10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended February 29, 2012.

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number 0-17988

Neogen Corporation

(Exact name of registrant as specified in its charter)

Michigan	38-2367843
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification Number)

620 Lesher Place

Lansing, Michigan 48912

(Address of principal executive offices, including zip code)

(517) 372-9200

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file reports), and (2) has been subject to such filing requirements for the past 90 days.    YES   x     NO   ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes   x     No   ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer (see definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act):

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller Reporting Company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):

YES   ¨     NO   x

As of March 1, 2012, there were 23,553,508 shares of Common Stock outstanding.

NEOGEN CORPORATION AND SUBSIDIARIES

TABLE OF CONTENTS

		Page No.
PART I. FINANCIAL INFORMATION
Item 1.	Interim Consolidated Financial Statements (unaudited)		2
	Consolidated Balance Sheets – February 29, 2012 and May 31, 2011		2
	Consolidated Statements of Income – Three and nine months ended February 29, 2012 and February 28, 2011		3
	Consolidated Statement of Equity – Nine months ended February 29, 2012		4
	Consolidated Statements of Cash Flows – Nine months ended February 29, 2012 and February 28, 2011		5
	Notes to Interim Consolidated Financial Statements – February 29, 2012		6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		11
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		15
Item 4.	Controls and Procedures		15
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings		16
Item 1A.	Risk Factors		16
Item 6.	Exhibits		16
Signatures			17
CEO Certification
CFO Certification
Section 906 Certification

1

PART I – FINANCIAL INFORMATION

Item 1. Interim Consolidated Financial Statements

NEOGEN CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	February 29,			May 31,
	2012			2011
	(In thousands, except share and per share amounts)
	(Unaudited)			(Audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	42,698		$	35,844
Marketable securities		18,637			20,239
Accounts receivable, less allowance of $800 and $800		34,332			28,634
Inventories		36,313			31,994
Deferred income taxes		1,044			1,044
Prepaid expenses and other current assets		3,170			4,747
TOTAL CURRENT ASSETS		136,194			122,502
NET PROPERTY AND EQUIPMENT		29,502			22,340
OTHER ASSETS
Goodwill		51,704			51,584
Other non-amortizable intangible assets		5,166			5,166
Customer based intangibles, net of accumulated amortization of $6,689 and $5,431		10,748			12,006
Other non-current assets, net of accumulated amortization of $3,385 and $2,789		7,033			6,064
		74,651			74,820
TOTAL ASSETS	$	240,347		$	219,662
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable	$	7,708		$	8,516
Accrued compensation		2,698			2,715
Income taxes		2,604			0
Other accruals		4,426			6,566
TOTAL CURRENT LIABILITIES		17,436			17,797
DEFERRED INCOME TAXES		8,347			8,347
OTHER LONG-TERM LIABILITIES		4,580			4,540
		12,927			12,887
TOTAL LIABILITIES		30,363			30,684
EQUITY
Preferred stock, $1.00 par value, 100,000 shares authorized, none issued and outstanding		0			0
Common stock, $.16 par value, 60,000,000 shares authorized, 23,553,508 and 23,290,604 shares issued and outstanding at February 29, 2012 and May 31, 2011, respectively		3,768			3,727
Additional paid-in capital		86,107			81,248
Accumulated other comprehensive loss		(773	)		(394	)
Retained earnings		120,580			104,064
Total Neogen Corporation Stockholders’ Equity		209,682			188,645
Noncontrolling interest		302			333
TOTAL EQUITY		209,984			188,978
TOTAL LIABILITIES AND EQUITY	$	240,347		$	219,662

See notes to interim consolidated financial statements

2

NEOGEN CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

	Three Months Ended February 29/28,					Nine Months Ended February 29/28,
	2012		2011			2012		2011
	(In thousands, except per share amounts)
Net sales	$	44,912	$	42,235		$	135,501	$	129,088
Cost of goods sold		22,020		21,647			66,975		63,245
GROSS MARGIN		22,892		20,588			68,526		65,843
OPERATING EXPENSES
Sales and marketing		8,929		7,044			25,662		22,060
General and administrative		4,660		3,677			12,846		11,253
Research and development		1,754		1,802			4,976		5,240
		15,343		12,523			43,484		38,553
OPERATING INCOME		7,549		8,065			25,042		27,290
OTHER INCOME (EXPENSE)
Interest income		30		13			78		70
Change in purchase consideration		180		(218	)		180		(618	)
Other income (expense)		385		(17	)		285		(164	)
		595		(222	)		543		(712	)
INCOME BEFORE INCOME TAXES		8,144		7,843			25,585		26,578
INCOME TAXES		2,900		2,900			9,100		9,700
NET INCOME		5,244		4,943		$	16,485	$	16,878
NET INCOME PER SHARE
Basic	$	0.22	$	0.21		$	0.70	$	0.74
Diluted	$	0.22	$	0.21		$	0.69	$	0.71

See notes to interim consolidated financial statements

3

NEOGEN CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF EQUITY (UNAUDITED)

	Common Stock				Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)			Retained Earnings		Noncontrolling Interest			Total
	Shares		Amount
	(In thousands)
Balance, June 1, 2011		23,291	$	3,727	$	81,248	$	(394	)	$	104,064	$	333		$	188,978
Issuance of shares of common stock under equity compensation plans, and share based compensation, including $1,432 of excess income tax benefit		249		39		4,377										4,416
Issuance of shares under employee stock purchase plan		14		2		482										484
Comprehensive income:
Net income (loss) for the nine months ended February 29, 2012											16,516		(31	)		16,485
Foreign currency translation adjustments								(379	)							(379	)
Total comprehensive income ($18,030 in the nine months ended February 28, 2011)																16,106
Balance, February 29, 2012		23,554	$	3,768	$	86,107	$	(773	)	$	120,580	$	302		$	209,984

See notes to interim consolidated financial statements

4

NEOGEN CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Nine Months Ended
	February 29/28,
	2012			2011
	(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	16,485		$	16,878
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		4,489			3,941
Share based compensation		1,757			1,824
Excess income tax benefit from the exercise of stock options		(1,432	)		(461	)
Changes in operating assets and liabilities, net of business acquisitions:
Accounts receivable		(5,695	)		(1,460	)
Inventories		(4,363	)		383
Prepaid expenses and other current assets		1,564			331
Accounts payable, accruals and other		430			2,525
NET CASH PROVIDED BY OPERATING ACTIVITIES		13,235			23,961
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment and other assets		(10,820	)		(5,353	)
Proceeds from the sale of marketable securities		55,883			27,253
Purchases of marketable securities		(54,281	)		(44,695	)
Payments for business acquisitions		(813	)		0
NET CASH USED IN INVESTING ACTIVITIES		(10,031	)		(22,795	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in other long-term liabilities		(750	)		301
Net proceeds from issuance of common stock		3,024			5,451
Excess income tax benefit from the exercise of stock options		1,432			461
NET CASH PROVIDED BY FINANCING ACTIVITIES		3,706			6,213
EFFECT OF EXCHANGE RATE ON CASH		(56	)		0
INCREASE IN CASH		6,854			7,379
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		35,844			22,806
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	42,698		$	30,185

See notes to interim consolidated financial statements

5

NEOGEN CORPORATION AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (generally accepted accounting principles) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for the nine month period ended February 29, 2012 are not necessarily indicative of the results to be expected for the fiscal year ending May 31, 2012. For more complete financial information, these consolidated financial statements should be read in conjunction with the May 31, 2011 audited consolidated financial statements and the notes thereto included in the Company’s annual report on Form 10-K for the year ended May 31, 2011.

