SEGMENT INFORMATION
TECHNE CORPORATION AND SUBISIDARIES
(in thousands of $'s, except per share data)
Increase (Decrease)
Fiscal 2010 From Fiscal 2009
--------------------------------- ----------------------
First Second Percent First Second
Quarter Quarter YTD of Sales Quarter Quarter YTD
------- ------- ------- -------- ------- ------- ------
Sales 66,534 65,521 132,055 100% (2,790) 3,645 855
Cost of sales 12,901 13,329 26,230 20% (185) (101) (286)
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Gross margin 53,633 52,192 105,825 80% (2,605) 3,746 1,141
Gross margin
percentage 80.6% 79.7% 80.1%
SG&A expense 8,038 9,007 17,045 13% (802) (696)(1,498)
R&D expense 6,154 6,391 12,545 10% 244 545 789
Amortization expense 240 240 480 -- -- -- --
Interest income (1,168) (1,156) (2,324) (2%) 1,719 1,049 2,768
Other non-operating
ex., net 662 1,011 1,673 1% (525) 299 (226)
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13,926 15,493 29,419 22% 636 1,197 1,833
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Earnings before
income taxes 39,707 36,699 76,406 58% (3,241) 2,549 (692)
Income taxes 12,935 11,978 24,913 19% (1,420) 1,467 47
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26,772 24,721 51,493 39% (1,821) 1,082 (739)
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Diluted earnings
per share .72 .66 1.38
Weighted average
diluted shares
outstanding 37,339 37,353 37,346
BIOTECHNOLOGY (1)
(in thousands of $'s)
Increase (Decrease)
Fiscal 2010 From Fiscal 2009
--------------------------------- ----------------------
First Second Percent First Second
Quarter Quarter YTD of Sales Quarter Quarter YTD
------- ------- ------- -------- ------- ------- ------
Sales 51,696 50,703 102,399 100% (2,203) 2,060 (143)
Intersegment sales (7,668) (8,282) (15,950) 94 29 123
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44,028 42,421 86,449 (2,109) 2,089 (20)
Cost of sales 9,885 10,126 20,011 20% (362) (964)(1,326)
Intersegment sales (7,598) (7,753) (15,351) (137) 586 449
------- ------- ------- -------- ------- ------- ------
2,287 2,373 4,660 (499) (378) (877)
Gross margin 41,741 40,048 81,789 80% (1,610) 2,467 857
Gross margin
percentage 80.9% 80.0% 80.5%
SG&A expense 4,734 5,056 9,790 10% (407) (362) (769)
R&D expense 5,956 6,190 12,146 12% 239 547 786
Amortization expense 240 240 480 -- -- -- --
Interest income (771) (772) (1,543) (1%) 313 198 511
Other expense 2 1 3 -- 4 -- 4
------- ------- ------- -------- ------- ------- ------
10,161 10,715 20,876 21% 149 383 532
------- ------- ------- -------- ------- ------- ------
Pretax result 31,580 29,333 60,913 59% (1,759) 2,084 325
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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 2010 From Fiscal 2009
--------------------------------- ----------------------
First Second Percent First Second
Quarter Quarter YTD of Sales Quarter Quarter YTD
------- ------- ------- -------- ------- ------- ------
Sales 10,881 11,462 22,343 100% 706 265 971
Cost of sales 5,061 5,288 10,349 46% 801 (73) 728
------- ------- ------- -------- ------- ------- ------
Gross margin 5,820 6,174 11,994 54% (95) 338 243
Gross margin
percentage 53.5% 53.9% 53.7%
SG&A expense 1,191 1,318 2,509 11% (33) (46) (79)
Interest income (87) (79) (166) -- 703 504 1,207
Exchange loss/(gain) (89) 61 (28) -- (349) 96 (253)
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1,015 1,300 2,315 11% 321 554 875
------- ------- ------- -------- ------- ------- ------
Pretax result 4,805 4,874 9,679 43% (416) (216) (632)
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R&D SYSTEMS EUROPE
(in thousands of $'s)
Increase (Decrease)
Fiscal 2010 From Fiscal 2009
--------------------------------- ----------------------
First Second Percent First Second
Quarter Quarter YTD of Sales Quarter Quarter YTD
------- ------- ------- -------- ------- ------- ------
Sales 17,838 18,775 36,613 100% (1,103) 1,491 388
Cost of sales 8,295 8,664 16,959 46% 364 390 754
------- ------- ------- -------- ------- ------- ------
Gross margin 9,543 10,111 19,654 54% (1,467) 1,101 (366)
Gross margin
percentage 53.5% 53.9% 53.7%
SG&A expense 1,952 2,159 4,111 11% (331) 65 (266)
Interest income (143) (128) (271) -- 1,328 778 2,106
Exchange loss/(gain) (145) 99 (46) -- (621) 94 (527)
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1,664 2,130 3,794 11% 376 937 1,313
------- ------- ------- -------- ------- ------- ------
Pretax result 7,879 7,981 15,860 43% (1,843) 164 (1,679)
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HEMATOLOGY
(in thousands of $'s)
Increase (Decrease)
Fiscal 2010 From Fiscal 2009
--------------------------------- ----------------------
First Second Percent First Second
Quarter Quarter YTD of Sales Quarter Quarter YTD
------- ------- ------- -------- ------- ------- ------
Sales 4,668 4,325 8,993 100% 422 65 487
Cost of sales 2,319 2,292 4,611 51% (50) (113) (163)
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Gross margin 2,349 2,033 4,382 49% 472 178 650
Gross margin
percentage 50.3% 47.0% 48.7%
SG&A expense 370 366 736 8% (66) (32) (98)
R&D expense 198 201 399 4% 5 (2) 3
Interest income (72) (72) (144) (1%) 30 19 49
------- ------- ------- -------- ------- ------- ------
496 495 991 11% (31) (15) (46)
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Pretax result 1,853 1,538 3,391 38% 503 193 696
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CORPORATE AND OTHER (2)
(in thousands of $'s)
Increase (Decrease)
Fiscal 2010 From Fiscal 2009
------------------------ ----------------------
First Second First Second
Quarter Quarter YTD Quarter Quarter YTD
------- ------- ------- ------- ------- ------
Interest income 182 184 366 (48) (54) (102)
Rental income 81 115 196 (18) (16) (34)
------- ------- ------- ------- ------- ------
263 299 562 (66) (70) (136)
SG&A expense 982 1,426 2,408 2 (367) (365)
Other-Building expenses 548 530 1,078 (5) (21) (26)
Other-Equity Investment losses 338 496 834 79 210 289
------- ------- ------- ------- ------- ------
1,868 2,452 4,320 76 (178) (102)
------- ------- ------- ------- ------- ------
Pretax result (1,605) (2,153) (3,758) (142) 108 (34)
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(2) Unallocated corporate expenses and Techne's share
of losses by Hemerus Medical, LLC and Nephromics, LLC.