SEGMENT REPORTING

6 Months Ended

Jun. 30, 2012

Notes to Financial Statements

SEGMENT REPORTING

4. SEGMENT REPORTING

The Company is comprised of two reportable segments, Core Companion Animal Health ("CCA") and Other Vaccines, Pharmaceuticals and Products ("OVP"). The CCA segment includes diagnostic instruments and supplies, as well as single use diagnostic and other tests, pharmaceuticals and vaccines, primarily for canine and feline use. These products are sold directly by the Company as well as through other distribution relationships. CCA segment products manufactured at the Des Moines, Iowa production facility included in our OVP segment's assets are transferred at cost and are not recorded as revenue for our OVP segment. The OVP segment includes private label vaccine and pharmaceutical production, primarily for cattle, but also for other animals including small mammals and fish. All OVP products are sold by third parties under third-party labels.

Summarized financial information concerning the Company's reportable segments is shown in the following table (in thousands):

	Core Companion Animal Health			Other Vaccines, Pharmaceuticals and Products	Total
Six Months Ended June 30, 2011:
Total  revenue	$	30,464	$	6,488	$	36,952
Operating income		1,205		1,222		2,427
Interest expense		39		16		55
Total assets		51,947		9,876		61,823
Net assets		40,576		7,160		47,736
Capital expenditures		166		279		445
Depreciation and amortization		693		425		1,118
Six Months Ended June 30, 2012:
Total  revenue	$	32,301	$	5,165	$	37,466
Operating income		1,009		456		1,465
Interest expense		47		12		59
Total assets		52,041		11,145		63,186
Net assets		40,167		8,597		48,764
Capital expenditures		235		307		542
Depreciation and amortization		409		452		861

	Core Companion Animal Health			Other Vaccines, Pharmaceuticals and Products		Total
Three Months Ended June 30, 2011:
Total   revenue	$	14,023	$	3,424		$	17,447
Operating income		266		621			887
Interest expense		18		4			22
Total assets		51,947		9,876			61,823
Net assets		40,576		7,160			47,736
Capital expenditures		109		239			348
Depreciation and amortization		296		214			510
Three Months Ended June 30, 2012:
Total   revenue	$	15,701	$	2,570		$	18,271
Operating income (loss)		464		(81	)		383
Interest expense		23		6			29
Total assets		52,041		11,145			63,186
Net assets		40,167		8,597			48,764
Capital expenditures		53		218			271
Depreciation and amortization		220		228			448