PKI - Earnings call transcript Q1 2022

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Operator

00:05 Good afternoon. Thank you for attending today's PerkinElmer First Quarter 2022 Earnings Call. My name is Amber, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions-and-answers at the end. [Operator Instructions] 00:27 It's now my pleasure to hand the conference over to our host, Steve Willoughby, with PerkinElmer [Audio Gap]

Stephen Willoughby

forward-looking today the as our Gap] today. of [Audio statements represent made views XX:XX obligation these after you to the any as forward-looking disclaim We update our representing if on of views estimates statements rely as future any forward-looking our change, not so date should of any today's today. even in statements non-GAAP XX:XX call, will we measures. During be financial this referring to certain is non-GAAP during directly the of financial as measures this comparable to reconciliation plan release. use measures to A to attachment most call the GAAP press our available an we earnings this extent that we the we To use reconciliations non-GAAP provide not GAAP, measures during to call reconciled promptly. are will will Officer, and turn now to over Chief I Prahlad our Executive President XX:XX Singh. it Prahlad?

Prahlad Singh

XX:XX And Thank you, Steve. good afternoon, everyone.

opened parts the and processing cases XX-days testing. ultimately, UK, of Valencia, colleagues up continued as matter May even lab world announced this vital team a declining as inspire stood will Valencia lab. and my as have gratitude XXXX to the later see for the the as all in were Wales, ago, lab XX:XX COVID during again COVID this to behind colleagues obtain our part past Poland the appreciate our to the helped underserved peace hope The deliver of in our the for of times. in subsequent at the the efforts our challenge a testing of communities over result be pandemic I first acknowledge on express height around a samples was their highlight to California, need remarks of in the we dozens testing, in start from and who of I across in which that to lab the X million extremely dynamics COVID for closed difficult to extraordinary to also the moment teams the come quarter, lengths reflect of is my quarter we also COVID during shown this soon. of hearts fully Finally, which the different takes has the events uplifting to have also varying of XX:XX I by cases does parts month closing continue their some to of have I support during and PerkinElmer parts In sub-variant end China, thank been an XX:XX to in us gone been thankful by and now want want the midst also want as While in great globe. it of refugees. March. a as immense Omicron shaped that team who to have the to to I pandemic once going pandemic, customers hold. response these Asia through all recent been under away, and we world, rise the who today ways our we be my of to and seem both of transformation. PerkinElmer control are in a the It's Europe, Ukrainian situation, more faced taking going new homes helping not The employees in testing

achievements perform year With with the from markets integration five environment, is our one-third these grow biotech new have portfolio we our more company in place. diagnostics, speaks of well nature, revenue being revenue of Today what life from our under in the XX% of the XX-months, and is derived and an these less from our are future. to paramount. successful than to have a customers, faster all new ultimate level, cyclical, XX% a backdrop our execute operating pharma five As non-COVID we evolving shift ago, the the teams compared be against to has recurring to than revenue additions to from to And This focus now our of environment. the of macro years dynamic on appears our the at a and years product that already turbulent with our a the the commercial recent entered last over of and very portfolio undergone has ability to expect somewhat to science into synergy innovation, more what continue new excellence, taken while XX:XX ago. more high think two-thirds figure comes of conditions our become. of growing businesses point to I proof continuing than today is up changes transformation integration XX:XX the just to only so XX%

are Let service Horizon now pharma across including with product opportunities me in workflow PerkinElmer of collaborating partnering and incubators JANUS other the few instruments, Nexcelom, from and Oxford at flow PerkinElmer, becoming other starting are with its available instruments EUROIMMUN new broader handling organization, already BioLegend, has in provide customer lab Immunotec now each key is our part on existing its new relationships. examples cell focused kits how customers. test introducing as over EUROIMMUN In automated recent segment strong of portfolios, offer optimized teams XX:XX each began commercial months, to to diagnostics that cytometry. liquid Finally, with regions with our you company business collaborating where Our within past our a Within our offering are America. a additions overall. XX:XX North few and our we unique services our the counting business Oxford along TB selling by is

earlier significant, continue momentum. year, on the we to build our PerkinElmer our While this has welcomed transformation to And we SonoVol portfolio been family.

technology we've for Vega of business kidney drug technologies non-invasive more. first-of-its-kind vivo overall platform. into small us ultrasound integrated liver Vega cancer, for development enable cardiology portfolio to our use growing research studies demand meet and and customers system preclinical a Although disease, our offer imaging XX:XX and in imaging SonoVol's today, to already a The will in

innovation its XX:XX example as is get manufacturing Power From of summit approach last located area especially imaging unique in ultrasound and held start return customers to this in maintain in-person scientists' Battery From get contributors Up Frankfurt. SonoVol's efforts and market continues in market. with productivity, about began life some of excited this ensure with perspective, the we our an in key commercial key customers faster. our market. health how right Battery our very the vehicle life and Summit Conference two-day the was XXXX Together, our active and position to co-exhibiting during of month were - offerings this year's can of to solutions and vivo customers. so Germany, This workflows normalizing helps we Another therapeutic quarter upcoming the with sciences SLAS of newly in we accelerate we signs all increase companies R&D fast-evolving smarter aspects Center automated to leading COVID, candidates electric as outside with XX:XX Excellence we we advance offering of a show can XX:XX to breadth our to diagnostics. perspective, our opening end-to-end acquired remain in heart of research improving Berlin human of excellence didn't showcased and how in Boston, meeting in several differentiation

viruses previous infection recently people year, in for been Dengvaxia the transmitted in each just to released past the instance, XX:XX quarter, dengue EUROIMMUN's pre-vaccination test dengue has the included infected about confirm with vaccine. bites to the of are million mosquitoes. screening through For the CDC, CDC's algorithm infected primarily According XXX

dengue, treatment healthcare needed. at governments a conditions. assay for children for laboratories to antibodies the that also infection, for utilization cases can in eligibility is to we we United of can specific and the discuss of the raising with proud which Arab Genomics no The Health their prevented future be the genomics While prior Prevention provide to there XX:XX to establish continue March the group the risk of agendas. and PerkinElmer of with it with in critical around in measure Dengvaxia. of to to virus-specific to aimed perspective, an Emirates the honored and is a Testing companies was CardioGenomic for proof Alliance. cardiac quarter, be some Minister other XX:XX solutions PerkinElmer requires specific meet adolescents From testing dengue Because collaborate region. dengue the awareness were vaccine like can tool identify I is geographic genomic powerful and world to actively in EUROIMMUN's at join advance those in leading have cardiology, During

