-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DwJ/Rsu58d8wWsPNXS/Ww8waBNiorVE5gt+SlcQ07K2UbUn4exfodhJ+ThE588aY j1OAFARWtAeKg7lEbk2YnQ== 0000842023-06-000023.txt : 20060426 0000842023-06-000023.hdr.sgml : 20060426 20060426103738 ACCESSION NUMBER: 0000842023-06-000023 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20060425 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060426 DATE AS OF CHANGE: 20060426 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TECHNE CORP /MN/ CENTRAL INDEX KEY: 0000842023 STANDARD INDUSTRIAL CLASSIFICATION: BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836] IRS NUMBER: 411427402 STATE OF INCORPORATION: MN FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-17272 FILM NUMBER: 06779859 BUSINESS ADDRESS: STREET 1: 614 MCKINLEY PL N E CITY: MINNEAPOLIS STATE: MN ZIP: 55413 BUSINESS PHONE: 6123798854 MAIL ADDRESS: STREET 1: 614 MCKINLEY PLACE NE CITY: MINNEAPOLIS STATE: MN ZIP: 55413 8-K 1 k8.txt 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): April 25, 2006 TECHNE CORPORATION (Exact Name of Registrant as Specified in Charter) Minnesota 0-17272 41-1427402 (State or Other Jurisdiction (Commission I.R.S. Employer of Incorporation) File Number) Identification No.) 614 Mckinley Place NE Minneapolis, MN 55413 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (612) 379-8854 Not Applicable (Former Name or Former Address, if changed since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions: / / Written communications pursuant to Rule 425 under the Securities Act 17 CFR 230.425) / / Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) / / Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) / / Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition A copy of the press release issued by Techne Corporation on April 25, 2006, describing the results of operations for the quarter and nine months ended March 31, 2006 and its financial condition as of March 31, 2006, is attached hereto as Exhibit 99.1. Segment information for Techne Corporation for the quarter and nine months ended March 31, 2006 which has been included on Techne Corporation's website (www.techne-corp.com), is attached hereto as Exhibit 99.2. The information in this Form 8-K and the Exhibits attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such filing. Item 9.01 Financial Statements and Exhibits (d) Exhibits 99.1 Press Release dated April 25, 2006. 99.2 Segment information for the quarter and nine months ended March 31, 2006. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: April 26, 2006 TECHNE CORPORATION By: /s/ Thomas E. Oland --------------------------- Name: Thomas E. Oland Title: President and Chief Executive Officer EXHIBIT INDEX Exhibit No. Description ----------- ----------- 99.1 Press release of Techne Corporation dated April 26, 2006. 99.2 Segment information for Techne Corporation for the quarter and nine months ended March 31, 2006. EX-99.1 2 release406.txt PRESS RELEASE DATED 4/25/06 TECHNE CORPORATION RELEASES UNAUDITED THIRD QUARTER RESULTS FOR FISCAL YEAR 2006 Minneapolis/April 25, 2006/--Techne Corporation's (NASDAQ: TECH) consolidated net earnings increased 10.3% to $20.3 million and its earnings per diluted share increased 15.6% to $.52 for the quarter ended March 31, 2006 compared with $18.4 million and $.45 per diluted share for the quarter ended March 31, 2005. For the nine months ended March 31, 2006, Techne's consolidated net earnings increased 13.2% to $53.9 million and its earnings per diluted share increased 18.3% to $1.36 compared with $47.6 million and $1.15 per diluted share for the nine months ended March 31, 2005. Consolidated net earnings and diluted earnings per share for the periods ended March 31, 2006 were negatively impacted by the decline in exchange rates used to convert R&D Europe results from British pound sterling to U.S. dollars and stock option related compensation expense from the adoption of Financial Accounting Standards Board (FASB) Statement of Accounting Standards No. 123 (Revised 2004), Share-Based Payments (SFAS No. 123R). The acquisitions of Fortron Bio Science, Inc. and BiosPacific, Inc. on July 1, 2005 and an accelerated stock buyback transaction ("ASB") on March 1, 2005 had positive impacts on current year reported amounts. The impact of these items on comparable net earnings and diluted earnings per share is summarized as follows: Periods Ended March 31, 2006 --------------------------------------------------- Third Quarter Fiscal Year to Date ------------------------- ------------------------- Net % of Net Diluted Net % of Net Diluted Earnings Sales EPS Earnings Sales EPS -------- -------- ------- -------- -------- ------- ($000's) ($000's) Net earnings as Reported $20,347 37.1% $0.52 $53,862 35.8% $1.36 Stock option expense(1) 111 0.2% -- 1,060 0.7% 0.03 Foreign exchange (1) 323 0.6% 0.01 676 0.4% 0.02 Earnings from acquisitions (1) (103) (0.2%) -- (386) (0.2%) (0.01) ASB (0.03) (0.08) -------- -------- ------- -------- -------- ------- $20,678 37.7% $0.49 $55,212 36.7% $1.32 Periods ended 3/31/05 $18,439 38.5% $0.45 $47,565 36.3% $1.15 Change 12.1% 11.1% 16.1% 14.8% (1) Net of income taxes Consolidated net sales for the three and nine months ended March 31, 2006 were $54.8 million and $150.6 million, respectively. This was an increase of 14.3% and 14.8% from the three and nine months ended March 31, 2005, respectively. R&D Systems' Biotechnology Division net sales for the three and nine months ended March 31, 2006 were $34.0 million and $92.7 million, increases of 10.8% and 13.8%, respectively, as compared to prior-year periods. Approximately $600,000 of the increase in Biotechnology Division net sales for the quarter ended March 31, 2006 was the result of price increases. R&D Europe's net sales for the three and nine months ended March 31, 2006 were $14.5 million and $39.5 million, increases of 7.1% and 5.5%, respectively, as compared to prior-year periods. In British pound sterling, R&D Europe's net sales increased 15.8% and 12.3% for the three and nine months ended March 31, 2006, respectively, as compared to prior-year periods. R&D Systems' Hematology Division net sales for the three months ended March 31, 2006 were $3.7 million, an increase of 1.3% as compared to the quarter ended March 31, 2005. Hematology sales for the nine months were $11.0 million, a decrease of 9.6% from the same period in fiscal 2005, mainly as a result of a large OEM customer changing to a new primary vendor in January 2005. Included in net sales for the three and nine months ended March 31, 2006 was $2.6 million and $7.3 million, respectively, of net sales from Fortron Bio Science, Inc. and BiosPacific, Inc., which were acquired effective July 1, 2005. Periods Ended March 31, 2006 --------------------------------------------------- ($000's) Third Quarter Fiscal Year to Date ------------------------- ------------------------- 2006 2005 Change 2006 2005 Change -------- -------- ------- -------- -------- ------- Net sales as reported $54,813 $47,935 14.3% $150,551 $131,101 14.8% Foreign exchange 1,170 2.4% 2,525 1.9% Acquisitions (2,559) (5.3%) (7,339) (5.6%) -------- -------- ------- -------- -------- ------- $53,424 $47,935 11.4% $145,737 $131,101 11.1% Consolidated gross margins were 77.9% for the third quarter of fiscal 2006 as compared to 77.7% for the second quarter of fiscal 2006. For the nine months ended March 31, 2006, consolidated gross margins were 77.5%. Excluding Fortron and BiosPacific, gross margins for the quarter ended March 31, 2006 were 80.3% compared to 80.9% in the third quarter of fiscal 2005, and 79.8% for the nine-month period ended March 31, 2006 compared to 79.4% for the nine months ended March 31, 2005. Combined gross margins for Fortron and BiosPacific operations of 29.7% and 33.2% for the quarter and nine months ended March 31, 2006, respectively, were negatively affected by expensing of inventory on hand at the acquisition date that was recorded at fair value as determined by purchase accounting. Selling, general and administrative expenses as a percent of net sales increased to 