2. INVENTORIES

Inventories are stated at the lower of cost, determined on the first-in, first-out method, or market. The components of inventories follow:

	February 29, 2012		May 31, 2011
	(In thousands)
Raw materials	$	14,161	$	12,125
Work-in-process		2,650		2,192
Finished and purchased goods		19,502		17,677
	$	36,313	$	31,994

3. NET INCOME PER SHARE

The calculation of net income per share follows:

	Three Months Ended February 29/28,				Nine Months Ended February 29/28,
	2012		2011		2012		2011
Numerator for basic and diluted net income per share:
Net income	$	5,244	$	4,943	$	16,485	$	16,878
Denominator:
Denominator for basic net income per share:
Weighted average shares		23,541		23,149		23,428		22,923
Effect of dilutive stock options and warrants		447		785		571		797
Denominator for diluted net income per share		23,988		23,934		23,999		23,720
Net income per share:
Basic	$	0.22	$	0.21	$	0.70	$	0.74
Diluted	$	0.22	$	0.21	$	0.69	$	0.71

6

4. SEGMENT INFORMATION

The Company has two reportable segments: Food Safety and Animal Safety. The Food Safety segment produces and markets diagnostic test kits and related products used by food producers and processors to detect harmful natural toxins, foodborne bacteria, allergens and levels of general sanitation. The Animal Safety segment is primarily engaged in the production and marketing of products dedicated to animal health, including a complete line of consumable products marketed to veterinarians and animal health product distributors; the segment also provides genetic identification services. Additionally, Animal Safety produces and markets rodenticides and disinfectants to assist in control of rodents and disease in and around agricultural, food production and other facilities.

Segment information for the three months ended February 29/28, 2012 and 2011 follows:

	Food Safety		Animal Safety		Corporate and Eliminations (1)			Total
			(In thousands)
Fiscal 2012
Net sales to external customers	$	21,923	$	22,989	$	0		$	44,912
Operating income (reduction)		5,119		3,174		(744	)		7,549
Total assets		83,053		103,262		54,032			240,347
Fiscal 2011
Net sales to external customers	$	20,634	$	21,601	$	0		$	42,235
Operating income (reduction)		5,516		3,063		(514	)		8,065
Total assets		77,179		89,771		42,207			209,157

Segment information for the nine months ended February 29/28, 2012 and 2011 follows:

	Food Safety		Animal Safety		Corporate and Eliminations (1)			Total
			(In thousands)
Fiscal 2012
Net sales to external customers	$	67,247	$	68,254	$	0		$	135,501
Operating income (reduction)		17,961		8,851		(1,770	)		25,042
Fiscal 2011
Net sales to external customers	$	64,226	$	64,862	$	0		$	129,088
Operating income (reduction)		18,753		9,949		(1,412	)		27,290

(1) Includes corporate assets, consisting principally of cash and cash equivalents, marketable securities, deferred assets and overhead expenses not allocated to specific business segments. Also includes the elimination of intersegment transactions.

7

5. EQUITY COMPENSATION PLANS

Options are generally granted under the employee and director stock option plan for 5 year periods and become exercisable in equal annual installments during that period. Certain non-qualified options are granted for 10 year periods. A summary of stock option activity during the nine months ended February 29, 2012 follows:

	Shares			Weighted-Average Exercise Price
Options outstanding at June 1, 2011		1,574,000		$	17.77
Granted		316,000			34.59
Exercised		(249,000	)		11.86
Forfeited		(28,000	)		15.30
Options outstanding at February 29, 2012		1,613,000			22.03

During the three and nine month periods ended February 29, 2012 and February 28, 2011, the Company recorded $685,000 and $584,000 and $1,757,000 and $1,824,000, respectively, of compensation expense related to its share-based awards.

The weighted-average fair value of stock options granted during FY-2012 and 2011, estimated on the date of grant using the Black-Scholes option pricing model was $10.42 and $8.60 respectively, per option. The fair value of stock options granted was estimated using the following weighted-average assumptions.

	FY-12			FY-11
Risk-free interest rate		1.2	%		1.7	%
Expected dividend yield		0	%		0	%
Expected stock price volatility		36.4	%		35.8	%
Expected option life		4.0 years			4.0 years

The Company has an Employee Stock Purchase plan that provides for employee stock purchases at a 5% discount to market price. The discount is expensed as of the date of purchase.

6. NEW ACCOUNTING PRONOUNCEMENTS

In June 2011, the FASB issued an accounting standards update titled Presentation of Comprehensive Income. This update eliminates the current option to report other comprehensive income and its components in the statement of changes in equity. An entity can elect to present items of net income and other comprehensive income in one continuous statement or in two separate consecutive statements. Each component of net income and each component of other comprehensive income, together with totals for comprehensive income and its two parts, net income and other comprehensive income, must be displayed under either alternative. The new disclosure requirements are effective for fiscal years beginning after December 15, 2011.

In September 2011, the FASB issued an accounting standards update titled Intangibles — Goodwill and Other: Testing Goodwill for Impairment. This update gives the option of performing a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount and, in some cases, skip the two-step impairment test. This standard is effective for fiscal years beginning after December 15, 2011, and early adoption is permitted.

The above ASU’s issued by the FASB, upon adoption, are not expected by management to have a material effect on the Company’s consolidated financial statements.

8

7. BUSINESS AND PRODUCT LINE ACQUISITIONS

On April 1, 2010, Neogen Corporation acquired GeneSeek, Inc. of Lincoln, Nebraska, a leading commercial agricultural genetic laboratory. GeneSeek’s technology employs high-resolution DNA genotyping for identity and trait analysis in a variety of important animal and agricultural plant species. Consideration for the purchase was $14,050,000 in cash and secondary payment obligations of up to $7,000,000. The allocation of the purchase price included accounts receivable of $1,923,000, inventory of $1,512,000, fixed assets of $847,000, current liabilities of $905,000, deferred tax liabilities of $2,530,000, secondary payment liabilities of $3,583,000, and the remainder to goodwill (not deductible for tax purposes) and other intangible assets (with estimated lives of 5-20 years). The allocation was generally based on the fair value of these assets determined using the income approach. These fair value measurements were based on significant inputs not observable in the market and thus represent Level 3 fair value measurements. The secondary payment was based upon future operating results of the GeneSeek business through 2013, and payable annually over a three year period, measured at fair value, and is considered a Level 3 fair value measurement. As of May 31, 2011, the balance of the secondary payment liability recorded was approximately $4,370,000. A payment of $1,856,000 was made in June, 2011 to the former owners of GeneSeek, comprised of $1,537,000 for the first year contingent payment and an additional $319,000 for inventory purchased post acquisition and settlement of other liabilities. During the three and nine months ended February 29, 2012 and February 28, 2011 the Company recorded approximately $180,000 and $130,000 and ($218,000) and ($618,000), respectively, within other income (expense), representing the change in fair market value of the secondary payment liability. As of February 29, 2012 the balance of secondary payment liability was approximately $2,653,000. The acquisition has been integrated into the Animal Safety segment.

On June 21, 2011, Neogen Corporation acquired the assets of VeroMara seafood testing laboratory for approximately $813,000 in cash and a potential secondary payment of approximately $200,000, from its parent company, GlycoMar Ltd. The potential secondary payment was based on VeroMara being awarded a contract in FY 12, which did not occur. VeroMara offers testing services to the shellfish and salmon aquaculture industries. VeroMara’s services include testing for shellfish toxins, general foodborne pathogens, including E. coli, noroviruses, and salmon husbandry. VeroMara recorded revenues of approximately $800,000 (U.S.) in its most recently completed fiscal year. The purchase accounting for this transaction will be completed in fiscal year 2012. The acquisition is expected to provide a strong synergistic fit for the Company’s Food Safety segment.

8. LONG TERM DEBT

The Company has a financing agreement in place with a bank (no amounts drawn at February 29, 2012 or May 31, 2011) which, through the first quarter of fiscal 2011, provided for an unsecured revolving line of credit of $10,000,000. Effective August 31, 2011, the Company extended the agreement by one year through November 30, 2013 and increased the total available credit to $12,000,000. The incremental credit is to provide for flexibility for potential foreign currency hedging strategies. The interest rate is at LIBOR plus 100 basis points (rate under the terms of the agreement was 1.24% at February 29, 2012). Financial covenants include maintaining specified levels of tangible net worth, debt service coverage, and funded debt to EBITDA, each of which the Company was in compliance with at February 29, 2012.

