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PerkinElmer Q3 Revenues up 12 Percent, Beat Analyst Estimates on Top and Bottom Line

NEW YORK (GenomeWeb News) – PerkinElmer reported after the close of the market on Thursday that revenues during the third quarter increased 13 percent year over year as the Human Health segment grew 24 percent.

The company reported revenues of $509.6 million for the three months ended Sept. 30, up from $452.9 million a year ago, surpassing the consensus Wall Street estimate of $505.5 million. Human Health revenues rose to $257.2 million, up from $206.6 million, while Environmental Health revenues grew 2 percent to $252.4 million from $246.3 million.

Organically, company-wide revenues were up 6 percent year over year. Human Health grew 10 percent organically, while acquisitions-related revenues added 18 percentage points to growth, all resulting from PerkinElmer's purchase of Caliper Life Sciences a year ago.

Within the segment, both the diagnostics and research business saw "strong demand" from the emerging markets, especially Asia, PerkinElmer Chairman and CEO Robert Friel said on a conference call following the release of the firm's earnings results.

Newborn screening, medical imaging, and infectious disease testing all saw double-digit growth year over year during the quarter, he added.

CFO Frank Wilson said on the call that across the company, recurring revenues increased in the mid-single digits, while instruments were up in the low-double digits, due primarily to strong demand in Human Health.

The diagnostics business within the segment was up in the low-double digits on an organic basis, while the research business grew in the high-single digits on the strength of automation, high-content screening, imaging and liquid handling capabilities, as well as relatively easy year-over-year comparisons.

Environmental Health was up 3 percent organically. Growth was driven primarily by the service business and the sale of environmental analysis products into the emerging markets, Friel said.

During the quarter R&D expenses grew 8 percent to $32.4 million from $30.1 million a year ago. Its SG&A costs were up 9 percent to $145.4 million from $133.1 million.

The Waltham, Mass.-based company's profit narrowed to $29.6 million, or $.26 per share, from $36.6 million, or $.32 per share, a year ago. Adjusted EPS was $.45, edging out the average analyst estimate of $.44.

Wilson said on the call that for the fourth quarter adjusted revenues are expected to be in the $570 million to $580 million range. Currency effects are expected to provide headwinds of 1 percent, while organic growth is anticipated in the 2 percent to 4 percent range.

Adjusted EPS for the fourth quarter is projected in the $.64 to $.67 range, he added.

For full-year 2012 PerkinElmer guided to organic revenue growth in the mid-single digits. Adjusted EPS was raised to a range of $2.05 to $2.07. The company had previously guided to adjusted EPS of between $2.00 and $2.05.

PerkinElmer exited the quarter with $170.8 million in cash and cash equivalents.

"Despite an uncertain macroeconomic environment, we remain confident in our business model and our ability to execute, giving us the conviction to raise our full-year adjusted earnings-per-share guidance while continuing to invest in future growth and productivity initiatives," Friel said in a statement.

In Friday morning trade on the New York Stock Exchange PerkinElmer's stock jumped 8 percent to $30.72

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