14.2% for the nine months ended March 31, 2006 primarily due to $1.5 million of stock option expense from the adoption of SFAS No. 123R in fiscal 2006. Excluding the impact of adopting SFAS No. 123R, selling, general and administrative expense as a percent of net sales decreased to 12.3% from 13.3% for the three months ended March 31, 2006 and 2005, respectively, and to 13.2% from 14.0% in the nine month periods ended March 31, 2006 and 2005, respectively. As a result of adopting SFAS No. 123R, estimated total compensation expense of approximately $1.6 million or $.03 per diluted share is anticipated for fiscal 2006 of which approximately $100,000 remains to be expensed in the last three months of the fiscal year. The dollar increases in selling, general and administrative expenses were also impacted by the acquisitions of Fortron and BiosPacific. Periods Ended March 31, 2006 --------------------------------------------------- ($000's) Third Quarter Fiscal Year to Date ------------------------- ------------------------- 2006 2005 Change 2006 2005 Change -------- -------- ------- -------- -------- ------- S,G&A as reported $6,901 $6,379 8.2% $21,335 $18,303 16.6% Stock option expense (140) (2.2%) (1,516) (8.3%) Acquisitions (302) (4.7%) (976) (5.3%) -------- -------- ------- -------- -------- ------- $6,459 $6,379 1.3% $18,843 $18,303 3.0% The Company allocated approximately $12.8 million to goodwill and $7.1 million to other intangible assets arising from the acquisition of Fortron and BiosPacific. The intangible assets, mainly technologies, trade names and customer and supplier relationships, are being amortized over lives of one to eight years and amortization expense of $272,000 and $815,000 was recorded for the quarter and nine months ended March 31, 2006, respectively, related to these assets. In April 2006, the Company made an additional $9 million investment in ChemoCentryx, Inc. (CCX) in the form of a convertible note subject to the limitation that the Company's holdings in CCX will not exceed 19.9% of CCX voting shares. Forward Looking Statements: This earnings release contains forward-looking statements within the meaning of the Private Litigation Reform Act. These statements, including our expectations as to the estimated compensation expense resulting from stock option expensing, involve risks and uncertainties that may affect the actual results of operations. The following important factors, among others, have affected and, in the future, could affect the Company's actual results: the integration of the recent acquisitions, the introduction and acceptance of new biotechnology and hematology products, the levels and particular directions of research by the Company's customers, the impact of the growing number of producers of biotechnology research products and related price competition, the retention of hematology OEM and proficiency survey business, the impact of currency exchange rate fluctuations, and the costs and results of research and product development efforts of the Company and of companies in which the Company has invested or with which it has formed strategic relationships. For additional information concerning such factors, see the Company's annual report on Form 10-K and quarterly reports on Form 10-Q as filed with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements we make in this release due to new information or future events. Investors are cautioned not to place undue emphasis on these statements. Use of Non-GAAP Financial Measures: The non-GAAP financial measures used in this press release quantify the impact of adopting Financial Accounting Standards Board (FASB) Statement of Accounting Standards No. 123 (Revised 2004), Share-Based Payments (SFAS No. 123R) related to the expensing of stock option compensation, the decline in exchange rates used to convert R&D Europe results from British pounds to U.S. dollars, the acquisitions of Fortron Bio Science, Inc. and BiosPacific, Inc on July 1, 2005 and an accelerated stock buyback transaction ("ASB") on March 1, 2005 on