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

royalty initiation fees related to new licensing agreements in the first quarter of fiscal 2011. Royalty initiation fees in the second quarter of fiscal 2011 were not material.

Selling, general and administrative expenses for the quarter and six months ended December 31, 2010 decreased $642,000 (7.1%) and $1.1 million (6.6%) from the quarter and six months ended December 31, 2009. The decrease in selling, general and administrative expense for the quarter and six months resulted primarily from decreased legal expenses, lower printing costs due to the timing of the printing of the annual Biotechnology catalog and the effect of the change in exchange rates used to convert foreign expenses to U.S. dollars.

Research and development expenses for the quarter and six months ended December 31, 2010 increased $212,000 (3.3%) and $677,000 (5.4%) from the quarter and six months ended December 31, 2009.  The increase in research and development expenses is mainly due to increases in personnel and supply costs associated with the continuous development and release of new high-quality biotechnology products.

The effective tax rate for the quarter and six months ended December 31, 2010 was 29.6% and 31.0% as compared to 32.6% for both of the same prior-year periods. The improvement in the effective tax rate in fiscal 2011 was the result of renewal of the U.S. research and development credit discussed above and an increase in the deduction for qualified production activities.  

Forward Looking Statements:

Our press releases may contain forward-looking statements within the meaning of the Private Litigation Reform Act. Such 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 biotechnology and hematology products, the levels and particula
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