PKI - Earnings call transcript Q3 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and thank you for standing by, and welcome to the PerkinElmer's Third Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions].

As a reminder, this conference is being recorded. Instructions]. [Operator like Willoughby, conference Relations. Vice now speaker to hand Stephen today, President to would over the your I of Investor go ahead. Please

Stephen Willoughby

Earnings Good Third welcome and Conference XXXX afternoon, Call. to everyone, Quarter PerkinElmer's

me today Officer; Oxford Financial Immunotec. Executive Executive our Officer; On the Peter Mock, call are Singh, Founder and Jamey and our President Vice of Wrighton-Smith, Prahlad Senior and Chief President Chief Chief with and

copy copies of presentation, If them our webcast press call on received you archived have section slide find not is our be release at note Investors you the a may website perkinelmer.com. of yet on or being our that will website. earnings of and Please this

suggested factors, will matters the any to and on in include, statements SEC certain financial The or company's change. involve comments forward-looking begin, estimates of results differ which made everyone but Statements of objectives, significantly to those issued to these projected our a forward-looking update made These detail remind release not I'd today also statements harbor the may variety are this earlier today. discussed obligation due uncertainties. from actual projections any of this even necessarily are we represent afternoon may statements filings. or if risks statements by our Any in forward-looking in like to, forward-looking earnings have company's of statements in disclaim our views filings. our We or as future, in expectations our limited call SEC statements, and intentions. press safe which Before outlined those other plans, the that or we be

as after of not our rely statements any on today. date you of forward-looking representing today's should So any as views

to that to we will not extent earnings A so the this to reconciliation During Prahlad this turn With measures during press an and Officer, that promptly. the call attachment, attachment over GAAP available Executive measures. this Chief we non-GAAP financial use referring we plan financial non-GAAP our now during call, certain call Prahlad? non-GAAP in do to most measures of it is I'll the directly President our as are measures will be financial To to GAAP comparable use to we release. reconciled Singh. that,

Prahlad Singh

in Thank and Steve, our a June. diagnostics, in back life a third recent that The focus Board efforts, applied and up Reflecting afternoon, have the and bearing of and operational concept acquisitions been I truly good our R&D collectively together impact you, at meeting can and innovation in and markets, sciences analyst new fruit. engagement employee innovation and the business everyone. investments quarter of ramped PerkinElmer, our say the we technological culture, on essence performance our improvements, reflected investments the XXXX, confidently the accelerated introduced on food across

to While Peter illustrate significantly there think with further the our incremental we between we value Biotech future. markets our end well additional I closed more into that transformation and today, delivering quarter our as come, continued positioned you during stakeholders SIRION are ongoing third our To and Immunodiagnostic into to we will immense to announced and will do all share moment, Systems. this portfolio financial the previously so a strong for Jamey, the color is are higher-growth of on results I acquisitions and the still very idea stay on now

the occurring thrilled X rest and acquisition I'll is more were teamwork and close of but PerkinElmer. the businesses announced to initial on months between bit, date, in a that great our touch schedule. also ahead on BioLegend, quickly already these to fairly We of recent to I'm able see largest these additions

of out will XX,XXX some employees there are turbocharged now come third have even proud in coming existing new collaborations summit our challenges are during a how underway, couple quarter to across the around starting we I expect world to very weeks. innovation While and of of already despite facing be I'm a the only company-wide and hosting ones. continued expanded execute

details While Jamey organic of guidance. highlight a will bit, we again non-COVID provide in solidly I'd more quarter, growth in which was XX% the to like generated the our ahead

well strong to revenues Our we second COVID in as close adjusted teams all the above strong per major continued experienced to share non-COVID to double-digit in were testing ready ongoing the trends in remained regions. and expectation with despite the meet in growth This our the led business. to the the quarter the which Overall, came across was earnings incremental XX% demand in back again twice guidance over we levels our supplied see our investments and quarter of demand. similar $X.XX, business to

be few is So team our feel and the proactively for while headwinds, we I may customers. facing a new executing responding

few our economy. numerous we're across up years, pressures Just against and done as past the the business successfully now other have we global over

While to little of I this and investors insight a I'm recent into up with the additions had newer more pleased as performance the in in them greater detail wanted spend all acquisitions, our today discuss the time with quarter our point. X until opportunity about to third we strong some haven't excited sharing

we to closed back on Oxford like which First, in I'd touch Immunotec, March.

Wrighton-Smith, Peter today's mentioned, CEO, us call. and Steve Oxford's has on Founder joined As

publicly well business you testing think some the offerings, in of gain I of share regulatory, may know, player #X company, currently And core to many from is its market our days latent ahead. and the capabilities years broader in the with is positioned as service As traded the Oxford globally. tuberculosis and a distribution stand-alone

give happening targets what's that new X this already year, been has we thought might automation it to this approval it I the first exceed some progress joined extremely you with the since rolling on within out under roof. of making its it will family year. its the months X been be exists. same the I'm for world companies helpful a earlier next workflows ways the pleased been just been share share to synergy U.S. anticipated terms feel for Oxford both and the PerkinElmer year In potential the pace this in of being I is believe have to on around collaborating great workflow that for hope of an revenue

throughput automation its that instruments Oxford's new With of handlers and the integrating currently seeking ways, the in liquid help regulatory as capabilities which and our year, are of cell approvals each leveraging into Oxford office, PerkinElmer automation other's throughput number integration up or set JANUS such last our is transformation already medium counting Oxford's Nexcelom's in a was high Celigo world, around receiving workflow utilizing workflow.

