Abaxis (ABAX) 10-Q 9 Aug 16 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jun. 30, 2016	Aug. 08, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	ABAXIS INC
Entity Central Index Key	881,890
Current Fiscal Year End Date	--03-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		22,533,000
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016
Current assets:
Cash and cash equivalents	$ 87,526	$ 88,323
Short-term investments	48,657	41,474
Receivables (net of allowances of $416 at June 30, 2016 and $479 at March 31, 2016)	36,908	35,148
Inventories	35,640	35,131
Prepaid expenses and other current assets	4,040	6,351
Net deferred tax assets, current	4,810	4,810
Current assets of discontinued operations	61	961
Total current assets	217,642	212,198
Long-term investments	17,080	22,458
Investment in unconsolidated affiliates	5,670	2,705
Property and equipment, net	29,277	26,842
Intangible assets, net	1,286	1,324
Net deferred tax assets, non-current	4,293	3,903
Other assets	3,397	1,950
Total assets	278,645	271,380
Current liabilities:
Accounts payable	8,390	7,292
Accrued payroll and related expenses	7,930	8,349
Accrued taxes	1,958	1,145
Current liabilities of discontinued operations	57	112
Other accrued liabilities	9,293	9,393
Deferred revenue	1,624	1,600
Warranty reserve	1,344	1,281
Total current liabilities	30,596	29,172
Non-current liabilities:
Deferred revenue	2,034	2,274
Warranty reserve	2,232	1,927
Net deferred tax liabilities	277	384
Notes payable, less current portion	354	379
Other non-current liabilities	990	932
Total non-current liabilities	5,887	5,896
Total liabilities	36,483	35,068
Commitments and contingencies (Note 12)
Shareholders' equity:
Preferred stock, no par value: 5,000,000 shares authorized; no shares issued and outstanding	0	0
Common stock, no par value: 35,000,000 shares authorized; 22,500,000 and 22,408,000 shares issued and outstanding at June 30, 2016 and March 31, 2016, respectively	128,667	127,016
Retained earnings	113,493	109,303
Accumulated other comprehensive gain (loss)	2	(7)
Total shareholders' equity	242,162	236,312
Total liabilities and shareholders' equity	$ 278,645	$ 271,380

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016
Current assets:
Receivables, allowances	$ 416	$ 479
Shareholders' equity:
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	35,000,000	35,000,000
Common stock, shares issued (in shares)	22,500,000	22,408,000
Common stock, shares outstanding (in shares)	22,500,000	22,408,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) [Abstract]
Revenues	$ 57,696	$ 53,090
Cost of revenues	25,695	23,698
Gross profit	32,001	29,392
Operating expenses:
Research and development	5,233	4,723
Sales and marketing	11,824	10,586
General and administrative	4,202	3,458
Total operating expenses	21,259	18,767
Income from operations	10,742	10,625
Interest and other income (expense), net	(30)	359
Income before income tax provision	10,712	10,984
Income tax provision	3,822	3,989
Net income	$ 6,890	$ 6,995
Net income per share:
Basic net income per share (in dollars per share)	$ 0.31	$ 0.31
Diluted net income per share (in dollars per share)	$ 0.30	$ 0.31
Shares used in the calculation of net income per share:
Weighted average common shares outstanding - basic (in shares)	22,465,000	22,624,000
Weighted average common shares outstanding - diluted (in shares)	22,685,000	22,879,000
Cash dividends declared per share (in dollars per share)	$ 0.12	$ 0.11

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract]
Net income	$ 6,890	$ 6,995
Other comprehensive income (loss):
Net change in unrealized gain (loss) on investments	15	(2)
Tax provision (benefit) on other comprehensive income (loss)	6	(1)
Other comprehensive income (loss), net of tax	9	(1)
Comprehensive income	$ 6,899	$ 6,994

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net income	$ 6,890	$ 6,995
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,692	1,480
Investment premium amortization, net	154	226
Net loss on disposals of property and equipment	26	0
Impairment loss of intangible assets	0	13
Foreign exchange (gain) loss	199	(200)
Share-based compensation expense	2,819	2,801
Excess tax benefits from share-based awards	(132)	(747)
Deferred income taxes	(396)	(325)
Equity in net loss of unconsolidated affiliate	34	33
Changes in assets and liabilities:
Receivables, net	(914)	1,276
Inventories	(2,123)	1,932
Prepaid expenses and other current assets	2,284	1,053
Other assets	(1,447)	(85)
Accounts payable	1,103	(1,781)
Accrued payroll and related expenses	(419)	(3,747)
Accrued taxes	739	(1,452)
Other liabilities	(22)	(5,601)
Deferred revenue	(216)	(151)
Warranty reserve	368	(287)
Net cash provided by operating activities	10,639	1,433
Cash flows from investing activities:
Purchases of held-to-maturity investments	(11,369)	(29,769)
Proceeds from maturities and redemptions of available-for-sale investments	1,000	0
Proceeds from maturities and redemptions of held-to-maturity investments	8,425	4,747
Purchases of property and equipment	(2,578)	(582)
Cash paid for investment in unconsolidated affiliate	(2,999)	0
Net cash used in investing activities	(7,521)	(25,604)
Cash flows from financing activities:
Tax withholdings related to net share settlements of restricted stock units	(1,103)	(3,556)
Excess tax benefits from share-based awards	132	747
Proceeds from the exercise of warrants	0	12
Dividends paid	(2,700)	(2,494)
Net cash used in financing activities	(3,671)	(5,291)
Effect of exchange rate changes on cash and cash equivalents	(244)	325
Net decrease in cash and cash equivalents	(797)	(29,137)
Cash and cash equivalents at beginning of period	88,323	107,015
Cash and cash equivalents at end of period	87,526	77,878
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net of refunds	718	4,915
Supplemental disclosure of non-cash flow information:
Change in unrealized gain (loss) on investments, net of tax	9	(1)
Transfers of equipment between inventory and property and equipment, net	1,537	303
Net change in capitalized share-based compensation	(77)	40
Common stock withheld for employee taxes in connection with share-based compensation	1,103	3,556
Repayment of notes payable by credits from municipal agency	$ 25	$ 25

DESCRIPTION OF BUSINESS AND SIG

DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Jun. 30, 2016
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES [Abstract]
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES	NOTE 1. DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Description of Business Abaxis, Inc. (“Abaxis,” the “Company,” “our,” “us,” or “we”), incorporated in California in 1989, develops, manufactures and markets portable blood analysis systems that are used in a broad range of medical specialties in human or veterinary patient care to provide clinicians with rapid blood constituent measurements. We conduct business worldwide and manage our business on the basis of the following two reportable segments: the medical market and the veterinary market. Basis of Presentation We have prepared the unaudited condensed consolidated financial statements included herein pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim periods. The unaudited condensed consolidated financial statements included herein reflect all normal recurring adjustments, which are, in the opinion of our management, necessary to state fairly the results of operations and financial position for the periods presented. The results for the three month period ended June 30, 2016 are not necessarily indicative of the results to be expected for the entire fiscal year ending March 31, 2017 or for any interim or future period. These unaudited condensed consolidated financial statements and related notes should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2016. Principles of Consolidation. Discontinued Operations. Reclassifications. Management Estimates. Significant Accounting Policies The significant accounting policies used in preparation of these condensed consolidated financial statements are disclosed in our Annual Report on Form 10-K for the fiscal year ended March 31, 2016 filed with the SEC on May 31, 2016, and have not changed significantly since such filing.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Jun. 30, 2016
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	NOTE 2. RECENT ACCOUNTING PRONOUNCEMENTS Revenue from Contracts with Customers: In May 2014, issued No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) ASC 606, “Revenue Recognition.” In May 2016, the FASB issued additional updates on ASU 2016-12, “Revenue from Contracts with Customers (Topic 606)” to clarify the implementation guidance on principal versus agent consideration. The guidance requires entities to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. In April 2016, amendments were issued to clarify the identification of performance obligations and the licensing implementation guidance in the initial standard. Amendments were issued in May 2016 related to its guidance on assessing collectibility, presentation of sales tax, noncash consideration, and completed contracts and contract modification at transition, which reduce the potential for diversity in practice, and the cost and complexity of application at transition and on an ongoing basis. The new guidance allows for the amendment to be applied either retrospectively to each prior reporting period presented or retrospectively as a cumulative-effect adjustment as of the date of adoption. ASU 2014-09 is Simplifying the Measurement of Inventory: ASU 2015-11 Balance Sheet Classification of Deferred Taxes: Recognition and Measurement of Financial Assets and Financial Liabilities: Leases: Employee Share-Based Payment Accounting:

ACQUISITIONS

ACQUISITIONS	3 Months Ended
	Jun. 30, 2016
ACQUISITIONS [Abstract]
ACQUISITIONS	NOTE 3 . ACQUISITIONS In November 2014, we entered into Share Purchase Agreements, through our wholly-owned subsidiary, pursuant to which, we acquired 100% of the outstanding stock of Quality Clinical Reagents Limited (“QCR”) and Trio Diagnostics (Ireland) Ltd (“Trio”), both based in the United Kingdom. QCR and Trio are distributors of laboratory instrumentation and consumables to the veterinary profession in the United Kingdom. Our primary reason for the acquisitions was to continue servicing and supplying Abaxis veterinary products to our customer base. The acquisition date fair value of the purchase consideration was $6.5 million, which included the following (in thousands): Cash $ 3,196 Installment payment obligations (1) 2,336 Settlement of preexisting business relationship at fair value 931 Total $ 6,463 (1) The installment payment obligation is denominated in British pounds (“GBP”) and the amount in the table above is based on the GBP to U.S. dollar exchange rate at the acquisition date. During the third quarter of fiscal 2016, we paid the first installment obligation of GBP 750,000, or $1.1 million, based on the GBP to U.S. dollar exchange rate on the date of payment. The second installment of GBP 750,000 will be placed in escrow as security for post-closing indemnification obligations of certain of the sellers. Based on the GBP to U.S. dollar exchange rate, as of June 30, 2016, $1.0 million was payable pursuant to these obligations. Any amounts remaining in escrow after three years following the closing date will be released to these sellers in calendar year 2017, net of any outstanding indemnification claims. The Share Purchase Agreements contain certain customary representations and warranties. Additionally, in connection with the acquisition, we recorded a settlement of the preexisting business relationship related to accounts receivable due from QCR and Trio that existed on the acquisition date. The book value of the accounts receivable approximated their fair value due to their short-term nature and no gain or loss was recorded. The following table summarizes the acquisition date fair value of net tangible assets acquired and liabilities assumed from QCR and Trio (in thousands): Fair Value Net tangible assets acquired $ 5,248 Intangible assets: Customer relationships 1,535 Tradename 16 Deferred tax liabilities (336 ) Total $ 6,463 The useful lives for the customer relationships and tradename intangible assets acquired in the acquisition are ten years and two years, respectively, and are amortized on a straight-line basis. We evaluated certain assets and liabilities related to the QCR and Trio acquisition during the measurement period, which terminated 12 months from the acquisition date. Changes to amounts recorded as assets or liabilities and corresponding adjustments to the purchase price allocation were insignificant. Abaxis UK, our wholly-owned subsidiary in the United Kingdom, was formed by our acquisition of Quality Clinical Reagents Limited and Trio Diagnostics (Ireland) Ltd in November 2014. Our condensed consolidated financial statements include the operating results of our business combination and the consolidation of Abaxis UK from the date of acquisition. The condensed consolidated financial statements include the operating results of our business combination and the consolidation of Abaxis UK from the date of acquisition.