reported net sales, selling, general and administrative expenses, net earnings and earnings per share for the three and nine months ended March 31, 2006 as compared to the reported amounts for the same periods ended March 31, 2005. These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non- GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. We view these non- GAAP financial measures to be helpful in assessing the Company's ongoing operating results. In addition, these non-GAAP financial measures facilitate our internal comparisons to historical operating results and comparisons to competitors' operating results. We include these non-GAAP financial measures in our earnings announcement because we believe they are useful to investors in allowing for greater transparency related to supplemental information we use in our financial and operational analysis. Investors are encouraged to review the reconciliations of the non-GAAP financial measures used in this press release to their most directly comparable GAAP financial measures as provided with the financial statements attached to this press release. * * * * * * * * * * * * * * Techne Corporation has two operating subsidiaries: Research and Diagnostic Systems, Inc. (R&D Systems) of Minneapolis, Minnesota and R&D Systems Europe, Ltd. (R&D Europe) of Abingdon, England. R&D Systems is a specialty manufacturer of biological products. R&D Systems has two subsidiaries, Fortron Bio Science, Inc. (Fortron), located in Minneapolis, and BiosPacific, Inc. (BiosPacific), located in Emeryville, California. Fortron develops and manufactures antibodies and BiosPacific is a worldwide supplier of biologics to manufacturers of in vitro diagnostic systems and immunodiagnostic kits. R&D Europe is a distributor of biotechnology products. Contact: Greg Melsen, Chief Financial Officer Kathy Backes, Controller (612) 379-8854 TECHNE CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (In thousands, except per share data) (Unaudited) QUARTER ENDED NINE MONTHS ENDED ----------------- ------------------- 3/31/06 3/31/05 3/31/06 3/31/05 -------- -------- -------- -------- Net sales $ 54,813 $47,935 $150,551 $131,101 Cost of sales 12,105 9,138 33,896 26,966 -------- -------- -------- -------- Gross margin 42,708 38,797 116,655 104,135 Operating expenses: Selling, general and administrative 6,901 6,379 21,335 18,303 Research and development 4,761 4,631 14,052 13,938 Amortization of intangible assets 492 305 1,476 916 -------- -------- -------- -------- Total operating expenses 12,154 11,315 36,863 33,157 -------- -------- -------- -------- Operating income 30,554 27,482 79,792 70,978 Other expense (income): Interest expense 245 193 706 616 Interest income (1,082) (938) (3,186) (3,180) Other non-operating expense (income), net 229 323 721 1,205 -------- -------- -------- -------- Total other expense (income) (608) (422) (1,759) (1,359) -------- -------- -------- -------- Earnings before income taxes 31,162 27,904 81,551 72,337 Income taxes 10,815 9,465 27,689 24,772 -------- -------- -------- -------- Net earnings $ 20,347 $ 18,439 $ 53,862 $ 47,565 ======== ======== ======== ======== Earnings per share: Basic $ 0.52 $ 0.46 $ 1.38 $ 1.16 Diluted $ 0.52 $ 0.45 $ 1.36 $ 1.15 Weighted average common shares outstanding: Basic 39,199 40,423 38,941 40,961 Diluted 39,425 40,896 39,631 41,423 TECHNE CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) 3/31/06 6/30/05 -------- -------- ASSETS Cash and equivalents $ 83,596 $ 80,344 Short-term available-for-sale investments 16,166 16,790 Trade accounts receivable 26,024 22,041 Other receivables 911 1,681 Inventory 9,605 7,758 Other current assets 6,798 6,367 -------- -------- Current assets 143,100 134,981 Available-for-sale investments 64,540 41,871 Property and equipment, net 88,203 89,036 Goodwill and intangible assets, net 32,521 14,138 Other non-current assets 13,758 15,237 -------- -------- Total assets $342,122 $295,263 ======== ======== LIABILITIES Current liabilities $ 13,262 $ 14,016 Long-term debt 12,490 13,378 Stockholders' equity 316,370 267,869 -------- -------- Total liabilities and equity $342,122 $295,263 ======== ======== EX-99.2 3 segment306.txt SEGMENT RESULTS SEGMENT INFORMATION TECHNE CORPORATION AND SUBISIDARIES (in thousands of $'s, except per share data)
