UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

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

For the quarterly period ended September 30, 2003.

OR

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

For The Transiton Period From __________To __________.

COMMISSION FILE NUMBER 0-19271

IDEXX LABORATORIES, INC.
(Exact name of registrant as specified in its charter)

DELAWARE		01-0393723
(State of incorporation)		(I.R.S. Employer Identification No.)
One IDEXX Drive, Westbrook, Maine		04092
(Address of principal executive offices)		(Zip Code)

(207) 856-0300

(Registrant’s telephone number, including area code)

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

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes [X] No [ ]

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of October 31, 2003, 34,854,622 shares of the registrant’s Common Stock, $.10 par value, were outstanding.

IDEXX LABORATORIES, INC. AND SUBSIDIARIES

INDEX


PART I		FINANCIAL INFORMATION	Page

	Item 1.	Financial Statements

		Consolidated Balance Sheets as of December 31, 2002 and
		September 30, 2003	3

		Consolidated Statements of Operations for the three and nine months
		ended September 30, 2002 and 2003	4

		Consolidated Statements of Cash Flows for the nine months
		ended September 30, 2002 and 2003	5

		Notes to Consolidated Financial Statements	6

	Item 2.	Management's Discussion and Analysis of Financial Condition
		and Results of Operations	12

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	23

	Item 4.	Controls and Procedures	24

PART II		OTHER INFORMATION


	Item 6.	Exhibits and Reports on Form 8-K	25

SIGNATURES			26

IDEXX LABORATORIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
(Unaudited)

	December 31,			September 30,
	2002			2003
ASSETS
Current Assets:
Cash and cash equivalents	$	113,788		$	176,857
Short-term investments		33,403			39,323
Accounts receivable, less reserves of $2,415 and $2,287 in 2002 and 2003, respectively		45,689			50,672
Inventories		75,086			69,295
Deferred income taxes		14,887			15,329
Other current assets		6,267			5,882

Total current assets		289,120			357,358

Long-Term Investments		15,572			25,110

Property and Equipment, at cost:
Land		1,195			1,197
Buildings		5,144			5,175
Leasehold improvements		22,290			23,017
Machinery and equipment		45,296			43,584
Office furniture and equipment		35,521			33,114
Construction in progress		5,863			10,230

		115,309			116,317
Less accumulated depreciation and amortization		65,854			64,485

		49,455			51,832

Long Term Assets:
Goodwill, net of accumulated amortization of $29,948 and $30,148 for 2002 and 2003, respectively		52,321			53,499
Other intangible assets, net of accumulated amortization of $4,373 and $4,792 for 2002 and 2003, respectively		3,836			4,439
Other non-current assets, net		6,348			4,981

		62,505			62,919

TOTAL ASSETS	$	416,652		$	497,219

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	9,427		$	12,600
Accrued expenses		51,710			66,597
Notes payable		973			489
Deferred revenue		7,662			8,271

Total current liabilities		69,772			87,957

Long-Term Liabilities:
Deferred tax liabilities		--			1,083
Deferred revenue		5,907			5,120

Total long-term liabilities		5,907			6,203

Commitments and Contingencies (Notes 6 and 11)

Partner's Interest in Consolidated Subsidiary (Note 11)		--			240

Stockholders' Equity:
Common stock, $0.10 par value; Authorized: 60,000 shares; Issued: 42,331 shares in 2002 and 44,101 shares in 2003		4,233			4,410
Additional paid-in capital		334,348			375,772
Deferred equity-based compensation		--			88
Retained earnings		183,260			227,985
Accumulated other comprehensive income (loss)		(2,511	)		1,323
Treasury stock (8,650 shares in 2002 and 9,441 shares in 2003), at cost		(178,357	)		(206,759	)

Total stockholders' equity		340,973			402,819

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	416,652		$	497,219

The accompanying notes are an integral part of these consolidated financial statements.

IDEXX LABORATORIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2002		2003		2002		2003
Revenue:
Product revenue	$	78,701	$	91,692	$	229,409	$	267,011
Service revenue		25,833		28,369		77,366		84,143

		104,534		120,061		306,775		351,154
Cost of Revenue:
Cost of product revenue		35,215		41,665		106,894		122,495
Cost of service revenue		18,559		19,306		56,165		58,436

		53,774		60,971		163,059		180,931

Gross profit		50,760		59,090		143,716		170,223

Expenses:
Sales and marketing		14,074		18,222		42,164		51,743
General and administrative		11,047		9,206		31,990		29,396
Research and development		7,339		8,376		22,247		24,017

Income from operations		18,300		23,286		47,315		65,067
Interest income		614		734		2,127		2,188

Income before provision for income taxes		18,914		24,020		49,442		67,255
Provision for income taxes		6,431		8,047		16,810		22,530

Net income	$	12,483	$	15,973	$	32,632	$	44,725

Earnings per share:
Basic	$	0.37	$	0.46	$	0.97	$	1.31

Diluted	$	0.36	$	0.44	$	0.93	$	1.25

Weighted average shares outstanding:
Basic		33,301		34,408		33,666		34,109

Diluted		34,632		35,977		34,981		35,706

The accompanying notes are an integral part of these consolidated financial statements.

IDEXX LABORATORIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)

	Nine Months Ended September 30,
	2002			2003
Cash Flows from Operating Activities:
Net income	$	32,632		$	44,725
Adjustments to reconcile net income to net cash provided (used) by operating activities:
Depreciation and amortization		15,361			14,257
Non-cash portion of CEO succession charge		1,836			--
Provision for (recoveries of) uncollectible accounts		(814	)		122
Provision for deferred income taxes		361			1,821
Tax benefit on exercise of non-qualified stock options and disqualifying dispositions		3,805			11,540
Provision for deferred equity-based compensation		--			88
Changes in assets and liabilities, net of acquisitions and disposals:
Accounts receivable		5,143			(3,589	)
Inventories		11,060			5,977
Other current assets		(1,160	)		927
Accounts payable		6,883			3,080
Accrued expenses		18,376