PerkinElmer Announces Financial Results for the Fourth Quarter of 2012

  PerkinElmer Announces Financial Results for the Fourth Quarter of 2012

  *Revenue growth of 6%; Organic revenue growth of 3%
  *GAAP loss per share from continuing operations of $0.14; Adjusted earnings
    per share of $0.65
  *Full year revenue growth of 10%; Organic revenue growth of 5%; Adjusted
    operating profit margin increase of 100 basis points driving adjusted
    earnings per share growth of 13%

Business Wire

WALTHAM, Mass. -- January 31, 2013

PerkinElmer, Inc. (NYSE: PKI), a global leader focused on improving the health
and safety of people and the environment, today reported financial results for
the fourth quarter ended December 30, 2012.

The Company reported GAAP loss per share from continuing operations of $0.14,
compared to a loss per share of $0.74 in the fourth quarter of 2011. Revenue
in the fourth quarter of 2012 was $572.9 million, as compared to $539.3
million in the fourth quarter of 2011. GAAP operating loss from continuing
operations for the fourth quarter of 2012 was $30.8 million, compared to a
loss of $25.9 million in the fourth quarter of 2011, impacted by non-cash
charges related to trade names and mark-to-market pension plan adjustments
noted in the attached reconciliations.

Adjusted earnings per share was $0.65, compared to $0.62 in the fourth quarter
of 2011. Adjusted revenue for the quarter grew 4% to $577.0 million, compared
to $553.9 million in the fourth quarter of 2011. Organic revenue growth was 3%
after adjusting for acquisitions which added 2%, partially offset by a
decrease due to unfavorable foreign currency translation of 1%. Adjusted
operating income for the fourth quarter of 2012 was $105.6 million, compared
to $102.5 million for the same period a year ago. Adjusted operating profit
margin was 18.3% as a percentage of adjusted revenue, compared to 18.5% for
the same period a year ago. For the Company’s non-GAAP financial measures,
adjustments have been noted in the attached reconciliations.

“We are pleased with our strong finish to 2012, particularly in light of
difficult year over year comparisons in the fourth quarter. This performance
caps another solid year of revenue growth and adjusted operating margin
expansion which we believe is a result of our differentiated detection,
imaging, and informatics portfolios each focused on attractive end markets,”
said Robert Friel, chairman and chief executive officer of PerkinElmer. “As we
move into 2013, we expect to continue to make balanced growth and productivity
investments thereby enabling future growth and profitability for our
shareholders while addressing critical health and environmental needs.”

Cash Flow

For the year ended December 30, 2012, operating cash flow from continuing
operations was $153.6 million as compared to $234.0 million in 2011. The full
year 2012 results were impacted by increased pension contributions, tax
payments, incremental working capital and prepaid royalties.

Financial Overview by Reporting Segment for the Fourth Quarter 2012

Human Health

  *Revenue of $274.5 million; Adjusted revenue of $275.1 million. Adjusted
    revenue increased 6%, organic revenue growth was 3%.
  *Operating loss of $14.8 million due primarily to non-cash charges related
    to trade names. Adjusted operating income of $60.1 million.
  *Adjusted operating profit margin was 21.9% as a percentage of adjusted
    revenue, as compared to 22.9% in the fourth quarter of 2011.

Environmental Health

  *Revenue of $298.4 million; Adjusted revenue of $301.9 million. Adjusted
    revenue increased 3%, organic revenue growth was 3%.
  *Operating income of $24.9 million. Adjusted operating income of $55.9
    million.
  *Adjusted operating profit margin was 18.5% as a percentage of adjusted
    revenue, as compared to 18.8% in the fourth quarter of 2011.

Financial Guidance – Full Year 2013

For the full year 2013, the Company forecasts organic revenue to increase in
the mid-single digit range relative to 2012. For the full year 2013, the
Company forecasts GAAP earnings per share from continuing operations in the
range of $1.57 to $1.65 and on a non-GAAP basis, which is expected to include
the adjustments noted in the attached reconciliation, the Company forecasts
adjusted earnings per share in the range of $2.24 to $2.32.

Conference Call Information

The Company will discuss its fourth quarter results and its outlook for
business trends in a conference call on January 31, 2013 at 5:00 p.m. Eastern
Time (ET). To access the call, please dial (617) 786-2964 prior to the
scheduled conference call time and provide the access code 83180349. A
playback of this conference call will be available beginning 7:00 p.m. ET,
Thursday, January 31, 2013. The playback phone number is (617) 801-6888 and
the code number is 21844793.

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.

