PE Biosystems Reports Sharply Higher Earnings and Celera Genomics Makes Progress in Establishing Operations.NORWALK Norwalk (nôr`wôk'). 1 City (1990 pop. 94,279), Los Angeles co., S Calif.; settled in the 1850s, inc. 1957. With the arrival (1875) of the Southern Pacific RR, it became a center for the dairy and logging industries, but , CT--(BW HealthWire)--April 29, 1999-- Revenues at PE Biosystems Grow 37 Percent and Operating Profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. Climb 67 Percent The Perkin-Elmer Corporation (NYSE NYSE See: New York Stock Exchange : PKN PKN Polish Committee for Standardization PKN Protestantse Kerk Van Nederland (Dutch church) ), announced third-quarter results today for its two operating businesses. Earlier this week, shareholders approved a corporate reorganization, which will result in a change in name to PE Corporation and the creation of separate securities for PE Biosystems Group (NYSE: PEB PEB Physical Evaluation Board PEB Presidential Emergency Board PEB Post Exposure Bake PEB Professional Engineers Board (Singapore) PEB Pre-Engineered Building PEB Personal Electronic Ballot PEB Performance Evaluation Board ) and Celera Genomics Group (NYSE: CRA See Community Reinvestment Act. ) that track the performance of these two businesses. The Company's Analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. Instruments business, which is being sold, is reflected as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. in PE Biosystems' results. PE Biosystems Group For the quarter ended March 31, revenues for PE Biosystems Group, excluding Tecan, increased 37 percent to $305.9 million, compared with $223.3 million in the prior year period. During this quarter, PE Biosystems entered into a lease agreement with Celera Genomics Group, covering ABI Abi (ā`bī) [short for Abijah], in the Bible, King Hezekiah's mother. (Application Binary Interface) A specification for a specific hardware platform combined with the operating system. Prism(tm) 3700 DNA DNA: see nucleic acid. DNA or deoxyribonucleic acid One of two types of nucleic acid (the other is RNA); a complex organic compound found in all living cells and many viruses. It is the chemical substance of genes. Analyzers. For the quarter, revenues from sales of those instruments to Celera were $5.2 million. If the leased instruments had been sold to Celera, total PE Biosystems revenues would have been $319 million, an increase of nearly 43 percent over the prior year. Currency translation increased this quarter's revenues by less than 2 percent. The Group's backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. for the third quarter was $207 million, up nearly 150 percent compared with last year. The backlog does not include revenue from Celera leases due beyond 12 months. Results, including the Group's minority investment in Tecan, are reported below. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the Group climbed nearly 68 percent to $43.3 million, or 83 cents pro forma per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the third quarter before one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges related to the reorganization and certain merger-related expenses. Excluding special items, pro forma income from continuing operations for the comparable period last year was $25.8 million, or 51 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . Operating profits for PE Biosystems grew 67 percent to $58.8 million, or 19.2 percent of revenues. Excluding the effects of currency translation, the Group's operating profits grew 62 percent. PE Biosystems benefited from lower operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. as a percent of sales, as the Group continues to make progress toward the integration of businesses acquired last year. "We're we're Contraction of we are. we're we are very pleased with the performance of PE Biosystems this quarter. Orders and sales were strong across a broad range of products and in each of our major regional markets," said Tony L. White, chairman, president and chief executive officer. "This quarter's performance is a direct result of the strategies we have put in place to reposition the Company, setting the stage for continued growth by the Group. PE Biosystems has introduced a range of new products, led by the 3700, that are fueling a new wave of growth in life science research. The 3700 has established itself as the standard for sequence information production, and now this same technology is being applied to other applications, moving us closer to achieving our vision of PE Biosystems as the leading provider of essential tools for the life sciences." PE Biosystems Group revenues were strong in each of its main geographic regions. U.S. revenues, excluding Tecan, increased 36 percent, while Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). experienced 32 percent growth. Japanese Japanese (jăp'ənēz`), language of uncertain origin that is spoken by more than 125 million people, most of whom live in Japan. There are also many speakers of Japanese in the Ryukyu Islands, Korea, Taiwan, parts of the United States, and revenues