PerkinElmer site, with in for been a my for-country which we evolving in-country, office serve diagnostics. approach. our PerkinElmer's first During inaugurated will customers Middle better for into be Dubai, the in market growing East our has With able to an new R&D hub an trip,

view GX continuing incoming evolving quite supply explorer Despite and keep months Airport, to and both navigate momentum few has will on Additionally, up execute XX:XX higher as we passengers executing possible. for when the pandemics, at unrest, the year. headwinds Workstation, can are our our motivated have optimistic to to a delivering to company. we Overall, was COVID. arriving entire PerkinElmer remains to look cyclical the I and to I of As which as the from as be significant world as continue stronger second and for screen I backlogs, upon a crisis, our remain demand used which chain, XX:XX the inflation emerging quarter, we ongoing organization Dubai customers quickly an while now we from first the had chance plans, proven resulting customers through global

contract from As the net revenues now of will XX% of updated reported grew testament the and $X.XX due end, in we will in strong and it be during the non-COVID over impact of adjusted QX, to in our optimism organically on in are COVID coming guidance. incremental expectations. are continued $X.XX. an $X.XX over to now to through remainder XX:XX Jamey the adjusted first to to ahead turn our performance some outlook results solidly quarter both we range in performance generated call despite California EPS, Jamey? projecting EPS financial the and XXXX as performance walk the to I XX:XX to to year-over-year our year, the relates a by on detail touch specifics Our more provide our Jamey which as more and challenges this, in our detail, our was here our our of

Jamey Mock

and Prahlad, XX:XX Thanks, evening, good everyone.

this is Prahlad As business of obstacles which first last the months our few maneuvered XXXX, two continuation over during years of a solid the execution various pandemic. the mentioned, during well

organically, X% we testament external to our headwind last and coming again revenue capital past billion, COVID with approximately XX:XX was generation customers saw by thousands which quarter, which was in workflow million into driven COVID way February the to the and expectations the included our the and year-over-year at compared debt-to-EBITDA, revenue drop some year top by the our from to Diagnostics On is revenues. Suite business from sacrifices $X.XX single-digits in XX:XX of adjusted to which management XX% remains for above our data and are Our stood our segment free in both customers, foreign which ended The SaaS-based the drive XX% this high during used in exceptional pharma operating with of organically. to discovery of performance, users the and $XXX quarter, quarter, in declined see by declined X% of Discovery expectations. and first of in from saw scientific net quarter. million executed up progress upper-teens $X.XX, to informatics Analytical revenues XX%, a it our revenue We total total to a wrapping to year Starting performance we've growth the the on leverage at which $XXX over ratio while to outlook Our organically revenue revenue focused in The deleveraging, the the non-COVID grew X.X was of environment times generated which exchange the adjusted Organic I'm the preclinical year. end. unique we segment, increased our organically. employees. with revenue. a a cash Diagnostics. anticipated. this remainder made million, in a up the & tens Turning our Its represented the line slightly and proved our Solutions the down per updated represented XX% while driven growth on XX:XX and operating the is XX% million Organically, continue before of XX%; deployment performance as a academic non-COVID declined bottom As The our and government had XX% XX% of robust quarter, in in total digits non-COVID year guidance, X% spike share continued market-leading discussed, total which was provide year-over-year, additional This remainder acquisitions. basis, the I'd and revenue resilient January we XX% organically, was above were Signals the demand recent pleased line and XX:XX segment the to of upside along our who we previously million our with the and expect XX:XX XX:XX adjusted quarter do we color worldwide. now a our the transformation quarter. times revenue. segment applied in our for in growing thoughts internal and Organically, the our in X% some on contribution XX% totaling also X.X COVID on currently year. performance flow efforts to low-double X%, solid the revenue on to franchise. like generated $XXX quarter. the quarter market sales track, basis, margins we've again this revenue. looking is our and is of and pharma with a total Research by leading the biotech the earnings was Sales in Omicron and exceeded strong year-over-year strength grew up Driven of of good declined grew so to XX:XX of business represent business we this helped XX.X%, came $XXX platform strong $XXX than ahead customers in larger which on of quarter, a During

levels for excellent post revenues more kits continues a $XXX and $XXX mentioned, from Genomics down ago. year organically sample totaled As which the non-COVID various basis prep, COVID-related instruments, previously XX% and Our QX in down other on of XX:XX million million, Applied slightly from than consumables NGS business, growing a year-over-year to consists performance, quarter.

