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PerkinElmer's Q4 Revenues Rise 20 Percent; CEO Sees Challenging Pharma Market

NEW YORK (GenomeWeb News) - PerkinElmer today reported that its fourth-quarter revenues rose 20 percent, while profits climbed 26 percent, with strong growth reported for both its Life and Analytical Sciences segment and Optoelectronics segment.
The firm generated revenues of $511.5 million in the quarter ended Dec. 30, 2007, compared with revenue of $427 million in the fourth quarter a year ago. Sales for its Life and Analytical Sciences segment rose 19 percent to $382.1 million from $320.6 million year over year. The Optoelectronics segment had sales of $129.4 million, up 22 percent from revenue of $106.3 million in the comparable period of 2007.
“We saw strong growth in our reagent product lines driven by strong acceptance of our new product introductions in the GPCR, kinase, and biomarker drug target classes with both biochemical and cellular based assays,” CFO Jeff Capello said during a conference call following the release of the firm’s financial results.
PerkinElmer's fourth-quarter net income rose to $52.6 million, or $.44 per share, from $41.7 million, or $.34 per share, in the 2006 fourth quarter.
The firm's R&D costs edged up 6.3 percent to $28.8 million from $27.1 million year over year, and its SG&A costs rose sharply to $126.9 million, up 27.3 percent from $99.7 million in last year's Q4.
“We continue to experience very good market conditions, across virtually every segment of the business, including newborn screening, prenatal and maternal health, molecular diagnostics, and now, cord blood,” President and newly elected CEO Robert Friel said during the call.
However, Friel provided a word of caution about the pharmaceutical end market this year. “In drug discovery, we believe the market will continue to be challenging this year with large pharma again being under more cost pressures than the biotech firms or the academic lab,” he said.
“Despite this, there will be several areas of growth for us due to investments we have made previously in new products and acquisitions” including cell-based assays, assay development services, custom synthesis of radiolabeled compounds, and cell imaging for high-content screening, Friel said.
“We're clearly seeing more growth on the reagent side than the instrument side,” he added. “So, our approach is to continue to drive new products particularly into the reagent area … particularly our cell-based assays and GPCR screening.”
For full-year 2007, PerkinElmer brought in revenues of $1.79 billion, a 20 percent increase over revenues of $1.55 billion in 2006. The firm’s net income for the year was $131.7 million, or $1.09 per share, a 10 percent increase over profits of $119.6 million, or $.95 per share, in 2006.
PerkinElmer expects fiscal 2008 revenue and EPS growth to be in the low double-digit to mid-teens.
The firm finished 2007 with cash and cash equivalents of $203.3 million.

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