WALTHAM, Mass.--(BUSINESS WIRE)--August 1, 2018--PerkinElmer, Inc. (NYSE: PKI), a global leader committed to innovating for a healthier world, today reported financial results for the second quarter ended July 1, 2018.

The Company reported GAAP earnings per share from continuing operations of $0.58, as compared to GAAP earnings per share from continuing operations of $0.57 in the second quarter of 2017. GAAP revenue for the quarter was $703.4 million, as compared to $547.0 million in the second quarter of 2017. GAAP operating income from continuing operations for the quarter was $88.1 million, as compared to $74.2 million in the second quarter of 2017. GAAP operating profit margin was 12.5% as a percentage of revenue.

Adjusted earnings per share from continuing operations for the quarter was $0.91, as compared to $0.67 in the second quarter of 2017. Adjusted revenue for the quarter was $703.6 million, as compared to $547.1 million in the second quarter of 2017. Adjusted operating income from continuing operations for the quarter was $138.3 million, as compared to $97.8 million for the same period a year ago. Adjusted operating profit margin was 19.7% as a percentage of adjusted revenue.

Adjustments for the Company's non-GAAP financial measures have been noted in the attached reconciliations.

“We saw continued momentum in the business as both segments experienced double-digit organic revenue growth in the second quarter,” said Robert Friel, chairman and chief executive officer of PerkinElmer. “Our focus on bringing innovative new product offerings to market, while targeting attractive end markets where our capabilities are well differentiated, continues to drive solid revenue and adjusted earnings growth. As a result, we are once again raising our full year organic revenue outlook and adjusted earnings per share guidance.”

For the full year 2018, the Company previously forecast GAAP earnings per share from continuing operations of $2.25 and, on a non-GAAP basis, adjusted earnings per share of $3.60. The Company now forecasts GAAP earnings per share from continuing operations of $2.39, and on a non-GAAP basis, which is expected to include the adjustments noted in the attached reconciliation, adjusted earnings per share of $3.65.

The Company will discuss its second quarter results and its outlook for business trends in a conference call on August 1, 2018 at 5:00 p.m. Eastern Time. To access the call, please dial (541) 797-2422 prior to the scheduled conference call time and provide the access code 6379206.

A live audio webcast of the call will be available on the Investor section of the Company’s Web site, www.perkinelmer.com. Please go to the site at least 15 minutes prior to the call in order to register, download, and install any necessary software. An archived version of the webcast will be posted on the Company’s Web site for a two week period beginning approximately two hours after the call.

In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings announcement also contains non-GAAP financial measures. The reasons that we use these measures, a reconciliation of these measures to the most directly comparable GAAP measures, and other information relating to these measures are included below following our GAAP financial statements.

This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to estimates and projections of future earnings per share, cash flow and revenue growth and other financial results, developments relating to our customers and end-markets, and plans concerning business development opportunities, acquisitions and divestitures. Words such as "believes," "intends," "anticipates," "plans," "expects," "projects," "forecasts," "will" and similar expressions, and references to guidance, are intended to identify forward-looking statements. Such statements are based on management's current assumptions and expectations and no assurances can be given that our assumptions or expectations will prove to be correct. A number of important risk factors could cause actual results to differ materially from the results described, implied or projected in any forward-looking statements. These factors include, without limitation: (1) markets into which we sell our products declining or not growing as anticipated; (2) fluctuations in the global economic and political environments; (3) our failure to introduce new products in a timely manner; (4) our ability to execute acquisitions and license technologies, or to successfully integrate acquired businesses such as EUROIMMUN and licensed technologies into our existing business or to make them profitable, or successfully divest businesses; (5) our failure to adequately protect our intellectual property; (6) the loss of any of our licenses or licensed rights; (7) our ability to compete effectively; (8) fluctuation in our quarterly operating results and our ability to adjust our operations to address unexpected changes; (9) significant disruption in third-party package delivery and import/export services or significant increases in prices for those services; (10) disruptions in the supply of raw materials and supplies; (11) the manufacture and sale of products exposing us to product liability claims; (12) our failure to maintain compliance with applicable government regulations; (13) regulatory changes; (14) our failure to comply with healthcare industry regulations; (15) economic, political and other risks associated with foreign operations; (16) our ability to retain key personnel; (17) significant disruption in our information technology systems; (18) our ability to obtain future financing; (19) restrictions in our credit agreements; (20) the United Kingdom’s intention to withdraw from the European Union; (21) our ability to realize the full value of our intangible assets; (22) significant fluctuations in our stock price; (23) reduction or elimination of dividends on our common stock; and (24) other factors which we describe under the caption "Risk Factors" in our most recent quarterly report on Form 10-Q and in our other filings with the Securities and Exchange Commission. We disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.