9. COMMITMENTS AND CONTINGENCIES

The Company is involved in environmental remediation and monitoring activities at its Randolph, Wisconsin manufacturing facility and accrues for related costs when such costs are determined to be probable and estimable. The Company is currently expensing annual costs of remediation, which have ranged from $50,000 to $105,000 per year over the past five years. The Company’s estimated liability for these costs of $916,000 at February 29, 2012 and May 31, 2011, measured on an undiscounted basis over an estimated period of 15 years, is recorded within other long term liabilities in the consolidated balance sheet.

The Company is subject to certain legal and other proceedings in the normal course of business that, in the opinion of management, should not have a material effect on its future results of operations or financial position.

9

10. STOCK PURCHASE

In December 2008, the Company’s Board of Directors authorized a program to purchase, subject to market conditions, up to 750,000 shares of the Company’s common stock. As of February 29, 2012, 74,684 cumulative shares had been purchased in negotiated and open market transactions for a total price, including commissions, of approximately $923,000. Shares purchased under the program were retired. There have been no purchases in fiscal year 2012 and there were none in 2011.

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PART I – FINANCIAL INFORMATION

Item 2. Management’s Discussion and Analysis of Financial Conditions and Results of Operations

The information in this Management’s Discussion and Analysis of Financial Condition and Results of Operations contains both historical financial information and forward-looking statements. Neogen does not provide forecasts of future performance. While management is optimistic about the Company’s long-term prospects, historical financial information may not be indicative of future financial performance.

Safe Harbor and Forward-Looking Statements

Forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, are made throughout this Quarterly Report on Form 10-Q. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward looking statements. Without limiting the foregoing, the words “believes,” “anticipates,” “plans,” “expects,” “seeks,” “estimates,” and similar expressions are intended to identify forward-looking statements. There are a number of important factors, including competition, recruitment and dependence on key employees, impact of weather on agriculture and food production, identification and integration of acquisitions, research and development risks, patent and trade secret protection, government regulation and other risks detailed from time to time in the Company’s reports on file at the Securities and Exchange Commission, that could cause Neogen Corporation’s results to differ materially from those indicated by such forward-looking statements, including those detailed in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

In addition, any forward-looking statements represent management’s views only as of the day this Quarterly Report on Form 10-Q was first filed with the Securities and Exchange Commission and should not be relied upon as representing management’s views as of any subsequent date. While management may elect to update forward-looking statements at some point in the future, it specifically disclaims any obligation to do so, even if its views change.

Critical Accounting Policies and Estimates

The discussion and analysis of the Company's financial condition and results of operations are based on the consolidated financial statements that have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires that management make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, management evaluates the estimates, including those related to receivable allowances, inventories, accruals and intangible assets. These estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

There have been no material changes to the critical accounting policies and estimates disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2011.

Results of Operations

Executive Overview

Neogen Corporation revenues increased by 6.3% in the third quarter to $44.9 million and by 5.0% to $135.5 million for the nine-month period ended February 29, 2012, compared to the prior year. Food Safety revenues increased by 6.2% and 4.7% in the quarter and the nine-month period ended February 29, 2012, respectively. Animal Safety revenues increased by 6.4% and 5.2% in the quarter and in the nine-month period ended February 29, 2012, respectively. Exclusive of the revenues from the VeroMara acquisition, which was made in June 2011, Food Safety revenue increases were 5.7% and 4.2% in the third quarter and year-to-date periods, respectively. Gross margins increased from 48.7% in the February 2011 quarter to 51.0% in the February 2012 quarter and decreased from 51.0% to 50.6% on a year-to-date basis. The change in margin percentage for the quarter was the result of a favorable shift in product mix and manufacturing efficiencies resulting from the increased product volume. Operating margins decreased in the comparative quarter and nine-month periods from 19.1% to 16.8% and from 21.1% to 18.5%, respectively. The decreases were primarily the result of investments in sales and customer support personnel and infrastructure, part of a long-term strategy that management believes should result in revenue gains and efficiencies in the future. International revenues were 40.7% of total revenues for the quarter and 40.7% for the nine month period ended February 29, 2012.

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Revenues

Three and nine months ended February 29, 2012 compared to three and nine months ended February 28, 2011:

	Three Months Ended February 29/28,
	2012		2011		Increase / (Decrease)			%
	(In thousands except percents)
Food Safety
Natural Toxins, Allergens & Drug Residues	$	10,568	$	9,945	$	623			6.3
Bacteria & General Sanitation		5,868		5,871		(3	)		—
Dehydrated Culture Media & Other		5,487		4,818		669			13.9
	$	21,923	$	20,634		1,289			6.2
Animal Safety
Life Science & Other		2,018		1,909		109			5.7
Vaccines		646		441		205			46.7
Rodenticides & Disinfectants		6,436		7,185		(749	)		(10.4	)
Veterinary Instruments & Other		9,072		7,034		2,038			29.0
DNA Testing		4,817		5,032		(215	)		(4.3	)
		22,989		21,601		1,388			6.4
Total Revenues	$	44,912	$	42,235	$	2,677			6.3
	Nine Months Ended February 29/28,
	2012		2011		Increase / (Decrease)			%
	(In thousands except percents)
Food Safety
Natural Toxins, Allergens & Drug Residues	$	34,031	$	32,615	$	1,416			4.3
Bacteria & General Sanitation		18,142		16,614		1,528			9.2
Dehydrated Culture Media & Other		15,074		14,997		77			0.5
	$	67,247	$	64,226		3,021			4.7
Animal Safety
Life Science & Other		6,089		5,862		227			3.9
Vaccines		1,985		1,769		216			12.3
Rodenticides & Disinfectants		20,166		20,747		(581	)		(2.8	)
Veterinary Instruments & Other		27,499		22,103		5,396			24.4
DNA Testing		12,515		14,381		(1,866	)		(13.0	)
		68,254		64,862		3,392			5.2
Total Revenues	$	135,501	$	129,088	$	6,413			5.0

12

Food Safety revenues increased 6.2% in the third quarter and 4.7% in the first nine months of FY-12, each compared to the prior year periods. Exclusive of the VeroMara acquisition, revenues increased by 5.7% and 4.2% in the quarter and nine month periods, in comparison to the same periods of the prior year. Sales of Natural Toxin, Allergen and Drug Residue products increased by 6.3% in the quarter and by 4.3% for the year-to-date in comparison with FY-11. Within this product group, mycotoxin revenues increased 11.1% in the third quarter, mainly the result of increased testing by corn and grain processors, and market acceptance of the new quantitative lateral flow devices introduced during the quarter. For the year to date, this product line was 1.0% lower than the same period in FY-11, due primarily to unusually high sales of deoxynivalenol (DON) test kits in the prior years caused by unusual weather conditions. Allergen Test Kit revenues increased by 11.6% in the third quarter and by 4.4% for the first nine months of the fiscal year. Bacteria and General Sanitation product revenues remained unchanged from the prior third fiscal quarter but increased by 9.2% for the first nine months of FY-12 compared to FY-11 primarily due to higher sales earlier in the year of disposable test kits used in detecting spoilage organisms and microbial contamination. Despite the loss of a couple of significant customers in the early part of the fiscal year, one due to credit issues, the other the result of a plant closure, Dehydrated Culture Media and Other product revenues increased by 13.9% in the quarter and 0.5% for the year-to-date period. For the comparative quarter, growth includes certain genomics revenues to a number of European customers. The Company’s international operations contributed to the overall Food Safety revenue gains for the quarter and year-to-date. Neogen Europe recorded revenue increases of 18.3% in the fiscal third quarter and 7.0% for the first nine months of FY-2012; sales of genomic testing services and incremental sales of other products in the United Kingdom offset continued weakness in a number of European Union countries. Neogen Latino America and Neogen do Brazil continued to expand their selling and marketing efforts; combined revenues for these subsidiaries increased by 17.3% for the quarter and 57.3% for the year to date period, albeit from small bases.

