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PerkinElmer Posts 15 Percent Q4 Revenue Growth

NEW YORK (GenomeWeb News) – PerkinElmer reported after the close of the market Thursday that its fourth-quarter revenues increased 15 percent, or 6 percent organically, over the fourth quarter of 2010.

The Waltham, Mass.-based analytical tools firm brought in total revenues of $540.2 million for the three-month period ended Jan. 1, 2012, compared to $470 million for the fourth quarter of 2010. It beat analysts' consensus estimate for revenues of $537.1 million.

PerkinElmer's Human Health segment reported 20 percent revenue growth to $258.5 million from $215.7 million. Its Environmental Health business grew 11 percent to $281.7 million from $254.2 million. On an organic basis, Human Health increased revenues 5 percent and Environmental Health was up 7 percent.

PerkinElmer posted a net loss of $84.6 million, or $.75 per share, versus a profit of $292.9 million, or $2.49 per share, for Q4 2010. On an adjusted basis, it had earnings per share of $.62 versus adjusted EPS of $.45 for the fourth quarter of 2010. PerkinElmer beat analysts' expected EPS of $.51.

The most recent quarter includes a $69.5 million charge tied to defined benefit plan liabilities of divested businesses and a one-time, non-cash tax charge of $79.7 million related to the repatriation of approximately $350 million of international earnings, which was the result of the Caliper Life Sciences acquisition that was completed in early November.

Its R&D spending for the quarter was $31.5 million, up around 24 percent from $25.5 million, and its SG&A spending jumped 78 percent to $222.5 million from $125.2 million. The firm also reported asset impairment charges of $3 million and restructuring and lease charges of $10.1 million.

For full-year 2011, PerkinElmer had revenues of $1.92 billion, up 13 percent from $1.7 billion in 2010. It fell short of analysts' estimate of $1.94 billion.

The Human Health segment had revenues of $887.2 million for the year, up from $796.3 million, while Environmental Health grew revenues to $1.03 billion from $908 million.

"During 2011 we also made significant progress improving the growth profile of the company through the introduction of several market-driven, innovative products and a number of acquisitions that expanded our capabilities and considerably increased our addressable markets," PerkinElmer Chairman and CEO Robert Friel said on a conference call following the release of the results. "In particular, we significantly strengthened our capabilities in molecular analysis, imaging, sample preparation, and informatics, and combined with our historical strength we now believe we have put together a portfolio of highly differentiated offerings to serve the diagnostics, research, and environmental markets."

He said that the Caliper acquisition will increase opportunities across the firm. "While we report this business within the research segment, we are very optimistic that some of the, for example, microfluidic capability is going to be able to be deployed on the food pathogen area as well as the diagnostic side," Friel said.

"Caliper never really had a good footprint in Asia," Kevin Hrusovsky, former CEO of Caliper and current president of life sciences and technology for PerkinElmer, added on the call. "So the technologies have a lot of potential there. One of the really interesting and compelling reasons for the merger is to … get this footprint in Asia established for Caliper."

The firm's profit for the year was $6.7 million, or $.06 per share, versus $391 million, or $3.31 per share, for 2010. On an adjusted basis, 2011 EPS was $1.83 versus $1.36 and ahead of Wall Street's consensus estimate of $1.68.

PerkinElmer's R&D spending for the year increased to $115.8 million from $94.8 million, and its SG&A costs jumped to $628.6 million from $489.9 million.

The firm finished the year with $142.3 million in cash and cash equivalents.

Company officials were asked on the call about priorities for use of cash and responded that the firm would use its cash primarily to de-lever over the next several months, but aims to become active again on the M&A side after that.

Friel said the reason for the pause in acquisition activity isn't just financial. "We've got a couple of significant integrations in front of us," with the Caliper acquisition as well as the purchases of a few bioinformatics firms, said Friel. Earlier in 2011 PerkinElmer purchased Labtronics,Geospiza, and CambridgeSoft.

He said that PerkinElmer would continue to be opportunistic in making acquisitions for all parts of its business. But, he added, that the diagnostics market is "a significant priority for us."

"A lot of our diagnostic tests have been immunoassays and protein-based, and Caliper brings us some very interesting technology around molecular or DNA testing," he said. "So we also down the road look to deploy some of that in our diagnostic channel."

For FY 2012 PerkinElmer expects revenues growth of 10 to 12 percent, Friel said on the call, and organic revenue growth in the mid-single digits with GAAP EPS from continuing operations of between $1.22 and $1.28. On a non-GAAP basis, the firm expects EPS of between $1.98 and $2.04 — above Wall Street's estimate of $1.92.

In early Friday trade on the New York Stock Exchange, shares of PerkinElmer jumped 8 percent to $26.77.

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