PerkinElmer First Quarter Earnings Grow 35% On Strong Revenue Growth
BOSTON, MA. PerkinElmer, Inc. (NYSE:PKI) announced a 35% increase in EPS to $.42 in the first quarter on a strong increase in revenue. Gregory L. Summe, Chairman and Chief Executive Officer said, "This marks our third consecutive quarter of double digit organic sales growth and our tenth consecutive quarter of double digit earnings growth. We are seeing strong demand and excellent operational progress across all four of our businesses."
Highlights for the quarter include:
--Revenue expanded 65% to $402M. Organic revenue growth, defined as adjusting for acquisitions, divestitures and foreign exchange, was 11% on strength in drug discovery, telecom, imaging, and semiconductor markets. --Operating margins expanded by 270 basis points to 9.7%, reflecting the sale of less profitable businesses, more favorable mix of service and consumables and the Company s Six Sigma quality and productivity initiatives. --Earnings per share increased 35% to $.42 from $.31 in the same quarter last year, and more than doubled on a continuing operations basis.
First-quarter financial overview by business unit:
--Life Sciences sales grew to $39.6 million, a 17% increase in organic sales compared to the prior period. Sales of reagents and instruments to the drug discovery market and genetic disease screening both grew greater than 20%, driven by new product introductions. Operating margin expanded 50 basis points to 10.8% even as R&D expanded by 80 basis points.
--Optoelectronics sales were $114.5 million, representing organic growth of 21%. Operating income increased 55% to $13.4 million and operating margin increased to 11.7%. Results were favorable across all three businesses: Telecom, Specialty Lighting, and Imaging.
--Instruments sales were up four-fold to $186.5 million due to the acquisitions of analytical instruments, in the second quarter of 1999, and Vivid Technologies, in January of this year. Both acquisitions expanded the unit s technology and market breadth and have positioned the Company as a market leader. Operating income expanded 220% to $14.5M while operating margin as a percent of sales contracted based on the impact of the acquisitions. Adjusting for the acquisitions, operating margin expanded over 200 basis points.
--Fluid Sciences sales increased to $61.7 million. Organic revenue growth was 32% driven by a very strong semiconductor and power generation market. Operating margins expanded to 16.3% attributable to the sale of unprofitable businesses, higher volume, and the success of Six Sigma productivity gains. During the quarter, the Company closed several strategic agreements including:
--The acquisition of Vivid Technologies, a leading supplier of advanced explosive detection systems used in airports and high-security facilities around the world.
--Collaborations with Genomic Solutions, to broaden its proteomics and genomics capabilities while increasing its critical mass in the drug discovery market, with Bragg Photonics, supplementing the Company s growing fiber optic components business, with Bruker Daltonics, extending its capability in Mass Spectrometry, and with Mantra Software broadening the Company s strength in laboratory informatics.
The Company also had several contract wins including: --An agreement with the UK National Health Service where PerkinElmer will manage a centralized prenatal and neonatal screening program in Leeds. The program is expected to be a model for other regional authorities in the UK. PerkinElmer has a similar relationship with the State of California.
--A contract from the Florida Department of Health to provide a Laboratory Information Management System (LIMS) for their State Public Health Laboratories. The program will include Florida s Newborn Screening Program, microbiology and chemistry laboratories.
--An FAA contract award for airport X-ray systems. In early January PerkinElmer became the first supplier placed on the FAA approved vendor list for TRX systems.
Reflecting on the Company s first quarter performance, Mr. Summe said, "The combination of top-line growth, a greatly strengthened organization, and rapid progress in our Six Sigma and productivity programs is driving strong earnings momentum. We expect this strength to continue and now project earnings per share for the year to increase at least 25% to the range of $2.13-$2.18."
Unless otherwise stated, references throughout this release to operating profit, net income and diluted earnings per share exclude nonrecurring items.
Factors Affecting Future Performance
This press release contains "forward-looking" statements as defined in Section 21E of the Securities Exchange Act of 1934. For this purpose, any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Words such as "believes," "anticipates," "plans," "expects," "will" and similar expressions are intended to identify forward-looking statements. There are a number of important factors that could cause the results of PerkinElmer to differ materially from those indicated by these forward-looking statements, including among others, factors set forth in the Company s filings with the Securities and Exchange Commission, including, without limitation, factors under "Forward-looking Information and Factors Affecting Future
Performance" in the Company s Annual Report on Form 10-K for the year ended January 2, 2000 filed with the Securities and Exchange Commission, which factors are expressly incorporated by reference in this press release. PerkinElmer, Inc. is a $1.7 billion high technology company based in Boston, Massachusetts, operating in four businesses - Life Sciences, Fluid Sciences, Optoelectronics, and Instruments. The Company has operations in over 100 countries, and is a component of the S&P 500 Index. Additional information is available at www.perkinelmer.com or at 1-877-PKI-NYSE. -0- *T
Contact:
PerkinElmer, Inc.
Diane J. Basile,
(781) 431-4306
PerkinElmer, Inc.
Diane J. Basile,
(781) 431-4306
Web site: http://www.perkinelmer.com
