SEGMENT INFORMATION TECHNE CORPORATION AND SUBISIDARIES (in thousands of $'s, except per share data) Increase (Decrease) Fiscal 2010 From Fiscal 2009 ---------------------------------- ------------------------ First Second Third % of First Second Third Qtr Qtr Qtr YTD Sales Qtr Qtr Qtr YTD ------ ------ ------ ------- ----- ----- ------ ----- ----- Sales 66,534 65,521 70,278 202,333 100% (2,790) 3,645 2,412 3,267 Cost of sales 12,901 13,329 14,399 40,629 20% (185) (101) 83 (203) ------ ------ ------ ------- ----- ----- ------ ----- ----- Gross margin 53,633 52,192 55,879 161,704 80% (2,605) 3,746 2,329 3,470 Gross margin percentage 80.6% 79.7% 79.5% 79.9% SG&A expense 8,038 9,007 7,666 24,711 12% (802) (696) 605 (893) R&D expense 6,154 6,391 6,325 18,870 10% 244 545 516 1,305 Amortization expense 240 240 240 720 -- -- -- -- -- Interest income (1,168)(1,156)(1,040) (3,364) (1%) 1,719 1,049 464 3,232 Other non- operating ex., net 662 1,011 1,249 2,922 1% (525) 299 146 (80) ------ ------ ------ ------- ----- ----- ------ ----- ----- 13,926 15,493 14,440 43,859 22% 636 1,197 1,731 3,564 ------ ------ ------ ------- ----- ----- ------ ----- ----- Earnings before income taxes 39,707 36,699 41,439 117,845 58% (3,241) 2,549 598 (94) Income taxes 12,935 11,978 9,051 33,964 17% (1,420) 1,450 (4,149)(4,119) ------ ------ ------ ------- ----- ----- ------ ----- ----- 26,772 24,721 32,388 83,881 41% (1,821) 1,099 4,747 4,025 ====== ====== ====== ======= ===== ===== ====== ===== ===== Diluted earnings per share .72 .66 .87 2.25 Weighted avg. diluted shares outstanding 37,339 37,353 37,380 37,357 BIOTECHNOLOGY (1) (in thousands of $'s) Increase (Decrease) Fiscal 2010 From Fiscal 2009 ---------------------------------- ------------------------ First Second Third % of First Second Third Qtr Qtr Qtr YTD Sales Qtr Qtr Qtr YTD ------ ------ ------ ------- ----- ----- ------ ----- ----- Sales 51,696 50,703 54,236 156,635 100% (2,203) 2,060 518 375 Intersegment sales (7,668)(8,282)(8,057)(24,007) 94 29 522 645 ------ ------ ------ ------- ----- ------ ----- ----- 44,028 42,421 46,179 132,628 (2,109) 2,089 1,040 1,020 Cost of sales 9,885 10,126 11,159 31,170 20% (362) (964) 79 (1,247) Intersegment sales (7,598)(7,753)(8,336)(23,687) (137) 586 158 607 ------ ------ ------ ------- ----- ----- ------ ----- ----- 2,287 2,373 2,823 7,483 (499) (378) 237 (640) Gross margin 41,741 40,048 43,356 125,145 80% (1,610) 2,467 803 1,660 Gross margin percentage 80.9% 80.0% 79.4% 80.1% SG&A expense 4,734 5,056 4,625 14,415 9% (407) (362) 363 (406) R&D expense 5,956 6,190 6,127 18,273 12% 239 547 505 1,291 Amortization expense 240 240 240 720 -- -- -- -- -- Interest, net (771) (772) (706) (2,249) (1%) 313 198 147 658 Other expense 2 1 -- 3 -- 4 -- (1) 3 ------ ------ ------ ------- ----- ----- ------ ----- ----- 10,161 10,715 10,286 31,162 20% 149 383 1,014 1,546 ------ ------ ------ ------- ----- ----- ------ ----- ----- Pretax result 31,580 29,333 33,070 93,983 60% (1,759) 2,084 (211) 114 ====== ====== ====== ======= ===== ===== ====== ===== ===== (1) Includes R&D Systems' Biotechnology Division, BiosPacific, Inc. and R&D China R&D SYSTEMS EUROPE (in thousands of Br. pounds) Increase (Decrease) Fiscal 2010 From Fiscal 2009 ---------------------------------- ------------------------ First Second Third % of First Second Third Qtr Qtr Qtr YTD Sales Qtr Qtr Qtr YTD ------ ------ ------ ------- ----- ----- ------ ----- ----- Sales 10,881 11,462 12,296 34,639 100% 706 265 (420) 551 Cost of sales 5,061 5,288 5,824 16,173 47% 801 (73) (716) 12 ------ ------ ------ ------- ----- ----- ------ ----- ----- Gross