is beginning Oxford force to developer is to testing. fully automated a to addition, already TB offering from manufacturer being with of automation diagnostic existing transition now In customers the for PerkinElmer's also leverage of kits now workflows starting field these assist and offerings. Oxford to service installation

and early have few still progress plans in is longer-term, quite process out it that are play the While we just we examples other are initial a that will the of excited many those over about.

maybe PerkinElmer business the share he it going becoming the Now the where I'd turn to like of the in part to some since and business sees Peter? perspective on some thoughts on coming years. to family over Peter

Peter Wrighton-Smith

Thank you, Prahlad.

to the by our is economics and advantage, a throughputs thirdly, market reducing major maximize sizes; workflow growing different of and based presence about of part This the workflow of our product attractive more for PerkinElmer new improving for it's value key those that Our us to the our and of is created testing worldwide bringing customers and TB from assay commercial the of through advancing us. to variety Being our dramatically penetration on wider to about latent in countries; is suit in customers of existing our ecosystem our improving and automation. of new X all expanding pillars: all cost better number but strategy service to in goods automated also secondly, automating execute family helping our customers and jurisdictions capturing firstly, our areas. a

already relationships leveraging Indian in America presence Tulip's For EUROIMMUN's forces the South leveraging new subcontinent. access and presence example, field and and countries we're in to

immunology-based business streamline things core are as areas. We're also since the SARS-CoV-X. additional G&A exploring that PerkinElmer's both technology growth a OneSource part from into this together, in-sourcing X and we've more equipped PerkinElmer's number a now looking has particular, infrastructure accelerating have do EUROIMMUN journey, more reagents just consumables such to profitability a and automation We're able T having Clearly, same chain At technology. of pathway its and the that in immunological already cell revenue we those key bottom improved by PerkinElmer's JANUS automation capabilities deploying time, supporting the we've global capture structure. automation contracts, also and reduce our our our materials incorporate and capabilities on sell our cost of also purchase of We in antibodies by generally, number in through We're becoming seeing family, not from line. in PerkinElmer third opportunities longer form BioLegend own own. our to Putting success ourselves, both to all currently able been to to Prahlad leveraging companies by raw from we're but we on as company the other a no value public now spend automation parties. by acquired months utilizing we're reduction of even PerkinElmer of COGS service supply to were and mentioned, adopting we of we're Nexcelom. growing able from that our as in intensified been suite the technology automation

task the revenues in umbrella Phase III vaccine service and studies testing continue of II vaccine's in of support decisions and of the deployment U.K. under Phase licensure Our to grow support force. the

technology, means vaccine this On as particularly populations. as with our become role we're as the recognized Supported T endemic the SARS-CoV-X to mutating close and publications in and immunosuppressed now other mainstream assessing testing by believe is We high-risk beyond kit cells important in maturing and well T side, we to countries. the a seeing into demand of of cell XXXX more critical XX has virus. European on growing last learn widely an also global peer-reviewed will coming several as probably testing into live efficacy,

well-respected of opportunity support pharma we in in other have testing. our an vaccine immunology clients distinct But our We X own testing grow services we PerkinElmer, also have to capabilities as cell outside advantages. Clearly, of see more of part T broadly SARS-CoV-X. and

PerkinElmer's worldwide importance infrastructure Firstly, wider world. that we can want run all global and pharma leverage clinical clients to laboratories trials to specialty growing network of establish coverage, of vaccine something of the over the to

Prahlad. immunology beyond offering like our expand service Secondly, us own we're expertise the hand world-leading our it technology. back to BioLegend their to rapidly that, reagents research gives of core partnering I'd as with portfolio now With to

Prahlad Singh

to over forward about look the so I sure hopefully closed seeing the Peter. are example of early acquisition of share of you believe addition BioLegend. IDS to make becoming and with our you, quarters. to I is least bit I meeting know by where we traction company. more. equal been brings coming excited overall want shareholders we IDS, and also which to analyst Systems, expect recent X about it acquire of X Thank IDS X Immunodiagnostic great wanted The why July we to may a make and we have and what part the the at more plus PerkinElmer a to in or announcement overshadowed our our

assay just Accentis chemiluminescent chemiluminescence and and a manufacturer going evolution more company. analyzer of Let installed previously Furthermore, will adding introduce in more years. expertise we adding then existing strengths. our developer we have to base and offer and a Upon year. an tell chemiluminescence of launch assays menu Accentis been enhanced since will to mid-throughput next This assays other's of in analyzers significantly have first a development that chemiluminescence which its the to traded the its EUROIMMUN's IDS's you random and chemiluminescence By spectrum me to RAXX months throughput expect U.K. IDS, even system, high-throughput, our and have and about bit several of resources to leverage last first was through medium of we in-house business. customers. started the publicly over assay the It's few to platform, the the be acquisition support current the closed, development provide the commercial expertise. we access Also, by able launch each the systems distribution

year and of For meeting in was with EUROIMMUN, the Atlanta, exhibited the kept the BioLegend, were ground colleagues able all example, busy close and end Immunotec, in addition least. jointly all AACC our happy closed deal mid-September next which time. months And company's the of involved history we into to that IDS heading us that in of at the to has Oxford the customers ready for and recent are say the several to the hit and the diagnostics, before largest in-person first I'm teams year. met course, so PerkinElmer deal running

testament part strong strong beat leadership family. while of in been business has job team XX to successful a is and BioLegend While ensure a its BioLegend doing extremely terrific financial about of only This PerkinElmer part to the the has performance also the remain tirelessly PerkinElmer as the are working who transition a continued this throughout customers, a seamlessly to to missed days, transition. hasn't for running for a