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	3 Months Ended
	Jun. 30, 2016
DISCONTINUED OPERATIONS [Abstract]
DISCONTINUED OPERATIONS	NOTE 4. DISCONTINUED OPERATIONS On March 18, 2015, we entered into an asset purchase agreement (“APA”) with Antech pursuant to which we sold substantially all of the assets of our AVRL business. The sale transaction closed on March 31, 2015. The total purchase price under the APA was $21.0 million in cash. During the fourth quarter of fiscal 2015, we received $20.1 million in cash proceeds and we recorded a gain on sale of discontinued operations, net of tax of $7.7 million. During the fourth quarter of fiscal 2016, we recorded $0.6 million, net of tax, as a gain on sale of discontinued operations, upon meeting certain conditions by the first anniversary of the closing date in March 2016. The AVRL business represents a separate asset group and the sale of assets in this business qualifies as a discontinued operation and accordingly, the Company reported the results of operations of this business in discontinued operations within the condensed consolidated statements of operations for all periods presented as applicable. The results from discontinued operations were as follows (in thousands): Three Months Ended June 30, Discontinued operations: 2016 2015 Revenues $ 181 $ 255 Cost of revenues 181 471 Gross profit (loss) - (216 ) Sales and marketing expense - (98 ) Other income (expense), net - 118 Income (loss) before income tax benefit - - Income tax benefit (expense) - - Net income (loss) of discontinued operations $ - $ - The current and non-current assets and liabilities of discontinued operations were as follows (in thousands): June 30, 2016 March 31, 2016 Receivables, net $ 49 $ 949 Prepaid expenses and other current assets 12 12 Total current assets of discontinued operations $ 61 $ 961 Other current liabilities $ 57 $ 112 Total current liabilities of discontinued operations $ 57 $ 112

INVESTMENTS

INVESTMENTS	3 Months Ended
	Jun. 30, 2016
INVESTMENTS [Abstract]
INVESTMENTS	NOTE 5. INVESTMENTS Our investments are classified as either available-for-sale or held-to-maturity. The following table summarizes available-for-sale and held-to-maturity investments as of June 30, 2016 and March 31, 2016 (in thousands). Available-for-Sale Investments June 30, 2016 Amortized Cost Gross Unrealized Gain Gross Unrealized (Loss) Fair Value Corporate bonds $ 6,025 $ 5 $ (2 ) $ 6,028 Total available-for-sale investments $ 6,025 $ 5 $ (2 ) $ 6,028 Held-to-Maturity Investments June 30, 2016 Amortized Cost Gross Unrecognized Gain Gross Unrecognized (Loss) Fair Value Certificates of deposit $ 2,737 $ 2 $ - $ 2,739 Commercial paper 16,453 4 (3 ) 16,454 Corporate bonds 40,519 3 (85 ) 40,437 Total held-to-maturity investments $ 59,709 $ 9 $ (88 ) $ 59,630 Available-for-Sale Investments March 31, 2016 Amortized Cost Gross Unrealized Gain Gross Unrealized (Loss) Fair Value Corporate bonds $ 7,037 $ - $ (12 ) $ 7,025 Total available-for-sale investments $ 7,037 $ - $ (12 ) $ 7,025 Held-to-Maturity Investments March 31, 2016 Amortized Cost Gross Unrecognized Gain Gross Unrecognized (Loss) Fair Value Certificates of deposit $ 2,737 $ 3 $ - $ 2,740 Commercial paper 12,455 - (6 ) 12,449 Corporate bonds 41,715 - (117 ) 41,598 Total held-to-maturity investments $ 56,907 $ 3 $ (123 ) $ 56,787 The amortized cost of our held-to-maturity investments approximates their fair value. As of June 30, 2016 and March 31, 2016, we did not have other-than-temporary impairment in the fair value of any individual security classified as held-to-maturity or available-for-sale. As of June 30, 2016 and March 31, 2016, we had unrealized gain (loss) on available-for-sale investments, net of related income taxes, of $2,000 and $(7,000), respectively. During the three months ended June 30, 2016 and 2015, we did not have any redemption of investments in accordance with callable provisions. The following table summarizes the amortized cost and fair value of our investments, classified by stated maturity as of June 30, 2016 and March 31, 2016 (in thousands). June 30, 2016 June 30, 2016 Available-for-Sale Investments Held-to-Maturity Investments Amortized Cost Fair Value Amortized Cost Fair Value Due in less than one year $ 5,020 $ 5,019 $ 43,638 $ 43,623 Due in 1 to 4 years 1,005 1,009 16,071 16,007 Total investments $ 6,025 $ 6,028 $ 59,709 $ 59,630 March 31, 2016 March 31, 2016 Available-for-Sale Investments Held-to-Maturity Investments Amortized Cost Fair Value Amortized Cost Fair Value Due in less than one year $ 4,314 $ 4,311 $ 37,163 $ 37,128 Due in 1 to 4 years 2,723 2,714 19,744 19,659 Total investments $ 7,037 $ 7,025 $ 56,907 $ 56,787

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Jun. 30, 2016
FAIR VALUE MEASUREMENTS [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 6. FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. There is a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Directly or indirectly observable inputs as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument. Level 3: Unobservable inputs that are supported by little or no market data and require the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. The following table summarizes financial assets, measured at fair value on a recurring basis, by level of input within the fair value hierarchy as of June 30, 2016 and March 31, 2016 (in thousands): As of June 30, 2016 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 8,220 $ - $ - $ 8,220 Available-for-sale investments: Corporate bonds - 6,028 - 6,028 Total assets at fair value $ 8,220 $ 6,028 $ - $ 14,248 As of March 31, 2016 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 9,834 $ - $ - $ 9,834 Available-for-sale investments: Corporate bonds - 7,025 - 7,025 Total assets at fair value $ 9,834 $ 7,025 $ - $ 16,859 As of June 30, 2016 and March 31, 2016, our Level 1 financial assets consisted of money market mutual funds. Our cash equivalents are highly liquid instruments with original or remaining maturities of three months or less at the time of purchase that are readily convertible into cash. The fair value of our Level 1 financial assets is based on quoted market prices of the underlying security. As of June 30, 2016 and March 31, 2016, our Level 2 financial assets consisted primarily of corporate bonds. For our Level 2 financial assets, we review trading activity and pricing for these investments as of the measurement date. When sufficient quoted pricing for identical securities is not available, we use market pricing and other observable market inputs for similar securities obtained from third party data providers. These inputs represent quoted prices for similar assets in active markets or these inputs have been derived from observable market data. As of June 30, 2016 and March 31, 2016, we did not have any Level 1 and Level 2 financial liabilities or Level 3 financial assets or liabilities measured at fair value on a recurring basis. We did not have any transfers between Level 1 and Level 2 or transfers in or out of Level 3 during the three months ended June 30, 2016 and 2015.

INVENTORIES

INVENTORIES	3 Months Ended
	Jun. 30, 2016
INVENTORIES [Abstract]
INVENTORIES	NOTE 7. INVENTORIES Inventories include material, labor and manufacturing overhead, and are stated at the lower of cost (first-in, first-out method) or market. Components of inventories were as follows (in thousands): June 30, 2016 March 31, 2016 Raw materials $ 17,593 $ 15,737 Work-in-process 4,392 6,039 Finished goods 13,655 13,355 Inventories $ 35,640 $ 35,131

INVESTMENT IN UNCONSOLIDATED AF

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 VS pro 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.

WARRANTY RESERVES

WARRANTY RESERVES	3 Months Ended
	Jun. 30, 2016
WARRANTY RESERVES [Abstract]
WARRANTY RESERVES	NOTE 9. WARRANTY RESERVES We provide for the estimated future costs to be incurred under our standard warranty obligation on our instruments and reagent discs. Instruments. Reagent Discs. We evaluate our estimates for warranty reserves on an ongoing basis and believe we have the ability to reasonably estimate warranty costs. However, unforeseeable changes in factors may impact the estimate for warranty and such changes could cause a material change in our warranty reserve accrual in the period in which the change was identified. The change in our accrued warranty reserve during the three months ended June 30, 2016 and 2015 is summarized as follows (in thousands): Three Months Ended June 30, 2016 2015 Balance at beginning of period $ 3,208 $ 3,156 Provision for warranty expense 759 260 Warranty costs incurred (391 ) (324 ) Adjustment to pre-existing warranties - (223 ) Balance at end of period 3,576 2,869 Non-current portion of warranty reserve 2,232 1,547 Current portion of warranty reserve $ 1,344 $ 1,322

BORROWINGS

BORROWINGS	3 Months Ended
	Jun. 30, 2016
BORROWINGS [Abstract]
BORROWINGS	NOTE 10. BORROWINGS Notes Payable. In accordance with the terms of the loan agreement, the Agency will provide Abaxis with an annual credit that can be applied against the accrued interest and outstanding principal balance on a quarterly basis. The Agency determines the annual credit based on certain taxes paid by Abaxis to the City of Union City, California for a specified period, as defined in the loan agreement. We anticipate that our annual credits from the Agency will be used to fully repay our notes payable due to the Agency. We may carry forward unused quarterly credits to apply against our outstanding balance in a future period. Credits applied to repay our notes payable and accrued interest are recorded in “Interest and other income (expense), net” on the condensed consolidated statements of income.

