SEGMENT INFORMATION
TECHNE CORPORATION AND SUBISIDARIES
(in thousands of $'s, except per share data)
Fiscal 2005
Increase(Decrease) From Fiscal 2004
------------------------------------------------ --------
- -------------------------------
First Second Third Fourth Percent First
Second Third Fourth
Quarter Quarter Quarter Quarter YTD Of Sales Quarter
Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- -------- -------
- ------- ------- ------- -------
Sales 40,919 42,247 47,935 47,551 178,652 100% 2,926
3,983 5,394 5,092 17,395
Cost of sales 8,887 8,941 9,138 9,847 36,813 21% 224
500 192 1,010 1,926
------- ------- ------- ------- ------- -------- ------
- ------ ------ ------ ------
Gross margin 32,032 33,306 38,797 37,704 141,839 79% 2,702
3,483 5,202 4,082 15,469
Gross margin percentage 78.3% 78.8% 80.9% 79.3% 79.4%
SG&A expense 5,634 6,290 6,379 6,173 24,476 14% 551
771 923 506 2,751
R&D expense 4,688 4,619 4,631 4,441 18,379 10% (275)
(831) (451) (837) (2,394)
Amortization expense 305 306 305 305 1,221 1% (95)
(93) (95) (95) (378)
Interest expense 245 178 193 206 822 -- 70
6 26 42 144
Interest income (1,053) (1,189) (938) (929) (4,109) (2%) (327)
(427) (85) (19) (858)
Other non-operating
exp., net 466 416 323 (42) 1,163 -- 388
396 (92) (311) 381
Impairment loss -- -- -- -- -- -- --
- -- -- (1,523) (1,523)
------- ------- ------- ------- ------- -------- ------
- ------ ------ ------ ------
10,285 10,620 10,893 10,154 41,952 23% 312
(178) 226 (2,237) (1,877)
------- ------- ------- ------- ------- -------- ------
- ------ ------ ------ ------
Earnings before
income taxes 21,747 22,686 27,904 27,550 99,887 56% 2,390
3,661 4,976 6,319 17,346
Income taxes 7,555 7,752 9,465 8,983 33,755 19% 770
1,097 1,156 1,119 4,142
------- ------- ------- ------- ------- -------- ------
- ------ ------ ------ ------
14,192 14,934 18,439 18,567 66,132 37% 1,620
2,564 3,820 5,200 13,204
======= ======= ======= ======= ======= ======== ======
====== ====== ====== ======
Diluted earnings
per share 0.34 0.36 0.45 0.47 1.62
Weighted average
diluted shares
outstanding 41,676 41,681 40,896 39,396 40,920
HEMATOLOGY DIVISION
(in thousands of $'s)
Fiscal 2005
Increase(Decrease) From Fiscal 2004
------------------------------------------------ --------
- -------------------------------
First Second Third Fourth Percent First
Second Third Fourth
Quarter Quarter Quarter Quarter YTD Of Sales Quarter
Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- -------- -------
- ------- ------- ------- -------
Sales 4,013 4,515 3,652 4,004 16,184 100% (268)
61 (417) (670) (1,294)
Cost of sales 2,220 2,163 2,123 2,147 8,653 53% (126)
(181) (111) (340) (758)
------- ------- ------- ------- ------- -------- -------
- ------- ------- ------- -------
Gross margin 1,793 2,352 1,529 1,857 7,531 47% (142)
242 (306) (330) (536)
Gross margin percentage 44.7% 52.1% 41.9% 46.4% 46.5%
SG&A expense 409 436 505 458 1,808 11% 18
53 66 (26) 111
R&D expense 188 189 199 194 770 5% (3)
(1) (4) (3) (11)
Interest, net (56) (77) (44) (38) (215) (1%) 21
(3) 35 44 97
------- ------- ------- ------- ------- -------- -------
- ------- ------- ------- -------
541 548 660 614 2,363 15% 36
49 97 15 197
------- ------- ------- ------- ------- -------- -------
- ------- ------- ------- -------
Pretax result 1,252 1,804 869 1,243 5,168 32% (178)
193 (403) (345) (733)
======= ======= ======= ======= ======= ======== =======
======= ======= ======= =======
BIOTECHNOLOGY DIVISION
(in thousands of $'s)
Fiscal 2005
Increase(Decrease) From Fiscal 2004
------------------------------------------------ --------
- -------------------------------
First Second Third Fourth Percent First
Second Third Fourth
Quarter Quarter Quarter Quarter YTD Of Sales Quarter
Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- -------- -------
- ------- ------- ------- -------
Sales 30,691 30,072 36,338 35,642 132,743 100% 2,038
2,306 5,124 4,207 13,675
Intersegment sales (4,804) (5,204) (5,598) (5,984) (21,590) (183)
(237) (453) (1,031) (1,904)
------- ------- ------- ------- ------- -------
- ------- ------- ------- -------
25,887 24,868 30,740 29,658 111,153 1,855
2,069 4,671 3,176 11,771
Cost of sales 6,111 6,070 6,368 7,042 25,591 19% 195
540 247 1,268 2,250
Intersegment sales (4,756) (5,210) (5,479) (5,997) (21,442) (235)
(316) (339) (1,100) (1,990)
------- ------- ------- ------- ------- ------- -------
- ------- ------- ------- -------
1,355 860 889 1,045 4,149 (40)
224 (92) 168 260
Gross margin 24,532 24,008 29,851 28,613 107,004 81% 1,895
1,845 4,763 3,008 11,511
Gross margin percentage 80.1% 79.8% 82.5% 80.2% 80.7%
SG&A expense 2,973 3,415 3,712 3,417 13,517 10% 322
466 795 173 1,756
R&D expense 4,500 4,430 4,432 4,247 17,609 14% 336
123 142 (131) 470
Amortization expense 305 306 305 305 1,221 1% (95)
