Jan 28, 2008 EPS from continuing operations of $0.46; Adjusted EPS of $0.45 exceeds guidance
Cash flow from continuing operations of $97 million, up 15%
WALTHAM, Mass.- 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.
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, http://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.
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 http://www.perkinelmer.com or 1-877-PKI-NYSE.
