INVESTMENT IN UNCONSOLIDATED AFFILIATES

3 Months Ended

Jun. 30, 2016

INVESTMENT IN UNCONSOLIDATED AFFILIATES [Abstract]

INVESTMENT IN UNCONSOLIDATED AFFILIATES

NOTE 8.  INVESTMENT IN UNCONSOLIDATED AFFILIATES

At June 30, 2016, we have one investment in an unconsolidated affiliate which is accounted for using the equity method of accounting. In February 2011, we purchased a 15% equity ownership interest in Scandinavian Micro Biodevices APS (“SMB”) for $2.8 million in cash. SMB is a privately-held developer and manufacturer of point-of-care diagnostic products for veterinary use. SMB, based in Farum, Denmark, has been the original equipment manufacturer of the Abaxis VetScan VSpro point-of-care specialty analyzer since 2008. We accounted for our investment in SMB using the equity method due to our significant influence over SMB’s operations. Our allocated portions of SMB’s net loss during the three months ended June 30, 2016 and 2015 were $34,000 and $33,000, respectively. Our proportionate share of SMB’s net income or loss is recorded in “Interest and other income (expense), net” on the condensed consolidated statements of income.

See Note 19, “Subsequent Events,” for information regarding our investment in SMB.

In June 2016, we invested a total of $3.0 million in a privately-held company. Our investment is recorded under the cost method since we do not exercise significant influence over the investee’s operating or financial activities.

The carrying value of our cost method investment is reviewed quarterly for changes in circumstances or the occurrence of events that suggest our investment may not be recoverable. The fair value of cost method investments is not adjusted if there are no identified events or changes in circumstances that may have a material adverse effect on the fair value of the investment.