the the very in growth regions While moderate China expect the which we its are pleased still did with the from year. over Immunodiagnostics continued strong performance, to became headwinds some in incremental quarter, XX:XX throughout our lockdowns as we of see we quarter the various remainder In rate progressed. pronounced more franchise,

ex-COVID. with quarter, Europe the post the the this segment growth trends However, still high-single mid the the despite birth the to in Reproductive able rate headwinds, have in so in organic single-digit single-digits US year. of we to saw grew digits quarter the these in the quarter, and was non-COVID in franchise in continued high XX:XX positive growing EUROIMMUN non-COVID basis appear Health a parts as far in fourth on Our inflection

product up For US introductions from believe contribution XX% quarter. From Europe growing in non-COVID the range a to NIPT were while grew the in births but relatively single-digits. quarter was geographic example, led geographic we the from XX:XX high upper-teens, the contribution the small, and the growth in continued expansions, which Vanadis Americas, our business in from new our year-over-year menu by the in offering. was perspective, the also and benefit The in up a continues X% first

pressure customers. single-digits franchise, growth despite world pharma diagnostics the the lockdown-related to strong Asia-Pacific and remainder moving the on on the our for were of Now China both of biotech due XX:XX the view high and impact from up to current year. its

supply pressures As you healthy, very growth lockdown to posted organic XX% with environment persist. and the look the XQ, non-COVID continues demand while saw in we here chain

contract a a income, X% will to we entering April, XQ. decided the provided with revenue of saw will the impact our started of today. of per the we in State effective X-K reiterating contribute it that quarter, the filed with organic in with where are at beginning related which earnings this XX:XX lab you contract notice and As closing treatment and earnings the shortly. we March and to as the result, the have be so greater the the payments XX% upfront in As increased deferred in in world as various will a agreement. Because tax end end to non-COVID of result revenue to for will of the the related guidance month, of we California COVID of full-year we testing XQ the milestone the that compared lab, our the received be and XX overall share outlook accounting to of the of all at of middle revenue lab Consequently, the COVID the of by the million for estimate number slightly, growth backlog closed updated it of roughly year days second over. even $X.XX stipulated Along the be full-year, the uncertainties that our lab will in cost as be higher year, the rate net associated us I this our you of share our the opening included approximately exist terms $XXX when of contract recognized within XX:XX

consists adjusted new our range are this favorable to share billion $X.XX being the which total adjusted range $X.XX X%, an $X.XX to we XX:XX be recognized. dropped well of this a March. for million non-cash foreign in reported in XQ, months this of fully of cases we now quarter, ahead, purposes, such revenue to the to which growth of non-COVID $XXX which $X.XX and For the an inclusive of has increasing of outperformance. contribution are billion. guidance in looking fully XX%, exchange, of we being the COVID So headwind markets XX:XX revenue UK the we earnings from X% while expected And revenue California closed of smaller year, China, terms look have now your XX:XX X% some as X% revenue be includes of deferred recognized, few COVID past of over areas. as the headwind contract our our $X.XX exchange COVID After generating X% QX to end impact the deferred $XXX contribution from range the and we in $X year revenue the $X.XX. to terms most being recently, projecting increased total be $XXX of of In COVID In are for quarter, the other range earnings we billion, forecasting to per to from in M&A for M&A a from guidance revenue fully revenue at lab our also $X.XX, share deferred significantly forecasting the of per million approximately million revenues in much testing recognized. modeling total to was organic includes as are year, a California-related foreign second a in the total related With are COVID of as to billion

positioned to we very transformation like XX:XX to amazing I it I'm going but how the see and I've of made team guidance investor well this that questions. deliver at two has would see and to demand which presentation at time responding rapid website. over before, to really our from is feel that, know customers. second on our closing, continuing experiencing us years, is operator, comment company the forward. we our strong occurred today's is the call has of last on up is both the externally, this detailed XX:XX proud three that to extremely internally on page last All the In the are With open to to the I

Operator

you. Vijay, with Our now from Instructions] XX:XX question first Yes, Kumar is Vijay [Operator thank comes your line open. Evercore.

Vijay Kumar

or with the of XQ XX:XX Hey, guys. one the maybe taking is is, into on unchanged, guide. What question. -- any in versus and bit prior So on impacts right? getting base question XX% change. is here a on the lot the for perhaps China. to question given the guess in a base coming guys XQ, my the annual lockdown is thanks base Congrats guidance inbounds guidance was base I lost I [indiscernible] XX% revenues, talk on of Jamey little I'm are XX%? implied you diagnostics, it's here China I guidance QX, QX Prahlad, of here, guess is some XX:XX perhaps right? XQ said assuming in organic and those mean about of and pull-forward maybe I'm for the there was revenues the lower So So business impact from the what and

Jamey Mock

XX:XX Vijay. Thanks, Yes.

organic growth changing team beat well. the we So are we executing non-COVID the overall core of quarter, our first X% extremely X%. to Yes, guidance is not

think in rise. my to remarks demand looks I great, mentioned backlog that continues our the prepared I

was outlook a think least I looks know, geopolitical I it's So overall quarter the soon too we but and deliver the thought perspective. it I the As this a lot are raise the poised strong, lightest out is from guidance. little of macroeconomic early there's conservatism, the little the But organic and basically first to in a revenue X%, to growth always at year you there. pressures to think a X% just XX:XX

You an as example. China mentioned

Not think reproductive don't the lot a was testing. lose due Vijay. we'll I of this health, to So

and just the bit. a pushed out little testing, EUROIMMUN gets I due think autoimmune it of is most to which

mostly the be So continues the at necessarily to at of some May normal our month for will that end start it day the we environment the what for because XX:XX of not the baked testing. March the they that need we've June. out through year, pushed and quarter of So of but most guidance saw out of might pushed operating returns quarter second first into is

in we that but year. is X% probably So it's team still overall, feel a confident very early doing a the are things the X% to operating well, job. still great And little conservatism, is

Prahlad Singh

add just Vijay, And, Yes. that also. XX:XX to to

in that Just has there. lockdowns, in keep despite been in continue all product with not facility and We've Suzhou, working out or authorities closed. mind fully our the Shanghai, to in ship of manufacture to

