SEGMENT REPORTING

3 Months Ended

Mar. 31, 2013

Notes to Financial Statements

SEGMENT REPORTING

5. 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. The CCA segment also includes digital radiography and ultrasound products along with embedded software and support, data hosting and other services from Heska Imaging after February 24, 2013. 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
Three Months Ended March 31, 2012:
Total  revenue	$	16,580		$	2,595	$	19,175
Operating income		545			537		1,082
Interest expense		24			6		30
Total assets		52,777			11,167		63,944
Net assets		41,044			7,894		48,938
Capital expenditures		182			89		271
Depreciation and amortization		189			224		413
Three Months Ended March 31, 2013:
Total  revenue	$	15,649		$	3,330	$	18,979
Operating income		(1,093	)		411		(682	)
Interest expense		51			6		57
Total assets		78,285			11,279		89,564
Net assets		41,034			7,023		48,057
Capital expenditures		309			8		317
Depreciation and amortization		279			195		474