Animal Safety revenues increased by 6.4% in the third quarter and 5.2% for the year to date period ended February 29, 2012 in comparison with the prior year periods. Life Science and Other revenues were up 5.7% and 3.9% in the third quarter and the nine-month periods compared with the prior year; the launch of an improved substrate product led to an increase in sales of test reagents which Neogen offers to other test kit manufacturers. Vaccine revenues increased by 46.7% for the third quarter and increased by 12.3% in the first nine months of FY-12, due to timing of orders and the shipment of product to key large distributors. Rodenticide and Disinfectant product revenues decreased by 10.4% in the third quarter and 2.8% on a year-to-date basis. This product group declined in the quarter due primarily to a large stocking order of cleaners and disinfectants to Asian markets in the third quarter of prior year. For the year to date, rodenticides have declined due to strong 4^th quarter FY-2011 sales ahead of a June 2011 change in EPA rules regarding labeling of these products. The strong fourth quarter sales pulled revenues from FY-12 into FY-11, resulting in lower FY-2012 revenues. Veterinary Instruments and other product revenues increased by 29.0% and 24.4% in the quarter and nine months, respectively, in comparison with the prior year periods. Increases were due to strong detectable needle revenues and significant sales increases in companion animal products, veterinary gloves and apparel products sold through key veterinary distribution channels. Animal Safety revenues for the third quarter decreased in DNA Testing by 4.3% and 13.0% for the year-to-date due primarily to lower pricing for testing services; sample volumes have increased for both comparative periods. While opportunities for the DNA testing business continue to grow, contract business is not necessarily consistent or predictable from period-to-period as to its timing or amount.

Gross margins increased from 48.7% in the third quarter of FY-11 to 51.0% in the third quarter of FY-12. This resulted principally from favorable shifts in product mix toward higher margin products in each segment and manufacturing efficiencies achieved due to the higher volumes in the quarter. For the year- to-date, gross margins were 50.6% compared to 51.0% in FY-11. The decrease was primarily due to product mix shift, particularly within the Animal Safety segment.

Operating margins decreased from 19.1% to 16.8% in the third quarter and from 21.1% to 18.5% in the first nine months of FY-12 as compared to the first nine months of FY-11. Sales and marketing expenses, expressed as a percentage of revenues, increased from 16.7% to 19.9% in the third quarter and increased from 17.1% to 18.9% on a year-to-date basis. The increase in sales and marketing expenses is the direct effect of additional sales, marketing and customer service representatives added during the year. These positions were added to help the Company capture and support available market opportunities. General and administrative expenses increased from 8.7% to 10.4% of revenues in the third quarter, and from 8.7% to 9.5% on a year to date basis. The change in general and administrative expense is due to increased personnel and related compensation costs, legal costs related to intellectual property, amortization of customer based intangibles from acquired businesses, and costs associated with increased governmental licensing and regulatory affairs. Research expense decreased from 4.3% to 3.9% in the third quarter and from 4.1% to 3.7% in the first nine months of FY-12. While these expenses vary on a quarter- to-quarter basis, depending on the timing of new projects and the completion of existing projects, management expects that research and development efforts will range between 4% to 5% of revenues in support of existing products and for development of future products.

13

The Company recorded $595,000 of other income in the third quarter and $543,000 in the first nine months of FY-12, including the reversal of a portion of the GeneSeek purchase consideration of $180,000 in the three and nine month periods. In the three and nine months ended February 28, 2011, the Company recorded charges of $218,000 and $618,000, respectively, to adjust the fair value of the secondary consideration for GeneSeek. Royalty income in the three and nine month periods of FY-12 were $165,000 and $283,000. In the comparative FY-11 periods the royalty income was $30,000 and $90,000, respectively.

Financial Condition and Liquidity

The overall cash and marketable securities position of the company was $61,335,000 at February 29, 2012, compared to $56,083,000 at May 31, 2011. Accounts receivable increased by $5,695,000 due to increases in revenues and in the timing of receipt of payments; inventories increased by $4,363,000, primarily the result of bulk purchases made to receive more favorable pricing, and to a lesser extent, inventory build ahead of a move to a new production facility.

Approximately $13,235,000 in cash was generated from operations during the nine months ended February 29, 2012. The Company spent $10,822,000 on property and equipment and other assets for the nine-months ended February 29, 2012. Included in this amount is the August purchase of a 128,000 square foot office and warehouse facility in Lexington, Kentucky for $4,950,000. This facility was purchased to accommodate the expansion of the Company’s animal safety operations. In June 2011, the Company closed its purchase of VeroMara for approximately $813,000. Net cash proceeds of $3,024,000 were realized from the exercise of stock options and issuance of shares under the Employee Stock Purchase Plan during the first nine months of FY-12.

Inflation and changing prices are not expected to have a material effect on operations, as management believes it has and will be successful in offsetting increased input costs with price increases.

Management believes that the Company’s existing cash and marketable securities balances at February 29, 2012, along with available borrowings under its credit facility and cash expected to be generated from future operations, will be sufficient to fund activities for the foreseeable future. However, existing cash and borrowing capacity may not be sufficient to meet the Company’s cash requirements to commercialize products currently under development or its plans to acquire other organizations, technologies or products that fit within the Company’s mission statement. Accordingly, the Company may choose to issue equity securities or enter into other financing arrangements for a portion of its future financing needs. The Company has never paid a cash dividend and currently has no plans to do so.

14

PART I – FINANCIAL INFORMATION

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The Company has interest rate and foreign exchange rate risk exposure and no long-term fixed rate investments or borrowings. Primary interest rate risk is due to potential fluctuations of exposure to interest rates for variable rate borrowings.

Foreign exchange risk exposure arises because the Company markets and sells its products throughout the world. The Company also could be affected by weak economic conditions in foreign markets that could reduce demand for its products. Additionally, revenues in certain foreign countries as well as certain expenses related to those revenues are transacted in currencies other than the U.S. Dollar. The Company's operating results are primarily exposed to changes in exchange rates between the U.S. Dollar, the British Pound Sterling and the Euro. When the U.S. Dollar weakens against foreign currencies, the dollar value of revenues denominated in foreign currencies increases. When the U.S. Dollar strengthens, the opposite situation occurs. Additionally, previously recognized revenues in the course of collection can be affected positively or negatively by changes in exchange rates. The Company uses derivative financial instruments to help manage the economic impact of fluctuations in certain currency exchange rates. These contracts are adjusted to fair value through earnings.

Neogen has assets, liabilities and operations outside of the United States, which are located in Scotland, Brazil and Mexico where the functional currency is the British Pound Sterling, Brazilian Real and Mexican Peso, respectively. The Company’s investments in foreign subsidiaries are considered to be long-term.

PART I – FINANCIAL INFORMATION

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

An evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of February 29, 2012 was carried out under the supervision and with the participation of the Company’s management, including the Chairman & Chief Executive Officer and the Vice President & Chief Financial Officer (“the Certifying Officers”). Based on the evaluation, the Certifying Officers concluded that the Company’s disclosure controls and procedures are effective.

Changes in Internal Controls Over Financial Reporting

There was no change to the Company’s internal control over financial reporting during the quarter ended February 29, 2012 that materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

15

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

The Company is subject to certain legal and other proceedings in the normal course of business. In the opinion of management, the outcome of these matters should not have a material effect on its future results of operations or financial position.