OTHER CURRENT ACCRUED LIABILITI

OTHER CURRENT ACCRUED LIABILITIES	3 Months Ended
	Jun. 30, 2016
OTHER CURRENT ACCRUED LIABILITIES [Abstract]
OTHER CURRENT ACCRUED LIABILITIES	NOTE 11. OTHER CURRENT ACCRUED LIABILITIES Other current accrued liabilities consist of the following (in thousands): June 30, 2016 March 31, 2016 Accrued liabilities for customer sales incentive programs $ 4,859 $ 4,973 Installment payment obligation accrued related to acquisition 1,002 1,077 Other current accrued liabilities 3,432 3,343 Total other current accrued liabilities $ 9,293 $ 9,393 As of June 30, 2016, accrued liabilities for customer sales incentive programs consisted primarily of (i) a liability to distributors or end-users for cash rebates upon meeting certain requirements during a qualifying period and (ii) a liability to resellers for incentives that we estimate at the time of initial sale and adjust as earned by end-users during a specified promotional period. As of June 30, 2016, we recorded $1.0 million (or GBP 750,000), based on the GBP to U.S. dollar exchange rate on such date, in other current accrued liabilities in the condensed consolidated balance sheets, related to an installment payment obligation to acquire QCR and Trio in November 2014. Since the exchange rate can fluctuate in the future, the installment payment obligation related to acquisition in absolute dollars will change accordingly. See Note 3, “Acquisitions” for additional information on our acquisition of QCR and Trio. Other current accrued liabilities included notes payable and various expenses that we accrued for transaction taxes, royalties and professional costs.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Jun. 30, 2016
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 12. COMMITMENTS AND CONTINGENCIES Commitments Purchase Commitments. Litigation We are involved from time to time in various litigation matters in the normal course of business. There can be no assurance that existing or future legal proceedings arising in the ordinary course of business or otherwise will not have a material adverse effect on our business, consolidated financial position, results of operations or cash flows.

EQUITY COMPENSATION PLANS AND S

EQUITY COMPENSATION PLANS AND SHARE-BASED COMPENSATION	3 Months Ended
	Jun. 30, 2016
EQUITY COMPENSATION PLANS AND SHARE-BASED COMPENSATION [Abstract]
EQUITY COMPENSATION PLANS AND SHARE-BASED COMPENSATION	NOTE 13. EQUITY COMPENSATION PLANS AND SHARE-BASED COMPENSATION Equity Compensation Plans Our share-based compensation plans are described below. 2014 Equity Incentive Plan. The terms of the 2014 Plan provide for the grant of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, other stock awards and performance awards that may be settled in cash, stock or other property. At its October 22, 2014 effective date, the total number of shares of the Company’s common stock available for issuance under the 2014 Plan was 1,712,409 shares, which was equal to the sum of (i) the shares remaining available for issuance pursuant to the exercise of options or issuance or settlement of stock awards that had not previously been granted under the 2005 Plan, as of the effective date of the 2014 Plan and (ii) the Returning Shares (as defined below), as of the effective date of the 2014 Plan. The “Returning Shares” are shares subject to outstanding stock awards granted under the 2005 Plan (the “2005 Available Pool”), as of the effective date of the 2014 Plan, (i) expire or terminate for any reason prior to exercise or settlement, (ii) are forfeited, cancelled or otherwise returned to us because of the failure to meet a contingency or condition required for the vesting of such shares, or (iii) are reacquired or withheld (or not issued) by us to satisfy a tax withholding obligation in connection with a stock award or to satisfy the purchase price or exercise price of a stock award. 2005 Equity Incentive Plan. As of June 30, 2016, the 2014 Plan provided for the issuance of a maximum of 1,712,409 shares, of which 462,000 shares of common stock were available for future issuance under the 2014 Plan pursuant to stock awards that had not previously been granted. Shares that are canceled or forfeited from an award and shares withheld in satisfaction of tax withholding obligations are again available for issue under the 2014 Plan. We issue new shares of common stock from our authorized shares for share-based awards upon the exercise of stock options or vesting of restricted stock units. Share-Based Compensation Share-based compensation expense and related restricted stock unit award activity is presented on a consolidated basis, unless otherwise presented as continuing or discontinued operations. The following table summarizes total share-based compensation expense, net of tax, related to restricted stock units during the three months ended June 30, 2016 and 2015, which is included in our condensed consolidated statements of income (in thousands, except per share data): Three Months Ended June 30, 2016 2015 Cost of revenues (1) $ 479 $ 383 Research and development 594 575 Sales and marketing (2) 704 1,172 General and administrative 1,042 671 Share-based compensation expense before income taxes 2,819 2,801 Income tax benefit (984 ) (988 ) Total share-based compensation expense after income taxes $ 1,835 $ 1,813 Net impact of share-based compensation on: Basic net income per share $ 0.08 $ 0.08 Diluted net income per share $ 0.08 $ 0.08 (1) Cost of revenues reported in the table include share-based compensation expense from continuing and discontinued operations. During the three months ended June 30, 2016 and 2015, share-based compensation expense included in cost of revenues from continuing operations was $0.5 million and $0.3 million, respectively, and from discontinued operations was $0 and $0.1 million, respectively. (2) Sales and marketing expenses reported in the table include share-based compensation expense from continuing and discontinued operations. During the three months ended June 30, 2016 and 2015, share-based compensation expense included in sales and marketing expenses from continuing operations was $0.7 million and $1.0 million, respectively, and from discontinued operations was $0 and $0.2 million, respectively. Share-based compensation has been classified in the condensed consolidated statements of income or capitalized on the condensed consolidated balance sheets in the same manner as cash compensation paid to employees. Capitalized share-based compensation costs as of June 30, 2016 and March 31, 2016 were $0.1 million and $0.1 million, respectively, which were included in “Inventories” on our condensed consolidated balance sheets. Cash Flow Impact Cash flows resulting from excess tax benefits are classified as a part of cash flows from financing activities. Excess tax benefits are realized tax benefits from tax deductions for vested restricted stock units in excess of the deferred tax asset attributable to share-based compensation expense for such share-based awards. Excess tax benefits are considered realized when the tax deductions reduce taxes that otherwise would be payable. Excess tax benefits classified as a financing cash inflow for the three months ended June 30, 2016 and 2015 were $0.1 million and $0.7 million, respectively. Restricted Stock Units Since fiscal 2007, we have granted restricted stock unit awards to employees and directors as part of our share-based compensation program. Restricted stock unit awards to consultants were not significant. Awards of restricted stock units are issued at no cost to the recipient and may have time-based vesting criteria, or a combination of time-based and performance-based vesting criteria, as described below. From time to time, restricted stock unit awards granted to employees may be subject to accelerated vesting upon achieving certain performance-based milestones. The Compensation Committee of our Board of Directors (the “Compensation Committee”) in its discretion, may provide in the event of a change in control for the acceleration of vesting and/or settlement of the restricted stock unit held by a participant upon such conditions and to such extent as determined by the Compensation Committee. Our Board of Directors has adopted an executive change in control severance plan, which it may terminate or amend at any time, that provides that awards granted to executive officers will accelerate fully on a change of control. The vesting of non-employee director and officer awards granted under the 2014 Plan automatically will also accelerate in full upon a change in control. Beginning in fiscal 2015, the Compensation Committee discontinued the practice of granting such “single trigger” acceleration of vesting benefits to new executive officers pursuant to which an executive officer’s outstanding stock option(s) and other unvested equity-based instruments would accelerate in full upon the occurrence of a change of control. Starting in fiscal 2015, we grant “double-trigger” acceleration arrangements to new executive officers, which requires both the occurrence of a change of control and the termination by us (or our successor) for any reason other than cause, death or disability within 18 months following such change of control date, with the termination constituting a separation in service and subject to execution of a valid and effective release of claims against us, for the acceleration of vesting of the executive officer’s equity awards in full. Restricted Stock Unit Awards (Time Vesting) We grant restricted stock unit awards with only time-based vesting terms, which we refer to as RSUs. The RSUs entitle holders to receive shares of common stock at the end of a specified period of time. For RSUs, vesting is based on continuous employment or service of the holder. Upon vesting, the equivalent number of common shares are typically issued net of tax withholdings. If the service vesting conditions are not met, unvested RSUs will be forfeited. Generally, RSUs vest according to one of the following time-based vesting schedules: • RSU awards to employees: Four-year time-based vesting as follows: five percent vesting after the first year; additional ten percent after the second year; additional 15 percent after the third year; and the remaining 70 percent after the fourth year of continuous employment with the Company. • RSU awards to non-employee directors: 100 percent vesting after one year of continuous service to the Company. The fair value of RSUs used in our expense recognition method is measured based on the number of shares granted and the closing market price of our common stock on the date of grant. Such value is recognized as an expense over the corresponding requisite service period. The share-based compensation expense is reduced for an estimate of the RSU awards that are expected to be forfeited. The forfeiture estimate is based on historical data and other factors, and compensation expense is adjusted for actual results. As of June 30, 2016, the total unrecognized compensation expense related to RSU awards granted amounted to $19.4 million, which is expected to be recognized over a weighted average service period of 2.2 years. Restricted Stock Unit Awards (Performance Vesting) We grant restricted stock unit awards subject to performance criteria, which we refer to as PSUs to our executive officers and to certain employees. The PSUs vest only if both of the following criteria are satisfied: (1) our consolidated income from operations during the fiscal year in which the grant occurred, as certified by the Compensation Committee, is in excess of the applicable target amount described below; and (2) the recipient remains in the continuous service of the Company until the applicable vesting date set forth as follows for PSUs granted in fiscal 2015, 2016 and 2017 (other than the PSUs granted to our Chief Executive Officer, Mr. Clinton Severson in fiscal 2017). • 25% of the shares subject to an award vest in full upon achieving 90% of the consolidated income from operations target described above and continuous service until the third anniversary of the date of grant; • 25% of the shares subject to an award vest in full upon achieving 90% of the consolidated income from operations target described above and continuous service until the fourth anniversary of the date of grant; • 25% of the shares subject to an award vest in full upon achieving 100% of the consolidated income from operations target described above and continuous service until the third anniversary of the date of grant; and • 25% of the shares subject to an award vest in full upon achieving 100% of the consolidated income from operations target described above and continuous service until the fourth anniversary of the date of grant. The PSUs that we granted to Mr. Severson in fiscal 2017 vest as follows: • approximately 18% of the shares subject to an award vest in full upon achieving 90% of the consolidated income from operations target described above and continuous service until the third anniversary of the date of grant; • approximately 18% of the shares subject to an award vest in full upon achieving 90% of the consolidated income from operations target described above and continuous service until the fourth anniversary of the date of grant; • approximately 32% of the shares subject to an award vest in full upon achieving 100% of the consolidated income from operations target described above and continuous service until the third anniversary of the date of grant; and • approximately 32% of the shares subject to an award vest in full upon achieving 100% of the consolidated income from operations target described above and continuous service until the fourth anniversary of the date of grant. We recognize any related share-based compensation expense ratably over the service period based on the most probable outcome of the performance condition. The fair value of PSUs used in our expense recognition method is measured based on the number of shares granted, the closing market price of our common stock on the date of grant and an estimate of the probability of the achievement of the performance goals. The amount of share-based compensation expense recognized in any one period can vary based on the attainment or expected attainment of the performance goals. If such performance goals are not ultimately met, no compensation expense is recognized and any previously recognized compensation expense is reversed. The share-based compensation expense is reduced for an estimate of the PSUs that are expected to be forfeited. The forfeiture estimate is based on historical data and other factors, and compensation expense is adjusted for actual results. If the service vesting conditions are not met, unvested PSUs will be forfeited. Upon vesting on the third and fourth anniversary date of grant of the PSUs, the equivalent number of common shares are typically issued net of tax withholdings. For the PSUs granted in fiscal 2015 and 2016, we have determined that the performance targets have been met and accordingly, we recorded share-based compensation expense ratably over the vesting terms of the PSUs during the three months ended June 30, 2016. In April 2016, the Compensation Committee approved the grant of PSUs for 152,000 shares of common stock to our executive officers and to certain of our employees (FY2017 PSUs). During the three months ended June 30, 2016, we recorded share-based compensation expense related to the portion of the FY2017 PSUs, as we determined that it was probable that the performance targets would be met. We will assess the probability of the performance targets at the end of each quarter. As of June 30, 2016, the total unrecognized compensation expense related to PSUs awards granted amounted to $11.6 million, which is expected to be recognized over a weighted average service period of 2.4 years. Restricted Stock Unit Activity The following table summarizes restricted stock unit activity for the three months ended June 30, 2016 . Time-Based Restricted Stock Units Performance-Based Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value (1) Number of Shares Weighted Average Grant Date Fair Value (1) Nonvested at March 31, 2016 524,000 $ 45.37 311,000 $ 48.29 Granted 113,000 44.54 152,000 44.54 Vested (2) (93,000 ) 42.84 (24,000 ) 40.82 Canceled and forfeited (24,000 ) 46.48 - - Nonvested at June 30, 2016 520,000 $ 45.59 439,000 $ 47.40 (1) The weighted average grant date fair value of restricted stock units is based on the number of shares and the closing market price of our common stock on the date of grant. (2) The number of restricted stock units vested includes shares that we withheld on behalf of our employees to satisfy the statutory tax withholding requirements. Total intrinsic value of restricted stock units vested during the three months ended June 30, 2016 and 2015 was $5.2 million and $10.6 million, respectively. The total grant date fair value of restricted stock units vested during the three months ended June 30, 2016 and 2015 was $5.0 million and $6.0 million, respectively.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	3 Months Ended
	Jun. 30, 2016
SHAREHOLDERS' EQUITY [Abstract]
SHAREHOLDERS' EQUITY	NOTE 14. SHAREHOLDERS' EQUITY Share Repurchase Program Between August 2011 and July 2013, our Board of Directors authorized the repurchase of up to a total of $67.3 million of our common stock. As of June 30, 2016, $24.0 million was available to purchase common stock under our share repurchase program. Since the share repurchase program began, through June 30, 2016, we have repurchased 1.6 million shares of our common stock at a total cost of $43.3 million, including commission expense. During the three months ended June 30, 2016 and 2015, we did not repurchase any shares of our common stock. The repurchases are made from time to time on the open market at prevailing market prices or in negotiated transactions off the market. Repurchased shares are retired. See Note 19, “Subsequent Events,” for information regarding our share repurchase program. Dividend Payments During the three months ended June 30, 2016 and 2015, our total quarterly dividend payout was $2.7 million and $2.5 million, respectively. Our dividend payout was made from retained earnings. See Note 19, “Subsequent Events,” for information regarding cash dividends declared by our Board of Directors after June 30, 2016. Common Stock Warrants During the three months ended June 30, 2016 and 2015 we issued 0 and 4,000, respectively, shares of common stock upon the exercise of vested warrants at an exercise price of $3.00 per share. As of June 30, 2016 and March 31, 2016, there were no warrants outstanding.