PerkinElmer, Inc. is a global leader focused on innovating for a healthier world. The Company reported revenue of approximately $2.3 billion in 2017, has about 11,000 employees serving customers in more than 150 countries, and is a component of the S&P 500 Index. Additional information is available through 1-877-PKI-NYSE, or at www.perkinelmer.com.


PerkinElmer, Inc. and Subsidiaries CONDENSED CONSOLIDATED INCOME STATEMENTS

	Three Months Ended						Six Months Ended
(In thousands, except per share data)	July 1, 2018			July 2, 2017			July 1, 2018			July 2, 2017


Revenue	$	703,362		$	546,962		$	1,347,334			$	1,061,077

Cost of revenue		363,222			289,360			714,972				563,719
Selling, general and administrative expenses		204,880			149,859			404,605				296,867
Research and development expenses		47,196			33,560			93,180				66,846
Restructuring and contract termination charges, net		-			-			6,578				9,651

Operating income from continuing operations		88,064			74,183			127,999				123,994

Interest income		(173	)		(490	)		(438	)			(710	)
Interest expense		16,411			10,672			34,061				21,536
Loss on disposition of businesses and assets, net		-			301			-				301
Other expense (income), net		118			(7,092	)		(5,837	)			(7,908	)

Income from continuing operations, before income taxes		71,708			70,792			100,213				110,775

Provision for income taxes		7,035			8,066			9,505				11,987

Income from continuing operations		64,673			62,726			90,708				98,788

(Loss) income from discontinued operations, before income taxes		-			(3,109	)		-				650
(Loss) gain on disposition of discontinued operations, before income taxes		(551	)		180,377			(551	)			180,377
Provision for income taxes on discontinued operations and dispositions		59			35,925			70				37,143

(Loss) gain from discontinued operations and dispositions		(610	)		141,343			(621	)			143,884

Net income	$	64,063		$	204,069		$	90,087			$	242,672


Diluted earnings per share:
Income from continuing operations	$	0.58		$	0.57		$	0.81			$	0.89

(Loss) gain from discontinued operations and dispositions		(0.01	)		1.28			(0.01	)			1.30

Net income	$	0.57		$	1.84		$	0.81			$	2.20


Weighted average diluted shares of common stock outstanding		111,452			110,762			111,391				110,484


ABOVE PREPARED IN ACCORDANCE WITH GAAP


Additional Supplemental Information ⁽¹⁾:
(per share, continuing operations)

GAAP EPS from continuing operations	$	0.58		$	0.57		$	0.81			$	0.89
Amortization of intangible assets		0.29			0.16			0.59				0.31
Purchase accounting adjustments		0.14			0.02			0.23				0.05
Significant litigation matters		(0.00	)		-			0.04				-
Acquisition and divestiture-related costs		0.02			(0.02	)		0.03				0.01
Disposition of businesses and assets, net		-			0.00			-				0.00
Mark to market on postretirement benefits		-			(0.00	)		-				(0.00	)
Restructuring and contract termination charges, net		-			-			0.06				0.09
Tax on above items		(0.12	)		(0.06	)		(0.24	)			(0.14	)
Impact of tax act		-			-			0.01				-
Adjusted EPS	$	0.91		$	0.67		$	1.54			$	1.21


PerkinElmer, Inc. and Subsidiaries
REVENUE AND OPERATING INCOME (LOSS)



