SEGMENT INFORMATION
TECHNE CORPORATION AND SUBISIDARIES
(in thousands of $'s, except per share data)
Increase (Decrease)
Fiscal 2007 From Fiscal 2006
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First Second Third Percent First Second Third
Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter YTD
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Sales 52,351 52,509 60,197 165,057 100% 4,642 4,480 5,384 14,506
Cost of sales 11,237 10,714 12,019 33,970 21% 141 19 (86) 74
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Gross margin 41,114 41,795 48,178 131,087 79% 4,501 4,461 5,470 14,432
Gross margin
percentage 78.5% 79.6% 80.0% 79.4%
SG&A expense 7,067 8,830 7,229 23,126 14% 613 850 328 1,791
R&D expense 4,855 5,044 5,169 15,068 9% 138 470 408 1,016
Amortization expense 403 404 403 1,210 1% (89) (88) (89) (266)
Interest expense 268 815 0 1,083 1% 45 577 (245) 377
Interest income (1,676) (1,956) (2,237) (5,869) (4%) (702) (826) (1,155) (2,683)
Other non-
operating ex., net 485 428 767 1,680 1% 274 147 538 959
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11,402 13,565 11,331 36,298 22% 279 1,130 (215) 1,194
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Earnings before
income taxes 29,712 28,230 36,847 94,789 57% 4,222 3,331 5,685 13,238
Income taxes 10,081 9,567 12,954 32,602 20% 1,592 1,182 2,139 4,913
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19,631 18,663 23,893 62,187 37% 2,630 2,149 3,546 8,325
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Diluted earnings
per share .50 .47 .60 1.57
Weighted average
diluted shares
outstanding 39,469 39,511 39,543 39,498
BIOTECHNOLOGY (1)
(in thousands of $'s)
Increase (Decrease)
Fiscal 2007 From Fiscal 2006
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First Second Third Percent First Second Third
Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter YTD
------- ------- ------- ------- -------- ------- ------- ------- -------
Sales 41,621 40,073 46,202 127,896 100% 4,022 2,376 3,189 9,587
Intersegment sales (5,699) (6,647) (7,072) (19,418) (400) (92) (676) (1,168)
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35,922 33,426 39,130 108,478 3,622 2,284 2,513 8,419
Cost of sales 8,482 7,683 9,041 25,206 20% 12 (464) (84) (536)
Intersegment sales (5,524) (6,435) (7,147) (19,106) (201) (295) (669) (1,165)
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2,958 1,248 1,894 6,100 (189) (759) (753) (1,701)
Gross margin 32,964 32,178 37,236 102,378 80% 3,811 3,043 3,266 10,120
Gross margin
percentage 79.6% 80.8% 80.4% 80.3%
SG&A expense 4,013 4,664 4,166 12,843 10% 374 470 (33) 811
R&D expense 4,675 4,854 4,971 14,500 11% 143 450 378 971
Amortization expense 403 404 403 1,210 2% (89) (88) (89) (266)
Interest, net (595) (722) (841) (2,158) (2%) (327) (349) (556) (1,232)
------- ------- ------- ------- ------- ------- ------- -------
8,496 9,200 8,699 26,395 21% 101 483 (300) 284
------- ------- ------- ------- ------- ------- ------- -------
Pretax result 24,468 22,978 28,537 75,983 59% 3,710 2,560 3,566 9,836
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(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
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First Second Third Percent First Second Third
Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter YTD
------- ------- ------- ------- -------- ------- ------- ------- -------
Sales 6,870 7,851 8,854 23,575 100% 180 322 598 1,100
Cost of sales 3,285 3,766 4,091 11,142 47% (7) 1 (100) (106)
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Gross margin 3,585 4,085 4,763 12,433 53% 187 321 698 1,206
Gross margin
percentage 52.2% 52.0% 53.8% 52.7%
SG&A expense 1,074 1,236 1,075 3,385 14% 70 51 5 126