Increase (Decrease) Fiscal 2006 From Fiscal 2005 ---------------------------------------- ------------------------------- First Second Third Percent First Second Third Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter YTD ------- ------- ------- ------- -------- ------- ------- ------- ------- Sales 47,709 48,029 54,813 150,551 100% 6,790 5,782 6,878 19,450 Cost of sales 11,096 10,695 12,105 33,896 23% 2,209 1,754 2,967 6,930 ------- ------- ------- ------- -------- ------- ------- ------- ------- Gross margin 36,613 37,334 42,708 116,655 77% 4,581 4,028 3,911 12,520 Gross margin percentage 76.7% 77.7% 77.9% 77.5% SG&A expense 6,454 7,980 6,901 21,335 14% 820 1,690 522 3,032 R&D expense 4,717 4,574 4,761 14,052 9% 29 (45) 130 114 Amortization expense 492 492 492 1,476 1% 187 186 187 560 Interest expense 223 238 245 706 0.5% (22) 60 52 90 Interest income (974) (1,130) (1,082) (3,186) (2%) 79 59 (144) (6) Other non-operating ex., net 211 281 229 721 0.5% (255) (135) (94) (484) ------- ------- ------- ------- -------- ------- ------- ------- ------- 11,123 12,435 11,546 35,104 23% 838 1,815 653 3,306 ------- ------- ------- ------- -------- ------- ------- ------- ------- Earnings before income taxes 25,490 24,899 31,162 81,551 54% 3,743 2,213 3,258 9,214 Income taxes 8,489 8,385 10,815 27,689 18% 934 633 1,350 2,917 ------- ------- ------- ------- -------- ------- ------- ------- ------- 17,001 16,514 20,347 53,862 36% 2,809 1,580 1,908 6,297 ======= ======= ======= ======= ======== ======= ======= ======= ======= Diluted earnings per share 0.43 0.42 0.52 1.36 Weighted average diluted shares outstanding 39,669 39,761 39,425 39,631
BIOTECHNOLOGY (1) (in thousands of $'s)
Increase (Decrease) Fiscal 2006 From Fiscal 2005 ---------------------------------------- ------------------------------- First Second Third Percent First Second Third Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter YTD ------- ------- ------- ------- -------- ------- ------- ------- ------- Sales 37,599 37,697 43,013 118,309 100% 6,908 7,625 6,675 21,208 Intersegment sales (5,299) (6,555) (6,396)(18,250) (495) (1,351) (798) (2,644) ------- ------- ------- ------- ------- ------- ------- ------- 32,300 31,142 36,617 100,059 6,413 6,274 5,877 18,564 Cost of sales 8,470 8,147 9,125 25,742 22% 2,359 2,077 2,757 7,193 Intersegment sales (5,323) (6,140) (6,478)(17,941) (567) (930) (999) (2,496) ------- ------- ------- ------- -------- ------- ------- ------- ------- 3,147 2,007 2,647 7,801 1,792 1,147 1,758 4,697 Gross margin 29,153 29,135 33,970 92,258 78% 4,621 5,127 4,119 13,867 Gross margin percentage 77.5% 78.4% 78.8% 78.2% SG&A expense 3,639 4,194 4,199 12,032 10% 666 779 487 1,932 R&D expense 4,532 4,404 4,593 13,529 11% 32 (26) 161 167 Amortization expense 492 492 492 1,476 1% 187 186 187 560 Interest, net (268) (373) (285) (926) -- 146 191 35 372 ------- ------- ------- ------- -------- ------- ------- ------- ------- 8,395 8,717 8,999 26,111 22% 1,031 1,130 870 3,031 ------- ------- ------- ------- -------- ------- ------- ------- ------- Pretax result 20,758 20,418 24,971 66,147 56% 3,590 3,997 3,249 10,836 ======= ======= ======= ======= ======== ======= ======= ======= =======
(1) Fiscal 2006 includes R&D Systems' Biotechnology Division, Fortron Bio Science, Inc., and BiosPacific, Inc. R&D SYSTEMS EUROPE (in thousands of British pounds)
