<PAGE> 1
FOR IMMEDIATE RELEASE Exhibit 99.1
----------------------
20 July 2000
PERKINELMER SECOND QUARTER EARNINGS PER SHARE UP 42%
[X] SALES GREW 31%, ORGANIC SALES UP 12%
[X] OPERATING MARGIN EXPANDS 420 BASIS POINTS
[X] EARNINGS PER SHARE FROM CONTINUING OPERATIONS UP 132%
BOSTON, MASSACHUSETTS.... PerkinElmer, Inc. (NYSE: PKI) announced a 42% increase
in earnings per share to $.51 in the second quarter based on a strong increase
in revenue and operating margin improvement. Gregory L. Summe, Chairman and
Chief Executive Officer said, "This was another excellent quarter for
PerkinElmer as each of our businesses delivered on their commitments by
expanding margins, increasing sales growth, and strengthening their processes
and organizations."
Highlights for the quarter include:
- Revenue expanded 31% to $399 million. Organic revenue growth, which is
adjusted for acquisitions, divestitures and foreign exchange, was 12%. This
marked the Company's fourth consecutive quarter of double-digit organic
revenue growth.
- Operating margins expanded by 420 basis points to 11.5%, reflecting a
stronger portfolio of businesses and company-wide productivity and quality
initiatives.
- Earnings per share increased 42% to $.51 from $.36 in the same quarter last
year. Earnings per share from continuing operations grew 132% as last year
included $.14 from operations subsequently discontinued.
- During the quarter, the Company announced its agreement to acquire NEN Life
Sciences, a leading supplier of drug discovery technologies and reagents.
"The addition of NEN positions us as the third largest drug discovery tool
provider in the world," noted Mr. Summe. The deal is expected to close July
31.
<PAGE> 2
PerkinElmer 2Q 2000 Earnings Results
Page 2 of 6
Second-quarter financial overview by segment:
- LIFE SCIENCES sales grew to $42 million, a 15% organic increase compared to
the prior year. Operating margin expanded 190 basis points to 13.7% as a
result of higher sales volume and production efficiencies. The Drug
Discovery business expanded 21% over last year on strong demand for new
products, including the Victor2 V, a benchtop system that integrates
multiple detection technologies used in drug target identification and lead
validation. Genetic Disease Screening grew 19% reflecting an increased
demand for prenatal and neonatal testing as an early intervention practice.
- OPTOELECTRONICS sales expanded to $121 million on 20% organic growth.
Operating income increased 45% to $17.5 million. Operating margin grew to
14.5%, in part reflecting the benefits of shifting selected production to
high-quality, Asian manufacturing facilities. Results were strong across
all three businesses. Telecom revenue expanded 50% on the strength of
optical fiber networking component sales, which more than tripled. Industry
demand and the strength of new product introductions in areas such as fiber
optic testing also continued to drive growth.
- INSTRUMENTS sales of $176 million were up 79% over last year largely
reflecting two acquisitions, and organic growth was 5%. Sales were strong
in Asia Pacific and new products such as the ICP Optima 4000 DV system met
with strong customer acceptance. Operating income expanded 560 basis points
to 9.0%, on the strength of integration synergies.
- FLUID SCIENCES sales increased to $60 million. Organic revenue growth was
19% on the strength of semiconductor and power generation business
performance. Operating margins expanded 730 basis points to a record 16.9%
attributable to higher volume, sale of unprofitable businesses and
operational efficiencies.
Summarizing the Company's second quarter performance, Mr. Summe said "Our
aggressive portfolio upgrade to higher-growth technology markets has positioned
us well to continue to deliver double-digit organic growth, excellent operating
margin expansion, and solid cash flow performance."
Unless otherwise stated, references throughout this release to operating income,
operating margin, net income and diluted earnings per share exclude nonrecurring
items.
###
<PAGE> 3
PerkinElmer 2Q 2000 Earnings Results
Page 3 of 6
FACTORS AFFECTING FUTURE PERFORMANCE
This press release contains "forward-looking" statements as defined in Section
21E of the Securities Exchange Act of 1934. For this purpose, any statements
contained in this press release that are not statements of historical fact may
be deemed to be forward-looking statements. Words such as "believes,"
"anticipates," "plans," "expects," "will" and similar expressions are intended
to identify forward-looking statements. There are a number of important factors
that could cause the results of PerkinElmer to differ materially from those
indicated by these forward-looking statements, including among others, factors
set forth in the Company's filings with the Securities and Exchange Commission,
including, without limitation, factors under "Forward-looking Information and
Factors Affecting Future Performance" in the Company's Annual Report on Form
10-K for the year ended January 2, 2000 filed with the Securities and Exchange
Commission, which factors are expressly incorporated by reference in this press
release.
