SEGMENT INFORMATION TECHNE CORPORATION AND SUBISIDARIES (in thousands of $'s, except per share data)
Fiscal 2005 Increase(Decrease) From Fiscal 2004 ------------------------------------------------ -------- - ------------------------------- First Second Third Fourth Percent First Second Third Fourth Quarter Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter Quarter YTD ------- ------- ------- ------- ------- -------- ------- - ------- ------- ------- ------- Sales 40,919 42,247 47,935 47,551 178,652 100% 2,926 3,983 5,394 5,092 17,395 Cost of sales 8,887 8,941 9,138 9,847 36,813 21% 224 500 192 1,010 1,926 ------- ------- ------- ------- ------- -------- ------ - ------ ------ ------ ------ Gross margin 32,032 33,306 38,797 37,704 141,839 79% 2,702 3,483 5,202 4,082 15,469 Gross margin percentage 78.3% 78.8% 80.9% 79.3% 79.4% SG&A expense 5,634 6,290 6,379 6,173 24,476 14% 551 771 923 506 2,751 R&D expense 4,688 4,619 4,631 4,441 18,379 10% (275) (831) (451) (837) (2,394) Amortization expense 305 306 305 305 1,221 1% (95) (93) (95) (95) (378) Interest expense 245 178 193 206 822 -- 70 6 26 42 144 Interest income (1,053) (1,189) (938) (929) (4,109) (2%) (327) (427) (85) (19) (858) Other non-operating exp., net 466 416 323 (42) 1,163 -- 388 396 (92) (311) 381 Impairment loss -- -- -- -- -- -- -- - -- -- (1,523) (1,523) ------- ------- ------- ------- ------- -------- ------ - ------ ------ ------ ------ 10,285 10,620 10,893 10,154 41,952 23% 312 (178) 226 (2,237) (1,877) ------- ------- ------- ------- ------- -------- ------ - ------ ------ ------ ------ Earnings before income taxes 21,747 22,686 27,904 27,550 99,887 56% 2,390 3,661 4,976 6,319 17,346 Income taxes 7,555 7,752 9,465 8,983 33,755 19% 770 1,097 1,156 1,119 4,142 ------- ------- ------- ------- ------- -------- ------ - ------ ------ ------ ------ 14,192 14,934 18,439 18,567 66,132 37% 1,620 2,564 3,820 5,200 13,204 ======= ======= ======= ======= ======= ======== ====== ====== ====== ====== ====== Diluted earnings per share 0.34 0.36 0.45 0.47 1.62 Weighted average diluted shares outstanding 41,676 41,681 40,896 39,396 40,920
HEMATOLOGY DIVISION (in thousands of $'s)
Fiscal 2005 Increase(Decrease) From Fiscal 2004 ------------------------------------------------ -------- - ------------------------------- First Second Third Fourth Percent First Second Third Fourth Quarter Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter Quarter YTD ------- ------- ------- ------- ------- -------- ------- - ------- ------- ------- ------- Sales 4,013 4,515 3,652 4,004 16,184 100% (268) 61 (417) (670) (1,294) Cost of sales 2,220 2,163 2,123 2,147 8,653 53% (126) (181) (111) (340) (758) ------- ------- ------- ------- ------- -------- ------- - ------- ------- ------- ------- Gross margin 1,793 2,352 1,529 1,857 7,531 47% (142) 242 (306) (330) (536) Gross margin percentage 44.7% 52.1% 41.9% 46.4% 46.5% SG&A expense 409 436 505 458 1,808 11% 18 53 66 (26) 111 R&D expense 188 189 199 194 770 5% (3) (1) (4) (3) (11) Interest, net (56) (77) (44) (38) (215) (1%) 21 (3) 35 44 97 ------- ------- ------- ------- ------- -------- ------- - ------- ------- ------- ------- 541 548 660 614 2,363 15% 36 49 97 15 197 ------- ------- ------- ------- ------- -------- ------- - ------- ------- ------- ------- Pretax result 1,252 1,804 869 1,243 5,168 32% (178) 193 (403) (345) (733) ======= ======= ======= ======= ======= ======== ======= ======= ======= ======= =======
BIOTECHNOLOGY DIVISION (in thousands of $'s)
Fiscal 2005 Increase(Decrease) From Fiscal 2004 ------------------------------------------------ -------- - ------------------------------- First Second Third Fourth Percent First Second Third Fourth Quarter Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter Quarter YTD ------- ------- ------- ------- ------- -------- ------- - ------- ------- ------- ------- Sales 30,691 30,072 36,338 35,642 132,743 100% 2,038 2,306 5,124 4,207 13,675 Intersegment sales (4,804) (5,204) (5,598) (5,984) (21,590) (183) (237) (453) (1,031) (1,904) ------- ------- ------- ------- ------- ------- - ------- ------- ------- ------- 25,887 24,868 30,740 29,658 111,153 1,855 2,069 4,671 3,176 11,771 Cost of sales 6,111 6,070 6,368 7,042 25,591 19% 195 540 247 1,268 2,250 Intersegment sales (4,756) (5,210) (5,479) (5,997) (21,442) (235) (316) (339) (1,100) (1,990) ------- ------- ------- ------- ------- ------- ------- - ------- ------- ------- ------- 1,355 860 889 1,045 4,149 (40) 224 (92) 168 260 Gross margin 24,532 24,008 29,851 28,613 107,004 81% 1,895 1,845 4,763 3,008 11,511 Gross margin percentage 80.1% 79.8% 82.5% 80.2% 80.7% SG&A expense 2,973 3,415 3,712 3,417 13,517 10% 322 466 795 173 1,756 R&D expense 4,500 4,430 4,432 4,247 17,609 14% 336 123 142 (131) 470 Amortization expense 305 306 305 305 1,221 1% (95) (93) (95) (95) (378) Interest, net (414) (564) (320) (279) (1,577) (1%) (8) (176) 91 152 59 ------- ------- ------- ------- ------- ------- ------- - ------- ------- ------- ------- 7,364 7,587 8,129 7,690 30,770 24% 555 320 933 99 1,907 ------- ------- ------- ------- ------- ------- ------- - ------- ------- ------- ------- Pretax result 17,168 16,421 21,722 20,923 76,234 57% 1,340 1,525 3,830 2,909 9,604 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= =======