			Three Months Ended						Six Months Ended
(In thousands, except percentages)			July 1, 2018			July 2, 2017			July 1, 2018			July 2, 2017


DAS	Reported revenue	$	430,628		$	383,128		$	827,153		$	744,888

	Reported operating income from continued operations		64,665			51,124			100,862			81,346
	OP%		15.0	%		13.3	%		12.2	%		10.9	%
	Amortization of intangible assets		11,472			12,377			23,183			24,627
	Purchase accounting adjustments		15			16			30			32
	Acquisition and divestiture-related expenses		33			110			71			348
	Significant litigation matters		232			-			4,417			-
	Restructuring and contract termination charges, net		-			-			5,676			7,987
	Adjusted operating income		76,417			63,627			134,239			114,340
	Adjusted OP%		17.7	%		16.6	%		16.2	%		15.3	%

Diagnostics	Reported revenue		272,734			163,834			520,181			316,189
	Purchase accounting adjustments		188			186			375			371
	Adjusted Revenue		272,922			164,020			520,556			316,560

	Reported operating income from continued operations		38,780			36,947			57,174			69,663
	OP%		14.2	%		22.6	%		11.0	%		22.0	%
	Amortization of intangible assets		21,045			5,161			42,234			9,957
	Purchase accounting adjustments		16,103			2,362			25,631			5,549
	Acquisition and divestiture-related expenses		1,616			3,593			4,151			5,951
	Significant litigation matters		(322	)		-			(172	)		-
	Restructuring and contract termination charges, net		-			-			902			1,664
	Adjusted operating income		77,222			48,063			129,920			92,784
	Adjusted OP%		28.3	%		29.3	%		25.0	%		29.3	%

Corporate	Reported operating loss		(15,381	)		(13,888	)		(30,037	)		(27,015	)

Continuing Operations	Reported revenue	$	703,362		$	546,962		$	1,347,334		$	1,061,077
	Purchase accounting adjustments		188			186			375			371
	Adjusted Revenue		703,550			547,148			1,347,709			1,061,448

	Reported operating income from continued operations		88,064			74,183			127,999			123,994
	OP%		12.5	%		13.6	%		9.5	%		11.7	%
	Amortization of intangible assets		32,517			17,538			65,417			34,584
	Purchase accounting adjustments		16,118			2,378			25,661			5,581
	Acquisition and divestiture-related expenses		1,649			3,703			4,222			6,299
	Significant litigation matters		(90	)		-			4,245			-
	Restructuring and contract termination charges, net		-			-			6,578			9,651
	Adjusted operating income	$	138,258		$	97,802		$	234,122		$	180,109
	Adjusted OP%		19.7	%		17.9	%		17.4	%		17.0	%


REPORTED REVENUE AND REPORTED OPERATING INCOME (LOSS) PREPARED IN ACCORDANCE WITH GAAP


PerkinElmer, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS



(In thousands)	July 1, 2018			December 31, 2017

Current assets:
Cash and cash equivalents	$	163,392		$	202,134
Accounts receivable, net		564,041			552,304
Inventories, net		366,961			351,675
Other current assets		108,019			93,842
Total current assets		1,202,413			1,199,955

Property, plant and equipment:
At cost		706,566			630,919
Accumulated depreciation		(402,028	)		(332,853	)
Property, plant and equipment, net		304,538			298,066
Intangible assets, net		1,270,867			1,346,940
Goodwill		2,940,825			3,002,198
Other assets, net		239,135			244,304
Total assets	$	5,957,778		$	6,091,463

Current liabilities:
Current portion of long-term debt	$	17,315		$	217,306
Accounts payable		197,128			222,093
Accrued restructuring and contract termination charges		7,443			8,759
Accrued expenses and other current liabilities		488,642			500,642
Current liabilities of discontinued operations		2,165			2,102
Total current liabilities		712,693			950,902

Long-term debt		1,983,953			1,788,803
Long-term liabilities		743,955			848,570
Total liabilities		3,440,601			3,588,275

