SEGMENT INFORMATION
TECHNE CORPORATION AND SUBISIDARIES
(in thousands of $'s, except per share data)
Increase (Decrease)
Fiscal 2010 From Fiscal 2009
---------------------------------- ------------------------
First Second Third % of First Second Third
Qtr Qtr Qtr YTD Sales Qtr Qtr Qtr YTD
------ ------ ------ ------- ----- ----- ------ ----- -----
Sales 66,534 65,521 70,278 202,333 100% (2,790) 3,645 2,412 3,267
Cost of sales 12,901 13,329 14,399 40,629 20% (185) (101) 83 (203)
------ ------ ------ ------- ----- ----- ------ ----- -----
Gross margin 53,633 52,192 55,879 161,704 80% (2,605) 3,746 2,329 3,470
Gross margin
percentage 80.6% 79.7% 79.5% 79.9%
SG&A expense 8,038 9,007 7,666 24,711 12% (802) (696) 605 (893)
R&D expense 6,154 6,391 6,325 18,870 10% 244 545 516 1,305
Amortization
expense 240 240 240 720 -- -- -- -- --
Interest
income (1,168)(1,156)(1,040) (3,364) (1%) 1,719 1,049 464 3,232
Other non-
operating
ex., net 662 1,011 1,249 2,922 1% (525) 299 146 (80)
------ ------ ------ ------- ----- ----- ------ ----- -----
13,926 15,493 14,440 43,859 22% 636 1,197 1,731 3,564
------ ------ ------ ------- ----- ----- ------ ----- -----
Earnings
before
income taxes 39,707 36,699 41,439 117,845 58% (3,241) 2,549 598 (94)
Income taxes 12,935 11,978 9,051 33,964 17% (1,420) 1,450 (4,149)(4,119)
------ ------ ------ ------- ----- ----- ------ ----- -----
26,772 24,721 32,388 83,881 41% (1,821) 1,099 4,747 4,025
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Diluted
earnings
per share .72 .66 .87 2.25
Weighted avg.
diluted shares
outstanding 37,339 37,353 37,380 37,357
BIOTECHNOLOGY (1)
(in thousands of $'s)
Increase (Decrease)
Fiscal 2010 From Fiscal 2009
---------------------------------- ------------------------
First Second Third % of First Second Third
Qtr Qtr Qtr YTD Sales Qtr Qtr Qtr YTD
------ ------ ------ ------- ----- ----- ------ ----- -----
Sales 51,696 50,703 54,236 156,635 100% (2,203) 2,060 518 375
Intersegment
sales (7,668)(8,282)(8,057)(24,007) 94 29 522 645
------ ------ ------ ------- ----- ------ ----- -----
44,028 42,421 46,179 132,628 (2,109) 2,089 1,040 1,020
Cost of sales 9,885 10,126 11,159 31,170 20% (362) (964) 79 (1,247)
Intersegment
sales (7,598)(7,753)(8,336)(23,687) (137) 586 158 607
------ ------ ------ ------- ----- ----- ------ ----- -----
2,287 2,373 2,823 7,483 (499) (378) 237 (640)
Gross margin 41,741 40,048 43,356 125,145 80% (1,610) 2,467 803 1,660
Gross margin
percentage 80.9% 80.0% 79.4% 80.1%
SG&A expense 4,734 5,056 4,625 14,415 9% (407) (362) 363 (406)
R&D expense 5,956 6,190 6,127 18,273 12% 239 547 505 1,291
Amortization
expense 240 240 240 720 -- -- -- -- --
Interest, net (771) (772) (706) (2,249) (1%) 313 198 147 658
Other expense 2 1 -- 3 -- 4 -- (1) 3
------ ------ ------ ------- ----- ----- ------ ----- -----
10,161 10,715 10,286 31,162 20% 149 383 1,014 1,546
------ ------ ------ ------- ----- ----- ------ ----- -----
Pretax result 31,580 29,333 33,070 93,983 60% (1,759) 2,084 (211) 114
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(1) Includes R&D Systems' Biotechnology Division, BiosPacific, Inc.
