-----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, VcApod25Pc7hrIo0utvVCrQJPPjt1h+rVGTiaJPL9oRreFyuKtS2i85T9dX5BkVz hf801adE6Bi4a4FfZqDOhw== 0000842023-06-000035.txt : 20060808 0000842023-06-000035.hdr.sgml : 20060808 20060808143810 ACCESSION NUMBER: 0000842023-06-000035 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20060808 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060808 DATE AS OF CHANGE: 20060808 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: 061012459 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): August 8, 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 August 8, 2006, describing the results of operations for the quarter and fiscal year ended June 30, 2006 and its financial condition as of June 30, 2006, is attached hereto as Exhibit 99.1. Segment information for Techne Corporation for the quarter and fiscal year ended June 30, 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 August 8, 2006. 99.2 Segment information for the quarter and fiscal year ended June 30, 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: August 8, 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 August 8, 2006. 99.2 Segment information for Techne Corporation for the quarter and fiscal year ended June 30, 2006. EX-99.1 2 press806.txt PRESS RELEASE DATED 8/8/06 TECHNE CORPORATION RELEASES UNAUDITED FOURTH QUARTER RESULTS FOR FISCAL YEAR 2006 Minneapolis/August 8, 2006/--Techne Corporation's (NASDAQ: TECH) consolidated net earnings increased 10.9% to $73.4 million and its earnings per diluted share increased 14.2% to $1.85 compared with $66.1 million and $1.62 per diluted share for the fiscal year ended June 30, 2005. For the quarter ended June 30, 2006, Techne's consolidated net earnings increased 5.0% to $19.5 million and its earnings per diluted share increased 4.3% to $.49 for the quarter ended June 30, 2006 compared with $18.6 million and $.47 per diluted share for the quarter ended June 30, 2005. Consolidated net earnings and diluted earnings per share for the periods ended June 30, 2006 were impacted by 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). Consolidated net earnings and diluted earnings per share for the fiscal year ended June 30, 2006 were also impacted by the decline in exchange rates used to convert R&D Europe results from British pound sterling 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 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 June 30, 2006 ---------------------------------------------------- Fourth Quarter Fiscal Year ------------------------- ------------------------- Net % of Net Duluted Net % of Net Diluted Earnings Sales EPS Earnings Sales EPS -------- -------- ------- -------- -------- ------- ($000's) ($000's) Net earnings as reported $19,489 37.4% $0.49 $73,351 36.2% $1.85 Plus stock option expense (1) 85 0.2% -- 1,145 0.6% 0.03 (Less) plus foreign exchange (1) (17) -- -- 659 0.3% 0.02 (Less) earnings from acquisitions) (1) (129) (0.2%) -- (515) (0.3%) (0.01) ASB -- (0.08) -------- -------- ------- -------- -------- ------- $19,428 37.4% $0.49 $74,640 36.8% $1.81 Periods ended 6/30/05 $18,567 39.0% $0.47 $66,132 37.0% $1.62 Change 4.6% 4.3% 12.9% 11.7% (1) Net of income taxes Consolidated net sales for the three months and fiscal year ended June 30, 2006 were $52.1 million and $202.6 million, respectively. This was an increase of 9.5% and 13.4% from the three months and fiscal year ended June 30, 2005, respectively. R&D Systems' Biotechnology Division net sales for the three months and fiscal year ended June 30, 2006 were $32.3 million and $125.0 million, increases of 9.1% and 12.5%, respectively, as compared to prior-year periods. Approximately $670,000 and $1.3 million of the increase in Biotechnology Division net sales for the quarter and fiscal year ended