| From: mopgcw | 8/8/2006 1:24:45 PM | | | | | | Techne Corporation Releases Unaudited Fourth Quarter Results for Fiscal Year 2006
Tuesday August 8, 7:00 am ET
MINNEAPOLIS, Aug. 8 /PRNewswire-FirstCall/ -- Techne Corporation's (Nasdaq: TECH - News) consolidated net earnings increased 10.9% to $73.4 million and its earnings per diluted share increased 14.2% to $1.85 compared with $66.1 million and $1.62 per diluted share for the fiscal year ended June 30, 2005. For the quarter ended June 30, 2006, Techne's consolidated net earnings increased 5.0% to $19.5 million and its earnings per diluted share increased 4.3% to $.49 for the quarter ended June 30, 2006 compared with $18.6 million and $.47 per diluted share for the quarter ended June 30, 2005.
Consolidated net earnings and diluted earnings per share for the periods ended June 30, 2006 were impacted by stock option related compensation expense from the adoption of Financial Accounting Standards Board (FASB) Statement of Accounting Standards No. 123 (Revised 2004), Share-Based Payments (SFAS No. 123R). Consolidated net earnings and diluted earnings per share for the fiscal year ended June 30, 2006 were also impacted by the decline in exchange rates used to convert R&D Europe results from British pound sterling to U.S. dollars. The acquisitions of Fortron Bio Science, Inc. and BiosPacific, Inc. on July 1, 2005 and an accelerated stock buyback transaction ("ASB") on March 1, 2005 had positive impacts on current year reported amounts. The impact of these items on comparable net earnings and diluted earnings per share is summarized as follows:
Consolidated net sales for the three months and fiscal year ended June 30, 2006 were $52.1 million and $202.6 million, respectively. This was an increase of 9.5% and 13.4% from the three months and fiscal year ended June 30, 2005, respectively. R&D Systems' Biotechnology Division net sales for the three months and fiscal year ended June 30, 2006 were $32.3 million and $125.0 million, increases of 9.1% and 12.5%, respectively, as compared to prior-year periods. Approximately $670,000 and $1.3 million of the increase in Biotechnology Division net sales for the quarter and fiscal year ended June 30, 2006 was the result of price increases. R&D Europe's net sales for the three months ended June 30, 2006 were $13.5 million, a decrease of 3.0% from the prior year, while net sales for the fiscal year ended June 30, 2006 were $53.0 million, an increase of 3.2% as compared to the prior year. In British pound sterling, R&D Europe's net sales decreased 3.9% in the fourth quarter from the fourth quarter of the prior year, but increased 7.8% for the fiscal year ended June 30, 2006. Compared to the prior year, R&D Systems Europe had two fewer shipping days in the quarter ended June 30, 2006 due to the timing of the European Easter holiday. In addition, sales in Germany declined 12.6% in the quarter ended June 30, 2006 as compared to the same quarter last year, primarily due to a work stoppage by researchers which has since been settled. R&D Systems' Hematology Division net sales for the three months ended June 30, 2006 were $4.2 million, an increase of 5.5% as compared to the quarter ended June 30, 2005. Hematology sales for the fiscal year were $15.2 million, a decrease of 5.8% from the prior fiscal year, mainly as a result of a large OEM customer changing to a new primary vendor in January 2005. Included in consolidated net sales for the three months and fiscal year ended June 30, 2006 was $2.0 million and $9.4 million, respectively, of net sales from Fortron Bio Science, Inc. and BiosPacific, Inc., which were acquired effective July 1, 2005.
Consolidated gross margins were 77.3% and 77.4% for the quarter and fiscal year ended June 30, 2006, respectively. Excluding Fortron and BiosPacific, gross margins for the quarter ended June 30, 2006 were 78.9% compared to 79.3% in the fourth quarter of fiscal 2005, and 79.5% for the fiscal year ended June 30, 2006 compared to 79.4% for the fiscal year ended June 30, 2005. Combined gross margins for Fortron and BiosPacific operations of 38.7% and 34.4% for the quarter and fiscal year ended June 30, 2006, respectively, were affected by inventory on hand at the acquisition date that was recorded at fair value as determined by purchase accounting.
