Perkinelmer (PKI) has reported 18.67 percent fall in profit for the quarter ended Apr. 02, 2017. The company has earned $38.60 million, or $0.35 a share in the quarter, compared with $47.47 million, or $0.43 a share for the same period last year. On an adjusted basis, earnings per share were at $0.50 for the quarter compared with $0.55 in the same period last year.

Revenue during the quarter grew 3.23 percent to $514.12 million from $498.02 million in the previous year period. Gross margin for the quarter contracted 60 basis points over the previous year period to 46.61 percent. Total expenses were 89.97 percent of quarterly revenues, up from 87.84 percent for the same period last year. That has resulted in a contraction of 213 basis points in operating margin to 10.03 percent.

Operating income for the quarter was $51.58 million, compared with $60.58 million in the previous year period.

However, the adjusted operating income for the quarter stood at $84.10 million compared to $81.20 million in the prior year period. At the same time, adjusted operating margin improved 5 basis points in the quarter to 16.36 percent from 16.30 percent in the last year period.

"We are encouraged by our first quarter performance as we continue to see the benefits from our investments in new product innovations and better operational execution," said Robert Friel, chairman and chief executive officer of PerkinElmer. "We believe these efforts coupled with our leading positions in attractive market segments will allow us to deliver on our commitments in 2017 and beyond."

For fiscal year 2017, the company expects diluted earnings per share to be in the range of $2.16 to $2.26. The company expects diluted earnings per share to be in the range of $2.80 to $2.90 on adjusted basis.

The company has spent $114.69 million cash to meet investing activities during the quarter as against cash outgo of $17.29 million in the last year period.

The company has spent $16.18 million cash to carry out financing activities during the quarter as against cash outgo of $47.70 million in the last year period.

Cash and cash equivalents stood at $288.33 million as on Apr. 02, 2017, up 36.82 percent or $77.60 million from $210.73 million on Apr. 03, 2016.

Working capital increases marginally
Perkinelmer has recorded an increase in the working capital over the last year. It stood at $515.97 million as at Apr. 02, 2017, up 4.18 percent or $20.70 million from $495.27 million on Apr. 03, 2016. Current ratio was at 1.86 as on Apr. 02, 2017, down from 1.89 on Apr. 03, 2016.

Cash conversion cycle (CCC) has decreased to 68 days for the quarter from 130 days for the last year period. Days sales outstanding went down to 75 days for the quarter compared with 80 days for the same period last year.

Days inventory outstanding has decreased to 44 days for the quarter compared with 104 days for the previous year period. At the same time, days payable outstanding went down to 52 days for the quarter from 54 for the same period last year.