Total stockholders' equity		2,517,177			2,503,188
Total liabilities and stockholders' equity	$	5,957,778		$	6,091,463


PREPARED IN ACCORDANCE WITH GAAP


PerkinElmer, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS


	Three Months Ended						Six Months Ended
	July 1, 2018			July 2, 2017			July 1, 2018			July 2, 2017
	(In thousands)						(In thousands)

Operating activities:
Net income	$	64,063		$	204,069		$	90,087		$	242,672
Loss (gain) from discontinued operations and dispositions, net of income taxes		610			(141,343	)		621			(143,884	)
Income from continuing operations		64,673			62,726			90,708			98,788
Adjustments to reconcile income from continuing operations
to net cash provided by continuing operations:
Stock-based compensation		6,816			6,840			12,148			11,767
Restructuring and contract termination charges, net		-			-			6,578			9,651
Depreciation and amortization		43,772			24,758			88,225			49,505
Change in fair value of contingent consideration		6,948			98			7,065			909
Amortization of deferred debt financing costs and accretion of discounts		904			646			1,519			1,231
Losses (gains) on disposition of businesses and assets, net		-			301			-			301
Amortization of acquired inventory revaluation		8,952			2,064			18,160			4,240
Changes in assets and liabilities which provided (used) cash, excluding
effects from companies acquired:
Accounts receivable, net		(8,488	)		(19,878	)		(18,768	)		5,215
Inventories		(17,965	)		(3,075	)		(42,993	)		(9,913	)
Accounts payable		(14,358	)		(6,972	)		(24,384	)		(20,855	)
Accrued expenses and other		(18,268	)		(13,062	)		(79,831	)		(55,193	)
Net cash provided by operating activities of continuing operations		72,986			54,446			58,427			95,646
Net cash (used in) provided by operating activities of discontinued operations		-			(6,328	)		-			6,207
Net cash provided by operating activities		72,986			48,118			58,427			101,853

Investing activities:
Capital expenditures		(16,956	)		(5,492	)		(39,608	)		(11,473	)
Proceeds from surrender of life insurance policies		-			45			72			45
Proceeds from disposition of investments		173			-			173			-
Activity related to acquisitions and investments, net of cash and cash equivalents acquired		(39,470	)		-			(40,557	)		(123,578	)
Net cash used in investing activities of continuing operations		(56,253	)		(5,447	)		(79,920	)		(135,006	)
Net cash provided by investing activities of discontinued operations		-			277,262			-			276,982
Net cash (used in) provided by investing activities		(56,253	)		271,815			(79,920	)		141,976

Financing Activities:
Payments on borrowings		(520,000	)		-			(667,000	)		(145,950	)
Proceeds from borrowings		138,000			-			342,000			146,952
Proceeds from sale of senior debt		369,340			-			369,340			-
Payments of debt issuance costs		(2,634	)		-			(2,634	)		-
Settlement of cash flow hedges		3,458			(2,745	)		(32,711	)		(4,314	)
Net payments on other credit facilities		(7,147	)		(291	)		(10,154	)		(577	)
Payments for acquisition-related contingent consideration		-			-			-			(8,940	)
Proceeds from issuance of common stock under stock plans		881			8,596			8,348			13,223
Purchases of common stock		(95	)		(138	)		(4,649	)		(3,265	)
Dividends paid		(7,744	)		(7,690	)		(15,471	)		(15,363	)
Net cash used in financing activities of continuing operations		(25,941	)		(2,268	)		(12,931	)		(18,234	)
Net cash used in financing activities of discontinued operations		-			(319	)		-			(533	)
Net cash used in financing activities		(25,941	)		(2,587	)		(12,931	)		(18,767	)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash		(8,201	)		8,583			(4,351	)		14,928

Net decrease in cash, cash equivalents, and restricted cash		(17,409	)		325,929			(38,775	)		239,990
Cash, cash equivalents, and restricted cash at beginning of period		181,005			290,629			202,371			376,568
Cash, cash equivalents, and restricted cash at end of period	$	163,596		$	616,558		$	163,596		$	616,558


