SEGMENT INFORMATION TECHNE CORPORATION AND SUBISIDARIES (in thousands of $'s, except per share data) Increase (Decrease) Fiscal 2005 From Fiscal 2004 ---------------------------------- ----------------------- First Second Percent First Second Quarter Quarter YTD Of Sales Quarter Quarter YTD ------- ------- ------ -------- ------- ------- ------ Sales 40,919 42,247 83,166 100% 2,926 3,983 6,909 Cost of sales 8,887 8,941 17,828 22% 224 500 724 ------- ------- ------ --- ----- ----- ----- Gross margin 32,032 33,306 65,338 78% 2,702 3,483 6,185 Gross margin percentage 78.3% 78.8% 78.6% SG&A expense 5,634 6,290 11,924 14% 551 771 1,322 R&D expense 4,688 4,619 9,307 11% (275) (831) (1,106) Amortization expense 305 306 611 1% (95) (93) (188) Interest expense 245 178 423 1% 70 6 76 Interest income (1,053) (1,189) (2,242) (3%) (327) (427) (754) Other non- operating exp., net 466 416 882 1% 388 396 784 ------- ------- ------ --- ----- ----- ----- 10,285 10,620 20,905 25% 312 (178) 134 ------- ------- ------ --- ----- ----- ----- Earnings before income taxes 21,747 22,686 44,433 53% 2,390 3,661 6,051 Income taxes 7,555 7,752 15,307 18% 770 1,097 1,867 ------- ------- ------ --- ----- ----- ----- 14,192 14,934 29,126 35% 1,620 2,564 4,184 ======= ======= ====== === ===== ===== ===== Diluted earnings per share 0.34 0.36 0.70 Weighted average diluted shares outstanding 41,676 41,681 41,678 HEMATOLOGY DIVISION (in thousands of $'s) Increase (Decrease) Fiscal 2005 From Fiscal 2004 ---------------------------------- ----------------------- First Second Percent First Second Quarter Quarter YTD Of Sales Quarter Quarter YTD ------- ------- ------ -------- ------- ------- ------ Sales 4,013 4,515 8,528 100% (268) 61 (207) Cost of sales 2,220 2,163 4,383 51% (126) (181) (307) ------- ------- ------ --- ------ ------ ------ Gross margin 1,793 2,352 4,145 49% (142) 242 100 Gross margin percentage 44.7% 52.1% 48.6% SG&A expense 409 436 845 10% 18 53 71 R&D expense 188 189 377 4% (3) (1) (4) Interest, net (56) (77) (133) (1%) 21 (3) 18 ------- ------- ------ --- ----- ----- ------ 541 548 1,089 13% 36 49 85 ------- ------- ------ --- ----- ----- ------ Pretax result 1,252 1,804 3,056 36% (178) 193 15 ======= ======= ====== === ===== ===== ====== BIOTECHNOLOGY DIVISION (in thousands of $'s) Increase (Decrease) Fiscal 2005 From Fiscal 2004 ---------------------------------- ----------------------- First Second Percent First Second Quarter Quarter YTD Of Sales Quarter Quarter YTD ------- ------- ------ -------- ------- ------- ------ Sales 30,691 30,072 60,763 100% 2,038 2,306 4,344 Intersegment sales (4,804) (5,204)(10,008) (183) (237) (420) ------- ------- ------ ------ ----- ------ 25,887 24,868 50,755 1,855 2,069 3,924 Cost of sales 6,111 6,070 12,181 20% 195 540 735 Intersegment sales (4,756) (5,210) (9,966) (235) (316) (551) ------- ------- ------ ------ ----- ------ 1,355 860 2,215 (40) 224 184 Gross margin 24,532 24,008 48,540 80% 1,895 1,845 3,740 Gross margin percentage 80.1% 79.8% 80.0% SG&A expense 2,973 3,415 6,388 11% 322 466 788 R&D expense 4,500 4,430 8,930 15% 336 123 459 Amortization