BioLegend are to and and collaborations interactions the However, take broader the even organization. PerkinElmer I'm between the excited team more that place about beginning

another. I Summit campus is planned together this year operational can't especially from bring leaders that and our and later earlier, I'm the looking mentioned this wait company-wide strategize commercial San come all across to event, Diego. that this the innovation, As know get impactful we'll one BioLegend's at days I event. connections forward to from for and ideas to briefly and for Innovation R&D, collaborate, several At upcoming company just to see experts in

will October, single a and to provides months flu, in the relates in SARS-CoV-X for in innovation, larger of the the expect play we we winter others in early and Use for detection role PCR assay, U.S. FDA testing it RSV Emergency which our Hemisphere. As Northern respiratory during a PKamp COVID assay, coming received Authorization which

is which recently EUROIMMUN SX received strong business serology, fight assays ongoing of for the the against it our enthused was corporate assays, Use From all and place, -- place, to colleagues serology a colleagues evolving company-wide antigen an responsibility quantitative where protein. pandemic. take group X effort led still day new Additionally, standpoint, over was initiatives to used last FDA while to the recent Authorization the our world targets COVID being our Emergency COVID XXX PCR held around by at my of see assay, I its impact world. ESG global These portfolio month, this add which are in great existing different our to see

achieving June. to underway targets And delighted at you our initial meeting As efforts them. our may to recall, analyst we see outlined ESG-related I'm already in work towards

survey, look to For be and completed which great new room positive be a well-being a and is a to team, ensure we inclusion, continues health and The recently results quite But employee will of we part improvement. sure of. engagement is instance, initial for I'm PerkinElmer on fronts company-wide use and proud a to work diversity place to everyone there always perspective. all very engagement,

on challenges are with industry see see and the happy operational historical proud financial more which shortage, our mitigate and of opportunity the our released on I'm the framework, and This corporate rally to strategic have initial did challenges to standards end these there year even a way continue to various is impact this task tax leading the to various and The provide as formally guidance over with our face, Jamey? to call third I'd project, as that I'm fourth time provide the achieve good been we for our our planning place, strong and potential and to I'm external focus again for closing, aligns responsibility with under these company has perspective reporting plans I around continue recently pressures to results relates seems both to turn here platform. with the the efforts. to in be to we allowed a the bottlenecks personal navigate carbon year, building activities, us us commercial disclosures. quarter corporate and like this confident the semiconductor innovation customer and we reform, it Jamey and current In while successfully which global force the confident but teams such quarter. to detail in these I'm on global PerkinElmer professional must and proactively on considered quarter. to character like color plans, have we busy in and we logistics dedicated unique be our disclosure up more always now are exceed for the adhering the team filled agility, climate-related and has against commitments, now Additionally, expect and social teamwork. of report, to always SASB, our it. begun With quickly targets reporting it third again

James Mock

Thanks, good evening, and everyone. Prahlad,

Before turning want our call the has results, section our remind earnings on financial under Financial I third of website to Information. to that Investors posted quarter the been everyone presentation

for which touch Both revenue but & an As team as the and the perspective, Discovery performed Analytical quite Prahlad Diagnostics it continue to was both non-COVID our organic the expectations our and our on operational also both from I'll executing exceeded in a mentioned, and quarter with double-digit of transformation inorganically Solutions believe business great the extremely a well, growth segments. traction bit. we COVID make performance on and busy well, company. I in

additions Additionally, remain PerkinElmer the family on to recent the track.

of set the are up year. we well So into heading end the

ahead XX% had not guidance our to as we did our off the and XX% contribution XX degree During percentage grew quarter, included almost to our better than and COVID X% XX%, points assumption, fall revenue grew from to our and that acquisitions. anticipated. of revenue revenue grew non-COVID organically, recent tailwind the billion third revenue XX% adjusted $X.X X% exchange foreign a Organic year compared last an

our was had we million related million from from remainder to we million $XXX generated to double COVID, the from the $XXX our our million and services, revenue approximately $XXX from projected with QX of revenue products lab quarter. it we in down which coming services. the the second relates $XXX came core and products COVID-related Approximately only of slightly in close As generated COVID-related

others, by highlighted and testing in recently Services the also with RNA Mount of for and our of As the as awarded latter the half Health demand contribution uptick such from some tests Department in Human saw noticeable quarter, a we and PCR contracts kits and Sinai. extraction

