SEGMENT INFORMATION TECHNE CORPORATION AND SUBISIDARIES (in thousands of $'s, except per share data) Increase (Decrease) Fiscal 2011 From Fiscal 2010 --------------------------------- --------------------- First Second Percent First Second Qtr. Qtr. YTD Of Sales Qtr. Qtr. YTD ------ ------ ------- --------- ------ ------ ------ Sales 67,945 67,708 135,653 100% 1,411 2,187 3,598 Cost of sales 15,241 15,218 30,459 22% 2,340 1,889 4,229 ------ ------ ------- --------- ------ ------ ------ Gross margin 52,704 52,490 105,194 78% (929) 298 (631) Gross margin percentage 77.6% 77.5% 77.5% SG&A expense 7,552 8,365 15,917 12% (486) (642)(1,128) R&D expense 6,619 6,603 13,222 10% 465 212 677 Amortization expense 170 171 341 -- (70) (69) (139) Interest income (847) (1,020) (1,867) (1%) 321 136 457 Other non-operating ex., net 257 698 955 1% (405) (313) (718) ------ ------ ------- -------- ------ ------ ------ 13,751 14,817 28,568 22% (175) (676) (851) ------ ------ ------- -------- ------ ------ ------ Earnings before income taxes 38,953 37,673 76,626 56% (754) 974 220 Income taxes 12,580 11,139 23,719 17% (355) (839)(1,194) ------ ------ ------- -------- ------ ------ ------ 26,373 26,534 52,907 39% (399) 1,813 1,414 ====== ====== ======= ======== ====== ====== ====== Diluted earnings per share 0.71 0.71 Weighted average diluted shares outstanding 37,107 37,156 BIOTECHNOLOGY (1) (in thousands of $'s) Increase (Decrease) Fiscal 2011 From Fiscal 2010 --------------------------------- --------------------- First Second Percent First Second Qtr. Qtr. YTD Of Sales Qtr. Qtr. YTD ------ ------ ------- --------- ------ ------ ------ Sales 54,141 52,652 106,793 100% 2,445 1,949 4,394 Intersegment sales (7,491) (8,217) (15,708) 177 65 242 ------ ------ ------- ------ ------ ------ 46,650 44,435 91,085 2,622 2,014 4,636 Cost of sales 11,689 11,665 23,354 22% 1,804 1,539 3,343 Intersegment sales (7,578) (8,251) (15,829) 20 (498) (478) ------ ------ ------- -------- ------ ------ ------ 4,111 3,414 7,525 1,824 1,041 2,865 Gross margin 42,539 41,021 83,560 78% 798 973 1,771 Gross margin percentage 78.4% 77.8% 78.1% SG&A expense 4,583 4,780 9,363 9% (151) (276) (427) R&D expense 6,421 6,379 12,800 12% 465 189 654 Amortization expense 170 171 341 -- (70) (69) (139) Interest income (581) (715) (1,296) (1%) 190 57 247 Exchange loss/gain (8) (10) (18) -- (10) (11) (21) ------ ------ ------- -------- ------ ------ ------ 10,585 10,605 21,190 20% 424 (110) 314 ------ ------ ------- -------- ------ ------ ------ Pretax result 31,954 30,416 62,370 58% 374 1,083 1,457 ====== ====== ======= ======== ====== ====== ====== (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 2011 From Fiscal 2010 --------------------------------- --------------------- First Second Percent First Second Qtr. Qtr. YTD Of Sales Qtr. Qtr. YTD ------ ------ ------- --------- ------ ------ ------ Sales 10,571 11,767 22,338 100% (310) 305 (5) Cost of sales 5,561 5,742 11,303 51% 500 454 954 ------ ------ ------- --------- ------ ------ ------ Gross margin 5,010 6,025 11,035 49% (810) (149) (959) Gross margin percentage 47.4% 51.2% 49.4% SG&A expense 1,188 1,274 2,462 11% (3) (44) (47) Interest income (52) (65) (117) (1%) 35 14 49 Exchange loss/(gain) (323) 58 (265) (1%) (234) (3) (237) ------ ------ ------- --------- ------ ------ ------ 813 1,267 2,080 9% (202) (33) (235) ------ ------ ------- --------- ------ ------ ------ Pretax result 4,197 4,758 8,955 40% (608) (116) (724) ====== ====== ======= ========= ====== ====== ====== R&D SYSTEMS EUROPE (in thousands of $'s) Increase (Decrease) Fiscal 2011 From Fiscal 2010 --------------------------------- --------------------- First Second Percent First Second Qtr. Qtr. YTD Of Sales Qtr. Qtr. YTD ------ ------ ------- --------- ------ ------ ------ Sales 16,391 18,645 35,036 100% (1,447) (130)(1,577) Cost of sales 8,621 9,097 17,718 51% 326 433 759 ------ ------ ------- --------- ------ ------ ------ Gross margin 7,770 9,548 17,318 49% (1,773) (563)(2,336) Gross margin percentage 47.4% 51.2% 49.4% SG&A expense 1,842 2,017 3,859 11% (110) (142) (252) Interest income (81) (103) (184) (1%) 62 25 87 Exchange loss/(gain) (497) 97 (400) (1%) (352) (2) (354) ------ ------ ------- --------- ------ ------ ------ 1,264 2,011 3,275 9% (400) (119) (519) ------ ------ ------- --------- ------ ------ ------ Pretax result 6,506 7,537 14,043 40% (1,373) (444)(1,817) ====== ====== ======= ========= ====== ====== ====== HEMATOLOGY (in thousands of $'s) Increase (Decrease) Fiscal 2011 From Fiscal 2010 --------------------------------- --------------------- First Second Percent First Second Qtr. Qtr. YTD Of Sales Qtr. Qtr. YTD ------ ------ ------- --------- ------ ------ ------ Sales 4,904 4,628 9,532 100% 236 303 539 Cost of sales 2,509 2,707 5,216 55% 190 415 605 ------ ------ ------- --------- ------ ------ ------ Gross margin 2,395 1,921 4,316 45% 46 (112) (66) Gross margin percentage 48.8% 41.5% 45.3% SG&A expense 328 336 664 7% (42) (30) (72) R&D expense 198 224 422 4% -- 23 23 Interest income (53) (66) (119) (1%) 19 6 25 ------ ------ ------- --------- ------ ------ ------ 473 494 967 10% (23) (1) (24) ------ ------ ------- --------- ------ ------ ------ Pretax result 1,922 1,427 3,349 35% 69 (111) (42) ====== ====== ======= ========= ====== ====== ====== CORPORATE AND OTHER (2) (in thousands of $'s) Increase (Decrease) Fiscal 2011 From Fiscal 2010 ----------------------- --------------------- First Second First Second Qtr. Qtr. YTD Qtr. Qtr. YTD ------ ------ ------- ------ ------ ------ Interest income 132 136 268 (50) (48) (98) Rental income 123 138 261 42 23 65 ------ ------ ------- ------ ------ ------ 255 274 529 (8) (25) (33) SG&A expense 799 1,232 2,031 (183) (194) (377) Other-Building expenses 556 531 1,087 8 1 9 Other-Equity Investment losses 329 218 547 (9) (278) (287) ------ ------ ------- ------ ------ ------ 1,684 1,981 3,665 (184) (471) (655) ------ ------ ------- ------ ------ ------ Pretax result (1,429) (1,707) (3,136) 176 446 622 ====== ====== ======= ====== ====== ====== (2) Unallocated corporate expenses and Techne's share of losses by Hemerus Medical, LLC and Nephromics, LLC.