SEGMENT INFORMATION TECHNE CORPORATION AND SUBISIDARIES (in thousands of $'s, except per share data) Fiscal 2010 Increase (Decrease) From Fiscal 2009 ------------------------------------------------- --------------------------------------- First Second Third Fourth Percent First Second Third Fourth Quarter Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter Quarter YTD ------- ------- ------- ------- -------- -------- ------- ------- ------- ------- ------- Sales 66,534 65,521 70,278 66,714 269,047 100% (2,790) 3,645 2,412 1,824 5,091 Cost of sales 12,901 13,329 14,399 13,834 54,463 20% (185) (101) 83 (822) (1,025) ------- ------- ------- ------- -------- -------- ------- ------- ------- ------- ------- Gross margin 53,633 52,192 55,879 52,880 214,584 80% (2,605) 3,746 2,329 2,646 6,116 Gross margin percentage 80.6% 79.7% 79.5% 79.3% 79.8% SG&A expense 8,038 9,007 7,666 7,464 32,175 12% (802) (696) 605 (96) (989) R&D expense 6,154 6,391 6,325 6,251 25,121 10% 244 545 516 252 1,557 Amortization expense 240 240 240 240 960 -- -- -- -- -- -- Interest income (1,168) (1,156) (1,040) (1,011) (4,375) (2%) 1,719 1,049 464 27 3,259 Other non-oper- ating ex., net 662 1,011 1,249 1,335 4,257 2% (525) 299 146 1,286 1,206 ------- ------- ------- ------- -------- -------- ------- ------- ------- ------- ------- 13,926 15,493 14,440 14,279 58,138 22% 636 1,197 1,731 1,469 5,033 ------- ------- ------- ------- -------- -------- ------- ------- ------- ------- ------- Earnings before income taxes 39,707 36,699 41,439 38,601 156,446 58% (3,241) 2,549 598 1,177 1,083 Income taxes 12,935 11,978 9,051 12,706 46,670 17% (1,420) 1,450 (4,149) 668 (3,451) ------- ------- ------- ------- -------- -------- ------- ------- ------- ------- ------- 26,772 24,721 32,388 25,895 109,776 41% (1,821) 1,099 4,747 509 4,534 ======= ======= ======= ======= ======== ======== ======= ======= ======= ======= ======= Diluted earnings per share .72 .66 .87 .69 2.94 Weighted average diluted shares outstanding 37,339 37,353 37,380 37,314 37,347
BIOTECHNOLOGY (1) (in thousands of $'s) Fiscal 2010 Increase (Decrease) From Fiscal 2009 ------------------------------------------------- --------------------------------------- First Second Third Fourth Percent First Second Third Fourth Quarter Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter Quarter YTD ------- ------- ------- ------- -------- -------- ------- ------- ------- ------- ------- Sales 51,696 50,703 54,236 53,032 209,667 100% (2,203) 2,060 518 3,298 3,673 Intersegment sales (7,668) (8,282) (8,057) (7,771) (31,778) 94 29 522 (342) 303 ------- ------- ------- ------- -------- -------- ------- ------- ------- ------- ------- 44,028 42,421 46,179 45,261 177,889 (2,109) 2,089 1,040 2,956 3,976 Cost of sales 9,885 10,126 11,159 10,569 41,739 20% (362) (964) 79 258 (989) Intersegment sales (7,598) (7,753) (8,336) (7,857) (31,544) (137) 586 158 (403) 204 ------- ------- ------- ------- -------- -------- ------- ------- ------- ------- ------- 2,287 2,373 2,823 2,712 10,195 (499) (378) 237 (145) (785) Gross margin 41,741 40,048 43,356 42,549 167,694 80% (1,610) 2,467 803 3,101 4,761 Gross margin percentage 80.9% 80.0% 79.4% 80.1% 80.1% SG&A expense 4,734 5,056 4,625 4,532 18,947 9% (407) (362) 363 318 (88) R&D expense 5,956 6,190 6,127 6,058 24,331 12% 239 547 505 248 1,539 Amortization expense 240 240 240 240 960 -- -- -- -- -- -- Interest, net (771) (772) (706) (733) (2,982) (1%) 313 198 147 10 668 Other expense 2 1 -- (2) 1 -- 4 -- (1) (4) (1) ------- ------- ------- ------- -------- -------- ------- ------- ------- ------- ------- 10,161 10,715 10,286 10,095 41,257 20% 149 383 1,014 572 2,118 ------- ------- ------- ------- -------- -------- ------- ------- ------- ------- ------- Pretax result 31,580 29,333 33,070 32,454 126,437 60% (1,759) 2,084 (211) 2,529 2,643 ======= ======= ======= ======= ======== ======== ======= ======= ======= ======= =======
(1) Includes R&D Systems' Biotechnology Division, BiosPacific, Inc. and R&D China R&D SYSTEMS EUROPE (in thousands of Br. pounds) Fiscal 2010 Increase (Decrease) From Fiscal 2009 ------------------------------------------------- --------------------------------------- First Second Third Fourth Percent First Second Third Fourth Quarter Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter Quarter YTD ------- ------- ------- ------- -------- -------- ------- ------- ------- ------- ------- Sales 10,881 11,462 12,296 11,403 46,042 100% 706 265 (420) 269 820 Cost of sales 5,061 5,288 5,824 5,785 21,958 48% 801 (73) (716) 102 114 ------- ------- ------- ------- -------- -------- ------- ------- ------- ------- ------- Gross margin 5,820 6,174 6,472 5,618 24,084 52% (95) 338 296 167 706 Gross margin percentage 53.5% 53.9% 52.6% 49.3% 52.3% SG&A expense 1,191 1,318 1,260 1,315 5,084 11% (33) (46) 69 127 117 Interest income (87) (79) (68) (38) (272) -- 703 504 167 64 1,438 Exchange loss/ (gain) (89) 61 237 428 637 1% (349) 96 74 796 617 ------- ------- ------- ------- -------- -------- ------- ------- ------- ------- ------- 1,015 1,300 1,429 1,705 5,449 12% 321 554 310 987 2,172 ------- ------- ------- ------- -------- -------- ------- ------- ------- ------- ------- Pretax result 4,805 4,874 5,043 3,913 18,635 40% (416) (216) (14) (820) (1,466) ======= ======= ======= ======= ======== ======== ======= ======= ======= ======= =======
