SEGMENT INFORMATION
TECHNE CORPORATION AND SUBISIDARIES
(in thousands of $'s, except per share data)
Increase (Decrease)
Fiscal 2007 From Fiscal 2006
-------------------------------- -----------------------
First Second Percent First Second
Quarter Quarter YTD Of Sales Quarter Quarter YTD
------- ------- ------- -------- ------- ------- -------
Sales 52,351 52,509 104,860 100% 4,642 4,480 9,122
Cost of sales 11,237 10,714 21,951 21% 141 19 160
------ ------ ------- ------- ------ ------ ------
Gross margin 41,114 41,795 82,909 79% 4,501 4,461 8,962
Gross margin
percentage 78.5% 79.6% 79.1%
SG&A expense 7,067 8,830 15,897 15% 613 850 1,463
R&D expense 4,855 5,044 9,899 9% 138 470 608
Amortization expense 403 404 807 1% (89) (88) (177)
Interest expense 268 815 1,083 1% 45 577 622
Interest income (1,676) (1,956) (3,632) (3%) (702) (826) (1,528)
Other non-operating
ex., net 485 428 913 1% 274 147 421
------ ------ ------- ------- ------ ------ ------
11,402 13,565 24,967 24% 279 1,130 1,409
------ ------ ------- ------- ------ ------ ------
Earnings before
income taxes 29,712 28,230 57,942 55% 4,222 3,331 7,553
Income taxes 10,081 9,567 19,648 18% 1,592 1,182 2,774
------ ------ ------- ------- ------ ------ ------
19,631 18,663 38,294 37% 2,630 2,149 4,779
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Diluted earnings
per share 0.50 0.47 0.97
Weighted average
diluted shares
outstanding 39,469 39,511 39,483
BIOTECHNOLOGY (1)
(in thousands of $'s)
Increase (Decrease)
Fiscal 2007 From Fiscal 2006
-------------------------------- -----------------------
First Second Percent First Second
Quarter Quarter YTD Of Sales Quarter Quarter YTD
------- ------- ------- -------- ------- ------- -------
Sales 41,621 40,073 81,694 100% 4,022 2,376 6,398
Intersegment sales (5,699) (6,647)(12,346) (400) (92) (492)
------ ------ ------- ------- ------ ------ ------
35,922 33,426 69,348 3,622 2,284 5,906
Cost of sales 8,482 7,683 16,165 20% 12 (464) (452)
Intersegment sales (5,524) (6,435)(11,959) (201) (295) (496)
------ ------ ------- ------- ------ ------ ------
2,958 1,248 4,206 (189) (759) (948)
Gross margin 32,964 32,178 65,142 80% 3,811 3,043 6,854
Gross margin
percentage 79.6% 80.8% 80.2%
SG&A expense 4,013 4,664 8,677 11% 374 470 844
R&D expense 4,675 4,854 9,529 12% 143 450 593
Amortization expense 403 404 807 1% (89) (88) (177)
Interest, net (595) (722) (1,317) (2%) (327) (349) (676)
------ ------ ------- ------- ------ ------ ------
8,496 9,200 17,696 22% 101 483 584
------ ------ ------- ------- ------ ------ ------
Pretax result 24,468 22,978 47,446 58% 3,710 2,560 6,270
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(1) 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 2007 From Fiscal 2006
-------------------------------- -----------------------
First Second Percent First Second
Quarter Quarter YTD Of Sales Quarter Quarter YTD
------- ------- ------- -------- ------- ------- -------
Sales 6,870 7,851 14,721 100% 180 322 502
Cost of sales 3,285 3,766 7,051 48% (7) 1 (6)
------ ------ ------- ------- ------ ------ ------
Gross margin 3,585 4,085 7,670 52% 187 321 508
Gross margin
percentage 52.2% 52.0% 52.1%
SG&A expense 1,074 1,236 2,310 16% 70 51 121
Interest income (410) (480) (890) (6%) (84) (151) (235)
Exchange loss/(gain) 78 (64) 14 -- 63 (90) (27)
------ ------ ------- ------- ------ ------ ------
742 692 1,434 10% 49 (190) (141)
------ ------ ------- ------- ------ ------ ------
Pretax result 2,843 3,393 6,236 42% 138 511 649
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R&D SYSTEMS EUROPE
(in thousands of $'s)
Increase (Decrease)
Fiscal 2007 From Fiscal 2006
-------------------------------- -----------------------
First Second Percent First Second
Quarter Quarter YTD Of Sales Quarter Quarter YTD
------- ------- ------- -------- ------- ------- -------
Sales 12,927 15,257 28,184 100% 1,052 2,151 3,203
Cost of sales 6,181 7,319 13,500 48% 337 765 1,102
------ ------ ------- ------- ------ ------ ------
Gross margin 6,746 7,938 14,684 52% 715 1,386 2,101
Gross margin
percentage 52.2% 52.0% 52.1%
SG&A expense 2,020 2,405 4,425 16% 238 346 584
Interest income (771) (933) (1,704) (6%) (192) (361) (553)
Exchange loss 147 (126) 21 -- 119 (172) (53)
------ ------ ------- ------- ------ ------ ------
1,396 1,346 2,742 10% 165 (187) (22)
------ ------ ------- ------- ------ ------ ------
Pretax result 5,350 6,592 11,942 42% 550 1,573 2,123
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HEMATOLOGY
(in thousands of $'s)
Increase (Decrease)
Fiscal 2007 From Fiscal 2006
-------------------------------- -----------------------
First Second Percent First Second
Quarter Quarter YTD Of Sales Quarter Quarter YTD
------- ------- ------- -------- ------- ------- -------
Sales 3,502 3,826 7,328 100% (32) 45 13
Cost of sales 2,098 2,147 4,245 58% (7) 13 6
------- ------- ------- -------- ------- ------- -------
Gross margin 1,404 1,679 3,083 42% (25) 32 7
Gross margin
percentage 40.1% 43.9% 42.1%
SG&A expense 398 439 837 11% 14 15 29
R&D expense 180 190 370 5% (5) 20 15
Interest, net (81) (95) (176) (2%) (44) (45) (89)
------- ------- ------- -------- ------- ------- -------
497 534 1,031 14% (35) (10) (45)
------- ------- ------- -------- ------- ------- -------
Pretax result 907 1,145 2,052 28% 10 42 52
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CORPORATE AND OTHER (2)
(in thousands of $'s)
Increase (Decrease)
Fiscal 2007 From Fiscal 2006
----------------------- -----------------------
First Second First Second
Quarter Quarter YTD Quarter Quarter YTD
------- ------- ------- ------- ------- -------
Interest income 229 206 435 139 71 210
Rental income 299 241 540 (43) (96) (139)
------- ------- ------- ------- ------- -------
528 447 975 96 (25) 71
SG&A expense 636 1,322 1,958 (13) 19 6
Interest expense 268 815 1,083 45 577 622
Other-Building expenses 510 549 1,059 67 59 126
Other-Hemerus losses 127 123 250 45 41 86
Other-Nephromics losses -- 123 123 -- 123 123
------- ------- ------- ------- ------- -------
1,541 2,932 4,473 144 819 963
------- ------- ------- ------- ------- -------
Pretax result (1,013) (2,485) (3,498) (48) (844) (892)
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(2) Unallocated corporate expenses and Techne's share of losses by Hemerus
Medical, LLC and Nephromics, LLC.