SEGMENT INFORMATION
TECHNE CORPORATION AND SUBISIDARIES
(in thousands of $'s, except per share data)
Increase (Decrease)
Fiscal 2007 From Fiscal 2006
------------------------------------------------ --------------------------------------
First Second Third Fourth Percent First Second Third Fourth
Quarter Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter Quarter YTD
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Sales 52,351 52,509 60,197 58,425 223,482 100% 4,642 4,480 5,384 6,359 20,865
Cost of sales 11,237 10,714 12,019 12,697 46,667 21% 141 19 (86) 875 949
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Gross margin 41,114 41,795 48,178 45,728 176,815 79% 4,501 4,461 5,470 5,484 19,916
Gross margin
percentage 78.5% 79.6% 80.0% 78.3% 79.1%
SG&A expense 7,067 8,830 7,229 7,839 30,965 14% 613 850 328 1,570 3,361
R&D expense 4,855 5,044 5,169 5,014 20,082 9% 138 470 408 241 1,257
Amortization
expense 403 404 403 404 1,614 1% (89) (88) (89) (87) (353)
Interest expense 268 815 0 0 1,083 0% 45 577 (245) (258) 119
Interest income (1,676) (1,956) (2,237) (2,565) (8,434) (4%) (702) (826) (1,155) (1,043)(3,726)
Other non-opera-
ting ex., net 485 428 767 894 2,574 1% 274 147 538 531 1,490
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11,402 13,565 11,331 11,586 47,884 21% 279 1,130 (215) 954 2,148
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Earnings before
income taxes 29,712 28,230 36,847 34,142 128,931 58% 4,222 3,331 5,685 4,530 17,768
Income taxes 10,081 9,567 12,954 11,218 43,820 20% 1,592 1,182 2,139 1,095 6,008
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19,631 18,663 23,893 22,924 85,111 38% 2,630 2,149 3,546 3,435 11,760
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Diluted earnings
per share .50 .47 .60 .58 2.15
Weighted average
diluted shares
outstanding 39,469 39,511 39,543 39,555 39,513
BIOTECHNOLOGY (1)
(in thousands of $'s)
Increase (Decrease)
Fiscal 2007 From Fiscal 2006
------------------------------------------------ --------------------------------------
First Second Third Fourth Percent First Second Third Fourth
Quarter Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
Sales 41,621 40,073 46,202 44,788 172,684 100% 4,022 2,376 3,189 4,712 14,299
Intersegment
sales (5,699) (6,647) (7,072) (6,652)(26,070) (400) (92) (676) (941)(2,109)
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35,922 33,426 39,130 38,136 146,614 3,622 2,284 2,513 3,771 12,190
Cost of sales 8,482 7,683 9,041 9,577 34,783 20% 12 (464) (84) 980 444
Intersegment
sales (5,524) (6,435) (7,147) (6,679)(25,785) (201) (295) (669) (922)(2,087)
------- ------- ------- ------- ------- ------- ------- ------- ------- ------
2,958 1,248 1,894 2,898 8,998 (189) (759) (753) 58 (1,643)
Gross margin 32,964 32,178 37,236 35,238 137,616 80% 3,811 3,043 3,266 3,713 13,833
Gross margin
percentage 79.6% 80.8% 80.4% 78.6% 79.9%
SG&A expense 4,013 4,664 4,166 4,617 17,460 10% 374 470 (33) 1,207 2,018
R&D expense 4,675 4,854 4,971 4,833 19,333 11% 143 450 378 248 1,219
Amortization
expense 403 404 403 404 1,614 2% (89) (88) (89) (87) (353)
Interest, net (595) (722) (841) (1,031) (3,189) (2%) (327) (349) (556) (530)(1,762)
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
8,496 9,200 8,699 8,823 35,218 21% 101 483 (300) 838 1,122
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
Pretax result 24,468 22,978 28,537 26,415 102,398 59% 3,710 2,560 3,566 2,875 12,711
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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 Third Fourth Percent First Second Third Fourth
Quarter Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
Sales 6,870 7,851 8,854 8,154 31,729 100% 180 322 598 876 1,976
Cost of sales 3,285 3,766 4,091 3,797 14,939 47% (7) 1 (100) 167 61
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Gross margin 3,585 4,085 4,763 4,357 16,790 53% 187 321 698 709 1,915
Gross margin
percentage 52.2% 52.0% 53.8% 53.4% 52.9%
SG&A expense 1,074 1,236 1,075 1,113 4,498 14% 70 51 5 (2) 124
