TECHNE CORPORATION AND SUBISIDARIES
(in thousands of $'s, except per share data)
Fiscal 2003 Increase(Decrease) From FY 2002
--------------------------------------------- ---------------------------------------
First Second Third Fourth Total % Of First Second Third Fourth
Qtr Qtr Qtr Qtr FY03 Sales Qtr Qtr Qtr Qtr Total
------ ------ ------ ------ ------- ----- ----- ----- ----- ------ -------
Sales 34,548 33,300 37,737 39,426 145,011 100% 4,705 2,163 3,451 3,790 14,109
Cost of sales 8,690 8,371 8,756 9,579 35,396 24% 1,142 342 364 1,039 2,887
------ ------ ------ ------ ------- ----- ----- ----- ----- ------ ------
Gross margin 25,858 24,929 28,981 29,847 109,615 76% 3,563 1,821 3,087 2,751 11,222
Gross margin percentage 74.85% 74.86% 76.80% 75.70% 75.59%
SG&A expense 4,951 4,901 4,706 4,819 19,377 13% 262 145 237 (1,067) (423)
R&D expense 4,833 4,979 5,285 5,484 20,581 14% 843 670 843 755 3,111
Amortization expense 484 485 485 485 1,939 1% (1,652) (1,652) (1,653) (1,653) (6,610)
Litigation settlement -- -- -- -- -- -- -- -- -- (17,500) (17,500)
Interest expense 323 297 178 176 974 1% (16) (38) (145) (147) (346)
Interest income (790) (704) (732) (707) (2,933) (2%) 172 209 154 268 803
Other non-operating
expense, net 150 (17) (58) 47 122 -- 303 (95) (117) 276 367
------ ------ ------ ------ ------- ----- ----- ----- ----- ------ ------
9,951 9,941 9,864 10,304 40,060 28% (88) (761) (681) (19,068) (20,598)
------ ------ ------ ------ ------- ----- ----- ----- ----- ------ ------
Earnings before
income taxes 15,907 14,988 19,117 19,543 69,555 48% 3,651 2,582 3,768 21,819 31,820
Income taxes 5,462 5,107 6,724 6,866 24,159 17% 1,631 1,135 1,948 8,839 13,553
------ ------ ------ ------ ------- ----- ----- ----- ----- ------ ------
10,445 9,881 12,393 12,677 45,396 31% 2,020 1,447 1,820 12,980 18,267
====== ====== ====== ====== ======= ===== ===== ===== ===== ====== ======
Diluted earnings per
share 0.25 0.23 0.30 0.31 1.08
Weighted average
diluted shares
outstanding 42,286 42,316 41,991 41,496 42,032
HEMATOLOGY DIVISION
(in thousands of $'s)
Fiscal 2003 Increase(Decrease) From FY 2002
------------------------------------------- -------------------------------------
First Second Third Fourth Total % Of First Second Third Fourth
Qtr Qtr Qtr Qtr FY03 Sales Qtr Qtr Qtr Qtr Total
----- ------ ----- ----- ------ ----- ----- ------ ----- ------ ------
Sales 3,774 3,987 3,996 4,909 16,666 100% 124 163 365 443 1,095
Cost of sales 2,137 2,113 2,180 2,374 8,804 53% 53 (12) 55 148 244
----- ------ ----- ----- ------ ----- ----- ------ ----- ------ ------
Gross margin 1,637 1,874 1,816 2,535 7,862 47% 71 175 310 295 851
Gross margin percentage 43.38% 47.00% 45.45% 51.64% 47.17%
SG&A expense 400 366 365 376 1,507 9% 46 5 19 (189) (119)
R&D expense 173 193 199 205 770 5% (11) 2 1 44 36
Interest income (101) (83) (87) (82) (353) (2%) 12 25 19 35 91
----- ------ ----- ----- ------ ----- ----- ------ ----- ------ ------
472 476 477 499 1,924 12% 47 32 39 (110) 8
----- ------ ----- ----- ------ ----- ----- ------ ----- ------ ------