NET INCOME PER SHARE

NET INCOME PER SHARE	3 Months Ended
	Jun. 30, 2016
NET INCOME PER SHARE [Abstract]
NET INCOME PER SHARE	NOTE 15. NET INCOME PER SHARE Basic net income per share is computed by dividing the net income attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income attributable to common shareholders by the weighted average number of common shares that would have been outstanding during the period assuming the issuance of common shares for all potential dilutive common shares outstanding using the treasury stock method. Dilutive potential common shares outstanding include outstanding restricted stock units and warrants. The computations for basic and diluted net income per share are as follows (in thousands, except share and per share data): Three Months Ended June 30, 2016 2015 Numerator: Net income $ 6,890 $ 6,995 Denominator: Weighted average common shares outstanding - basic Weighted average effect of dilutive securities: 22,465,000 22,624,000 Restricted stock units 220,000 254,000 Warrants - 1,000 Weighted average common shares outstanding - diluted 22,685,000 22,879,000 Net income per share: Basic net income per share $ 0.31 $ 0.31 Diluted net income per share $ 0.30 $ 0.31 For our PSUs, if the performance criteria are achieved during the period, these awards will be considered outstanding for the purpose of computing diluted net income per share if the effect is dilutive. Because the performance criteria for FY2017 PSUs were not achieved during the three months ended June 30, 2016, these awards were not included in the diluted net income per share calculation. Restricted stock units for 161,000 and 0 shares during the three months ended June 30, 2016 and 2015, respectively, were outstanding but not included in the computation of diluted net income per share because the effect would be antidilutive. Warrants are excluded from the computation of diluted weighted average shares outstanding if the exercise price of the warrants is greater than the average market price of our common stock during the period because the inclusion of these warrants would be antidilutive to net income per share. There were no warrants excluded from the computation of diluted weighted average shares outstanding during the three months ended June 30, 2016 and 2015.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Jun. 30, 2016
INCOME TAXES [Abstract]
INCOME TAXES	NOTE 16. INCOME TAXES We did not have any unrecognized tax benefits as of June 30, 2016 and March 31, 2016. During the three months ended June 30, 2016 and 2015, we did not recognize any interest or penalties related to unrecognized tax benefits.

SEGMENT REPORTING INFORMATION

SEGMENT REPORTING INFORMATION	3 Months Ended
	Jun. 30, 2016
SEGMENT REPORTING INFORMATION [Abstract]
SEGMENT REPORTING INFORMATION	NOTE 17. SEGMENT REPORTING INFORMATION Abaxis develops, manufactures and markets portable blood analysis systems for use in human or veterinary patient care setting to provide clinicians with rapid blood constituent measurements. We identify our reportable segments as those customer groups that represent more than 10% of our combined revenue or gross profit or loss of all reported operating segments. We manage our business on the basis of the following two reportable segments: (i) the medical market and (ii) the veterinary market, which are based on the products sold by market and customer group. For the products that we manufacture and sell, each reportable segment has similar manufacturing processes, technology and shared infrastructures. The accounting policies for segment reporting are the same as for the Company as a whole. We do not segregate assets by segments since our chief operating decision maker, or decision making group, does not use assets as a basis to evaluate a segment’s performance. Medical Market In the medical market reportable segment, we serve a worldwide customer group consisting of physicians’ office practices across multiple specialties, urgent care, outpatient and walk-in clinics (free-standing or hospital-connected), health screening operations, home care providers (national, regional or local), nursing homes, ambulance companies, oncology treatment clinics, dialysis centers, pharmacies, hospital laboratories, military installations (ships, field hospitals and mobile care units), pharmaceutical clinical trials and cruise ship lines. The products manufactured and sold in this segment primarily consist of Piccolo chemistry analyzers and medical reagent discs. Veterinary Market In the veterinary market reportable segment, we serve a worldwide customer group consisting of companion animal hospitals, animal clinics with mixed practices of small animals, birds and reptiles, equine and bovine practitioners, veterinary emergency clinics, veterinary referral hospitals, universities, government, pharmaceutical companies, biotechnology companies and private research laboratories. Our veterinary market product offerings include VetScan chemistry analyzers and veterinary reagent discs, VetScan hematology instruments and related reagent kits, VetScan VS pro In March 2015, we entered into an asset purchase agreement with Antech pursuant to which we sold substantially all of the assets of our AVRL business to Antech, see Note 4, “Discontinued Operations.” We have reclassified the assets, liabilities, results of operations and the gain on sale of AVRL in our condensed consolidated balance sheets and statements of income for all periods presented to reflect them as discontinued operations. Previously reported financial information have been revised to reflect the reclassification of AVRL within our veterinary market segment as a discontinued operation. Total Revenues, Cost of Revenues and Gross Profit by Segment The table below summarizes revenues, cost of revenues and gross profit from our two operating segments and from certain unallocated items and represents our results from continuing operations for the three months ended June 30, 2016 and 2015 (in thousands). Three Months Ended June 30, 2016 2015 Revenues: Medical Market $ 9,097 $ 8,684 Veterinary Market 47,731 43,589 Other (1) 868 817 Total revenues 57,696 53,090 Cost of revenues: Medical Market 4,756 4,478 Veterinary Market 20,858 19,187 Other (1) 81 33 Total cost of revenues 25,695 23,698 Gross profit: Medical Market 4,341 4,206 Veterinary Market 26,873 24,402 Other (1) 787 784 Gross profit $ 32,001 $ 29,392 (1) Represents unallocated items, not specifically identified to any particular business segment.