R&D SYSTEMS EUROPE (in thousands of $'s) Fiscal 2010 Increase (Decrease) From Fiscal 2009 ------------------------------------------------- --------------------------------------- First Second Third Fourth Percent First Second Third Fourth Quarter Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter Quarter YTD ------- ------- ------- ------- -------- -------- ------- ------- ------- ------- ------- Sales 17,838 18,775 19,161 16,990 72,764 100% (1,103) 1,491 868 (1,033) 223 Cost of sales 8,295 8,664 9,071 8,619 34,649 48% 364 390 (334) (811) (391) ------- ------- ------- ------- -------- -------- ------- ------- ------- ------- ------- Gross margin 9,543 10,111 10,090 8,371 38,115 52% (1,467) 1,101 1,202 (222) 614 Gross margin percentage 53.5% 53.9% 52.7% 49.3% 52.4% SG&A expense 1,952 2,159 1,967 1,961 8,039 11% (331) 65 253 85 72 Interest income (143) (128) (108) (57) (436) -- 1,328 778 230 (29) 2,307 Exchange loss/ Gain (145) 99 372 633 959 1% (621) 94 134 1,320 927 ------- ------- ------- ------- -------- -------- ------- ------- ------- ------- ------- 1,664 2,130 2,231 2,537 8,562 12% 376 937 617 1,376 3,306 ------- ------- ------- ------- -------- -------- ------- ------- ------- ------- ------- Pretax result 7,879 7,981 7,859 5,834 29,553 40% (1,843) 164 585 (1,598) (2,692) ======= ======= ======= ======= ======== ======== ======= ======= ======= ======= =======
HEMATOLOGY (in thousands of $'s) Fiscal 2010 Increase (Decrease) From Fiscal 2009 ------------------------------------------------- --------------------------------------- First Second Third Fourth Percent First Second Third Fourth Quarter Quarter Quarter Quarter YTD Of Sales Quarter Quarter Quarter Quarter YTD ------- ------- ------- ------- -------- -------- ------- ------- ------- ------- ------- Sales 4,668 4,325 4,938 4,463 18,394 100% 422 65 504 (99) 892 Cost of sales 2,319 2,292 2,505 2,503 9,619 52% (50) (113) 180 134 151 ------- ------- ------- ------- -------- -------- ------- ------- ------- ------- ------- Gross margin 2,349 2,033 2,433 1,960 8,775 48% 472 178 324 (233) 741 Gross margin percentage 50.3% 47.0% 49.3% 43.9% 47.7% SG&A expense 370 366 346 311 1,393 8% (66) (32) 36 (8) (70) R&D expense 198 201 198 193 790 4% 5 (2) 11 4 18 Interest, net (72) (72) (65) (68) (277) (1%) 30 19 15 4 68 ------- ------- ------- ------- -------- -------- ------- ------- ------- ------- ------- 496 495 479 436 1,906 11% (31) (15) 62 0 16 ------- ------- ------- ------- -------- -------- ------- ------- ------- ------- ------- Pretax result 1,853 1,538 1,954 1,524 6,869 37% 503 193 262 (233) 725 ======= ======= ======= ======= ======== ======== ======= ======= ======= ======= =======
CORPORATE AND OTHER (2) (in thousands of $'s) Fiscal 2010 Increase (Decrease) From Fiscal 2009 ---------------------------------------- --------------------------------------- First Second Third Fourth First Second Third Fourth Quarter Quarter Quarter Quarter YTD Quarter Quarter Quarter Quarter YTD ------- ------- ------- ------- -------- ------- ------- ------- ------- ------- Interest income 182 184 161 153 680 (48) (54) (72) (42) (216) Rental income 81 115 83 134 413 (18) (16) (32) (2) (68) ------- ------- ------- ------- -------- ------- ------- ------- ------- ------- 263 299 244 287 1,093 (66) (70) (104) (44) (284) SG&A expense 982 1,426 728 660 3,796 2 (367) (47) (491) (903) Other-Building expenses 548 530 593 529 2,200 (5) (21) 20 (2) (8) Other-Equity Investment losses 338 496 367 309 1,510 79 210 (39) (30) 220 ------- ------- ------- ------- -------- ------- ------- ------- ------- ------- 1,868 2,452 1,688 1,498 7,506 76 (178) (66) (523) (691) ------- ------- ------- ------- -------- ------- ------- ------- ------- ------- Pretax result (1,605) (2,153) (1,444) (1,211) (6,413) (142) 108 (38) 479 407 ======= ======= ======= ======= ======== ======= ======= ======= ======= =======
(2) Unallocated corporate expenses and Techne's share of losses by Hemerus Medical, LLC and Nephromics, LLC.