So there being okay. overall, China as it's different back, today. no not back. in us, impact life assumption But diagnostics. the XX% Jamey So be at do life up let's health. now And mentioned, think portfolio that will the in I should XX:XX but previous and company's of has think well, sciences sciences DAS come open done very has that is is I than on reproductive of mind just obviously -- our the back on different immunodiagnostics, continues which is But my we I two-thirds the will think keep for the been come end we what to been and It is prudent, is I Again, think quarters. we lockdowns more and said importantly, remarks, to revenue. going that assuming will in as this May, have

Vijay Kumar

are at think one at the the annual earnings XQ and at your XQ to JP, perspective, fiscal and laid guidance north annualizes earlier the at QX being I fiscal XX:XX earnings about and XQ That's [Technical $X.XX and look the 'XX guide, current you. pointed projection year? 'XX confidence your -- guidance can think -- which you or So I in high-end and Prahlad, year the out half EPS you back talk in Maybe, of the earlier of we just to $X, the right? for in helpful right? Prahlad that I Jamey. I out If your $X, about Difficulty] you back Back maybe

Prahlad Singh

think what in Vijay, is -- way, that work several portfolio the the we've I answer transformation and quarters and all. time would confidence past put not over we've that I the done Yes, XX:XX that in has the the the changed at of hard our

of our but would I outlook. So transforming say, with done not ton on while A life I portfolio. into environment here's changing, obviously market bullish at the more what is sciences. be could has gone look the we've company's just mean, what work

a business have to $XXX reagent which low be in just will will mid-teens. of the We million-plus growing

that our deal to So with answer is thrown I the are way way very that changes positioned would shown nothing from think conditions whatever execute and ability years, are past of have the we I to over and the market our question well couple perspective.

Vijay Kumar

XX:XX I'm sorry.

And from earnings $X-plus there is 'XX, fiscal change so the prior correct? for outlook -- no the

Prahlad Singh

there right? the are number. XX:XX change that Given market in towards I applied we said, as Yes, as conditions, i.e., this absolutely, processes is of point, no

Vijay Kumar

XX:XX Okay. Thanks, guys.

Prahlad Singh

XX:XX Thank you.

Operator

XX:XX Thank you, Vijay.

line Bruin from comes Bank your open. question of now next Our Derik, America. with Derik is De

Mike Ryskin

the the some contribution. XX:XX businesses But Mike from Great, the seeing from you're thanks. This synergies color on together. Prahlad, of M&A to you the quarter. bringing the and that. various on know the Derik. is of did deals benefits remarks, a M&A XX% points Can Ryskin blow of that beginning of in quarter going lot initially think, of on the down point sort prepared for in you Appreciate your I these also still I in I want to, there's if there? and some to wide you're break the with are start

Oxford did pieces, was acquisitions? talk So you some whether specifically the versus it of other could some of the or how other BioLegend

Prahlad Singh

XX:XX Sure, Mike.

when out, did at that lockdown BioLegend come that. a by expectation not for pointed change and you reiterate of would hit does in and saying tad XQ fact, for Omicron XXXX, it M&A as me Let our the Yes, in our our was start below impact forecast overall primarily because January.

shut also at down the that's employee things. January Oxford. was there also was from at in academic I some, had customers And some and there that were and One, impact there closures So But two some in was BioLegend. for January guess, disruption gone. time

So changed. overall, QX beyond. year I It hasn't and for QX from just rate think to has the probably pushed out

Mike Ryskin

seeing Okay, to number bit? despite the assumption trend, what's there, talk really DAS, you the what Could of if that are strong the us you're year little number comps. on you're printed in a for going up expectations your rest XX:XX you your DAS what And and driving the through really thanks. take

Prahlad Singh

XX:XX Sure.

let's way think life is start the start sciences. I from to

I think the growth innovation are share leading there. that we and place that have the strong put really seeing there in the we gains is

just examples, preclinical research with workflow the right, side. and launched take one portfolio products SaaS-based informatics a is on leading have few and business, reagent the the you that we our on If side

of continue also traditional becoming business. that's even of that on backlog think, going Summit test So to and And the about, about for in in of we applied, life particularly, the all in show and good we demand Now us do to some the us continues for -- side, from and strong And do organically grow on side continues of semiconductor think all in is demonstrating would example, applied, There's to has has that program, of that's end perspective, antibodies And especially BioLegend invested the portfolio talked source to the results reagents So battery, for continues to continuing market had, the main that for I a and bringing XX:XX that's Battery show. specifically been and well the I say safety trend impact in driver. solid talked DAS helped that have markets applied our been Berlin. be we've the had them very around And well. applied we well. food, outskirts our that introductions life that overall a of as growth a to several China, us. I that more pharma within Cisbio food, there. product is And sciences, started traction. have to there in doing market has started in has new China. XX:XX the We sciences our the

Mike Ryskin

Okay, XX:XX you. thank

Prahlad Singh

XX:XX Yes.

