SEGMENT INFORMATION TECHNE CORPORATION AND SUBISIDARIES (in thousands of $'s, except per share data) Increase (Decrease) Fiscal 2012 From Fiscal 2011 ------------------------------- ---------------------- First Second YTD Percent First Second YTD ------ ------ ------- ------- ------ ------ ------ Sales 77,596 74,662 152,258 100% 9,651 6,954 16,605 Cost of sales 19,209 19,492 38,701 25% 3,859 4,165 8,024 ------ ------ ------- ------- ------ ------ ------ Gross margin 58,387 55,170 113,557 75% 5,792 2,789 8,581 Gross margin percentage 75.2% 73.9% 74.6% SG&A expense 10,773 10,651 21,424 14% 3,160 2,224 5,384 R&D expense 6,667 6,837 13,504 9% 48 234 282 Interest income (728) (798) (1,526) (1%) 119 222 341 Other non-operating ex., net 1,175 607 1,782 1% 918 (91) 827 ------ ------ ------- ------- ------ ------ ------ 17,887 17,297 35,184 23% 4,245 2,589 6,834 ------ ------ ------- ------- ------ ------ ------ Earnings before income taxes 40,500 37,873 78,373 52% 1,547 200 1,747 Income taxes 12,979 12,060 25,039 17% 399 921 1,320 ------ ------ ------- ------- ------ ------ ------ 27,521 25,813 53,334 35% 1,148 (721) 427 ====== ====== ======= ======= ====== ====== ====== Diluted earnings per share 0.74 0.70 1.44 Weighted average diluted shares outstanding 37,170 37,028 37,099 BIOTECHNOLOGY (1) (in thousands of $'s) Increase (Decrease) Fiscal 2012 From Fiscal 2011 ------------------------------- ---------------------- First Second YTD Percent First Second YTD ------ ------ ------- ------- ------ ------ ------ Sales 72,303 69,808 142,111 100% 9,262 6,728 15,990 Cost of sales 16,465 16,887 33,352 23% 3,624 4,267 7,891 ------ ------ ------- ------- ------ ------ ------ Gross margin 55,838 52,921 108,759 77% 5,638 2,461 8,099 Gross margin percentage 77.2% 75.8% 76.5% SG&A expense 9,470 9,003 18,473 13% 2,984 2,144 5,128 R&D expense 6,469 6,624 13,093 9% 48 245 293 Interest income (609) (689) (1,298) (1%) 53 129 182 Exchange loss/gain 524 105 629 1% 1,029 18 1,047 ------ ------ ------- ------- ------ ------ ------ 15,854 15,043 30,897 22% 4,114 2,536 6,650 ------ ------ ------- ------- ------ ------ ------ Pretax result 39,984 37,878 77,862 55% 1,524 (75) 1,449 ====== ====== ======= ======= ====== ====== ====== (1) Includes R&D Systems' Biotechnology Division, R&D Systems Europe, BiosPacific, R&D China, Boston Biochem and Tocris. HEMATOLOGY (in thousands of $'s) Increase (Decrease) Fiscal 2012 From Fiscal 2011 ------------------------------- ---------------------- First Second YTD Percent First Second YTD ------ ------ ------- ------- ------ ------ ------ Sales 5,293 4,854 10,147 100% 389 226 615 Cost of sales 2,744 2,605 5,349 53% 235 (102) 133 ------ ------ ------- ------- ------ ------ ------ Gross margin 2,549 2,249 4,798 47% 154 328 482 Gross margin percentage 48.2% 46.3% 47.3% SG&A expense 480 400 880 9% 152 64 216 R&D expense 198 213 411 4% -- (11) (11) Interest income (47) (45) (92) (1%) 6 21 27 ------ ------ ------- ------- ------ ------ ------ 631 568 1,199 12% 158 74 232 ------ ------ ------- ------- ------ ------ ------ Pretax result 1,918 1,681 3,599 35% (4) 254 250 ====== ====== ======= ======= ====== ====== ====== CORPORATE AND OTHER (2) (in thousands of $'s) Increase (Decrease) Fiscal 2012 From Fiscal 2011 ----------------------- ---------------------- First Second YTD First Second YTD ------ ------ ------- ------ ------ ------ Interest income 72 64 136 (60) (72) (132) Rental income 134 198 332 11 60 71 ------ ------ ------- ------ ------ ------ 206 262 468 (49) (12) (61) SG&A expense 823 1,248 2,071 24 16 40 Other-Building expenses 587 482 1,069 31 (49) (18) Other-Equity Investment losses 198 218 416 (131) 0 (131) ------ ------ ------- ------ ------ ------ 1,608 1,948 3,556 (76) (33) (109) ------ ------ ------- ------ ------ ------ Pretax result (1,402) (1,686) (3,088) 27 21 48 ====== ====== ======= ====== ====== ====== (2) Unallocated corporate expenses and Techne's share of losses by Hemerus Medical, LLC and Nephromics, LLC.