Supplemental disclosure of cash flow information:
Reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total shown in the consolidated statements of cash flows:
Cash and cash equivalents	$	163,392			616,308		$	163,392			616,308
Restricted cash included in other current assets		204			250			204			250
Total cash, cash equivalents and restricted cash	$	163,596		$	616,558		$	163,596		$	616,558

PREPARED IN ACCORDANCE WITH GAAP


PerkinElmer, Inc. and Subsidiaries
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES ⁽¹⁾

(In millions, except per share data and percentages)	PKI
	Three Months Ended
	July 1, 2018					July 2, 2017

Adjusted revenue:
Revenue	$	703.4				$	547.0
Purchase accounting adjustments		0.2					0.2
Adjusted revenue	$	703.6				$	547.1

Adjusted gross margin:
Gross margin	$	340.1		48.4	%	$	257.6		47.1	%
Amortization of intangible assets		11.6		1.6	%		7.1		1.3	%
Purchase accounting adjustments		9.2		1.3	%		2.3		0.4	%
Adjusted gross margin	$	360.9		51.3	%	$	267.0		48.8	%

Adjusted SG&A:
SG&A	$	204.9		29.1	%	$	149.9		27.4	%
Amortization of intangible assets		(20.9	)	-3.0	%		(10.4	)	-1.9	%
Purchase accounting adjustments		(7.0	)	-1.0	%		(0.1	)	0.0	%
Acquisition and divestiture-related expenses		(1.6	)	-0.2	%		(3.7	)	-0.7	%
Significant litigation matters		0.1		0.0	%		-		0.0	%
Adjusted SG&A	$	175.5		24.9	%	$	135.7		24.8	%

Adjusted R&D:
R&D	$	47.2		6.7	%	$	33.6		6.1	%
Amortization of intangible assets		(0.1	)	0.0	%		(0.1	)	0.0	%
Adjusted R&D	$	47.1		6.7	%	$	33.5		6.1	%

Adjusted operating income:
Operating income	$	88.1		12.5	%	$	74.2		13.6	%
Amortization of intangible assets		32.5		4.6	%		17.5		3.2	%
Purchase accounting adjustments		16.1		2.3	%		2.4		0.4	%
Acquisition and divestiture-related expenses		1.6		0.2	%		3.7		0.7	%
Significant litigation matters		(0.1	)	0.0	%		-		0.0	%
Restructuring and contract termination charges, net		-		0.0	%		-		0.0	%
Adjusted operating income	$	138.3		19.7	%	$	97.8		17.9	%


	PKI
	Three Months Ended
	July 1, 2018					July 2, 2017

Adjusted EPS:
GAAP EPS	$	0.57				$	1.84
Discontinued operations, net of income taxes		(0.01	)				1.28
GAAP EPS from continuing operations		0.58					0.57
Amortization of intangible assets		0.29					0.16
Purchase accounting adjustments		0.14					0.02
Significant litigation matters		(0.00	)				-
Acquisition and divestiture-related expenses		0.02					(0.02	)
Gain on disposition of businesses and assets, net		-					0.00
Mark to market on postretirement benefits		-					(0.00	)
Tax on above items		(0.12	)				(0.06	)
Adjusted EPS	$	0.91				$	0.67


	DAS
	Three Months Ended
	July 1, 2018					July 2, 2017

Revenue	$	430.6				$	383.1

Adjusted operating income:
Operating income	$	64.7		15.0	%	$	51.1		13.3	%
Amortization of intangible assets		11.5		2.7	%		12.4		3.2	%
Purchase accounting adjustments		0.0		0.0	%		0.0		0.0	%
Acquisition and divestiture-related expenses		0.0		0.0	%		0.1		0.0	%
Significant litigation matters		0.2		0.1	%		-		0.0	%
Adjusted operating income	$	76.4		17.7	%	$	63.6		16.6	%


	Diagnostics
	Three Months Ended
	July 1, 2018					July 2, 2017

Adjusted revenue:
Revenue	$	272.7				$	163.8
Purchase accounting adjustments		0.2					0.2
Adjusted revenue	$	272.9				$	164.0