Increase (Decrease) Fiscal 2006 From Fiscal 2005 ---------------------------------------- ------------------------------- First Second Third Percent First Second Third Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter YTD ------- ------- ------- ------- -------- ------- ------- ------- ------- Sales 6,690 7,529 8,256 22,475 100% 610 721 1,125 2,456 Cost of sales 3,292 3,765 4,191 11,248 50% 361 632 966 1,959 ------- ------- ------- ------- -------- ------- ------- ------- ------- Gross margin 3,398 3,764 4,065 11,227 50% 249 89 159 497 Gross margin percentage 50.8% 50.0% 49.2% 50.0% SG&A expense 1,004 1,185 1,070 3,259 14% 54 24 48 126 Interest income (326) (329) (342) (997) (4%) (72) (66) (62) (200) Exchange loss/(gain) 15 26 (49) (8) -- (11) 70 (65) (6) ------- ------- ------- ------- -------- ------- ------- ------- ------- 693 882 679 2,254 10% (29) 28 (79) (80) ------- ------- ------- ------- -------- ------- ------- ------- ------- Pretax result 2,705 2,882 3,386 8,973 40% 278 61 238 577 ======= ======= ======= ======= ======== ======= ======= ======= =======
R&D SYSTEMS EUROPE (in thousands of $'s)
Increase (Decrease) Fiscal 2006 From Fiscal 2005 ---------------------------------------- ------------------------------- First Second Third Percent First Second Third Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter YTD ------- ------- ------- ------- -------- ------- ------- ------- ------- Sales 11,875 13,106 14,496 39,477 100% 856 242 953 2,051 Cost of sales 5,844 6,554 7,358 19,756 50% 532 636 1,232 2,400 ------- ------- ------- ------- -------- ------- ------- ------- ------- Gross margin 6,031 6,552 7,138 19,721 50% 324 (394) (279) (349) Gross margin percentage 50.8% 50.0% 49.2% 50.0% SG&A expense 1,782 2,059 1,879 5,720 14% 60 (135) (60) (135) Interest income (579) (572) (600) (1,751) (4%) (119) (75) (69) (263) Exchange loss (gain) 28 46 (87) (13) -- (19) 128 (116) (7) ------- ------- ------- ------- -------- ------- ------- ------- ------- 1,231 1,533 1,192 3,956 10% (78) (82) (245) (405) ------- ------- ------- ------- -------- ------- ------- ------- ------- Pretax result 4,800 5,019 5,946 15,765 40% 402 (312) (34) 56 ======= ======= ======= ======= ======== ======= ======= ======= =======
HEMATOLOGY (in thousands of $'s)
Increase (Decrease) Fiscal 2006 From Fiscal 2005 ---------------------------------------- ------------------------------- First Second Third Percent First Second Third Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter YTD ------- ------- ------- ------- -------- ------- ------- ------- ------- Sales 3,534 3,781 3,700 11,015 100% (479) (734) 48 (1,165) Cost of sales 2,105 2,134 2,100 6,339 58% (115) (29) (23) (167) ------- ------- ------- ------- -------- ------- ------- ------- ------- Gross margin 1,429 1,647 1,600 4,676 42% (364) (705) 71 (998) Gross margin percentage 40.4% 43.6% 43.2% 42.5% SG&A expense 384 424 441 1,249 11% (25) (12) (64) (101) R&D expense 185 170 168 523 5% (3) (19) (31) (53) Interest, net (37) (50) (40) (127) (2%) 19 27 4 50 ------- ------- ------- ------- -------- ------- ------- ------- ------- 532 544 569 1,645 14% (9) (4) (91) (104) ------- ------- ------- ------- -------- ------- ------- ------- ------- Pretax result 897 1,103 1,031 3,031 28% (355) (701) 162 (894) ======= ======= ======= ======= ======== ======= ======= ======= =======
CORPORATE AND OTHER (2) (in thousands of $'s)
Increase (Decrease) Fiscal 2006 From Fiscal 2005 ------------------------------- ------------------------------- First Second Third First Second Third Quarter Quarter Quarter YTD Quarter Quarter Quarter YTD ------- ------- ------- ------- ------- ------- ------- ------- Interest income 90 135 157 382 48 84 114 246 Rental income 342 337 287 966 323 284 (31) 576 ------- ------- ------- ------- ------- ------- ------- ------- 432 472 444 1,348 371 368 83 822 SG&A expense 649 1,303 382 2,334 119 1,058 159 1,336 Interest expense 223 238 245 706 59 60 52 171 Other-Hemerus losses 82 82 83 247 8 9 (2) 15 Other-Building expenses 443 490 520 1,453 79 12 (7) 84 ------- ------- ------- ------- ------- ------- ------- ------- 1,397 2,113 1,230 4,740 265 1,139 202 1,606 ------- ------- ------- ------- ------- ------- ------- ------- Pretax result (965) (1,641) (786) (3,392) 106 (771) (119) (784) ======= ======= ======= ======= ======= ======= ======= =======
(2) Unallocated corporate expenses and Techne's share of losses by Hemerus Medical, LLC. -----END PRIVACY-ENHANCED MESSAGE-----