State Lab-In-A-Lab revenue As its as down we our of of we to for the in brought at the quarter, capacity contribution assumed in the reduced of have year. the California which first our available beginning guidance, compared the made half offering

see did our increased setting we late However, progressed tests scratch year quarter lab last as with September, of over surpassing California per to days from accomplish average been volumes proud significantly of at the lab XX,XXX may in daily up and day. a I'm extremely appropriately like on in we've able in all the what getting it in and ground up a the under number come off on to pandemic a days and the of XX levels in basis. such a meeting varying demand in that successfully workflow when month-by-month and immediately the to period week-by-week time short of challenges something addressing delivering from middle this of

has October contributions, to year contract XXXX. happy by another with for successful testing COVID lab end the state the the that been of through I'm this Given our extended report

was was was represented world, As in year-over-year. quarter, a our Organically, growth non-COVID around and up segments, organically XX% the revenue non-COVID on our in basis. strong the total organic it regions. and business Diagnostics all million grew relates up to business XX% XX% which with XX% $XXX third the double-digit of strong generated Diagnostics Geographically, business of revenue

franchise, in was to is and both our it organically. as to XX% continued than non-COVID This we million invest on to strong and than continue is in EUROIMMUN to with $XXX products now robustly was this revenue more XX% pace total fantastic more more one services. year. than up in that business in the As quarter, heavily and COVID grow and do it revenue relates immunodiagnostics growth up

can in of our IDS excited As commercial are existing July, our provide it EUROIMMUN with Prahlad the we mentioned, acquisition see closed franchise. synergies R&D to on early and and

business, also improved which within recognition. broader our segment, to Diagnostics continues genomics our Our share falls on applied brand take

our While COVID-related see for continue the been have fallen continues as built sales business detection NGS COVID see uptick. we capacity demand the to out, has and variant workstation, reagents high-throughput real-time to in strong related strong explorer to PCR off equipment-related GX

overall introductions, even able and pressure geographic our grow opinion sales health a China, face particularly to business to XX% bounce the key modest molecule rates, ways and high-quality remain year-ago continue space. globally experience revenue business product to easier large core in this permanently our benefit I longer-term all is to birth business, comps, I hampered from our kits and and force new When double-digits back particularly QX about is benefit believe expansion, the impacted this after going the being in non-COVID leaders more to reproductive than while again business in In instruments as with a that genomics activities during up and pandemic in business, connected is Our our was better we initially continues with NGS more one labs Asia. so has customers applied think menu now we over strong. were from particular, as the our within continues our combination of in growth have much now through pandemic and funding declining

year-over-year. growth & revenue in grew driven the was mid-single large have In science Sales our growth the our XX% up Solutions double-digit in closed contributions are to Analytical markets our while $XXX mass in applied digits. their pharma and come. our discovery molecule the mid-single-digit in segment. low and to business see by was Turning to in revenue quarter business spec, SIRION our to The quarter, years strong Organically, acquisitions and industrial pleased and by in with and of in food represented government XX%, grew strength from excited of and on million up which both end customers in led the growth double-digits, growth business Discovery business, academic BioLegend continued total into we the are generated markets. XX% to from life

company double-digit Looking at regions we extremely pressures. company growth geographic in a non-COVID points non-COVID coming China. This in basis, guidance. XX%, pleased are all XX% with non-COVID macro from at overall to above greater our our and our Operationally, of than organic organic basis growth which growth was in the led we performance various saw in total XXX light

adjusted customer versus in continued Our leverage, drive margins strengthening years improved programs, our and XX% earnings and by capabilities which mix strong, up investment QX to share and by a and come. of slightly and XX% operating which remained XX% offset our to above volume talent productivity we digital in driven year is e-commerce, infrastructure, $X.XX, guidance. ago relationships, development, help favorable expect results network culture, adjusted our security the research and were per Overall,

debt closing first We so to this a far this quarter, the the X conversion through relates our we This of with XXX%. a of Free free in We months which it far to cash financing billion balance the and year. BioLegend. conversion of $XXX cash flow and billion over so adjusted $X net with moving flow of strong brings XXX% and free and approximately $XXX year our As adjusted equates quarter generated in the of million over finished the rate income. flow IDS a to lot closing of SIRION million cash extremely had quarter of sheet, quarter with was and cash. the pieces this the of $X.X

leverage basis the the counterintuitive, the of debt-to-EBITDA net from as quarters cash aggressively little to flows may we to debt earnings-related quarter revenues stood and as fund come earnings, of $X.X leverage we be BioLegend. X.Xx billion XX-month next It few over our the strong expected down. end better-than-expected net to these but a new even our at delever as in COVID trailing our begin to increase Given acquisition a we expect on at we tailwinds the added

non-COVID As $XXX billion, it in and COVID-related X% million exchange. of adjusted and we an from M&A expecting $X.X from which contribution are guidance, neutral assumes to a revenues revenues growth, XX% approximately QX impact organic relates foreign

bottom tax the million now share a shares diluted XXX rate expecting million of outstanding. approximately assumes earnings and of adjusted which are per to XX% interest $X.XX, $XX On million line, of XXX expense, we of

year-to-date quarter COVID over at revenue growth adjusted fourth billion, including to Given total the are this our our quarter of under just from X% we I'm year. billion This full $X from to We $X.X performance consecutive year organic guidance and XX% for in and confidence expect raising our non-COVID foreign outlook, and earnings report strong now our revenue X% the third full revenue and least tailwind for our revenue contribution exchange. year. a M&A brings happy an

are bringing XX% the for now share to share, year per guidance to $X our equates earnings per We $XX.XX year-over-year adjusted growth. which nearly up

of detailed All this is well. as presentation to guidance on the second last page of today's

announced million, fourth from quarter $XXX we in be sales close year approximately XX% XXXX, faster-than-expected which our contribution. Due would revenue is quarter of closing. earlier guidance this approximately XXXX will year BioLegend, a are be while even adjusted the more in of in up $X.XX modest than impact the greater of deal, XXXX, there dilutive to million the as expect relates the it of fourth $X.XX previously we to accretion the confident and total and As respectively, in a $XX result of included

upcoming Importantly, weeks as BioLegend Prahlad commenced have about mentioned, Innovation our the headquarters. we company-wide are sooner Summit than anticipated. a in integration excited at activities And few

current on and slightly levels. interest our Additionally, we to were able rate at model rates below financing our deal close