Adjusted operating income:
Operating income	$	38.8		14.2	%	$	36.9		22.6	%
Amortization of intangible assets		21.0		7.7	%		5.2		3.2	%
Purchase accounting adjustments		16.1		5.9	%		2.4		1.4	%
Acquisition and divestiture-related expenses		1.6		0.6	%		3.6		2.2	%
Significant litigation matters		(0.3	)	-0.1	%		-		0.0	%
Adjusted operating income	$	77.2		28.3	%	$	48.1		29.3	%


(1) amounts may not sum due to rounding


PerkinElmer, Inc. and Subsidiaries
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES ⁽¹⁾

(In millions, except per share data and percentages)	PKI
	Six Months Ended
	July 1, 2018					July 2, 2017

Adjusted revenue:
Revenue	$	1,347.3				$	1,061.1
Purchase accounting adjustments		0.4					0.4
Adjusted revenue	$	1,347.7				$	1,061.4

Adjusted gross margin:
Gross margin	$	632.4		46.9	%	$	497.4		46.9	%
Amortization of intangible assets		23.3		1.7	%		14.2		1.3	%
Purchase accounting adjustments		18.6		1.4	%		4.6		0.4	%
Adjusted gross margin	$	674.2		50.0	%	$	516.2		48.6	%

Adjusted SG&A:
SG&A	$	404.6		30.0	%	$	296.9		28.0	%
Amortization of intangible assets		(42.0	)	-3.1	%		(20.2	)	-1.9	%
Purchase accounting adjustments		(7.1	)	-0.5	%		(0.9	)	-0.1	%
Acquisition and divestiture-related expenses		(4.2	)	-0.3	%		(6.3	)	-0.6	%
Significant litigation matters		(4.2	)	-0.3	%		-		0.0	%
Adjusted SG&A	$	347.0		25.8	%	$	269.4		25.4	%

Adjusted R&D:
R&D	$	93.2		6.9	%	$	66.8		6.3	%
Amortization of intangible assets		(0.2	)	0.0	%		(0.2	)	0.0	%
Adjusted R&D	$	93.0		6.9	%	$	66.7		6.3	%

Adjusted operating income:
Operating income	$	128.0		9.5	%	$	124.0		11.7	%
Amortization of intangible assets		65.4		4.9	%		34.6		3.3	%
Purchase accounting adjustments		25.7		1.9	%		5.6		0.5	%
Acquisition and divestiture-related expenses		4.2		0.3	%		6.3		0.6	%
Significant litigation matters		4.2		0.3	%		-		0.0	%
Restructuring and contract termination charges, net		6.6		0.5	%		9.7		0.9	%
Adjusted operating income	$	234.1		17.4	%	$	180.1		17.0	%


	PKI
	Six Months Ended
	July 1, 2018					July 2, 2017

Adjusted EPS:
GAAP EPS	$	0.81				$	2.20
Discontinued operations		(0.01	)				1.30
GAAP EPS from continuing operations		0.81					0.89
Amortization of intangible assets		0.59					0.31
Purchase accounting adjustments		0.23					0.05
Significant litigation matters		0.04					-
Acquisition and divestiture-related expenses		0.03					0.01
Gain on disposition of businesses and assets, net		-					0.00
Mark to market on postretirement benefits		-					(0.00	)
Restructuring and contract termination charges, net		0.06					0.09
Tax on above items		(0.24	)				(0.14	)
Impact of tax act		0.01					-
Adjusted EPS	$	1.54				$	1.21


	PKI
						Twelve Months Ended
						December 30, 2018
Adjusted EPS:						Projected
GAAP EPS from continuing operations						$	2.39
Amortization of intangible assets							1.20
Purchase accounting adjustments							0.31
Significant litigation matters							0.04
Acquisition and divestiture-related expenses							0.06
Restructuring and contract termination charges, net							0.06
Tax on above items							(0.42	)
Impact of tax act							0.01
Adjusted EPS						$	3.65


