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PerkinElmer Sees 11 Percent Revenue Boost in Q3

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – PerkinElmer reported after the close of the market Thursday that its revenues for the third quarter increased 11 percent, with strong growth coming from both its Human Health and Environmental Health divisions.

In the three months ended Oct. 3, the company posted revenues of $419.1 million, up from $377 million in the year-ago period. The results easily beat analysts' consensus estimate for revenues of $401.9 million.

Revenues for PerkinElmer' Human Health segment increased 9 percent to $194.5 million, compared to $179.1 million in the third quarter of 2009. The firm's Environmental Health segment posted revenues of $224.6 million for the quarter, up over 13 percent from $197.9 million in the year-ago quarter.

The firm's profit dipped to $13.4 million, or $0.11 per share, during the quarter from $13.6 million, $0.12 per share, a year ago on a GAAP basis. On an adjusted basis, EPS was $0.31 for the quarter, compared to $0.27 a year ago. Analysts had predicted EPS of $.29 for Q3 2010.

"Our double-digit organic revenue growth is a testament to the strength we are seeing across many of our end markets and the benefits arising from our continued strategic focus on increasing the growth profile," Robert Friel, chairman and CEO of PerkinElmer, said in a statement.

"We believe this momentum will continue into the fourth quarter and combined with the expected completion of the divestiture of our Illumination and Detection Solutions business will better position us in the execution of our near-term and long-term strategic priorities," Friel added.

PerkinElmer sold its IDS business in August to the private equity group Veritas Capital Fund for around $500 million. Completing the sale of IDS will enable PerkinElmer to reduce the complexity of the company, free up capital to invest in remaining businesses, and increase the percentage of its revenue that will come from service and consumables to 60 percent, company officials said during a conference call Thursday evening.

Friel said on the call that in the third quarter the company made "significant progress" in all of its focus areas, including emerging territories, breaking into adjacent markets, new products, and business development.

Friel emphasized growth in China, India, and Brazil, which together grew over 20 percent year-over-year, and noted that China's State Food and Drug Administration is currently outfitting 130 of its labs with over 200 PerkinElmer drug development quality assurance instruments.

The company spent $23.8 million on R&D during the quarter, up from $23.3 million. SG&A costs rose to $120.5 million from $112.8 million a year ago.

PerkinElmer said it had $251 million in cash and cash equivalents as of Oct. 3.

The company raised its forecast for full-year 2010 earnings per-share to between $1.29 and $1.31 from its prior forecast of $1.24 to $1.29, on a non-GAAP basis.

In early Friday trade on the New York Stock Exchange, shares of PerkinElmer were up 1 percent at $24.37.

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