SEGMENT INFORMATION
TECHNE CORPORATION AND SUBISIDARIES
(in thousands of $'s, except per share data)
Increase(Decrease)
Fiscal 2004 From Fiscal 2003
------------------------ ---------------------------------
First Second Percent First Second
Quarter Quarter YTD Of Sales Quarter Quarter YTD
------- ------- ------ -------- ------- ------- -----
Sales 37,993 38,264 76,257 100% 3,445 4,964 8,409
Cost of sales 8,663 8,441 17,104 22% (27) 70 43
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Gross margin 29,330 29,823 59,153 78% 3,472 4,894 8,366
Gross margin percentage 77.2% 77.9% 77.6%
SG&A expense 5,083 5,519 10,602 14% 132 618 750
R&D expense 4,963 5,450 10,413 14% 130 471 601
Amortization expense 400 399 799 1% (84) (86) (170)
Interest expense 175 172 347 -- (148) (124) (272)
Interest income (726) (762) (1,488) (2%) 64 (58) 6
Other non-operating
exp., net 78 20 98 -- (72) 36 (36)
------- ------- ------ -------- ------- ------- ------
9,973 10,798 20,771 27% 22 857 879
------- ------- ------ -------- ------- ------- ------
Earnings before
income taxes 19,357 19,025 38,382 51% 3,450 4,037 7,487
Income taxes 6,785 6,655 13,440 18% 1,323 1,548 2,871
------- ------- ------ -------- ------- ------- ------
12,572 12,370 24,942 33% 2,127 2,489 4,616
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Diluted earnings
per share 0.30 0.30 0.60
Weighted average diluted
shares outstanding 41,600 41,653 41,627
HEMATOLOGY DIVISION
(in thousands of $'s)
Increase(Decrease)
Fiscal 2004 From Fiscal 2003
------------------------ ----------------------------------
First Second Percent First Second
Quarter Quarter YTD Of Sales Quarter Quarter YTD
------- ------- ------ -------- ------- ------- ------
Sales 4,281 4,454 8,735 100% 507 468 975
Cost of sales 2,346 2,344 4,690 54% 209 232 441
------- ------- ------ -------- ------- ------- ------
Gross margin 1,935 2,110 4,045 46% 298 236 534
Gross margin percentage 45.2% 47.4% 46.3%
SG&A expense 391 383 774 9% (9) 16 7
R&D expense 191 190 381 4% 18 (3) 15
Interest income (77) (74) (151) (2%) 24 9 33
------- ------- ------ -------- ------- ------- ------
505 499 1,004 11% 33 22 55
------- ------- ------ -------- ------- ------- ------
Pretax result 1,430 1,611 3,041 35% 265 214 479
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BIOTECHNOLOGY DIVISION
(in thousands of $'s)
Increase(Decrease)
Fiscal 2004 From Fiscal 2003
------------------------ ----------------------------------
First Second Percent First Second
Quarter Quarter YTD Of Sales Quarter Quarter YTD
------- ------- ------ -------- ------- ------- ------
Sales 28,653 27,766 56,419 100% 2,016 2,811 4,827
Intersegment sales (4,621) (4,967) (9,588) (471) (466) (937)
------- ------- ------ ------- ------- ------
24,032 22,799 46,831 1,545 2,345 3,890
Cost of sales 5,916 5,530 11,446 21% 191 70 261
Intersegment sales (4,521) (4,894) (9,415) (371) (411) (782)
------- ------- ------ ------- ------- ------
1,395 636 2,031 (180) (341) (521)
Gross margin 22,637 22,163 44,800 79% 1,725 2,686 4,411
Gross margin percentage 79.4% 80.1% 79.7%
SG&A expense 2,651 2,949 5,600 10% (61) 109 48
R&D expense 4,164 4,307 8,471 15% 201 180 381
Amortization expense 400 399 799 1% (84) (86) (170)
Interest income (406) (388) (794) (1%) 85 19 104
