10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2011, or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to            

Commission file number 0-17272

TECHNE CORPORATION

(Exact name of registrant as specified in its charter)

Minnesota	41-1427402
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
614 McKinley Place N.E. Minneapolis, MN 55413	(612) 379-8854
(Address of principal executive offices) (Zip Code)	(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes   x    No   ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	¨

Indicate by check mark whether the Registrant is a shell company (as defined in Exchange Act Rule 12b-2).     ¨  Yes     x  No

At January 31, 2012, 36,862,507 shares of the Company’s Common Stock (par value $0.01) were outstanding.

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION

		Page
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Statements of Earnings for the Quarters and Six Months Ended December 31, 2011 and 2010		1
	Condensed Consolidated Balance Sheets as of December 31, 2011 and June 30, 2011		2
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended December 31, 2011 and 2010		3
	Notes to Condensed Consolidated Financial Statements		4
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		8
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		12
Item 4.	Controls and Procedures		14
	PART II: OTHER INFORMATION
Item 1.	Legal Proceedings		14
Item 1A.	Risk Factors		14
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		15
Item 3.	Defaults Upon Senior Securities		15
Item 4.	(Removed and Reserved)		15
Item 5.	Other Information		15
Item 6.	Exhibits		15
	SIGNATURES		16

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

TECHNE Corporation and Subsidiaries

(in thousands, except per share data)

(unaudited)

	Quarter Ended						Six Months Ended
	December 31,						December 31,
	2011			2010			2011			2010
Net sales	$	74,662		$	67,708		$	152,258		$	135,653
Cost of sales		19,492			15,327			38,701			30,677
Gross margin		55,170			52,381			113,557			104,976
Operating expenses:
Selling, general and administrative		10,651			8,427			21,424			16,040
Research and development		6,837			6,603			13,504			13,222
Total operating expenses		17,488			15,030			34,928			29,262
Operating income		37,682			37,351			78,629			75,714
Other income (expense):
Interest income		798			1,020			1,526			1,867
Other non-operating expense, net		(607	)		(698	)		(1,782	)		(955	)
Total other income (expense)		191			322			(256	)		912
Earnings before income taxes		37,873			37,673			78,373			76,626
Income taxes		12,060			11,139			25,039			23,719
Net earnings	$	25,813		$	26,534		$	53,334		$	52,907
Earnings per share:
Basic	$	0.70		$	0.72		$	1.44		$	1.43
Diluted	$	0.70		$	0.71		$	1.44		$	1.42
Cash dividends per common share:	$	0.28		$	0.27		$	0.55		$	0.53
Weighted average common shares outstanding:
Basic		36,966			37,093			37,030			37,066
Diluted		37,028			37,156			37,099			37,131

See Notes to Condensed Consolidated Financial Statements.

1

CONDENSED CONSOLIDATED BALANCE SHEETS

TECHNE Corporation and Subsidiaries

(in thousands, except share and per share data)

(unaudited)

	December 31,			June 30,
	2011			2011
ASSETS
Current assets:
Cash and cash equivalents	$	80,994		$	77,613
Short-term available-for-sale investments		56,758			63,200
Trade accounts receivable, less allowance for doubtful accounts of $450 and $448, respectively		32,351			35,914
Other receivables		2,194			1,946
Inventories		40,978			44,906
Deferred income taxes		12,921			5,797
Prepaid expenses		1,020			1,041
Total current assets		227,216			230,417
Available-for-sale investments		148,114			131,988
Property and equipment, net		94,604			95,398
Goodwill		85,240			86,633
Intangible assets, net		48,679			52,282
Investments in unconsolidated entities		19,176			19,633
Other assets		1,219			1,319
	$	624,248		$	617,670
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Trade accounts payable	$	5,914		$	5,207
Salaries, wages and related accruals		3,764			4,784
Accrued expenses		3,478			2,688
Income taxes payable		967			5,509
Total current liabilities		14,123			18,188
Deferred income taxes		12,619			13,360
Shareholders’ equity:
Common stock, par value $.01 per share; authorized 100,000,000; issued and outstanding 36,891,490 and 37,153,398, respectively		369			371
Additional paid-in capital		130,517			129,312
Retained earnings		487,524			472,730
Accumulated other comprehensive loss		(20,904	)		(16,291	)
Total shareholders’ equity		597,506			586,122
	$	624,248		$	617,670

See Notes to Condensed Consolidated Financial Statements.

2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

TECHNE Corporation and Subsidiaries

(in thousands)

(unaudited)

	Six Month Ended
	December 31,
	2011			2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	53,334		$	52,907
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		6,314			4,058
Costs recognized on sale of acquired inventory		3,915			0
Deferred income taxes		(7,472	)		1,355
Stock-based compensation expense		1,148			850
Excess tax benefit from stock option exercises		(13	)		(413	)
Losses by equity method investees		415			547
Other		108			183
Change in operating assets and operating liabilities:
Trade accounts and other receivables		1,263			1,159
Inventories		(929	)		(234	)
Prepaid expenses		7			27
Trade accounts payable and accrued expenses		1,435			(842	)
Salaries, wages and related accruals		(253	)		(417	)
Income taxes payable		(4,402	)		956
Net cash provided by operating activities		54,870			60,136
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of available-for-sale investments		(84,043	)		(80,589	)
Proceeds from sales of available-for-sale investments		39,085			55,346
Proceeds from maturities of available-for-sale investments		36,935			24,432
Additions to property and equipment		(3,297	)		(1,765	)
Distribution from unconsolidated entity		42			0
Net cash used in investing activities		(11,278	)		(2,576	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash dividends		(20,387	)		(19,640	)
Proceeds from stock option exercises		45			3,429
Excess tax benefit from stock option exercises		13			413
Purchase of common stock for stock bonus plans		(907	)		(294	)
Repurchase of common stock		(17,748	)		(1,940	)
Net cash used in financing activities		(38,984	)		(18,032	)
Effect of exchange rate changes on cash and cash equivalents		(1,227	)		2,208
Net increase in cash and cash equivalents		3,381			41,736
Cash and cash equivalents at beginning of period		77,613			94,139
Cash and cash equivalents at end of period	$	80,994		$	135,875

See Notes to Condensed Consolidated Financial Statements.

3

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

TECHNE Corporation and Subsidiaries

(unaudited)

A. Basis of presentation:

The interim unaudited condensed consolidated financial statements of Techne Corporation and Subsidiaries (the Company) have been prepared in accordance with accounting principles generally accepted in the United States of America and with instructions to Form 10-Q and Article 10 of Regulation S-X. The accompanying interim unaudited condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. All such adjustments are of a normal recurring nature.

A summary of significant accounting policies followed by the Company is detailed in the Company’s Annual Report on Form 10-K for fiscal 2011. The Company follows these policies in preparation of the interim unaudited condensed consolidated financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Consolidated Financial Statements and Notes thereto for the fiscal year ended June 30, 2011, included in the Company’s Annual Report on Form 10-K for fiscal 2011.

Certain reclassifications have been made to prior years’ Condensed Consolidated Financial Statements to conform to the current year presentation. The Company reclassified prior years’ amortization expense as appropriate based upon the nature of the related intangible asset to cost of sales or selling, general and administrative expense. These reclassifications had no impact on net earnings or shareholders’ equity as previously reported.

B. Available-for-sale investments:

Included in “Long-term available-for-sale investments” at December 31, 2011 is a $10 million loan receivable from ChemoCentryx, Inc. (CCX), one of the Company’s equity investees. The loan bears interest at 5% with interest due annually until maturity on September 30, 2021. The loan agreement contains a number of conversion features contingent upon CCX obtaining future debt or equity financing. In addition, the agreement includes a $5 million commitment by the Company to participate in a private placement in the event of a successful public offering of CCX shares. The loan is carried at fair value based on the Company’s assessment (Level 3 input) using an internal cash flow valuation that incorporated contractual terms, maturity, timing and amount of future cash flows, as well as assumptions about liquidity. There was no change in the fair value of the investment for the quarter or six month periods ended December 31, 2011.

The Company’s remaining available-for-sale investments at December 31, 2011 are carried at fair value and are valued using quoted market prices in active markets (Level 1 input) for identical assets and liabilities.

C. Inventories:

Inventories consist of (in thousands):

	December 31,		June 30,
	2011		2011
Raw materials	$	5,455	$	5,644
Finished goods		35,523		39,262
	$	40,978	$	44,906

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D. Property and equipment:

Property and equipment consist of (in thousands):

	December 31,		June 30,
	2011		2011
Cost:
Land	$	7,461	$	7,497
Buildings and improvements		121,591		119,833
Laboratory equipment		30,999		30,315
Office equipment		5,614		5,407
		165,665		163,052
Accumulated depreciation and amortization		71,061		67,654
	$	94,604	$	95,398

E. Intangible assets and goodwill:

Intangible assets consist of (in thousands):

	December 31,		June 30,
	2011		2011
Developed technology	$	29,162	$	29,943
Trade names		17,802		18,021
Customer relationships		8,679		8,781
Non-compete agreement		400		400
		56,043		57,145
Accumulated amortization		7,364		4,863
	$	48,679	$	52,282

The change in the carrying amount of net intangible assets for the six months ended December 31, 2011 resulted from amortization expense and currency translation. Amortization expense related to technologies included in cost of sales was $749,000 and $1.5 million, respectively, for the quarter and six months ended December 31, 2011, and $110,000 and $219,000 for the quarter and six months ended December 31, 2010, respectively. Amortization expense related to trade names, customer relationships, and the non-compete agreement included in selling, general and administrative expense was $519,000 and $1.0 million for the quarter and six months ended December 31, 2011, respectively, and $61,000 and $122,000 for the quarter and six months ended December 31, 2010, respectively. The change in the carrying amount of goodwill for the six months ended December 31, 2011 resulted from currency translation.