(93) (95) (95) (378)
Interest, net (414) (564) (320) (279) (1,577) (1%) (8)
(176) 91 152 59
------- ------- ------- ------- ------- ------- -------
- ------- ------- ------- -------
7,364 7,587 8,129 7,690 30,770 24% 555
320 933 99 1,907
------- ------- ------- ------- ------- ------- -------
- ------- ------- ------- -------
Pretax result 17,168 16,421 21,722 20,923 76,234 57% 1,340
1,525 3,830 2,909 9,604
======= ======= ======= ======= ======= ======= =======
======= ======= ======= =======
R&D SYSTEMS EUROPE
(in thousands of British pounds)
Fiscal 2005
Increase(Decrease) From Fiscal 2004
------------------------------------------------ --------
- -------------------------------
First Second Third Fourth Percent First
Second Third Fourth
Quarter Quarter Quarter Quarter YTD Of Sales Quarter
Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- -------- -------
- ------- ------- ------- -------
Sales 6,080 6,808 7,131 7,575 27,594 100% 100
443 410 1,291 2,244
Cost of sales 2,931 3,133 3,225 3,622 12,911 47% (109)
(24) 118 600 585
------- ------- ------- ------- ------- -------- -------
- ------- ------- ------- -------
Gross margin 3,149 3,675 3,906 3,953 14,683 53% 209
467 292 691 1,659
Gross margin percentage 51.8% 54.0% 54.8% 52.2% 53.2%
SG&A expense 950 1,161 1,022 1,097 4,230 15% (100)
69 44 110 123
Interest income (254) (263) (280) (307) (1,104) (4%) (127)
(113) (105) (105) (450)
Exchange loss/(gain) 26 (44) 16 (48) (50) -- 75
29 (30) (88) (14)
------- ------- ------- ------- ------- -------- -------
- ------- ------- ------- -------
722 854 758 742 3,076 11% (152)
(15) (91) (83) (341)
------- ------- ------- ------- ------- -------- -------
- ------- ------- ------- -------
Pretax result 2,427 2,821 3,148 3,211 11,607 42% 361
482 383 774 2,000
======= ======= ======= ======= ======= ======== =======
======= ======= ======= =======
R&D SYSTEMS EUROPE
(in thousands of $'s)
Fiscal 2005
Increase(Decrease) From Fiscal 2004
------------------------------------------------ --------
- -------------------------------
First Second Third Fourth Percent First
Second Third Fourth
Quarter Quarter Quarter Quarter YTD Of Sales Quarter
Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- -------- -------
- ------- ------- ------- -------
Sales 11,019 12,864 13,543 13,889 51,315 100% 1,339
1,853 1,140 2,586 6,918
Cost of sales 5,312 5,918 6,126 6,655 24,011 47% 390
457 395 1,182 2,424
------- ------- ------- ------- ------- -------- -------
- ------- ------- ------- -------
Gross margin 5,707 6,946 7,417 7,234 27,304 53% 949
1,396 745 1,404 4,494
Gross margin percentage 51.8% 54.0% 54.8% 52.1% 53.2%
SG&A expense 1,722 2,194 1,939 2,011 7,866 15% 23
303 134 212 672
Interest income (460) (497) (531) (565) (2,053) (4%) (254)
(237) (208) (208) (907)
Exchange loss 47 (82) 29 (88) (94) -- 131
47 (56) (153) (31)
------- ------- ------- ------- ------- -------- -------
- ------- ------- ------- -------
1,309 1,615 1,437 1,358 5,719 11% (100)
113 (130) (149) (266)
------- ------- ------- ------- ------- -------- -------
- ------- ------- ------- -------
Pretax result 4,398 5,331 5,980 5,876 21,585 42% 1,049
1,283 875 1,553 4,760
======= ======= ======= ====== ======= ======== =======
======= ======= ======= =======
CORPORATE AND OTHER (1)
(in thousands of $'s)
Fiscal 2005
Increase(Decrease) From Fiscal 2004
--------------------------------------- -----------------
- ----------------------
First Second Third Fourth First Second
Third Fourth
Quarter Quarter Quarter Quarter YTD Quarter Quarter
Quarter Quarter YTD
------- ------- ------- ------- ------- ------- ------- -
- ------ ------- -------
Interest income 42 51 43 47 183 5 11
3 7 26
Rental income 19 53 318 360 750 -- 7
298 313 618
------- ------- ------- ------- ------- ------- ------- -
- ------ ------- -------
61 104 361 407 933 5 18
301 320 644
SG&A expense 530 245 223 287 1,285 188 (51)
(72) 147 212
R&D-CCX losses -- -- -- -- -- (436) (828)
(519) (654) (2,437)
R&D-DGI losses -- -- -- -- -- (172) (125)
(47) (20) (364)
Other-Hemerus losses 74 73 85 74 306 74 73
62 45 254
Interest expense 164 178 193 206 741 (11) 6
26 42 63
Building expense 364 478 527 332 1,701 183 283
177 81 724
Impairment loss -- -- -- -- -- -- --
- -- (1,523) (1,523)
------- ------- ------- ------- ------- ------- ------- -
- ------ ------- -------
1,132 974 1,028 899 4,033 (174) (642)
(373) (1,882) (3,071)
------- ------- ------- ------- ------- ------- ------- -
- ------ ------- -------
Pretax result (1,071) (870) (667) (492) (3,100) 179 660
674 2,202 3,715
======= ======= ======= ======= ======= ======= =======
======= ======= =======
(1) Unallocated corporate expenses and Techne's share of
losses by ChemoCentryx, Inc. (CCX), Discovery Genomics, Inc.
(DGI) and Hemerus Medical, LLC.