SEGMENT INFORMATION
TECHNE CORPORATION AND SUBISIDARIES
(in thousands of $'s, except per share data)
Increase (Decrease)
Fiscal 2008 From Fiscal 2007
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First Second Percent First Second
Quarter Quarter YTD Of Sales Quarter Quarter YTD
------- ------- ------- -------- ------- ------- -------
Sales 57,987 62,142 120,129 100% 5,636 9,633 15,269
Cost of sales 12,104 12,751 24,855 21% 867 2,037 2,904
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Gross margin 45,883 49,391 95,274 79% 4,769 7,596 12,365
Gross margin
percentage 79.1% 79.5% 79.3%
SG&A expense 8,090 10,645 18,735 15% 1,023 1,815 2,838
R&D expense 5,181 5,562 10,743 9% 326 518 844
Amortization expense 288 282 570 -- (115) (122) (237)
Interest expense 0 0 0 -- (268) (815) (1,083)
Interest income (2,998) (3,252) (6,250) (5%) (1,322) (1,296) (2,618)
Other non-operating
expense, net 569 573 1,142 1% 84 145 229
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11,130 13,810 24,940 20% (272) 245 (27)
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Earnings before
income taxes 34,753 35,581 70,334 59% 5,041 7,351 12,392
Income taxes 11,681 11,942 23,623 20% 1,600 2,375 3,975
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23,072 23,639 46,711 39% 3,441 4,976 8,417
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Diluted earnings
per share .58 .60 1.18
Weighted average
diluted shares
outstanding 39,587 39,497 39,542
BIOTECHNOLOGY (1)
(in thousands of $'s)
Increase (Decrease)
Fiscal 2008 From Fiscal 2007
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First Second Percent First Second
Quarter Quarter YTD Of Sales Quarter Quarter YTD
------- ------- ------- -------- ------- ------- -------
Sales 45,328 46,576 91,904 100% 3,707 6,503 10,210
Intersegment sales (6,447) (7,433)(13,880 (748) (786) (1,534)
------- ------- ------- ------- ------- -------
38,881 39,143 78,024 2,959 5,717 8,676
Cost of sales 8,997 9,612 18,609 20% 515 1,929 2,444
Intersegment sales (6,174) (7,430)(13,604) (650) (995) (1,645)
------- ------- ------- ------- ------- -------
2,823 2,182 5,005 (135) 934 799
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Gross margin 36,058 36,961 73,019 80% 3,094 4,783 7,877
Gross margin
percentage 80.2% 79.4% 79.8%
SG&A expense 4,624 5,534 10,158 11% 611 870 1,481
R&D expense 5,002 5,368 10,370 11% 327 514 841
Amortization expense 288 282 570 1% (115) (122) (237)
Interest, net (1,257) (1,309) (2,566) (3%) (662) (587) (1,249)
Exchange loss/(gain) 34 12 46 -- 34 12 46
------- ------- ------- -------- ------- ------- -------
8,691 9,887 18,578 20% 195 687 882
------- ------- ------- -------- ------- ------- -------
Pretax result 27,367 27,074 54,441 60% 2,899 4,096 6,995
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(1) Includes R&D Systems' Biotechnology Division, BiosPacific, Inc.
and R&D China
R&D SYSTEMS EUROPE
(in thousands of British pounds)
Increase (Decrease)
Fiscal 2008 From Fiscal 2007
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First Second Percent First Second
Quarter Quarter YTD Of Sales Quarter Quarter YTD
------- ------- ------- -------- ------- ------- -------
Sales 7,605 9,301 16,906 100% 735 1,450 2,185
Cost of sales 3,455 4,053 7,508 44% 170 287 457
------- ------- ------- -------- ------- ------- -------
Gross margin 4,150 5,248 9,398 56% 565 1,163 1,728
Gross margin
percentage 54.6% 56.4% 55.6%
SG&A expense 1,114 1,276 2,390 14% 40 40 80
Interest income (683) (773) (1,456) (8%) (273) (293) (566)
Exchange loss/(gain) (96) (81) (177) (1%) (174) (17) (191)
------- ------- ------- -------- ------- ------- -------
335 422 757 5% (407) (270) (677)
------- ------- ------- -------- ------- ------- -------
Pretax result 3,815 4,826 8,641 51% 972 1,433 2,405
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R&D SYSTEMS EUROPE
(in thousands of $'s)
Increase (Decrease)
Fiscal 2008 From Fiscal 2007
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First Second Percent First Second
Quarter Quarter YTD Of Sales Quarter Quarter YTD
------- ------- ------- -------- ------- ------- -------
Sales 15,449 19,027 34,476 100% 2,522 3,770 6,292
Cost of sales 7,020 8,293 15,313 44% 839 974 1,813
------- ------- ------- -------- ------- ------- -------
Gross margin 8,429 10,734 19,163 56% 1,683 2,796 4,479
Gross margin
percentage 54.6% 56.4% 55.6%
SG&A expense 2,262 2,599 4,861 14% 242 194 436
Interest income (1,387) (1,576) (2,963) (9%) (616) (643) (1,259)
Exchange loss (198) (165) (363) (1%) (345) (39) (384)
------- ------- ------- -------- ------- ------- -------
677 858 1,535 5% (719) (488) (1,207)
------- ------- ------- -------- ------- ------- -------
Pretax result 7,752 9,876 17,628 51% 2,402 3,284 5,686
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HEMATOLOGY
(in thousands of $'s)
Increase (Decrease)
Fiscal 2008 From Fiscal 2007
-------------------------------- -----------------------
First Second Percent First Second
Quarter Quarter YTD Of Sales Quarter Quarter YTD
------- ------- ------- -------- ------- ------- -------
Sales 3,657 3,972 7,629 100% 155 146 301
Cost of sales 2,261 2,276 4,537 59% 163 129 292
------- ------- ------- -------- ------- ------- -------
Gross margin 1,396 1,696 3,092 41% (8) 17 9
Gross margin
percentage 38.2% 42.7% 40.5%
SG&A expense 467 487 954 13% 69 48 117
R&D expense 179 194 373 5% (1) 4 3
Interest, net (120) (125) (245) (3%) (39) (30) (69)
------- ------- ------- -------- ------- ------- -------
526 556 1,082 15% 29 22 51
------- ------- ------- -------- ------- ------- -------
Pretax result 870 1,140 2,010 26% (37) (5) (42)
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CORPORATE AND OTHER (2)
(in thousands of $'s)
Increase (Decrease)
Fiscal 2008 From Fiscal 2007
----------------------- -----------------------
First Second First Second
Quarter Quarter YTD Quarter Quarter YTD
------- ------- ------- ------- ------- -------
Interest income 234 242 476 5 36 41
Rental income 67 111 178 (232) (130) (362)
------- ------- ------- ------- ------- -------
301 353 654 (227) (94) (321)
SG&A expense 737 2,025 2,762 101 703 804
Interest expense -- -- -- (268) (815) (1,083)
Other-Building expenses 544 600 1,144 34 51 85
Other-Hemerus losses 131 113 244 4 (10) (6)
Other-Nephromics losses 125 124 249 125 1 126
------- ------- ------- ------- ------- -------
1,537 2,862 4,399 (4) (70) (74)
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Pretax result (1,236) (2,509) (3,745) (223) (24) (247)
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(2) Unallocated corporate expenses and Techne's share of losses
by Hemerus Medical, LLC and Nephromics, LLC.