PerkinElmer, Inc. is a $1.8 billion high technology company based in Boston,
Massachusetts, operating in four businesses - Life Sciences, Fluid Sciences,
Optoelectronics, and Instruments. The Company has operations in over 100
countries, and is a component of the S&P 500 Index. Additional information is
available at www.perkinelmer.com or at 1-877-PKI-NYSE.
For further information contact:
Investor Contact: Diane J. Basile, PerkinElmer, Inc.
Tel. (781) 431-4306
Media Contact: Christopher Keenan, PerkinElmer, Inc.
Tel. (781) 431-4111
<PAGE> 4
PerkinElmer 2Q 2000 Earnings Results
Page 4 of 6
PERKINELMER, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
2ND QUARTER
<TABLE>
<CAPTION>
2000 1999
---- ----
(In thousands, except per share data) Reported Adjusted* Reported Adjusted*
------------------------------------- -------- --------- -------- ---------
<S> <C> <C> <C> <C>
SALES $398,705 $398,705 $304,258 $304,258
Cost of Sales 236,500 236,500 195,301 195,301
Revaluation of Acquired Inventory 564 -- 2,464 --
In-Process Research and Development Charge -- -- 23,000 --
Research and Development Expenses 20,965 20,965 16,264 16,264
Selling, General and Administrative Expenses 95,398 95,398 70,367 70,367
Gains on Dispositions, Restructuring and Other Charges (6,187) -- (5,078) --
-------- -------- -------- --------
OPERATING INCOME FROM CONTINUING OPERATIONS 51,465 45,842 1,940 22,326
Other Expense, Net (7,935) (8,835) (6,197) (6,197)
-------- -------- -------- --------
Income From Continuing Operations Before Income Taxes 43,530 37,007 (4,257) 16,129
Provision for Income Taxes 12,410 11,102 (1,532) 5,807
-------- -------- -------- --------
INCOME FROM CONTINUING OPERATIONS 31,120 25,905 (2,725) 10,322
Income From Discontinued Operations, Net of Income Taxes -- -- 6,342 6,342
Gain on Disposition of Discontinued Operations, Net of Income Taxes 4,453 -- -- --
-------- -------- -------- --------
NET INCOME $ 35,573 $ 25,905 $ 3,617 $ 16,664
======== ======== ======== ========
Basic Earnings Per Share:
CONTINUING OPERATIONS $ 0.63 $ 0.53 $ (0.06) $ 0.23
Discontinued Operations 0.09 -- 0.14 0.14
-------- -------- -------- --------
NET INCOME $ 0.72 $ 0.53 $ 0.08 $ 0.37
======== ======== ======== ========
Diluted Earnings Per Share:
CONTINUING OPERATIONS $ 0.61 $ 0.51 $ (0.06) $ 0.22
Discontinued Operations 0.09 -- 0.14 0.14
-------- -------- -------- --------
NET INCOME $ 0.70 $ 0.51 $ 0.08 $ 0.36
======== ======== ======== ========
Diluted Earnings Per Share Before Goodwill/Intangibles Amortization:
CONTINUING OPERATIONS $ 0.73 $ 0.63 $ 0.04 $ 0.32
Discontinued Operations 0.09 -- 0.14 0.14
-------- -------- -------- --------
NET INCOME $ 0.82 $ 0.63 $ 0.18 $ 0.46
======== ======== ======== ========
Weighted Average Shares of Common Stock Outstanding:
Basic 49,035 49,035 45,275 45,275
Diluted 50,796 50,796 46,298 46,298
</TABLE>
* Excludes the following nonrecurring items: in-process research & development
charge, revaluation of acquired inventory, restructuring and other charges,
and gains.