F. Share-based compensation:

Option activity under the Company’s stock option plans during the six months ended December 31, 2011 was as follows:

	Shares (in  thousands)			Weighted Average Exercise Price		Weighted Average Contractual Life (Yrs.)		Aggregate Intrinsic Value
Outstanding at June 30, 2011		499		$	64.15
Granted		65		$	72.59
Exercised		(1	)	$	39.93
Outstanding at December 31, 2011		563		$	65.18		6.1	$	3.0 million
Exercisable at December 31, 2011		354		$	60.43		6.1	$	2.9 million

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The fair value of options granted under the Company’s stock option plans was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions used:

	Quarter Ended December 31,				Six Months  Ended December 31,
	2011		2010		2011		2010
Dividend yield		1.6%		1.8%		1.5%		1.8%
Expected annualized volatility		22%		27%		22%-23%		22%-27%
Risk free interest rate		1.9%		2.0%		1.4%-1.9%		1.3%-2.0%
Expected life		7 years		7 years		6 years		7 years

The dividend yield is based on the Company’s historical annual cash dividend divided by the market value of the Company’s Common Stock. The expected annualized volatility is based on the Company’s historical stock price over a period equivalent to the expected life of the option granted. The risk-free interest rate is based on U.S. Treasury constant maturity interest rates with a term consistent with the expected life of the options granted. Separate groups of employees that have similar historical exercise behavior with regard to option exercise timing and forfeiture rates are considered separately in determining option fair value.

The weighted average per share fair value of options granted during the quarter and six months ended December 31, 2011 was $15.68 and $14.90, respectively. The weighted average per share fair value of options granted during the quarter and six months ended December 31, 2010 was $15.70 and $15.02, respectively. The total intrinsic value of options exercised during the six months ended December 31, 2011 was $34,000. No options were exercised during the quarter ended December 31, 2011. The total intrinsic value of options exercised during the quarter and six months ended December 31, 2010 was $1.5 million and $1.8 million, respectively. The total fair value of options vested during the quarter and six months ended December 31, 2011 was $627,000 and $698,000, respectively. The total fair value of options vested during the quarter and six months ended December 31, 2010 was $628,000 and $677,000, respectively.

Stock-based compensation cost of $858,000 and $1.1 million was included in selling, general and administrative expense for the quarter and six months ended December 31, 2011, respectively. Stock-based compensation cost of $714,000 and $850,000 was included in selling, general and administrative expense for the quarter and six months ended December 31, 2010, respectively. Compensation cost is recognized using a straight-line method over the vesting period and is net of estimated forfeitures. As of December 31, 2011, there was $2.3 million of total unrecognized compensation cost related to non-vested stock options. The weighted average period over which the compensation cost is expected to be recognized is 1.4 years.

G. Earnings per share:

Shares used in the earnings per share computations are as follows (in thousands):

	Quarter Ended December 31,				Six Months Ended December 31,
	2011		2010		2011		2010
Weighted average common shares outstanding-basic		36,966		37,093		37,030		37,066
Dilutive effect of stock options		62		63		69		65
Weighted average common shares outstanding-diluted		37,028		37,156		37,099		37,131

The dilutive effect of stock options in the above table excludes all options for which the aggregate exercise proceeds exceeded the average market price for the period. The number of potentially dilutive option shares excluded from the calculation was 238,000 and 192,000 for the quarter and six months ended December 31, 2011, respectively, and 71,000 and 90,000 for the quarter and six months ended December 31, 2010, respectively.

6

H. Segment information:

The Company has two reportable segments based on the nature of products: biotechnology and hematology. Following is financial information relating to the Company’s reportable segments (in thousands):

	Quarter Ended December 31,						Six Months Ended December 31,
	2011			2010			2011			2010
External sales
Biotechnology	$	69,808		$	63,080		$	142,111		$	126,121
Hematology		4,854			4,628			10,147			9,532
Consolidated net sales	$	74,662		$	67,708		$	152,258		$	135,653
Earnings before income taxes
Biotechnology	$	37,878		$	37,953		$	77,862		$	76,413
Hematology		1,681			1,427			3,599			3,349
Segment earnings before income taxes		39,559			39,380			81,461			79,762
Unallocated corporate expenses and equity method investee losses		(1,686	)		(1,707	)		(3,088	)		(3,136	)
Consolidated earnings before income taxes	$	37,873		$	37,673		$	78,373		$	76,626

I. Comprehensive income:

Comprehensive income was as follows (in thousands):

	Quarter Ended December 31,						Six Months Ended December 31,
	2011			2010			2011			2010
Net earnings	$	25,813		$	26,534		$	53,334		$	52,907
Foreign currency translation adjustments		(705	)		(1,378	)		(4,606	)		2,521
Unrealized gain (loss) on available-for-sale investments, net of tax		21			(381	)		(7	)		(337	)
	$	25,129		$	24,775		$	48,721		$	55,091

Accumulated other comprehensive (loss) income consists of (in thousands):

	December 31, 2011			June 30, 2011
Foreign currency translation adjustments	$	(21,545	)	$	(16,939	)
Net unrealized gain on available-for-sale investments, net of tax		641			648
	$	(20,904	)	$	(16,291	)

J. Recent accounting pronouncements:

In June 2011, the FASB issued Accounting Standards Update (ASU) No. 2011-05 Comprehensive Income under an amendment to Topic 220. Under this update, an entity has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. ASU No. 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders’ equity. The update does not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. The Company must comply with ASU No. 2011-05 for the quarter ended September 30, 2012. The Company does not believe this update will have a material impact on the Company’s consolidated financial statements.

7

In September 2011, the FASB issued ASU No. 2011-08 Intangibles – Goodwill and Other under an amendment to Topic 350, which permits an entity to make a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the two-step goodwill impairment test. If an entity concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, it would not be required to perform the two-step impairment test for that reporting unit. The update is effective for the Company for annual and interim goodwill impairment tests for fiscal 2013. Early adoption is permitted. The Company does not believe this update will have a material impact on the Company’s consolidated financial statements.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

OVERVIEW

TECHNE Corporation and subsidiaries (the Company) are engaged in the development, manufacture and sale of biotechnology products and hematology calibrators and controls. These activities are conducted domestically through its wholly-owned subsidiaries, Research and Diagnostic Systems, Inc. (R&D Systems), Boston Biochem, Inc. (Boston Biochem), Tocris Cookson, Inc. (Tocris US), and BiosPacific, Inc. (BiosPacific). The Company’s European biotechnology operations are conducted through its wholly-owned U.K. subsidiaries, R&D Systems Europe Ltd. (R&D Europe) and Tocris Holdings Limited (Tocris UK). R&D Europe has a sales subsidiary, R&D Systems GmbH, in Germany and a sales office in France. The Company distributes its biotechnology products in China through its wholly-owned subsidiary, R&D Systems China Co., Ltd. (R&D China). R&D China has a sales subsidiary, R&D Systems Hong Kong Ltd., in Hong Kong.

The Company has two reportable segments based on the nature of its products: biotechnology and hematology. R&D Systems’ Biotechnology Division, R&D Europe, Tocris, R&D China, BiosPacific and Boston Biochem operating segments are included in the biotechnology reporting segment. The Company’s biotechnology reporting segment develops, manufactures and sells biotechnology research and diagnostic products world-wide. The Company’s hematology reporting segment, which consists of R&D Systems’ Hematology Division, develops and manufactures hematology controls and calibrators for sale world-wide.

RESULTS OF OPERATIONS

Consolidated net sales and consolidated net earnings before tax increased 10.3% and 0.5%, respectively for the quarter ended December 31, 2011 compared to the quarter ended December 31, 2010. Consolidated net sales and consolidated net earnings before tax increased 12.2% and 2.3%, respectively for the six months ended December 31, 2011 compared to the six months ended December 31, 2010. Consolidated net sales for the quarter and six months ended December 31, 2011 included $5.5 million and $11.1 million of revenues from the Boston Biochem and Tocris businesses that were acquired during the fourth quarter of fiscal 2011. Consolidated net sales for the quarter and six months ended December 31, 2011 were positively affected by changes in exchange rates from the prior year. The favorable impact on consolidated net sales of the change from the prior year in exchange rates used to convert sales in foreign currencies (primarily British pounds sterling, euros and Chinese yuan) into U.S. dollars was $238,000 and $2.1 million, respectively, for the quarter and six months ended December 31, 2011.

8

Net sales

Consolidated net sales for the quarter and six months ended December 31, 2011 were $74.7 million and $152.3 million, respectively, increases of $7.0 million (10.3%) and $16.6 million (12.2%) from the quarter and six months ended December 31, 2010. Included in consolidated net sales for the quarter and six months ended December 31, 2011 were $5.5 million and $11.1 million, respectively, of sales from products of companies acquired during the fourth quarter of fiscal 2011. Excluding these sales from acquisitions and the effect of changes in foreign currency exchange rates, consolidated net sales increased 1.8% and 2.5% for the quarter and six months ended December 31, 2011 from the comparable prior-year periods. Included in consolidated net sales for the quarter and six months ended December 31, 2011 were $636,000 and $871,000, respectively, of sales of new biotechnology products that had their first sale in fiscal 2012.

Biotechnology segment net sales increased $6.7 million (10.7%) and $16.0 million (12.7%) for the quarter and six months ended December 31, 2011, respectively, compared to the same prior-year periods. Excluding sales from acquisitions and changes in exchange rates from the prior year, biotechnology segment sales increased $974,000 (1.5%) and $2.8 million (2.2%), respectively. This increase was mainly the result of increased sales volume. For the quarter and six months ended December 31, 2011, biotechnology net sales to U.S. industrial, pharmaceutical and biotechnology customers increased 4.6% and 7.0%, respectively. Biotechnology net sales to U.S. academic customers decreased 4.1% and 3.3% for the quarter and six months ended December 31, 2011, respectively, compared to the comparable prior-year periods. Sales to Pacific Rim distributors increased 11.2% and 5.8% for the quarter and six months ended December 31, 2011, respectively, compared to the comparable prior-year periods. Biotechnology segment net sales by R&D Europe increased 1.0% and 5.9% for the quarter and six months ended December 31, 2011, respectively. Excluding changes in currency rates and sales from acquired products, R&D Europe net sales decreased 0.8% in both periods as compared to the prior year. Biotechnology segment net sales by R&D China increased 48.5% and 36.7% for the quarter and six months ended December 31, 2011, respectively, compared to the quarter and six months ended December 31, 2010. Excluding changes in currency rates and sales from acquired products, R&D China net sales increased 32.8% and 23.8%, respectively.

