SEGMENT INFORMATION
TECHNE CORPORATION AND SUBISIDARIES
(in thousands of $'s, except per share data)
Fiscal 2004 Increase(Decrease) From Fiscal 2003
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First Second Third Fourth Percent First Second Third Fourth
Quarter Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
Sales 37,993 38,264 42,541 42,459 161,257 100% 3,445 4,964 4,804 3,033 16,246
Cost of sales 8,663 8,441 8,946 8,837 34,887 22% (27) 70 190 (742) (509)
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Gross margin 29,330 29,823 33,595 33,622 126,370 78% 3,472 4,894 4,614 3,775 16,755
Gross margin percentage 77.2% 77.9% 79.0% 79.2% 78.4%
SG&A expense 5,083 5,519 5,456 5,667 21,725 14% 132 618 750 848 2,348
R&D expense 4,963 5,450 5,082 5,278 20,773 13% 130 471 (204) (205) 192
Amortization expense 400 399 400 400 1,599 1% (84) (86) (85) (85) (340)
Interest expense 175 172 167 164 678 -- (148) (124) (11) (13) (296)
Interest income (726) (762) (853) (910) (3,251) (2%) 64 (58) (121) (203) (318)
Impairment loss on
equity investment
in DGI -- -- -- 1,523 1,523 1% -- -- -- 1,523 1,523
Other non-operating
exp., net 78 20 415 269 782 -- (72) 36 475 221 660
------- ------- ------- ------- ------- ----- ------ ------ ------ ------ ------
9,973 10,798 10,667 12,391 43,829 27% 22 857 804 2,086 3,769
------- ------- ------- ------- ------- ----- ------ ------ ------ ------ ------
Earnings before
income taxes 19,357 19,025 22,928 21,231 82,541 51% 3,450 4,037 3,810 1,689 12,986
Income taxes 6,785 6,655 8,309 7,864 29,613 18% 1,323 1,548 1,585 998 5,454
------- ------- ------- ------- ------- ----- ------ ------ ------ ------ ------
12,572 12,370 14,619 13,367 52,928 33% 2,127 2,489 2,225 691 7,532
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Diluted earnings
per share 0.30 0.30 0.35 0.32 1.27
Weighted average diluted
shares outstanding 41,600 41,653 41,752 41,785 41,697
HEMATOLOGY DIVISION
(in thousands of $'s)
Fiscal 2004 Fiscal 2004 Increase(Decrease) From Fiscal 2003
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First Second Third Fourth Percent First Second Third Fourth
Quarter Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
Sales 4,281 4,454 4,069 4,674 17,478 100% 507 468 72 (235) 812
Cost of sales 2,346 2,344 2,234 2,487 9,411 54% 209 232 53 113 607
------ ------- ------- ------- ------- ------ ------ ------ ------ ------ -----
Gross margin 1,935 2,110 1,835 2,187 8,067 46% 298 236 19 (348) 205
Gross margin percentage 45.2% 47.4% 45.1% 46.8% 46.2%
SG&A expense 391 383 439 484 1,697 10% (9) 16 74 109 190
R&D expense 191 190 203 197 781 4% 18 (3) 4 (8) 11
Interest income (77) (74) (79) (82) (312) (2%) 24 9 8 0 41
------ ------- ------- ------- ------- ------ ------ ------ ------ ------ -----
505 499 563 599 2,166 12% 33 22 86 101 242
------ ------- ------- ------- ------- ------ ------ ------ ------ ------ -----
Pretax result 1,430 1,611 1,272 1,588 5,901 34% 265 214 (67) (449) (37)
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BIOTECHNOLOGY DIVISION
(in thousands of $'s)
Fiscal 2004 Fiscal 2004 Increase(Decrease) From Fiscal 2003
---------------------------------------------------- ---------------------------------------
First Second Third Fourth Percent First Second Third Fourth
Quarter Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
Sales 28,653 27,766 31,214 31,435 119,068 100% 2,016 2,811 2,697 2,449 9,973
Intersegment sales (4,621) (4,967) (5,145) (4,953) (19,686) (471) (466) (270) (348) (1,555)
------ ------ ------ ------ ------- ------ ------ ------ ------ ------
24,032 22,799 26,069 26,482 99,382 1,545 2,345 2,427 2,101 8,418
Cost of sales 5,916 5,530 6,121 5,774 23,341 20% 191 70 429 (292) 398
Intersegment sales (4,521) (4,894) (5,140) (4,897) (19,452) (371) (411) (272) (290) (1,344)
------ ------ ------ ------ ------- ------ ------ ------ ------ ------
1,398 636 981 877 3,889 (180) (341) 157 (582) (946)
Gross margin 22,637 22,163 25,088 25,605 95,493 80% 1,725 2,686 2,270 2,683 9,364
Gross margin percentage 79.4% 80.1% 80.4% 81.6% 80.4%
SG&A expense 2,651 2,949 2,917 3,244 11,761 10% (61) 109 271 617 936
R&D expense 4,164 4,307 4,290 4,378 17,139 14% 201 180 127 8 516
Amortization expense 400 399 400 400 1,599 1% (84) (86) (85) (85) (340)
Interest income (406) (388) (411) (431) (1,636) (1%) 85 19 14 (28) 90
------ ------ ------ ------ ------- ----- ------ ------ ------ ------ ------