Selling, general and administrative expenses increased $3.1 million for the fiscal year ended June 30, 2006 primarily due to $1.6 million of stock option expense from the adoption of SFAS No. 123R in fiscal 2006. Excluding the impact of adopting SFAS No. 123R, selling, general and administrative expense as a percent of net sales decreased to 12.8% from 13.7% for the fiscal years ended June 30, 2006 and 2005, respectively.
The dollar increases in selling, general and administrative expenses were also impacted by the acquisitions of Fortron and BiosPacific.
The Company allocated approximately $12.8 million to goodwill and $7.1 million to other intangible assets arising from the acquisition of Fortron and BiosPacific. The intangible assets, mainly technologies, trade names and customer and supplier relationships, are being amortized over lives of one to eight years and amortization expense of $271,000 and $1,086,000 was recorded for the quarter and fiscal year ended June 30, 2006, respectively, related to these assets.
In April 2006, the Company made an additional $9 million investment in ChemoCentryx, Inc. (CCX) in the form of a convertible note subject to the limitation that the Company's holdings in CCX will not exceed 19.9% of CCX voting shares. In June 2006, approximately $4.3 million of the note was converted into shares of CCX preferred stock. The Company currently holds a 19.9% interest in CCX |
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| From: mopgcw | 8/26/2006 4:19:36 AM | | | | | | Techne helps finance biopharmaceutical company
Friday August 25, 4:12 pm ET
Techne Corp. has invested in a California biopharmaceutical company that recently signed a $63.5 million deal with GlaxoSmithKline.
Techne was one of six companies to invest in Mountain View-based ChemoCentryx, which netted $17.1 million in its third round of financing.
ChemoCentryx is a clinical-stage biopharmaceutical company focused on orally-administered therapeutics for autoimmune diseases, inflammatory disorders and cancer.
Minneapolis-based Techne (Nasdaq: TECH - News) is a biotech firm that makes kits of proteins and antibodies that are sold to biomedical researchers. |
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| From: mopgcw | 10/27/2006 3:57:54 AM | | | | | | Techne Corporation Releases Unaudited First Quarter Results for Fiscal Year 2007
7:00 AM EDT October 25, 2006
Techne Corporation's (Nasdaq: TECH) consolidated net earnings for the quarter ended September 30, 2006 increased 15.5% to $19.6 million and its earnings per diluted share increased 16.3% to $0.50 compared with $17.0 million and $.43 per diluted share for the quarter ended September 30, 2005. The improvement in results was mainly due to increased consolidated net sales and improved gross margin percentages.
Consolidated net sales for the quarter ended September 30, 2006 were $52.4 million, an increase of 9.7% from the quarter ended September 30, 2005. Biotechnology net sales for the quarter ended September 30, 2006 were $35.9 million, an increase of 11.2% from the quarter ended September 30, 2005. Approximately $700,000 of the increase in biotechnology net sales for the quarter was the result of price increases. R&D Europe's net sales for the quarter ended September 30, 2006 were $12.9 million, an increase of 8.9% from the first quarter of the prior year. In British pound sterling, R&D Europe's net sales increased 2.7% from the same quarter of the prior year. Hematology net sales for the quarter ended September 30, 2006 were $3.5 million, a decrease of 0.9% as compared to the quarter ended September 30, 2005.