Hematology segment net sales increased $226,000 (4.9%) and $615,000 (6.5%) for the quarter and six months ended December 31, 2011 compared to the same prior-year periods as a result of increased sales volume.

Gross margins

Gross margins, as a percentage of net sales, were as follows:

	Quarter Ended December 31,						Six Months  Ended December 31,
	2011			2010			2011			2010
Biotechnology		75.8	%		80.0	%		76.5	%		79.8	%
Hematology		46.3	%		41.5	%		47.3	%		45.3	%
Consolidated		73.9	%		77.4	%		74.6	%		77.4	%

Consolidated gross margins, as a percentage of consolidated net sales, were 73.9% and 74.6% for the quarter and six months ended December 31, 2011, respectively, compared to 77.4% for both the quarter and six months ended December 31, 2010. Consolidated and biotechnology segment gross margin percentages for the quarter and six months ended December 31, 2011 were negatively impacted as a result of purchase accounting related to inventory and intangible assets acquired during the fourth quarter of fiscal 2011. Under purchase accounting, inventory acquired is valued at fair value less expected selling and marketing costs, resulting in reduced margins in future periods as the inventory is sold. For the quarter and six months ended December 31, 2011, the consolidated margin was reduced $1.8 million (2.4%) and $3.9 million (2.6%) as a result of purchase accounting related to acquired inventory sold in the respective periods. In addition, consolidated gross margins for the quarter and six months ended December 31, 2011 were reduced $749,000 (1.0%) and $1.5 million (1.0%), respectively, as a result of amortization of acquired technology, compared to $110,000 (0.2%) and $219,000 (0.2%) for the quarter and six months ended December 31, 2010, respectively. The hematology segment gross margin percentage for the quarter and six months ended December 31, 2011 were 46.3% and 47.3%, compared to 41.5% and 45.3% for the quarter and six months ended December 31, 2010, as a result of changes in product mix.

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Selling, general and administrative expenses

Selling, general and administrative expenses were composed of the following (in thousands):

	Quarter Ended December 31,				Six Months Ended December 31,
	2011		2010		2011		2010
Biotechnology	$	9,003	$	6,859	$	18,473	$	13,345
Hematology		400		336		880		664
Unallocated corporate expenses		1,248		1,232		2,071		2,031
	$	10,651	$	8,427	$	21,424	$	16,040

Selling, general and administrative expenses for the quarter and six months ended December 31, 2011 increased $2.2 million (26.4%) and $5.4 million (33.6%) from the same prior-year periods. The increase in selling, general and administrative expense resulted primarily from expenses of the companies acquired in late fiscal 2011 of $1.7 million and $3.3 million for the quarter and six months ended December 31, 2011, respectively. In addition, the increase in selling, general and administrative expenses was due to an increase in customer relationships and trade name amortization as a result of the acquisitions of $458,000 and $918,000 for the quarter end six months ended December 31, 2011, respectively, and an increase in profit sharing expense of $832,000 for the six months ended December 31, 2011.

Research and development expenses

Research and development expenses were composed of the following (in thousands):

	Quarter Ended December 31,				Six Months Ended December 31,
	2011		2010		2011		2010
Biotechnology	$	6,624	$	6,379	$	13,093	$	12,800
Hematology		213		224		411		422
	$	6,837	$	6,603	$	13,504	$	13,222

Research and development expenses for the quarter and six months ended December 31, 2011 increased $234,000 and $282,000 from the same prior- year periods. The increase was mainly due to increases in personnel and supply costs associated with the continuous development and release of new high-quality biotechnology products.

Other non-operating expense, net

Other non-operating expense, net, consists mainly of foreign currency transaction gains and losses, rental income, building expenses related to rental property, and the Company’s share of losses by equity method investees.

	Quarter Ended December 31,						Six Months Ended December 31,
	2011			2010			2011			2010
Foreign currency (losses) gains	$	(105	)	$	(87	)	$	(629	)	$	418
Rental income		198			138			332			261
Building expenses related to rental property		(482	)		(531	)		(1,069	)		(1,087	)
Losses by equity method investees		(218	)		(218	)		(416	)		(547	)
	$	(607	)	$	(698	)	$	(1,782	)	$	(955	)

10

Income taxes

Income taxes for the quarter and six months ended December 31, 2011 were provided at rates of 31.8% and 31.9% of consolidated earnings before income taxes compared to 29.6% and 31.0% for the same prior-year periods. The low tax rate for the quarter and six months ended December 31, 2010 was a result of the renewal of the U.S. research and development credit in the second quarter of fiscal 2011. Included in income taxes for the quarter and six months ended December 31, 2010 was a $659,000 research and development credit related to prior periods. Foreign income taxes have been provided at rates that approximate the tax rates in the countries in which R&D Europe, Tocris and R&D China operate. The Company expects its fiscal 2012 effective income tax rate to range from approximately 31.0% to 33.0%.

LIQUIDITY AND CAPITAL RESOURCES

At December 31, 2011, cash and cash equivalents and available-for-sale investments were $286 million compared to $273 million at June 30, 2011. The Company believes it can meet its cash and working capital requirements, capital addition needs and share repurchase, cash dividend, investment and acquisition strategies for at least the next twelve months through currently available funds, cash generated from operations and maturities or sales of available-for-sale investments. The Company has an unsecured line of credit of $750,000. The interest rate on the line of credit is at prime. There were no borrowings on the line in the prior or current fiscal year.

On January 23, 2012, CCX filed a Form S-1/A with the Securities & Exchange Commission for an initial public offering of 4.0 million shares of CCX common stock at an estimated price of between $14.00 and $16.00 per share. If this offering is successful, in addition to the Company purchasing $5.0 million of CCX common shares, all preferred shares of CCX held by the Company and the loan receivable from CCX, including interest, would automatically convert into common shares of CCX. The fair market value of the Company’s investment in CCX, assuming an offering price of $14.00 per share at the date of the initial public offering, would be approximately $81 million, implying a $51.7 million unrealized gain. A variance of $1.00 in the initial public offering price would change the unrealized appreciation of the Company’s CCX holding by plus or minus $4.7 million. The Company has agreed not to sell any CCX share for 180 days following an initial public offering.

At December 31, 2011, the Company has a deferred tax asset of $5.0 million related to excess tax basis in its investment in CCX. A 100% valuation allowance has been recorded against the deferred tax asset at December 31, 2011. A successful initial public offering by CCX might result in the reversal of this valuation allowance with a positive after tax impact of approximately $1.8 million.

Cash flows from operating activities

The Company generated cash of $54.9 million from operating activities in the first six months of fiscal 2012 compared to $60.1 million in the first six months of fiscal 2011. The decrease from the prior year was primarily due to changes in deferred income taxes and income taxes payable, as a result of the timing of tax payments, partially offset by adjustments for non-cash depreciation expense, amortization expense, and costs recognized on the sale of acquired inventory.

Cash flows from investing activities

During the six months ended December 31, 2011, the Company purchased $84.0 million and had sales or maturities of $76.0 million of available-for-sale investments. During the six months ended December 31, 2010, the Company purchased $80.6 million and had sales or maturities of $79.8 million of available-for-sale investments. The Company’s investment policy is to place excess cash in municipal and corporate bonds and other investments with maturities of less than three years. The objective of this policy is to obtain the highest possible return while minimizing risk and keeping the funds accessible.

Capital expenditures for fixed assets for the first six months of fiscal 2012 and 2011 were $3.3 million and $1.8 million. Included in capital expenditures for the first six months of fiscal 2012 was $1.9 million related to remodeling of laboratory space at the Company’s Minneapolis facility. The remaining capital additions were mainly for laboratory and computer equipment. Capital expenditures in the remainder of fiscal 2012 are expected to be approximately $4.2 million and are expected to be financed through currently available funds and cash generated from operating activities.

Cash flows from financing activities

During the first six months of fiscal 2012 and 2011, the Company paid cash dividends of $20.4 million and $19.6 million, respectively, to all common shareholders. On January 31, 2012, the Company announced the payment of a $0.28 per share cash dividend. The dividend of approximately $10.3 million will be payable February 24, 2012 to all common shareholders of record on February 10, 2012.

Cash of $45,000 and $3.4 million was received during the six months ended December 31, 2011 and 2010, respectively, from the exercise of stock options. The Company also recognized excess tax benefits from stock option exercises of $13,000 and $413,000 for the six months ended December 31, 2011 and 2010, respectively.

11

During the first six months of fiscal 2012 and 2011, the Company purchased 13,140 and 4,923 shares of common stock for its employee stock bonus plans at a cost of $907,000 and $294,000, respectively.

During the first six months of fiscal 2012, the Company purchased and retired 263,027 shares of common stock at a market value of $18.2 million, of which $17.7 million had been disbursed prior to December 31, 2011. During the first six months of fiscal 2011, the Company disbursed $1.9 million for the settlement of common stock purchased and retired during the fourth quarter of fiscal 2010.

CONTRACTUAL OBLIGATIONS

There were no material changes outside the ordinary course of business in the Company’s contractual obligations during the quarter ended December 31, 2011.

CRITICAL ACCOUNTING POLICIES

The Company’s significant accounting policies are discussed in the Company’s Annual Report on Form 10-K for fiscal 2011. The application of certain of these policies requires judgments and estimates that can affect the results of operations and financial position of the Company. Judgments and estimates are used for, but not limited to, valuation of available-for-sale investments, inventory valuation and allowances, valuation of intangible assets and goodwill and valuation of investments in unconsolidated entities. There have been no significant changes in estimates in fiscal 2012 that would require disclosure. There have been no changes to the Company’s policies in fiscal 2012.