------- ------- ------ -------- ------- ------- ------
6,809 7,267 14,076 25% 141 222 363
------- ------- ------ -------- ------- ------- ------
Pretax result 15,828 14,896 30,724 54% 1,584 2,464 4,048
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R&D SYSTEMS EUROPE
(in thousands of Br. pounds)
Increase(Decrease)
Fiscal 2004 From Fiscal 2003
------------------------ ----------------------------------
First Second Percent First Second
Quarter Quarter YTD Of Sales Quarter Quarter YTD
------- ------- ------ -------- ------- ------- ------
Sales 5,980 6,365 12,345 100% 663 732 1,395
Intersegment sales -- -- -- 9 6 15
------- ------- ------ ------- ------- ------
5,980 6,365 12,345 672 738 1,410
Cost of sales 3,040 3,157 6,197 50% (157) (203) (360)
------- ------- ------ -------- ------- ------- ------
Gross margin 2,940 3,208 6,148 50% 820 935 1,755
Gross margin percentage 49.2% 50.4% 49.8%
SG&A expense 1,050 1,092 2,142 17% 17 101 118
Interest income (127) (150) (277) (2%) (23) (35) (58)
Exchange loss/(gain) (49) (73) (122) (1%) (80) 6 (74)
------- ------- ------ -------- ------- ------- ------
874 869 1,743 14% (86) 72 (14)
------- ------- ------ -------- ------- ------- ------
Pretax result 2,066 2,339 4,405 36% 906 863 1,769
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R&D SYSTEMS EUROPE
(in thousands of $'s)
Increase(Decrease)
Fiscal 2004 From Fiscal 2003
------------------------ ----------------------------------
First Second Percent First Second
Quarter Quarter YTD Of Sales Quarter Quarter YTD
------- ------- ------ -------- ------- ------- ------
Sales 9,680 11,011 20,691 100% 1,379 2,142 3,521
Intersegment sales -- -- -- 14 9 23
------- ------- ------ ------- ------- ------
9,680 11,011 20,691 1,393 2,151 3,544
Cost of sales 4,922 5,461 10,383 50% (70) 170 100
------- ------- ------ -------- ------- ------- ------
Gross margin 4,758 5,550 10,308 50% 1,449 1,972 3,421
Gross margin percentage 49.2% 50.4% 49.8%
SG&A expense 1,699 1,891 3,590 17% 87 328 415
Interest income (206) (260) (466) (2%) (43) (80) (123)
Exchange loss/(gain) (84) (129) (213) (1%) (133) (1) (134)
------- ------- ------ -------- ------- ------- ------
1,409 1,502 2,911 14% (89) 247 158
------- ------- ------ -------- ------- ------- ------
Pretax result 3,349 4,048 7,397 36% 1,538 1,725 3,263
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CORPORATE AND OTHER (1)
(in thousands of $'s)
Increase(Decrease)
Fiscal 2004 From Fiscal 2003
------------------------ ------------------------
First Second First Second
Quarter Quarter YTD Quarter Quarter YTD
------- ------- ------ ------- ------- ------
Interest income 37 40 77 2 6 8
Rental income 19 46 65 19 40 59
------- ------- ------ ------- ------- ------
56 86 142 21 46 67
SG&A expense 342 296 638 115 165 280
R&D-CCX losses 436 828 1,264 (83) 332 249
R&D-DGI losses 172 125 297 (6) (38) (44)
Interest expense 175 172 347 (148) (124) (272)
Building expense 181 195 376 80 77 157
------- ------- ------ ------- ------- ------
1,306 1,616 2,922 (42) 410 370
------- ------- ------ ------- ------- ------
Pretax result (1,250) (1,530) (2,780) 63 (366) (303)
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(1) Unallocated corporate expenses and Techne's share of losses by
ChemoCentryx, Inc. (CCX) and Discovery Genomics, Inc. (DGI)