SEGMENT INFORMATION TECHNE CORPORATION AND SUBISIDARIES (in thousands of $'s, except per share data) Increase (Decrease) Fiscal 2012 From Fiscal 2011 ---------------------------------- ------------------------- First Second Third % of First Second Third Qtr Qtr Qtr YTD Sales Qtr Qtr Qtr YTD ------ ------ ------ ------- ----- ----- ------ ----- ------ Sales 77,596 74,662 83,621 235,879 100% 9,651 6,954 7,350 23,955 Cost of sales 19,209 19,492 20,238 58,939 25% 3,859 4,165 4,297 12,321 ------ ------ ------ ------- ----- ----- ------ ----- ------ Gross margin 58,387 55,170 63,383 176,940 75% 5,792 2,789 3,053 11,634 Gross margin percentage 75.2% 73.9% 75.8% 75.0% SG&A expense 10,773 10,651 9,899 31,323 13% 3,160 2,224 604 5,988 R&D expense 6,667 6,837 7,122 20,626 9% 48 234 825 1,107 Interest income (728) (798) (470) (1,996) (1%) 119 222 597 938 Impairment loss 0 0 3,254 3,254 1% 0 0 3,254 3,254 Other non- operating ex., net 1,175 607 373 2,155 1% 918 (91) (48) 779 ------ ------ ------ ------- ----- ----- ------ ----- ------ 17,887 17,297 20,178 55,362 23% 4,245 2,589 5,232 12,066 ------ ------ ------ ------- ----- ----- ------ ----- ------ Earnings before income taxes 40,500 37,873 43,205 121,578 52% 1,547 200(2,179) (432) Income taxes 12,979 12,060 11,449 36,488 16% 399 921(2,871)(1,551) ------ ------ ------ ------- ----- ----- ------ ----- ------ 27,521 25,813 31,756 85,090 36% 1,148 (721) 692 1,119 ====== ====== ====== ======= ===== ===== ====== ===== ====== Diluted earnings per share 0.74 0.70 0.86 2.30 Weighted average diluted shares outstanding 37,170 37,028 36,930 37,043 BIOTECHNOLOGY (1) (in thousands of $'s) Increase (Decrease) Fiscal 2012 From Fiscal 2011 ---------------------------------- ------------------------- First Second Third % of First Second Third Qtr Qtr Qtr YTD Sales Qtr Qtr Qtr YTD ------ ------ ------ ------- ----- ----- ------ ----- ------ Sales 72,303 69,808 78,180 220,291 100% 9,262 6,728 7,060 23,050 Cost of sales 16,465 16,887 17,444 50,796 23% 3,624 4,267 4,145 12,036 ------ ------ ------ ------- ----- ----- ------ ----- ------ Gross margin 55,838 52,921 60,736 169,495 77% 5,638 2,461 2,915 11,014 Gross margin percentage 77.2% 75.8% 77.7% 76.9% SG&A expense 9,470 9,003 8,921 27,394 12% 2,984 2,144 995 6,123 R&D expense 6,469 6,624 6,924 20,017 9% 48 245 820 1,113 Interest income (609) (689) (387) (1,685) (1%) 53 129 484 666 Exchange loss/ gain 524 105 (164) 465 0% 1,029 18 85 1,132 ------ ------ ------ ------- ----- ----- ------ ----- ------ 15,854 15,043 15,294 46,191 21% 4,114 2,536 2,384 9,034 ------ ------ ------ ------- ----- ----- ------ ----- ------ Pretax result 39,984 37,878 45,442 123,304 56% 1,524 (75) 531 1,980 ====== ====== ====== ======= ===== ===== ====== ===== ====== (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 Third % of First Second Third Qtr Qtr Qtr YTD Sales Qtr Qtr Qtr YTD ------ ------ ------ ------- ----- ----- ------ ----- ------ Sales 5,293 4,854 5,441 15,588 100% 389 226 290 905 Cost of sales 2,744 2,605 2,794 8,143 52% 235 (102) 152 285 ------ ------ ------ ------- ----- ----- ------ ----- ------ Gross margin 2,549 2,249 2,647 7,445 48% 154 328 138 620 Gross margin percentage 48.2% 46.3% 48.7% 47.8% SG&A expense 480 400 435 1,315 9% 152 64 (3) 213 R&D expense 198 213 198 609 4% -- (11) 5 (6) Interest income (47) (45) (23) (115) (1%) 6 21 46 73 ------ ------ ------ ------- ----- ----- ------ ----- ------ 631 568 610 1,809 12% 158 74 48 280 ------ ------ ------ ------- ----- ----- ------ ----- ------ Pretax result 1,918 1,681 2,037 5,636 36% (4) 254 90 340 ====== ====== ====== ======= ===== ===== ====== ===== ====== CORPORATE AND OTHER (2) (in thousands of $'s) Increase (Decrease) Fiscal 2012 From Fiscal 2011 ---------------------------- --------------------------- First Second Third First Second Third Qtr Qtr Qtr YTD Qtr Qtr Qtr YTD ------ ------ ------ ------- ----- ------ ----- ------ Interest income 72 64 60 196 (60) (72) (67) (199) Rental income 134 198 150 482 11 60 36 107 ------ ------ ------ ------- ----- ------ ----- ------ 206 262 210 678 (49) (12) (31) (92) SG&A expense 823 1,248 543 2,614 24 16 (388) (348) Other-Building expenses 587 482 545 1,614 31 (49) (41) (59) Other-Impairment losses 0 0 3,254 3,254 0 0 3,254 3,254 Other-Equity Investment losses 198 218 142 558 (131) 0 (56) (187) ------ ------ ------ ------- ----- ------ ----- ------ 1,608 1,948 4,484 8,040 (76) (33) 2,769 2,660 ------ ------ ------ ------- ----- ------ ----- ------ Pretax result (1,402)(1,686)(4,274) (7,362) 27 21 (2,800) (2,752) ====== ====== ====== ======= ===== ====== ===== ====== (2) Unallocated corporate expenses and Techne's share of losses related to investment in unconsolidated entities.