SEGMENT INFORMATION TECHNE CORPORATION AND SUBISIDARIES (in thousands of $'s, except per share data) Increase (Decrease) Fiscal 2010 From Fiscal 2009 --------------------------------- ---------------------- First Second Percent First Second Quarter Quarter YTD of Sales Quarter Quarter YTD ------- ------- ------- -------- ------- ------- ------ Sales 66,534 65,521 132,055 100% (2,790) 3,645 855 Cost of sales 12,901 13,329 26,230 20% (185) (101) (286) ------- ------- ------- -------- ------- ------- ------ Gross margin 53,633 52,192 105,825 80% (2,605) 3,746 1,141 Gross margin percentage 80.6% 79.7% 80.1% SG&A expense 8,038 9,007 17,045 13% (802) (696)(1,498) R&D expense 6,154 6,391 12,545 10% 244 545 789 Amortization expense 240 240 480 -- -- -- -- Interest income (1,168) (1,156) (2,324) (2%) 1,719 1,049 2,768 Other non-operating ex., net 662 1,011 1,673 1% (525) 299 (226) ------- ------- ------- -------- ------- ------- ------ 13,926 15,493 29,419 22% 636 1,197 1,833 ------- ------- ------- -------- ------- ------- ------ Earnings before income taxes 39,707 36,699 76,406 58% (3,241) 2,549 (692) Income taxes 12,935 11,978 24,913 19% (1,420) 1,467 47 ------- ------- ------- -------- ------- ------- ------ 26,772 24,721 51,493 39% (1,821) 1,082 (739) ======= ======= ======= ======== ======= ======= ====== Diluted earnings per share .72 .66 1.38 Weighted average diluted shares outstanding 37,339 37,353 37,346 BIOTECHNOLOGY (1) (in thousands of $'s) Increase (Decrease) Fiscal 2010 From Fiscal 2009 --------------------------------- ---------------------- First Second Percent First Second Quarter Quarter YTD of Sales Quarter Quarter YTD ------- ------- ------- -------- ------- ------- ------ Sales 51,696 50,703 102,399 100% (2,203) 2,060 (143) Intersegment sales (7,668) (8,282) (15,950) 94 29 123 ------- ------- ------- ------- ------- ------ 44,028 42,421 86,449 (2,109) 2,089 (20) Cost of sales 9,885 10,126 20,011 20% (362) (964)(1,326) Intersegment sales (7,598) (7,753) (15,351) (137) 586 449 ------- ------- ------- -------- ------- ------- ------ 2,287 2,373 4,660 (499) (378) (877) Gross margin 41,741 40,048 81,789 80% (1,610) 2,467 857 Gross margin percentage 80.9% 80.0% 80.5% SG&A expense 4,734 5,056 9,790 10% (407) (362) (769) R&D expense 5,956 6,190 12,146 12% 239 547 786 Amortization expense 240 240 480 -- -- -- -- Interest income (771) (772) (1,543) (1%) 313 198 511 Other expense 2 1 3 -- 4 -- 4 ------- ------- ------- -------- ------- ------- ------ 10,161 10,715 20,876 21% 149 383 532 ------- ------- ------- -------- ------- ------- ------ Pretax result 31,580 29,333 60,913 59% (1,759) 2,084 325 ======= ======= ======= ======== ======= ======= ====== (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 2010 From Fiscal 2009 --------------------------------- ---------------------- First Second Percent First Second Quarter Quarter YTD of Sales Quarter Quarter YTD ------- ------- ------- -------- ------- ------- ------ Sales 10,881 11,462 22,343 100% 706 265 971 Cost of sales 5,061 5,288 10,349 46% 801 (73) 728 ------- ------- ------- -------- ------- ------- ------ Gross margin 5,820 6,174 11,994 54% (95) 338 243 Gross margin percentage 53.5% 53.9% 53.7% SG&A expense 1,191 1,318 2,509 11% (33) (46) (79) Interest income (87) (79) (166) -- 703 504 1,207 Exchange loss/(gain) (89) 61 (28) -- (349) 96 (253) ------- ------- ------- -------- ------- ------- ------ 1,015 1,300 2,315 11% 321 554 875 ------- ------- ------- -------- ------- ------- ------ Pretax result 4,805 4,874 9,679 43% (416) (216) (632) ======= ======= ======= ======== ======= ======= ====== R&D SYSTEMS EUROPE (in thousands of $'s) Increase (Decrease) Fiscal 2010 From Fiscal 2009 --------------------------------- ---------------------- First Second Percent First Second Quarter Quarter YTD of Sales Quarter Quarter YTD ------- ------- ------- -------- ------- ------- ------ Sales 17,838 18,775 36,613 100% (1,103) 1,491 388 Cost of sales 8,295 8,664 16,959 46% 364 390 754 ------- ------- ------- -------- ------- ------- ------ Gross margin 9,543 10,111 19,654 54% (1,467) 1,101 (366) Gross margin percentage 53.5% 53.9% 53.7% SG&A expense 1,952 2,159 4,111 11% (331) 65 (266) Interest income (143) (128) (271) -- 1,328 778 2,106 Exchange loss/(gain) (145) 99 (46) -- (621) 94 (527) ------- ------- ------- -------- ------- ------- ------ 1,664 2,130 3,794 11% 376 937 1,313 ------- ------- ------- -------- ------- ------- ------ Pretax result 7,879 7,981 15,860 43% (1,843) 164 (1,679) ======= ======= ======= ======== ======= ======= ====== HEMATOLOGY (in thousands of $'s) Increase (Decrease) Fiscal 2010 From Fiscal 2009 --------------------------------- ---------------------- First Second Percent First Second Quarter Quarter YTD of Sales Quarter Quarter YTD ------- ------- ------- -------- ------- ------- ------ Sales 4,668 4,325 8,993 100% 422 65 487 Cost of sales 2,319 2,292 4,611 51% (50) (113) (163) ------- ------- ------- -------- ------- ------- ------ Gross margin 2,349 2,033 4,382 49% 472 178 650 Gross margin percentage 50.3% 47.0% 48.7% SG&A expense 370 366 736 8% (66) (32) (98) R&D expense 198 201 399 4% 5 (2) 3 Interest income (72) (72) (144) (1%) 30 19 49 ------- ------- ------- -------- ------- ------- ------ 496 495 991 11% (31) (15) (46) ------- ------- ------- -------- ------- ------- ------ Pretax result 1,853 1,538 3,391 38% 503 193 696 ======= ======= ======= ======== ======= ======= ====== CORPORATE AND OTHER (2) (in thousands of $'s) Increase (Decrease) Fiscal 2010 From Fiscal 2009 ------------------------ ---------------------- First Second First Second Quarter Quarter YTD Quarter Quarter YTD ------- ------- ------- ------- ------- ------ Interest income 182 184 366 (48) (54) (102) Rental income 81 115 196 (18) (16) (34) ------- ------- ------- ------- ------- ------ 263 299 562 (66) (70) (136) SG&A expense 982 1,426 2,408 2 (367) (365) Other-Building expenses 548 530 1,078 (5) (21) (26) Other-Equity Investment losses 338 496 834 79 210 289 ------- ------- ------- ------- ------- ------ 1,868 2,452 4,320 76 (178) (102) ------- ------- ------- ------- ------- ------ Pretax result (1,605) (2,153) (3,758) (142) 108 (34) ======= ======= ======= ======= ======= ====== (2) Unallocated corporate expenses and Techne's share of losses by Hemerus Medical, LLC and Nephromics, LLC.