Item 6. Exhibits

(a) Exhibit Index

31.1	–	Certification of Chief Executive Officer pursuant to Rule 13a-14(a).
31.2	–	Certification of Chief Financial Officer pursuant to Rule 13a – 14(a).
32	–	Certification pursuant to 18 U.S.C. section 1350
101.INS	–	XBRL Instance Document
101.SCH	–	XBRL Taxonomy Extension Schema Document
101.CAL	–	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	–	XBRL Taxonomy Extension Definition Document
101.LAB	–	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	–	XBRL Taxonomy Extension Presentation Linkbase Document

Items 1A, 2, 3, 4, and 5 are not applicable or removed or reserved and have been omitted.

16

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	NEOGEN CORPORATION
	(Registrant)
Dated: March 30, 2012
	/s/ James L. Herbert
	James L. Herbert
	Chairman & Chief Executive Officer
	(Principal Executive Officer)
Dated: March 30, 2012
	/s/ Steven J. Quinlan
	Steven J. Quinlan
	Vice President & Chief Financial Officer
	(Principal Financial Officer and Principal Accounting Officer)

17

EX-31.1

EXHIBIT 31.1

13a. – CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

NEOGEN CORPORATION AND SUBSIDIARIES

CEO CERTIFICATION

I, James L. Herbert, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the period ended February 29, 2012 of Neogen Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; and

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; and

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting to the registrant’s auditors and the audit committee of registrant’s board of directors:

a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: March 30, 2012

/s/ James L. Herbert

James L. Herbert

Chairman & Chief Executive Officer

(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

13a. – CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

NEOGEN CORPORATION AND SUBSIDIARIES

CFO CERTIFICATION

I, Steven J. Quinlan, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the period ended February 29, 2012 of Neogen Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; and

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; and

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting to the registrant’s auditors and the audit committee of registrant’s board of directors:

a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: March 30, 2012

/s/ Steven J. Quinlan

Steven J. Quinlan

Vice President & Chief Financial Officer

(Principal Financial Officer and Principal Accounting Officer)

EX-32

EXHIBIT 32

18 U.S.C. SECTION 1350 CERTIFICATION

NEOGEN CORPORATION

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report on Form 10-Q of Neogen Corporation (the “Company”) for the period ended February 29, 2012 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, James L. Herbert, as Chief Executive Officer of the Company and I, Steven J. Quinlan, as Chief Financial Officer, hereby certify pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) This Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) Information contained in this Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Dated: March 30, 2012

/s/ James. L. Herbert

James L. Herbert

Chairman & Chief Executive Officer

(Principal Executive Officer)

/s/ Steven J. Quinlan

Steven J. Quinlan

Vice President & Chief Financial Officer

(Principal Financial Officer and Principal Accounting Officer)

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Equity Compensation Plans (Narrative) (Details) (USD $)	3 Months Ended		9 Months Ended				12 Months Ended
	Feb. 29, 2012	Feb. 28, 2011	Feb. 29, 2012	Feb. 28, 2011	Feb. 29, 2012 Employee And Director Stock Option [Member]	Feb. 29, 2012 Non-Qualified Options [Member]	May 31, 2012 Employee Stock Option [Member]	May 31, 2011 Director Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options grant period, years					5	10
Compensation expense	$ 685,000	$ 584,000	$ 1,757,000	$ 1,824,000
Weighted-average fair value of stock options granted							$ 10.42	$ 8.60
Employee stock purchases discount			5.00%

XML

Inventories

9 Months Ended

Feb. 29, 2012

Inventories [Abstract]

Inventories

2. INVENTORIES

Inventories are stated at the lower of cost, determined on the first-in, first-out method, or market. The components of inventories follow:

	February 29, 2012		May 31, 2011
	(In thousands)
Raw materials	$	14,161	$	12,125
Work-in-process		2,650		2,192
Finished and purchased goods		19,502		17,677
	$	36,313	$	31,994

XML

Long Term Debt (Details) (USD $)	9 Months Ended
	Feb. 29, 2012
Long Term Debt [Abstract]
Unsecured revolving line of credit, total amount available	$ 10,000,000
Unsecured revolving line of credit, increase in available credit	$ 12,000,000
Unsecured revolving line of credit, interest terms	LIBOR plus 100 basis points
Unsecured revolving line of credit, interest rate	1.24%

XML

Business And Product Line Acquisitions (Details) (USD $)	3 Months Ended		9 Months Ended					0 Months Ended	1 Months Ended
	Feb. 29, 2012 GeneSeek, Inc. [Member]	Feb. 28, 2011 GeneSeek, Inc. [Member]	Feb. 29, 2012 GeneSeek, Inc. [Member] years	Feb. 28, 2011 GeneSeek, Inc. [Member]	Jun. 30, 2011 GeneSeek, Inc. [Member]	May 31, 2011 GeneSeek, Inc. [Member]	Apr. 01, 2010 GeneSeek, Inc. [Member]	Jun. 21, 2011 VeroMara [Member]	Jun. 21, 2011 VeroMara [Member]	Jun. 21, 2011 GlycoMar Ltd. [Member]
Business Acquisition [Line Items]
Cash consideration for purchase of business					$ 1,856,000		$ 14,050,000
Allocation of purchase price for fixed assets							847,000
Secondary payment obligations					1,537,000		7,000,000			200,000
Allocation of purchase price for accounts receivable							1,923,000
Allocation of purchase price for inventory					319,000		1,512,000
Allocation of purchase price for current liabilities							905,000
Allocation of purchase price for deferred tax liabilities							2,530,000
Allocation of purchase price for secondary payment liabilities	2,653,000		2,653,000			4,370,000	3,583,000
Goodwill and other intangible assets estimated lives-minimum (years)			5
Goodwill and other intangible assets estimated lives-maximum (years)			20
Charge to other income (expense) due to increase in fair value of secondary payment liability	180,000	(218,000)	130,000	(618,000)
Acquired testing laboratory by cash									813,000
Acquiree revenues								$ 800,000

XML

Commitments And Contingencies (Details) (USD $)	9 Months Ended
	Feb. 29, 2012 years	May 31, 2011
Environmental remediation expense, period of remediation, years	5
Estimated liability costs of remediation	$ 916,000	$ 916,000
Estimated liability, measurement period, years	15
Minimum [Member]
Environmental remediation expense	50,000
Maximum [Member]
Environmental remediation expense	$ 105,000

XML

Stock Purchase (Details) (USD $)	Feb. 29, 2012	Dec. 31, 2008
Stock Purchase [Abstract]
Shares authorized to purchase		750,000
Cumulative number of shares repurchased	74,684
Cost of repurchased shares, including commissions	$ 923,000

XML

Basis Of Presentation

9 Months Ended

Feb. 29, 2012

Basis Of Presentation [Abstract]

Basis Of Presentation

1. BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (generally accepted accounting principles) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for the nine month period ended February 29, 2012 are not necessarily indicative of the results to be expected for the fiscal year ending May 31, 2012. For more complete financial information, these consolidated financial statements should be read in conjunction with the May 31, 2011 audited consolidated financial statements and the notes thereto included in the Company's annual report on Form 10-K for the year ended May 31, 2011.

