MINNEAPOLIS, Feb. 2 /PRNewswire-FirstCall/ -- Techne Corporation’s consolidated net earnings for the quarter ended December 31, 2009 increased 4.6% to $24.7 million or $.66 per diluted share compared with $23.6 million or $.62 per diluted share for the quarter ended December 31, 2008. The increase in net earnings for the quarter was due to increased Biotechnology sales, improved gross margins and lower selling, general and administrative expenses partially offset by decreased interest income. Also affecting net earnings for the quarter were foreign currency fluctuations. The change in exchange rates used to convert foreign currencies (primarily British pound sterling and euros) to U.S. dollars increased net earnings by $572,000 ($.01 per diluted share) for the quarter ended December 31, 2009 as compared to the same prior-year period. For the six months ended December 31, 2009, Techne’s consolidated net earnings decreased 1.4% to $51.5 million or $1.38 per diluted share compared with $52.2 million or $1.36 per diluted shares for the six months ended December 31, 2008. The decrease in consolidated net earnings for the six months was the result of lower interest income offset by slightly improved gross margins and lower selling, general and administrative expenses.
Biotechnology net sales, which include sales by R&D Systems’ Biotechnology Division, R&D Systems China and BiosPacific, were $42.4 million for the quarter ended December 31, 2009, an increase of 5.2% from $40.3 million for the quarter ended December 31, 2008. North American biotechnology sales to industrial pharmaceutical and biotechnology customers increased 5.7% during the second quarter of fiscal 2010 as compared to the second quarter of fiscal 2009. Biotechnology sales to academic, Pacific Rim distributors and China grew 4.5%, 13.0% and 21.8%, respectively, in the second quarter of fiscal 2010. Biotechnology net sales for the six months ended December 31, 2009 of $86.4 million were comparable to $86.5 million for the six months ended December 31, 2008. North American biotechnology sales to industrial pharmaceutical and biotechnology customers decreased 4.7% during the six months ended December 31, 2009 as compared to the first six months of fiscal 2009. Biotechnology sales to academic, Pacific Rim distributors and China grew 4.3%, 9.5% and 25.8%, respectively, in the first six months of fiscal 2010.
Hematology net sales for the quarter and six months ended December 31, 2009 were $4.3 million and $9.0 million, increases of 1.5% and 5.7%, respectively, compared to the quarter and six months ended December 31, 2008.
Selling, general and administrative expenses for the quarter and six months ended December 31, 2009 decreased $696,000 (7.2%) and $1.5 million (8.1%), respectively, from the quarter and six months ended December 31, 2008. The decrease in selling, general and administrative expense for the quarter ended December 31, 2009 from the comparable prior-year period resulted mainly from lower stock compensation expense of $361,000. The decrease in selling, general and administrative expenses for the six months ended December 31, 2009 from the comparable prior-year period was due to lower stock compensation expense of $361,000 and lower profit sharing expense of $725,000.
Interest income decreased $1.0 million and $2.8 million for the quarter and six months ended December 31, 2009 from the comparable prior-years period primarily as a result of lower rates of return on cash and available-for-sale investments.
Forward Looking Statements:
For additional information concerning such factors, see the Company’s annual report on Form 10-K and quarterly reports on Form 10-Q as filed with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements we make in our press releases due to new information or future events. Investors are cautioned not to place undue emphasis on these statements.
CONTACT: Greg Melsen, Chief Financial Officer or Kathy Backes, Controller,
both of Techne Corporation, +1-612-379-8854
