LOVELAND - Heska Corp., a manufacturer of veterinary diagnostic products, reported Friday net income of $262,000 in the second quarter, compared with $457,000 in the second quarter of 2011.

In the second quarter, Heska recorded a $144,000 deferred tax expense, compared with a $235,000 deferred tax expense in the same period of the previous year.

Revenue at Heska increased from $17.4 million in the second quarter of 2011 to $18.3 million, supported by a 12 percent increase in core companion animal health revenue. Revenue in that division increased from $14 million to $15.7 million year-over-year in the second quarter.

"In the second quarter of 2012, Heska grew its revenue and benefited from improvements in our strengthened and expanded sales force, which provides encouragement about the long-term growth potential for our company," said Robert Grieve, CEO of Heska.

"However, this progress was unable to fully offset the profitability impact of the anticipated revenue decline in our other vaccine, pharmaceuticals and products segment as well as increased sales and marketing expenses largely related to our recent investments in our sales force."

Revenue in the other vaccines, pharmaceuticals and products division decreased from $3.4 million in the second quarter of 2011 to $2.5 million in the second quarter.