SEGMENT INFORMATION TECHNE CORPORATION AND SUBISIDARIES (in thousands of $'s, except per share data)
Increase (Decrease) Fiscal 2008 From Fiscal 2007 ------------------------------------------------ -------------------------------------- First Second Third Fourth Percent First Second Third Fourth Quarter Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter Quarter YTD ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------ Sales 57,987 62,142 69,522 67,769 257,420 100% 5,636 9,633 9,325 9,344 33,938 Cost of sales 12,104 12,751 14,146 13,888 52,889 21% 867 2,037 2,127 1,191 6,222 ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------ Gross margin 45,883 49,391 55,376 53,881 204,531 79% 4,769 7,596 7,198 8,153 27,716 Gross margin percentage 79.1% 79.5% 79.7% 79.5% 79.5% SG&A expense 8,090 10,645 8,994 8,986 36,715 14% 1,023 1,815 1,765 1,147 5,750 R&D expense 5,181 5,562 5,839 5,812 22,394 9% 326 518 670 798 2,312 Amortization expense 288 282 283 282 1,135 - (115) (122) (120) (122) (479) Interest expense 0 0 0 0 0 - (268) (815) 0 0 (1,083) Interest income (2,998) (3,252) (3,155) (2,783)(12,188) (5%) (1,322) (1,296) (918) (218)(3,754) Other non-opera- ting ex., net 569 573 423 1,079 2,644 1% 84 145 (344) 185 70 ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------ 11,130 13,810 12,384 13,376 50,700 19% (272) 245 1,053 1,790 2,816 ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------ Earnings before income taxes 34,753 35,581 42,992 40,505 153,831 60% 5,041 7,351 6,145 6,363 24,900 Income taxes 11,681 11,942 13,402 13,248 50,273 20% 1,600 2,375 448 2,030 6,453 ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------ 23,072 23,639 29,590 27,257 103,558 40% 3,441 4,976 5,697 4,333 18,447 ======= ======= ======= ======= ======= ======== ======= ======= ======= ======= ====== Diluted earnings per share .58 .60 .76 .70 2.64 Weighted average diluted shares outstanding 39,587 39,497 39,108 38,788 39,247
BIOTECHNOLOGY (1) (in thousands of $'s)
Increase (Decrease) Fiscal 2008 From Fiscal 2007 ------------------------------------------------ -------------------------------------- First Second Third Fourth Percent First Second Third Fourth Quarter Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter Quarter YTD ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------ Sales 45,328 46,576 52,912 49,995 194,811 100% 3,707 6,503 6,710 5,207 22,127 Intersegment sales (6,447) (7,433) (7,822) (7,446)(29,148) (748) (786) (750) (794)(3,078) ------- ------- ------- ------- ------- ------- ------- ------- ------- ------ 38,881 39,143 45,090 42,549 165,663 2,959 5,717 5,960 4,413 19,049 Cost of sales 8,997 9,612 10,709 10,247 39,565 20% 515 1,929 1,668 670 4,782 Intersegment sales (6,174) (7,430) (7,755) (7,738)(29,097) (650) (995) (608) (1,059)(3,312) ------- ------- ------- ------- ------- ------- ------- ------- ------- ------ 2,823 2,182 2,954 2,509 10,468 (135) 934 1,060 (389) 1,470 Gross margin 36,058 36,961 42,136 40,040 155,195 80% 3,094 4,783 4,900 4,802 17,579 Gross margin percentage 80.2% 79.4% 79.8% 79.5% 79.7% SG&A expense 4,624 5,534 5,257 5,566 20,981 10% 611 870 1,091 949 3,521 R&D expense 5,002 5,368 5,640 5,622 21,632 11% 327 514 669 789 2,299 Amortization expense 288 282 283 282 1,135 1% (115) (122) (120) (122) (479) Interest, net (1,257) (1,309) (1,285) (988) (4,839) (2%) (662) (587) (444) 43 (1,650) Exchange loss/ (gain) 34 12 (5) 389 430 -- 34 12 (5) 389 430 ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------ 8,691 9,887 9,890 10,871 39,339 20% 195 687 1,191 2,048 4,121 ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------ Pretax result 27,367 27,074 32,246 29,169 115,856 60% 2,899 4,096 3,709 2,754 13,458 ======= ======= ======= ======= ======= ======== ======= ======= ======= ======= ======
(1) Includes R&D Systems' Biotechnology Division, BiosPacific, Inc. and R&D China R&D SYSTEMS EUROPE (in thousands of British pounds)