grew by 41 percent.Orders were particularly strong for genetic analysis and sequence detection systems as well as mass spectrometry mass spectrometry or mass spectroscopy Analytic technique by which chemical substances are identified by sorting gaseous ions by mass using electric and magnetic fields. products. Genetic analysis system orders rose 52 percent, while demand for sequence detection systems increased 92 percent. Orders for reagents supporting genetic analysis systems increased more than 40 percent, led by accelerating sales of the Group's Big Dye Terminator (1) A character that ends a string of alphanumeric characters. (2) A hardware component that is connected to the last peripheral device in a series or the last node in a network. products. Total mass spectrometry orders rose 69 percent. Liquid chromatography/mass spectrometry spectrometry /spec·trom·e·try/ (spek-trom´e-tre) determination of the wavelengths or frequencies of the lines in a spectrum. spec·trom·e·try n. orders rose 96 percent, and those for Electrospray Time of Flight mass spectrometry products climbed more than 250 percent. PE Biosystems also began commercial shipments of the 3700, which was introduced in the first quarter. The Group has now received nearly 700 orders for the 3700, making this system one of the most successful new product introductions in the Company's history. Excluding orders from Celera Genomics, PE Biosystems has received nearly 475 orders for the 3700. Other significant developments during the quarter include: o The Group's Molecular Diagnostics (1) Software routines that test hardware components (memory, keyboard, disks, etc.). Diagnostics are often stored in ROM chips and activated on startup. (2) Error messages in a programmer's source code that refer to statements or syntax that the compiler or assembler unit introduced a kit for standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. , sequence-based genotyping Genotyping refers to the process of determining the genotype of an individual with a biological assay. Current methods of doing this include PCR, DNA sequencing, and hybridization to DNA microarrays or beads. of resistance mutations in HIV HIV (Human Immunodeficiency Virus), either of two closely related retroviruses that invade T-helper lymphocytes and are responsible for AIDS. There are two types of HIV: HIV-1 and HIV-2. HIV-1 is responsible for the vast majority of AIDS in the United States. . o PE Biosystems entered into an agreement with 3M (NYSE: MMM MMM Myeloid metaplasia with myelofibrosis, see there ) to jointly develop products for use in the field of genetic analysis. o The Group's Tropix unit announced a drug screening partnership with Ontogeny ontogeny: see biogenetic law. Ontogeny The developmental history of an organism from its origin to maturity. It starts with fertilization and ends with the attainment of an adult state, usually expressed in terms of both maximal body , Inc. with a goal of accelerating the drug discovery process. This partnership is anticipated to further Ontogeny's ability to identify the pathways critical to a number of significant diseases, including osteoarthritis osteoarthritis or osteoarthrosis or degenerative joint disease Most common joint disorder, afflicting over 80% of those who reach age 70. It does not involve excessive inflammation and may have no symptoms, especially at first. , diabetes, and cancer. For the nine months ended March 31, the Group's revenues grew 25.8 percent to $796.1 million, compared with $632.7 million for the comparable period last year. Pro forma income from continuing operations grew nearly 41 percent to $94.2 million from $67 million, before special items in both years. On the same basis, pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. per diluted share increased 39 percent to $1.85, compared with $1.33 for the prior period. With the Group's pro forma results including Tecan, in which the Company has a minority interest, revenues increased 33 percent to $329.3 million from last year's third quarter. Excluding currency translation, revenues increased 31 percent. Pro forma income from continuing operations, before special charges, was $43.2 million, or 83 cents per pro forma diluted share, compared with income from continuing operations of $25.5 million, or 51 cents per pro forma diluted share, in the prior period. On the same basis, the Group reported revenues of $876.7 million, income from continuing operations of $94.3 million, and pro forma earnings per diluted share of $1.85. The Company recently announced its intention to sell its interest in Tecan through a public offering. Celera Genomics Group Celera Genomics continued to achieve its near-term near-term adj. Of, for, or involving a short period of time in the near future. goals and execute its strategic plan of becoming the definitive resource for gathering and using biomedical bi·o·med·i·cal adj. 1. Of or relating to biomedicine. 