REVENUES BY PRODUCT CATEGORY AN

REVENUES BY PRODUCT CATEGORY AND GEOGRAPHIC REGION AND SIGNIFICANT CONCENTRATIONS	3 Months Ended
	Jun. 30, 2016
REVENUES BY PRODUCT CATEGORY AND GEOGRAPHIC REGION AND SIGNIFICANT CONCENTRATIONS [Abstract]
REVENUES BY PRODUCT CATEGORY AND GEOGRAPHIC REGION AND SIGNIFICANT CONCENTRATIONS	NOTE 18. REVENUES BY PRODUCT CATEGORY AND GEOGRAPHIC REGION AND SIGNIFICANT CONCENTRATIONS The following is a summary of our revenues by product category and represents our results from continuing operations (in thousands): Three Months Ended June 30, Revenues by Product Category 2016 2015 Instruments (1) $ 10,099 $ 8,712 Consumables (2) 44,689 41,797 Other products (3) 2,908 2,544 Product sales, net 57,696 53,053 Development and licensing revenues - 37 Total revenues $ 57,696 $ 53,090 (1) Instruments include chemistry analyzers, hematology instruments, VS pro (2) Consumables include reagent discs, hematology reagent kits, VS pro (3) Other products include products using the Orbos process and extended maintenance agreements. The following is a summary of our revenues by geographic region based on customer location and represents our results from continuing operations (in thousands): Three Months Ended June 30, Revenues by Geographic Region 2016 2015 North America $ 46,773 $ 42,311 Europe 8,358 7,723 Asia Pacific and rest of the world 2,565 3,056 Total revenues $ 57,696 $ 53,090 Significant Concentrations During the three months ended June 30, 2016, four distributors, MWI Veterinary Supply, Inc., Henry Schein, Inc., Patterson Companies, Inc., and Abbott Point of Care, Inc. accounted for 20%, 13%, 12% and 10%, respectively, of our total worldwide revenues. During the three months ended June 30, 2015, two distributors, MWI Veterinary Supply, Inc. and Henry Schein, Inc. accounted for 19% and 15%, respectively, of our total worldwide revenues. Starting in the second quarter of fiscal 2016, our revenues from Patterson Companies, Inc. include both Patterson’s veterinary business and Animal Health International, Inc., as a result of Patterson’s acquisition of Animal Health International, Inc. Starting in fiscal 2016, our revenues from Henry Schein, Inc., include both Henry Schein Animal Health and scil animal care company GmbH, as a result of Henry Schein Inc.’s acquisition of scil animal care company GmbH in Europe. Concentration of credit risk with respect to accounts receivable is primarily limited to certain distributors to whom we make significant sales. Three distributors accounted for 29%, 12% and 11%, respectively, of our total receivable balance as of June 30, 2016. Two distributors accounted for 25% and 14%, respectively, of our total receivable balance as of March 31, 2016.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Jun. 30, 2016
SUBSEQUENT EVENTS [Abstract]
SUBSEQUENT EVENTS	NOTE 19. SUBSEQUENT EVENTS In July 2016, our Board of Directors declared a cash dividend of $0.12 per share on our outstanding common stock to be paid on September 15, 2016 to all shareholders of record as of the close of business on September 1, 2016. In July 2016, our Board of Directors approved a $30.0 million increase to our existing share repurchase program, which when added to the $24.0 million remaining under our previously-authorized share repurchase program provides for a total of $54.0 million authorized for purchase as of such date. On August 8, 2016, Zoetis Inc. acquired SMB. The total purchase proceeds for our 15% investment in SMB is approximately $9.7 million in cash, subject to a holdback for certain adjustments that may occur. The holdback payment is expected to be released 18 months following the closing date.

DESCRIPTION OF BUSINESS AND S26

DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Jun. 30, 2016
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Basis of Presentation	Basis of Presentation We have prepared the unaudited condensed consolidated financial statements included herein pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim periods. The unaudited condensed consolidated financial statements included herein reflect all normal recurring adjustments, which are, in the opinion of our management, necessary to state fairly the results of operations and financial position for the periods presented. The results for the three month period ended June 30, 2016 are not necessarily indicative of the results to be expected for the entire fiscal year ending March 31, 2017 or for any interim or future period. These unaudited condensed consolidated financial statements and related notes should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2016.
Principles of Consolidation	Principles of Consolidation.
Discontinued Operations	Discontinued Operations.
Reclassifications	Reclassifications.
Management Estimates	Management Estimates.

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	3 Months Ended
	Jun. 30, 2016
ACQUISITIONS [Abstract]
Schedule of Acquisition Date Fair Value of the Purchase Consideration	The acquisition date fair value of the purchase consideration was $6.5 million, which included the following (in thousands): Cash $ 3,196 Installment payment obligations (1) 2,336 Settlement of preexisting business relationship at fair value 931 Total $ 6,463 (1) The installment payment obligation is denominated in British pounds (“GBP”) and the amount in the table above is based on the GBP to U.S. dollar exchange rate at the acquisition date.
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following table summarizes the acquisition date fair value of net tangible assets acquired and liabilities assumed from QCR and Trio (in thousands): Fair Value Net tangible assets acquired $ 5,248 Intangible assets: Customer relationships 1,535 Tradename 16 Deferred tax liabilities (336 ) Total $ 6,463

DISCONTINUED OPERATIONS (Tables

DISCONTINUED OPERATIONS (Tables)	3 Months Ended
	Jun. 30, 2016
DISCONTINUED OPERATIONS [Abstract]
Results from Discontinued Operations	The results from discontinued operations were as follows (in thousands): Three Months Ended June 30, Discontinued operations: 2016 2015 Revenues $ 181 $ 255 Cost of revenues 181 471 Gross profit (loss) - (216 ) Sales and marketing expense - (98 ) Other income (expense), net - 118 Income (loss) before income tax benefit - - Income tax benefit (expense) - - Net income (loss) of discontinued operations $ - $ - The current and non-current assets and liabilities of discontinued operations were as follows (in thousands): June 30, 2016 March 31, 2016 Receivables, net $ 49 $ 949 Prepaid expenses and other current assets 12 12 Total current assets of discontinued operations $ 61 $ 961 Other current liabilities $ 57 $ 112 Total current liabilities of discontinued operations $ 57 $ 112

INVESTMENTS (Tables)

INVESTMENTS (Tables)	3 Months Ended
	Jun. 30, 2016
INVESTMENTS [Abstract]
Available-for-sale and Held-to-maturity Investments	The following table summarizes available-for-sale and held-to-maturity investments as of June 30, 2016 and March 31, 2016 (in thousands). Available-for-Sale Investments June 30, 2016 Amortized Cost Gross Unrealized Gain Gross Unrealized (Loss) Fair Value Corporate bonds $ 6,025 $ 5 $ (2 ) $ 6,028 Total available-for-sale investments $ 6,025 $ 5 $ (2 ) $ 6,028 Held-to-Maturity Investments June 30, 2016 Amortized Cost Gross Unrecognized Gain Gross Unrecognized (Loss) Fair Value Certificates of deposit $ 2,737 $ 2 $ - $ 2,739 Commercial paper 16,453 4 (3 ) 16,454 Corporate bonds 40,519 3 (85 ) 40,437 Total held-to-maturity investments $ 59,709 $ 9 $ (88 ) $ 59,630 Available-for-Sale Investments March 31, 2016 Amortized Cost Gross Unrealized Gain Gross Unrealized (Loss) Fair Value Corporate bonds $ 7,037 $ - $ (12 ) $ 7,025 Total available-for-sale investments $ 7,037 $ - $ (12 ) $ 7,025 Held-to-Maturity Investments March 31, 2016 Amortized Cost Gross Unrecognized Gain Gross Unrecognized (Loss) Fair Value Certificates of deposit $ 2,737 $ 3 $ - $ 2,740 Commercial paper 12,455 - (6 ) 12,449 Corporate bonds 41,715 - (117 ) 41,598 Total held-to-maturity investments $ 56,907 $ 3 $ (123 ) $ 56,787
Amortized Cost and Fair Value of Investments, Classified by Stated Maturity	The following table summarizes the amortized cost and fair value of our investments, classified by stated maturity as of June 30, 2016 and March 31, 2016 (in thousands). June 30, 2016 June 30, 2016 Available-for-Sale Investments Held-to-Maturity Investments Amortized Cost Fair Value Amortized Cost Fair Value Due in less than one year $ 5,020 $ 5,019 $ 43,638 $ 43,623 Due in 1 to 4 years 1,005 1,009 16,071 16,007 Total investments $ 6,025 $ 6,028 $ 59,709 $ 59,630 March 31, 2016 March 31, 2016 Available-for-Sale Investments Held-to-Maturity Investments Amortized Cost Fair Value Amortized Cost Fair Value Due in less than one year $ 4,314 $ 4,311 $ 37,163 $ 37,128 Due in 1 to 4 years 2,723 2,714 19,744 19,659 Total investments $ 7,037 $ 7,025 $ 56,907 $ 56,787

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Jun. 30, 2016
FAIR VALUE MEASUREMENTS [Abstract]
Financial Assets Measured at Fair Value on a Recurring Basis	The following table summarizes financial assets, measured at fair value on a recurring basis, by level of input within the fair value hierarchy as of June 30, 2016 and March 31, 2016 (in thousands): As of June 30, 2016 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 8,220 $ - $ - $ 8,220 Available-for-sale investments: Corporate bonds - 6,028 - 6,028 Total assets at fair value $ 8,220 $ 6,028 $ - $ 14,248 As of March 31, 2016 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 9,834 $ - $ - $ 9,834 Available-for-sale investments: Corporate bonds - 7,025 - 7,025 Total assets at fair value $ 9,834 $ 7,025 $ - $ 16,859

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Jun. 30, 2016
INVENTORIES [Abstract]
Components of Inventories	Components of inventories were as follows (in thousands): June 30, 2016 March 31, 2016 Raw materials $ 17,593 $ 15,737 Work-in-process 4,392 6,039 Finished goods 13,655 13,355 Inventories $ 35,640 $ 35,131

WARRANTY RESERVES (Tables)

WARRANTY RESERVES (Tables)	3 Months Ended
	Jun. 30, 2016
WARRANTY RESERVES [Abstract]
Change in Accrued Warranty Reserve	The change in our accrued warranty reserve during the three months ended June 30, 2016 and 2015 is summarized as follows (in thousands): Three Months Ended June 30, 2016 2015 Balance at beginning of period $ 3,208 $ 3,156 Provision for warranty expense 759 260 Warranty costs incurred (391 ) (324 ) Adjustment to pre-existing warranties - (223 ) Balance at end of period 3,576 2,869 Non-current portion of warranty reserve 2,232 1,547 Current portion of warranty reserve $ 1,344 $ 1,322

OTHER CURRENT ACCRUED LIABILI33

OTHER CURRENT ACCRUED LIABILITIES (Tables)	3 Months Ended
	Jun. 30, 2016
OTHER CURRENT ACCRUED LIABILITIES [Abstract]
Schedule of Other Current Accrued Liabilities	June 30, 2016 March 31, 2016 Accrued liabilities for customer sales incentive programs $ 4,859 $ 4,973 Installment payment obligation accrued related to acquisition 1,002 1,077 Other current accrued liabilities 3,432 3,343 Total other current accrued liabilities $ 9,293 $ 9,393

