SEGMENT INFORMATION
TECHNE CORPORATION AND SUBISIDARIES
(in thousands of $'s, except per share data)
Increase (Decrease)
Fiscal 2004 From Fiscal 2003
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First Second Third Percent First Second Third
Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter YTD
------- ------- ------- ------- -------- ------- ------- ------- ------
Sales 37,993 38,264 42,541 118,798 100% 3,445 4,964 4,804 13,213
Cost of sales 8,663 8,441 8,946 26,050 22% (27) 70 190 233
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Gross margin 29,330 29,823 33,595 92,748 78% 3,472 4,894 4,614 12,980
Gross margin percentage 77.2% 77.9% 79.0% 78.1%
SG&A expense 5,083 5,519 5,456 16,058 14% 132 618 750 1,500
R&D expense 4,963 5,450 5,082 15,495 13% 130 471 (204) 397
Amortization expense 400 399 400 1,199 1% (84) (86) (85) (255)
Interest expense 175 172 167 514 -- (148) (124) (11) (283)
Interest income (726) (762) (853) (2,341) (2%) 64 (58) (121) (115)
Other non-operating
exp., net 78 20 415 513 -- (72) 36 475 439
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9,973 10,798 10,667 31,438 26% 22 857 804 1,683
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Earnings before
income taxes 19,357 19,025 22,928 61,310 52% 3,450 4,037 3,810 11,297
Income taxes 6,785 6,655 8,309 21,749 19% 1,323 1,548 1,585 4,456
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12,572 12,370 14,619 39,561 33% 2,127 2,489 2,225 6,841
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Diluted earnings
per share 0.30 0.30 0.35 0.95
Weighted average diluted
shares outstanding 41,600 41,653 41,752 41,668
HEMATOLOGY DIVISION
(in thousands of $'s)
Increase (Decrease)
Fiscal 2004 From Fiscal 2003
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First Second Third Percent First Second Third
Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter YTD
------- ------- ------- ------- -------- ------- ------- ------- ------
Sales 4,281 4,454 4,069 12,804 100% 507 468 72 1,047
Cost of sales 2,346 2,344 2,234 6,924 54% 209 232 53 494
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Gross margin 1,935 2,110 1,835 5,880 46% 298 236 19 553
Gross margin percentage 45.2% 47.4% 45.1% 45.9%
SG&A expense 391 383 439 1,213 9% (9) 16 74 81
R&D expense 191 190 203 584 5% 18 (3) 4 19
Interest income (77) (74) (79) (230) (2%) 24 9 8 41
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505 499 563 1,567 12% 33 22 86 141
------- ------- ------- ------- -------- ------- ------- ------- ------
Pretax result 1,430 1,611 1,272 4,313 34% 265 214 (67) 412
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BIOTECHNOLOGY DIVISION
(in thousands of $'s)
Increase (Decrease)
Fiscal 2004 From Fiscal 2003
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First Second Third Percent First Second Third
Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter YTD
------- ------- ------- ------- -------- ------- ------- ------- ------
Sales 28,653 27,766 31,214 87,633 100% 2,016 2,811 2,697 7,524
Intersegment sales (4,621) (4,967) (5,145) (14,733) (471) (466) (270) (1,207)
------ ------ ------ ------- ------ ------ ------ ------
24,032 22,799 26,069 72,900 1,545 2,345 2,427 6,317
Cost of sales 5,916 5,530 6,121 17,567 20% 191 70 429 690
Intersegment sales (4,521) (4,894) (5,140) (14,555) (371) (411) (272) (1,054)
------ ------ ------ ------- ------ ------ ------ ------
1,395 636 981 3,012 (180) (341) 157 (364)
Gross margin 22,637 22,163 25,088 69,888 80% 1,725 2,686 2,270 6,681
Gross margin percentage 79.4% 80.1% 80.4% 80.0%
SG&A expense 2,651 2,949 2,917 8,517 10% (61) 109 271 319
R&D expense 4,164 4,307 4,290 12,761 15% 201 180 127 508
Amortization expense 400 399 400 1,199 1% (84) (86) (85) (255)
Interest income (406) (388) (411) (1,205) (1%) 85 19 14 118
------ ------ ------ ------- ------- ------ ------ ------ ------
6,809 7,267 7,196 21,272 25% 141 222 327 690
