form8k.htm

FOR IMMEDIATE RELEASE

At Heska Corporation:

Jason Napolitano, Executive Vice President & CFO

(970) 493-7272, Ext. 4105

Heska Announces Q310 Results

Company Reports Profitable Quarter

LOVELAND, CO, November 15, 2010 -- Heska Corporation (NASDAQ: HSKA, "Heska" or the "Company") today reported financial results for its third quarter ended September 30, 2010.

"These results exceed our revenue expectations and most recent revenue guidance. We had a particularly strong quarter in our Other Vaccines, Pharmaceuticals and Products segment where the USDA validated an improved process for our line of cattle vaccines, allowing us to ship a significant quantity of product in a category which had previously been on hold due to regulatory discussions," said Robert Grieve, Heska's Chairman and CEO. "As we have reported over the the course of 2010, we faced a difficult year-over-year comparison in our Core Companion Animal Health segment as we are no longer selling the old line of handheld blood analysis instruments and affiliated consumables. This product area accounted for over $2.7 million in revenue in the third quarter of 2009, with no such rev enue in the third quarter of 2010."

Investor Conference Call

Management will conduct a conference call on Monday, November 15, 2010 at 9:00 a.m. MST (11:00 a.m. EST) to discuss the third quarter 2010 financial results. To participate, dial (800) 762-8779 (domestic) or (480) 629-9771 (international); the conference call access number is 4371990. 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 29, 2010. 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 November 29, 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. For example, while Heska generated positive net income this quarter, there can be no assurance Heska will generate positive net income, or avoid a loss, in any future period. In addition, factors that could affect the business and financial results of Heska generally include the following: uncertainties related to Heska's ability to maintain regulatory compliance for products it sells; risks related to competition and Heska's ability to com pete economically in the marketplace; 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 Heska's ability to maintain its listing on the NASDAQ Capital Market; uncertainties related to Heska's ability to market and sell its products successfully and economically; uncertainties related to Heska's ability to generate cash flow in any future periods; risks related to Heska's reliance on third-party suppliers, which is significant, including Heska's ability to meet its commitments to such suppliers; risks related to Heska's reliance on its revolving line of credit and Heska's ability to meet financial and other covenants to maintain access to such line of credit; 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 Ma y 4, 2010; 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 Quarterly Report on Form 10-Q for the quarter ended June 30, 2010.

Financial Table Follows:

Consolidated Statements of Operations

In Thousands, Except per Share Amounts

(unaudited)

	Three Months Ended September 30,							Nine Months Ended September 30,
	2009			2010				2009		2010
Revenue, net:
Core companion animal health	$	16,892			$	14,144		$	51,908		$	43,667
Other vaccines, pharmaceuticals and products		2,658				3,491			6,412			6,769
Total revenue, net		19,550				17,635			58,320			50,436

Cost of revenue		12,130				11,042			36,496			31,791

Gross profit		7,420				6,593			21,824			18,645

Operating expenses:
Selling and marketing		3,695				3,912			11,075			11,604
Research and development		457				455			1,308			1,300
General and administrative		2,109				1,861			6,255			6,071
Total operating expenses		6,261				6,228			18,638			18,975
Operating income (loss)		1,159				365			3,186			(330	)
Interest and other (income) expense, net		(13	)			(118	)		193			177
Income (loss) before income taxes		1,172				483			2,993			(507	)
Income tax expense (benefit)		429				242			1,211			(253	)
Net income (loss)	$	743			$	241		$	1,782		$	(254	)

Basic net income (loss) per share	$	0.01			$	0.00		$	0.03		$	(0.00	)
Diluted net income (loss) per share	$	0.01			$	0.00		$	0.03		$	(0.00	)

Shares used for basic net income (loss) per share		52,123				52,237			52,049			52,188

Shares used for diluted net income (loss) per share		52,192				52,376			52,060			52,188

Balance Sheet Data

In Thousands (unaudited)

	December 31, 2009		September 30, 2010
Cash and cash equivalents	$	5,400	$	5,745
Total current assets		28,493		28,358
Total assets		64,134		64,433
Line of credit		4,201		4,989
Current portion of long-term debt		381		—
Total current liabilities		14,107		14,366
Stockholders' equity		45,055		45,277

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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

	November 15, 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 November 15, 2010

	HESKA CORPORATION a Delaware corporation

Dated: November 15, 2010	By: /s/ Jason A. Napolitano Jason A. Napolitano Executive Vice President, Chief Financial Officer and Secretary