Operator

XX:XX Thank you, Derik.

comes Arias question now your Dan, next from open. Dan with Our is Stifel. line

Daniel Macek

Daniel on Dan questions. XX:XX Hey, Thanks for Macek guys. the for is Arias. This

business, EUROIMMUN non-COVID growth for starting to the you're get expecting with So just back year. this double-digit of to the portion

single-digits in quarter. was I high it the think

guidance, into is or Thanks. And there. so these up is of China just I probably baked end of clarify So lockdowns the to assuming June? want beginning that ease at main if May the was then issue what's

Jamey Mock

Yes. Daniel. question, XX:XX Great

look So, well. to at extremely they continue yes, if do you EUROIMMUN,

Outside a of the did it's business, high-teens the China, China across revenue. of in of relatively So geographies. proportion their EUROIMMUN impact grew the rest large their

to so happen. forward was maybe China And quarter down second as believe look we continue X%. flat down will I or that we to probably think, low-single, And the into here,

think in up I think terrific. it China EUROIMMUN the into I the third back the business we but like by the the snap as And of get of to would past. normal high-teens, China well again, is opens I overall will back So quarter, when outside saw performance expect

Daniel Macek

XX:XX what's That's quarter. a the in very helpful, mentioned contribution small thanks. And latest Vanadis? You the then on

within how year first, for of terms the is utilization utilization what's is contribution. customer in how and your base, placements expected and just So revenue just Thanks. adoption, then and

Prahlad Singh

in in products past. about Daniel. continue are rates. contributor is Sure, XX:XX continues that things the up it Vanadis the just we the out especially with towards talk We this by has in the SMA, SCID, that as in continues quarter, that bought that's think And the whole even done seeing shown albeit growth I health I Clearly, preeclampsia, sequentially traction. new I grow the growth, in pointed and growth expect the about of numbers. improvement the let our another the mean, think XLA, is bot to fourth one first but it and also taking future in the to in and uptake quarters. the was trends, helped we've it Obviously gain X% strong small, and quarter to US, reproductive in segment roughly me start

the the keep of refine what at do. adding we and reagents, looking we to a commercial lot to We system and continue traction, are seeing features are need

So and overall, we going not better, with more I as per it's if could is the our progressing plan, be not way would that NPI say. that happier

Daniel Macek

guys. Thanks, XX:XX

Prahlad Singh

XX:XX Yes.

Jamey Mock

XX:XX Thank you.

Operator

XX:XX Thank you, Dan.

question Waldman line is comes Josh Our next Josh, now from your Cleveland with open. Research.

Josh Waldman

margins that how One within and questions. the you change then on wonder internal maybe quarter, margins business versus you plan? non-COVID then and my XX:XX versus the thanks if initial first Jamey, on for business maybe performed you're expectations one taking for about maybe talk full-year, in thinking recent could how through margins any think in the Hey, acquisitions.

Jamey Mock

plan. initial change XX:XX No, no versus

always COVID organic business. been we've to do side metering think our well I of as our investments growth, the as

of XX% I down, Josh, by always past, the But so the was no wind increased approach earlier mentioned say winds So $X, the change profit to some and have to that XXXX. around question would as here. COVID think we've operating plan, we'll down our investments. overall about the our in So in it XX:XX I

think lot now, the is say we we evolving or involving, for environment most Prahlad continue to yes, there's I part -- think still I right as but a the -- and of well. will do would said, that

as still lot mix a that we the our has will assume of we there business productivity So the have be changed. programs, of growth

earlier, I a exiting that low-teens at the that of very we end business reagents to the So by comps operating I be the has profitability. think next for the XX:XX adjusted $XXX year, to been underappreciated rate. is growing margin we year. fourth high that is going feel Vijay's life question quarter, in have, terms the sciences year confident think And at margin million and we're at of the something that probably

I think Now that next fact quarter, the that the it speaks year. for there highest but core can on comes overall get we to

Josh Waldman

X% XXXX acquisitions any year-to-date? maybe then XX:XX in like X% on And on XXXX. margins, looked from context if you revenue kind follow-up of here then has context expect of to And again that contribute provide what a kind to on acquisitions. the of margin but Got could organic timeline the the to you how out, profile back wondered Appreciate it. you laid some to

Jamey Mock

Yes. XX:XX

saying were before point, X% and be a So the extra for they the on originally the and that that acquisitions, X% effect year, would we've so overall acquisitions to been we XXXX business, Josh, would have an why of they in X% revenue overall. comes majority the growth rate or X% fourth the a The quarter in that that and when kicks revenue guided of to portion big that we BioLegend is which have.

see contribution here and quarter, the XX:XX Oxford think then Nexcelom second quarter. first biggest So the whole third that's here the in with the where quarter, So then fourth growth starts organic year, for from IDS BioLegend the in I starts and an starts Horizon the perspective. in you'll quarter, in

the through first So it and increasing it's relatively will in year, be but here. the small second an quarter contributor

margins year. job, at As great is we continue doing the it job. pertains look a to to remains very margins, even anticipated BioLegend outset good better strong, the doing a Horizon good, Oxford I'd than is say maybe of

for well the the the going both are and things So rung all margin growth acquisitions. on

Josh Waldman

Appreciate detail. Got the XX:XX it. all

Operator

XX:XX Thank you, Josh.

Our next line from open. Catherine, Schulte your Catherine question with comes Baird. is now

Catherine Schulte

you Hey, Maybe the believe guys. in a lockdown, as point-and-a-half for first point to that a China questions. Thanks fourth XX:XX had the I quarter, quantified for the headwind.

headwind first terms what's organic can to quarter? second non-COVID into in So in for a guide that And that lockdown what X% the quarter quantify baked was the headwind? X% you of

Jamey Mock

Thanks, Sure. we quarter, XX:XX to it Yes, points basis thinking was basis company Catherine. a in might fourth level. XXX I points said have the XXX at

on for translates impact China. more high like specifically, XX% a that China to So single-digits to

thing. of the the continue lot XX:XX in quarter, overall And quarter business. impact to points think up was impacts, high-teens mid-teens couple with first we of shipping quarter, were already, experience issues a our mentioned China China, in our up growth probably same in we high had in -- of the saw that the excluding quarter. the first single-digits. delays in company that have so one and the EUROIMMUN those to And I the the the would in are down China, specifically was we probably to same that's we I fourth organic of a I think been quarter. of at specifically, end some So as the well in of so we up There So impact. to XX% as logistics the versus EUROIMMUN first

forward the really we China we As single-digits. quarter, down second fast mid in think to to