EQUITY COMPENSATION PLANS AND34

EQUITY COMPENSATION PLANS AND SHARE-BASED COMPENSATION (Tables)	3 Months Ended
	Jun. 30, 2016
EQUITY COMPENSATION PLANS AND SHARE-BASED COMPENSATION [Abstract]
Total Share-based Compensation Expense, Net of Tax	The following table summarizes total share-based compensation expense, net of tax, related to restricted stock units during the three months ended June 30, 2016 and 2015, which is included in our condensed consolidated statements of income (in thousands, except per share data): Three Months Ended June 30, 2016 2015 Cost of revenues (1) $ 479 $ 383 Research and development 594 575 Sales and marketing (2) 704 1,172 General and administrative 1,042 671 Share-based compensation expense before income taxes 2,819 2,801 Income tax benefit (984 ) (988 ) Total share-based compensation expense after income taxes $ 1,835 $ 1,813 Net impact of share-based compensation on: Basic net income per share $ 0.08 $ 0.08 Diluted net income per share $ 0.08 $ 0.08 (1) Cost of revenues reported in the table include share-based compensation expense from continuing and discontinued operations. During the three months ended June 30, 2016 and 2015, share-based compensation expense included in cost of revenues from continuing operations was $0.5 million and $0.3 million, respectively, and from discontinued operations was $0 and $0.1 million, respectively. (2) Sales and marketing expenses reported in the table include share-based compensation expense from continuing and discontinued operations. During the three months ended June 30, 2016 and 2015, share-based compensation expense included in sales and marketing expenses from continuing operations was $0.7 million and $1.0 million, respectively, and from discontinued operations was $0 and $0.2 million, respectively.
Restricted Stock Unit Activity	The following table summarizes restricted stock unit activity for the three months ended June 30, 2016 . Time-Based Restricted Stock Units Performance-Based Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value (1) Number of Shares Weighted Average Grant Date Fair Value (1) Nonvested at March 31, 2016 524,000 $ 45.37 311,000 $ 48.29 Granted 113,000 44.54 152,000 44.54 Vested (2) (93,000 ) 42.84 (24,000 ) 40.82 Canceled and forfeited (24,000 ) 46.48 - - Nonvested at June 30, 2016 520,000 $ 45.59 439,000 $ 47.40 (1) The weighted average grant date fair value of restricted stock units is based on the number of shares and the closing market price of our common stock on the date of grant. (2) The number of restricted stock units vested includes shares that we withheld on behalf of our employees to satisfy the statutory tax withholding requirements.

NET INCOME PER SHARE (Tables)

NET INCOME PER SHARE (Tables)	3 Months Ended
	Jun. 30, 2016
NET INCOME PER SHARE [Abstract]
Computations for Basic and Diluted Net Income per Share	The computations for basic and diluted net income per share are as follows (in thousands, except share and per share data): Three Months Ended June 30, 2016 2015 Numerator: Net income $ 6,890 $ 6,995 Denominator: Weighted average common shares outstanding - basic Weighted average effect of dilutive securities: 22,465,000 22,624,000 Restricted stock units 220,000 254,000 Warrants - 1,000 Weighted average common shares outstanding - diluted 22,685,000 22,879,000 Net income per share: Basic net income per share $ 0.31 $ 0.31 Diluted net income per share $ 0.30 $ 0.31

SEGMENT REPORTING INFORMATION (

SEGMENT REPORTING INFORMATION (Tables)	3 Months Ended
	Jun. 30, 2016
SEGMENT REPORTING INFORMATION [Abstract]
Revenues, Cost of Revenues and Gross Profit, by Segment	The table below summarizes revenues, cost of revenues and gross profit from our two operating segments and from certain unallocated items and represents our results from continuing operations for the three months ended June 30, 2016 and 2015 (in thousands). Three Months Ended June 30, 2016 2015 Revenues: Medical Market $ 9,097 $ 8,684 Veterinary Market 47,731 43,589 Other (1) 868 817 Total revenues 57,696 53,090 Cost of revenues: Medical Market 4,756 4,478 Veterinary Market 20,858 19,187 Other (1) 81 33 Total cost of revenues 25,695 23,698 Gross profit: Medical Market 4,341 4,206 Veterinary Market 26,873 24,402 Other (1) 787 784 Gross profit $ 32,001 $ 29,392 (1) Represents unallocated items, not specifically identified to any particular business segment.

REVENUES BY PRODUCT CATEGORY 37

REVENUES BY PRODUCT CATEGORY AND GEOGRAPHIC REGION AND SIGNIFICANT CONCENTRATIONS (Tables)	3 Months Ended
	Jun. 30, 2016
REVENUES BY PRODUCT CATEGORY AND GEOGRAPHIC REGION AND SIGNIFICANT CONCENTRATIONS [Abstract]
Summary of Revenues by Product Category	The following is a summary of our revenues by product category and represents our results from continuing operations (in thousands): Three Months Ended June 30, Revenues by Product Category 2016 2015 Instruments (1) $ 10,099 $ 8,712 Consumables (2) 44,689 41,797 Other products (3) 2,908 2,544 Product sales, net 57,696 53,053 Development and licensing revenues - 37 Total revenues $ 57,696 $ 53,090 (1) Instruments include chemistry analyzers, hematology instruments, VS pro (2) Consumables include reagent discs, hematology reagent kits, VS pro (3) Other products include products using the Orbos process and extended maintenance agreements.
Summary of Revenues by Geographic Region	The following is a summary of our revenues by geographic region based on customer location and represents our results from continuing operations (in thousands): Three Months Ended June 30, Revenues by Geographic Region 2016 2015 North America $ 46,773 $ 42,311 Europe 8,358 7,723 Asia Pacific and rest of the world 2,565 3,056 Total revenues $ 57,696 $ 53,090

DESCRIPTION OF BUSINESS AND S38

DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended
	Jun. 30, 2016Segment
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Number of reportable segments	2

ACQUISITIONS (Details)

ACQUISITIONS (Details) - QCR AND Trio [Member] £ in Thousands, $ in Thousands		1 Months Ended	3 Months Ended
		Nov. 30, 2014USD ($)	Jun. 30, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2015GBP (£)	Jun. 30, 2016GBP (£)
Business Acquisition [Line Items]
Outstanding stock acquired		100.00%
Business Combination, Consideration Transferred [Abstract]
Cash		$ 3,196
Installment payment obligation accrued related to acquisition	[1]	2,336
Settlement of preexisting business relationship at fair value		931
Total		6,463
First installment obligation paid				$ 1,100	£ 750
Second installment payment obligation payable | £						£ 750
Total installment obligation based on period end exchange rate			$ 1,000
Escrow amount remaining period			3 years
Acquisition of assets and liabilities assumed [Abstract]
Net tangible assets acquired		5,248
Deferred tax liabilities		(336)
Total		6,463
Customer Relationships [Member]
Acquisition of assets and liabilities assumed [Abstract]
Intangible assets		$ 1,535
Intangible asset useful life		10 years
Tradename [Member]
Acquisition of assets and liabilities assumed [Abstract]
Intangible assets		$ 16
Intangible asset useful life		2 years
[1]	The installment payment obligation is denominated in British pounds ("GBP") and the amount in the table above is based on the GBP to U.S. dollar exchange rate at the acquisition date.

DISCONTINUED OPERATIONS (Detail

DISCONTINUED OPERATIONS (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2015	Mar. 31, 2015
Results from discontinued operations [Abstract]
Revenues	$ 181		$ 255
Cost of revenues	181		471
Gross profit (loss)	0		(216)
Sales and marketing expense	0		(98)
Other income (expense), net	0		118
Income (loss) before income tax benefit	0		0
Income tax benefit (expense)	0		0
Net income (loss) of discontinued operations	0		$ 0
Current and non-current assets and liabilities of discontinued operations [Abstract]
Receivables, net	49	$ 949
Prepaid expenses and other current assets	12	12
Total current assets of discontinued operations	61	961
Other current liabilities	57	112
Total current liabilities of discontinued operations	$ 57	112
Antech Diagnostics Inc. [Member]
Summary of gain on sale of discontinued operation [Abstract]
Purchase price				$ 21,000
Cash consideration received				20,100
Gain on sale of discontinued operations, net of tax		$ 600		$ 7,700

INVESTMENTS (Details)

INVESTMENTS (Details) - USD ($)	Jun. 30, 2016	Mar. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 6,025,000	$ 7,037,000
Gross Unrealized Gain	5,000	0
Gross Unrealized (Loss)	(2,000)	(12,000)
Fair Value	6,028,000	7,025,000
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	59,709,000	56,907,000
Gross Unrecognized Gain	9,000	3,000
Gross Unrecognized (Loss)	(88,000)	(123,000)
Fair Value, Total investments	59,630,000	56,787,000
Available-for-sale Securities and Held-to-maturity Securities [Abstract]
Unrealized gain (loss) on available-for-sale investments, net of related income taxes	2,000	(7,000)
Available-for-sale investments by stated maturity, amortized cost [Abstract]
Amortized Cost, Due in less than one year	5,020,000	4,314,000
Amortized Cost, Due in 1 to 4 years	1,005,000	2,723,000
Amortized Cost, Total investments	6,025,000	7,037,000
Available-for-sale investments by stated maturity, fair value [Abstract]
Fair Value, Due in less than one year	5,019,000	4,311,000
Fair Value, Due in 1 to 4 years	1,009,000	2,714,000
Fair Value, Total Investments	6,028,000	7,025,000
Held-to-maturity investments by stated maturity, amortized cost [Abstract]
Amortized Cost, Due in less than one year	43,638,000	37,163,000
Amortized Cost, Due in 1 to 4 years	16,071,000	19,744,000
Amortized Cost, Total investments	59,709,000	56,907,000
Held-to-maturity investments by stated maturity, fair value [Abstract]
Fair Value, Due in less than one year	43,623,000	37,128,000
Fair Value, Due in 1 to 4 years	16,007,000	19,659,000
Fair Value, Total investments	59,630,000	56,787,000
Corporate Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	6,025,000	7,037,000
Gross Unrealized Gain	5,000	0
Gross Unrealized (Loss)	(2,000)	(12,000)
Fair Value	6,028,000	7,025,000
Certificates of Deposit [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	2,737,000	2,737,000
Gross Unrecognized Gain	2,000	3,000
Gross Unrecognized (Loss)	0	0
Fair Value, Total investments	2,739,000	2,740,000
Held-to-maturity investments by stated maturity, fair value [Abstract]
Fair Value, Total investments	2,739,000	2,740,000
Commercial Paper [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	16,453,000	12,455,000
Gross Unrecognized Gain	4,000	0
Gross Unrecognized (Loss)	(3,000)	(6,000)
Fair Value, Total investments	16,454,000	12,449,000
Held-to-maturity investments by stated maturity, fair value [Abstract]
Fair Value, Total investments	16,454,000	12,449,000
Corporate Bonds [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	40,519,000	41,715,000
Gross Unrecognized Gain	3,000	0
Gross Unrecognized (Loss)	(85,000)	(117,000)
Fair Value, Total investments	40,437,000	41,598,000
Held-to-maturity investments by stated maturity, fair value [Abstract]
Fair Value, Total investments	$ 40,437,000	$ 41,598,000