expense 305 306 611 1% (95) (93) (188) Interest, net (414) (564) (978) (2%) (8) (176) (184) ------- ------- ------ --- ------ ----- ------ 7,364 7,587 14,951 25% 555 320 875 ------- ------- ------ --- ------ ----- ------ Pretax result 17,168 16,421 33,589 55% 1,340 1,525 2,865 ======= ======= ====== === ====== ===== ====== R&D SYSTEMS EUROPE (in thousands of Br. pounds) Increase (Decrease) Fiscal 2005 From Fiscal 2004 ---------------------------------- ----------------------- First Second Percent First Second Quarter Quarter YTD Of Sales Quarter Quarter YTD ------- ------- ------ -------- ------- ------- ------ Sales 6,080 6,808 12,888 100% 100 443 543 Cost of sales 2,931 3,133 6,064 47% (109) (24) (133) ------- ------- ------ --- ----- ----- ------ Gross margin 3,149 3,675 6,824 53% 209 467 676 Gross margin Percentage 51.8% 54.0% 53.0% SG&A expense 950 1,161 2,111 16% (100) 69 (31) Interest income (254) (263) (517) (4%) (127) (113) (240) Exchange loss/ (gain) 26 (44) (18) -- 75 29 104 ------- ------- ------ --- ------ ----- ------ 722 854 1,576 12% (152) (15) (167) ------- ------- ------ --- ------ ----- ------ Pretax result 2,427 2,821 5,248 41% 361 482 843 ======= ======= ====== === ====== ===== ====== R&D SYSTEMS EUROPE (in thousands of $'s) Increase (Decrease) Fiscal 2005 From Fiscal 2004 ---------------------------------- ----------------------- First Second Percent First Second Quarter Quarter YTD Of Sales Quarter Quarter YTD ------- ------- ------ -------- ------- ------- ------ Sales 11,019 12,864 23,883 100% 1,339 1,853 3,192 Cost of sales 5,312 5,918 11,230 47% 390 457 847 ------- ------- ------ --- ------ ----- ------ Gross margin 5,707 6,946 12,653 53% 949 1,396 2,345 Gross margin percentage 51.8% 54.0% 53.0% SG&A expense 1,722 2,194 3,916 16% 23 303 326 Interest income (460) (497) (957) (4%) (254) (237) (491) Exchange loss/ (gain) 47 (82) (35) -- 131 47 178 ------- ------- ------ --- ------ ----- ------ 1,309 1,615 2,924 12% (100) 113 13 ------- ------- ------ --- ------ ----- ------ Pretax result 4,398 5,331 9,729 41% 1,049 1,283 2,332 ======= ======= ====== === ====== ===== ====== CORPORATE AND OTHER (1) (in thousands of $'s) Increase (Decrease) Fiscal 2005 From Fiscal 2004 ------------------------ ----------------------- First Second First Second Quarter Quarter YTD Quarter Quarter YTD ------- ------- ------ ------- ------- ------ Interest income 42 51 93 5 11 16 Rental income 19 53 72 -- 7 7 ------- ------- ------ ------- ------- ------ 61 104 165 5 18 23 SG&A expense 530 245 775 188 (51) 137 R&D-CCX losses -- -- -- (436) (828) (1,264) R&D-DGI losses -- -- -- (172) (125) (297) Other-Hemerus losses 74 73 147 74 73 147 Interest expense 164 178 342 (11) 6 (5) Building expense 364 478 842 183 283 466 ------- ------- ------ ------- ------- ------ 1,132 974 2,106 (174) (642) (816) ------- ------- ------ ------- ------- ------ Pretax result (1,071) (870) (1,941) 179 660 839 ======= ======= ====== ======= ======= ====== (1) Unallocated corporate expenses and Techne's share of losses by ChemoCentryx, Inc. (CCX), Discovery Genomics, Inc. (DGI) and Hemerus Medical, LLC.