6,809 7,267 7,196 7,591 28,863 24% 141 222 327 512 1,202
------ ------ ------ ------ ------- ----- ------ ------ ------ ------ ------
Pretax result 15,828 14,896 17,892 18,014 66,630 56% 1,584 2,464 1,943 2,171 8,162
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R&D SYSTEMS EUROPE
(in thousands of Br. pounds)
Fiscal 2004 Fiscal 2004 Increase(Decrease) From Fiscal 2003
---------------------------------------------------- ---------------------------------------
First Second Third Fourth Percent First Second Third Fourth
Quarter Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
Sales 5,980 6,365 6,721 6,284 25,350 100% 663 732 397 56 1,848
Intersegment sales -- -- -- -- -- 9 6 8 2 25
------ ------ ------ ------ ------- ------ ------ ------ ------ ------
5,980 6,365 6,721 6,284 25,350 672 738 405 58 1,873
Cost of sales 3,040 3,157 3,107 3,022 12,326 49% (157) (203) (498) (505) (1,363)
------ ------ ------ ------ ------- ------ ------ ------ ------ ------ ------
Gross margin 2,940 3,208 3,614 3,262 13,024 51% 820 935 895 561 3,211
Gross margin percentage 49.2% 50.4% 53.8% 51.9% 51.4%
SG&A expense 1,050 1,092 978 987 4,107 16% 17 101 13 (16) 115
Interest income (127) (150) (175) (202) (654) (3%) (23) (35) (60) (87) (205)
Exchange loss/(gain) (49) (73) 46 40 (36) -- (80) 6 171 91 188
------ ------ ------ ------ ------- ------ ------ ------ ------ ------ ------
874 869 849 825 3,417 13% (86) 72 124 (12) 98
------ ------ ------ ------ ------- ------ ------ ------ ------ ------
Pretax result 2,066 2,339 2,765 2,437 9,607 38% 906 863 771 573 3,113
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R&D SYSTEMS EUROPE
(in thousands of $'s)
Fiscal 2004 Fiscal 2004 Increase(Decrease) From Fiscal 2003
---------------------------------------------------- ---------------------------------------
First Second Third Fourth Percent First Second Third Fourth
Quarter Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
Sales 9,680 11,011 12,403 11,303 44,397 100% 1,379 2,142 2,291 1,164 6,976
Intersegment sales -- -- -- -- -- 14 9 14 3 40
------ ------ ------ ------ ------- ------ ------ ------ ------ ------
9,680 11,011 12,403 11,303 44,397 1,393 2,151 2,305 1,167 7,016
Cost of sales 4,922 5,461 5,731 5,473 21,587 49% (70) 170 (34) (276) (210)
------ ------ ------ ------ ------- ----- ------ ------ ------ ------ ------
Gross margin 4,758 5,550 6,672 5,830 22,810 51% 1,449 1,972 2,325 1,440 7,186
Gross margin percentage 49.2% 50.4% 53.8% 51.6% 51.4%
SG&A expense 1,699 1,891 1,805 1,799 7,194 16% 87 328 261 163 839
Interest income (206) (260) (323) (357) (1,146) (3%) (43) (80) (138) (171) (432)
Exchange loss/(gain) (84) (129) 85 65 (63) -- (133) (1) 285 142 293
------ ------ ------ ------ ------- ----- ------ ------ ------ ------ ------
1,409 1,502 1,567 1,507 5,985 13% (89) 247 408 134 700
------ ------ ------ ------ ------- ----- ------ ------ ------ ------ ------
Pretax result 3,349 4,048 5,105 4,323 16,825 38% 1,538 1,725 1,917 1,306 6,486
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CORPORATE AND OTHER (1)
(in thousands of $'s)
Fiscal 2004 Fiscal 2004 Increase(Decrease) From Fiscal 2003
--------------------------------------------- ---------------------------------------
First Second Third Fourth First Second Third Fourth
Quarter Quarter Quarter Quarter YTD Quarter Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- ------- ------- ------- ------- ------
Interest income 37 40 40 40 157 2 6 5 4 17
Rental income 19 46 20 47 132 19 40 1 0 60
------ ------ ------ ------ ------ ----- ----- ----- ----- -----
56 86 60 87 289 21 46 6 4 77
SG&A expense 342 296 295 140 1,073 115 165 144 (41) 383
R&D-CCX losses 436 828 519 654 2,437 (83) 332 (274) (118) (143)
R&D-DGI losses 172 125 47 20 364 (6) (38) (84) (116) (244)
R&D-Hemerus losses -- -- 23 29 52 -- -- 23 29 52
Impairment loss on
equity Investment
in DGI -- -- -- 1,523 1,523 -- -- -- 1,523 1,523
Interest expense 175 172 167 164 678 (148) (124) (11) (13) (296)
Building expense 181 195 350 251 977 80 77 191 79 427
------ ------ ------ ------ ------ ----- ----- ----- ----- -----
1,306 1,616 1,401 2,781 7,104 (42) 412 (11) 1,343 1,702
------ ------ ------ ------ ------ ----- ----- ----- ----- -----
Pretax result (1,250) (1,530) (1,341) (2,694) (6,815) 63 (366) 17 (1,339) (1,625)
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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.