Techne Corp. (TECH, Financial) filed Quarterly Report for the period ended 2009-12-31.
Techne Corp. has a market cap of $2.29 billion; its shares were traded at around $61.48 with a P/E ratio of 21.96 and P/S ratio of 8.68. The dividend yield of Techne Corp. stocks is 1.69%. Techne Corp. had an annual average earning growth of 18.9% over the past 10 years. GuruFocus rated Techne Corp. the business predictability rank of 5-star.TECH is in the portfolios of Bill Frels of MAIRS & POWER INC, Ron Baron of Baron Funds, Chuck Royce of ROYCE & ASSOCIATES.
respectively, for the quarter and six months ended December 31, 2009 compared
to the same prior-year periods. The increase in the quarter was mainly as a
result of increased sales volume. North American biotechnology sales to
industrial pharmaceutical and biotechnology customers increased 5.7% during
the quarter ended December 31, 2009. Biotechnology sales to academic, Pacific
Rim distributors and China grew 4.5%, 13.0% and 21.8%, respectively, during
the second quarter of fiscal 2010 compared to the same prior-year period. A
12.8% decline in sales to industrial pharmaceutical and biotechnology
customers in the first quarter of fiscal 2010 more than offset the second
quarter sales growth. Sales to North American 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.
R&D Europe net sales increased $1.5 million (8.6%) and $388,000 (1.1%) for
the quarter and six months ended December 31, 2009, respectively, from the
comparable prior-year periods. R&D Europe's net sales decreased 6.6% and 2.8%
for the quarter and six months ended December 31, 2009 when measured at
currency rates in effect in the comparable prior-year periods. The decreased
net sales for the periods was mainly the result of lower sales to
pharmaceutical customers. Approximately 75% of R&D Europe sales are in non-
British pound sterling currencies (mainly Euro) which had a favorable impact
on consolidated net sales of approximately $1.6 million and $2.7 million,
respectively, for the quarter and six months ended December 31, 2009 as a
result of the change in exchange rates used to convert sales in other
currencies to British pounds sterling. In addition, consolidated net sales
were impacted favorably by $1.0 million and unfavorably by $1.3 million for
the quarter and six months ended December 31, 2009, respectively, as a result
of the change in exchange rates used to convert British pound sterling to
U.S. dollars.
QUARTER ENDED SIX MONTHS ENDED
- -
12/31/09 12/31/08 12/31/09 12/31/08
- - - -
Biotechnology 80.0% 77.2% 80.5% 79.2%
R&D Europe 53.9% 52.1% 53.7% 55.3%
Hematology 47.0% 43.5% 48.7% 43.9%
Consolidated gross margin 79.7% 78.3% 80.1% 79.8%
Consolidated gross margins, as a percentage of consolidated net sales,
increased from 78.3% and 79.8% for the quarter and six months ended December
31, 2008 to 79.7% and 80.1% for the quarter and six months ended December 31,
2009. The increases were primarily the result of improved margins in the
Biotechnology and Hematology Divisions due to incremental profit on increased
sales volumes.
Income taxes for both the quarter and six months ended December 31, 2009 were
provided at rates of 32.6% of consolidated earnings before income taxes, as
compared to 30.8% and 32.3% for the same prior-year periods. The U.S credit
for research and development expired at the end of calendar 2007 and was not
renewed until the quarter ended December 31, 2008, resulting in a lower
effective tax rate for the quarter ended December 31, 2008. Foreign income
taxes have been provided at rates that approximate the tax rates in the
countries in which R&D Europe and R&D China operate. The Company expects its
fiscal 2010 effective income tax rate to range from approximately 32.0% to
33.0%.
The Company operates internationally, and thus is subject to potentially
adverse movements in foreign currency rate changes. Approximately 30% of
consolidated net sales are made in foreign currencies including 16% in euro,
7% in British pound sterling, 3% in Chinese yuan and the remaining 4% 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.