FORWARD LOOKING INFORMATION AND CAUTIONARY STATEMENTS

This quarterly report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those regarding the Company’s expectations as to the effect of changes to accounting policies, effective tax rate, pending litigation, the amount of capital expenditures for the remainder of the fiscal year, the sufficiency of currently available funds for meeting the Company’s needs and the impact of fluctuations in interest rates and currency exchange rates. These statements 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 introduction and acceptance of new products, general economic conditions, increased competition, the reliance on internal manufacturing and related operations, the impact of currency exchange rate fluctuations, the integration of Boston Biochem and Tocris, the recruitment and retention of qualified personnel, the impact of governmental regulation, maintenance of intellectual property rights, credit risk and fluctuation in the market value of the Company’s investment portfolio and the success of financing efforts by companies in which the Company has invested. For additional information concerning such factors, see the Company’s Annual Report on Form 10-K for fiscal 2011 as filed with the Securities and Exchange Commission.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

At December 31, 2011, the Company had a portfolio of fixed income securities, excluding those classified as cash and cash equivalents, of $205 million. These securities, like all fixed income instruments, are subject to interest rate risk and will decline in value if market interest rates increase. As the Company’s fixed income securities are classified as available-for-sale, no gains or losses are recognized by the Company in its consolidated statements of earnings due to changes in interest rates unless such securities are sold prior to maturity. The Company generally holds its fixed income securities until maturity and, historically, has not recorded any material gains or losses on any sale prior to maturity.

12

The Company operates internationally, and thus is subject to potentially adverse movements in foreign currency rate changes. For the six months ended December 31, 2011, approximately 31% of consolidated net sales were made in foreign currencies, including 16% in euros, 7% in British pound sterling, 3% in Chinese yuan and the remaining 5% in other European currencies. As a result, the Company is exposed to market risk mainly from foreign exchange rate fluctuations of the euro, British pound sterling and the Chinese yuan as compared to the U.S. dollar as the financial position and operating results of the Company’s foreign operations are translated into U.S. dollars for consolidation.

Month-end average exchange rates between the British pound sterling, euro and Chinese yuan and the U.S. dollar, which have not been weighted for actual sales volume in the applicable months in the periods, were as follows:

	Quarter Ended December 31,				Six Months  Ended December 31,
	2011		2010		2011		2010
Euro	$	1.34	$	1.34	$	1.37	$	1.33
British pound sterling		1.58		1.57		1.59		1.56
Chinese yuan		.158		.151		.157		.149

The Company’s exposure to foreign exchange rate fluctuations also arises from trade receivables and intercompany payables denominated in one currency in the financial statements, but receivable or payable in another currency. At December 31, 2011, the Company had the following trade receivable and intercompany payables denominated in one currency but receivable or payable in another currency (in thousands):

	Denominated Currency		U.S.  Dollar Equivalent
Accounts receivable in:
Euros	£	1,024	$	1,591
Other European currencies	£	713	$	1,108
Intercompany payable in:
Euros	£	61	$	95
U.S. dollars	£	2,766	$	4,299
U.S. dollars		yuan 5,543	$	880
British pound sterling		yuan    131	$	21

All of the above balances are revolving in nature and are not deemed to be long-term balances. The Company does not enter into foreign exchange forward contracts to reduce its exposure to foreign currency rate changes on forecasted intercompany foreign currency denominated balance sheet positions. Foreign currency transaction gains and losses are included in “Other non-operating expense” in the consolidated statement of earnings. The effect of translating net assets of foreign subsidiaries into U.S. dollars are recorded on the consolidated balance sheet as part of “Accumulated other comprehensive income.”

The effects of a hypothetical simultaneous 10% appreciation in the U.S. dollar from December 31, 2011 levels against the euro, British pound sterling and Chinese yuan are as follows (in thousands):

Decrease in translation of 2012 earnings into U.S. dollars (annualized)	$	2,360
Decrease in translation of net assets of foreign subsidiaries		13,485
Additional transaction losses		518

13

ITEM 4. CONTROLS AND PROCEDURES

As of the end of the period covered by this report, the Company conducted an evaluation, under the supervision and with the participation of the principal executive officer and principal financial officer, of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 as amended (the Exchange Act)). Based on this evaluation, the principal executive officer and principal financial officer concluded that the Company’s disclosure controls and procedures are effective to ensure that material information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms. There was no change in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the Company’s most recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

In a previously disclosed lawsuit filed by Streck, Inc. (Streck), venued in the U.S. District Court for the District of Nebraska (the Nebraska Court), Streck alleged patent infringement involving certain patents issued to Streck relating to the addition of reticulocytes to hematology controls. Streck was seeking a royalty on sales of integrated hematology controls containing reticulocytes. The Company has reason to believe that R&D Systems, and not Streck, first invented the inventions claimed in these patents and several other patents issued to Streck. As a result, the Company requested, and in 2007 the U.S. Patent and Trademark Office (USPTO) declared, an interference to determine priority of invention between a patent application filed by R&D Systems and five Streck patents, including each of the patents involved in the lawsuit. On November 2, 2009, the interference board ordered that judgment for the Company and against Streck be entered; finding that R&D Systems was the first to invent the integrated hematology controls containing reticulocytes.

The judgment, if upheld by the Federal Circuit Court of Appeals, will constitute cancellation of all claims of the five Streck patents involving the addition of reticulocytes to hematology controls. Such cancellation may moot an earlier jury decision on October 28, 2009, at the conclusion of trial in the Nebraska Court, that the Company did not meet its burden of demonstrating by clear and convincing evidence that the Streck patents were invalid. The jury also found that a reasonable license royalty rate was 12.5%, and that R&D Systems did not willfully infringe, resulting in a judgment in favor of Streck in the amount of approximately $170,000 including court-related costs. On September 30, 2010, the Nebraska Court upheld the jury verdict and, in a related action, reversed the ruling of the USPTO interference board. The Nebraska Court entered an injunction prohibiting the making and selling of the products that are the subject of the lawsuit, but stayed a portion of the injunction to allow the Company to sell inventory on-hand through December 20, 2010. In October 2010, the Company appealed the adverse decisions of the Nebraska Court to the Federal Circuit Court of Appeals. On October 20, 2011, the Federal Circuit issued an opinion upholding the District Court’s interference-related finding of priority in favor of Streck, and on January 10, 2012, the Federal Circuit affirmed the District Court’s infringement finding and permanent injunction. The Company has filed a Petition for rehearing regarding the affirmation of the interference-related findings and has filed a motion to stay the mandate in the infringement case. The Company does not believe the resolution of the above proceedings will have a material impact on the Company’s consolidated financial statements.

ITEM 1A. RISK FACTORS

There have been no material changes from the risk factors previously disclosed in Part I, Item 1A, “Risk Factors,” of the Company’s Annual Report on Form 10-K for the year ended June 30, 2011.

14

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table sets forth the repurchases of Company common stock for the quarter ended December 31, 2011:

Period	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
10/1/11-10/31/11	0	$	0	0	$	39.9 million
11/1/11-11/30/11	60,811	$	65.76	60,811	$	35.9 million
12/1/11-12/31/11	52,356	$	66.50	52,356	$	32.4 million

In April 2009, the Company authorized a plan for the repurchase and retirement of $60 million of its common stock. The plan does not have an expiration date.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. (REMOVED AND RESERVED)

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

See “exhibit index” following the signature page.

15

SIGNATURES

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 thereunto duly authorized.

	TECHNE CORPORATION (Company)
Date: February 7, 2012		/s/ Thomas E. Oland
		Thomas E. Oland President, Chief Executive Officer
Date: February 7, 2012		/s/ Gregory J. Melsen
		Gregory J. Melsen Chief Financial Officer

EXHIBIT INDEX

TO

FORM 10-Q

TECHNE CORPORATION

Exhibit #	Description
10.1	Deed of Assignment and Novation dated January 23, 2012 in connection with a share purchase agreement relating to Tocris Holdings Limited.
31.1	Section 302 Certification
31.2	Section 302 Certification
32.1	Section 906 Certification
32.2	Section 906 Certification
101	The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2011, formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Earnings, (iii) the Condensed Consolidated Statements of Cash Flows, and (iv) Notes to the Condensed Consolidated Financial Statements.*

*Pursuant to Rule 406T of Regulation S-T, the XBRL related information in Exhibit 101 to this Quarterly Report on Form 10-Q shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be deemed part of a registration statement, prospectus or other document filed under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filings.

16

EX-10.1

Exhibit 10.1

DATED 23 January 2012

(1) ANDREW BIRNIE AND OTHERS

(2) TOTAL CAPITAL FINANCE LIMITED

(3) R & D SYSTEMS EUROPE LIMITED

(4) RESEARCH & DIAGNOSTIC SYSTEMS, INC

DEED OF ASSIGNMENT AND NOVATION

in connection with a share purchase agreement

relating to Tocris Holdings Limited

Cobbetts LLP

No.1 Whitehall Riverside

Leeds

LS1 4BN

Tel: +44 (0)161 833 3333

MJZD/TE274-2

CONTENTS

Clause	Page
1             DEFINITIONS AND INTERPRETATION		1
2             ASSIGNMENT, TRANSFER AND NOVATION		2
3             FURTHER ASSURANCE		2
4             OTHER PROVISIONS		3
THE SCHEDULE		4

THIS DEED IS MADE ON 23 JANUARY 2012

BETWEEN:

(1) THE SEVERAL PERSONS whose names and addresses are set out in the Schedule (together the “Sellers”); and

(2) TOTAL CAPITAL FINANCE LIMITED (incorporated and registered in England and Wales with company number 5984100) whose registered office is at 1 Princes Street, London EC2R 8PB (“TCF”);

(3) R&D SYSTEMS EUROPE LIMITED (incorporated and registered in England and Wales with company number 2490104) whose registered office is at 19 Barton Lane, Abingdon Science Park, Abingdon, Oxfordshire, OX14 3NB (“RDSEL”); and

(4) RESEARCH AND DIAGNOSTIC SYSTEMS, INC a corporation incorporated in Minnesota and whose registered office is at 614 McKinley Place NE, Minneapolis, MN 55413 (“RDSI”).

