HSKA: Management Discusses Q2 Financial Results; Shares Fall to 52-Week Low
Submitted By Knobias ClipReport
By Fain Hughes, fhughes@knobias.com
Shares of Heska Corporation (HSKA) fell to another 52-low on Monday after the Company reported financial results for its second quarter ended June 30, 2008. Total revenue for the second quarter was $22.6 million, an increase of 13% compared to the second quarter of 2007. Net income was $0.01 per diluted share versus $0.02 per diluted share in the second quarter of 2007.
Jason A. Napolitano, CFO of Heska Corp., said “We expect Q3 revenues of over $22 million and net income of $650,000. We expect FY08 net income of $1.5 million, or $0.03 per share, and gross margins in the 36%-37% range.”
He added, “We are also disappointed to see our stock at these levels despite all of the progress we have made. We believe that generating growth and solid operating results in our business is the most effective way to increase investment in our stock and raise our price.”
Dr. Robert B. Grieve, Chairman and CEO of Heska Corp., explained, “We reported our highest second quarter revenue ever. We also produced record second quarter operating income of $1.4 million.”
“Companion animal spending has generally been unaffected by economic downturns. However, every downturn has its own unique characteristics. We have been unable to reliably determine any such eefects on our current business with any precision. However, we do know that two of our major competitors have recently reported Q2 results and have noted the negative effect that the economy has had on their business. They have reported slower-than-expected use of consumables. We will continue to monitor the industry, and we will be conservative as we consider discretionary, operating and capital expenditures.”
Dr. Grieve concluded, “We remain enthusiastic about the business opportunities for the rest of this year. In 2008, we plan to deliver the highest annual revenue results in the history of the Company, while laying the groundwork for future growth.”