R&D SYSTEMS EUROPE (in thousands of British pounds)
Fiscal 2005 Increase(Decrease) From Fiscal 2004 ------------------------------------------------ -------- - ------------------------------- First Second Third Fourth Percent First Second Third Fourth Quarter Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter Quarter YTD ------- ------- ------- ------- ------- -------- ------- - ------- ------- ------- ------- Sales 6,080 6,808 7,131 7,575 27,594 100% 100 443 410 1,291 2,244 Cost of sales 2,931 3,133 3,225 3,622 12,911 47% (109) (24) 118 600 585 ------- ------- ------- ------- ------- -------- ------- - ------- ------- ------- ------- Gross margin 3,149 3,675 3,906 3,953 14,683 53% 209 467 292 691 1,659 Gross margin percentage 51.8% 54.0% 54.8% 52.2% 53.2% SG&A expense 950 1,161 1,022 1,097 4,230 15% (100) 69 44 110 123 Interest income (254) (263) (280) (307) (1,104) (4%) (127) (113) (105) (105) (450) Exchange loss/(gain) 26 (44) 16 (48) (50) -- 75 29 (30) (88) (14) ------- ------- ------- ------- ------- -------- ------- - ------- ------- ------- ------- 722 854 758 742 3,076 11% (152) (15) (91) (83) (341) ------- ------- ------- ------- ------- -------- ------- - ------- ------- ------- ------- Pretax result 2,427 2,821 3,148 3,211 11,607 42% 361 482 383 774 2,000 ======= ======= ======= ======= ======= ======== ======= ======= ======= ======= =======
R&D SYSTEMS EUROPE (in thousands of $'s)
Fiscal 2005 Increase(Decrease) From Fiscal 2004 ------------------------------------------------ -------- - ------------------------------- First Second Third Fourth Percent First Second Third Fourth Quarter Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter Quarter YTD ------- ------- ------- ------- ------- -------- ------- - ------- ------- ------- ------- Sales 11,019 12,864 13,543 13,889 51,315 100% 1,339 1,853 1,140 2,586 6,918 Cost of sales 5,312 5,918 6,126 6,655 24,011 47% 390 457 395 1,182 2,424 ------- ------- ------- ------- ------- -------- ------- - ------- ------- ------- ------- Gross margin 5,707 6,946 7,417 7,234 27,304 53% 949 1,396 745 1,404 4,494 Gross margin percentage 51.8% 54.0% 54.8% 52.1% 53.2% SG&A expense 1,722 2,194 1,939 2,011 7,866 15% 23 303 134 212 672 Interest income (460) (497) (531) (565) (2,053) (4%) (254) (237) (208) (208) (907) Exchange loss 47 (82) 29 (88) (94) -- 131 47 (56) (153) (31) ------- ------- ------- ------- ------- -------- ------- - ------- ------- ------- ------- 1,309 1,615 1,437 1,358 5,719 11% (100) 113 (130) (149) (266) ------- ------- ------- ------- ------- -------- ------- - ------- ------- ------- ------- Pretax result 4,398 5,331 5,980 5,876 21,585 42% 1,049 1,283 875 1,553 4,760 ======= ======= ======= ====== ======= ======== ======= ======= ======= ======= =======
CORPORATE AND OTHER (1) (in thousands of $'s)
Fiscal 2005 Increase(Decrease) From Fiscal 2004 --------------------------------------- ----------------- - ---------------------- First Second Third Fourth First Second Third Fourth Quarter Quarter Quarter Quarter YTD Quarter Quarter Quarter Quarter YTD ------- ------- ------- ------- ------- ------- ------- - - ------ ------- ------- Interest income 42 51 43 47 183 5 11 3 7 26 Rental income 19 53 318 360 750 -- 7 298 313 618 ------- ------- ------- ------- ------- ------- ------- - - ------ ------- ------- 61 104 361 407 933 5 18 301 320 644 SG&A expense 530 245 223 287 1,285 188 (51) (72) 147 212 R&D-CCX losses -- -- -- -- -- (436) (828) (519) (654) (2,437) R&D-DGI losses -- -- -- -- -- (172) (125) (47) (20) (364) Other-Hemerus losses 74 73 85 74 306 74 73 62 45 254 Interest expense 164 178 193 206 741 (11) 6 26 42 63 Building expense 364 478 527 332 1,701 183 283 177 81 724 Impairment loss -- -- -- -- -- -- -- - -- (1,523) (1,523) ------- ------- ------- ------- ------- ------- ------- - - ------ ------- ------- 1,132 974 1,028 899 4,033 (174) (642) (373) (1,882) (3,071) ------- ------- ------- ------- ------- ------- ------- - - ------ ------- ------- Pretax result (1,071) (870) (667) (492) (3,100) 179 660 674 2,202 3,715 ======= ======= ======= ======= ======= ======= ======= ======= ======= =======
(1) Unallocated corporate expenses and Techne's share of losses by ChemoCentryx, Inc. (CCX), Discovery Genomics, Inc. (DGI) and Hemerus Medical, LLC.