XML

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Feb. 29, 2012	May 31, 2011
ASSETS
Cash and cash equivalents	$ 42,698	$ 35,844
Marketable securities	18,637	20,239
Accounts receivable, less allowance of $800 and $800	34,332	28,634
Inventories	36,313	31,994
Deferred income taxes	1,044	1,044
Prepaid expenses and other current assets	3,170	4,747
TOTAL CURRENT ASSETS	136,194	122,502
NET PROPERTY AND EQUIPMENT	29,502	22,340
OTHER ASSETS
Goodwill	51,704	51,584
Other non-amortizable intangible assets	5,166	5,166
Customer based intangibles, net of accumulated amortization of $6,689 and $5,431	10,748	12,006
Other non-current assets, net of accumulated amortization of $3,385 and $2,789	7,033	6,064
TOTAL OTHER ASSETS	74,651	74,820
TOTAL ASSETS	240,347	219,662
LIABILITIES AND EQUITY
Accounts payable	7,708	8,516
Accrued compensation	2,698	2,715
Income taxes	2,604	0
Other accruals	4,426	6,566
TOTAL CURRENT LIABILITIES	17,436	17,797
DEFERRED INCOME TAXES	8,347	8,347
OTHER LONG-TERM LIABILITIES	4,580	4,540
TOTAL NONCURRENT LIABILITIES	12,927	12,887
TOTAL LIABILITIES	30,363	30,684
EQUITY
Preferred stock, $1.00 par value, 100,000 shares authorized, none issued and outstanding	0	0
Common stock, $.16 par value, 60,000,000 shares authorized, 23,553,508 and 23,290,604 shares issued and outstanding at February 29, 2012 and May 31, 2011, respectively	3,768	3,727
Additional paid-in capital	86,107	81,248
Accumulated other comprehensive loss	(773)	(394)
Retained earnings	120,580	104,064
Total Neogen Corporation Stockholders' Equity	209,682	188,645
Noncontrolling interest	302	333
TOTAL EQUITY	209,984	188,978
TOTAL LIABILITIES AND EQUITY	$ 240,347	$ 219,662

XML

Consolidated Statement Of Equity (Parenthetical) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Feb. 29, 2012	Feb. 28, 2011
Consolidated Statement Of Equity [Abstract]
Issuance of shares of common stock under equity compensation plans, and share based compensation, excess income tax benefit	$ 1,432
Total comprehensive income		$ 18,030

XML

Inventories (Components Of Inventories) (Details) (USD $) In Thousands, unless otherwise specified	Feb. 29, 2012	May 31, 2011
Inventories [Abstract]
Raw materials	$ 14,161	$ 12,125
Work-in-process	2,650	2,192
Finished and purchased goods	19,502	17,677
Inventories	$ 36,313	$ 31,994

XML

Segment Information (Schedule Of Segment Information) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended				9 Months Ended
	Feb. 29, 2012		Feb. 28, 2011		Feb. 29, 2012		Feb. 28, 2011		May 31, 2011
Segment Reporting Information [Line Items]
Net sales to external customers	$ 44,912		$ 42,235		$ 135,501		$ 129,088
Operating income (reduction)	7,549		8,065		25,042		27,290
Total assets	240,347		209,157		240,347		209,157		219,662
Food Safety [Member]
Segment Reporting Information [Line Items]
Net sales to external customers	21,923		20,634		67,247		64,226
Operating income (reduction)	5,119		5,516		17,961		18,753
Total assets	83,053		77,179		83,053		77,179
Animal Safety [Member]
Segment Reporting Information [Line Items]
Net sales to external customers	22,989		21,601		68,254		64,862
Operating income (reduction)	3,174		3,063		8,851		9,949
Total assets	103,262		89,771		103,262		89,771
Corporate And Eliminations [Member]
Segment Reporting Information [Line Items]
Net sales to external customers	0	[1]	0	[1]	0	[1]	0	[1]
Operating income (reduction)	(744)	[1]	(514)	[1]	(1,770)	[1]	(1,412)	[1]
Total assets	$ 54,032	[1]	$ 42,207	[1]	$ 54,032	[1]	$ 42,207	[1]

[1] Includes corporate assets, consisting principally of cash and cash equivalents, marketable securities, deferred assets and overhead expenses not allocated to specific business segments. Also includes the elimination of intersegment transactions.

XML

Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Feb. 29, 2012	Feb. 28, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 16,485	$ 16,878
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	4,489	3,941
Share based compensation	1,757	1,824
Excess income tax benefit from the exercise of stock options	(1,432)	(461)
Changes in operating assets and liabilities, net of business acquisitions:
Accounts receivable	(5,695)	(1,460)
Inventories	(4,363)	383
Prepaid expenses and other current assets	1,564	331
Accounts payable, accruals and other	430	2,525
NET CASH PROVIDED BY OPERATING ACTIVITIES	13,235	23,961
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment and other assets	(10,820)	(5,353)
Proceeds from the sale of marketable securities	55,883	27,253
Purchases of marketable securities	(54,281)	(44,695)
Payments for business acquisitions	(813)	0
NET CASH USED IN INVESTING ACTIVITIES	(10,031)	(22,795)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in other long-term liabilities	(750)	301
Net proceeds from issuance of common stock	3,024	5,451
Excess income tax benefit from the exercise of stock options	1,432	461
NET CASH PROVIDED BY FINANCING ACTIVITIES	3,706	6,213
EFFECT OF EXCHANGE RATE ON CASH	(56)	0
INCREASE IN CASH	6,854	7,379
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	35,844	22,806
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 42,698	$ 30,185

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Feb. 29, 2012	May 31, 2011
Consolidated Balance Sheets [Abstract]
Allowance for doubtful accounts receivable	$ 800	$ 800
Accumulated amortization for customer based intangibles	6,689	5,431
Accumulated amortization for other non-current assets	$ 3,385	$ 2,789
Preferred stock, par value	$ 1	$ 1
Preferred stock, shares authorized	100,000	100,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.16	$ 0.16
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares issued	23,553,508	23,290,604
Common stock, shares outstanding	23,553,508	23,290,604

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Stock Purchase

9 Months Ended

Feb. 29, 2012

Stock Purchase [Abstract]

Stock Purchase

10. STOCK PURCHASE

In December 2008, the Company's Board of Directors authorized a program to purchase, subject to market conditions, up to 750,000 shares of the Company's common stock. As of February 29, 2012, 74,684 cumulative shares had been purchased in negotiated and open market transactions for a total price, including commissions, of approximately $923,000. Shares purchased under the program were retired. There have been no purchases in fiscal year 2012 and there were none in 2011.

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Document And Entity Information	9 Months Ended
	Feb. 29, 2012	Mar. 01, 2012
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Feb. 29, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3
Entity Filer Category	Large Accelerated Filer
Entity Registrant Name	NEOGEN CORP
Entity Central Index Key	0000711377
Current Fiscal Year End Date	--05-31
Entity Common Stock, Shares Outstanding		23,553,508

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Inventories (Tables)

9 Months Ended

Feb. 29, 2012

Inventories [Abstract]

Components Of Inventories

	February 29, 2012		May 31, 2011
	(In thousands)
Raw materials	$	14,161	$	12,125
Work-in-process		2,650		2,192
Finished and purchased goods		19,502		17,677
	$	36,313	$	31,994

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Consolidated Statements Of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Feb. 29, 2012	Feb. 28, 2011	Feb. 29, 2012	Feb. 28, 2011
Consolidated Statements Of Income [Abstract]
Net sales	$ 44,912	$ 42,235	$ 135,501	$ 129,088
Cost of goods sold	22,020	21,647	66,975	63,245
GROSS MARGIN	22,892	20,588	68,526	65,843
OPERATING EXPENSES
Sales and marketing	8,929	7,044	25,662	22,060
General and administrative	4,660	3,677	12,846	11,253
Research and development	1,754	1,802	4,976	5,240
TOTAL OPERATING EXPENSES	15,343	12,523	43,484	38,553
OPERATING INCOME	7,549	8,065	25,042	27,290
OTHER INCOME (EXPENSE)
Interest income	30	13	78	70
Change in purchase consideration	180	(218)	180	(618)
Other income (expense)	385	(17)	285	(164)
TOTAL OTHER INCOME(EXPENSE)	595	(222)	543	(712)
INCOME BEFORE INCOME TAXES	8,144	7,843	25,585	26,578
INCOME TAXES	2,900	2,900	9,100	9,700
NET INCOME	$ 5,244	$ 4,943	$ 16,485	$ 16,878
NET INCOME PER SHARE
Basic	$ 0.22	$ 0.21	$ 0.70	$ 0.74
Diluted	$ 0.22	$ 0.21	$ 0.69	$ 0.71

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Equity Compensation Plans

9 Months Ended

Feb. 29, 2012

Equity Compensation Plans [Abstract]

Equity Compensation Plans

5. EQUITY COMPENSATION PLANS

Options are generally granted under the employee and director stock option plan for 5 year periods and become exercisable in equal annual installments during that period. Certain non-qualified options are granted for 10 year periods. A summary of stock option activity during the nine months ended February 29, 2012 follows:

	Shares			Weighted-Average Exercise Price
Options outstanding at June 1, 2011		1,574,000		$	17.77
Granted		316,000			34.59
Exercised		(249,000	)		11.86
Forfeited		(28,000	)		15.30
Options outstanding at February 29, 2012		1,613,000			22.03

During the three and nine month periods ended February 29, 2012 and February 28, 2011, the Company recorded $685,000 and $584,000 and $1,757,000 and $1,824,000, respectively, of compensation expense related to its share-based awards.