BACKGROUND

1 The Sellers, TCF, RDSEL and RDSI entered into a share purchase agreement on 28 April 2011 (the “Agreement”) pursuant to which the Sellers and TCF sold and RDSEL and RDSI acquired the entire issued share capital of Tocris Holdings Limited (incorporated in England and Wales with number 6008610 (the “Company”)). Under the Agreement, certain of the Sellers gave, inter alia, warranties relating to the Company and its subsidiary undertakings to each of RDSEL and RDSI.

2 On 30 June 2011:

2.1 the entire issued share capital of Tocris Cookson, Inc (incorporated in Delaware with number 2485172 (“Tocris US”)) was transferred:

(a) from Tocris Cookson Limited (incorporated in England and Wales with number 2869577 (“TCL”)) to Tocris Investments Limited (incorporated in England and Wales with number 7013194 (“TCI”)) by way of a dividend in specie declared by TCL; and, subsequently

(b) from TCI to the Company by way of a dividend in specie declared by TCI;

and so that, following such transfers, the entire issued share capital of Tocris US was held by the Company; and

2.2 an intra-group share purchase agreement dated 30 June 2011 (the “Intra-Group Agreement”) was entered into between the Company and RDSI pursuant to which the Company sold and RDSI acquired the entire issued share capital of Tocris US.

3 The parties to this deed have agreed that, on and subject to the terms of this deed:

3.1 certain of RDSI’s rights under the Agreement shall be assigned and transferred to RDSEL; and

3.2 certain of RDSEL’s rights under the Agreement shall be assigned and transferred to RDSI.

IT IS AGREED AS FOLLOWS:

1 DEFINITIONS AND INTERPRETATION

1.1 Unless the context requires otherwise:

1.1.1 words and expressions defined in the Agreement shall have the same meaning in this deed; and

1.1.2 the principles of interpretation set out in Clause 1 of the Agreement shall apply in this deed.

1.2 In this deed, the following words and expressions shall have the meaning defined in this Clause 1.2 of this deed:

            RDSEL Rights the rights and interest of RDSEL under the Warranties, the warranties in Clause 10 of the Agreement, the indemnities in Clause 11 of the Agreement and the Tax Covenant, in each case, to the extent the same relate to Tocris US and/or any of the business, assets, undertaking, officers and employees of Tocris US; and

            RDSI Rights the rights and interest of RDSI under the Warranties, the warranties in Clause 10 of the Agreement, the indemnities in Clause 11 of the Agreement and the Tax Covenant, in each case, to the extent the same relate to the Company, TCI and/or TCL and/or any of the business, assets, undertaking, officers and employees of any of the Company, TCI and TCL.

1.3 For the purposes of the definition of “Transaction Documents” in the Agreement, this deed shall be deemed to be a Transaction Document and the Agreement shall be varied accordingly.

2 ASSIGNMENT, TRANSFER AND NOVATION

2.1 In accordance with Clause 13 of the Agreement and Clause 6.12 of the Agreement:

2.1.1 RDSI assigns to RDSEL all its rights, title, interest, and benefit in and to the RDSI Rights; and

2.1.2 RDSEL assigns to RDSI all its rights, title, interest, and benefit in and to the RDSEL Rights.

2.2 This deed constitutes notice of the assignments made pursuant to Clause 2.1 of this deed to the Sellers’ Representative, the Sellers and TCF and acknowledgment by each of such persons of such notice of assignment is given by the execution of this deed by or on behalf of each of such persons.

2.3 Without prejudice to the assignments in Clause 2.1 of this deed, each of the parties to this deed acknowledges and agrees that:

2.3.1 RDSI shall have transferred to RDSEL all of the RDSI Rights including, without limitation, all rights in respect of and to pursue a Relevant Claim in relation to any of the RDSI Rights and to recover all losses suffered or incurred by any member of the Buyers’ Group in respect of the same and that RDSEL shall enjoy all the rights and benefits of RDSI in respect of the RDSI Rights as if it was named in the Agreement as having the benefit of the RDSI Rights in place of RDSI;

2.3.2 RDSEL shall have transferred to RDSI all of the RDSEL Rights including, without limitation, all rights in respect of and to pursue a Relevant Claim in relation to any of the RDSEL Rights and to recover all losses suffered or incurred by any member of the Buyers’ Group in respect of the same and that RDSI shall enjoy all the rights and benefits of RDSEL in respect of the RDSEL Rights as if it was named in the Agreement as having the benefit of the RDSEL Rights in place of RDSEL.

2.4 Each of the Sellers and TCF agrees to continue to perform the Agreement and be bound by its terms in every way and as if:

2.4.1 RDSEL was always entitled under the original terms of the Agreement to the RDSI Rights in place of RDSI; and

2.4.2 RDSI was always entitled under the original terms of the Agreement to the RDSEL Rights in place of RDSEL.

3 FURTHER ASSURANCE

Each party to this deed shall do, or procure the doing of, all acts and things, and execute or procure the execution of, all documents and deeds, as may reasonably be required by RDSI and/or RDSEL to give full effect to this deed and/or to ensure that RDSEL obtains the full benefit of the RDSI Rights and that RDSI obtains the full benefit of the RDSEL Rights, in each case, in accordance with the terms of this deed.

4 SEVERANCE

4.1 If any provision of this deed (or part of any provision of this deed) is found by any court or administrative body of competent jurisdiction to be invalid, unenforceable or illegal, all other provisions of this deed (and parts of provisions of this deed) shall not be affected and shall remain in force and effective.

4.2 If any invalid, unenforceable or illegal provision of this deed would be valid, enforceable or legal if some part of it were deleted, that provision shall apply with whatever modification is necessary to give effect to the commercial intention of the parties to this deed.

5 OTHER PROVISIONS

The provisions of Clauses 9 (Announcements), 13 (Assignment), 14 (Whole Agreement), 15 (Variation and Waiver), 16 (Costs), 17 (Sellers’ Representative), 18 (Buyers’ Representative), 19 (Notices), 21 (Agreement Survives Completion), 22 (Third Party Rights). 23 (Limitation Act 1980), 24 (Successors), 25 (Counterparts), 26 (Governing Law and Jurisdiction) of the Agreement shall apply mutatis mutandis to this deed.

This document has been executed as a deed and is delivered and takes effect on the date stated at the beginning of it.

THE SCHEDULE

NAME	ADDRESS
Graham Miller	Fosseway Lodge Fosseway Lodge Fosse Lane Bath BA1 7JS
Andrew Birnie	Ashburnham 69 Coombe Lane Stoke Bishop Bristol BS9 2AZ
Jennifer Birnie	Ashburnham 69 Coombe Lane Stoke Bishop Bristol BS9 2AZ
Richard Morley	31 Ffordd y Capel Efail Isaf Pontypridd CF38 1AP
Rhod Samuel	127 Roundways Coalpit Heath Bristol BS36 2LU
Graham Marsh	21 Gauntlet Road Brockworth Gloucester GL3 4EB
Sophie Newton	65 Cumbria Close Thornbury BS35 2YF
Stewart Read	Knole Close Almondsbury Bristol BS32 4EJ

Adele Sheehan	First Floor Flat 60 Lower Redland Road Bristol BS6 6SS
Natalie Harker	54 Parliament Street Chippenham SN14 0DE
Julian Wherlock	8 Broadfield Road Knowle Bristol BS4 2UQ
Tina Humphries	Waterslade Kites Croft Westbury-sub-Mendip BA5 1HU
Mark Cooper	16 Nightingale Rise Portishead Bristol BS20 8LN
Pierre Lacrouts	15 Northend Batheaston Bath BA1 7EE
Justin Cowell	Sunnybank Stowell Hill Road Tytherington GL12 8UH
Robert Felix	36 West View Road Bristol BS3 3JJ
Stephen Raynolds	33 Napier Road Bath BA1 4LN
Didier Bruyere	12 Station Road Ashley Down Bristol BS7 9LB
Louise Argent	52 The Glebe Wrington Bristol BS40 5LX

Burhan Karadogan	31 Ffordd y Capel Efail Isaf Pontypridd CF38 1AP
Elsa Crawford	47A Park Road Congresbury Bristol BS49 5HJ
Karl Swift	30 Chasewood Corner Chalford Stroud GL6 8JS
Kim Swift	30 Chasewood Corner Chalford Stroud GL6 8JS
Sarah Edwards	44 Clarkson Avenue Milton West super Mare BS22 8EJ
David Peters	12 Nightingale Rise Portishead Bristol BS20 8LN
Catherine Peters	12 Nightingale Rise Portishead Bristol BS20 8LN
Esmond Jones	36 Westmead Crescent Trowbridge Bath BA1 0LY
Duncan Crawford	47A Park Road Congresbury Bristol BS49 5HJ
Laurence Ede	41 High Bannerdown Bath BA1 7JZ

Hazel Ede	41 High Bannerdown Bath BA1 7JZ
Anthony Kenny	30 Druid Stoke Avenue Bristol BS9 1DD
Robert Crews	34 Old Sneed Park Bristol BS9 1RF
Joanne Clarke	Fosseway Lodge Fosse Lane Bath BA1 7JS
Jennie Williams	90 St Mary’s Road Shirehampton BS11 9PF
Ruth Cuffe	Steepyfields, Shirehampton Bristol BS11 0DR
Janice Beale	92 Stockwood Road Stockwood Bristol BS14 8JE

SIGNED by R&D SYSTEMS EUROPE LIMITED acting by a director in the presence of
		Thomas E. Oland
		Director
WITNESS:
Signature:	Frank Mortari
Address:	614 Mckinley Place N.E.
	Minneapolis, MN 55413
	USA
Occupation:	Dir. Of Business Development

SIGNED by RESEARCH AND DIAGNOSTIC SYSTEMS, INC acting by a director in the presence of:
		Gregory J. Melsen
		Director
WITNESS:
Signature:	Frank Mortari
Address:	614 Mckinley Place N.E.
	Minneapolis, MN 55413
	USA
Occupation:	Dir. of Business Development

