SEGMENT INFORMATION
TECHNE CORPORATION AND SUBISIDARIES
(in thousands of $'s, except per share data)
Increase(Decrease)
Fiscal 2006 From Fiscal 2005
-------------------------------- ----------------------
First Second Percent First Second
Quarter Quarter YTD Of Sales Quarter Quarter YTD
------- ------- ------ -------- ------- ------- ------
Sales 47,709 48,029 95,738 100% 6,790 5,782 12,572
Cost of sales 11,096 10,695 21,791 23% 2,209 1,754 3,963
------- ------- ------ -------- ------- ------- ------
Gross margin 36,613 37,334 73,947 77% 4,581 4,028 8,609
Gross margin
percentage 76.7% 77.7% 77.2%
SG&A expense 6,454 7,980 14,434 15% 820 1,690 2,510
R&D expense 4,717 4,574 9,291 10% 29 (45) (16)
Amortization expense 492 492 984 1% 187 186 373
Interest expense 223 238 461 -- (22) 60 38
Interest income (974) (1,130) (2,104) (2%) 79 59 138
Other non-operating
ex., net 211 281 492 -- (255) (135) (390)
------- ------- ------ -------- ------- ------- ------
11,123 12,435 23,558 24% 838 1,815 2,653
------- ------- ------ -------- ------- ------- ------
Earnings before
income taxes 25,490 24,899 50,389 53% 3,743 2,213 5,956
Income taxes 8,489 8,385 16,874 18% 934 633 1,567
------- ------- ------ -------- ------- ------- ------
17,001 16,514 33,515 35% 2,809 1,580 4,389
Diluted earnings
per share 0.43 0.42 0.84
Weighted average
diluted shares
outstanding 39,669 39,761 39,730
BIOTECHNOLOGY (1)
(in thousands of $'s)
Increase(Decrease)
Fiscal 2006 From Fiscal 2005
--------------------------------- ----------------------
First Second Percent First Second
Quarter Quarter YTD Of Sales Quarter Quarter YTD
------- ------- ------- -------- ------- ------- ------
Sales 37,599 37,697 75,296 100% 6,908 7,625 14,533
Intersegment sales (5,299) (6,555) (11,854) (495) (1,351)(1,846)
------- ------- ------- ------- ------- ------
32,300 31,142 63,442 6,413 6,274 12,687
Cost of sales 8,470 8,147 16,617 22% 2,359 2,077 4,436
Intersegment sales (5,323) (6,140) (11,463) (567) (930)(1,497)
------- ------- ------- -------- ------- ------- ------
3,147 2,007 5,154 1,792 1,147 2,939
Gross margin 29,153 29,135 58,288 78% 4,621 5,127 9,748
Gross margin
percentage 77.5% 78.4% 77.9%
SG&A expense 3,639 4,194 7,833 10% 666 779 1,445
R&D expense 4,532 4,404 8,936 12% 32 (26) 6
Amortization expense 492 492 984 1% 187 186 373
Interest, net (268) (373) (641) -- 146 191 337
------- ------- ------- -------- ------- ------- ------
8,395 8,717 17,112 23% 1,031 1,130 2,161
------- ------- ------- -------- ------- ------- ------
Pretax result 20,758 20,418 41,176 55% 3,590 3,997 7,587
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(1) Fiscal 2006 includes R&D Systems' Biotechnology Division, Fortron Bio
Science, Inc., and BiosPacific, Inc.
R&D SYSTEMS EUROPE
(in thousands of British pounds)
Increase(Decrease)
Fiscal 2006 From Fiscal 2005
--------------------------------- ----------------------
First Second Percent First Second
Quarter Quarter YTD Of Sales Quarter Quarter YTD
------- ------- ------- -------- ------- ------- ------
Sales 6,690 7,529 14,219 100% 610 721 1,331
Cost of sales 3,292 3,765 7,057 50% 361 632 993
------- ------- ------- -------- ------- ------- ------
Gross margin 3,398 3,764 7,162 50% 249 89 338
Gross margin
percentage 50.8% 50.0% 50.4%
SG&A expense 1,004 1,185 2,189 15% 54 24 78
Interest income (326) (329) (655) (4%) (72) (66) (138)
Exchange loss 15 26 41 -- (11) 70 59
------- ------- ------- -------- ------- ------- ------
693 882 1,575 11% (29) 28 (1)
------- ------- ------- -------- ------- ------- ------
Pretax result 2,705 2,882 5,587 39% 278 61 339
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R&D SYSTEMS EUROPE
(in thousands of $'s)
Increase(Decrease)
Fiscal 2006 From Fiscal 2005
--------------------------------- ----------------------
First Second Percent First Second
Quarter Quarter YTD Of Sales Quarter Quarter YTD
------- ------- ------- -------- ------- ------- ------
Sales 11,875 13,106 24,981 100% 856 242 1,098
Cost of sales 5,844 6,554 12,398 50% 532 636 1,168
------- ------- ------- -------- ------- ------- ------
Gross margin 6,031 6,552 12,583 50% 324 (394) (70)
Gross margin
percentage 50.8% 50.0% 50.4%
SG&A expense 1,782 2,059 3,841 15% 60 (135) (75)
Interest income (579) (572) (1,151) (4%) (119) (75) (194)
Exchange loss 28 46 74 -- (19) 128 109
------- ------- ------- -------- ------- ------- ------
1,231 1,533 2,764 11% (78) (82) (160)
------- ------- ------- -------- ------- ------- ------
Pretax result 4,800 5,019 9,819 39% 402 (312) 90
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HEMATOLOGY
(in thousands of $'s)
Increase(Decrease)
Fiscal 2006 From Fiscal 2005
--------------------------------- ----------------------
First Second Percent First Second
Quarter Quarter YTD Of Sales Quarter Quarter YTD
------- ------- ------- -------- ------- ------- ------
Sales 3,534 3,781 7,315 100% (479) (734)(1,213)
Cost of sales 2,105 2,134 4,239 58% (115) (29) (144)
------- ------- ------- -------- ------- ------- ------
Gross margin 1,429 1,647 3,076 42% (364) (705)(1,069)
Gross margin
percentage 40.4% 43.6% 42.1%
SG&A expense 384 424 808 11% (25) (12) (37)
R&D expense 185 170 355 5% (3) (19) (22)
Interest, net (37) (50) (87) (1%) 19 27 46
------- ------- ------- -------- ------- ------- ------
532 544 1,076 15% (9) (4) (13)
------- ------- ------- -------- ------- ------- ------
Pretax result 897 1,103 2,000 27% (355) (701)(1,056)
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CORPORATE AND OTHER (2)
(in thousands of $'s)
Increase(Decrease)
Fiscal 2006 From Fiscal 2005
------------------------ ----------------------
First Second First Second
Quarter Quarter YTD Quarter Quarter YTD
------- ------- ------- ------- ------- ------
Interest income 90 135 225 48 84 132
Rental income 342 337 679 323 284 607
------- ------- ------- ------- ------- ------
432 472 904 371 368 739
SG&A expense 649 1,303 1,952 119 1,058 1,177
Interest expense 223 238 461 59 60 119
Other-Hemerus losses 82 82 164 79 12 91
Other-Building expenses 443 490 933 8 9 17
------- ------- ------- ------- ------- ------
1,397 2,113 3,510 265 1,139 1,404
------- ------- ------- ------- ------- ------
Pretax result (965) (1,641) (2,606) 106 (771) (665)
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(2) Unallocated corporate expenses and Techne's share of losses by Hemerus
Medical, LLC.