June 30, 2006 was the result of price increases. R&D Europe's net sales for the three months ended June 30, 2006 were $13.5 million, a decrease of 3.0% from the prior year, while net sales for the fiscal year ended June 30, 2006 were $53.0 million, an increase of 3.2% as compared to the prior year. In British pound sterling, R&D Europe's net sales decreased 3.9% in the fourth quarter from the fourth quarter of the prior year, but increased 7.8% for the fiscal year ended June 30, 2006. Compared to the prior year, R&D Systems Europe had two fewer shipping days in the quarter ended June 30, 2006 due to the timing of the European Easter holiday. In addition, sales in Germany declined 12.6% in the quarter ended June 30, 2006 as compared to the same quarter last year, primarily due to a work stoppage by researchers which has since been settled. R&D Systems' Hematology Division net sales for the three months ended June 30, 2006 were $4.2 million, an increase of 5.5% as compared to the quarter ended June 30, 2005. Hematology sales for the fiscal year were $15.2 million, a decrease of 5.8% from the prior fiscal year, mainly as a result of a large OEM customer changing to a new primary vendor in January 2005. Included in consolidated net sales for the three months and fiscal year ended June 30, 2006 was $2.0 million and $9.4 million, respectively, of net sales from Fortron Bio Science, Inc. and BiosPacific, Inc., which were acquired effective July 1, 2005. Periods Ended June 30 ---------------------------------------------------- ($000's) Fourth Quarter Fiscal Year ------------------------- -------------------------- 2006 2005 Change 2006 2005 Change -------- -------- ------- --------- -------- ------- Net sales as reported $52,066 $47,551 9.5% $202,617 $178,652 13.4% Less foreign exchange (86) (0.2%) 2,440 1.3% Less acquisitions (2,019) (4.2%) (9,351) (5.2%) -------- -------- ------- --------- -------- ------- $49,961 $47,551 5.1% $195,706 $178,652 9.5% Consolidated gross margins were 77.3% and 77.4% for the quarter and fiscal year ended June 30, 2006, respectively. Excluding Fortron and BiosPacific, gross margins for the quarter ended June 30, 2006 were 78.9% compared to 79.3% in the fourth quarter of fiscal 2005, and 79.5% for the fiscal year ended June 30, 2006 compared to 79.4% for the fiscal year ended June 30, 2005. Combined gross margins for Fortron and BiosPacific operations of 38.7% and 34.4% for the quarter and fiscal year ended June 30, 2006, respectively, were affected by inventory on hand at the acquisition date that was recorded at fair value as determined by purchase accounting. Selling, general and administrative expenses increased $3.1 million for the fiscal year ended June 30, 2006 primarily due to $1.6 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 12.8% from 13.7% for the fiscal years ended June 30, 2006 and 2005, respectively. The dollar increases in selling, general and administrative expenses were also impacted by the acquisitions of Fortron and BiosPacific. Periods Ended June 30 ---------------------------------------------------- ($000's) Fourth Quarter Fiscal Year ------------------------- -------------------------- 2006 2005 Change 2006 2005 Change -------- -------- ------- --------- -------- ------- S,G&A as reported $6,269 $6,173 1.5% $27,604 $24,476 12.8% Less stock option expense (112) (1.8%) (1,628) (6.7%) Less acquisitions (279) (4.5%) (1,255) (5.1%) -------- -------- ------- --------- -------- ------- $5,878 $6,173 (4.8%) $24,721 $24,476 1.0% 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 $271,000 and $1,086,000 was recorded for the quarter and fiscal year ended June 30, 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. In June 2006, approximately $4.3 million of the note was converted into shares of CCX preferred