Navigation Links
Techne Corporation Releases Unaudited First Quarter Fiscal Year 2012 Financial Results

MINNEAPOLIS, Oct. 25, 2011 /PRNewswire/ -- Techne Corporation's (NASDAQ: TECH) financial results for the quarter ended September 30, 2011 include the following highlights:

  • First quarter earnings were $27.5 million or $.74 per diluted share.  Adjusted earnings for the quarter grew 13.2% to $30.0 million or $.81 per diluted share after adjustment for intangible asset amortization and costs recognized upon the sale of inventory that was written-up to fair value as part of acquisitions completed in the quarter ended June 30, 2011.
  • Foreign exchange transaction losses for the quarter ended September 30, 2011 were $524,000 compared to foreign exchange transaction gains of $505,000 for the quarter ended September 30, 2010 causing a negative $.02 impact on comparable earnings per diluted share.
  • Net sales as reported grew 14.2% to $77.6 million for the quarter.  Organic sales grew 3.2% in the quarter.  

  • Consolidated net sales and earnings for the quarter ended September 30, 2011 were impacted by the acquisition of Boston Biochem, Inc. (Boston Biochem) on April 1, 2011 and Tocris Holdings Limited (Tocris) on April 28, 2011, including the cost recognized upon the sale of inventory that was written-up to fair value as part of the acquisitions and increased amortization of acquired intangible assets.  Consolidated net sales for the quarter ended September 30, 2011 includes $5.6 million of sales from the acquired companies.

    A weaker U.S. dollar as compared to foreign currencies improved sales by $1.9 million in the quarter ended September 30, 2011 from the comparable prior-year period.

    The Biotechnology segment includes sales made through R&D Systems' Biotechnology Division, R&D Systems Europe, Tocris, R&D Systems China, BiosPacific and Boston Biochem. Biotechnology net sales were $72.3 million, an increase of 14.7% from $63.0 million for the quarter ended September 30, 2010.  Biotechnology growth was 2.8% for the quarter ended September 30, 2011 if the sales from the acquisitions and foreign currency benefit are excluded.

    Customer sales growth for the Biotechnology segment, excluding sales from products of the acquired entities, from the same prior-year period include:Quarter EndedSeptember 30, 2011R&D Systems Biotechnology Division:Industrial, pharmaceutical  and biotechnology


    (2.5%)Pacific Rim distributors

    UnchangedR&D Europe:Reported

    11.6%In constant currency

    (0.7%)R&D China:Reported

    24.0%In constant currency

    14.1%Hematology net sales for the quarter ended September 30, 2011 were $5.3 million, an increase of 7.9% from the comparable prior-year period.

    The gross margin percentage declined to 75.2% in the quarter ended September 30, 2011 from 77.4% in the comparable prior-year quarter due to the cost recognized upon the sale of the inventory that was written-up to fair value as part of the acquisitions and amortization of acquired intangible assets.  Gross margins were 79.0% and 77.6% the quarters ended September 30, 2011 and 2010, respectively, if such costs and amortization are excluded in both periods.

    Selling, general and administrative expenses for the quarter ended September 30, 2011 increased $3.2 million from the quarter ended September 30, 2010. The acquisitions added $1.6 million of selling, general and administrative expenses in the quarter, excluding intangible amortization that increased $461,000 in the quarter.  The increase in selling, general and administrative expense for the quarter was also impacted by increased profit sharing expense of $885,000 for the quarter.

    The effective tax rate for the quarter ended September 30, 2011 was 32.0% as compared to 32.3% for the same prior-year period.  Effective tax rates for fiscal 2012 are expected to be 31% to 33%.

    Forward Looking Statements:

    Our press releases may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Such statements, including the expected effective tax rate, involve risks and uncertainties that may affect the actual results of operations. The following important factors, among others, have affected and, in the future, could affect the Company's actual results: the integration of the acquired companies, the introduction and acceptance of new biotechnology and hematology products, the levels and particular directions of research by the Company's customers, the impact of the growing number of producers of biotechnology research products and related price competition, general economic conditions, the retention of hematology OEM and proficiency survey business, the impact of currency exchange rate fluctuations, and the costs and results of research and product development efforts of the Company and of companies in which the Company has invested or with which it has formed strategic relationships.

    For additional information concerning such factors, see the section titled "Risk Factors" in the Company's annual report on Form 10-K and quarterly reports on Form 10-Q as filed with the Securities and Exchange Commission.  We undertake no obligation to update or revise any forward-looking statements we make in our press releases due to new information or future events.  Investors are cautioned not to place undue emphasis on these statements.

