) 941-6012 (domestic) or (480) 248-5085 (international); the conference call access number is 4293959. 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 May 20, 2010. The telephone replay may be accessed by dialing (800) 406-7325 (domestic) or (303) 590-3030 (international). The webcast replay may be access ed from Heska’s home page at www.heska.com until May 20 2010.

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: uncertainties related to the performance of third parties to whom Heska has granted substantial marketing rights including, but not limited to, Schering-Plough Animal Health Corporation; risks related to the product under review in Heska’s Other Vaccines, Pharmaceuticals and Products segment, or OVP, for potential destruc tion and replacement and the ultimate economic impact of these activities; uncertainties related to the future success of Heska’s efforts to prevent the production of non-compliant products in its OVP segment; uncertainties related to Heska’s ability to market and sell its products successfully and economically; risks related to Heska’s reliance on third-party suppliers, which is significant; competition; risks related to Heska’s ability to maintain its listing on the NASDAQ Capital Market; uncertainties related to Heska’s ability to maintain all regulatory compliance required to continue to manufacture and sell vaccines and pharmaceuticals; uncertainties related to the impact of transfer restrictions on Heska’s stock, which were approved by Heska stockholders at Heska’s Annual Meeting of Stockholders on May 4, 2010; and the risks set forth in Heska’s filings and future filings with the Securities and Exchange Commission, including tho se set forth in Heska’s Annual Report on Form 10-K/A for the year ended December 31, 2009.

Financial Table Follows:

Consolidated Statements of Operations

In Thousands, Except per Share Amounts

(unaudited)

	Three Months Ended March 31,
	2009		2010
Revenue, net:
Core companion animal health	$	18,137		$	15,792
Other vaccines, pharmaceuticals and products		2,004			1,902
Total revenue, net		20,141			17,694

Cost of revenue		12,768			11,489

Gross profit		7,373			6,205

Operating expenses:
Selling and marketing		3,758			4,036
Research and development		446			457
General and administrative		2,152			2,200
Total operating expenses		6,356			6,693
Operating income (loss)		1,017			(488	)
Interest and other expense, net		165			173
Income (loss) before income taxes		852			(661	)
Income tax expense (benefit)		392			(330	)
Net income (loss)	$	460		$	(331	)

Basic net income (loss) per share	$	0.01		$	(0.01	)
Diluted net income (loss) per share	$	0.01		$	(0.01	)

Shares used for basic net income (loss) per share		52,011			52,161

Shares used for diluted net income (loss) per share		52,011			52,161

Balance Sheet Data

In Thousands (unaudited)

	December 31, 2009		March 31, 2010
Cash and cash equivalents	$	5,400	$	5,328
Total current assets		28,493		28,340
Total assets		64,134		64,311
Line of credit		4,201		3,793
Current portion of long-term debt		381		189
Total current liabilities		14,107		14,815
Stockholders’ equity		45,055		44,736

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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

	May 6, 2010 Date of Report (Date of earliest event reported)


	HESKA CORPORATION (Exact name of Registrant as specified in its charter)

Delaware		000-22427	77-0192527
(State or other jurisdiction of incorporation)		(Commission File Number)	(I.R.S. Employer Identification No.)

	3760 Rocky Mountain Avenue Loveland, Colorado 80538 (Address of principal executive offices, including zip code)

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

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

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))

Exhibit Number	Description
99.1	Press Release dated May 6, 2010

	HESKA CORPORATION a Delaware corporation

Dated: May 6, 2010	By: /s/ Jason A. Napolitano Jason A. Napolitano Executive Vice President, Chief Financial Officer and Secretary