Interest income (410) (480) (542) (1,432) (6%) (84) (151) (200) (435)
Exchange loss/(gain) 78 (64) 22 36 -- 63 (90) 71 44
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742 692 555 1,989 8% 49 (190) (124) (265)
------- ------- ------- ------- -------- ------- ------- ------- -------
Pretax result 2,843 3,393 4,208 10,444 45% 138 511 822 1,471
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R&D SYSTEMS EUROPE
(in thousands of $'s)
Increase (Decrease)
Fiscal 2007 From Fiscal 2006
------------------------------------------ ----------------------------------
First Second Third Percent First Second Third
Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter YTD
------- ------- ------- ------- -------- ------- ------- ------- -------
Sales 12,927 15,257 17,403 45,587 100% 1,052 2,151 2,907 6,110
Cost of sales 6,181 7,319 8,040 21,540 47% 337 765 682 1,784
------- ------- ------- ------- -------- ------- ------- ------- -------
Gross margin 6,746 7,938 9,363 24,047 53% 715 1,386 2,225 4,326
Gross margin
percentage 52.2% 52.0% 53.8% 52.7%
SG&A expense 2,020 2,405 2,112 6,537 14% 238 346 233 817
Interest income (771) (933) (1,067) (2,771) (6%) (192) (361) (467) (1,020)
Exchange loss 147 (126) 42 63 -- 119 (172) 129 76
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1,396 1,346 1,087 3,829 8% 165 (187) (105) (127)
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Pretax result 5,350 6,592 8,276 20,218 45% 550 1,573 2,330 4,453
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HEMATOLOGY
(in thousands of $'s)
Increase (Decrease)
Fiscal 2007 From Fiscal 2006
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First Second Third Percent First Second Third
Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter YTD
------- ------- ------- ------- -------- ------- ------- ------- -------
Sales 3,502 3,826 3,664 10,992 100% (32) 45 (36) (23)
Cost of sales 2,098 2,147 2,085 6,330 58% (7) 13 (15) (9)
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Gross margin 1,404 1,679 1,579 4,662 42% (25) 32 (21) (14)
Gross margin
percentage 40.1% 43.9% 43.1% 42.4%
SG&A expense 398 439 431 1,268 12% 14 15 (10) 19
R&D expense 180 190 198 568 5% (5) 20 30 45
Interest, net (81) (95) (111) (287) (3%) (44) (45) (71) (160)
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497 534 518 1,549 14% (35) (10) (51) (96)
------- ------- ------- ------- -------- ------- ------- ------- -------
Pretax result 907 1,145 1,061 3,113 28% 10 42 30 82
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CORPORATE AND OTHER (2)
(in thousands of $'s)
Increase (Decrease)
Fiscal 2007 From Fiscal 2006
----------------------------------- ----------------------------------
First Second Third First Second Third
Quarter Quarter Quarter YTD Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- ------- ------- -------
Interest income 229 206 218 653 139 71 61 271
Rental income 299 241 55 595 (43) (96) (232) (371)
------- ------- ------- ------- ------- ------- ------- -------
528 447 273 1,248 96 (25) (171) (100)
SG&A expense 636 1,322 520 2,478 (13) 19 138 144
Interest expense 268 815 0 1,083 45 577 (245) 377
Other-Building
expenses 510 549 519 1,578 67 59 (1) 125
Other-Hemerus losses 127 123 119 369 45 41 36 122
Other-Nephromics
losses -- 123 142 265 -- 123 142 265
------- ------- ------- ------- ------- ------- ------- -------
1,541 2,932 1,300 5,773 144 819 70 1,033
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Pretax result (1,013) (2,485) (1,027) (4,525) (48) (844) (241) (1,133)
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(2) Unallocated corporate expenses and Techne's share
of losses by Hemerus Medical, LLC and Nephromics, LLC.