I'm teams running. and and are to outcome, closing, our fantastic our level. In team a overall, off encouraged continues perform as So at high a

us the the well of business underway. now dividends inorganic and up are investments forward to transformation well and organic Our PerkinElmer and set looking our is paying new

people to our heading We not and our now are into finish well culture that, Q&A. operator to excited to the with customers. just but importantly, the for financially, begin to year also XXXX for I'd and and a most years ahead, over With and are strong positioned the it like turn

Operator

[Operator Instructions].

Bruin First America. Derik De Bank of with from question comes

Michael Ryskin

the on want lab for your is renewed. something COVID This not was but being price I Ryskin paying. an on that That Mike always to necessary was Derik. comments start with option, contract

anything the XQ you more say million 'XX expectation forward going something terms that? conservative is you start? $XXX volumes of are in So being could in Or to a and in certainly a for assumption even than range, fair to testing quarter

James Mock

yes, to state a about really is, continue like have work and environment, we this it's is it that way are renewed. more we the think fluid proud while I it's to COVID for so with such a The basis. renewed Mike, a year, quarter-by-quarter

contract, to state if the you cancel XX has days. you read within So know, the as the may ability

So we at the XX line this only to have next sight really of point. days

it restructured down also to to We capacity day. XX,XXX tests per the take

We the fees. variable also restructured

So irregardless the most the tune fourth revenue and whether estimate. tests the it's to of the part, XX,XXX our per base revenue of stagnant a in it's probably day relatively or remains about XX,XXX steady day, $XX of tests for baked million into per quarter terms pretty is

Michael Ryskin

just of a and quarter there sort lot how a Great. then more on in a detail you of remarks. the into from underlying had sort trended. And go perspective, noise I during China that's bit wondering of supply chain the saw you but Okay. if a also can you There's the on both little business, prepared was what demand. comments base some been on

you If detail for could into actually. and DAS on more both go that, Diagnostics,

Prahlad Singh

as are and certain some this situation mean, whereas both in lockdowns Yes. you hearing. areas. morning around of sort the I China, goes take Mike, in provinces me what know, I that out news it noise just let came the we mean,

it ever continue China, And I -- execute China been look best the we well. remain backlog So it as our markets across, our a overall, to continues is and that fluid. for think us, we including from perspective strong, at and to to continue both has it, in but remain end

feel So mid-to-longer term, China. we continue to about good

just open happens that think taking vigilant I to with eyes what we have our keep are place. and about be the vis-a-vis lockdowns

Michael Ryskin

could the number you Any us sense give you quarter? saw growth in that the

James Mock

perspective little nicely side, if from still led digits, easier testing of but the little to go bit Diagnostics back, shut would Yes, remember, because the X as it's much businesses last And double little I'd XX%, but the an an Diagnostics comp year, By way. Diagnostics down a say quarter I a last down the was quarters here. reproductive for in bit grew and over quarter, of autoimmune the say bit Mike. much on third didn't it's a it's little and you first a have DAS health quarter. of but last started second easier it the the both comp in a year, really come DAS

Operator

from next Tycho JPMorgan. comes Peterson Our question with

Tycho Peterson

front, dynamic. [Jilin] one seen more that's a Sorry the probably Anhui I questions Yunnan, coming the et Sichuan, just China tender We've similar to cetera, up on on regions, press little is the other and policies. right? and of But think following

And the So do year is the expect? you impact headwinds your view from X? or that pricing And could around IVD over the perspective expand next are volume? offsets type nationally there market with tender what of your

James Mock

Yes. mean off I mean, Tycho, we're said, that. I think for prepared just building I what Prahlad

a get new think I little It think thing. I more bit inevitable it's been a recently. at point. might has some discussion localization don't

products. of XXXX. We've produce got be we've impacted the localizing kind sites got They should X,XXX ready We're locally Diagnostics there. to there. people in over X it's there. some Now EUROIMMUN of But

to challenge We've We comes still And it have brands. I think long-standing terrific every of relationship. an bit opportunity. local is down a got a

you prop, lot there you but of a discussions the also might gain be share. So can on pricing yes, best tenders, if have value

us testing I think hit someday, yet, reproductive terrific but will some manage think that through inevitably, us we'll And point here. So but hit it as don't will X it, well it health. at -- have come as businesses in I hasn't we and autoimmune

Prahlad Singh

think Taicang. Tycho, in reproductive already transitioned past, in of the we've And shared our manufacturing as health we've most reagents, I

Jamey already this out, as and over -- new. something has place been taken revenue, not This has immunodiagnostics several years, component pointed transition very overall is of that our so. a So is small

James Mock

saw, there's government maybe you and think the in for I come companies local And tried to no disadvantage out multinational are has that that say Tycho, China.