Pretax result 1,165 1,398 1,339 2,036 5,938 36% 24 143 271 405 843
===== ====== ===== ===== ====== ===== ===== ====== ===== ====== ======
BIOTECHNOLOGY DIVISION
(in thousands of $'s)
Fiscal 2003 Increase(Decrease) From FY 2002
---------------------------------------------- -------------------------------------
First Second Third Fourth Total % Of First Second Third Fourth
Qtr Qtr Qtr Qtr FY03 Sales Qtr Qtr Qtr Qtr Total
------ ------ ------ ------ ------- ----- ----- ------ ----- ------ ------
Sales 26,638 24,955 28,516 28,986 109,095 100% 3,455 1,107 1,228 1,924 7,714
Intersegment sales (4,150) (4,501) (4,874) (4,605) (18,130) (332) (372) (288) (411) (1,403)
------ ------ ------ ------ ------- ----- ------ ----- ------ ------
22,488 20,454 23,642 24,381 90,965 3,123 735 940 1,513 6,311
Cost of sales 5,726 5,460 5,692 6,066 22,944 21% 917 207 96 674 1,894
Intersegment sales (4,150) (4,483) (4,868) (4,607) (18,108) (450) (249) (441) (280) (1,420)
------ ------ ------ ------ ------- ----- ------ ----- ------ ------
1,576 977 824 1,459 4,836 467 (42) (345) 394 474
Gross margin 20,912 19,477 22,818 22,922 86,129 79% 2,656 777 1,285 1,119 5,837
Gross margin percentage 78.50% 78.12% 80.04% 79.07% 78.97%
SG&A expense 2,712 2,841 2,646 2,626 10,825 10% 91 56 (9) (960) (822)
R&D expense 3,963 4,127 4,163 4,370 16,623 15% 287 392 448 617 1,744
Amortization expense 484 485 485 485 1,939 2% (1,652) (1,652) (1,653) (1,653) (6,610)
Interest income (492) (407) (425) (402) (1,726) (2%) 148 208 178 261 795
------ ------ ------ ------ ------- ----- ----- ------ ----- ------ ------
6,667 7,046 6,869 7,079 27,661 25% (1,126) (996) (1,036) (1,735) (4,893)
------ ------ ------ ------ ------- ----- ----- ------ ----- ------ ------
Pretax result 14,245 12,431 15,949 15,843 58,468 54% 3,782 1,773 2,321 2,854 10,730
====== ====== ====== ====== ======= ===== ===== ====== ===== ====== ======
R&D SYSTEMS EUROPE
(in thousands of Br. pounds)
Fiscal 2003 Increase(Decrease) From FY 2002
---------------------------------------------- ------------------------------------
First Second Third Fourth Total % Of First Second Third Fourth
Qtr Qtr Qtr Qtr FY03 Sales Qtr Qtr Qtr Qtr Total
------ ------ ------ ------ ------- ----- ----- ------ ----- ------ -----
Sales 5,317 5,633 6,324 6,228 23,502 100% 596 366 702 630 2,294
Intersegment sales (9) (6) (8) (2) (25) 4 1 4 5 14
------ ------ ------ ------ ------- ----- ------ ----- ------ -----
5,308 5,627 6,316 6,226 23,477 600 367 706 635 2,308
Cost of sales 3,197 3,360 3,605 3,527 13,689 58% 180 (30) (4) (13) 133
------ ------ ------ ------ ------- ----- ----- ------ ----- ------ -----
Gross margin 2,120 2,273 2,719 2,701 9,813 42% 416 396 706 643 2,161
Gross margin percentage 39.87% 40.35% 42.99% 43.37% 41.75%
SG&A expense 1,033 992 965 1,002 3,992 17% 111 38 52 25 226
Interest income (104) (115) (115) (115) (449) (2%) (6) (22) (28) (20) (76)
Exchange loss/(gain) 31 (79) (125) (51) (224) (1%) 137 (133) (134) 148 18
------ ------ ------ ------ ------- ----- ----- ------ ----- ------ -----
960 798 725 836 3,319 14% 242 (117) (110) 153 168