SIGNED (but not delivered until the date hereof) as a DEED by TOTAL CAPITAL FINANCE LIMITED acting by a director in the presence of:
		Lee Morse
		Director
WITNESS:
Signature:
Name (in block capitals)	STEPHEN BRENIER
Address:	C/O 280 Bishopsgate
	London
	EC2m 4RB
Occupation:	Banker

SIGNED (but not delivered until the date hereof) as a DEED by LAURENCE EDE in the presence of:
		Laurence Ede
		Laurence Ede
WITNESS:
Signature:	DAVID FERRIS
Address:	2 Temple Back East
	Temple Quay
	Bristol, BS1 GEG
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by GRAHAM MILLER acting by his duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by ANDREW BIRNIE acting by his duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by JENNIFER BIRNIE acting by her duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by RICHARD MORLEY acting by his duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by RHOD SAMUEL acting by his duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by GRAHAM MARSH acting by his duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by SOPHIE NEWTON acting by her duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by STEWART READ acting by his duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by ADELE SHEEHAN acting by her duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by NATALIE HARKER acting by her duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by JULIAN WHERLOCK acting by his duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by TINA HUMPHRIES acting by her duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by MARK COOPER acting by his duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by PIERRE LACROUTS acting by his duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by JUSTIN COWELL acting by his duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by ROBERT FELIX acting by his duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by STEPHEN REYNOLDS acting by his duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by DIDIER BRUYERE acting by his duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by LOUISE ARGENT acting by her duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by BURHAN KARADOGAN acting by his duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by ELSA CRAWFORD acting by her duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by KARL SWIFT acting by his duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by KIM SWIFT acting by her duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by SARAH EDWARDS acting by her duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by DAVID PETERS acting by his duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by CATHERINE PETERS acting by her duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by ESMOND JONES acting by his duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by DUNCAN CRAWFORD acting by his duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by HAZEL EDE acting by her duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by ANTHONY KENNY acting by his duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by ROBERT CREWS acting by his duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by JOANNE CLARKE acting by her duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by JENNIE WILLIAMS acting by her duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by RUTH CUFFE acting by her duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

SIGNED (but not delivered until the date hereof) as a DEED by JANICE BEALE acting by her duly appointed and authorised attorney and representative, Laurence Ede, in the presence of:
		Laurence Ede
		Attorney
WITNESS:
Signature:	DAVID FERRIS
Address:	As Above
Occupation:	Solicitor

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Thomas E. Oland, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Techne Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonable likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 7, 2012

/s/ Thomas E. Oland                    

Thomas E. Oland

Chief Executive Officer

EX-31.2

CERTIFICATION

I, Gregory J. Melsen, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Techne Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting

principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonable likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 7, 2012

/s/ Gregory J. Melsen                

Gregory J. Melsen

Chief Financial Officer

EX-32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Techne Corporation (the “Company”) On Form 10-Q for the quarter ended December 31, 2011 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas E. Oland, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15 (d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Thomas E. Oland

Chief Executive Officer

February 7, 2012

EX-32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Techne Corporation (the “Company”) On Form 10-Q for the quarter ended December 31, 2011 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Gregory J. Melsen,Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15 (d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Gregory J. Melsen

Chief Financial Officer

February 7, 2012

XML

Financial Information Relating to Reportable Segments (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011	Dec. 31, 2010
Segment Reporting Information [Line Items]
External sales	$ 74,662	$ 67,708	$ 152,258	$ 135,653
Earnings before income taxes	37,873	37,673	78,373	76,626
Biotechnology
Segment Reporting Information [Line Items]
External sales	69,808	63,080	142,111	126,121
Earnings before income taxes	37,878	37,953	77,862	76,413
Hematology
Segment Reporting Information [Line Items]
External sales	4,854	4,628	10,147	9,532
Earnings before income taxes	1,681	1,427	3,599	3,349
Reportable Segment
Segment Reporting Information [Line Items]
Earnings before income taxes	39,559	39,380	81,461	79,762
Unallocated Amount to Segment
Segment Reporting Information [Line Items]
Earnings before income taxes	$ (1,686)	$ (1,707)	$ (3,088)	$ (3,136)

XML

Property and Equipment (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Jun. 30, 2011
Cost:
Land	$ 7,461	$ 7,497
Buildings and improvements	121,591	119,833
Laboratory equipment	30,999	30,315
Office equipment	5,614	5,407
Property, Plant and Equipment, Gross, Total	165,665	163,052
Accumulated depreciation and amortization	71,061	67,654
Property and equipment, net	$ 94,604	$ 95,398

XML

Property and equipment

6 Months Ended

Dec. 31, 2011

Property and equipment

D. Property and equipment:

Property and equipment consist of (in thousands):

	December 31,		June 30,
	2011		2011
Cost:
Land	$	7,461	$	7,497
Buildings and improvements		121,591		119,833
Laboratory equipment		30,999		30,315
Office equipment		5,614		5,407
		165,665		163,052
Accumulated depreciation and amortization		71,061		67,654
	$	94,604	$	95,398

XML

Assumptions Used in Black-Scholes Option-Pricing Model (Detail)	3 Months Ended		6 Months Ended
	Dec. 31, 2011 Year	Dec. 31, 2010 Year	Dec. 31, 2011 Year	Dec. 31, 2010 Year
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	1.60%	1.80%	1.50%	1.80%
Expected annualized volatility	22.00%	27.00%
Expected annualized volatility, minimum			22.00%	22.00%
Expected annualized volatility, maximum			23.00%	27.00%
Risk free interest rate	1.90%	2.00%
Risk free interest rate, minimum			1.40%	1.30%
Risk free interest rate, maximum			1.90%	2.00%
Expected life	7	7	6	7

XML

Stock Option Activity (Detail) (USD $) In Millions, except Share data in Thousands, unless otherwise specified	6 Months Ended
	Dec. 31, 2011 Year
Shares
Outstanding at June 30, 2011	499
Granted	65
Exercised	(1)
Outstanding at December 31, 2011	563
Exercisable at December 31, 2011	354
Weighted Average Exercise Price
Outstanding at June 30, 2011	$ 64.15
Granted	$ 72.59
Exercised	$ 39.93
Outstanding at December 31, 2011	$ 65.18
Exercisable at December 31, 2011	$ 60.43
Weighted Average Contractual Life (Yrs.)
Outstanding at December 31, 2011	6.1
Exercisable at December 31, 2011	6.1
Aggregate Intrinsic Value
Outstanding at December 31, 2011	$ 3.0
Exercisable at December 31, 2011	$ 2.9

XML

Share-based compensation - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011 Year	Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average fair value of options granted during the period	$ 15.68	$ 15.70	$ 14.90	$ 15.02
Total intrinsic value of options exercised	$ 0	$ 1,500,000	$ 34,000	$ 1,800,000
Total fair value of options vested	627,000	628,000	698,000	677,000
Stock-based compensation cost	858,000	714,000	1,148,000	850,000
Total unrecognized compensation cost related to non-vested stock options	$ 2,300,000		$ 2,300,000
Weighted average period over which the compensation cost is expected to be recognized			1.4

XML

Shares Used in Earnings Per Share Computations (Detail) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011	Dec. 31, 2010
Earnings Per Share Disclosure [Line Items]
Weighted average common shares outstanding-basic	36,966	37,093	37,030	37,066
Dilutive effect of stock options	62	63	69	65
Weighted average common shares outstanding-diluted	37,028	37,156	37,099	37,131

XML

Inventories

6 Months Ended

Dec. 31, 2011

Inventories

C. Inventories:

Inventories consist of (in thousands):

	December 31,		June 30,
	2011		2011
Raw materials	$	5,455	$	5,644
Finished goods		35,523		39,262
	$	40,978	$	44,906

XML

Earnings per share - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011	Dec. 31, 2010
Earnings Per Share Disclosure [Line Items]
Number of potentially dilutive stock option and warrants excluded from the calculation of earnings per share	238,000	71,000	192,000	90,000

XML

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011	Dec. 31, 2010
Net sales	$ 74,662	$ 67,708	$ 152,258	$ 135,653
Cost of sales	19,492	15,327	38,701	30,677
Gross margin	55,170	52,381	113,557	104,976
Operating expenses:
Selling, general and administrative	10,651	8,427	21,424	16,040
Research and development	6,837	6,603	13,504	13,222
Total operating expenses	17,488	15,030	34,928	29,262
Operating income	37,682	37,351	78,629	75,714
Other income (expense):
Interest income	798	1,020	1,526	1,867
Other non-operating expense, net	(607)	(698)	(1,782)	(955)
Total other income (expense)	191	322	(256)	912
Earnings before income taxes	37,873	37,673	78,373	76,626
Income taxes	12,060	11,139	25,039	23,719
Net earnings	$ 25,813	$ 26,534	$ 53,334	$ 52,907
Earnings per share:
Basic	$ 0.70	$ 0.72	$ 1.44	$ 1.43
Diluted	$ 0.70	$ 0.71	$ 1.44	$ 1.42
Cash dividends per common share:	$ 0.28	$ 0.27	$ 0.55	$ 0.53
Weighted average common shares outstanding:
Basic	36,966	37,093	37,030	37,066
Diluted	37,028	37,156	37,099	37,131

XML

Basis of presentation

6 Months Ended

Dec. 31, 2011

Basis of presentation

A. Basis of presentation:

The interim unaudited condensed consolidated financial statements of Techne Corporation and Subsidiaries (the Company) have been prepared in accordance with accounting principles generally accepted in the United States of America and with instructions to Form 10-Q and Article 10 of Regulation S-X. The accompanying interim unaudited condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. All such adjustments are of a normal recurring nature.

A summary of significant accounting policies followed by the Company is detailed in the Company’s Annual Report on Form 10-K for fiscal 2011. The Company follows these policies in preparation of the interim unaudited condensed consolidated financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Consolidated Financial Statements and Notes thereto for the fiscal year ended June 30, 2011, included in the Company’s Annual Report on Form 10-K for fiscal 2011.

