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 Third Percent First Second Third
Qtr Qtr Qtr YTD Of Sales Qtr Qtr Qtr YTD
------ ------ ------ ------- -------- ------ ------ ------ ------
Sales 57,987 62,142 69,522 189,651 100% 5,636 9,633 9,325 24,594
Cost of sales 12,104 12,751 14,146 39,001 21% 867 2,037 2,127 5,031
------ ------ ------ ------- -------- ------ ------ ------ ------
Gross margin 45,883 49,391 55,376 150,650 79% 4,769 7,596 7,198 19,563
Gross margin
percentage 79.1% 79.5% 79.7% 79.4%
SG&A expense 8,090 10,645 8,994 27,729 15% 1,023 1,815 1,765 4,603
R&D expense 5,181 5,562 5,839 16,582 9% 326 518 670 1,514
Amortization expense 288 282 283 853 - (115) (122) (120) (357)
Interest expense 0 0 0 0 - (268) (815) 0 (1,083)
Interest income (2,998) (3,252) (3,155) (9,405) (5%) (1,322) (1,296) (918) (3,536)
Other non-operating
expense, net 569 573 423 1,565 - 84 145 (344) (115)
------ ------ ------ ------- -------- ------ ------ ------ ------
11,130 13,810 12,384 37,324 19% (272) 245 1,053 1,026
------ ------ ------ ------- -------- ------ ------ ------ ------
Earnings before
income taxes 34,753 35,581 42,992 113,326 60% 5,041 7,351 6,145 18,537
Income taxes 11,681 11,942 13,402 37,025 20% 1,600 2,375 448 4,423
------ ------ ------ ------- -------- ------ ------ ------ ------
23,072 23,639 29,590 76,301 40% 3,441 4,976 5,697 14,114
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Diluted earnings
per share .58 .60 .76 1.94
Weighted average
diluted shares
outstanding 39,587 39,497 39,108 39,396
BIOTECHNOLOGY (1)
(in thousands of $'s)
Increase (Decrease)
Fiscal 2008 From Fiscal 2007
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First Second Third Percent First Second Third
Qtr Qtr Qtr YTD Of Sales Qtr Qtr Qtr YTD
------ ------ ------ ------- -------- ------ ------ ------ ------
Sales 45,328 46,576 52,912 144,816 100% 3,707 6,503 6,710 16,920
Intersegment sales (6,447) (7,433) (7,822) (21,702) (748) (786) (750) (2,284)
------ ------ ------ ------- ------ ------ ------ ------
38,881 39,143 45,090 123,114 2,959 5,717 5,960 14,636
Cost of sales 8,997 9,612 10,709 29,318 20% 515 1,929 1,668 4,112
Intersegment sales (6,174) (7,430) (7,755) (21,359) (650) (995) (608) (2,253)
------ ------ ------ ------- ------ ------ ------ ------
2,823 2,182 2,954 7,959 (135) 934 1,060 1,859
Gross margin 36,058 36,961 42,136 115,155 80% 3,094 4,783 4,900 12,777
Gross margin
percentage 80.2% 79.4% 79.8% 79.8%
SG&A expense 4,624 5,534 5,257 15,415 11% 611 870 1,091 2,572
R&D expense 5,002 5,368 5,640 16,010 11% 327 514 669 1,510
Amortization expense 288 282 283 853 1% (115) (122) (120) (357)
Interest, net (1,257) (1,309) (1,285) (3,851) (3%) (662) (587) (444) (1,693)
Exchange loss/(gain) 34 12 (5) 41 -- 34 12 (5) 41
------ ------ ------ ------- -------- ------ ------ ------ ------
8,691 9,887 9,890 28,468 20% 195 687 1,191 2,073
------ ------ ------ ------- -------- ------ ------ ------ ------
Pretax result 27,367 27,074 32,246 86,687 60% 2,899 4,096 3,709 10,704
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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 Third Percent First Second Third
Qtr Qtr Qtr YTD Of Sales Qtr Qtr Qtr YTD
------ ------ ------ ------- -------- ------ ------ ------ ------
Sales 7,605 9,301 10,180 27,086 100% 735 1,450 1,326 3,511
Cost of sales 3,455 4,053 4,392 11,900 44% 170 287 301 758
------ ------ ------ ------- -------- ------ ------ ------ ------
Gross margin 4,150 5,248 5,788 15,186 56% 565 1,163 1,025 2,753
Gross margin
percentage 54.6% 56.4% 56.9% 56.1%
SG&A expense 1,114 1,276 1,163 3,553 13% 40 40 88 168