EUROIMMUN the So 'XX. have health there and by local reproductive the will that's the side to be Prahlad's we side local start of point,

Tycho Peterson

fourth obviously Okay. might down for X% And And X% for of think just XXXX, about quarter, a as are kind to we here underlying you at helpful. that instruments in the laid Analyst the you of implying then the follow-up Day. in That's the revenue terms range? XXXX any Have guidance out growth be non-COVID then assumptions change bridge of the on XXXX sequentially?

James Mock

Yes.

yes, down areas, So on instrument in the side, Tycho. will come really they X

has non-COVID, should genomics business applied say, our So perspective core or from I a like gangbusters. been growing

I XX% had in I think over my remarks. prepared

So going I but to continue I XX% think don't it's -- still I strong, at think it's level. don't the

really, down of little chain disruption put we've terms of of instruments that bit little some supply here. that's bit And then took of there. the cushion looking in our a a just on all kind out forward of we So

manage see will So pretty about the feel the and to bit, and us we've to hopefully, guide we instruments you'll guide been able a date beat here. but down again it to little confident then come

Tycho Peterson

then And on XXXX? Okay.

James Mock

not XXXX. Yes, too Yes, much.

numerous and I all about to X% to growing terms then think way core the I double-digit don't think the acquisitions changed the of think we there. mid-teens business and have been growers, in the X% has high anything

and head So market about still into X%. we feel pretty as end strong, X% to the we seems the XXXX, confident

Operator

Our comes Sykes from Goldman with next Sachs. Matt question

Matthew Sykes

I a some was products. Oxford maybe in-sourcing big Immunotec the to -- question. just you made I BioLegend's comments picture about wanted of curious,

in-sourcing integrate maybe integrate think where and going So these you a potential just than standpoint, today? wondering, much opportunities companies? as picture you potentially think like can as what you big context provide I'm forward opportunities? that you in-sourcing you these And they're see further from quantification of benefits anything you companies, around greater Do

Prahlad Singh

Matt, this is Prahlad.

the around Horizon have specifically The around to is talk think where cases, putting that's together, seen and But the or get X. we know to is us than cases, more that probably we -- and and equal more companies more And to these more for plus technologies, more definitely more X get more more and most Peter now. are easy what started Nexcelom, X. it's think, panning than in BioLegend story when in we let Oxford and X initially, to I overall, we foresee I'll the we So how I know out.

look and licensing therapy bill, allows Horizon Just at and that together. to take us right? fits into gene how the SIRION markets The bring cell the a technology

have at commercial perspective, technology the now from to and help seen. biologics Going synergies it a story that to time, customers, perspective, at molecule the bolster we look small being continues our able same to

On IDS the already big platform, and EUROIMMUN at same was of Accentis side, automated their assays a platform to as the much leverage. platform, automated smaller platform. a they thought than fully while do time, several now on with you expansive able the diagnostic more It which we the working addition could on both gives menu and a what that ability leverage have qualified RAXX the to a being we

of of examples, just sort couple to Oxford ask I'll So BioLegend. talk a and Peter? specifically around and these Peter are

Peter Wrighton-Smith

Yes. Thanks, Prahlad.

entity. more we opportunity different PerkinElmer's grow. of of So just life reagents, a from are in PerkinElmer a to of have materials that, as learn companies, the PerkinElmer is And for raw we more a beyond purchasing perspective, amount far benefit very of science power combined as continues it the Diagnostics family, having and aspects my the from But their which unusual starting us goes about obviously, consumes lot in production huge kits. set to

of we family And PerkinElmer have instruments different like PerkinElmer duplicate instruments, those great lot and our who We very joined also has service journey. for fact replicate that in which also of a a companies and those then us fact all makes And kind infrastructure. automation to mean us of the capabilities. that have helpful is that have the the things

products, ever-increasing So either family, services my wider as opportunities materials and I'm seeing consequence. from a or seeing that my from I'm synergy grow to the in-source PerkinElmer opportunities raw perspective,

Matthew Sykes

And a question. then specific Great. That's very helpful. just

margins. DAS Just

lot operating You couple those DAS, guys elements, fairly mix you might for leverage within you of margin where Of we do kind which expansion volume a be perceive DAS? with have X.X And can of of things in over a the the margins past be progress increased And made to cited productivity. think years. limit the durable? improvement for

James Mock

particularly I with biggest becomes and is margins. portion it a life would bigger think Matt, probably sciences side in as typically higher I all of discovery say DAS, that the beneficiary, mix comes durable, the they're

life now terms DAS, in Now normally of addition come and million high the pretty business having with margins. in $XXX of those sitting BioLegend sciences, a with reagent profit

will going we've driver. and we with biggest a procurement that perspective. we've little them. forward I'd we've terms service place the of lot number about configurations sites, the and simplicity the putting doing efficient the in So be our are all more team durable been and bit a there doing say be of roll out been talking as in better have programs mix around refreshing we from royalty that to configurations service probably Certainly, and of a been We've been NPIs,

in double-digits durable, is And all but So think the are with get biggest quickest DAS sciences life I impact this I quarter you're think you think from growing that's mix. here. I what seeing

Operator

Evercore Next question ISI. Kumar comes from Vijay with

Vijay Kumar

the materially non-COVID the don't X%, just Jamey, of harder. and On you Prahlad, XQ, big your so considering one guidance, on that I business, QX here, for in organic get did comps guys one base XX% had picture.

some So Or on just I'm curious this part? noise? what a contemplating your there China conservatism that X% Is QX? is is in

James Mock

good a question, it's Vijay. Yes,

conservatism it's probably the think I side. more towards

saying by terrific the right start I'd are end markets So now.

