SEGMENT INFORMATION TECHNE CORPORATION AND SUBISIDARIES (in thousands of $'s, except per share data) Increase (Decrease) Fiscal 2007 From Fiscal 2006 -------------------------------- ----------------------- First Second Percent First Second Quarter Quarter YTD Of Sales Quarter Quarter YTD ------- ------- ------- -------- ------- ------- ------- Sales 52,351 52,509 104,860 100% 4,642 4,480 9,122 Cost of sales 11,237 10,714 21,951 21% 141 19 160 ------ ------ ------- ------- ------ ------ ------ Gross margin 41,114 41,795 82,909 79% 4,501 4,461 8,962 Gross margin percentage 78.5% 79.6% 79.1% SG&A expense 7,067 8,830 15,897 15% 613 850 1,463 R&D expense 4,855 5,044 9,899 9% 138 470 608 Amortization expense 403 404 807 1% (89) (88) (177) Interest expense 268 815 1,083 1% 45 577 622 Interest income (1,676) (1,956) (3,632) (3%) (702) (826) (1,528) Other non-operating ex., net 485 428 913 1% 274 147 421 ------ ------ ------- ------- ------ ------ ------ 11,402 13,565 24,967 24% 279 1,130 1,409 ------ ------ ------- ------- ------ ------ ------ Earnings before income taxes 29,712 28,230 57,942 55% 4,222 3,331 7,553 Income taxes 10,081 9,567 19,648 18% 1,592 1,182 2,774 ------ ------ ------- ------- ------ ------ ------ 19,631 18,663 38,294 37% 2,630 2,149 4,779 ====== ====== ======= ======= ====== ====== ====== Diluted earnings per share 0.50 0.47 0.97 Weighted average diluted shares outstanding 39,469 39,511 39,483 BIOTECHNOLOGY (1) (in thousands of $'s) Increase (Decrease) Fiscal 2007 From Fiscal 2006 -------------------------------- ----------------------- First Second Percent First Second Quarter Quarter YTD Of Sales Quarter Quarter YTD ------- ------- ------- -------- ------- ------- ------- Sales 41,621 40,073 81,694 100% 4,022 2,376 6,398 Intersegment sales (5,699) (6,647)(12,346) (400) (92) (492) ------ ------ ------- ------- ------ ------ ------ 35,922 33,426 69,348 3,622 2,284 5,906 Cost of sales 8,482 7,683 16,165 20% 12 (464) (452) Intersegment sales (5,524) (6,435)(11,959) (201) (295) (496) ------ ------ ------- ------- ------ ------ ------ 2,958 1,248 4,206 (189) (759) (948) Gross margin 32,964 32,178 65,142 80% 3,811 3,043 6,854 Gross margin percentage 79.6% 80.8% 80.2% SG&A expense 4,013 4,664 8,677 11% 374 470 844 R&D expense 4,675 4,854 9,529 12% 143 450 593 Amortization expense 403 404 807 1% (89) (88) (177) Interest, net (595) (722) (1,317) (2%) (327) (349) (676) ------ ------ ------- ------- ------ ------ ------ 8,496 9,200 17,696 22% 101 483 584 ------ ------ ------- ------- ------ ------ ------ Pretax result 24,468 22,978 47,446 58% 3,710 2,560 6,270 ====== ====== ======= ======= ====== ====== ====== (1) Includes R&D Systems' Biotechnology Division, Fortron Bio Science, Inc., and BiosPacific, Inc. R&D SYSTEMS EUROPE (in thousands of British pounds) Increase (Decrease) Fiscal 2007 From Fiscal 2006 -------------------------------- ----------------------- First Second Percent First Second Quarter Quarter YTD Of Sales Quarter Quarter YTD ------- ------- ------- -------- ------- ------- ------- Sales 6,870 7,851 14,721 100% 180 322 502 Cost of sales 3,285 3,766 7,051 48% (7) 1 (6) ------ ------ ------- ------- ------ ------ ------ Gross margin 3,585 