News Article

PerkinElmer Second Quarter Earnings Per Share up 42%

Thursday 20th July 2000

Sales Grew 31%, Organic Sales Up 12%

Operating Margin Expands 420 Basis Points

Earnings Per Share From Continuing Operations Up 132%

BOSTON, MA. PerkinElmer, Inc. (NYSE: PKI) announced a 42% increase in earnings per share to $.51 in the second quarter based on a strong increase in revenue and operating margin improvement. Gregory L. Summe, Chairman and Chief Executive Officer said, "This was another excellent quarter for PerkinElmer as each of our businesses delivered on their commitments by expanding margins, increasing sales growth, and strengthening their processes and organizations."

Highlights for the quarter include:

Revenue expanded 31% to $399 million. Organic revenue growth, which is adjusted for acquisitions, divestitures and foreign exchange, was 12%. This marked the Company s fourth consecutive quarter of double-digit organic revenue growth.

Operating margins expanded by 420 basis points to 11.5%, reflecting a stronger portfolio of businesses and company-wide productivity and quality initiatives.

Earnings per share increased 42% to $.51 from $.36 in the same quarter last year. Earnings per share from continuing operations grew 132% as last year included $.14 from operations subsequently discontinued.

During the quarter, the Company announced its agreement to acquire NEN Life Sciences, a leading supplier of drug discovery technologies and reagents. "The addition of NEN positions us as the third largest drug discovery tool provider in the world," noted Mr. Summe. The deal is expected to close July 31. Second-quarter financial overview by segment:

Life Sciences sales grew to $42 million, a 15% organic increase compared to the prior year. Operating margin expanded 190 basis points to 13.7% as a result of higher sales volume and production efficiencies. The Drug Discovery business expanded 21% over last year on strong demand for new products, including the Victor2 V, a benchtop system that integrates multiple detection technologies used in drug target identification and lead validation. Genetic Disease Screening grew 19% reflecting an increased demand for prenatal and neonatal testing as an early intervention practice.

Optoelectronics sales expanded to $121 million on 20% organic growth. Operating income increased 45% to $17.5 million. Operating margin grew to 14.5%, in part reflecting the benefits of shifting selected production to high-quality Asian manufacturing facilities. Results were strong across all three businesses. Telecom revenue expanded 50% on the strength of optical fiber networking component sales, which more than tripled. Industry demand and the strength of new product introductions in areas such as fiber optic testing also continued to drive growth.

Instruments sales of $176 million were up 79% over last year largely reflecting two acquisitions, and organic growth was 5%. Sales were strong in Asia Pacific and new products such as the ICP Optima 4000 DV system met with strong customer acceptance. Operating income expanded 560 basis points to 9.0%, on the strength of integration synergies.

Fluid Sciences sales increased to $60 million. Organic revenue growth was 19% on the strength of semiconductor and power generation business performance. Operating margins expanded 730 basis points to a record 16.9% attributable to higher volume, sale of unprofitable businesses and operational efficiencies.

Summarizing the Company s second quarter performance, Mr. Summe said "Our aggressive portfolio upgrade to higher-growth technology markets has positioned us well to continue to deliver double-digit organic growth, excellent operating margin expansion, and solid cash flow performance."

Unless otherwise stated, references throughout this release to operating income, operating margin, 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 $1.8 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.

Contact: PerkinElmer, Inc. Diane J. Basile, Tel: 781 431-4306 or PerkinElmer, Inc. Christopher Keenan, Tel: 781 431-4111

PerkinElmer, Inc.
Diane J. Basile, Tel: 781 431-4306
or
PerkinElmer, Inc.
Christopher Keenan, Tel: 781 431-4111

Web site: http://www.perkinelmer.com

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PerkinElmer Second Quarter Earnings Per Share up 42%

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