So longer little environment operating a a we're assuming it's that here. bit of

So impacted that March. May. in April China impacted was We're and really in assuming primarily will be

that And a a tougher the so down on single-digits China growth comp top mid single-digits, therefore, we've fact high to of it's perspective. taken year-over-year overall from

worse that when single-digits year. is guided changing X% we've in initially the quarter, then a to same still for say, to And X%. And quarter little bit obviously we second overall So a for of X% the year, the two the operating thing the XX:XX keeping said bit we're quarters really high overall X% for been and emphasize we're we basically color, our overall not the guidance. the specifically second just gets that you and Catherine, it it's hopefully, gives The but to I'd here. last other in

weather again, issues the speaks I it portfolio and certain able we're globe. the to of the So think how to storm across just

Catherine Schulte

it's And more mentioned it. focused service your offering cytometry. a adding BioLegend Got to had new you're what that offering how bit just Can in about flow lab you XX:XX talk then and you services organization on was additive a doing?

Jamey Mock

Yes. XX:XX

as is it So Catherine. OneSource enterprise business, to this pertains our

the also a services. it enterprise professional And has compliance BioLegend, assets, but It business team so does been lot it does our services. of does services, obviously working IT with maintains

optimize know a operate experts better to lab. cytometry with details to you core BioLegend team, basically all PhDs they And they're BioLegend it, cytometry. I to be when work the but the behind it enterprise to testing team with So don't and able pertains the flow the in able as combine lab flow our

Catherine Schulte

Got XX:XX it, you. thank

Jamey Mock

XX:XX Thank you.

Operator

you, XX:XX Thank Catherine.

next Meehan Jack, from line question your open. with Jack Nephron comes now Our Research. is

Jack Meehan

was for the came XX:XX operations. the again back for walk quarter, through what just if breakdown the the the Thank sales $XXX your us could I how And wondering framework you you. of endemic a PerkinElmer? of of much half per service is COVID kind quarter million give Good just afternoon. COVID $XX Jamey, of the in million in year, lab from

Jamey Mock

here, kind on was would much upside COVID is I on saw due revenue, guidance the product Hey, our Jack. lab, significant the and lot side, our one, handful with a the quarter revenue, for change terrific. per million the say And million I say and and $XXX noticed a throughput so and the you confident February -- things lab back half, Sure. of $XXX pretty overall on chemagen side. Yes, extraction so rounding the more side of which to very we has use maybe I'm probably January million core our how lab core core of so the didn't excluding XX:XX If line in really $XX were, largely the we've Omicron I XX:XX lab $XXX mean to business. get The beads of year. more the to much. even the us of in or million been side make really would

start seen think quite people them for really will to order some for in the the on non-COVID them. use are well-understood is We've those usage. time yield marketplace also people and to I instruments ordering or renew those and the continue

us have well. contracts so two-year warranty testing, COVID warranties some tells using maybe to And bought which just extended -- they're it million. never other PCR was in for that much willing that, for to addition types of are the But on pay they in they've of they testing and XX:XX terms $XX very in really as testing feel of we confident too

time. speakers] how but We good amount I probably of testing PCR lot So extraction out don't versus million news, an a the testing small endemic think more from the PCR for PCR $XX some much only will be instruments fraction that's think upside, in is I half. that's parse and quite versus I but there some but perspective, would consumables, was say second the the just [Multiple

of use I liquid the just think Otherwise, I share and we get the our would systems. handling in upside. that chemagen think we've

Jack Meehan

helpful. in What still if the year? sales $XXX the was sorry just That's quarter, for the the I on just target BioLegend. feel And this, contribution about clarification, a and XX:XX million then missed good

Jamey Mock

the Yes, about XX:XX good for feel the we Jack. still million year, target $XXX

are up reagents so business, we to sciences in want think we sciences makes DAS up I entire why growth on DAS is the start earlier rate changed life organic our business, which of question bullish XX% the the the business the entire of so total company. in life XX% almost underappreciated. think It makes entire about I it's and to talking because of

of the the I give in quote, going hey, historical was, is, here's think Cisbio low-teens quarter. to our sciences what I And life what BioLegend the reagents and business, will here's in out, grew So so don't we're first inclusive exactly BioLegend, XX:XX discovery.

ton big is Discovery. the sciences reagents we people Horizon on Cisbio we that life of and now now to that and addition HTRF brought, when focused innovation everything you that in want has Alpha opportunity think it substantial low-teens brought, that combine growing everything picture I technology, has and technology business BioLegend and a have a

we're quite Bio well. So with it and to perform excited continues

Jack Meehan

Thanks, XX:XX Jamey.

Jamey Mock

Thanks, XX:XX Jack.

Operator

you, Jack. Thank XX:XX

question next Couillard from open. is Our now with comes Jefferies. Brandon Brandon, line your

Brandon Couillard

afternoon. pay on Jamey, think XX:XX of you the an that you're there's where and if and year? the the on expect thinking flow down ratably over just left update Hey, I balance Good I'm do cash $XXX loan, thanks. about million year, conversion for to correct free wrong, term me the

Jamey Mock

so maybe Brandon. yes, Hey, Yes, I'll start second XX:XX part. the with

actively So we was The $XXX quarter. million in the and paid loan are aggressively $XXX term the delevering. first down at of million outset we year, the

that have the by certainly here. with the across We be should balance timeframe very of the familiar our focused of sheet, I amount have to off are end cash in globe, cash. we that it think able a sheet July/August see is tax-efficient get you're what so to -- it we the balance substantial dividending you on. can back a U.S. Making we way

to just also time off, we're free general But bit of little in takes the quarter. million $XXX the flow off that a repatriating cash it it. So kicking kicked we

paydown can we the to therefore, use million loan. $XXX term So

flow, better of most one cash you in had first think XX:XX soon. best flow So is history. anyways, free XX% people, than conversion the quarters I long terms In quarter it we've will done cash this free in the a be relatively of know

pre-COVID back negative the we days, So in range. to go sometimes were the if you