The weighted-average fair value of stock options granted during FY-2012 and 2011, estimated on the date of grant using the Black-Scholes option pricing model was $10.42 and $8.60 respectively, per option. The fair value of stock options granted was estimated using the following weighted-average assumptions.

	FY-12			FY-11
Risk-free interest rate		1.2	%		1.7	%
Expected dividend yield		0	%		0	%
Expected stock price volatility		36.4	%		35.8	%
Expected option life		4.0 years			4.0 years

The Company has an Employee Stock Purchase plan that provides for employee stock purchases at a 5% discount to market price. The discount is expensed as of the date of purchase.

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Segment Information

9 Months Ended

Feb. 29, 2012

Segment Information [Abstract]

Segment Information

4. SEGMENT INFORMATION

The Company has two reportable segments: Food Safety and Animal Safety. The Food Safety segment produces and markets diagnostic test kits and related products used by food producers and processors to detect harmful natural toxins, foodborne bacteria, allergens and levels of general sanitation. The Animal Safety segment is primarily engaged in the production and marketing of products dedicated to animal health, including a complete line of consumable products marketed to veterinarians and animal health product distributors; the segment also provides genetic identification services. Additionally, Animal Safety produces and markets rodenticides and disinfectants to assist in control of rodents and disease in and around agricultural, food production and other facilities.

Segment information for the three months ended February 29/28, 2012 and 2011 follows:

	Food Safety		Animal Safety		Corporate and Eliminations (1)			Total
			(In thousands)
Fiscal 2012
Net sales to external customers	$	21,923	$	22,989	$	0		$	44,912
Operating income (reduction)		5,119		3,174		(744	)		7,549
Total assets		83,053		103,262		54,032			240,347
Fiscal 2011
Net sales to external customers	$	20,634	$	21,601	$	0		$	42,235
Operating income (reduction)		5,516		3,063		(514	)		8,065
Total assets		77,179		89,771		42,207			209,157

Segment information for the nine months ended February 29/28, 2012 and 2011 follows:

	Food Safety		Animal Safety		Corporate and Eliminations (1)			Total
			(In thousands)
Fiscal 2012
Net sales to external customers	$	67,247	$	68,254	$	0		$	135,501
Operating income (reduction)		17,961		8,851		(1,770	)		25,042
Fiscal 2011
Net sales to external customers	$	64,226	$	64,862	$	0		$	129,088
Operating income (reduction)		18,753		9,949		(1,412	)		27,290

(1) Includes corporate assets, consisting principally of cash and cash equivalents, marketable securities, deferred assets and overhead expenses not allocated to specific business segments. Also includes the elimination of intersegment transactions.

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Net Income Per Share (Calculation Of Net Income Per Share) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Feb. 29, 2012	Feb. 28, 2011	Feb. 29, 2012	Feb. 28, 2011
Net Income Per Share [Abstract]
Net income	$ 5,244	$ 4,943	$ 16,485	$ 16,878
Weighted average shares	23,541	23,149	23,428	22,923
Effect of dilutive stock options and warrants	447	785	571	797
Denominator for diluted net income per share	23,988	23,934	23,999	23,720
Basic	$ 0.22	$ 0.21	$ 0.70	$ 0.74
Diluted	$ 0.22	$ 0.21	$ 0.69	$ 0.71

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Net Income Per Share (Tables)

9 Months Ended

Feb. 29, 2012

Net Income Per Share [Abstract]

Calculation Of Net Income Per Share

	Three Months Ended February 29/28,				Nine Months Ended February 29/28,
	2012		2011		2012		2011
Numerator for basic and diluted net income per share:
Net income	$	5,244	$	4,943	$	16,485	$	16,878
Denominator:
Denominator for basic net income per share:
Weighted average shares		23,541		23,149		23,428		22,923
Effect of dilutive stock options and warrants		447		785		571		797
Denominator for diluted net income per share		23,988		23,934		23,999		23,720
Net income per share:
Basic	$	0.22	$	0.21	$	0.70	$	0.74
Diluted	$	0.22	$	0.21	$	0.69	$	0.71

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Long Term Debt

9 Months Ended

Feb. 29, 2012

Long Term Debt [Abstract]

Long Term Debt

8. LONG TERM DEBT

The Company has a financing agreement in place with a bank (no amounts drawn at February 29, 2012 or May 31, 2011) which, through the first quarter of fiscal 2011, provided for an unsecured revolving line of credit of $10,000,000. Effective August 31, 2011, the Company extended the agreement by one year through November 30, 2013 and increased the total available credit to $12,000,000. The incremental credit is to provide for flexibility for potential foreign currency hedging strategies. The interest rate is at LIBOR plus 100 basis points (rate under the terms of the agreement was 1.24% at February 29, 2012). Financial covenants include maintaining specified levels of tangible net worth, debt service coverage, and funded debt to EBITDA, each of which the Company was in compliance with at February 29, 2012.

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New Accounting Pronouncements

9 Months Ended

Feb. 29, 2012

New Accounting Pronouncements [Abstract]

New Accounting Pronouncements

6. NEW ACCOUNTING PRONOUNCEMENTS

In June 2011, the FASB issued an accounting standards update titled Presentation of Comprehensive Income. This update eliminates the current option to report other comprehensive income and its components in the statement of changes in equity. An entity can elect to present items of net income and other comprehensive income in one continuous statement or in two separate consecutive statements. Each component of net income and each component of other comprehensive income, together with totals for comprehensive income and its two parts, net income and other comprehensive income, must be displayed under either alternative. The new disclosure requirements are effective for fiscal years beginning after December 15, 2011.

In September 2011, the FASB issued an accounting standards update titled Intangibles — Goodwill and Other: Testing Goodwill for Impairment. This update gives the option of performing a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount and, in some cases, skip the two-step impairment test. This standard is effective for fiscal years beginning after December 15, 2011, and early adoption is permitted.

The above ASU's issued by the FASB, upon adoption, are not expected by management to have a material effect on the Company's consolidated financial statements.

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Business And Product Line Acquisitions

9 Months Ended

Feb. 29, 2012

Business And Product Line Acquisitions [Abstract]

Business And Product Line Acquisitions

7. BUSINESS AND PRODUCT LINE ACQUISITIONS

On April 1, 2010, Neogen Corporation acquired GeneSeek, Inc. of Lincoln, Nebraska, a leading commercial agricultural genetic laboratory. GeneSeek's technology employs high-resolution DNA genotyping for identity and trait analysis in a variety of important animal and agricultural plant species. Consideration for the purchase was $14,050,000 in cash and secondary payment obligations of up to $7,000,000. The allocation of the purchase price included accounts receivable of $1,923,000, inventory of $1,512,000, fixed assets of $847,000, current liabilities of $905,000, deferred tax liabilities of $2,530,000, secondary payment liabilities of $3,583,000, and the remainder to goodwill (not deductible for tax purposes) and other intangible assets (with estimated lives of 5-20 years). The allocation was generally based on the fair value of these assets determined using the income approach. These fair value measurements were based on significant inputs not observable in the market and thus represent Level 3 fair value measurements. The secondary payment was based upon future operating results of the GeneSeek business through 2013, and payable annually over a three year period, measured at fair value, and is considered a Level 3 fair value measurement. As of May 31, 2011, the balance of the secondary payment liability recorded was approximately $4,370,000. A payment of $1,856,000 was made in June, 2011 to the former owners of GeneSeek, comprised of $1,537,000 for the first year contingent payment and an additional $319,000 for inventory purchased post acquisition and settlement of other liabilities. During the three and nine months ended February 29, 2012 and February 28, 2011 the Company recorded approximately $180,000 and $130,000 and ($218,000) and ($618,000), respectively, within other income (expense), representing the change in fair market value of the secondary payment liability. As of February 29, 2012 the balance of secondary payment liability was approximately $2,653,000. The acquisition has been integrated into the Animal Safety segment.