Read the The complete Report
Techne Corp. has a market cap of $2.29 billion; its shares were traded at around $61.48 with a P/E ratio of 21.96 and P/S ratio of 8.68. The dividend yield of Techne Corp. stocks is 1.69%. Techne Corp. had an annual average earning growth of 18.9% over the past 10 years. GuruFocus rated Techne Corp. the business predictability rank of 5-star.TECH is in the portfolios of Bill Frels of MAIRS & POWER INC, Ron Baron of Baron Funds, Chuck Royce of ROYCE & ASSOCIATES.
Highlight of Business Operations:
Biotechnology net sales increased $2.1 million (5.2%) and decreased $20,000,respectively, for the quarter and six months ended December 31, 2009 compared
to the same prior-year periods. The increase in the quarter was mainly as a
result of increased sales volume. North American biotechnology sales to
industrial pharmaceutical and biotechnology customers increased 5.7% during
the quarter ended December 31, 2009. Biotechnology sales to academic, Pacific
Rim distributors and China grew 4.5%, 13.0% and 21.8%, respectively, during
the second quarter of fiscal 2010 compared to the same prior-year period. A
12.8% decline in sales to industrial pharmaceutical and biotechnology
customers in the first quarter of fiscal 2010 more than offset the second
quarter sales growth. Sales to North American 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.
R&D Europe net sales increased $1.5 million (8.6%) and $388,000 (1.1%) for
the quarter and six months ended December 31, 2009, respectively, from the
comparable prior-year periods. R&D Europe's net sales decreased 6.6% and 2.8%
for the quarter and six months ended December 31, 2009 when measured at
currency rates in effect in the comparable prior-year periods. The decreased
net sales for the periods was mainly the result of lower sales to
pharmaceutical customers. Approximately 75% of R&D Europe sales are in non-
British pound sterling currencies (mainly Euro) which had a favorable impact
on consolidated net sales of approximately $1.6 million and $2.7 million,
respectively, for the quarter and six months ended December 31, 2009 as a
result of the change in exchange rates used to convert sales in other
currencies to British pounds sterling. In addition, consolidated net sales
were impacted favorably by $1.0 million and unfavorably by $1.3 million for
the quarter and six months ended December 31, 2009, respectively, as a result
of the change in exchange rates used to convert British pound sterling to
U.S. dollars.
QUARTER ENDED SIX MONTHS ENDED
- -
12/31/09 12/31/08 12/31/09 12/31/08
- - - -
Biotechnology 80.0% 77.2% 80.5% 79.2%
R&D Europe 53.9% 52.1% 53.7% 55.3%
Hematology 47.0% 43.5% 48.7% 43.9%
Consolidated gross margin 79.7% 78.3% 80.1% 79.8%
Consolidated gross margins, as a percentage of consolidated net sales,
increased from 78.3% and 79.8% for the quarter and six months ended December
31, 2008 to 79.7% and 80.1% for the quarter and six months ended December 31,
2009. The increases were primarily the result of improved margins in the
Biotechnology and Hematology Divisions due to incremental profit on increased
sales volumes.
Income taxes for both the quarter and six months ended December 31, 2009 were
provided at rates of 32.6% of consolidated earnings before income taxes, as
compared to 30.8% and 32.3% for the same prior-year periods. The U.S credit
for research and development expired at the end of calendar 2007 and was not
renewed until the quarter ended December 31, 2008, resulting in a lower
effective tax rate for the quarter ended December 31, 2008. Foreign income
taxes have been provided at rates that approximate the tax rates in the
countries in which R&D Europe and R&D China operate. The Company expects its
fiscal 2010 effective income tax rate to range from approximately 32.0% to
33.0%.
The Company operates internationally, and thus is subject to potentially
adverse movements in foreign currency rate changes. Approximately 30% of
consolidated net sales are made in foreign currencies including 16% in euro,
7% in British pound sterling, 3% in Chinese yuan and the remaining 4% 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.
Read the The complete Report