------ ------ ------ ------- ------- ------ ------ ------ ------
Pretax result 15,828 14,896 17,892 48,616 55% 1,584 2,464 1,943 5,991
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R&D SYSTEMS EUROPE
(in thousands of Br. pounds)
Increase (Decrease)
Fiscal 2004 From Fiscal 2003
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First Second Third Percent First Second Third
Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter YTD
------- ------- ------- ------- -------- ------- ------- ------- ------
Sales 5,980 6,365 6,721 19,066 100% 663 732 397 1,792
Intersegment sales -- -- -- -- 9 6 8 23
------- ------- ------- ------- ------- ------- ------- ------
5,980 6,365 6,721 19,066 672 738 405 1,815
Cost of sales 3,040 3,157 3,107 9,304 49% (157) (203) (498) (858)
------- ------- ------- ------- ------ ------- ------- ------- ------
Gross margin 2,940 3,208 3,614 9,762 51% 820 935 895 2,650
Gross margin percentage 49.2% 50.4% 53.8% 51.2%
SG&A expense 1,050 1,092 978 3,120 16% 17 101 13 131
Interest income (127) (150) (175) (452) (2%) (23) (35) (60) (118)
Exchange loss/(gain) (49) (73) 46 (76) -- (80) 6 171 97
------- ------- ------- ------- ------ ------- ------- ------- ------
874 869 849 2,592 14% (86) 72 124 110
------- ------- ------- ------- ------ ------- ------- ------- ------
Pretax result 2,066 2,339 2,765 7,170 37% 906 863 771 2,540
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R&D SYSTEMS EUROPE
(in thousands of $'s)
Increase (Decrease)
Fiscal 2004 From Fiscal 2003
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First Second Third Percent First Second Third
Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter YTD
------- ------- ------- ------- -------- ------- ------- ------- ------
Sales 9,680 11,011 12,403 33,094 100% 1,379 2,142 2,291 5,812
Intersegment sales -- -- -- -- 14 9 14 37
------- ------- ------- ------- ------- ------- ------- ------
9,680 11,011 12,403 33,094 1,393 2,151 2,305 5,849
Cost of sales 4,922 5,461 5,731 16,114 49% (70) 170 (34) 66
------- ------- ------- ------- -------- ------- ------- ------- ------
Gross margin 4,758 5,550 6,672 16,980 51% 1,449 1,972 2,325 5,746
Gross margin percentage 49.2% 50.4% 53.8% 51.3%
SG&A expense 1,699 1,891 1,805 5,395 16% 87 328 261 676
Interest income (206) (260) (323) (789) (2%) (43) (80) (138) (261)
Exchange loss/(gain) (84) (129) 85 (128) -- (133) (1) 285 151
------- ------- ------- ------- -------- ------- ------- ------- ------
1,409 1,502 1,567 4,478 14% (89) 247 408 566
------- ------- ------- ------- -------- ------- ------- ------- ------
Pretax result 3,349 4,048 5,105 12,502 37% 1,538 1,725 1,917 5,180
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CORPORATE AND OTHER (1)
(in thousands of $'s)
Increase (Decrease)
Fiscal 2004 From Fiscal 2003
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First Second Third First Second Third
Quarter Quarter Quarter YTD Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- ------- ------- -------
Interest income 37 40 40 117 2 6 5 13
Rental income 19 46 20 85 19 40 1 60
------- ------- ------- ------- ------- ------- ------- -------
56 86 60 202 21 46 6 73
SG&A expense 342 296 295 933 115 165 144 424
R&D-CCX losses 436 828 519 1,783 (83) 332 (274) (25)
R&D-DGI losses 172 125 47 344 (6) (38) (84) (128)
R&D-Hemerus losses -- -- 23 23 -- -- 23 23
Interest expense 175 172 167 514 (148) (124) (11) (283)
Building expense 181 195 350 726 80 77 191 348
------- ------- ------- ------- ------- ------- ------- -------
1,306 1,616 1,401 4,323 (42) 412 (11) 359
------- ------- ------- ------- ------- ------- ------- -------
Pretax result (1,250) (1,530) (1,341) (4,121) 63 (366) 17 (286)
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(1) Unallocated corporate expenses and Techne's share of losses by ChemoCentryx,
Inc. (CCX), Discovery Genomics, Inc. (DGI) and Hemerus Medical, LLC.