margin 5,820 6,174 6,472 18,466 53% (95) 338 296 539 Gross margin percentage 53.5% 53.9% 52.6% 53.3% SG&A expense 1,191 1,318 1,260 3,769 11% (33) (46) 69 (10) Interest (87) (79) (68) (234) (1%) 703 504 167 1,374 Exchange loss/ (gain) (89) 61 237 209 -- (349) 96 74 (179) ------ ------ ------ ------- ----- ----- ------ ----- ----- 1,015 1,300 1,429 3,744 10% 321 554 310 1,185 ------ ------ ------ ------- ----- ----- ------ ----- ----- Pretax result 4,805 4,874 5,043 14,722 43% (416) (216) (14) (646) ====== ====== ====== ======= ===== ===== ====== ===== ===== R&D SYSTEMS EUROPE (in thousands of $'s) Increase (Decrease) Fiscal 2010 From Fiscal 2009 ---------------------------------- ------------------------ First Second Third % of First Second Third Qtr Qtr Qtr YTD Sales Qtr Qtr Qtr YTD ------ ------ ------ ------- ----- ----- ------ ----- ----- Sales 17,838 18,775 19,161 55,774 100% (1,103) 1,491 868 1,256 Cost of sales 8,295 8,664 9,071 26,030 47% 364 390 (334) 420 ------ ------ ------ ------- ----- ----- ------ ----- ----- Gross margin 9,543 10,111 10,090 29,744 53% (1,467) 1,101 1,202 836 Gross margin percentage 53.5% 53.9% 52.7% 53.3% SG&A expense 1,952 2,159 1,967 6,078 11% (331) 65 253 (13) Interest (143) (128) (108) (379) (1%) 1,328 778 230 2,336 Exchange loss/ (gain) (145) 99 372 326 -- (621) 94 134 (393) ------ ------ ------ ------- ----- ----- ------ ----- ----- 1,664 2,130 2,231 6,025 10% 376 937 617 1,930 ------ ------ ------ ------- ----- ----- ------ ----- ----- Pretax result 7,879 7,981 7,859 23,719 43% (1,843) 164 585 (1,094) ====== ====== ====== ======= ===== ===== ====== ===== ===== HEMATOLOGY (in thousands of $'s) Increase (Decrease) Fiscal 2010 From Fiscal 2009 ---------------------------------- ------------------------ First Second Third % of First Second Third Qtr Qtr Qtr YTD Sales Qtr Qtr Qtr YTD ------ ------ ------ ------- ----- ----- ------ ----- ----- Sales 4,668 4,325 4,938 13,931 100% 422 65 504 991 Cost of sales 2,319 2,292 2,505 7,116 51% (50) (113) 180 17 ------ ------ ------ ------- ----- ----- ------ ----- ----- Gross margin 2,349 2,033 2,433 6,815 49% 472 178 324 974 Gross margin percentage 50.3% 47.0% 49.3% 48.9% SG&A expense 370 366 346 1,082 8% (66) (32) 36 (62) R&D expense 198 201 198 597 4% 5 (2) 11 14 Interest, net (72) (72) (65) (209) (1%) 30 19 15 64 ------ ------ ------ ------- ----- ----- ------ ----- ----- 496 495 479 1,470 11% (31) (15) 62 16 ------ ------ ------ ------- ----- ----- ------ ----- ----- Pretax result 1,853 1,538 1,954 5,345 38% 503 193 262 958 ====== ====== ====== ======= ===== ===== ====== ===== ===== CORPORATE AND OTHER (2) (in thousands of $'s) Increase (Decrease) Fiscal 2010 From Fiscal 2009 ---------------------------- ------------------------ First Second Third First Second Third Qtr Qtr Qtr YTD Qtr Qtr Qtr YTD ------ ------ ------ ------- ----- ------ ----- ----- Interest income 182 184 161 527 (48) (54) (72) (174) Rental income 81 115 83 279 (18) (16) (32) (66) ------ ------ ------ ------- ----- ------ ----- ----- 263 299 244 806 (66) (70) (104) (240) SG&A expense 982 1,426 728 3,136 2 (367) (47) (412) Other-Building expenses 548 530 593 1,671 (5) (21) 20 (6) Other-Equity Investment losses 338 496 367 1,201 79 210 (39) 250 ------ ------ ------ ------- ----- ------ ----- ----- 1,868 2,452 1,688 6,008 76 (178) (66) (168) ------ ------ ------ ------- ----- ------ ----- ----- Pretax result (1,605)(2,153)(1,444) (5,202) (142) 108 (38) (72) ====== ====== ====== ======= ===== ====== ===== ===== (2) Unallocated corporate expenses and Techne's share of losses by Hemerus Medical, LLC and Nephromics, LLC.