<PAGE> 5
PerkinElmer 2Q 2000 Earnings Results
Page 5 of 6
PERKINELMER, INC. AND SUBSIDIARIES
Consolidated Income Statements
Six Months
<TABLE>
<CAPTION>
2000 1999
---- ----
(In thousands, except per share data) Reported Adjusted* Reported Adjusted*
------------------------------------- -------- --------- -------- ---------
<S> <C> <C> <C> <C>
SALES $800,991 $800,991 $547,475 $547,475
Cost of Sales 482,651 482,651 356,002 356,002
Revaluation of Acquired Inventory 1,128 -- 2,464 --
In-Process Research and Development Charges 8,100 -- 23,000 --
Research and Development Expenses 42,265 42,265 29,661 29,661
Selling, General and Administrative Expenses 191,077 191,077 122,458 122,458
Gains on Dispositions, Restructuring and Other Charges (11,583) -- (5,078) --
-------- -------- -------- --------
OPERATING INCOME FROM CONTINUING OPERATIONS 87,353 84,998 18,968 39,354
Other Expense, Net (16,510) (17,410) (10,829) (10,829)
-------- -------- -------- --------
Income From Continuing Operations Before Income Taxes 70,843 67,588 8,139 28,525
Provision for Income Taxes 23,480 20,276 2,822 10,161
-------- -------- -------- --------
INCOME FROM CONTINUING OPERATIONS 47,363 47,312 5,317 18,364
Income From Discontinued Operations, Net of Income Taxes -- -- 12,387 12,387
Gain on Disposition of Discontinued Operations, Net of Income Taxes 4,453 -- -- --
-------- -------- -------- --------
NET INCOME $ 51,816 $ 47,312 $ 17,704 $ 30,751
======== ======== ======== ========
Basic Earnings Per Share:
CONTINUING OPERATIONS $ 0.97 $ 0.97 $ 0.12 $ 0.41
Discontinued Operations 0.09 -- 0.27 0.27
-------- -------- -------- --------
NET INCOME $ 1.06 $ 0.97 $ 0.39 $ 0.68
======== ======== ======== ========
Diluted Earnings Per Share:
CONTINUING OPERATIONS $ 0.93 $ 0.93 $ 0.12 $ 0.40
Discontinued Operations 0.09 -- 0.27 0.27
-------- -------- -------- --------
NET INCOME $ 1.02 $ 0.93 $ 0.39 $ 0.67
======== ======== ======== ========
Diluted Earnings Per Share Before Goodwill/Intangibles Amortization:
CONTINUING OPERATIONS $ 1.16 $ 1.16 $ 0.29 $ 0.57
Discontinued Operations 0.09 -- 0.27 0.27
-------- -------- -------- --------
NET INCOME $ 1.25 $ 1.16 $ 0.56 $ 0.84
======== ======== ======== ========
Weighted Average Shares of Common Stock Outstanding:
Basic 48,749 48,749 45,092 45,092
Diluted 50,604 50,604 45,958 45,958
</TABLE>
* Excludes the following nonrecurring items: in-process research & development
charges, revaluation of acquired inventory, restructuring and other charges,
and gains.
<PAGE> 6
PerkinElmer 2Q 2000 Earnings Results
Page 6 of 6
PERKINELMER, INC. AND SUBSIDIARIES
SALES AND OPERATING PROFIT BY OPERATING SEGMENT
<TABLE>
<CAPTION>
2ND QUARTER SIX MONTHS
--------------------- ----------------------
(In thousands) 2000 1999 2000 1999
-------------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
LIFE SCIENCES Sales $ 41,933 $ 38,555 $ 81,559 $ 73,612
OP$ 6,141 4,556 10,416 8,183
OP% 14.6% 11.8% 12.8% 11.1%
---------------------------------------------------------------------------------
OP$ before nonrecurring items 5,741 4,556 10,016 8,183
OP% before nonrecurring items 13.7% 11.8% 12.3% 11.1%
---------------------------------------------------------------------------------
OPTOELECTRONICS Sales 120,915 108,641 235,380 219,239
OP$ 22,484 12,039 42,641 20,693
OP% 18.6% 11.1% 18.1% 9.4%
---------------------------------------------------------------------------------
OP$ before nonrecurring items 17,484 12,039 30,901 20,693
OP% before nonrecurring items 14.5% 11.1% 13.1% 9.4%
---------------------------------------------------------------------------------
INSTRUMENTS Sales 175,526 98,240 362,071 141,797
OP$ 12,747 (25,515) 18,574 (20,992)
OP% 7.3% -26.0% 5.1% -14.8%
---------------------------------------------------------------------------------
OP$ before nonrecurring items 15,840 3,349 30,331 7,872
OP% before nonrecurring items 9.0% 3.4% 8.4% 5.6%
---------------------------------------------------------------------------------
FLUID SCIENCES Sales 60,331 58,822 121,981 112,827
OP$ 10,184 9,940 18,671 13,952
OP% 16.9% 16.9% 15.3% 12.4%
---------------------------------------------------------------------------------
OP$ before nonrecurring items 10,184 5,640 20,242 9,652
OP% before nonrecurring items 16.9% 9.6% 16.6% 8.6%
---------------------------------------------------------------------------------
OTHER Sales - - - -
OP$ (91) 920 (2,949) (2,868)
OP% - - - -
---------------------------------------------------------------------------------
OP$ before nonrecurring items (3,407) (3,258) (6,492) (7,046)
OP% before nonrecurring items - - - -
---------------------------------------------------------------------------------
CONTINUING OPERATIONS Sales $398,705 $304,258 $800,991 $547,475
======== ======== ======== ========
OP$ 51,465 1,940 87,353 18,968
======== ======== ======== ========
OP% 12.9% 0.6% 10.9% 3.5%
---------------------------------------------------------------------------------
OP$ before nonrecurring items 45,842 22,326 84,998 39,354
OP% before nonrecurring items 11.5% 7.3% 10.6% 7.2%
---------------------------------------------------------------------------------
</TABLE>
Note: Nonrecurring items include in-process research & development charges,
revaluation of acquired inventory, restructuring and other charges, and
gains.
