NEW YORK, Oct. 29 - PerkinElmer today said that despite and increase in overall revenues, an uptick in R&D and other spending conspired to narrow third-quarter net income.
For the period ended Oct. 29, PerkinElmer reported revenues of $366 million from $348 million in the year-ago period. The Life Sciences division reported a 57-percent spike in third-quarter revenue, to $117.7 million. However, the bulk of that came from PerkinElmer's acquisition of Packard BioScience last year. Not counting the acquisition, revenue actually declined 7 percent, the company said.
Meantime, "weak instrument sales" in the third quarter pushed revenues for the Analytical Instruments to $115.1 million, down from $130.2 million reported year over year, PerkinElmer said.
As GenomeWeb reported today, PerkinElmer said it will combine these two divisions into one unit called Life and Analytical Sciences. Peter Coggins, president of the current Life Sciences division, will run the new unit as PerkinElmer makes a drive to reign in SG&A spending and offer life-science customers "a single face."
SG&A expenses swelled to nearly $110 million in the third quarter 2002 from $87 million year over year as R&D spending increased to $20.5 million from $18.5 million one year ago, PerkinElmer reported. CEO Gregory Summe said the new Life and Analytical Sciences division, which will be based in Boston, is expected to save the company around 15 percent of an estimated $300 million in combined SG&A spending.
For the third quarter, PerkinElmer said its net income fell to $7.1 million, or $.06 per share, from $31.2 million, or $.30 per share, a year earlier. The company also posted earnings from continuing operations of $9.75 million, or $.08 per share, compared with $34 million, or $.33 per share, last year.
PerkinElmer said it had around $97.5 million in cash and cash equivalents as of Sept. 30.