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2016
Assets [Abstract]
Asset transfers Level 1 to Level 2	$ 0	$ 0
Asset transfers Level 2 to Level 1	0	0
Asset transfers into Level 3	0	0
Asset transfers out of Level 3	0	0
Liabilities [Abstract]
Liabilities transfers Level 1 to Level 2	0	0
Liabilities transfers Level 2 to Level 1	0	0
Liability transfers into Level 3	0	0
Liability transfers out of Level 3	0	$ 0
Fair Value, Measurements, Recurring [Member]
Assets [Abstract]
Cash equivalents	8,220		$ 9,834
Available-for-sale Investments [Abstract]
Corporate bonds	6,028		7,025
Total assets at fair value	14,248		16,859
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member]
Assets [Abstract]
Cash equivalents	8,220		9,834
Available-for-sale Investments [Abstract]
Corporate bonds	0		0
Total assets at fair value	8,220		9,834
Liabilities [Abstract]
Total liabilities at fair value	0		0
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs Level 2 [Member]
Assets [Abstract]
Cash equivalents	0		0
Available-for-sale Investments [Abstract]
Corporate bonds	6,028		7,025
Total assets at fair value	6,028		7,025
Liabilities [Abstract]
Total liabilities at fair value	0		0
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs Level 3 [Member]
Assets [Abstract]
Cash equivalents	0		0
Available-for-sale Investments [Abstract]
Corporate bonds	0		0
Total assets at fair value	0		0
Liabilities [Abstract]
Total liabilities at fair value	$ 0		$ 0

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016
INVENTORIES [Abstract]
Raw materials	$ 17,593	$ 15,737
Work-in-process	4,392	6,039
Finished goods	13,655	13,355
Inventories	$ 35,640	$ 35,131

INVESTMENT IN UNCONSOLIDATED 44

INVESTMENT IN UNCONSOLIDATED AFFILIATES (Details)	1 Months Ended	3 Months Ended
	Feb. 28, 2011USD ($)	Jun. 30, 2016USD ($)Investment	Jun. 30, 2015USD ($)
Schedule of Equity Method Investments [Line Items]
Number of investments | Investment		1
Payment to acquire an unconsolidated affiliate accounted for by cost method		$ 2,999,000	$ 0
Cost method investment		3,000,000
SMB [Member]
Schedule of Equity Method Investments [Line Items]
Equity ownership interest purchased	15.00%
Payment to acquire an unconsolidated affiliate accounted for by cost method	$ 2,800,000
Allocated portion of unconsolidated affiliate's net loss		$ (34,000)	$ (33,000)

WARRANTY RESERVES (Details)

WARRANTY RESERVES (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2016
Change in accrued warranty reserve [Roll Forward]
Balance at beginning of period	$ 3,208	$ 3,156
Provision for warranty expense	759	260
Warranty costs incurred	(391)	(324)
Adjustment to pre-existing warranties	0	(223)
Balance at end of period	3,576	2,869
Non-current portion of warranty reserve	2,232	1,547	$ 1,927
Current portion of warranty reserve	$ 1,344	$ 1,322	1,281
Instruments [Member] | Minimum [Member]
Product Warranty Liabilities [Line Items]
Period of coverage for standard warranty obligation on instruments	1 year
Instruments [Member] | Maximum [Member]
Product Warranty Liabilities [Line Items]
Period of coverage for standard warranty obligation on instruments	5 years
Reagent Discs [Member]
Change in accrued warranty reserve [Roll Forward]
Current portion of warranty reserve	$ 500		$ 500

BORROWINGS (Details)

BORROWINGS (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Jan. 31, 2011	Jun. 30, 2016	Mar. 31, 2016
BORROWINGS [Abstract]
Term of loan agreement	10 years
Face amount of debt	$ 1,000
Stated interest rate	5.00%
Frequency of periodic payment	Quarterly
Short-term notes payable		$ 100	$ 100
Notes payable, less current portion		$ 354	$ 379
Maturity date		Dec. 31, 2020

OTHER CURRENT ACCRUED LIABILI47

OTHER CURRENT ACCRUED LIABILITIES (Details) £ in Thousands, $ in Thousands	Jun. 30, 2016USD ($)	Jun. 30, 2016GBP (£)	Mar. 31, 2016USD ($)
OTHER CURRENT ACCRUED LIABILITIES [Abstract]
Accrued liabilities for customer sales incentive programs	$ 4,859		$ 4,973
Installment payment obligation accrued related to acquisition	1,002	£ 750	1,077
Other current accrued liabilities	3,432		3,343
Total other current accrued liabilities	$ 9,293		$ 9,393

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Jun. 30, 2016USD ($)
COMMITMENTS AND CONTINGENCIES [Abstract]
Total purchase commitments	$ 9.9

EQUITY COMPENSATION PLANS AND49

EQUITY COMPENSATION PLANS AND SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2016	Oct. 22, 2014
Net impact of share-based compensation on [Abstract]
Capitalized share-based compensation costs		$ 100		$ 100
Excess tax benefits classified as financing cash inflow		$ 132	$ 747
2014 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total number of shares of the Company's common stock available for issuance (in shares)					1,712,409
Maximum shares authorized for issuance (in shares)		1,712,409
Shares available for future issuance (in shares)		462,000
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense before income taxes		$ 2,819	2,801
Income tax benefit		(984)	(988)
Total share-based compensation expense after income taxes		$ 1,835	$ 1,813
Net impact of share-based compensation on [Abstract]
Basic net income per share (in dollars per share)		$ 0.08	$ 0.08
Diluted net income per share (in dollars per share)		$ 0.08	$ 0.08
Cost of Revenues [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense before income taxes	[1]	$ 479	$ 383
Cost of Revenues [Member] | Restricted Stock Units (RSUs) [Member] | Continuing Operations [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense before income taxes		500	300
Cost of Revenues [Member] | Restricted Stock Units (RSUs) [Member] | Discontinued Operations [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense before income taxes		0	100
Research and Development [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense before income taxes		594	575
Sales and Marketing [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense before income taxes	[2]	704	1,172
Sales and Marketing [Member] | Restricted Stock Units (RSUs) [Member] | Continuing Operations [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense before income taxes		700	1,000
Sales and Marketing [Member] | Restricted Stock Units (RSUs) [Member] | Discontinued Operations [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense before income taxes		0	200
General and Administrative [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense before income taxes		$ 1,042	$ 671
[1]	Cost of revenues reported in the table include share-based compensation expense from continuing and discontinued operations. During the three months ended June 30, 2016 and 2015, share-based compensation expense included in cost of revenues from continuing operations was $0.5 million and $0.3 million, respectively, and from discontinued operations was $0 and $0.1 million, respectively.
[2]	Sales and marketing expenses reported in the table include share-based compensation expense from continuing and discontinued operations. During the three months ended June 30, 2016 and 2015, share-based compensation expense included in sales and marketing expenses from continuing operations was $0.7 million and $1.0 million, respectively, and from discontinued operations was $0 and $0.2 million, respectively.

EQUITY COMPENSATION PLANS AND50

EQUITY COMPENSATION PLANS AND SHARE-BASED COMPENSATION, Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Apr. 30, 2016
Restricted Stock Units (RSUs) [Member]
Restricted Stock Units Activity, Weighted Average Grant Date Fair Value [Roll Forward]
Total intrinsic value		$ 5.2	$ 10.6
Total grant date fair value		5	$ 6
Time-Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense		$ 19.4
Weighted average service period for recognition of unrecognized compensation costs		2 years 2 months 12 days
Restricted Stock Unit Activity, Number of Shares [Roll Forward]
Nonvested, beginning of period (in shares)		524,000
Granted (in shares)		113,000
Vested (in shares)	[1]	(93,000)
Canceled and forfeited (in shares)		(24,000)
Nonvested, end of period (in shares)		520,000
Restricted Stock Units Activity, Weighted Average Grant Date Fair Value [Roll Forward]
Nonvested, beginning of period (in dollars per share)	[2]	$ 45.37
Granted (in dollars per share)	[2]	44.54
Vested (in dollars per share)	[1],[2]	42.84
Canceled and forfeited (in dollars per share)	[2]	46.48
Nonvested, end of period (in dollars per share)	[2]	$ 45.59
Time-Based Restricted Stock Units [Member] | Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		4 years
Time-based vesting schedules		Four-year time-based vesting as follows: five percent vesting after the first year; additional ten percent after the second year; additional 15 percent after the third year; and the remaining 70 percent after the fourth year of continuous employment with the Company.
Vesting percentage after first year		5.00%
Additional vesting percentage after second year		10.00%
Additional vesting percentage after third year		15.00%
Additional vesting percentage after fourth year		70.00%
Time-Based Restricted Stock Units [Member] | Non-Employee Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Time-based vesting schedules		100 percent vesting after one year of continuous service to the Company.
Vesting percentage after first year		100.00%
Performance-Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense		$ 11.6
Weighted average service period for recognition of unrecognized compensation costs		2 years 4 months 24 days
Restricted Stock Unit Activity, Number of Shares [Roll Forward]
Nonvested, beginning of period (in shares)		311,000
Granted (in shares)		152,000
Vested (in shares)	[1]	(24,000)
Canceled and forfeited (in shares)		0
Nonvested, end of period (in shares)		439,000
Restricted Stock Units Activity, Weighted Average Grant Date Fair Value [Roll Forward]
Nonvested, beginning of period (in dollars per share)	[2]	$ 48.29
Granted (in dollars per share)	[2]	44.54
Vested (in dollars per share)	[1],[2]	40.82
Canceled and forfeited (in dollars per share)	[2]	0
Nonvested, end of period (in dollars per share)	[2]	$ 47.40
FY 2015 Performance RSUs [Member] | Target Condition One [Member]
Performance target of restricted stock units by vesting date [Abstract]
Shares issuable upon settlement		25.00%
Consolidated Income from Operations		> 90% of target
Vesting Date		Third anniversary of the date of grant
FY 2015 Performance RSUs [Member] | Target Condition Two [Member]
Performance target of restricted stock units by vesting date [Abstract]
Shares issuable upon settlement		25.00%
Consolidated Income from Operations		> 90% of target
Vesting Date		Fourth anniversary of the date of grant
FY 2015 Performance RSUs [Member] | Target Condition Three [Member]
Performance target of restricted stock units by vesting date [Abstract]
Shares issuable upon settlement		25.00%
Consolidated Income from Operations		>100% of target
Vesting Date		Third anniversary of the date of grant
FY 2015 Performance RSUs [Member] | Target Condition Four [Member]
Performance target of restricted stock units by vesting date [Abstract]
Shares issuable upon settlement		25.00%
Consolidated Income from Operations		> 100% of target
Vesting Date		Fourth anniversary of the date of grant
FY 2016 Performance RSUs [Member] | Target Condition One [Member]
Performance target of restricted stock units by vesting date [Abstract]
Shares issuable upon settlement		25.00%
Consolidated Income from Operations		> 90% of target
Vesting Date		Third anniversary of the date of grant
FY 2016 Performance RSUs [Member] | Target Condition Two [Member]
Performance target of restricted stock units by vesting date [Abstract]
Shares issuable upon settlement		25.00%
Consolidated Income from Operations		> 90% of target
Vesting Date		Fourth anniversary of the date of grant
FY 2016 Performance RSUs [Member] | Target Condition Three [Member]
Performance target of restricted stock units by vesting date [Abstract]
Shares issuable upon settlement		25.00%
Consolidated Income from Operations		>100% of target
Vesting Date		Third anniversary of the date of grant
FY 2016 Performance RSUs [Member] | Target Condition Four [Member]
Performance target of restricted stock units by vesting date [Abstract]
Shares issuable upon settlement		25.00%
Consolidated Income from Operations		> 100% of target
Vesting Date		Fourth anniversary of the date of grant
FY 2017 Performance RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Approved restricted stock unit awards (performance vesting) (in shares)				152,000
FY 2017 Performance RSUs [Member] | Target Condition One [Member]
Performance target of restricted stock units by vesting date [Abstract]
Shares issuable upon settlement		25.00%
Consolidated Income from Operations		> 90% of target
Vesting Date		Third anniversary of the date of grant
FY 2017 Performance RSUs [Member] | Target Condition Two [Member]
Performance target of restricted stock units by vesting date [Abstract]
Shares issuable upon settlement		25.00%
Consolidated Income from Operations		> 90% of target
Vesting Date		Fourth anniversary of the date of grant
FY 2017 Performance RSUs [Member] | Target Condition Three [Member]
Performance target of restricted stock units by vesting date [Abstract]
Shares issuable upon settlement		25.00%
Consolidated Income from Operations		>100% of target
Vesting Date		Third anniversary of the date of grant
FY 2017 Performance RSUs [Member] | Target Condition Four [Member]
Performance target of restricted stock units by vesting date [Abstract]
Shares issuable upon settlement		25.00%
Consolidated Income from Operations		> 100% of target
Vesting Date		Fourth anniversary of the date of grant
FY2017 Performance RSUs for CEO [Member] | Target Condition One [Member]
Performance target of restricted stock units by vesting date [Abstract]
Shares issuable upon settlement		18.00%
Consolidated Income from Operations		> 90% of target
Vesting Date		Third anniversary of the date of grant
FY2017 Performance RSUs for CEO [Member] | Target Condition Two [Member]
Performance target of restricted stock units by vesting date [Abstract]
Shares issuable upon settlement		18.00%
Consolidated Income from Operations		> 90% of target
Vesting Date		Fourth anniversary of the date of grant
FY2017 Performance RSUs for CEO [Member] | Target Condition Three [Member]
Performance target of restricted stock units by vesting date [Abstract]
Shares issuable upon settlement		32.00%
Consolidated Income from Operations		>100% of target
Vesting Date		Third anniversary of the date of grant
FY2017 Performance RSUs for CEO [Member] | Target Condition Four [Member]
Performance target of restricted stock units by vesting date [Abstract]
Shares issuable upon settlement		32.00%
Consolidated Income from Operations		> 100% of target
Vesting Date		Fourth anniversary of the date of grant
[1]	The number of restricted stock units vested includes shares that we withheld on behalf of our employees to satisfy the statutory tax withholding requirements.
[2]	The weighted average grant date fair value of restricted stock units is based on the number of shares and the closing market price of our common stock on the date of grant.

