SEGMENT INFORMATION
TECHNE CORPORATION AND SUBISIDARIES
(in thousands of $'s, except per share data)
Increase (Decrease)
Fiscal 2005 From Fiscal 2004
---------------------------------- -----------------------
First Second Percent First Second
Quarter Quarter YTD Of Sales Quarter Quarter YTD
------- ------- ------ -------- ------- ------- ------
Sales 40,919 42,247 83,166 100% 2,926 3,983 6,909
Cost of sales 8,887 8,941 17,828 22% 224 500 724
------- ------- ------ --- ----- ----- -----
Gross margin 32,032 33,306 65,338 78% 2,702 3,483 6,185
Gross margin
percentage 78.3% 78.8% 78.6%
SG&A expense 5,634 6,290 11,924 14% 551 771 1,322
R&D expense 4,688 4,619 9,307 11% (275) (831) (1,106)
Amortization
expense 305 306 611 1% (95) (93) (188)
Interest expense 245 178 423 1% 70 6 76
Interest income (1,053) (1,189) (2,242) (3%) (327) (427) (754)
Other non-
operating exp.,
net 466 416 882 1% 388 396 784
------- ------- ------ --- ----- ----- -----
10,285 10,620 20,905 25% 312 (178) 134
------- ------- ------ --- ----- ----- -----
Earnings before
income taxes 21,747 22,686 44,433 53% 2,390 3,661 6,051
Income taxes 7,555 7,752 15,307 18% 770 1,097 1,867
------- ------- ------ --- ----- ----- -----
14,192 14,934 29,126 35% 1,620 2,564 4,184
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Diluted earnings
per share 0.34 0.36 0.70
Weighted average
diluted shares
outstanding 41,676 41,681 41,678
HEMATOLOGY DIVISION
(in thousands of $'s)
Increase (Decrease)
Fiscal 2005 From Fiscal 2004
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First Second Percent First Second
Quarter Quarter YTD Of Sales Quarter Quarter YTD
------- ------- ------ -------- ------- ------- ------
Sales 4,013 4,515 8,528 100% (268) 61 (207)
Cost of sales 2,220 2,163 4,383 51% (126) (181) (307)
------- ------- ------ --- ------ ------ ------
Gross margin 1,793 2,352 4,145 49% (142) 242 100
Gross margin
percentage 44.7% 52.1% 48.6%
SG&A expense 409 436 845 10% 18 53 71
R&D expense 188 189 377 4% (3) (1) (4)
Interest, net (56) (77) (133) (1%) 21 (3) 18
------- ------- ------ --- ----- ----- ------
541 548 1,089 13% 36 49 85
------- ------- ------ --- ----- ----- ------
Pretax result 1,252 1,804 3,056 36% (178) 193 15
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BIOTECHNOLOGY DIVISION
(in thousands of $'s)
Increase (Decrease)
Fiscal 2005 From Fiscal 2004
---------------------------------- -----------------------
First Second Percent First Second
Quarter Quarter YTD Of Sales Quarter Quarter YTD
------- ------- ------ -------- ------- ------- ------
Sales 30,691 30,072 60,763 100% 2,038 2,306 4,344
Intersegment
sales (4,804) (5,204)(10,008) (183) (237) (420)
------- ------- ------ ------ ----- ------
25,887 24,868 50,755 1,855 2,069 3,924
Cost of sales 6,111 6,070 12,181 20% 195 540 735
Intersegment
sales (4,756) (5,210) (9,966) (235) (316) (551)
------- ------- ------ ------ ----- ------
1,355 860 2,215 (40) 224 184
Gross margin 24,532 24,008 48,540 80% 1,895 1,845 3,740
Gross margin
percentage 80.1% 79.8% 80.0%
SG&A expense 2,973 3,415 6,388 11% 322 466 788
R&D expense 4,500 4,430 8,930 15% 336 123 459
Amortization
expense 305 306 611 1% (95) (93) (188)
Interest, net (414) (564) (978) (2%) (8) (176) (184)
------- ------- ------ --- ------ ----- ------
7,364 7,587 14,951 25% 555 320 875
------- ------- ------ --- ------ ----- ------
Pretax result 17,168 16,421 33,589 55% 1,340 1,525 2,865
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R&D SYSTEMS EUROPE
(in thousands of Br. pounds)
Increase (Decrease)
Fiscal 2005 From Fiscal 2004
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First Second Percent First Second
Quarter Quarter YTD Of Sales Quarter Quarter YTD
------- ------- ------ -------- ------- ------- ------
Sales 6,080 6,808 12,888 100% 100 443 543
Cost of sales 2,931 3,133 6,064 47% (109) (24) (133)
------- ------- ------ --- ----- ----- ------
Gross margin 3,149 3,675 6,824 53% 209 467 676
Gross margin
Percentage 51.8% 54.0% 53.0%
SG&A expense 950 1,161 2,111 16% (100) 69 (31)
Interest income (254) (263) (517) (4%) (127) (113) (240)
Exchange loss/
(gain) 26 (44) (18) -- 75 29 104
------- ------- ------ --- ------ ----- ------
722 854 1,576 12% (152) (15) (167)
------- ------- ------ --- ------ ----- ------
Pretax result 2,427 2,821 5,248 41% 361 482 843
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R&D SYSTEMS EUROPE
(in thousands of $'s)
Increase (Decrease)
Fiscal 2005 From Fiscal 2004
---------------------------------- -----------------------
First Second Percent First Second
Quarter Quarter YTD Of Sales Quarter Quarter YTD
------- ------- ------ -------- ------- ------- ------
Sales 11,019 12,864 23,883 100% 1,339 1,853 3,192
Cost of sales 5,312 5,918 11,230 47% 390 457 847
------- ------- ------ --- ------ ----- ------
Gross margin 5,707 6,946 12,653 53% 949 1,396 2,345
Gross margin
percentage 51.8% 54.0% 53.0%
SG&A expense 1,722 2,194 3,916 16% 23 303 326
Interest income (460) (497) (957) (4%) (254) (237) (491)
Exchange loss/
(gain) 47 (82) (35) -- 131 47 178
------- ------- ------ --- ------ ----- ------
1,309 1,615 2,924 12% (100) 113 13
------- ------- ------ --- ------ ----- ------
Pretax result 4,398 5,331 9,729 41% 1,049 1,283 2,332
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CORPORATE AND OTHER (1)
(in thousands of $'s)
Increase (Decrease)
Fiscal 2005 From Fiscal 2004
------------------------ -----------------------
First Second First Second
Quarter Quarter YTD Quarter Quarter YTD
------- ------- ------ ------- ------- ------
Interest income 42 51 93 5 11 16
Rental income 19 53 72 -- 7 7
------- ------- ------ ------- ------- ------
61 104 165 5 18 23
SG&A expense 530 245 775 188 (51) 137
R&D-CCX losses -- -- -- (436) (828) (1,264)
R&D-DGI losses -- -- -- (172) (125) (297)
Other-Hemerus losses 74 73 147 74 73 147
Interest expense 164 178 342 (11) 6 (5)
Building expense 364 478 842 183 283 466
------- ------- ------ ------- ------- ------
1,132 974 2,106 (174) (642) (816)
------- ------- ------ ------- ------- ------
Pretax result (1,071) (870) (1,941) 179 660 839
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(1) Unallocated corporate expenses and Techne's share of losses by
ChemoCentryx, Inc. (CCX), Discovery Genomics, Inc. (DGI) and Hemerus Medical,
LLC.