-- cash that it the there mostly flow And free above helps We've we'd and on and thing said lot it's is said that. the non-cash. nothing -- The past. -- BioLegend XX% only cash XX% come focused it we say free in XX% only is to to be conversion. we've all deferred really would off that will flow fact that, I always a won't impact so revenue or this is

still achieving think XX% I XX%, So the instead for very year feel XX% of that. to we and XX% to would confident in

Brandon Couillard

gross half as testing once steady endemic of year the any can at the of back And far Okay. then sort COVID us margins state? as color you with the help XX:XX more in normalizes

Jamey Mock

XX:XX Yes.

to And COVID range. prior So the XX% 'XXs, might so this mentioned rolls it off, the day in coming, mid in profit even to I the second I XX%. and think as was XX% expect knew we will always my in exit half as would operating settle we and response, low call for gross margins I be XX%

choose But the is But COVID to for really I be think than still So laser-focused to XXXX. we COVID better if off. as to rolls overall, monitoring we continue might the we're we're on XX% anticipated, going investments again invest.

Brandon Couillard

thank it, Got XX:XX you.

Operator

Thank XX:XX you, Brandon.

comes JPMorgan. Our now line from open. next with question Vatnsdal your Rachel, is Rachel

Rachel Vatnsdal

for thanks question. taking the Great, XX:XX

pricing contribute faced you've at far? could pricing started so can up last these that your So customers much in talking you expected from in you about walk we've prices half of light know spend of back of the any that have how year inflation been so pushback seeing, us this is then increases to the through year? just taking all on pricing? minute a you all And any I

Jamey Mock

XX:XX Thanks, Rachel. Yes.

off because we we said might that, and year, So bit we've able the rate, of past have we've quarter, you in backlog XXX as that the kind about we a maybe we knew substantial in the double. above to said in points little saw what we've said quarter. -- basis the fourth might basis seen were yes, working XX points is we that to historically And first from a think the remember average be

it throughout think transpired time a was a basis get significant been single to As probably quarter. second And increase will book second think every that to to I understand, through But year. amount at will first we little quarter, XX So substantial entire XX the -- start then salesforce. what to XX what continue the order takes it the increase the there to have through get will XX:XX that customers points and is might quarter. quarter, which amount that the a taken flowing price in the we -- look in of in through more is

of So XXX and range, in good team we range, might kind XXX XXX about how responding. the year, of to XXX be or end feel that the the is to by very the

Rachel Vatnsdal

XX:XX question the chain. about Great, then supply last is thanks. my And

pressures. you So to about headwinds lockdown chain basis between XXX highlighted and points last quarter, XXX supply

chain then is and So constraints guidance and headwind the what's that meaningful chain XQ, specifically, how year? of supply rest the the baked for logistics supply into in for

Jamey Mock

response think I hasn't similar gotten it's better, of -- gotten to it the kind it's Yes, on hasn't China, XX:XX my new norm. worse. It just Rachel,

didn't So get the a any so probably the XXX number to worse. the we better, to XXX basis first points get it experienced fourth quarter is any didn't similar quarter, than in it

into norm don't of in navigating I say it I We well. chain a think think gets is think As supply China But second is and gets we're little down quarter, -- head bit. new did we better worse. the kind living team or the I the overall,

will for continue to we rest it's for And of remain at been out so quarters therefore, least kind believe not calling there it's two really worth of the the now, and because year.

Operator

XX:XX Rachel. Thank you,

Our open. question from Knight KeyBanc. comes your next line is now Paul, Paul with

Paul Knight

Jamey, the was $XXX $XXX million? color I quite XX:XX Thanks. catch That or California. didn't on million

Jamey Mock

out question that Jack's the -- numbers $XXX maybe quarter second million clarify to because couple sorry, to try in we a yes, there. tossed

like already our to that's of revenue. which million $XXX above $XX the will deferred more million $XXX second $XXX about was extra we had purely too a will the We amortizing quarter result XX:XX million million. original the so much hopefully far the labs the that from Jack $XXX off So thereabouts, is adding second quarter, revenue. $XXX million the which we're deferred was the Well, labs, how in quarter? not guidance, that as more, revenue guidance. including extra is tries much second the was be not was our had deferred overall, through guidance. million In our be million, to for asked quarter, California it how lab, previous that first amortizing is million Total the guidance of to it original we're So original just UK the the clarify. the of Essentially, guidance. labs in $XXX coming portion $XXX pertains and The

Paul Knight

it, And in to that's how of you QX? contribution $X.XX XX:XX Got get that okay.

Jamey Mock

tax XX:XX are taking year, $X.XX we That's right. associated put the have the rate that our including when the revenue overall overall all There thing, for year. of second extra costs decommissioning the kind that's equipment with that that lab to together, overall that and COVID and other the and but out increases the you quarter

Paul Knight

tax Great, overall XX:XX then and year? for the

Jamey Mock

-- XX XX:XX yes. X XX,

Paul Knight

Okay, XX:XX you. thank

Stephen Willoughby

XX:XX more just question. one Operator, maybe

Operator

XX:XX Of course.

open. comes from Patrick, Patrick question Our now Donnelly next your line Citi. with is

Patrick Donnelly

on XX:XX Appreciate XQ guys. in me California I you squeezing a for one the by guide. you bridge. hoping guys, beat Jamey, I there. and about other maybe I EPS $X.XX, mean, $X.XX, was Hey, just the $X.XX. you by raised contracts think

in part XQ guidance of hoping math, by through I'm So you guide FX, if from came had terms a for this. bridge, XQ is just last was quarter sure to that EPS the of but it, by down $X.XX.

