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PerkinElmer's Q2 Revenues Spike 8 Percent on Strong Human Health Growth

NEW YORK (GenomeWeb News) – PerkinElmer reported after the close of the market on Thursday that its revenues for the second quarter increased 9 percent year over year, including 18 percent growth in its Human Health segment.

Companywide, PerkinElmer's revenues grew to $521.8 million from $479.1 million in the year-ago period. Its adjusted revenues were up 10 percent at $532.3 million, but missed the consensus Wall Street estimate of $537.1 million. Currency exchange provide a headwind of around $7 million, company officials said on a conference call following the release of the results.

Revenues grew 5 percent year over year on an organic basis, the company said.

Human Health tallied $258.4 million in revenues, up from $218.8 million a year ago, while Environmental Health revenues inched up 1 percent to $263.4 million from $260.2 million.

PerkinElmer CFO Frank Wilson said on the call that the firm's diagnostics business saw revenue growth in the mid-teens, "with notable contributions from both our screening and medical imaging businesses." He also noted that organic revenue from the Caliper Life Sciences business, which PerkinElmer acquired last year for $600 million, grew in the mid-single digits for the quarter.

PerkinElmer Chairman and CEO Robert Friel added on the call that the company is seeing some weakness in the pharmaceutical end market, particularly in small molecules. "Our focus is to continue to migrate into some of these higher-growth areas, like biotherapeutics, epigenetics, next-gen sequencing," he said. "Obviously, that was one of the big incentives or benefits of buying Caliper."

PerkinElmer increased its net profit to $33.6 million, or $.29 per share, from $29.8 million, or $.26 per share, a year ago. On an adjusted basis, EPS was $.53, beating the consensus Wall Street expectation of $.49.

Its R&D costs jumped 22 percent to $34.1 million from $28.0 million, while SG&A spending rose 8 percent to $149.7 million from $138.4 million.

"We've had an excellent first half in 2012 despite the macroeconomic environment and foreign currency headwinds," Friel said in a statement. "While we don't expect economic conditions to improve over the balance of the year, our strong performance in the first half enables us to accelerate investments in our long term growth initiatives in the second half."

The Waltham, Mass.-based company finished the quarter with $171.4 million in cash and cash equivalents.

For the third quarter, the firm expects adjusted revenue of between $495 million and $505 million, with organic revenue growth in the range of 3 percent to 5 percent. Adjusted EPS for Q3 is expected to be between $.42 and $.44.

It reiterated revenue guidance for full-year 2012 of organic growth in the mid-single digit range compared to 2011, but lowered its estimate for GAAP EPS from continuing operations to a new range of $1.21 to $1.26. PerkinElmer previously had guided to a range of between $1.27 and $1.32.

Its FY 2012 adjusted EPS was reaffirmed at the previously stated range of $2.00 to $2.05.

In Friday morning trade on the New York Stock Exchange shares of PerkinElmer were up 6 percent at $26.35.

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