2. Of, relating to, or involving biological, medical, and physical sciences. and genomics information. The Group also made progress in establishing its operations, and this work remains on schedule. Celera's total operating expenses increased to $19.2 million during the third quarter. This increase was due primarily to the Group's investment in research and development, which totaled $12.2 million this quarter. For the quarter, Celera reported a net loss of $11.9 million, or pro forma 47 cents per share. For the nine months, Celera reported revenues of $7.4 million, up 139 percent compared with the comparable period last year. For the same period, the Group reported a loss of $23.6 million, or pro forma 95 cents per share. Through this month, Celera passed several milestones. Among the highlights: o More than 300 employees were in place at the end of the quarter, and laboratories and related facilities are nearing completion. o The Group has begun work on sequencing the Drosophila Drosophila: see fruit fly. drosophila Any member of about 1,000 species in the dipteran genus Drosophila, commonly known as fruit flies but also called vinegar flies. Some species, particularly D. melanogaster melanogaster literally means (black-bellied). It is part of the scientific name for the following organisms:
genome all the genetic content contained within an organism. An organism's genome is made up of molecules of deoxyribonucleic acid (DNA) that form long strands that are tightly wound into chromosomes, which are found in the . o PE AgGen, now a part of Celera, formed a three-year agreement with RhoBio S.A., a joint venture between Rhone Poulenc Pou·lenc , Francis Jean Marcel 1899-1963. French composer and pianist whose works include the piano piece Trois Mouvements Perpétuels (1918) and the ballet Les Biches (1924). Noun 1. Agro For the video game character, see . Agro is a puppet character on Australian television, who describes himself as a 'talking bathmat'. He is operated by comedian Jamie Dunn. and Biogemma, to use expression studies to discover genes related to traits of importance in maize maize: see corn. . o Working with Compaq Computer Corporation (company) Compaq Computer Corporation - The largest US manufacturer and vendor of IBM PC compatible personal computers and servers. Compaq was started in 1982 by three ex-Texas Instruments employees. Quarterly sales $2499M, profits $210M (Aug 1994). http://compaq.com/. , the Group is establishing a supercomputing center that is one of the largest in the world. o Celera entered into five-year subscription agreements with three early access customers, Amgen, Inc., Pharmacia Pharmacia was founded in 1911 in Stockholm, Sweden. The pharmaceutical company moved to Uppsala, Sweden in 1951. In 1967 Pharmacia Fine Chemicals was established in Uppsala. In 1986 Pharmacia Fine Chemicals acquired LKB-produkter AB and changed name to Pharmacia Biotech. & Upjohn Up·john , Richard 1802-1878. British-born American architect who was a leader of the Gothic revival. His designs include Trinity Church in New York City (1846). Noun 1. , Inc., and Novartis Novartis International AG (NYSE: NVS) is a multinational pharmaceutical company based in Basel, Switzerland that manufactures drugs such as diclofenac (Voltaren), carbamazepine (Tegretol), valsartan (Diovan), imatinib mesylate (Gleevec / Glivec), cyclosporin A (Neoral / Pharma. Perkin-Elmer, which will be renamed PE Corporation, currently comprises two operating groups. The PE Biosystems Group, with sales of $940 million during fiscal 1998, develops and markets instrument-based systems, reagents, software and contract related services to the life science industry and research community. Celera Genomics Group, a newly formed business unit, intends to become the definitive source of genomic genomic pertaining to a genome. genomic clone see clone. genomic DNA the DNA sequences making up the genome of an individual. genomic library see gene bank. and related medical information. Perkin-Elmer is headquartered in Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). . Information about the Company is available on the World Wide Web at http://www.perkin-elmer.com or by phoning (800) 762-6923. Certain statements in this press release are forward-looking. These may be identified by the use of forward-looking words or phrases such as "believe," "expect," "anticipate," "should," "planned," "estimated," and "potential," among others. These forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. are based on Perkin-Elmer's current expectations. The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 provides a "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " for such forward-looking statements. In order to comply with the terms of the safe harbor, Perkin-Elmer notes that a variety of factors could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. The risks and uncertainties that may affect the operations, performance, development, and results of Perkin-Elmer's businesses include but are not limited to (1) dependence on new products; (2) sales dependent on customers' capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. policies and government-sponsored research; (3) claims for patent infringement patent infringement n. the manufacture and/or use of an invention or improvement for which someone else owns a patent issued by the government, without obtaining permission of the owner of the patent by contract, license or waiver. ; (4) significant overseas operations; (5) future growth strategy; (6) uncertainty of success of Year 2000 compliance plan; (7) earthquakes; and (8) other factors that might be described from time to time in Perkin-Elmer's filings with the Securities and Exchange Commission.