and R&D China
R&D SYSTEMS EUROPE
(in thousands of Br. pounds)
Increase (Decrease)
Fiscal 2010 From Fiscal 2009
---------------------------------- ------------------------
First Second Third % of First Second Third
Qtr Qtr Qtr YTD Sales Qtr Qtr Qtr YTD
------ ------ ------ ------- ----- ----- ------ ----- -----
Sales 10,881 11,462 12,296 34,639 100% 706 265 (420) 551
Cost of sales 5,061 5,288 5,824 16,173 47% 801 (73) (716) 12
------ ------ ------ ------- ----- ----- ------ ----- -----
Gross margin 5,820 6,174 6,472 18,466 53% (95) 338 296 539
Gross margin
percentage 53.5% 53.9% 52.6% 53.3%
SG&A expense 1,191 1,318 1,260 3,769 11% (33) (46) 69 (10)
Interest (87) (79) (68) (234) (1%) 703 504 167 1,374
Exchange loss/
(gain) (89) 61 237 209 -- (349) 96 74 (179)
------ ------ ------ ------- ----- ----- ------ ----- -----
1,015 1,300 1,429 3,744 10% 321 554 310 1,185
------ ------ ------ ------- ----- ----- ------ ----- -----
Pretax result 4,805 4,874 5,043 14,722 43% (416) (216) (14) (646)
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R&D SYSTEMS EUROPE
(in thousands of $'s)
Increase (Decrease)
Fiscal 2010 From Fiscal 2009
---------------------------------- ------------------------
First Second Third % of First Second Third
Qtr Qtr Qtr YTD Sales Qtr Qtr Qtr YTD
------ ------ ------ ------- ----- ----- ------ ----- -----
Sales 17,838 18,775 19,161 55,774 100% (1,103) 1,491 868 1,256
Cost of sales 8,295 8,664 9,071 26,030 47% 364 390 (334) 420
------ ------ ------ ------- ----- ----- ------ ----- -----
Gross margin 9,543 10,111 10,090 29,744 53% (1,467) 1,101 1,202 836
Gross margin
percentage 53.5% 53.9% 52.7% 53.3%
SG&A expense 1,952 2,159 1,967 6,078 11% (331) 65 253 (13)
Interest (143) (128) (108) (379) (1%) 1,328 778 230 2,336
Exchange loss/
(gain) (145) 99 372 326 -- (621) 94 134 (393)
------ ------ ------ ------- ----- ----- ------ ----- -----
1,664 2,130 2,231 6,025 10% 376 937 617 1,930
------ ------ ------ ------- ----- ----- ------ ----- -----
Pretax result 7,879 7,981 7,859 23,719 43% (1,843) 164 585 (1,094)
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HEMATOLOGY
(in thousands of $'s)
Increase (Decrease)
Fiscal 2010 From Fiscal 2009
---------------------------------- ------------------------
First Second Third % of First Second Third
Qtr Qtr Qtr YTD Sales Qtr Qtr Qtr YTD
------ ------ ------ ------- ----- ----- ------ ----- -----
Sales 4,668 4,325 4,938 13,931 100% 422 65 504 991
Cost of sales 2,319 2,292 2,505 7,116 51% (50) (113) 180 17
------ ------ ------ ------- ----- ----- ------ ----- -----
Gross margin 2,349 2,033 2,433 6,815 49% 472 178 324 974
Gross margin
percentage 50.3% 47.0% 49.3% 48.9%
SG&A expense 370 366 346 1,082 8% (66) (32) 36 (62)
R&D expense 198 201 198 597 4% 5 (2) 11 14
Interest, net (72) (72) (65) (209) (1%) 30 19 15 64
------ ------ ------ ------- ----- ----- ------ ----- -----
496 495 479 1,470 11% (31) (15) 62 16
------ ------ ------ ------- ----- ----- ------ ----- -----
Pretax result 1,853 1,538 1,954 5,345 38% 503 193 262 958
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CORPORATE AND OTHER (2)
(in thousands of $'s)
Increase (Decrease)
Fiscal 2010 From Fiscal 2009
---------------------------- ------------------------
First Second Third First Second Third
Qtr Qtr Qtr YTD Qtr Qtr Qtr YTD
------ ------ ------ ------- ----- ------ ----- -----
Interest income 182 184 161 527 (48) (54) (72) (174)
Rental income 81 115 83 279 (18) (16) (32) (66)
------ ------ ------ ------- ----- ------ ----- -----
263 299 244 806 (66) (70) (104) (240)
SG&A expense 982 1,426 728 3,136 2 (367) (47) (412)
Other-Building
expenses 548 530 593 1,671 (5) (21) 20 (6)
Other-Equity
Investment
losses 338 496 367 1,201 79 210 (39) 250
------ ------ ------ ------- ----- ------ ----- -----
1,868 2,452 1,688 6,008 76 (178) (66) (168)
------ ------ ------ ------- ----- ------ ----- -----
Pretax result (1,605)(2,153)(1,444) (5,202) (142) 108 (38) (72)
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(2) Unallocated corporate expenses and Techne's share of losses
by Hemerus Medical, LLC and Nephromics, LLC.