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Techne Corporation Releases Unaudited Second Quarter Results for Fiscal Year 2011
Date:2/1/2011

to the same prior-year periods.  Approximately $1.2 million and $2.4 million of the decrease in R&D Europe gross margins, respectively, was the result of changes in exchange rates used to translate sales in foreign currencies into U.S. dollars. Approximately 15.0% and 6.4% of consolidated net sales for the six months ended December 31, 2010 were made in euro and British pound sterling, respectively.  The average euro exchange rate declined 8.8% and 8.3% against the U.S. dollar for the quarter and six months ended December 31, 2010 (euro:$1.34 and euro:$1.33) compared to the same prior-year periods (euro:$1.47 and euro:$1.45).  The average British pound sterling exchange rate declined 3.7% and 4.3% against the U.S. dollar for the quarter and six months ended December 31, 2010 (British pound sterling:$1.57 and British pound sterling:$1.56) compared to the same prior-year periods (British pound sterling:$1.63 and British pound sterling:$1.63).  Excluding the effect of the exchange rate on sales, gross margins for R&D Europe increased $605,000 and $62,000 for the quarter and six months ended December 31, 2010.  

The consolidated gross margin, as a percentage of net sales, was 77.5% for both the quarter and six months ended December 31, 2010, compared to 79.7% and 80.1% for the quarter and six months ended December 31, 2009, respectively. R&D Europe gross margin percentages for the quarter and six months ended December 31, 2010 were 51.2% and 49.4% compared to 53.9% and 53.7%.  The decrease was a result of the effect of exchange rate changes on net sales as discussed above. Biotechnology gross margin percentages were 77.8% and 78.1% for the quarter and six months ended December 31, 2010 compared to 80.0% and 80.5% for the quarter and six months ended December 31, 2009.  The decrease in the Biotechnology gross margin percentage was mainly the result of changes in product mix and $220,000 additional royalty expense and
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