Minneapolis — Techne Corporation’s (NASDAQ:TECH) financial results for the quarter ended September 30, 2012 include the following highlights:

– First quarter earnings were $25.7 million or $.70 per diluted share. Adjusted earnings for the quarter were $27.5 million (a decrease of 8.2% from the prior fiscal year period) or $.75 per diluted share. Earnings and adjusted earnings were negatively impacted by foreign currency fluctuations, which reduced reported sales and gross margins. Adjusted earnings and earnings per share exclude 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.

– Net sales as reported declined by 3.3% to $75.0 million for the quarter. The quarter ended September 30, 2012 had one less selling day as compared to the same prior-year period. Organic sales declined by 0.9% in the quarter and exclude changes in foreign currency rates. A stronger U.S. dollar as compared to foreign currencies reduced sales by $1.9 million in the quarter ended September 30, 2012 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 $69.5 million, a decrease of 3.9% from $72.3 million for the quarter ended September 30, 2012. Biotechnology sales declined 1.2% for the quarter ended September 30, 2012 if foreign currency changes are excluded.

Hematology net sales for the quarter ended September 30, 2012 were $5.5 million, an increase of 4.3% from the comparable prior-year period.

The gross margin percentage declined to 74.1% in the quarter ended September 30, 2012 from 75.2% in the comparable prior-year quarter. The decline was caused by unfavorable exchange rates that were partially offset by lower costs recognized upon the sale of the inventory that was written-up to fair value as part of the acquisitions. Gross margins adjusted for costs recognized upon sale of acquired inventory and amortization of intangible assets were 76.8% and 79.0% the quarters ended September 30, 2012 and 2011, respectively. The decrease was primarily caused by unfavorable exchange rates.

Selling, general and administrative expenses for the quarter ended September 30, 2012 decreased $445,000 million or 4.1% from the quarter ended September 30, 2011. The decrease in selling, general and administrative expense was impacted by a $685,000 decrease in profit sharing expense for the quarter as compared to the prior-year period.

Research and development expenses for the quarter ended September 30, 2012 increased $785,000 (11.8%) from the quarter ended September 30, 2011. 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.

Other non-operating expenses include foreign exchange transaction losses of $78,000 and $524,000 in the quarters ended September 30, 2012 and 2011, respectively.

The effective tax rate for the quarter ended September 30, 2012 was 32.4% as compared to 32.0% for the same prior-year period. Effective tax rates for fiscal 2013 are expected to be 31% to 33%.

The Company’s investment in ChemoCentryx, Inc. (CCXI) is included in short-term available-for-sale investments at September 30, 2012 at a fair-value of $73.5 million. The Company’s unrealized gain of $44.0 million on the investment, net of deferred tax liability of $15.8 million, was included in accumulated other comprehensive income at September 30, 2012.

The Company did not repurchase any shares of its common stock during the quarter ended September 30, 2012. Approximately $27.0 million remains available at September 30, 2012 for the repurchase and retirement of shares under the currently-open authorization.