Consolidated gross margins were 78.5% for the quarter ended September 30, 2006 compared to 76.7% for the quarter ended September 30, 2005. Biotechnology gross margins were 79.6% for the quarter ended September 30, 2006 compared to 77.5% for the quarter ended September 30, 2005, mainly as a result of changes in product mix. Biotechnology gross margins were also affected by purchase accounting related to inventory on hand at the acquisition date of Fortron and BiosPacific in fiscal 2006. Included in cost of sales for the quarters ended September 30, 2006 and 2005 were $291,000 and $575,000, respectively, related to inventory purchase accounting.
Consolidated net earnings and diluted earnings per share for the quarter ended September 30, 2006 were impacted slightly by the change in exchange rates from the quarter ended September 30, 2006, used to convert R&D Europe results from British pound sterling to U.S. dollars. The change in exchange rates increased consolidated net earnings approximately $206,000 for the quarter ended September 30, 2006.
In September 2006, the Company invested $7.2 million for an 18% equity interest in Nephromics, LLC. Nephromics has licensed technology related to the diagnosis of preeclampsia and has sub-licensed the technology to several major diagnostic companies for the development of diagnostic assays.
The Company is currently considering paying off its $13.1 million mortgage debt during the quarter ended December 31, 2006. The interest rate on the mortgage is at a floating rate, which is currently at 7.8%. Interest expense for the quarter ended September 30, 2006 was $268,000. The mortgage note has a 5% prepayment penalty. The Company estimates that prepayment of the mortgage would result in a reduction in diluted earnings per share of approximately $.01 in the quarter of payment. |
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| From: mopgcw | 2/2/2008 5:41:16 AM | | | | | | Techne - TECH-NNM
Outperform - Price 66.20 on Jan. 29
by Baird Securities
Techne is the leading producer of cytokine-related reagents and kits in the U.S. and biotechnology and hematology units. We're increasing our target from 70 to 71, based on a price/earnings multiple of 25 times (in line with 15-to-40 times we afford life-science companies) our calendar-year '09 EPS estimate of $2.82...we believe [the multiple] warranted, given Techne's industry-leading operating margins, strong cash flow, and strong balance sheet ($188.8 million of cash; no debt). Market-cap: $2.6 billion. |
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| To: keokalani'nui who wrote (36) | 2/4/2009 2:24:08 PM | | From: mopgcw | | | | Chuckle. That is why I got a kick out of MYGN's recent CC where they are posturing their resistance to the current environment. maybe. maybe not. we will see if my $80's get called away in a couple weeks...
fwiw, I like tech, but it is still way too expensive in the current market. I have been keepin them and LIFE(IVGN) on the radar for a large dip entry. no joy yet. |
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| From: Lance Bredvold | 1/13/2022 11:34:00 AM | | | | | | After 12 years with no posts, one might think TECH was defunct. Actually it has been on a tear for the last year and over $500. No, actually the tear has been closer to 9 years long. Earnings, circa $7, while promising, don't seem to justify such a high price. Yet I just sold a $400 put for $37 and am thinking I might be crazy. The sale was in conformance with a personal heuristic which maybe should not apply to a case such as TECH.
The price today is down over 5% to $405 following over $100 decline in the last month, but I did notice that CCXI, of which I think they still own 10%, was up 6%. In two of the past 4 years they've had to reduce earnings to reflect large declines in the value of their ownership there, and now that a drug, Tavneos (avacopan) has been approved in Japan and the US as of Oct. 21, we are hopefully awaiting their first sales figures. Meanwhile, Techne should not have to report large reductions in book value due to CCXI's price drops for a while.