Interest income (683) (773) (762) (2,218) (8%) (273) (293) (220) (786)
Exchange loss/(gain) (96) (81) (230) (407) (2%) (174) (17) (252) (443)
------ ------ ------ ------- -------- ------ ------ ------ ------
335 422 171 928 3% (407) (270) (384) (1,061)
------ ------ ------ ------- -------- ------ ------ ------ ------
Pretax result 3,815 4,826 5,617 14,258 53% 972 1,433 1,409 3,814
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R&D SYSTEMS EUROPE
(in thousands of $'s)
Increase (Decrease)
Fiscal 2008 From Fiscal 2007
---------------------------------------- ------------------------------
First Second Third Percent First Second Third
Qtr Qtr Qtr YTD Of Sales Qtr Qtr Qtr YTD
------ ------ ------ ------- -------- ------ ------ ------ ------
Sales 15,449 19,027 20,226 54,702 100% 2,522 3,770 2,823 9,115
Cost of sales 7,020 8,293 8,726 24,039 44% 839 974 686 2,499
------ ------ ------ ------- -------- ------ ------ ------ ------
Gross margin 8,429 10,734 11,500 30,663 56% 1,683 2,796 2,137 6,616
Gross margin
percentage 54.6% 56.4% 56.9% 56.1%
SG&A expense 2,262 2,599 2,311 7,172 13% 242 194 199 635
Interest income (1,387) (1,576) (1,514) (4,477) (8%) (616) (643) (447) (1,706)
Exchange loss/gain) (198) (165) (457) (820) (2%) (345) (39) (499) (883)
------ ------ ------ ------- -------- ------ ------ ------ ------
677 858 340 1,875 3% (719) (488) (747) (1,954)
------ ------ ------ ------- -------- ------ ------ ------ ------
Pretax result 7,752 9,876 11,160 28,788 53% 2,402 3,284 2,884 8,570
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HEMATOLOGY
(in thousands of $'s)
Increase (Decrease)
Fiscal 2008 From Fiscal 2007
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First Second Third Percent First Second Third
Qtr Qtr Qtr YTD Of Sales Qtr Qtr Qtr YTD
------ ------ ------ ------- -------- ------ ------ ------ ------
Sales 3,657 3,972 4,206 11,835 100% 155 146 542 843
Cost of sales 2,261 2,276 2,466 7,003 59% 163 129 381 673
------ ------ ------ ------- -------- ------ ------ ------ ------
Gross margin 1,396 1,696 1,740 4,832 41% (8) 17 161 170
Gross margin
percentage 38.2% 42.7% 41.4% 40.8%
SG&A expense 467 487 489 1,443 12% 69 48 58 175
R&D expense 179 194 199 572 5% (1) 4 1 4
Interest, net (120) (125) (123) (368) (3%) (39) (30) (12) (81)
------ ------ ------ ------- -------- ------ ------ ------ ------
526 556 565 1,647 14% 29 22 47 98
------ ------ ------ ------- -------- ------ ------ ------ ------
Pretax result 870 1,140 1,175 3,185 27% (37) (5) 114 72
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CORPORATE AND OTHER (2)
(in thousands of $'s)
Increase (Decrease)
Fiscal 2008 From Fiscal 2007
------------------------------- ------------------------------
First Second Third First Second Third
Qtr Qtr Qtr YTD Qtr Qtr Qtr YTD
------ ------ ------ ------- ------ ------ ------ ------
Interest income 234 242 233 709 5 36 15 56
Rental income 67 111 91 269 (232) (130) 36 (326)
------ ------ ------ ------- ------ ------ ------ ------
301 353 324 978 (227) (94) 51 (270)
SG&A expense 737 2,025 937 3,699 101 703 417 1,221
Interest expense -- -- -- -- (268) (815) -- (1,083)
Other-Building expenses 544 600 633 1,777 34 51 114 199
Other-Equity Investment
losses 256 237 343 836 129 (9) 82 202
------ ------ ------ ------- ------ ------ ------ ------
1,537 2,862 1,913 6,312 (4) (70) 613 539
------ ------ ------ ------- ------ ------ ------ ------
Pretax result (1,236) (2,509) (1,589) (5,334) (223) (24) (562) (809)
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(2) Unallocated corporate expenses and Techne's
share of losses by Hemerus Medical, LLC and Nephromics, LLC.