Certain reclassifications have been made to prior years’ Condensed Consolidated Financial Statements to conform to the current year presentation. The Company reclassified prior years’ amortization expense as appropriate based upon the nature of the related intangible asset to cost of sales or selling, general and administrative expense. These reclassifications had no impact on net earnings or shareholders’ equity as previously reported.

XML

Accumulated Other Comprehensive (Loss) Income (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Jun. 30, 2011
Accumulated Other Comprehensive Income (Loss) [Line Items]
Foreign currency translation adjustments	$ (21,545)	$ (16,939)
Net unrealized gain on available-for-sale investments, net of tax	641	648
Accumulated other comprehensive loss	$ (20,904)	$ (16,291)

XML

Comprehensive income (Tables)

6 Months Ended

Dec. 31, 2011

Comprehensive Income (Loss)

Comprehensive income was as follows (in thousands):

	Quarter Ended December 31,						Six Months Ended December 31,
	2011			2010			2011			2010
Net earnings	$	25,813		$	26,534		$	53,334		$	52,907
Foreign currency translation adjustments		(705	)		(1,378	)		(4,606	)		2,521
Unrealized gain (loss) on available-for-sale investments, net of tax		21			(381	)		(7	)		(337	)
	$	25,129		$	24,775		$	48,721		$	55,091

Accumulated Other Comprehensive (Loss) Income

Accumulated other comprehensive (loss) income consists of (in thousands):

	December 31, 2011			June 30, 2011
Foreign currency translation adjustments	$	(21,545	)	$	(16,939	)
Net unrealized gain on available-for-sale investments, net of tax		641			648
	$	(20,904	)	$	(16,291	)

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Inventories (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Jun. 30, 2011
Schedule of Inventory [Line Items]
Raw materials	$ 5,455	$ 5,644
Finished goods	35,523	39,262
Inventories	$ 40,978	$ 44,906

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Available-for-sale investments

6 Months Ended

Dec. 31, 2011

Available-for-sale investments

B. Available-for-sale investments:

Included in “Long-term available-for-sale investments” at December 31, 2011 is a $10 million loan receivable from ChemoCentryx, Inc. (CCX), one of the Company’s equity investees. The loan bears interest at 5% with interest due annually until maturity on September 30, 2021. The loan agreement contains a number of conversion features contingent upon CCX obtaining future debt or equity financing. In addition, the agreement includes a $5 million commitment by the Company to participate in a private placement in the event of a successful public offering of CCX shares. The loan is carried at fair value based on the Company’s assessment (Level 3 input) using an internal cash flow valuation that incorporated contractual terms, maturity, timing and amount of future cash flows, as well as assumptions about liquidity. There was no change in the fair value of the investment for the quarter or six month periods ended December 31, 2011.

The Company’s remaining available-for-sale investments at December 31, 2011 are carried at fair value and are valued using quoted market prices in active markets (Level 1 input) for identical assets and liabilities.

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Jun. 30, 2011
Current assets:
Cash and cash equivalents	$ 80,994	$ 77,613
Short-term available-for-sale investments	56,758	63,200
Trade accounts receivable, less allowance for doubtful accounts of $450 and $448, respectively	32,351	35,914
Other receivables	2,194	1,946
Inventories	40,978	44,906
Deferred income taxes	12,921	5,797
Prepaid expenses	1,020	1,041
Total current assets	227,216	230,417
Available-for-sale investments	148,114	131,988
Property and equipment, net	94,604	95,398
Goodwill	85,240	86,633
Intangible assets, net	48,679	52,282
Investments in unconsolidated entities	19,176	19,633
Other assets	1,219	1,319
Assets, Total	624,248	617,670
Current liabilities:
Trade accounts payable	5,914	5,207
Salaries, wages and related accruals	3,764	4,784
Accrued expenses	3,478	2,688
Income taxes payable	967	5,509
Total current liabilities	14,123	18,188
Deferred income taxes	12,619	13,360
Shareholders' equity:
Common stock, par value $.01 per share; authorized 100,000,000; issued and outstanding 36,891,490 and 37,153,398, respectively	369	371
Additional paid-in capital	130,517	129,312
Retained earnings	487,524	472,730
Accumulated other comprehensive loss	(20,904)	(16,291)
Total shareholders' equity	597,506	586,122
Liabilities and Equity, Total	$ 624,248	$ 617,670

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Property and equipment (Tables)

6 Months Ended

Dec. 31, 2011

Property and Equipment

Property and equipment consist of (in thousands):

	December 31,		June 30,
	2011		2011
Cost:
Land	$	7,461	$	7,497
Buildings and improvements		121,591		119,833
Laboratory equipment		30,999		30,315
Office equipment		5,614		5,407
		165,665		163,052
Accumulated depreciation and amortization		71,061		67,654
	$	94,604	$	95,398

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Document and Entity Information	6 Months Ended
	Dec. 31, 2011	Jan. 31, 2012
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2011
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Trading Symbol	TECH
Entity Registrant Name	TECHNE CORP /MN/
Entity Central Index Key	0000842023
Current Fiscal Year End Date	--06-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		36,862,507

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Intangible assets and goodwill (Tables)

6 Months Ended

Dec. 31, 2011

Intangible Assets

Intangible assets consist of (in thousands):

	December 31,		June 30,
	2011		2011
Developed technology	$	29,162	$	29,943
Trade names		17,802		18,021
Customer relationships		8,679		8,781
Non-compete agreement		400		400
		56,043		57,145
Accumulated amortization		7,364		4,863
	$	48,679	$	52,282

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 31, 2011	Jun. 30, 2011
Trade accounts receivable, allowance for doubtful accounts	$ 450	$ 448
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	36,891,490	37,153,398
Common stock, shares outstanding	36,891,490	37,153,398

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Earnings per share

6 Months Ended

Dec. 31, 2011

Earnings per share

G. Earnings per share:

Shares used in the earnings per share computations are as follows (in thousands):

	Quarter Ended December 31,				Six Months Ended December 31,
	2011		2010		2011		2010
Weighted average common shares outstanding-basic		36,966		37,093		37,030		37,066
Dilutive effect of stock options		62		63		69		65
Weighted average common shares outstanding-diluted		37,028		37,156		37,099		37,131

The dilutive effect of stock options in the above table excludes all options for which the aggregate exercise proceeds exceeded the average market price for the period. The number of potentially dilutive option shares excluded from the calculation was 238,000 and 192,000 for the quarter and six months ended December 31, 2011, respectively, and 71,000 and 90,000 for the quarter and six months ended December 31, 2010, respectively.

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Share-based compensation

6 Months Ended

Dec. 31, 2011

Share-based compensation

F. Share-based compensation:

Option activity under the Company’s stock option plans during the six months ended December 31, 2011 was as follows:

	Shares (in  thousands)			Weighted Average Exercise Price		Weighted Average Contractual Life (Yrs.)		Aggregate Intrinsic Value
Outstanding at June 30, 2011		499		$	64.15
Granted		65		$	72.59
Exercised		(1	)	$	39.93
Outstanding at December 31, 2011		563		$	65.18		6.1	$	3.0 million
Exercisable at December 31, 2011		354		$	60.43		6.1	$	2.9 million

The fair value of options granted under the Company’s stock option plans was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions used:

	Quarter Ended December 31,				Six Months  Ended December 31,
	2011		2010		2011		2010
Dividend yield		1.6%		1.8%		1.5%		1.8%
Expected annualized volatility		22%		27%		22%-23%		22%-27%
Risk free interest rate		1.9%		2.0%		1.4%-1.9%		1.3%-2.0%
Expected life		7 years		7 years		6 years		7 years

The dividend yield is based on the Company’s historical annual cash dividend divided by the market value of the Company’s Common Stock. The expected annualized volatility is based on the Company’s historical stock price over a period equivalent to the expected life of the option granted. The risk-free interest rate is based on U.S. Treasury constant maturity interest rates with a term consistent with the expected life of the options granted. Separate groups of employees that have similar historical exercise behavior with regard to option exercise timing and forfeiture rates are considered separately in determining option fair value.

The weighted average per share fair value of options granted during the quarter and six months ended December 31, 2011 was $15.68 and $14.90, respectively. The weighted average per share fair value of options granted during the quarter and six months ended December 31, 2010 was $15.70 and $15.02, respectively. The total intrinsic value of options exercised during the six months ended December 31, 2011 was $34,000. No options were exercised during the quarter ended December 31, 2011. The total intrinsic value of options exercised during the quarter and six months ended December 31, 2010 was $1.5 million and $1.8 million, respectively. The total fair value of options vested during the quarter and six months ended December 31, 2011 was $627,000 and $698,000, respectively. The total fair value of options vested during the quarter and six months ended December 31, 2010 was $628,000 and $677,000, respectively.

Stock-based compensation cost of $858,000 and $1.1 million was included in selling, general and administrative expense for the quarter and six months ended December 31, 2011, respectively. Stock-based compensation cost of $714,000 and $850,000 was included in selling, general and administrative expense for the quarter and six months ended December 31, 2010, respectively. Compensation cost is recognized using a straight-line method over the vesting period and is net of estimated forfeitures. As of December 31, 2011, there was $2.3 million of total unrecognized compensation cost related to non-vested stock options. The weighted average period over which the compensation cost is expected to be recognized is 1.4 years.

