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PerkinElmer's Q2 Revenues Drop 14 Percent; Shares Hit Hard

NEW YORK (GenomeWeb News) – PerkinElmer reported after the close of the market on Thursday that its second-quarter revenues fell 14 percent, or 9 percent on an organic basis, amid continuing constraints on the capital equipment market.

The Waltham, Mass.-based firm brought in revenues of $434.6 million for the three-month period ended July 5, compared to revenues of $505 million for the second quarter of 2008. Analysts, on average, had expected the firm to report revenues of $450.7 million.

Its Human Health segment had revenues of $184.9 million, while its Environmental Health segment reported revenues of $249.7 million.

PerkinElmer's profit for the quarter fell to $21.5 million, or $.18 per share, from $23.7 million, or $.20 per share, year over year. That decline came despite a decrease in the firm's spending. Its R&D spending for the quarter fell 11 percent to $25.6 million from $28.9 million, and its SG&A expenses decreased 13 percent to $124 million from $141.8 million.

In early Friday trade on the New York Stock Exchange, shares of PerkinElmer tumbled 15 percent to $16.25.

The firm finished the quarter with $151.3 million in cash and cash equivalents.

"As we look toward the second half of 2009, we believe that we will see continued growth in research, diagnostic screening, food and consumer safety testing and laboratory services," Robert Friel, chairman and CEO of PerkinElmer, said in a statement. "However, due to continued constraints on capital spending impacting our medical imaging business and a higher tax rate than forecasted, we believe achieving the high-end of our original guidance is unlikely, therefore, we are narrowing our full-year revenue and earnings guidance."

PerkinElmer said that it expects a mid single-digit decline in organic revenues for full-year 2009, with EPS of between $.81 and $.87.

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