Jamey Mock

Yes. XX:XX

Patrick. there, the ballpark in You're

we and the the So first the beat again, To continues high bridge, we team $X.XX. give beat to the well first a I'll the turbulent executing an end, take high yes, -- -- you end. in quarter We the quarter by did we environment. took in believe execute job outstanding

which You've $X.XX got the California, for extra I described. just

basically through That's three we're not $X.XX. flowing things. So primarily

it's little of part, tricky put environment right little And in For now, well. then the a that freight so extra with as is bit I foreign a the think you've all and inflation costs. our peers most we of exchange, heard

mentioned, There to a doing team packaging, there, cost different out routes, pricing it's different But uncertainty of early. to of think the providers, a well, lot is XX:XX in think frankly. I I continues increased I is different execute. terms now, We're going freight macroeconomic Patrick. offset lot right as

guidance felt if something So meeting always flow end we as are the that $X.XX like least wanted the beating. increase on at not by through we high very in we to we to because confident wanted

Patrick Donnelly

a a XX:XX is helpful. the one and revenue think China, world, maybe obviously instruments of And lot about your again probably how companies, Can talk snap then maybe How it said would the little recovery? of you more peers lot fast, a just to China. than in of do through have will then that's And then much how remind you just about of Yes, first service, love diagnostics split XQ about that's are China lot in us, with there all, talked you the thinking XQ. consumables guys lost recovered. back you that? on and the A your

Jamey Mock

Yes. XX:XX

what So non-COVID, trying or used talk the just was more I say mean, [Multiple two I'll total was just we're portray to it is business that three inverse makeup company. sort think years I the of DAS that's non-COVID, Speakers] XX% the COVID ago, we XX%, if So China like you back Patrick, which different. and to of diagnostics was the of of go

If overall China. in terms have you and cetera, XX%. the China this think change XX% China. et And XX:XX life sciences game fast quarter, us that's is in for Nexcelom, of of diagnostics now overall is forward all these past where about And investments to Horizon, DAS is XX% I of really BioLegend,

well China. I kind continued the it a chip the piece and grown growth well everybody chain the experiencing. this XX:XX of of rate of tricky in there the much that Applied now knows of life think for which mentioned the mid at though They single-digits. us I about in us has to past even still grew environment, do the grew a all very quarter issues are quarter, XX%, for it's So the supply all us, end always issues and trajectory sciences then bigger of changes pie, over

diagnostics, sciences it applied is is XX-XX then DAS the rest life and call So probably XX%. and markets,

a and than the immunodiagnostics of revenue a You of and company or that. at mostly China know company of less is it's at level, already overall, X% But level I've two-thirds diagnostics company. that the EUROIMMUN, diagnostics is hit

been grew low And has it quite in I the weathering think the first So it for of overall with future the single-digits business. China sciences and the particularly while quarter. life we're about excited well greater us, storm impacted, pretty

Prahlad Singh

well there. XX:XX I very to do business applied continues genomics mean, the even diagnostics, within

up So normal upside. and on once that's double-digit get back we to lockdowns I the think the open growth,

Patrick Donnelly

Prahlad Thanks, -- and Great. XX:XX

Jamey Mock

a we minutes. extra Operator, few have XX:XX

them. any we'd take to be if there questions, other happy So are

Operator

XX:XX Of course.

next your comes Sykes with Matt, Sachs. line Our question from Matt now Goldman is open.

Matt Sykes

I'm have becoming of afternoon, and quick talked one you Thank a it's just Appreciate squeezing Good and you. Prahlad, XX:XX and Steve. me, DAS a one. I life you in Jamey some rate and tailwinds sciences portion Prahlad you food a strong such and And looking about within great story. large lot secular just your there some is the also of at seems up to that, which growth that. guys be driving put industrial still environmental and

divisions how As you split within capital of sciences within company you resources terms and life of DAS, DAS you other allocating the sort allocate initiatives? growth think the between internal thinking about that in about are and

Prahlad Singh

XX:XX Yes.

way whether have not over the we is our think the say look portfolio you or markets on also about, IR strong has especially on think dominant we've the if life organic and make several ICP-MS it's in majority at position, XX-months, to allocation a But semiconductors consequently, especially this -- we and of that. we've inorganically, end look saying, of been business. with I if the mention or with end doing our very past for the and are DAS overall benefits a as Matt, and I've what side quarters, both XX:XX a going batteries business. life we sciences. inorganic been the [indiscernible] And last portfolio, side thing where inorganic acquisitions the on applied, of been sciences of to investments those continued case back the But well the would disproportionately is seeing has the now are two-thirds markets again organically the business I at Jamey our trend I applied over talked the

very for good not I in the that's the life company. is And going be place an think what drivers the a becomes this $XXX For what business And growth million we've teens. end be is but low-to-mid the assets what that's for important think confident $XXX million that. being put we just year sciences might us feel for and I about DAS, to up that and business growing reagents business in that

Matt Sykes

you. Appreciate squeezing you Great. XX:XX thank me,

Prahlad Singh

Yes. XX:XX

Operator

further conference Thank management for over are no I'll back our the There you, team questions, Matt. closing to turn XX:XX remarks. so any

Stephen Willoughby

Amber. look everyone, for forward all and speaking XX:XX thank questions Thank night. quarter. And you this again time Have evening, we good and a you, your next with you, to

Operator

your XXXX today's XX:XX That for PerkinElmer concludes Thank call. you participation. earnings first quarter conference

disconnect may You now line. your

Revvity (RVTY) 4 May 222022 Q1 Earnings call transcript