north many growing double-digit. least digit mid-single All of at been for them of have well us,

quarter. substantially last grown even the this has over backlog and Our year

from I too think disruption, of can it is quarter the haven't the little COVID you in transportation into we well. here, and chain that that's can put potential bit more, that things particularly around going fourth conservatism, on which seen about supply APAC. X talk we basically, any impact And today, but then lockdowns, we includes as call anything much any

reduced. in where of has and we particularly screening business our our So have newborn screening Philippines like just Vietnam, seen been in places -- and it, the pockets

those up. end the X The been have Otherwise, in. backlog is concerned we So put strong. factors are not the We're that markets about it. too

to but be time. at conservative, proves to prudent So do thing it hopefully, think it's this I a

Vijay Kumar

Jamey. you. Prahlad, for helpful, That's one

something perhaps of emerging think accretive, I Days heading them have even we've business, I Analyst shouldn't the peers I'm about a from if and about as most curious this guys number at why X%. you different season. to into stronger Is being think the I X% the versus line just to of all on message of from growth bandwagon are guys done messaging? is 'XX And some guys you these fiscal transformational. earnings are peers from you be talk stronger your how I the or X% with your And heard LRP, acquisitions, there pandemic look pandemic. peers, And had emerging in your Perkin, we're the your in X%

Prahlad Singh

the at call. look, mean the and of than confident diagnostics, am we we I done Analyst are even alignment Vijay, put portfolio the of could that life growth team the I have The I the extensively the I earnings future markets this sciences end PerkinElmer in and then talent the today. all last that not talked and of markets and in, on that about cylinders. we around have and think playing end more Day at place, be that's about executing we

are we specifically now, no is XXXX, So there. is very there in that right the on asking but future around And hesitancy guidance I our part Jamey if you're don't is saying bright. think doing

James Mock

acquisitions. core Let the the me X% just before just to to all on X% one is clarify X% The the X%. business about thing, Vijay,

make to when acquisitions. So we about the clear be not X% is that, everybody X% roll to will X% the sure to on ultimately X% just

will is before raise was acquisitions the up as to acquisitions, X Oxford by things done. One look, to Horizon, roll X We very the our And our than X%. to X% broke into time. we it impactful obviously just going X%, So obviously BioLegend X%. here's grows back at the Nexcelom then the we've were to in itself well. that in goes That X% XXXX then -- long-range that will X% say, there into organic these base, to plan all more

acquisitions. X% higher. the to that The make the ultimately was acquisitions to X% prior So will

Operator

with Donnelly Patrick from comes Citi. question Next

Patrick Donnelly

acquisitions. you about talk Prahlad, about some months. the X.X maybe acquisition on up can on the expect the same the know there, that of about we what about opportunity opportunities can is some you And one just significant just for particularly with people BioLegend in But feeling growth more you've only can I synergy how picking side. revenue you're last there? closed a pretty that recent had those one. It seems room, like rate talk now and

Prahlad Singh

elucidated heard same able from at which Oxford, The Board, I around commercial. the pretty to is you whether Nexcelom then you the across ability And our Yes. around mean Peter look technology I the is XXX-plus helpful portfolio not around I Horizon. one than third -- that of for be is direct think Patrick. synergies, is or he the leverage companies opportunities the instruments, is obviously, presence, do one, in is service, to well. to countries, theme the mean The acquired commercial companies. which The these manage. second the most around much more around bring have distributor technologies. Then are access very together that service technology. we around And

with As and these we material a primary raw discussions of Peter and we've of from interactions around supply that of one want couple source our example think become I BioLegend, an them antibodies. even gave happen,

pillars: see, gene therapy, can genomics, cell everything around and a or X where couple leverage we point for primarily from So perspective. I prepared and the of Summit an example, I a just having and the that verticals us diagnostics our weeks, X an mentioned X I remarks, Jamey Innovation campus you out and we at to And to. think during think our are give would to those else or is around approach what opportunity in are BioLegend I synergies is the elements the technology that

of to So at that sense months, are able next But I how looking over And a gives around couple detail that. this. think will the we continue. we more be you provide of Patrick, hopefully, then we'll hopefully,

Patrick Donnelly

definitely And that's secondarily, touch up of potential be offered impacting just that labor it. you're talk any that there, you're to of appreciate responses chain, I'll you take customers, just the you what passing Jamey, bit then of could question margins, along about classic helpful. kind would seeing pressures? if supply terms And a how in on to one that's inflation helpful. the on Yes, in on offer. the I you No, little

James Mock

any standpoint. all side. kind a from easier over. an I chain certainly Yes. travels of a team versus us little a has on The And air it Sure. supply mostly we've disruption see we bit the I both it's From amazing shipping done for water for mean, been would perspective, say job.