Increase (Decrease) Fiscal 2008 From Fiscal 2007 ------------------------------------------------ -------------------------------------- First Second Third Fourth Percent First Second Third Fourth Quarter Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter Quarter YTD ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------ Sales 7,605 9,301 10,180 10,565 37,651 100% 735 1,450 1,326 2,411 5,922 Cost of sales 3,455 4,053 4,392 4,486 16,386 44% 170 287 301 689 1,447 ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------ Gross margin 4,150 5,248 5,788 6,079 21,265 56% 565 1,163 1,025 1,722 4,475 Gross margin percentage 54.6% 56.4% 56.9% 57.5% 56.5% SG&A expense 1,114 1,276 1,163 1,253 4,806 13% 40 40 88 140 308 Interest income (683) (773) (762) (740) (2,958) (8%) (273) (293) (220) (145) (931) Exchange gain (96) (81) (230) (9) (416) (2%) (174) (17) (252) (15) (458) ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------ 335 422 171 504 1,432 3% (407) (270) (384) (20)(1,081) ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------ Pretax result 3,815 4,826 5,617 5,575 19,833 53% 972 1,433 1,409 1,742 5,556 ======= ======= ======= ======= ======= ======== ======= ======= ======= ======= ======
R&D SYSTEMS EUROPE (in thousands of $'s)
Increase (Decrease) Fiscal 2008 From Fiscal 2007 ------------------------------------------------ -------------------------------------- First Second Third Fourth Percent First Second Third Fourth Quarter Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter Quarter YTD ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------ Sales 15,449 19,027 20,226 21,033 75,735 100% 2,522 3,770 2,823 4,854 13,969 Cost of sales 7,020 8,293 8,726 8,922 32,961 44% 839 974 686 1,381 3,880 ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------ Gross margin 8,429 10,734 11,500 12,111 42,774 56% 1,683 2,796 2,137 3,473 10,089 Gross margin percentage 54.6% 56.4% 56.9% 57.6% 56.5% SG&A expense 2,262 2,599 2,311 2,495 9,667 13% 242 194 199 276 911 Interest income (1,387) (1,576) (1,514) (1,472) (5,949) (8%) (616) (643) (447) (298)(2,004) Exchange gain (198) (165) (457) (17) (837) (2%) (345) (39) (499) (36) (919) ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------ 677 858 340 1,006 2,881 3% (719) (488) (747) (58)(2,012) ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------ Pretax result 7,752 9,876 11,160 11,105 39,893 53% 2,402 3,284 2,884 3,531 12,101 ======= ======= ======= ======= ======= ======== ======= ======= ======= ======= ======
HEMATOLOGY (in thousands of $'s)
Increase (Decrease) Fiscal 2008 From Fiscal 2007 ------------------------------------------------ -------------------------------------- First Second Third Fourth Percent First Second Third Fourth Quarter Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter Quarter YTD ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------ Sales 3,657 3,972 4,206 4,187 16,022 100% 155 146 542 77 920 Cost of sales 2,261 2,276 2,466 2,457 9,460 59% 163 129 381 199 872 ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------ Gross margin 1,396 1,696 1,740 1,730 6,562 41% (8) 17 161 (122) 48 Gross margin percentage 38.2% 42.7% 41.4% 41.3% 41.0% SG&A expense 467 487 489 560 2,003 12% 69 48 58 138 313 R&D expense 179 194 199 190 762 5% (1) 4 1 9 13 Interest, net (120) (125) (123) (93) (461) (3%) (39) (30) (12) 43 (38) ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------ 526 556 565 657 2,304 14% 29 22 47 190 288 ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------ Pretax result 870 1,140 1,175 1,073 4,258 27% (37) (5) 114 (312) (240) ======= ======= ======= ======= ======= ======== ======= ======= ======= ======= ======
CORPORATE AND OTHER (2) (in thousands of $'s)
Increase (Decrease) Fiscal 2008 From Fiscal 2007 --------------------------------------- -------------------------------------- First Second Third Fourth First Second Third Fourth Quarter Quarter Quarter Quarter YTD Quarter Quarter Quarter Quarter YTD ------- ------- ------- ------- ------- ------- ------- ------- ------- ------ Interest income 234 242 233 230 939 5 36 15 6 62 Rental income 67 111 91 135 404 (232) (130) 36 44 (282) ------- ------- ------- ------- ------- ------- ------- ------- ------- ------ 301 353 324 365 1,343 (227) (94) 51 50 (220) SG&A expense 737 2,025 937 365 4,064 101 703 417 (216) 1,005 Interest expense -- -- -- -- -- (268) (815) -- -- (1,083) Other-Building expenses 544 600 633 538 2,315 34 51 114 (96) 103 Other-Equity Investment losses 256 237 343 304 1,140 129 (9) 82 (28) 174 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------ 1,537 2,862 1,913 1,207 7,519 (4) (70) 613 (340) 199 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------ Pretax result (1,236) (2,509) (1,589) (842) (6,176) (223) (24) (562) 390 (419) ======= ======= ======= ======= ======= ======= ======= ======= ======= ======
(2) Unallocated corporate expenses and Techne's share of losses by Hemerus Medical, LLC and Nephromics, LLC.