stock. The Company currently holds a 19.9% interest in CCX. Forward Looking Statements: This earnings release contains forward-looking statements within the meaning of the Private Litigation Reform Act. These statements 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 months and fiscal year ended June 30, 2006 as compared to the reported amounts for the same periods ended June 30, 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 FISCAL YEAR ENDED ---------------- ------------------ 6/30/06 6/30/05 6/30/06 6/30/05 ------- ------- -------- -------- Net sales $52,066 $47,551 $202,617 $178,652 Cost of sales 11,822 9,847 45,718 36,813 ------- ------- -------- -------- Gross margin 40,244 37,704 156,899 141,839 Operating expenses: Selling, general and administrative 6,269 6,173 27,604 24,476 Research and development 4,773 4,441 18,825 18,379 Amortization of intangible assets 491 305 1,967 1,221 ------- ------- -------- -------- Total operating expenses 11,533 10,919 48,396 44,076 ------- ------- -------- -------- Operating income 28,711 26,785 108,503 97,763 Other expense (income): Interest expense 258 206 964 822 Interest income (1,522) (929) (4,708) (4,109) Other non-operating expense (income), net 363 (42) 1,084 1,163 ------- ------ -------- -------- Total other expense (income) (901) (765) (2,660) (2,124) ------- ------- -------- -------- Earnings before income taxes 29,612 27,550 111,163 99,887 Income taxes 10,123 8,983 37,812 33,755 ------- ------- -------- -------- Net earnings $19,489 $18,567 $ 73,351 $ 66,132 ======= ======= ======== ======== Earnings per share: Basic $ 0.50 $ 0.48 $ 1.88 $ 1.64 Diluted $ 0.49 $ 0.47 $ 1.85 $ 1.62 Weighted average common shares outstanding: Basic 39,374 38,545 39,049 40,359 Diluted 39,487 39,396 39,594 40,920 TECHNE CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) 6/30/06 6/30/05 --------- --------- ASSETS Cash and equivalents $ 89,634 $ 80,344 Short-term available-for-sale investments 19,212 16,790 Trade accounts receivable 23,769 22,041 Other receivables 1,309 1,681 Inventory 9,024 7,758 Other current assets 6,874 6,367 --------- --------- Current assets 149,822 134,981 Available-for-sale investments 77,660 41,871 Property and equipment, net 88,772 89,036 Goodwill and intangible assets, net 32,021 14,138 Other non-current assets 22,237 15,237 --------- --------- Total assets $ 370,512 $ 295,263 ========= ========= LIABILITIES Current liabilities $ 17,966 $ 14,016 Long-term debt 12,198 13,378 Stockholders' equity 340,348 267,869 --------- --------- Total liabilities and equity $ 370,512 $ 295,263 ========= ========= EX-99.2 3 segment606.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 Fourth Percent First Second Third Fourth Quarter Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter Quarter YTD ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- -------- Sales 47,709 48,029 54,813 52,066 202,617 100% 6,790 5,782 6,878 4,515 23,965 Cost of sales 11,096 10,695 12,105 11,822 45,718 23% 2,209 1,754 2,967 1,975 8,905 ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- -------- Gross margin 36,613 37,334 42,708 40,244 156,899 77% 4,581 4,028 3,911 2,540 15,060 Gross margin percentage 76.7% 77.7% 77.9% 77.3% 77.4% SG&A expense 6,454 7,980 6,901 6,269 27,604 14% 820 1,690 522 96 3,128 R&D expense 4,717 4,574 4,761 4,773 18,825 9% 29 (45) 130 332 446 Amortization expense 492 492 492 491 1,967 1% 187 186 187 186 746 Interest expense 223 238 245 258 964 -- (22) 60 52 52 142 Interest income (974) (1,130) (1,082) (1,522) (4,708) (2%) 79 59 (144) (593) (599) Other non- operating ex., net 211 281 229 363 1,084 -- (255) (135) (94) 405 (79) ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- -------- 11,123 12,435 11,546 10,632 45,736 22% 838 1,815 653 478 3,784 ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- -------- Earnings before income taxes 25,490 24,899 31,162 29,612 111,163 55% 3,743 2,213 3,258 2,062 11,276 Income taxes 8,489 8,385 10,815 10,123 37,812 19% 934 633 1,350 1,140 4,057 ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- -------- 17,001 16,514 20,347 19,489 73,351 36% 2,809 1,580 1,908 922 7,219 ======= ======= ======= ======= ======= ======== ======= ======= ======= ======= ========
