SEGMENT REPORTING

9 Months Ended

Sep. 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
Nine Months Ended September 30, 2011:
Total  revenue	$	44,727	$	9,833	$	54,560
Operating income		1,379		1,456		2,835
Interest expense		107		17		124
Total assets		52,528		10,494		63,022
Net assets		40,743		7,190		47,933
Capital expenditures		218		404		622
Depreciation and amortization		985		643		1,628
Nine Months Ended September 30, 2012:
Total  revenue	$	45,811	$	8,541	$	54,352
Operating income		883		555		1,438
Interest expense		68		20		88
Total assets		51,194		11,784		62,978
Net assets		39,286		9,085		48,371
Capital expenditures		429		476		905
Depreciation and amortization		622		649		1,271

	Core Companion Animal Health			Other Vaccines, Pharmaceuticals and Products	Total
Three Months Ended September 30, 2011:
Total  revenue	$	14,263	$	3,345	$	17,608
Operating income		174		234		408
Interest expense		68		1		69
Total assets		52,528		10,494		63,022
Net assets		40,743		7,190		47,933
Capital expenditures		52		125		177
Depreciation and amortization		292		218		510
Three Months Ended September 30, 2012:
Total  revenue	$	13,530	$	3,376	$	16,906
Operating income (loss)		(126)		99		(27)
Interest expense		21		8		29
Total assets		51,194		11,784		62,978
Net assets		39,286		9,085		48,371
Capital expenditures		194		169		363
Depreciation and amortization		213		197		410