Perkin-Elmer Reports Fourth Quarter Earnings Per Share of 72 Cents Before Special Items.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)--August 5, 1998--Perkin-Elmer (NYSE NYSE See: New York Stock Exchange :PKN PKN Polish Committee for Standardization PKN Protestantse Kerk Van Nederland (Dutch church) ) today reported that net income before special items for the fourth quarter ended June June: see month. 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 Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. 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 Verb 1. redefine - give a new or different definition to; "She redefined his duties" define, delimit, delimitate, delineate, specify - determine the essential quality of 2. Perkin Per´kin n. 1. A kind of weak perry. -Elmer as the definitive source of essential tools and knowledge 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. 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 analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. 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 deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. Noun 1. deepening - a process of becoming deeper and more profound 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 Applied Biosystems, Inc. (formerly NASDAQ: ABIO) is the original name of a pioneer biotechnology company founded in 1981 in Foster City, California, among the Silicon Valley cities of the southern San Francisco Bay Area. , PerSeptive Biosystems, Molecular Informatics Same as information technology and information systems. The term is more widely used in Europe. , 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 Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. 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 The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. genetic analysis systems - The rapid expansion in the forensic science The application of scientific knowledge and methodology to legal problems and criminal investigations. Sometimes called simply forensics, forensic science encompasses many different fields of science, including anthropology, biology, chemistry, engineering, genetics, market - The growth by nearly 30 percent of molecular biology-based reagents, including PCR PCR polymerase chain reaction. PCR abbr. polymerase chain reaction Polymerase chain reaction (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 European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. operations - Sales growth of 25 percent in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. 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 we're Contraction of we are. we're we are well on our way to making this a successful commercial entity. An extremely talented group of people is being assembled as·sem·ble v. as·sem·bled, as·sem·bling, as·sem·bles v.tr. 1. To bring or call together into a group or whole: assembled the jury. 2. under the leadership of Dr. J Noun 1. Dr. J - United States basketball forward (born in 1950) Erving, Julius Erving, Julius Winfield Erving . Craig Venter  The introduction of this article is too short.To comply with Wikipedia's lead section guidelines, it should be expanded. 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 we'll Contraction of we will. we'll we will or we shall we'll will ~shall take a close look at all of our options, with the goal of selecting the best mechanisms for creating significant long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. shareholder value while preserving short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. 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 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) 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 pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta 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 restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. 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 af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. charge of $6.8 million for the write down of certain long-term assets Long-Term Assets 1. Reported on the balance sheet, it's the value of a company's property, equipment and other capital assets, less depreciation. 2. A stock, bond or other asset that you plan on holding in your portfolio for a lengthy period of time. . 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) 762-6923. Certain statements in this press release and its attachments 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 the Company'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, the Company 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 the Company's businesses include but are not limited to (1) complexity and uncertainty regarding the development of new high-technology products; (2) loss of market share through competition; (3) introduction of competing products or technologies by other companies; (4) pricing pressures from competitors and/or customers; (5) changes in the life science or analytical instrument industries; (6) changes in the pharmaceutical, environmental, research, or chemical markets; (7) variable government funding in key geographical regions; (8) the Company's ability to protect proprietary information and technology or to obtain necessary licenses on commercially reasonable terms; (9) the loss of key employees; (10) fluctuations in foreign currency exchange rates; (11) the development of new sequencing strategies and the commercialization of information derived from sequencing operations; and (12) 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 is a leading supplier of systems for life science research and related applications. The company develops, manufactures, and markets life science systems and analytical instruments used in markets such as pharmaceuticals, biotechnology, forensics See computer forensics. , environmental testing, food, agriculture, and chemical manufacturing. Perkin-Elmer had revenues of approximately $1.5 billion in fiscal year 1998 and employs more than 6,500 people worldwide. Information about Perkin-Elmer is available on the World Wide Web at http://www.perkin-elmer.com or by phoning (800) 762-6923.
THE PERKIN-ELMER CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollar amounts in millions except per share amounts)
Three months ended
June 30,
1998 1997
Net revenues $ 448.5 $ 373.7
Cost of sales 216.2 191.5
Gross margin 232.3 182.2
Selling, general and administrative 135.0 116.1
Research, development and engineering 47.3 31.3
Restructuring and other merger costs 1.1 13.0
Acquired research and development - 1.4
Operating income 48.9 20.4
Gain on investments 0.8 0.9
Interest income (expense), net (0.1) 2.0
Other income, net 2.2 2.2
Income before income taxes 51.8 25.5
Provision for income taxes 13.1 6.6
Minority interest 2.7 -
Net income $ 36.0 $ 18.9
Net income per share
Basic $ .73 $ .39
Diluted $ .71 $ .38
Average common shares outstanding
Basic 49,182,000 48,070,000
Diluted 50,441,000 49,960,000
Twelve months ended
June 30,
1998 1997
Net revenues $ 1,531.2 $ 1,373.3
Cost of sales 752.1 693.4
Gross margin 779.1 679.9
Selling, general and administrative 459.5 416.3
Research, development and engineering 152.2 120.8
Restructuring and other merger costs 44.0 13.0
Acquired research and development 28.9 26.8
Operating income 94.5 103.0
Gain on investments 1.6 64.9
Interest income (expense), net 1.0 2.9
Other income, net 3.5 1.8
Income before income taxes 100.6 172.6
Provision for income taxes 38.6 42.2
Minority interest 5.6 -
Net income $ 56.4 $ 130.4
Net income per share
Basic $ 1.16 $ 2.74
Diluted $ 1.12 $ 2.63
Average common shares outstanding
Basic 48,560,000 47,517,000
Diluted 50,152,000 49,513,000
THE PERKIN-ELMER CORPORATION
NET REVENUES BY GEOGRAPHIC REGION
(Amounts in millions)
Three months ended
June 30,
1998 1997
United States $ 203.1 $ 150.3
Europe 161.2 143.2
Far East 63.8 64.3
Other Countries 20.4 15.9
Total Net Revenues $ 448.5 $ 373.7
Twelve months ended
June 30,
1998 1997
United States $ 651.0 $ 532.1
Europe 547.1 519.0
Far East 262.1 260.4
Other Countries 71.0 61.8
Total Net Revenues $ 1,531.2 $ 1,373.3
NET REVENUES BY BUSINESS AREA
(Amounts in millions)
Three months ended
June 30,
1998 1997
PE Biosystems $ 277.5 $ 207.4
Analytical Instruments 171.0 166.3
Total Net Revenues $ 448.5 $ 373.7
Twelve months ended
June 30,
1998 1997
PE Biosystems $ 921.8 $ 749.2
Analytical Instruments 609.4 624.1
Total Net Revenues $ 1,531.2 $ 1,373.3
CONTACT: The Perkin-Elmer Corporation
Investors: Charles Poole, 203/761-5400
Media: Edward Bloch, 203/761-5248
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