Of course the reason I may be crazy is that $400/$7.00 makes a PE of over 50. And if the market tanks as I think possible, $140 seems well within reason and I'll have shares for which I paid nearly 3 times as much as that. I had repurchased a lot at $260 last year due to the sale of another lot at $260 on a sold call. So far that purchase looks OK, but it too could wind up far underwater. Oh, and I had a Jan. 22 call sold on TECH $510's so that makes another nice bonus of $22. |
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| To: Lance Bredvold who wrote (38) | 6/9/2022 10:30:09 PM | | From: Lance Bredvold | | | | Today the market is down nicely but well above the 80% of the S&P500 high (4819) at 4019 it reached a few weeks ago. I have many calls sold plus a few puts, but no TECH other than the 400's and 420's I described in an earlier post. The price today is around $360. The question now becomes: Where do I wish to buy more shares? And preferably in a tax free account since my current holdings are all in taxable accounts (I sold my tax free shares on exercised calls). I sold 1/3 of my holdings at $120 with a $10.15 call premium back in 2018. Then those at $260 plus $22 premium in 10/2020.
Mr Kummeth has been so very upbeat and I guess his enthusiasm is responsible for the price so far exceeding anything I would call reasonable. He continues to speak enthusiastically despite earnings which have been barely above the average of the previous 12 years. EPS did double the 5 years before that (2004 - 2009). As I recall Kummeth arrived from Fisher in 2012 and all this time EPS has varied around $3 per share annually. Yes, we had 3 great looking quarters reported this year and little likelihood CCXI will reduce the final quarter's results, so we may well see $6+ for 2022. Very nice, but $500 stock price? $400? I can see $140 or so if all continues to be so positive in a bearish market. And 2021 could have been over $4 if a CCXI writedown had not been required which actually resulted in a 11% decline from 2020 (which was closer to $4 at $3.86. A PE of $25 and optimistic EPS in 2023 of $8?
A problem with short calls is that they preclude me from selling the shares which I really think would be prudent except for a huge capital gain (I still have some shares which I bought in 2009 for $52.10. I don't need or want another $40-$50,000 income this year. As old as I am, I'd rather leave the shares for my legatees, but expect them to be worth far less by the day I die. It's a conundrum.
I think I'd dare to buy again at $190. Maybe sell some $210 puts.
PS. The put I sold in the last post was repurchased for just a few dollars gain. |
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| From: Lance Bredvold | 6/12/2022 10:01:41 PM | | | | | | There is another option which I wish I'd thought of earlier. I had been planning to give away more appreciated shares of QCOM but the price had declined more than I think is reasonable. Given my belief that QCOM will be relatively stable and might even rise in price, and at the same time that TECH is unrealistically overpriced, I probably should have sent shares of TECH to my donees. But that plan is complicated also by the need to buy back some calls before I can transfer any shares out. I also have placed an order to buy even more QCOM at $130, but with futures down for Monday morning, I'm thinking I'll cancel or move that order down a few bucks until I see what happens to the price leading into the open.
The preference of offering TECH rather than QCOM is still valid even with prices in decline the last two days and futures down again for Monday. Also even though my cost basis is a smaller proportion of the QCOM than the TECH. Unfortunately, I must still mail directions to my TDAmeritrade accounts to have them send shares and that takes 4 or 5 days during which I simply cannot predict prices. Guess I should set up a fax account which would speed that up to a day or two. I did donate a few shares from an E*Trade account and that was done over the internet and only took a day or even less. I don't know why TDA is so cautious, but perhaps I should be glad they are. |
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| To: mopgcw who wrote (32) | 6/13/2022 11:44:24 AM | | From: Lance Bredvold | | | | I'd been wondering about that investment in CCXI by TECH and am interested to see this earnings report which includes mention of additional funds going to them in the form of PFD stock and a total holding of just under 20% in late 2006. I have been under the impression of late that part of that investment has been sold and may be as low as 10%. Meanwhile CCXI now has a product approved in Japan and the US of which sales are ramping up. Thus the exposure of TECH ought to be safer now and perhaps no more mark to market reductions in EPS.
As I've been expecting the price of TECH reached a new annual low of $321 this morning. Sweet pain!
It's also interesting to see several posters who show up and apparently have an interest for a short time and then let this company slip off their SI interest list. I now wonder if anybody even looks at this board any more--but as I've spoken, there is no reason to be buying at this point as far as I can see. |
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