	DAS
	Six Months Ended
	July 1, 2018					July 2, 2017

Revenue	$	827.2				$	744.9

Adjusted operating income:
Operating income	$	100.9		12.2	%	$	81.3		10.9	%
Amortization of intangible assets		23.2		2.8	%		24.6		3.3	%
Purchase accounting adjustments		0.0		0.0	%		0.0		0.0	%
Acquisition and divestiture-related expenses		0.1		0.0	%		0.3		0.0	%
Significant litigation matters		4.4		0.5	%		-		0.0	%
Restructuring and contract termination charges, net		5.7		0.7	%		8.0		1.1	%
Adjusted operating income	$	134.2		16.2	%	$	114.3		15.3	%


	Diagnostics
	Six Months Ended
	July 1, 2018					July 2, 2017

Adjusted revenue:
Revenue	$	520.2				$	316.2
Purchase accounting adjustments		0.4					0.4
Adjusted revenue	$	520.6				$	316.6

Adjusted operating income:
Operating income	$	57.2		11.0	%	$	69.7		22.0	%
Amortization of intangible assets		42.2		8.1	%		10.0		3.1	%
Purchase accounting adjustments		25.6		4.9	%		5.5		1.8	%
Acquisition and divestiture-related expenses		4.2		0.8	%		6.0		1.9	%
Significant litigation matters		(0.2	)	0.0	%		-		0.0	%
Restructuring and contract termination charges, net		0.9		0.2	%		1.7		0.5	%
Adjusted operating income	$	129.9		25.0	%	$	92.8		29.3	%


(1) amounts may not sum due to rounding


PerkinElmer, Inc. and Subsidiaries
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES


				PKI
				Three Months Ended
				July 1, 2018
Core Organic revenue growth:
Reported revenue growth				29%
Less: effect of foreign exchange rates				3%
Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses				16%
Core Organic revenue growth				10%


				DAS
				Three Months Ended
				July 1, 2018
Organic revenue growth:
Reported revenue growth				12%
Less: effect of foreign exchange rates				2%
Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses				0%
Organic revenue growth				10%


				Diagnostics
				Three Months Ended
				July 1, 2018
Organic revenue growth:
Reported revenue growth				66%
Less: effect of foreign exchange rates				3%
Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses				53%
Organic revenue growth				10%

We report our financial results in accordance with GAAP. However, management believes that, in order to more fully understand our short-term and long-term financial and operational trends, investors may wish to consider the impact of certain non-cash, non-recurring or other items, which result from facts and circumstances that vary in frequency and impact on continuing operations. Accordingly, we present non-GAAP financial measures as a supplement to the financial measures we present in accordance with GAAP. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by adjusting for certain non-cash expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods more difficult, obscure trends in ongoing operations, or reduce management's ability to make useful forecasts. Management believes these non-GAAP financial measures provide additional means of evaluating period-over-period operating performance. In addition, management understands that some investors and financial analysts find this information helpful in analyzing our financial and operational performance and comparing this performance to our peers and competitors.

We use the term “adjusted revenue” to refer to GAAP revenue, including purchase accounting adjustments for revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules. We use the related term “adjusted revenue growth” to refer to the measure of comparing current period adjusted revenue with the corresponding period of the prior year.

We use the term “organic revenue” to refer to GAAP revenue, excluding the effect of foreign currency changes and including acquisitions growth from the comparable prior period, and including purchase accounting adjustments for revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules. We also exclude the impact of sales from divested businesses by deducting the effects of divested business revenue from the current and prior periods. We use the related term “organic revenue growth” to refer to the measure of comparing current period organic revenue with the corresponding period of the prior year.

We use the term “core organic revenue” to refer to GAAP revenue excluding Euroimmun, excluding the effect of foreign currency changes and including acquisitions growth from the comparable prior period, and including purchase accounting adjustments for revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules. We also exclude the impact of sales from divested businesses by deducting the effects of divested business revenue from the current and prior periods. We use the related term “core organic revenue growth” to refer to the measure of comparing current period organic revenue with the corresponding period of the prior year.

