Biotech Values

[DewDiligence]

PKI Reports 1Q11 Results

[PKI, which is on my watchlist of biotech “tools” companies, is putting up solid growth numbers and trades at what appears to be a reasonable valuation. They just raised 2011 EPS guidance.]

http://finance.yahoo.com/news/PerkinElmer-Announces-bw-4284305614.html?x=0&.v=1

›Thursday May 5, 2011, 4:19 pm

• Revenue from continuing operations of $448 million, reported growth of 14% and organic revenue growth of 10%

• Operating income of $39 million; Adjusted operating income from continuing operations of $59 million, up 160 basis points

• GAAP earnings per share from continuing operations of $0.22; Adjusted earnings per share of $0.34, up 36%

• Raises full year adjusted EPS guidance

WALTHAM, Mass.--(BUSINESS WIRE)--PerkinElmer, Inc. (NYSE:PKI - News), a global leader focused on improving the health and safety of people and the environment, today reported financial results for the first quarter ended April 3, 2011. The Company reported GAAP earnings per share from continuing operations of $0.22, as compared to $0.17 in the first quarter of 2010. On a non-GAAP basis, which includes the adjustments noted in the attached reconciliation, the Company announced adjusted earnings per share of $0.34, exceeding the Company’s prior guidance of $0.29-$0.31, representing an increase of 36% as compared to the first quarter of 2010.

Revenue from continuing operations in the first quarter of 2011 was $447.9 million, up 14% as compared to the same period a year ago. Organic revenue, which includes the adjustments noted in the attached reconciliation, increased 10% as compared to the first quarter of 2010. Revenue from continuing operations in the Human and Environmental Health segments increased by 7% and 20%, respectively, as compared to the same period a year ago. Organic revenue, which includes the adjustments noted in the attached reconciliation, increased 2% in the Human Health segment and 17% in the Environmental Health segment compared to the first quarter of 2010.

“We are pleased to have started 2011 with better than expected growth in both revenue and adjusted earnings per share,” said Robert Friel, chairman and chief executive officer of PerkinElmer. “Our investments in new products, services and geographic expansion, coupled with the traction gained on our multi-year productivity initiatives continue to generate strong financial results.”

Operating profit from continuing operations for the first quarter of 2011 was $39.3 million, as compared to $30.6 million for the same period a year ago. Adjusted operating profit, which includes the adjustments noted in the attached reconciliation, increased by 160 basis points as a percentage of revenue to $59.2 million, as compared to $45.8 million in the first quarter of 2010.

Financial Overview by Reporting Segment


Human Health:

• Revenue from continuing operations of $202.0 million for the first quarter of 2011, as compared to $188.6 million for the first quarter of 2010.

• Operating profit of $20.8 million, as compared to $21.8 million for the same period a year ago.

• Adjusted operating profit was 17.9% as a percentage of revenue, an increase of approximately 40 basis points as compared to the first quarter of 2010.


Environmental Health:

• Revenue from continuing operations of $245.9 million for the first quarter of 2011, as compared to $205.0 million for the first quarter of 2010.

• Operating profit of $29.1 million, as compared to $19.0 million for the same period a year ago.

• Adjusted operating profit was 13.6% as a percentage of revenue, an increase of approximately 240 basis points as compared to the first quarter of 2010.


Financial Guidance

For the full year 2011, the Company forecasts organic revenue to increase in the mid single digit range relative to 2010. The Company forecasts GAAP earnings per share from continuing operations in the range of $1.05 to $1.10 and on a non-GAAP basis, which is expected to include the adjustments noted in the attached reconciliation, adjusted earnings per share in the range of $1.62 to $1.67 as compared to the Company’s previously communicated guidance range of $1.56 to $1.64.

Conference Call Information

The Company will discuss its first quarter results and its outlook for business trends in a conference call on Thursday, May 5, 2011 at 5:00 p.m. Eastern Time (ET). To access the call, please dial [phone] prior to the scheduled conference call time and provide the access code 91223615. A playback of this conference call will be available beginning 8:00 p.m. ET, Thursday, May 5, 2011. The playback phone number is [phone] and the code number is 84672642.

A live audio webcast of the call will be available on the Investor section of the Company’s Web site, www.perkinelmer.com. Please go to the site at least 15 minutes prior to the call in order to register, download, and install any necessary software. An archived version of the webcast will be posted on the Company’s Web site for a two week period beginning approximately two hours after the call.

About PerkinElmer

PerkinElmer, Inc. is a global leader focused on improving the health and safety of people and the environment. The company reported revenue of approximately $1.7 billion in 2010, has about 6,200 employees serving customers in more than 150 countries, and is a component of the S&P 500 Index. Additional information is available through 1-877-PKI-NYSE, or at www.perkinelmer.com.‹