Diluted earnings per share 0.43 0.42 0.52 0.49 1.85 Weighted average diluted shares outstanding 39,669 39,761 39,425 39,487 39,594 BIOTECHNOLOGY (1) (in thousands of $'s)
Increase (Decrease) Fiscal 2006 From Fiscal 2005 ------------------------------------------------ ---------------------------------------- First Second Third Fourth Percent First Second Third Fourth Quarter Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter Quarter YTD ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- -------- Sales 37,599 37,697 43,013 40,076 158,385 100% 6,908 7,625 6,675 4,434 25,642 Intersegment sales (5,299) (6,555) (6,396) (5,711)(23,961) (495) (1,351) (798) 273 (2,371) ------- ------- ------- ------- ------- -------- ------- ------- ------- -------- 32,300 31,142 36,617 34,365 134,424 6,413 6,274 5,877 4,707 23,271 Cost of sales 8,470 8,147 9,125 8,597 34,339 22% 2,359 2,077 2,757 1,555 8,748 Intersegment sales (5,323) (6,140) (6,478) (5,757)(23,698) (567) (930) (999) 240 (2,256) ------- ------- ------- ------- ------- ------- -------- ------- ------- ------- -------- 3,147 2,007 2,647 2,840 10,641 1,792 1,147 1,758 1,795 6,492 Gross margin 29,153 29,135 33,970 31,525 123,783 78% 4,621 5,127 4,119 2,912 16,779 Gross margin Percentage 77.5% 78.4% 78.8% 78.5% 78.3% SG&A expense 3,639 4,194 4,199 3,410 15,442 10% 666 779 487 (7) 1,925 R&D expense 4,532 4,404 4,593 4,585 18,114 11% 32 (26) 161 338 505 Amortization expense 492 492 492 491 1,967 1% 187 186 187 186 746 Interest, net (268) (373) (285) (501) (1,427) (1%) 146 191 35 (222) 150 ------- ------- ------- ------- ------- ------- -------- ------- ------- ------- -------- 8,395 8,717 8,999 7,985 34,096 21% 1,031 1,130 870 295 3,326 ------- ------- ------- ------- ------- ------- -------- ------- ------- ------- -------- Pretax result 20,758 20,418 24,971 23,540 89,687 57% 3,590 3,997 3,249 2,617 13,453 ======= ======= ======= ======= ======= ======= ======== ======= ======= ======= ========
(1) Fiscal 2006 includes R&D Systems' Biotechnology Division, Fortron Bio Science, Inc., and BiosPacific, Inc. R&D SYSTEMS EUROPE (in thousands of British pound sterling)
Increase (Decrease) Fiscal 2006 From Fiscal 2005 ------------------------------------------------ ---------------------------------------- First Second Third Fourth Percent First Second Third Fourth Quarter Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter Quarter YTD ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- -------- Sales 6,690 7,529 8,256 7,278 29,753 100% 610 721 1,125 (297) 2,159 Cost of sales 3,292 3,765 4,191 3,630 14,878 50% 361 632 966 8 1,967 ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- -------- Gross margin 3,398 3,764 4,065 3,648 14,875 50% 249 89 159 (305) 192 Gross margin percentage 50.8% 50.0% 49.2% 50.1% 50.0% SG&A expense 1,004 1,185 1,070 1,115 4,374 15% 54 24 48 18 144 Interest income (326) (329) (342) (369) (1,366) (5%) (72) (66) (62) (62) (262) Exchange loss/ (gain) 15 26 (49) (9) (17) -- (11) 70 (65) 39 33 ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- -------- 693 882 679 737 2,991 10% (29) 28 (79) (5) (85) ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- -------- Pretax result 2,705 2,882 3,386 2,911 11,884 40% 278 61 238 (300) 277 ======= ======= ======= ======= ======= ======== ======= ======= ======= ======= ========
R&D SYSTEMS EUROPE (in thousands of $'s)