We use the term “adjusted gross margin” to refer to GAAP gross margin, excluding amortization of intangible assets and inventory fair value adjustments related to business acquisitions, and including purchase accounting adjustments for revenue from contracts acquired in acquisitions that will not be fully recognized due to business combination accounting rules. We use the related term “adjusted gross margin percentage” to refer to adjusted gross margin as a percentage of adjusted revenue.

We use the term “adjusted SG&A expense” to refer to GAAP SG&A expense, excluding amortization of intangible assets, purchase accounting adjustments, acquisition and divestiture-related expenses, significant litigation matters and significant environmental charges. We use the related term “adjusted SG&A percentage” to refer to adjusted SG&A expense as a percentage of adjusted revenue.

We use the term “adjusted R&D expense” to refer to GAAP R&D expense, excluding amortization of intangible assets. We use the related term “adjusted R&D percentage” to refer to adjusted R&D expense as a percentage of adjusted revenue.

We use the term “adjusted operating income,” to refer to GAAP operating income, including revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules, and excluding amortization of intangible assets, other purchase accounting adjustments, acquisition and divestiture-related expenses, significant litigation matters, significant environmental charges, and restructuring and contract termination charges. We use the related terms “adjusted operating profit percentage,” “adjusted operating profit margin,” or “adjusted operating margin” to refer to adjusted operating income as a percentage of adjusted revenue.

We use the term “adjusted earnings per share,” or “adjusted EPS,” to refer to GAAP earnings per share, including revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules, and excluding discontinued operations, amortization of intangible assets, other purchase accounting adjustments, acquisition and divestiture-related expenses, significant litigation matters, significant environmental charges, disposition of businesses and assets, net, and restructuring and contract termination charges. We also exclude adjustments for mark-to-market accounting on post-retirement benefits, therefore only our projected costs have been used to calculate our non-GAAP measure. We also adjust for any tax impact related to the above items.

Management includes or excludes the effect of each of the items identified below in the applicable non-GAAP financial measure referenced above for the reasons set forth below with respect to that item:

The tax effect for discontinued operations is calculated based on the authoritative guidance in the Financial Accounting Standards Board’s Accounting Standards Codification 740, Income Taxes. The tax effect for amortization of intangible assets, inventory fair value adjustments related to business acquisitions, changes to the fair values assigned to contingent consideration, other costs related to business acquisitions and divestitures, significant litigation matters, significant environmental charges, adjustments for mark-to-market accounting on post-retirement benefits, disposition of businesses and assets, net, restructuring and contract termination charges, and the revenue from contracts acquired with various acquisitions is calculated based on operational results and applicable jurisdictional law, which contemplates tax rates currently in effect to determine our tax provision. The tax effect for the impact from foreign currency exchange rates on the current period is calculated based on the average rate currently in effect to determine our tax provision.

The non-GAAP financial measures described above are not meant to be considered superior to, or a substitute for, our financial statements prepared in accordance with GAAP. There are material limitations associated with non-GAAP financial measures because they exclude charges that have an effect on our reported results and, therefore, should not be relied upon as the sole financial measures by which to evaluate our financial results. Management compensates and believes that investors should compensate for these limitations by viewing the non-GAAP financial measures in conjunction with the GAAP financial measures. In addition, the non-GAAP financial measures included in this earnings announcement may be different from, and therefore may not be comparable to, similar measures used by other companies.

Each of the non-GAAP financial measures listed above is also used by our management to evaluate our operating performance, communicate our financial results to our Board of Directors, benchmark our results against our historical performance and the performance of our peers, evaluate investment opportunities including acquisitions and discontinued operations, and determine the bonus payments for senior management and employees.

CONTACT:
PerkinElmer, Inc.
Investor Relations:
Tommy J. Thomas, CPA, 781-663-5889
tommy.thomas@perkinelmer.com
or
Media Contact:
Fara Goldberg, 781-663-5699
fara.goldberg@perkinelmer.com