SHAREHOLDERS' EQUITY (Details)

SHAREHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2016	Jul. 31, 2013
Share Repurchase Program [Abstract]
Share repurchases yet to be purchased under authorization	$ 24
Dividend Payments [Abstract]
Total dividend payout	2.7	$ 2.5
Share Repurchase Program [Member]
Share Repurchase Program [Abstract]
Authorized amount of stock repurchase				$ 67.3
Share repurchases yet to be purchased under authorization	$ 24
Stock repurchased and retired to date (in shares)	1,600,000
Stock repurchased and retired to date	$ 43.3
Repurchase of common stock (in shares)	0	0
Common Stock Warrants [Member]
Common Stock Warrants [Abstract]
Common stock issued upon exercise of vested warrants (in shares)	0	4,000
Weighted average exercise price (in dollars per share)	$ 3	$ 3
Warrants outstanding (in shares)	0		0

NET INCOME PER SHARE (Details)

NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Numerator [Abstract]
Net income	$ 6,890	$ 6,995
Denominator [Abstract]
Weighted average common shares outstanding - basic (in shares)	22,465,000	22,624,000
Weighted average effect of dilutive securities [Abstract]
Restricted stock units (in shares)	220,000	254,000
Warrants (in shares)	0	1,000
Weighted average common shares outstanding - diluted (in shares)	22,685,000	22,879,000
Net income per share [Abstract]
Basic net income per share (in dollars per share)	$ 0.31	$ 0.31
Diluted net income per share (in dollars per share)	$ 0.30	$ 0.31
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average number of shares underlying antidilutive securities (in shares)	161,000	0
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average number of shares underlying antidilutive securities (in shares)	0	0

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2016
INCOME TAXES [Abstract]
Income tax provision	$ 3,822	$ 3,989
Effective income tax rate	36.00%	36.00%
Unrecognized tax benefits	$ 0		$ 0
Penalties and interest expense related to unrecognized tax benefits	$ 0	$ 0

SEGMENT REPORTING INFORMATION54

SEGMENT REPORTING INFORMATION (Details) $ in Thousands		3 Months Ended
		Jun. 30, 2016USD ($)Segment	Jun. 30, 2015USD ($)
SEGMENT REPORTING INFORMATION [Abstract]
Number of reportable segments | Segment		2
Segment Reporting Information [Line Items]
Revenues		$ 57,696	$ 53,090
Cost of revenues		25,695	23,698
Gross profit		32,001	29,392
Other Market [Member]
Segment Reporting Information [Line Items]
Revenues	[1]	868	817
Cost of revenues	[1]	81	33
Gross profit	[1]	787	784
Reportable Segments [Member] | Medical Market [Member]
Segment Reporting Information [Line Items]
Revenues		9,097	8,684
Cost of revenues		4,756	4,478
Gross profit		4,341	4,206
Reportable Segments [Member] | Veterinary Market [Member]
Segment Reporting Information [Line Items]
Revenues		47,731	43,589
Cost of revenues		20,858	19,187
Gross profit		$ 26,873	$ 24,402
[1]	Represents unallocated items, not specifically identified to any particular business segment.

REVENUES BY PRODUCT CATEGORY 55

REVENUES BY PRODUCT CATEGORY AND GEOGRAPHIC REGION AND SIGNIFICANT CONCENTRATIONS, Revenue by Product (Details) - USD ($) $ in Thousands		3 Months Ended
		Jun. 30, 2016	Jun. 30, 2015
Revenue from External Customer [Line Items]
Product sales, net		$ 57,696	$ 53,053
Development and licensing revenues		0	37
Total revenues		57,696	53,090
Instruments [Member]
Revenue from External Customer [Line Items]
Product sales, net	[1]	10,099	8,712
Consumables [Member]
Revenue from External Customer [Line Items]
Product sales, net	[2]	44,689	41,797
Other Products [Member]
Revenue from External Customer [Line Items]
Product sales, net	[3]	$ 2,908	$ 2,544
[1]	Instruments include chemistry analyzers, hematology instruments, VSpro specialty analyzers and i-STAT analyzers.
[2]	Consumables include reagent discs, hematology reagent kits, VSpro specialty cartridges, i-STAT cartridges and rapid tests.
[3]	Other products include products using the Orbos process and extended maintenance agreements.

REVENUES BY PRODUCT CATEGORY 56

REVENUES BY PRODUCT CATEGORY AND GEOGRAPHIC REGION AND SIGNIFICANT CONCENTRATIONS (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	$ 57,696	$ 53,090
North America [Member] | Reportable Geographical Components [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	46,773	42,311
Europe [Member] | Reportable Geographical Components [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	8,358	7,723
Asia Pacific and Rest of the World [Member] | Reportable Geographical Components [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	$ 2,565	$ 3,056

REVENUES BY PRODUCT CATEGORY 57

REVENUES BY PRODUCT CATEGORY AND GEOGRAPHIC REGION AND SIGNIFICANT CONCENTRATIONS, Concentration Risk (Details) - Customer Concentration Risk [Member] - Customer	3 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2016
Worldwide Revenues [Member]
Concentration Risk [Line Items]
Number of major customers	4	2
Worldwide Revenues [Member] | MWI Veterinary Supply, Inc. [Member]
Concentration Risk [Line Items]
Customer concentration risk	20.00%	19.00%
Worldwide Revenues [Member] | Henry Schein, Inc. [Member]
Concentration Risk [Line Items]
Customer concentration risk	13.00%	15.00%
Worldwide Revenues [Member] | Patterson Companies, Inc. [Member]
Concentration Risk [Line Items]
Customer concentration risk	12.00%
Worldwide Revenues [Member] | Abbott Point of Care, Inc. [Member]
Concentration Risk [Line Items]
Customer concentration risk	10.00%
Accounts Receivable [Member]
Concentration Risk [Line Items]
Number of major customers	3		2
Accounts Receivable [Member] | Distributor One [Member]
Concentration Risk [Line Items]
Customer concentration risk	29.00%		25.00%
Accounts Receivable [Member] | Distributor Two [Member]
Concentration Risk [Line Items]
Customer concentration risk	12.00%		14.00%
Accounts Receivable [Member] | Distributor Three [Member]
Concentration Risk [Line Items]
Customer concentration risk	11.00%

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Millions	Aug. 08, 2016	Jul. 31, 2016	Jun. 30, 2016
Subsequent Event [Line Items]
Remaining shares under previously-authorized share repurchase program			$ 24
Subsequent Event [Member]
Subsequent Event [Line Items]
Increase to existing share repurchase program		$ 30
Total share repurchase		$ 54
Subsequent Event [Member] | SMB [Member]
Subsequent Event [Line Items]
Equity ownership interest sold	15.00%
Proceeds from sale of investment	$ 9.7
Holdback period in which payment expected to be released	18 months
Subsequent Event [Member] | Quarterly Dividend [Member]
Subsequent Event [Line Items]
Dividend declared date		2016-07
Quarterly dividend amount (in dollars per share)		$ 0.12
Dividend payment date		Sep. 15, 2016
Record date		Sep. 1, 2016