    Use of Adjusted Financial Measures:

    The adjusted financial measures used in this press release quantify the impact the following had on reported net sales, gross margin percentages, selling, general and administrative expenses, net earnings and earnings per share for the quarter year ended September 30, 2011 as compared to the reported amounts for the same period ended September 30, 2010:

  • fluctuations in exchange rates used to convert transactions in foreign currencies (primarily the Euro, British pound sterling and Chinese yuan) to U.S. dollars and,
  • the acquisitions of Boston Biochem, Inc. on April 1, 2011 and Tocris Holdings, Ltd on April 28, 2011, including the impact of amortizing intangible assets and the recognition of costs upon the sale of inventory written-up to fair value.

  • These adjusted financial measures are not prepared in accordance with generally accepted accounting principles (GAAP) and may be different from adjusted financial measures used by other companies.  Adjusted financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.  We view these adjusted financial measures to be helpful in assessing the Company's ongoing operating results.  In addition, these adjusted financial measures facilitate our internal comparisons to historical operating results and comparisons to competitors' operating results.  We include these adjusted financial measures in our earnings announcement because we believe they are useful to investors in allowing for greater transparency related to supplemental information we use in our financial and operational analysis. Investors are encouraged to review the reconciliations of adjusted financial measures used in this press release to their most directly comparable GAAP financial measures as provided with the financial statements attached to this press release.

    Techne Corporation has two operating subsidiaries:  Research and Diagnostic Systems, Inc. (R&D Systems) of Minneapolis, Minnesota and R&D Systems Europe, Ltd. (R&D Europe) of Abingdon, England.  R&D Systems is a specialty manufacturer of biological products.  R&D Systems has four subsidiaries, BiosPacific, Inc. (BiosPacific), located in Emeryville, California, Boston Biochem, Inc., located in Cambridge, Massachusetts, R&D Systems China Co. Ltd., (R&D China), located in Shanghai, China and Tocris Cookson, Inc, located in Saint Louis, Missouri.  BiosPacific is a worldwide supplier of biologics to manufacturers of in vitro diagnostic systems and immunodiagnostic kits. Boston Biochem is a leading developer and manufacturer of ubiquitin-related research products. R&D China and R&D Europe distribute biotechnology products.  R&D Europe has two subsidiaries, Tocris Holding, Ltd (Tocris) of Bristol, England and R&D Systems GmbH, a German sales operation.  Tocris is a leading supplier of reagents for non-clinical life science research.



    (In thousands, except per share data)

    (Unaudited)QUARTER ENDED9/30/11

    9/30/10Net sales


    $67,945Cost of sales


    15,350Gross margin


    52,595Operating expenses:   Selling, general and administrative


    7,613Research and development


    6,619Total operating expenses


    14,232Operating income


    38,363Other income (expense):   Interest income


    847   Other non-operating expense, net


    (257)Total other (expense) income


    590Earnings before income taxes


    38,953Income taxes


    12,580Net earnings


    $26,373Earnings per share:   Basic

    $   0.74

    $   0.71   Diluted

    $   0.74

    $   0.71Weighted average common shares outstanding:   Basic


    37,040   Diluted




    (In thousands)



    6/30/11Cash and equivalents

    $  79,235

    $ 77,613Short-term available-for-sale investments


    63,200Trade accounts receivable


    35,914Other receivables




    44,906Other current assets


    6,838   Current assets


    230,417Available-for-sale investments


    131,988Property and equipment, net


    95,398Goodwill and intangible assets, net


    138,915Other non-current assets


    20,952   Total assets


    $617,670LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities

    $  26,236

    $  18,188Deferred taxes


    13,360Stockholders' equity


    586,122   Total liabilities and stockholders' equity




    (In thousands)

    (Unaudited)QUARTER ENDED9/30/11

    9/30/10Net sales


    $67,945Organic sales adjustments:Acquisitions


    0Impact of foreign currency fluctuations


      0Organic sales  




    (In thousands, except per share data)

    (Unaudited)QUARTER ENDED9/30/11

    9/30/10Net earnings


    $26,373Identified adjustments:Costs recognized upon sale of acquired inventory


    0Amortization of intangibles



    170Tax impact of adjustments



    107Net earnings – Adjusted for identified  items


    $26,480Earnings per share – Diluted – Adjusted

    $   0.81



    (Unaudited)QUARTER ENDED9/30/11

    9/30/10Gross margin percentage


    77.4%Identified adjustments:Costs recognized upon sale of acquired inventory


    0.0%Amortization of intangibles


    0.2%Gross margin percentage – Adjusted




    (In thousands)