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Available-for-sale investments - Additional Information (Detail) (Available for sale Securities Non Current, Chemo Centryx, Inc., USD $) In Millions, unless otherwise specified	6 Months Ended
	Dec. 31, 2011
Available for sale Securities Non Current | Chemo Centryx, Inc.
Schedule of Available-for-sale Securities [Line Items]
Notes Receivable	$ 10
Notes Receivable Interest Rate	5.00%
Notes Receivable, Maturity Date	Sep. 30, 2021
Commitment to participate in private placement of CCX shares	$ 5

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Share-based compensation (Tables)

6 Months Ended

Dec. 31, 2011

Stock Option Activity

Option activity under the Company’s stock option plans during the six months ended December 31, 2011 was as follows:

	Shares (in  thousands)			Weighted Average Exercise Price		Weighted Average Contractual Life (Yrs.)		Aggregate Intrinsic Value
Outstanding at June 30, 2011		499		$	64.15
Granted		65		$	72.59
Exercised		(1	)	$	39.93
Outstanding at December 31, 2011		563		$	65.18		6.1	$	3.0 million
Exercisable at December 31, 2011		354		$	60.43		6.1	$	2.9 million

Assumptions Used in Black-Scholes Option-Pricing Model

The fair value of options granted under the Company’s stock option plans was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions used:

	Quarter Ended December 31,				Six Months  Ended December 31,
	2011		2010		2011		2010
Dividend yield		1.6%		1.8%		1.5%		1.8%
Expected annualized volatility		22%		27%		22%-23%		22%-27%
Risk free interest rate		1.9%		2.0%		1.4%-1.9%		1.3%-2.0%
Expected life		7 years		7 years		6 years		7 years

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Recent accounting pronouncements

6 Months Ended

Dec. 31, 2011

Recent accounting pronouncements

J. Recent accounting pronouncements:

In June 2011, the FASB issued Accounting Standards Update (ASU) No. 2011-05 Comprehensive Income under an amendment to Topic 220. Under this update, an entity has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. ASU No. 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders’ equity. The update does not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. The Company must comply with ASU No. 2011-05 for the quarter ended September 30, 2012. The Company does not believe this update will have a material impact on the Company’s consolidated financial statements.

In September 2011, the FASB issued ASU No. 2011-08 Intangibles – Goodwill and Other under an amendment to Topic 350, which permits an entity to make a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the two-step goodwill impairment test. If an entity concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, it would not be required to perform the two-step impairment test for that reporting unit. The update is effective for the Company for annual and interim goodwill impairment tests for fiscal 2013. Early adoption is permitted. The Company does not believe this update will have a material impact on the Company’s consolidated financial statements.

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Segment information

6 Months Ended

Dec. 31, 2011

Segment information

H. Segment information:

The Company has two reportable segments based on the nature of products: biotechnology and hematology. Following is financial information relating to the Company’s reportable segments (in thousands):

	Quarter Ended December 31,						Six Months Ended December 31,
	2011			2010			2011			2010
External sales
Biotechnology	$	69,808		$	63,080		$	142,111		$	126,121
Hematology		4,854			4,628			10,147			9,532
Consolidated net sales	$	74,662		$	67,708		$	152,258		$	135,653
Earnings before income taxes
Biotechnology	$	37,878		$	37,953		$	77,862		$	76,413
Hematology		1,681			1,427			3,599			3,349
Segment earnings before income taxes		39,559			39,380			81,461			79,762
Unallocated corporate expenses and equity method investee losses		(1,686	)		(1,707	)		(3,088	)		(3,136	)
Consolidated earnings before income taxes	$	37,873		$	37,673		$	78,373		$	76,626

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Comprehensive income

6 Months Ended

Dec. 31, 2011

Comprehensive income

I. Comprehensive income:

Comprehensive income was as follows (in thousands):

	Quarter Ended December 31,						Six Months Ended December 31,
	2011			2010			2011			2010
Net earnings	$	25,813		$	26,534		$	53,334		$	52,907
Foreign currency translation adjustments		(705	)		(1,378	)		(4,606	)		2,521
Unrealized gain (loss) on available-for-sale investments, net of tax		21			(381	)		(7	)		(337	)
	$	25,129		$	24,775		$	48,721		$	55,091

Accumulated other comprehensive (loss) income consists of (in thousands):

	December 31, 2011			June 30, 2011
Foreign currency translation adjustments	$	(21,545	)	$	(16,939	)
Net unrealized gain on available-for-sale investments, net of tax		641			648
	$	(20,904	)	$	(16,291	)

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Inventories (Tables)

6 Months Ended

Dec. 31, 2011

Inventories

Inventories consist of (in thousands):

	December 31,		June 30,
	2011		2011
Raw materials	$	5,455	$	5,644
Finished goods		35,523		39,262
	$	40,978	$	44,906

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Comprehensive Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011	Dec. 31, 2010
Net earnings	$ 25,813	$ 26,534	$ 53,334	$ 52,907
Foreign currency translation adjustments	(705)	(1,378)	(4,606)	2,521
Unrealized gain (loss) on available-for-sale investments, net of tax	21	(381)	(7)	(337)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent, Total	$ 25,129	$ 24,775	$ 48,721	$ 55,091

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Segment information (Tables)

6 Months Ended

Dec. 31, 2011

Financial Information Relating to Reportable Segments

Following is financial information relating to the Company’s reportable segments (in thousands):

	Quarter Ended December 31,						Six Months Ended December 31,
	2011			2010			2011			2010
External sales
Biotechnology	$	69,808		$	63,080		$	142,111		$	126,121
Hematology		4,854			4,628			10,147			9,532
Consolidated net sales	$	74,662		$	67,708		$	152,258		$	135,653
Earnings before income taxes
Biotechnology	$	37,878		$	37,953		$	77,862		$	76,413
Hematology		1,681			1,427			3,599			3,349
Segment earnings before income taxes		39,559			39,380			81,461			79,762
Unallocated corporate expenses and equity method investee losses		(1,686	)		(1,707	)		(3,088	)		(3,136	)
Consolidated earnings before income taxes	$	37,873		$	37,673		$	78,373		$	76,626

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Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Jun. 30, 2011
Finite-Lived Intangible Assets [Line Items]
Developed technology	$ 29,162	$ 29,943
Trade names	17,802	18,021
Customer relationships	8,679	8,781
Non-compete agreement	400	400
Finite-Lived Intangible Assets, Gross, Total	56,043	57,145
Accumulated amortization	7,364	4,863
Intangible assets, net	$ 48,679	$ 52,282

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 53,334,000	$ 52,907,000
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	6,314,000	4,058,000
Costs recognized on sale of acquired inventory	3,915,000	0
Deferred income taxes	(7,472,000)	1,355,000
Stock-based compensation expense	1,148,000	850,000
Excess tax benefit from stock option exercises	(13,000)	(413,000)
Losses by equity method investees	415,000	547,000
Other	108,000	183,000
Change in operating assets and operating liabilities:
Trade accounts and other receivables	1,263,000	1,159,000
Inventories	(929,000)	(234,000)
Prepaid expenses	7,000	27,000
Trade accounts payable and accrued expenses	1,435,000	(842,000)
Salaries, wages and related accruals	(253,000)	(417,000)
Income taxes payable	(4,402,000)	956,000
Net cash provided by operating activities	54,870,000	60,136,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of available-for-sale investments	(84,043,000)	(80,589,000)
Proceeds from sales of available-for-sale investments	39,085,000	55,346,000
Proceeds from maturities of available-for-sale investments	36,935,000	24,432,000
Additions to property and equipment	(3,297,000)	(1,765,000)
Distribution from unconsolidated entity	42,000	0
Net cash used in investing activities	(11,278,000)	(2,576,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash dividends	(20,387,000)	(19,640,000)
Proceeds from stock option exercises	45,000	3,429,000
Excess tax benefit from stock option exercises	13,000	413,000
Purchase of common stock for stock bonus plans	(907,000)	(294,000)
Repurchase of common stock	(17,748,000)	(1,940,000)
Net cash used in financing activities	(38,984,000)	(18,032,000)
Effect of exchange rate changes on cash and cash equivalents	(1,227,000)	2,208,000
Net increase in cash and cash equivalents	3,381,000	41,736,000
Cash and cash equivalents at beginning of period	77,613,000	94,139,000
Cash and cash equivalents at end of period	$ 80,994,000	$ 135,875,000

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Intangible assets and goodwill

6 Months Ended

Dec. 31, 2011

Intangible assets and goodwill

E. Intangible assets and goodwill:

Intangible assets consist of (in thousands):

	December 31,		June 30,
	2011		2011
Developed technology	$	29,162	$	29,943
Trade names		17,802		18,021
Customer relationships		8,679		8,781
Non-compete agreement		400		400
		56,043		57,145
Accumulated amortization		7,364		4,863
	$	48,679	$	52,282

The change in the carrying amount of net intangible assets for the six months ended December 31, 2011 resulted from amortization expense and currency translation. Amortization expense related to technologies included in cost of sales was $749,000 and $1.5 million, respectively, for the quarter and six months ended December 31, 2011, and $110,000 and $219,000 for the quarter and six months ended December 31, 2010, respectively. Amortization expense related to trade names, customer relationships, and the non-compete agreement included in selling, general and administrative expense was $519,000 and $1.0 million for the quarter and six months ended December 31, 2011, respectively, and $61,000 and $122,000 for the quarter and six months ended December 31, 2010, respectively. The change in the carrying amount of goodwill for the six months ended December 31, 2011 resulted from currency translation.

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Intangible assets and goodwill - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011	Dec. 31, 2010
Developed Technology Rights | Cost of Sales
Finite-Lived Intangible Assets [Line Items]
Amortization expense of intangible assets	$ 749,000.0	$ 110,000.0	$ 1,500,000	$ 219,000.0
Trade Names Customer Relationships and Noncompete Agreement | Selling, General and Administrative Expense
Finite-Lived Intangible Assets [Line Items]
Amortization expense of intangible assets	$ 519,000.0	$ 61,000.0	$ 1,000,000	$ 122,000.0

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Earnings per share (Tables)

6 Months Ended

Dec. 31, 2011

Shares Used in the Earnings Per Share Computations

Shares used in the earnings per share computations are as follows (in thousands):

	Quarter Ended December 31,				Six Months Ended December 31,
	2011		2010		2011		2010
Weighted average common shares outstanding-basic		36,966		37,093		37,030		37,066
Dilutive effect of stock options		62		63		69		65
Weighted average common shares outstanding-diluted		37,028		37,156		37,099		37,131