Interest income (410) (480) (542) (595) (2,027) (6%) (84) (151) (200) (226) (661)
Exchange loss
/(gain) 78 (64) 22 6 42 -- 63 (90) 71 15 59
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742 692 555 524 2,513 8% 49 (190) (124) (213) (478)
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
Pretax result 2,843 3,393 4,208 3,833 14,277 45% 138 511 822 922 2,393
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R&D SYSTEMS EUROPE
(in thousands of $'s)
Increase (Decrease)
Fiscal 2007 From Fiscal 2006
------------------------------------------------ --------------------------------------
First Second Third Fourth Percent First Second Third Fourth
Quarter Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
Sales 12,927 15,257 17,403 16,179 61,766 100% 1,052 2,151 2,907 2,702 8,812
Cost of sales 6,181 7,319 8,040 7,541 29,081 47% 337 765 682 818 2,602
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Gross margin 6,746 7,938 9,363 8,638 32,685 53% 715 1,386 2,225 1,884 6,210
Gross margin
percentage 52.2% 52.0% 53.8% 53.4% 52.9%
SG&A expense 2,020 2,405 2,112 2,219 8,756 14% 238 346 233 155 972
Interest income (771) (933) (1,067) (1,174) (3,945) (6%) (192) (361) (467) (494)(1,514)
Exchange loss
/(gain) 147 (126) 42 19 82 -- 119 (172) 129 36 112
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1,396 1,346 1,087 1,064 4,893 8% 165 (187) (105) (303) (430)
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
Pretax result 5,350 6,592 8,276 7,574 27,792 45% 550 1,573 2,330 2,187 6,640
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HEMATOLOGY
(in thousands of $'s)
Increase (Decrease)
Fiscal 2007 From Fiscal 2006
------------------------------------------------ --------------------------------------
First Second Third Fourth Percent First Second Third Fourth
Quarter Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
Sales 3,502 3,826 3,664 4,110 15,102 100% (32) 45 (36) (114) (137)
Cost of sales 2,098 2,147 2,085 2,258 8,588 57% (7) 13 (15) (1) (10)
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Gross margin 1,404 1,679 1,579 1,852 6,514 43% (25) 32 (21) (113) (127)
Gross margin
percentage 40.1% 43.9% 43.1% 45.1% 43.1%
SG&A expense 398 439 431 422 1,690 11% 14 15 (10) 46 65
R&D expense 180 190 198 181 749 5% (5) 20 30 (7) 38
Interest, net (81) (95) (111) (136) (423) (3%) (44) (45) (71) (62) (222)
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497 534 518 467 2,016 13% (35) (10) (51) (23) (119)
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
Pretax result 907 1,145 1,061 1,385 4,498 30% 10 42 30 (90) (8)
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CORPORATE AND OTHER (2)
(in thousands of $'s)
Increase (Decrease)
Fiscal 2007 From Fiscal 2006
--------------------------------------- --------------------------------------
First Second Third Fourth First Second Third Fourth
Quarter Quarter Quarter Quarter YTD Quarter Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- ------- ------- ------- ------- ------
Interest income 229 206 218 224 877 139 71 61 (43) 228
Rental income 299 241 55 91 686 (43) (96) (232) (229) (600)
------- ------- ------- ------- ------- ------- ------- ------- ------- ------
528 447 273 315 1,563 96 (25) (171) (272) (372)
SG&A expense 636 1,322 520 581 3,059 (13) 19 138 162 306
Interest expense 268 815 0 0 1,083 45 577 (245) (258) 119
Other-Building
expenses 510 549 519 634 2,212 67 59 (1) 105 230
Other-Hemerus
losses 127 123 119 169 538 45 41 36 (2) 120
Other-Nephromics
losses -- 123 142 163 428 -- 123 142 163 428
------- ------- ------- ------- ------- ------- ------- ------- ------- ------
1,541 2,932 1,300 1,547 7,320 144 819 70 170 1,203
------- ------- ------- ------- ------- ------- ------- ------- ------- ------
Pretax result (1,013) (2,485) (1,027) (1,232) (5,757) (48) (844) (241) (442)(1,575)
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(2) Unallocated corporate expenses and Techne's share
of losses by Hemerus Medical, LLC and Nephromics, LLC.