On June 21, 2011, Neogen Corporation acquired the assets of VeroMara seafood testing laboratory for approximately $813,000 in cash and a potential secondary payment of approximately $200,000, from its parent company, GlycoMar Ltd. The potential secondary payment was based on VeroMara being awarded a contract in FY 12, which did not occur. VeroMara offers testing services to the shellfish and salmon aquaculture industries. VeroMara's services include testing for shellfish toxins, general foodborne pathogens, including E. coli, noroviruses, and salmon husbandry. VeroMara recorded revenues of approximately $800,000 (U.S.) in its most recently completed fiscal year. The purchase accounting for this transaction will be completed in fiscal year 2012. The acquisition is expected to provide a strong synergistic fit for the Company's Food Safety segment.

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Commitments And Contingencies

9 Months Ended

Feb. 29, 2012

Commitments And Contingencies [Abstract]

Commitments And Contingencies

9. COMMITMENTS AND CONTINGENCIES

The Company is involved in environmental remediation and monitoring activities at its Randolph, Wisconsin manufacturing facility and accrues for related costs when such costs are determined to be probable and estimable. The Company is currently expensing annual costs of remediation, which have ranged from $50,000 to $105,000 per year over the past five years. The Company's estimated liability for these costs of $916,000 at February 29, 2012 and May 31, 2011, measured on an undiscounted basis over an estimated period of 15 years, is recorded within other long term liabilities in the consolidated balance sheet.

The Company is subject to certain legal and other proceedings in the normal course of business that, in the opinion of management, should not have a material effect on its future results of operations or financial position.

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Equity Compensation Plans (Tables)

9 Months Ended

Feb. 29, 2012

Equity Compensation Plans [Abstract]

Summary Of Stock Option Activity

	Shares			Weighted-Average Exercise Price
Options outstanding at June 1, 2011		1,574,000		$	17.77
Granted		316,000			34.59
Exercised		(249,000	)		11.86
Forfeited		(28,000	)		15.30
Options outstanding at February 29, 2012		1,613,000			22.03

Fair Value Of Stock Options Granted, Estimated Using Weighted-Average Assumptions

	FY-12			FY-11
Risk-free interest rate		1.2	%		1.7	%
Expected dividend yield		0	%		0	%
Expected stock price volatility		36.4	%		35.8	%
Expected option life		4.0 years			4.0 years

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Equity Compensation Plans (Summary Of Stock Option Activity) (Details) (USD $)	9 Months Ended
	Feb. 29, 2012
Equity Compensation Plans [Abstract]
Shares, Options outstanding at June 1, 2011	1,574,000
Shares, Granted	316,000
Shares, Exercised	(249,000)
Shares, Forfeited	(28,000)
Shares, Options outstanding at February 29, 2012	1,613,000
Weighted-Average Exercise Price, Options outstanding at June 1, 2011	$ 17.77
Weighted-Average Exercise Price, Granted	$ 34.59
Weighted-Average Exercise Price, Exercised	$ 11.86
Weighted-Average Exercise Price, Forfeited	$ 15.30
Weighted-Average Exercise Price, Options outstanding at February 29, 2012	$ 22.03

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Consolidated Statement Of Equity (USD $) In Thousands, except Share data, unless otherwise specified	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]	Noncontrolling Interest [Member]	Total
Balance at May. 31, 2011	$ 3,727	$ 81,248	$ (394)	$ 104,064	$ 333	$ 188,978
Balance, shares at May. 31, 2011	23,291,000					23,290,604
Issuance of shares of common stock under equity compensation plans, and share based compensation, including $1,432 of excess income tax benefit	39	4,377				4,416
Issuance of shares of common stock under equity compensation plans, and share based compensation, including $1,432 of excess income tax benefit, shares	249,000
Issuance of shares under employee stock purchase plan	2	482				484
Issuance of shares under employee stock purchase plan, shares	14,000
Comprehensive income:
Net income (loss) for the nine months ended February 29, 2012 less noncontrolling interest				16,516	(31)	16,485
Foreign currency translation adjustments			(379)			(379)
Total comprehensive income ($18,030 in the nine months ended February 28, 2011)						16,106
Balance at Feb. 29, 2012	$ 3,768	$ 86,107	$ (773)	$ 120,580	$ 302	$ 209,984
Balance, shares at Feb. 29, 2012	23,554,000					23,553,508

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Net Income Per Share

9 Months Ended

Feb. 29, 2012

Net Income Per Share [Abstract]

Net Income Per Share

3. NET INCOME PER SHARE

The calculation of net income per share follows:

	Three Months Ended February 29/28,				Nine Months Ended February 29/28,
	2012		2011		2012		2011
Numerator for basic and diluted net income per share:
Net income	$	5,244	$	4,943	$	16,485	$	16,878
Denominator:
Denominator for basic net income per share:
Weighted average shares		23,541		23,149		23,428		22,923
Effect of dilutive stock options and warrants		447		785		571		797
Denominator for diluted net income per share		23,988		23,934		23,999		23,720
Net income per share:
Basic	$	0.22	$	0.21	$	0.70	$	0.74
Diluted	$	0.22	$	0.21	$	0.69	$	0.71

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Equity Compensation Plans (Fair Value Of Stock Options Granted, Estimated Using Weighted-Average Assumptions) (Details)	12 Months Ended
	May 31, 2012 years	May 31, 2011 years
Equity Compensation Plans [Abstract]
Risk-free interest rate	1.20%	1.70%
Expected dividend yield	0.00%	0.00%
Expected stock price volatility	36.40%	35.80%
Expected option life (in years)	4.0	4.0

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Segment Information (Tables)

9 Months Ended

Feb. 29, 2012

Segment Information [Abstract]

Schedule Of Segment Information

Segment information for the three months ended February 29/28, 2012 and 2011 follows:

	Food Safety		Animal Safety		Corporate and Eliminations (1)			Total
			(In thousands)
Fiscal 2012
Net sales to external customers	$	21,923	$	22,989	$	0		$	44,912
Operating income (reduction)		5,119		3,174		(744	)		7,549
Total assets		83,053		103,262		54,032			240,347
Fiscal 2011
Net sales to external customers	$	20,634	$	21,601	$	0		$	42,235
Operating income (reduction)		5,516		3,063		(514	)		8,065
Total assets		77,179		89,771		42,207			209,157

Segment information for the nine months ended February 29/28, 2012 and 2011 follows:

	Food Safety		Animal Safety		Corporate and Eliminations (1)			Total
			(In thousands)
Fiscal 2012
Net sales to external customers	$	67,247	$	68,254	$	0		$	135,501
Operating income (reduction)		17,961		8,851		(1,770	)		25,042
Fiscal 2011
Net sales to external customers	$	64,226	$	64,862	$	0		$	129,088
Operating income (reduction)		18,753		9,949		(1,412	)		27,290

(1) Includes corporate assets, consisting principally of cash and cash equivalents, marketable securities, deferred assets and overhead expenses not allocated to specific business segments. Also includes the elimination of intersegment transactions.