I We're to things and a Inflation, third think substantially what to we do. some there good was obviously around it. price at we some also right see backlog minor our But quarter impact doing now. into well. started to had putting effect very looking as we're the things and grew

might you remember, refreshed about we've a talking process. procurement As been

mitigate So of some we've been able this. to

where it. fashion. Patrick, also -- got But perspective scale very good a operate there, certainly we've it's company, from dealing we've So with we but a medium agile in here very a size we're a got happy and

quarter it. here, So team job mentioned, been through as managing us. for put a a a We buffer be non-impact I of it bit doing has into will great the fourth little

Prahlad Singh

around to resources much challenges. reactive think I more such I I sort become us then has I how rapidly marshal really -- that Yes. the pandemic challenges. feel mean, taught more would imagine strongly agility be has us speed that. these reemphasize our than size of to some scale And to of gives and more COVID and much and one would COVID to the agile able

Operator

Our from Couillard with question Jefferies. next comes Brandon

Brandon Couillard

question Jamey, you. just X-part for a

margins assumption fourth the the next rate XX% and then at all good a and acquisitions, how quarter? could help parts pencil moving frame the to year? And you look for is in all of gross OpEx us just Given tax secondarily, sort to in

James Mock

Yes. Brandon. Thanks,

a I gross here, Brandon. So bit the fourth margin assume down to little would it specific quarter, comes

COVID with down core quarter, that fourth comes see up, then a come down volume the third fourth the And quarter, So you'll the always bit. in $XXX quarter $XXX have quarter. in a the being we in to going million million so little bigger

tick expect rate would there. guess I So is think, little margins for tax down I Tax out reform bit. based anybody's XXXX, on gross to a

to years played obviously, tax we or were has with couple So certainly, like something and versus a I income ago, think think jurisdictions. a we that year I in guided COVID role XX% XX% greater this And of that. higher big

and and how there be with much view that dependent one, our think it tax in upon I with tax because tax X will from a happens your rate; higher COVID things: comes is revenue typically on So two, XXXX what reform. rate

today account kind So that changed, taken of changes. our of not have assumptions particular has been into any none tax reform but

hopefully that So helps, Brandon.

Operator

with Waldman Research. next question Cleveland Josh comes from Our

Joshua Waldman

you. for X Just

the a First, on non-COVID follow-up business.

in ahead came of You well your obviously guide.

Just provide in kind to could wondered DAS this DX better-than-expected you more plan. all of on experienced Was tied context or you solely outperformed? where if did also non-COVID growth versus outside

James Mock

side, would definitely as I continues well. applied be DAS has done and sciences well. ex-COVID I continued to just outperformed the extremely strong. our analytical business applied But say us I'd has EUROIMMUN technology again. life quite markets to No, say was do mean, our has remain And strong. on products continued strong DX well genomics really, for or to

that quarter expectation a think XX%. our to I XX%, think over in third So probably that row the been have we've surpassed I

benefits of one And So in probably that's coming the that, that prepared we probably here. continues that hang recognition mentioned biggest out is have business, COVID to remarks there. there in I brand our of my

Joshua Waldman

we thinking those synergies a cost Got this out more it. Or sounds long-term guess, how longer-term expected view in And of then just of positively you the and outlook forward, I analyst time, level the targets? mean, is given going laid a that it it since at meeting should kind you're of improved as derisking guide impacting FY higher 'XX targets? like as think about the about I June, the we

James Mock

We're us targets, we expansion benefit believe there we forward should extra I these that the things reinvest it provides and R&D, remarks, for opportunity all in the extra income, investing And Josh. I percent an still invest our the to mean And We're moving but business be of could a we've this. we're both, certainly, my be think extra -- in talent mentioned prepared be through also to continued margin digital. and on as back here. particularly be in And it continue up. culture. in business. could it both, and in sales far is to I feel investing confident core will investing in sales

investments our plan. a it's think its see and/or we upside can long-range both you'll either through bit derisk additional I make some come versus of So or

Operator

question Paul Our next from KeyBanc. with comes Knight

Paul Knight

be I you On the were what must strong, technologies, & strong to could applied Discovery Analytical due would talk petrochemical assume that great. but color the would be growth, about very there

James Mock

life now XX% up over well, Paul, mean, I of Yes. DAS. sciences Sure. makes

a we've our terms lot So I'll terrifically. our in And start products content particular, in high discovery our operating business, on have business, the there. of of screening both of NPIs in vivo been had some

in had On terms us. the reagent across cadence different and of strong for nice We've all areas and a been therapy side, it's oncology, gene regions. cell have been NPIs, of strong application

analytical So life few sciences, those the and Paul. are of areas. markets, applied the In a

So energy on pretty the it's been I and more say, would strong was side, semiconductor for us. chemicals

Triple And so we our Quad. launched

analytical And so portfolio, proving in for strong think general, been a extremely been better whole benefit has But which to I has ICP mass our cadence of the and NPIs, ICP had we've business DAS us. business. the technologies

strength why so that's see there. continued I And

Paul Knight

business? side on you the Do the DAS of think gaining you're share

James Mock

think at whether share. lot on share believe I always technology this in the to of life good spectroscopy, side, side, point. so Hard gaining I we've we're say a analytical particularly sciences the had in

Operator

And Prahlad time. hand questions showing currently back to no closing Singh this the at for to Mr. I'm conference further over I'd comments. like

Prahlad Singh

all you, dialing and Norma, in thank Thank you today. for

embarked world very the continued safe thankful soon. to speaking work all I'm contributions. the the you. quarter. you very which XX,XXX very remain colleagues on are of is stay look Please my are and for very healthy. proud forward and to that to around their on excited trajectory achieved PerkinElmer and and hard team excited the third with And accomplishments in I the new We the has Thank

Operator

concludes And you call. this Thank conference today's participation. your for

now may have disconnect. Everyone, day. a wonderful You

Revvity (RVTY) 3 Nov 212021 Q3 Earnings call transcript