PerkinElmer, Inc. (PKI)
F1Q10 Earnings Call
May 6, 2010 5:00 pm ET
David C. Francisco - Vice President, Investor Relations and Treasurer
Robert F. Friel – Chairman and Chief Executive Officer
Andy Wilson – SVP, CFO and Chief Accounting Officer
Ross Muken – Deutsche Bank
Peter Lawson – Thomas Weisel Partners
Jon Groberg – Macquarie
Quintin Lai – Robert W. Baird
[Jeff Erris – Lyrics One]
Derik De Bruin – UBS
Robert Hawkins - Stifel Nicolaus
Tony Butler – Barclays Capital
Previous Statements by PKI
» PerkinElmer, Inc. Q4 2009 Earnings Call Transcript
» Perkinelmer, Inc. Q3 2009 Earnings Call Transcript
» PerkinElmer Q2 2009 Earnings Transcript
Good day ladies and gentlemen and welcome to the PerkinElmer 2010 Quarter 1 earnings conference call. My name is Jonathan and I’ll be your operator for today. At this time all participants are in a listen only mode. We will conduct a question and answer session a question and answer session towards the end of this conference. (Operator Instructions)
I’d now like to turn the call over to Mr. David Francisco.
David C. Francisco
Thank you. Good afternoon and welcome to the PerkinElmer first quarter 2010 earnings conference call. I’m Dave Francisco, Vice President of Investor Relations and Treasurer for PerkinElmer. With me on the call are Rob Friel, Chairman and Chief Executive Officer and Andy Wilson, Senior Vice President and Chief Financial Officer. If you have not received a copy of our earnings press release, you may get one from the Investors section of our website at www.PerkinElmer.com or from our toll free Investor Hotline at 1-877-PKI-NYSE. Please note this call is being webcast live and will be archived on our website until May 20, 2010.
Before we begin we need to we need to remind everyone of the Safe Harbor statements that we've outlined in our earnings press release issued earlier this afternoon and also those in our SEC filings. Any forward-looking statements made today represents our views only as of today. We disclaim any obligation to update forward-looking statements in the future even if our estimates change. So you should not rely on any of today's forward-looking statements as representing our views as of any date after today.
During this call, we will be referring to certain non-GAAP financial measures. A reconciliation of the non-GAAP financial measures we plan to use during this call to the most directly comparable GAAP measures is available as an attachment to our earnings press release. To the extent that we use non-GAAP financial measures during this call that are not reconciled to GAAP in that attachment, we will provide reconciliations promptly.
I'm now pleased to introduce the Chairman and Chief Executive Officer of PerkinElmer, Rob Friel.
Robert F. Friel
Thank you, Dave. Good afternoon and thank you for joining us today. Let me begin by saying that we are pleased by our first quarter financial performance. We started the year strong and believe that we are very well positioned strategically in attractive end markets and innovative technologies.
Our results on the top line exceeded our expectations, as many of the most challenged markets in the economic downturn returned to growth in the quarter. We are particularly pleased with these results given the difficult comparisons from the first quarter of 2009, including the impact of the extra selling days that we had in the first quarter last year.
Additionally we were able to significantly expand operating margins and generate strong growth in both adjusted earnings per share and cash flow. Amy will provide more details on the financial performance shortly. I would now like to share some of our first quarter highlights regarding progress on our key initiatives to increase the growth profile of the company and expand detection and prevention capabilities to advance human and environmental health.
Starting with human health, we recently announced our intent to acquire Signature Genomic deepening our commitment to the diagnostics market. Signature brings complimentary services to our existing diagnostics profile with cutting edge cytogenetic technology providing unmatched accuracy and comprehensive [vista] results.
In addition to complimenting our current business, Signature provides expansion opportunities in the diagnostic oncology with an offering that combines multiple key detection elements in a single assay. We launched our new backs-on-beads technology, a multi-plex diagnostic tool that can detect markers of multiple diseases from a single serum sample, to the European market this quarter with strong early receptivity resulting in key customer wins in large hospitals and labs.
Additionally we are piloting a new diagnostic technology program for detecting severe combined immunodeficiency disorder or SCIDS. A primary deficiency in the immune system that results in the onset of serious infections, even life threatening ones, within the first few months of life.
This pilot project for SCIDS screening provides significant opportunity going forward as it is expected to be the first edition to the next menu expansion of mandated newborn tests in U.S. markets.
In our research business we have seen continued strength from our region portfolio including increased demand for our AlphaWise technology due primarily to the migration to biologic-based drug discovery research.
We are finding that pre-clinical research laboratories are now standardizing their equipment around AlphaWise to aid in the detection of cardiovascular, cancer, diabetes, and neurological diseases.
In environmental health, we continue to address critical environmental health and consumer safety concerns with market driven innovation and response to increased global regulatory mandates and the identification of new contaminants.
In Asia [inaudible] regulatory enforcement has driven increased demand for environmental and food safety monitoring systems as this region migrates toward Western compliance standards. For instance, an effort to address food safety concerns in China, we are providing the government authority with more than 100 atomic absorption spectrometers for toxic-metal contamination testing.