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PerkinElmer's Q1 Revenues Climb 14 Percent on Human Health Segment Strength

NEW YORK (GenomeWeb News) – PerkinElmer's first-quarter revenues rose 14 percent year over year with particular strength in its Human Health segment, the company reported after the close of the market on Thursday.

For the three months ended April 1, total revenues were $510.9 million, up from $447.2 million a year ago, and nudging past analyst estimates of $510.4 million. Organically, revenues increased 6 percent year over year.

The Waltham, Mass.-based firm's Human Health business drove growth companywide as revenues for the segment rose to $254 million from $201.3 million a year ago. Organically, the segment grew 9 percent.

Driving growth in the segment was the Caliper business, which PerkinElmer acquired late last year. In the first quarter, it contributed about $40 million in revenues, PerkinElmer officials said on a conference call following the earnings release.

"Particularly, the former Caliper Life Science business performed very well as revenue growth accelerated from the strong performance in 2011," PerkinElmer Chairman and CEO Robert Friel said on the call.

Life Sciences and Technology, comprised of Caliper and PerkinElmer's research businesses, grew in the mid-single digits year over year. Diagnostics, the other business in Human Health, grew at a low-double digit clip organically.

Environmental Health revenues increased 4 percent year over year to $256.9 million from $245.9 million, with organic growth at 3 percent. Inorganic analysis offerings and end-market drivers such as water and chemical analysis were revenue drivers in the segment, Friel said.

By product category, recurring revenue, which includes consumables, reagents, and services, increased organically in the mid-single digits year over year, while instrument revenues improved in the high-single digits, CFO Frank Wilson said on the call.

The firm's R&D spending during the quarter increased to $32.6 million from $26.2 million, a 24 percent spike. Caliper spent a higher percentage of revenue on R&D than the company as whole, Friel said, adding that company is maintaining that R&D level for Caliper.

PerkinElmer's SG&A spending rose 18 percent to $156.8 million from $132.7 million. The firm also spent $6.2 million on restructuring and leasing charges in Q1 2012.

PerkinElmer's net income was $22.6 million, or $.20 per share, down from $24.9 million, or $.22 per share, a year ago. The company said EPS in Q1 2012 was negatively affected by non-cash charges related to acquisitions it made in 2011. Last year, PerkinElmer made seven M&A deals.

On a non-GAAP basis, EPS was $.43, beating Wall Street estimates of $.41.

PerkinElmer said that it made a $17 million contribution to its defined benefit pension plan during the first quarter and received a tax refund of $8.9 million in the year-ago period.

On the call Friel said that he expects academic spending in the US in the back-half of 2012 to be flat to down slightly. But, he added, there is interest in certain PerkinElmer products including its higher-end imaging instruments, "so there are areas within [academia], although the spending is slowing down, that [researchers are] still spending in. The key is … just making sure for us that we're in the right places."

The company raised its full-year non-GAAP EPS to a range of $2 and $2.05 from previous guidance of between $1.98 and $2.04.

PerkinElmer ended the first quarter with $144.8 million in cash and cash equivalents.

In early Friday trade on the New York Stock Exchange, shares of PerkinElmer were up 3 percent at $27.64.

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