THE PERKIN-ELMER CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollar amounts in millions except per share amounts)
(Unaudited)
Three months ended
March 31,
1999 1998
Net revenues $ 325.8 $ 248.7
Cost of sales 150.7 117.6
Gross margin 175.1 131.1
Selling, general and administrative 89.8 71.1
Research, development and engineering 45.4 28.5
Merger costs and other special charges * 3.2 42.9
Acquired research and development - -
Operating income (loss) 36.7 (11.4)
Gain on investments 2.6 -
Interest income (expense), net - (0.1)
Other income (expense), net 0.2 (0.1)
Income (loss) before income taxes 39.5 (11.6)
Provision for income taxes 6.9 4.7
Minority interest 1.3 3.0
Income (loss) from continuing operations 31.3 (19.3)
Income from discontinued
operations (net of income taxes) 5.2 12.3
Net income (loss) $ 36.5 $ (7.0)
Income (loss) per share
from continuing operations
Basic $ .62 $ (.40)
Diluted $ .60 $ (.40)
Income per share
from discontinued operations
Basic $ .10 $ .26
Diluted $ .10 $ .26
Net income (loss) per share
Basic $ .72 $ (.14)
Diluted $ .70 $ (.14)
Average common shares outstanding
Basic 50,508,000 48,656,000
Diluted 52,046,000 48,656,000
* Merger costs and other special charges
Letter stock-related costs $ 1.6 $ -
Merger-related costs 1.6 42.9
Cost of sales -- merger-related costs - 4.1
THE PERKIN-ELMER CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollar amounts in millions except per share amounts)
(Unaudited)
Nine months ended
March 31,
1999 1998
Net revenues $ 869.1 $ 660.0
Cost of sales 395.7 307.7
Gross margin 473.4 352.3
Selling, general and administrative 253.0 198.3
Research, development and engineering 120.6 75.9
Merger costs and other special charges * 6.3 42.9
Acquired research and development - 28.9
Operating income (loss) 93.5 6.3
Gain on investments 2.6 .8
Interest income (expense), net (1.4) 1.1
Other income (expense), net (0.3) 1.2
Income (loss) before income taxes 94.4 9.4
Provision for income taxes 17.5 15.6
Minority interest 9.5 3.0
Income (loss) from continuing operations 67.4 (9.2)
Income from discontinued
operations (net of income taxes) 1.1 29.6
Net income (loss) $ 68.5 $ 20.4
Income (loss) per share
from continuing operations
Basic $ 1.35 $ (.19)
Diluted $ 1.32 $ (.19)
Income per share
from discontinued operations
Basic $ .02 $ .61
Diluted $ .02 $ .61
Net income (loss) per share
Basic $ 1.37 $ .42
Diluted $ 1.34 $ .42
Average common shares outstanding
Basic 49,927,000 48,342,000
Diluted 51,172,000 48,342,000
* Merger costs and other special charges
Letter stock-related costs $ 2.7 $ -
Merger-related costs 3.6 42.9
Cost of sales -- merger-related costs - 4.1
PE BIOSYSTEMS GROUP
SUPPLEMENTAL COMBINED STATEMENTS OF OPERATIONS
EXCLUDES TECAN AND SPECIAL ITEMS *
(Dollar amounts in millions except per share amounts)
(Unaudited)
Three months ended
March 31,
1999 1998
Net revenues $ 305.9 $ 223.3
Cost of sales 144.0 101.7
Gross margin 161.9 121.6
Selling, general and administrative 72.7 61.9
Research, development and engineering 30.4 24.4
Operating income 58.8 35.3
Gain on investments 2.6 -
Interest income (expense), net (0.2) (0.5)
Other income (expense), net - (0.2)
Income before income taxes 61.2 34.6
Provision for income taxes 17.9 8.8
Income from continuing operations 43.3 25.8
Pro forma income per share
from continuing operations
Diluted $ .83 $ .51
Pro forma average common
shares outstanding
Diluted 52,046,000 50,115,000
PE BIOSYSTEMS GROUP
SUPPLEMENTAL COMBINED STATEMENTS OF OPERATIONS
EXCLUDES TECAN AND SPECIAL ITEMS *
(Dollar amounts in millions except per share amounts)
(Unaudited)
Nine months ended
March 31,
1999 1998
Net revenues $ 796.1 $ 632.7
Cost of sales 368.4 290.0
Gross margin 427.7 342.7
Selling, general and administrative 207.6 187.4
Research, development and engineering 87.5 69.9
Operating income 132.6 85.4
Gain on investments 2.6 0.8
Interest income (expense), net (1.6) 0.7
Other income (expense), net (0.7) 1.1
Income before income taxes 132.9 88.0
Provision for income taxes 38.7 21.0
Income from continuing operations 94.2 67.0
Pro forma income per share
from continuing operations
Diluted $ 1.85 $ 1.33
Pro forma average common
shares outstanding
Diluted 51,172,000 50,050,000
* Results for the three and nine month periods ended March 31,
1999, exclude non-recurring before-tax letter stock-related expenses
of $.8 million and $1.4 million, respectively, and non-recurring
before-tax merger-related costs of $1.6 million and $3.6 million,
respectively.
