Perkin-Elmer Reports Fourth Quarter Earnings Per Share of 72 Cents Before
Special Items
NORWALK, CT--(BW HealthWire)--August 5, 1998--Perkin-Elmer (NYSE:PKN) today
reported that net income before special items for the fourth quarter ended
June 30 increased 3 percent to more than $36 million, or $.72 per share,
from $35.1 million or $.70 per share in the prior year. Currency translation
in this quarter reduced earnings per share by $.09. Operating income for the
fourth quarter was $48.9 million, or $50 million before special items.
Operating income grew 25 percent before currency translation and excluding
the operating results of the Company's Tecan subsidiary, which were not
included in prior year figures. The Company's total net revenues for the
fourth quarter were $449 million, an increase of 20 percent. Excluding
Tecan, revenues grew 13 percent. Before currency effects and excluding
Tecan, revenues grew 17 percent.
Fiscal year 1998 yielded total net revenues of $1.5 billion, which
represents an increase of 12 percent over fiscal year 1997. Excluding Tecan,
revenues increased 8 percent. Before currency effects and excluding Tecan,
revenues grew 13 percent.
Earnings per share before special items increased by 9 percent to $2.53 per
share for fiscal 1998. This compares with $2.33 in fiscal 1997. Currency
translation reduced earnings by $.38 per share versus 1997. Before the
effects of currency translation, earnings per share increased 25 percent.
"This year represented the culmination of our efforts to redefine
Perkin-Elmer as the definitive source of essential tools and knowledge for
gathering and using biomedical and genomics information. We now have all the
pieces in place to achieve this vision," said Tony L. White, Perkin-Elmer's
chairman, president and chief executive officer. "We also have come to the
final stages of our profit improvement plan for Analytical Instruments and
are continuing to refine a strategy for that business that will increase
shareholder value. Despite the challenges we have faced -- the continuing
strength of the dollar and the deepening Southeast Asian economic crisis --
we have made substantial progress in setting the stage for the Company's
future growth. Today, Perkin-Elmer is the market leader with the resources
to create increasing shareholder value from the ongoing revolution in
biological sciences and molecular medicine. With revenues approaching $1
billion from our life sciences business, and with our new genomics venture
aiming to become the leading information source for this industry, we
believe that the future for Perkin-Elmer is brighter than ever."
Business Segment Highlights
Perkin-Elmer is comprised of three business segments. Its life sciences
division, known as PE Biosystems, its traditional analytical instruments
business, and the recently formed Celera Genomics Corporation.
PE Biosystems -- Life Sciences Division
Revenue growth for PE Biosystems -- which includes Applied
Biosystems, PerSeptive Biosystems, Molecular Informatics, Tropix,
GenScope, and Tecan -- was strong at $278 million for the fourth
quarter, an increase of 34 percent over the same period in the
previous year. Revenues grew 25 percent excluding currency effects and
Tecan revenues. Full year revenues for the life sciences division grew
by 23 percent to $922 million. Excluding Tecan, revenues grew 16
percent. Before the impact of currency translation and excluding
Tecan, revenues grew 21 percent. Operating profit for the year rose by
20 percent. Operating profit rose by 28 percent excluding currency
effects and Tecan.
Highlights for the year for the Life Sciences division included:
- The acquisitions of PerSeptive Biosystems and Molecular
Informatics
- The announcement of ultra-high throughput genetic analysis
systems
- The rapid expansion in the forensic science market
- The growth by nearly 30 percent of molecular biology-based
reagents, including PCR, with the strongest growth in genetic analysis
- Sales of sequence detection systems more than doubled Fourth
quarter orders grew by 34 percent in Applied Biosystems, with a 49
percent increase in orders for genetic analysis.
Analytical Instruments Division
The Analytical Instruments Division reported a 3 percent increase
in fourth quarter revenues to $171 million. Before the effects of
currency translation, revenues increased by 7 percent. The division's
operating profit declined 5 percent for the quarter. Excluding the
effects of currency, operating profit increased 8 percent.
For the twelve months, revenues were $609 million, down 2
percent. Before the effects of currency translation, they increased by
3 percent. Operating profit for the year rose by 2 percent. Before the
effects of currency, operating profit rose 17 percent.
Achievements related to the Analytical Instruments Division during
the year included:
- The introduction of a new line of atomic absorption products
- The reorganization of European operations
- Sales growth of 25 percent in Latin America
Celera Genomics Corporation
Commenting on Celera, the genomics company recently formed by
Perkin- Elmer, White noted, "We are making significant progress in
setting up Celera. Our discussions with potential pharmaceutical
customers are going well. We're well on our way to making this a
successful commercial entity. An extremely talented group of people is
being assembled under the leadership of Dr. J. Craig Venter and Celera
announced this morning the first members of our scientific advisory
board. Our financial and legal advisors are evaluating a range of
structural alternatives for Celera, from off-balance sheet financing
to targeted stock. We'll take a close look at all of our options, with
the goal of selecting the best mechanisms for creating significant
long-term shareholder value while preserving short-term shareholder
value."
Special Items
In fiscal year 1998, Perkin-Elmer recorded a special charge and certain
non-recurring costs of $48.1 million ($43.3 million after taxes or $.87 per
diluted share) related to the acquisition of PerSeptive Biosystems, Inc. In
the same period, the Company also recorded a charge for in-process research
and development related to the acquisition of Molecular Informatics, Inc. In
fiscal year 1997, the Company recorded a pre-tax special charge of $26.8
million primarily for in-process research and development related to the
acquisition of GenScope, Inc. and a net restructuring charge of $13.0
million for the analytical instruments business. Also in fiscal 1997
Perkin-Elmer adopted Statement of Financial Accounting Standards No. 121,
which resulted in an after-tax charge of $6.8 million for the write down of
certain long-term assets. Additional special items in both years included
gains on equity investments.
Perkin-Elmer will hold a conference call at 12:00 noon ET on August 5 to
discuss this press release and other aspects of its business. To participate
in this call, those interested should phone (203) 761- 2617 to receive the
conference number. This and other information about the Company is also
available on the World Wide Web at www.perkin-elmer.com or by phoning (800) 762-
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