    (Unaudited)QUARTER ENDED9/30/11

    9/30/10Selling, general and administrative expenses


    $7,613Identified selling, general and administrative expense  adjustments:Acquired companies' expense, excluding intangible amortization


    0Amortization of intangibles


    (61)Selling, general and administrative expenses – Adjusted




    (In thousands)

    (Unaudited)QUARTER ENDED9/30/11

    9/30/10Amortization of intangible assets was included in:Cost of goods sold


    $109Selling, general and administrative expenses


    61Total amortization of intangible assets



    SOURCE Techne Corporation
    Copyright©2010 PR Newswire.
    All rights reserved

    Related medicine technology :

    1. Techne Corporation Declares Dividend
    2. Techne Corporation Declares Dividend
    3. Technest Holdings, Inc. to Acquire AccelPath, LLC; Issue Contingent Value Rights to Common Stockholders; and Issue Shares of Its Series E 5% Convertible Preferred Stock
    4. Techne Corporation Releases Unaudited Fourth Quarter and Fiscal Year 2011 Results
    5. Genaera Corporation Presents Interim Phase 1 Data for Obesity Compound Trodusquemine (MSI-1436) at IBC Conference
    6. CEL-SCI Corporation Releases Letter to Shareholders
    7. Alfacell Corporation to Present at UBS Global Life Sciences Conference
    8. Baxa Corporation Extends Global Reach With New Distribution Agreements in Colombia and the Dominican Republic
    9. Genaera Corporation Presents Preclinical Trodusquemine (MSI-1436) Data at the North American Association for the Study of Obesity Annual Meeting
    10. Genaera Corporation Presents Phase 1 Data for Trodusquemine (MSI-1436) at the North American Association for the Study of Obesity Annual Meeting
    11. The Quigley Corporation Reports Third Quarter Results, Increases Investment in Pharmaceutical R&D for Diabetic Neuropathy
    Post Your Comments:
    (Date:10/13/2015)... 2015  Nanomedical Diagnostics, a biotech company developing ... diagnostics, announces the completion of a Series A ... Ventures. --> ... monitoring and diagnostic platforms that empower individuals to ... will enable the company to commercially release AGILE ...
    (Date:10/13/2015)... Oct. 9, 2015 Research and Markets ( ... "Kombucha Market by Types (Bacteria, Yeast, Mold, Others), Flavors ... Flowers, Others), & by Region - Forecasts to 2020" ... --> --> The global ... few years. In terms of value, the market is ...
    (Date:10/13/2015)... Oct. 13, 2015   Micell Technologies , Inc. ... and II trials of its MiStent Sirolimus Eluting Absorbable ... ) were presented at the 27th Annual Transcatheter Cardiovascular ... San Francisco , October 11-15. TCT is the ... MiStent SES was designed to optimize vessel healing in ...
    Breaking Medicine Technology:
    (Date:10/13/2015)... Alexandria, Va. — , ... ... Military Officers Association of America (MOAA) will hold its 2015 ... Highlights include a free military career fair; informational seminars; a ... chairman of the Joint Chiefs of Staff; and the Community ...
    (Date:10/13/2015)... ... October 13, 2015 , ... Vision Group Holdings, the ... San Diego, California. With brands including The LASIK Vision Institute and TLC Laser Eye ... the nationwide leader in laser vision correction. , Global Laser Vision will continue to ...
    (Date:10/13/2015)... Nashville, Tennessee (PRWEB) , ... October 13, 2015 ... ... owned leader of anesthesia and pain management services, today announced its partnership with ... the partnership integrates data from disparate systems and organizes the data into an ...
    (Date:10/13/2015)... Texas (PRWEB) , ... October 13, 2015 , ... Symposium ... for the 19th annual Dallas Cosmetic Symposium to be held March 2nd and 3rd, ... place immediately afterwards, draws plastic surgeons and cosmetic physicians from around the world. , ...
    (Date:10/13/2015)... ... October 13, 2015 , ... e-con Systems Inc., a leading embedded design services ... the industry’s first RGB-IR pixel format camera with a USB 3.0 interface and ... family of UVC USB 3.0 cameras, is based on the 1/3-inch OV4682 - a ...
    Breaking Medicine News(10 mins):