Revenue during the quarter went down marginally by 2.73 percent to $548.05 million from $563.44 million in the previous year period. Gross margin for the quarter expanded 240 basis points over the previous year period to 47.59 percent. Total expenses were 85.18 percent of quarterly revenues, down from 86.53 percent for the same period last year. This has led to an improvement of 135 basis points in operating margin to 14.82 percent.

Operating income for the quarter was $81.23 million, compared with $75.90 million in the previous year period.

However, the adjusted operating income for the quarter stood at $103.88 million compared to $95.72 million in the prior year period. At the same time, adjusted operating margin improved 196 basis points in the quarter to 18.95 percent from 16.99 percent in the last year period.

"During the third quarter we continued to drive solid operational improvements across the Company resulting in strong margin expansion and EPS growth, however our top line performance was disappointing as our capital intensive businesses experienced challenging market conditions," said Robert Friel, chairman and chief executive officer of PerkinElmer. "We believe the strong profit performance this quarter and year-to-date validates the steps we are taking to rebalance the portfolio and the recent realignment of our operating segments into Diagnostics and Discovery & Analytical Solutions will help us accelerate that transition."

For financial year 2016, PerkinElmer, Inc forecasts diluted earnings per share from continuing operation to be in the range of $2.24 to $2.26. The company forecasts diluted earnings per share to be in the range of $2.75 to $2.77 on adjusted basis.

The company has spent $78.19 million cash to meet investing activities during the nine month period as against cash outgo of $35.73 million in the last year period.

The company has spent $52.64 million cash to carry out financing activities during the nine month period as against cash outgo of $92.43 million in the last year period.

Cash and cash equivalents stood at $311.66 million as on Oct. 02, 2016, up 59.77 percent or $116.60 million from $195.07 million on Oct. 04, 2015.

Working capital increases
PerkinElmer, Inc has recorded an increase in the working capital over the last year. It stood at $605.58 million as at Oct. 02, 2016, up 16.56 percent or $86.01 million from $519.56 million on Oct. 04, 2015. Current ratio was at 2.11 as on Oct. 02, 2016, up from 1.94 on Oct. 04, 2015.

Cash conversion cycle (CCC) has decreased to 68 days for the quarter from 120 days for the last year period. Days sales outstanding were almost stable at 72 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 48 days for the quarter compared with 98 days for the previous year period. At the same time, days payable outstanding went up to 53 days for the quarter from 51 for the same period last year.