4,085 7,670 52% 187 321 508 Gross margin percentage 52.2% 52.0% 52.1% SG&A expense 1,074 1,236 2,310 16% 70 51 121 Interest income (410) (480) (890) (6%) (84) (151) (235) Exchange loss/(gain) 78 (64) 14 -- 63 (90) (27) ------ ------ ------- ------- ------ ------ ------ 742 692 1,434 10% 49 (190) (141) ------ ------ ------- ------- ------ ------ ------ Pretax result 2,843 3,393 6,236 42% 138 511 649 ====== ====== ======= ======= ====== ====== ====== R&D SYSTEMS EUROPE (in thousands of $'s) Increase (Decrease) Fiscal 2007 From Fiscal 2006 -------------------------------- ----------------------- First Second Percent First Second Quarter Quarter YTD Of Sales Quarter Quarter YTD ------- ------- ------- -------- ------- ------- ------- Sales 12,927 15,257 28,184 100% 1,052 2,151 3,203 Cost of sales 6,181 7,319 13,500 48% 337 765 1,102 ------ ------ ------- ------- ------ ------ ------ Gross margin 6,746 7,938 14,684 52% 715 1,386 2,101 Gross margin percentage 52.2% 52.0% 52.1% SG&A expense 2,020 2,405 4,425 16% 238 346 584 Interest income (771) (933) (1,704) (6%) (192) (361) (553) Exchange loss 147 (126) 21 -- 119 (172) (53) ------ ------ ------- ------- ------ ------ ------ 1,396 1,346 2,742 10% 165 (187) (22) ------ ------ ------- ------- ------ ------ ------ Pretax result 5,350 6,592 11,942 42% 550 1,573 2,123 ====== ====== ======= ======= ====== ====== ====== HEMATOLOGY (in thousands of $'s) Increase (Decrease) Fiscal 2007 From Fiscal 2006 -------------------------------- ----------------------- First Second Percent First Second Quarter Quarter YTD Of Sales Quarter Quarter YTD ------- ------- ------- -------- ------- ------- ------- Sales 3,502 3,826 7,328 100% (32) 45 13 Cost of sales 2,098 2,147 4,245 58% (7) 13 6 ------- ------- ------- -------- ------- ------- ------- Gross margin 1,404 1,679 3,083 42% (25) 32 7 Gross margin percentage 40.1% 43.9% 42.1% SG&A expense 398 439 837 11% 14 15 29 R&D expense 180 190 370 5% (5) 20 15 Interest, net (81) (95) (176) (2%) (44) (45) (89) ------- ------- ------- -------- ------- ------- ------- 497 534 1,031 14% (35) (10) (45) ------- ------- ------- -------- ------- ------- ------- Pretax result 907 1,145 2,052 28% 10 42 52 ====== ====== ======= ======= ====== ====== ====== CORPORATE AND OTHER (2) (in thousands of $'s) Increase (Decrease) Fiscal 2007 From Fiscal 2006 ----------------------- ----------------------- First Second First Second Quarter Quarter YTD Quarter Quarter YTD ------- ------- ------- ------- ------- ------- Interest income 229 206 435 139 71 210 Rental income 299 241 540 (43) (96) (139) ------- ------- ------- ------- ------- ------- 528 447 975 96 (25) 71 SG&A expense 636 1,322 1,958 (13) 19 6 Interest expense 268 815 1,083 45 577 622 Other-Building expenses 510 549 1,059 67 59 126 Other-Hemerus losses 127 123 250 45 41 86 Other-Nephromics losses -- 123 123 -- 123 123 ------- ------- ------- ------- ------- ------- 1,541 2,932 4,473 144 819 963 ------- ------- ------- ------- ------- ------- Pretax result (1,013) (2,485) (3,498) (48) (844) (892) ======= ======= ======= ======= ======= ======= (2) Unallocated corporate expenses and Techne's share of losses by Hemerus Medical, LLC and Nephromics, LLC.