WALTHAM, Mass.--(BUSINESS WIRE)--Jan. 24, 2008--PerkinElmer, Inc. (NYSE: PKI), a global leader in Health Sciences and Photonics markets, today reported financial results for the fourth quarter and fiscal year ended December 30, 2007. For the fourth quarter 2007, the Company reported GAAP earnings per share from continuing operations of $0.46. On a non-GAAP basis, which includes the adjustments noted in the attached reconciliation, the Company announced adjusted earnings per share for the fourth quarter 2007 of $0.45, which is above the Company's previously forecasted range of $0.42 to $0.44.
Revenue for the fourth quarter 2007 was $511.5 million, an increase of 20% versus the fourth quarter 2006. Revenue growth was 19% in Life and Analytical Sciences and 22% in Optoelectronics, compared to the same period a year ago. From an end- market perspective, fourth quarter 2007 revenue from Health Sciences, which represented 84% of total revenues for the quarter, increased 19% over the fourth quarter 2006. This increase was driven by strong growth across most businesses, particularly in genetic screening, medical imaging, and analytical sciences. Changes in foreign exchange rates and acquisitions each contributed approximately 5% to the fourth quarter 2007 revenue growth.
"Our excellent fourth quarter results finish off a year of strong growth for the Company," said Gregory L. Summe, Chairman and CEO of PerkinElmer, Inc. "The solid fundamentals across our portfolio of businesses reflect the investments that we have made in new products, services and geographic expansion. During the quarter, we also completed the acquisition of ViaCell, a leader in the processing and storage of stem cells from umbilical cord blood. We believe that we are very well positioned to sustain our growth momentum in 2008."
GAAP operating profit for the fourth quarter 2007 was $51.1 million, compared to $52.2 million for the same period a year ago. On a non-GAAP basis, which includes the adjustments noted in the attached reconciliation, adjusted operating profit for the fourth quarter 2007 was $75.5 million, up 18% as compared to $64.0 million in the fourth quarter 2006.
The Company generated cash flow from continuing operations of $96.6 million in the fourth quarter 2007, up 15% over the prior year. In addition, the Company repurchased 1.0 million shares of its common stock in the fourth quarter 2007. This leaves approximately 1.9 million shares remaining of the Company's stock repurchase program. At December 30, 2007, the Company had cash and cash equivalents of $203.3 million and net debt (defined as long-term debt plus short-term debt, less cash and cash equivalents) of $313.3 million.
Financial Overview by Reporting Segment
Life and Analytical Sciences reported revenue of $382.1 million for the fourth quarter 2007, up 19% from revenue of $320.6 million in the fourth quarter 2006, driven primarily by growth in the Company's genetic screening, analytical sciences, and laboratory services businesses, as well as a positive impact from acquisitions, new product introductions, and changes in foreign exchange rates.
The segment's GAAP operating profit for the fourth quarter 2007 was $40.0 million, compared to $40.9 million for the same period a year ago. On a non-GAAP basis, which includes the adjustments noted in the attached reconciliation, the segment's adjusted operating profit for the fourth quarter 2007 was $59.9 million, up 17% as compared to $51.3 million in the fourth quarter 2006.
Optoelectronics reported revenue of $129.4 million for the fourth quarter 2007, up 22% from revenue of $106.3 million in the fourth quarter 2006, driven primarily by revenue growth in the Company's medical imaging and specialty lighting businesses, as well as a positive impact from new product introductions and changes in foreign exchange rates.
The segment's GAAP operating profit for the fourth quarter 2007 was $22.6 million, compared to $19.8 million for the same period a year ago. On a non-GAAP basis, which includes the adjustments noted in the attached reconciliation, the segment's adjusted operating profit for the fourth quarter 2007 was $26.2 million, up 28% as compared to $20.4 million in the fourth quarter 2006. quarter 2006.
Financial Guidance
For the full year 2008, the Company expects revenue to increase in the low double digits to mid-teens, with acquisitions and changes in foreign exchange rates contributing approximately 500 basis points, and on a non-GAAP basis, which is expected to include the adjustments noted in the attached reconciliation, adjusted earnings per share to grow in the low double digits to mid-teens, which includes the previously announced earnings dilution from the ViaCell acquisition.
For the first quarter 2008, the Company projects revenue to increase in the low double digits to mid-teens with acquisitions and changes in foreign exchange rates contributing approximately 700 basis points. The Company expects to earn GAAP earnings per share in the range of $0.18 to $0.19, 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 $0.26 to $0.27.
Conference Call Information
The Company will discuss its fourth quarter results in a conference call on January 24, 2008, at 5:00 p.m. Eastern Time (ET). To access the call, please dial (617) 597-5346 prior to the scheduled conference call time and provide the access code 69812791. A replay of this conference call will be available approximately two hours after the call. The replay phone number is (617) 801-6888 and the access code is 34068087.
A live audio webcast of the call will be available on the "Investors" section of our 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 our Web site approximately two hours after the call and will be available through February 24, 2008.
Use of Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings announcement also contains non-GAAP financial measures. The reasons that we use these measures, a reconciliation of these measures to the most directly comparable GAAP measures, and other information relating to these measures are included below following our GAAP financial statements.
Factors Affecting Future Performance
This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to estimates and projections of future earnings per share, cash flow and revenue growth and other financial results, developments relating to our customers and end-markets, and plans concerning business development opportunities. Words such as "believes," "intends," "anticipates," "plans," "expects," "projects," "forecasts," "will" and similar expressions, and references to guidance, are intended to identify forward-looking statements. Such statements are based on management's current assumptions and expectations and no assurances can be given that our assumptions or expectations will prove to be correct. A number of important risk factors could cause actual results to differ materially from the results described, implied or projected in any forward-looking statements. These factors include, without limitation: (1) our failure to introduce new products in a timely manner; (2) our ability to execute acquisitions and license technologies, or to successfully integrate acquired businesses and licensed technologies into our existing business or to make them profitable; (3) our failure to protect adequately our intellectual property; (4) the loss of any of our licenses or licensed rights; (5) our ability to compete effectively; (6) fluctuation in our quarterly operating results and our ability to adjust our operations to address unexpected changes; (7) our ability to produce an adequate quantity of products to meet our customers' demands; (8) our failure to maintain compliance with applicable government regulations; (9) regulatory changes; (10) our failure to comply with health care industry regulations; (11) economic, political and other risks associated with foreign operations; (12) our ability to retain key personnel; (13) restrictions in our credit agreements; (14) our ability to realize the full value of our intangible assets; and (15) other factors which we describe under the caption "Risk Factors" in our most recent annual report on Form 10-K and in our most recent quarterly report on Form 10-Q and in our other filings with the Securities and Exchange Commission. We disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.
PerkinElmer, Inc. is a global technology leader driving growth and innovation in Health Sciences and Photonics markets to improve the quality of life. The Company reported revenues of $1.8 billion in 2007, has 9,100 employees serving customers in more than 125 countries, and is a component of the S&P 500 Index. Additional information is available through www.perkinelmer.com or 1-877-PKI-NYSE.
For financial information, including statements and balance sheets, see attached document.
CONTACT:
PerkinElmer, Inc.
Investor Relations:
Michael A. Lawless, 781-663-5659
or
Media Contact:
Kevin J. Lorenc, 781-663-5701
SOURCE: PerkinElmer, Inc.