* Results for the three and nine month periods ended ended March
31, 1998, exclude $47.0 million of before-tax merger-related costs in
connection with the acquisition of PerSeptive Biosystems, Inc. Results
for the nine month period ended March 31, 1998 exclude $28.9 million
of acquired research and development associated with the acquisition
of Molecular Informatics, Inc.
CELERA GENOMICS GROUP
SUPPLEMENTAL COMBINED STATEMENTS OF OPERATIONS
EXCLUDES SPECIAL ITEMS*
(Dollar amounts in millions except per share amounts)
(Unaudited)
Three months ended
March 31,
1999 1998
Net revenues $ 1.7 $ 1.2
Cost of sales 1.0 1.3
Gross margin 0.7 (0.1)
Selling, general and administrative 7.0 1.6
Research, development and engineering 12.2 1.9
Operating loss (18.5) (3.6)
Interest income 0.1 -
Loss before income taxes (18.4) (3.6)
Income tax benefit 6.5 1.3
Net loss $ (11.9) $ (2.3)
Pro forma net loss per share
Diluted $ (.47) $ (.10)
Pro forma average common shares
outstanding
Diluted 25,254,000 24,328,000
CELERA GENOMICS GROUP
SUPPLEMENTAL COMBINED STATEMENTS OF OPERATIONS
EXCLUDES SPECIAL ITEMS*
(Dollar amounts in millions except per share amounts)
(Unaudited)
Nine months ended
March 31,
1999 1998
Net revenues $ 7.4 $ 3.1
Cost of sales 3.0 3.1
Gross margin 4.4 -
Selling, general and administrative 17.6 3.4
Research, development and engineering 23.2 3.7
Operating loss (36.4) (7.1)
Interest income 0.1 -
Loss before income taxes (36.3) (7.1)
Income tax benefit 12.7 2.5
Net loss $ (23.6) $ (4.6)
Pro forma net loss per share
Diluted $ (.95) $ (.19)
Pro forma average common shares
outstanding
Diluted 24,964,000 24,171,000
* Results for the three and nine month periods ended ended March
31, 1999, exclude non-recurring before-tax letter stock-related
expenses of $.8 million and $1.3 million, respectively.
THE PERKIN-ELMER CORPORATION
SUPPLEMENTAL BRIDGING SCHEDULE
INCOME (LOSS) BEFORE INCOME TAXES
(Dollar amounts in millions)
(Unaudited)
Three months ended
March 31,
1999 1998
PE Biosystems Group pro forma letter stock $ 61.2 $ 34.6
Letter stock-related costs 0.8 -
Merger costs 1.6 47.0
Acquired R&D - -
PE Biosystems Group excluding Tecan $ 58.8 $ (12.4)
Tecan 2.7 4.4
PE Biosystems Group $ 61.5 $ (8.0)
Celera Genomics Group pro forma letter stock $ (18.4) $ (3.6)
Letter stock-related costs 0.8 -
Celera Genomics Group $ (19.2) $ (3.6)
Eliminations (2.8) -
Income (loss) before income taxes $ 39.5 $ (11.6)
THE PERKIN-ELMER CORPORATION
SUPPLEMENTAL BRIDGING SCHEDULE
INCOME (LOSS) BEFORE INCOME TAXES
(Dollar amounts in millions)
(Unaudited)
Nine months ended
March 31,
1999 1998
PE Biosystems Group pro forma letter stock $ 132.9 $ 88.0
Letter stock-related costs 1.4 -
Merger costs 3.6 47.0
Acquired R&D - 28.9
PE Biosystems Group excluding Tecan $ 127.9 $ 12.1
Tecan 13.7 4.4
PE Biosystems Group $ 141.6 $ 16.5
Celera Genomics Group pro forma letter stock $ (36.3) $ (7.1)
Letter stock-related costs 1.3 -
Celera Genomics Group $ (37.6) $ (7.1)
Eliminations (9.6) -
Income (loss) before income taxes $ 94.4 $ 9.4
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