------ ------ ------ ------ ------- ----- ----- ------ ----- ------ -----
Pretax result 1,160 1,475 1,994 1,865 6,494 28% 174 513 816 490 1,993
====== ====== ====== ====== ======= ===== ===== ====== ===== ====== =====
R&D SYSTEMS EUROPE
(in thousands of $'s)
Fiscal 2003 Increase(Decrease) From FY 2002
---------------------------------------------- ------------------------------------
First Second Third Fourth Total % Of First Second Third Fourth
Qtr Qtr Qtr Qtr FY03 Sales Qtr Qtr Qtr Qtr Total
------ ------ ------ ------ ------- ----- ----- ------ ----- ------ -----
Sales 8,301 8,870 10,112 10,138 37,421 100% 1,454 1,264 2,141 1,829 6,688
Intersegment sales (14) (10) (13) (3) (40) 6 0 4 6 16
------ ------ ------ ------ ------- ----- ----- ------ ----- ------ -----
8,287 8,860 10,099 10,135 37,381 1,460 1,264 2,145 1,835 6,704
Cost of sales 4,992 5,291 5,765 5,748 21,796 58% 617 396 649 491 2,153
------ ------ ------ ------ ------- ----- ----- ------ ----- ------ -----
Gross margin 3,309 3,579 4,347 4,390 15,625 42% 837 868 1,492 1,338 4,535
Gross margin percentage 39.87% 40.35% 42.99% 43.37% 41.75%
SG&A expense 1,612 1,563 1,544 1,636 6,355 17% 273 185 250 189 897
Interest income (163) (181) (184) (186) (714) (2%) (20) (47) (61) (47) (175)
Exchange loss/(gain) 49 (127) (200) (77) (355) (1%) 202 (206) (213) 212 (5)
------ ------ ------ ------ ------- ----- ----- ------ ----- ------ -----
1,498 1,255 1,160 1,373 5,286 14% 455 (68) (24) 354 717
------ ------ ------ ------ ------- ----- ----- ------ ----- ------ -----
Pretax result 1,811 2,324 3,187 3,017 10,339 28% 382 936 1,516 984 3,818
====== ====== ====== ====== ======= ===== ===== ====== ===== ====== =====
CORPORATE AND OTHER (1)
(in thousands of $'s)
Fiscal 2003 Increase(Decrease) From FY 2002
--------------------------------------- ----------------------------------------
First Second Third Fourth Total First Second Third Fourth
Qtr Qtr Qtr Qtr FY03 Qtr Qtr Qtr Qtr Total
------ ------ ------ ------ ------- ----- ----- ----- ------ -------
Interest income 35 33 36 36 140 (32) (23) (19) (19) (93)
Rental income -- 6 19 47 72 -- 6 19 47 72
------ ------ ------ ------ ------- ----- ----- ----- ------ -------
35 39 55 83 212 (32) (17) -- 28 (21)
SG&A expense 227 130 151 182 690 (148) (101) (24) (107) (380)
R&D-CCX losses 519 496 792 773 2,580 436 219 404 171 1,230
R&D-DGI losses 178 163 131 136 608 133 58 (10) (78) 103
Litigation
settlement -- -- -- -- -- -- -- -- (17,500) (17,500)
Interest expense 323 297 178 176 974 (16) (38) (145) (147) (346)
Building expense 101 117 160 172 550 102 117 115 110 444
------ ------ ------ ------ ------- ----- ----- ----- ------ -------
1,348 1,203 1,412 1,439 5,402 507 255 340 (17,551) (16,449)
------ ------ ------ ------ ------- ----- ----- ----- ------ -------
Pretax result (1,313) (1,164) (1,357) (1,356) (5,190) (539) (272) (340) 17,579 16,428
====== ====== ====== ====== ======= ===== ===== ===== ====== =======
(1) Unallocated corporate expenses and Techne's share of losses by ChemoCentryx,
Inc. (CCX) and Discovery Genomics, Inc. (DGI)