Increase (Decrease) Fiscal 2006 From Fiscal 2005 ------------------------------------------------ ---------------------------------------- First Second Third Fourth Percent First Second Third Fourth Quarter Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter Quarter YTD ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- -------- Sales 11,875 13,106 14,496 13,477 52,954 100% 856 242 953 (412) 1,639 Cost of sales 5,844 6,554 7,358 6,723 26,479 50% 532 636 1,232 68 2,468 ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- -------- Gross margin 6,031 6,552 7,138 6,754 26,475 50% 324 (394) (279) (480) (829) Gross margin percentage 50.8% 50.0% 49.2% 50.1% 50.0% SG&A expense 1,782 2,059 1,879 2,064 7,784 15% 60 (135) (60) 53 (82) Interest income (579) (572) (600) (680) (2,431) (5%) (119) (75) (69) (115) (378) Exchange loss/ (gain) 28 46 (87) (17) (30) -- (19) 128 (116) 71 64 ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- -------- 1,231 1,533 1,192 1,367 5,323 10% (78) (82) (245) 9 (396) ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- -------- Pretax result 4,800 5,019 5,946 5,387 21,152 40% 402 (312) (34) (489) (433) ======= ======= ======= ======= ======= ======= ======== ======= ======= ======= ========
HEMATOLOGY (in thousands of $'s)
Increase (Decrease) Fiscal 2006 From Fiscal 2005 ------------------------------------------------ ---------------------------------------- First Second Third Fourth Percent First Second Third Fourth Quarter Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter Quarter YTD ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- -------- Sales 3,534 3,781 3,700 4,224 15,239 100% (479) (734) 48 22 (945) Cost of sales 2,105 2,134 2,100 2,259 8,598 56% (115) (29) (23) 112 (55) ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- -------- Gross margin 1,429 1,647 1,600 1,965 6,641 44% (364) (705) 71 108 (890) Gross margin percentage 40.4% 43.6% 43.2% 46.5% 43.6% SG&A expense 384 424 441 376 1,625 11% (25) (12) (64) (82) (183) R&D expense 185 170 168 188 711 5% (3) (19) (31) (6) (59) Interest, net (37) (50) (40) (74) (201) (2%) 19 27 4 (36) 14 ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- -------- 532 544 569 490 2,135 14% (9) (4) (91) (124) (228) ------- ------- ------- ------- ------- -------- ------- ------- ------- ------- -------- Pretax result 897 1,103 1,031 1,475 4,506 30% (355) (701) 162 232 (662) ======= ======= ======= ======= ======= ======= ======== ======= ======= ======= ========
CORPORATE AND OTHER (2) (in thousands of $'s)
Increase (Decrease) Fiscal 2006 From Fiscal 2005 --------------------------------------- ---------------------------------------- First Second Third Fourth First Second Third Fourth Quarter Quarter Quarter Quarter YTD Quarter Quarter Quarter Quarter YTD ------- ------- ------- ------- ------- ------- ------- ------- ------- -------- Interest income 90 135 157 267 649 48 84 114 220 466 Rental income 342 337 287 320 1,286 323 284 (31) (40) 536 ------- ------- ------- ------- ------- ------- ------- ------- ------- -------- 432 472 444 587 1,935 371 368 83 180 1,002 SG&A expense 649 1,303 382 419 2,753 119 1,058 159 132 1,468 Interest expense 223 238 245 258 964 59 60 52 52 223 Other-Building expenses 443 490 520 529 1,982 79 12 (7) 197 281 Other-Hemerus losses 82 82 83 171 418 8 9 (2) 97 112 ------- ------- ------- ------- ------- ------- ------- ------- ------- -------- 1,397 2,113 1,230 1,377 6,117 265 1,139 202 478 2,084 ------- ------- ------- ------- ------- ------- ------- ------- ------- -------- Pretax result (965) (1,641) (786) (790) (4,182) 106 (771) (119) (298) (1,082) ======= ======= ======= ======= ======= ======= ======= ======= ======= ========
(2) Unallocated corporate expenses and Techne's share of losses by Hemerus Medical, LLC. -----END PRIVACY-ENHANCED MESSAGE-----