Use of Non-GAAP Financial Measures

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.

Factors Affecting Future Performance

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 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 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) our ability to realize the full value of our intangible
assets; (21) significant fluctuations in our stock price; (22) reduction or
elimination of dividends on our common stock; and (23) 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.

About PerkinElmer

PerkinElmer, Inc. is a global leader focused on improving the health and
safety of people and the environment. The company reported revenue of
approximately $2.1 billion in 2012, has about 7,400 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
CONSOLIDATED INCOME STATEMENTS
                                                             
                                                                  
                      Three Months Ended          Twelve Months Ended
(In thousands,        December      January 1,    December 30,    January 1,
except share and      30, 2012      2012          2012            2012
per share data)
                                    (As                           (As adjusted)
                                    adjusted)
                                                                  
Revenue               $ 572,921     $ 539,330     $ 2,115,205     $ 1,918,508
                                                                  
Cost of revenue         311,263       300,391       1,151,999       1,070,708
Research and
development             33,538        31,502        132,639         115,821
expenses
Selling, general
and administrative      180,708       220,176       632,734         624,393
expenses
Asset impairments       74,153        3,006         74,153          3,006
Restructuring and
contract               4,103       10,112      25,137        13,452    
termination
charges, net
                                                                  
Operating (loss)
income from             (30,844 )     (25,857 )     98,543          91,128
continuing
operations
                                                                  
Interest income         (313    )     (530    )     (747      )     (1,884    )
Interest expense        11,651        12,205        45,787          24,783
Other expense          558         1,156       2,916         3,875     
                                                                  
(Loss) income from
continuing              (42,740 )     (38,688 )     50,587          64,354
operations before
income taxes
                                                                  
(Benefit from)
provision for          (26,548 )    44,536      (17,854   )    63,182    
income taxes
                                                                  
(Loss) income from
continuing              (16,192 )     (83,224 )     68,441          1,172
operations
                                                                  
Gain (loss) on
disposition of
discontinued            490           (73     )     2,405           1,999
operations, before
income taxes
Provision for
(benefit from)
income taxes on        154         344         906           (4,484    )
discontinued
operations and
dispositions
                                                                  
Net income (loss)
from discontinued       336           (417    )     1,499           6,483
operations and
dispositions
                                                                  
Net (loss) income     $ (15,856 )   $ (83,641 )   $ 69,940       $ 7,655     
                                                                  
                                                                  
Diluted (loss)
earnings per share:
Net (loss) income
from continuing       $ (0.14   )   $ (0.74   )   $ 0.60          $ 0.01
operations
                                                                  
Net income (loss)
from discontinued      0.00        (0.00   )    0.01          0.06      
operations and
dispositions
                                                                  
Net (loss) income     $ (0.14   )   $ (0.74   )   $ 0.61         $ 0.07      
                                                                  
                                                                  
Weighted average
shares of common        114,440       112,707       114,860         113,864
stock outstanding
                      Basic         Basic         Diluted         Diluted
                                                                  
ABOVE PREPARED IN ACCORDANCE WITH GAAP
                                                                  
                                                          
Additional
Supplemental
Information:
(per share,
continuing
operations)
                                                                  
GAAP EPS from
continuing            $ (0.14   )   $ (0.74   )   $ 0.60          $ 0.01
operations
Amortization of
intangible assets,      0.13          0.14          0.52            0.45
net of income taxes
Asset impairments,      0.42          0.02          0.42            0.02
net of income taxes
Purchase accounting
adjustments, net of     0.03          0.09          0.16            0.19
income taxes
Acquisition-related
costs, net of           0.00          0.05          0.01            0.09
income taxes
Mark to market and
curtailments on
post-retirement         0.19          0.39          0.20            0.39
benefits, net of
income taxes
Significant tax         -             0.61          -               0.60
credits
Restructuring and
contract
termination            0.03        0.06        0.16          0.08      
charges, net of
income taxes
Adjusted EPS          $ 0.65       $ 0.62       $ 2.06         $ 1.83      
                                                          
                                                                  

PerkinElmer, Inc. and Subsidiaries
REVENUE AND OPERATING INCOME (LOSS)
                                                                            
                                                                                    
                                                                                    
                                        Three Months Ended          Twelve Months Ended
(In thousands, except percentages)      December      January       December        January 1,
                                        30, 2012      1, 2012       30, 2012        2012
                                                      (As                           (As
                                                      adjusted)                     adjusted)
                                                                                    
Human Health    Revenue               $ 274,506     $ 257,655     $ 1,044,134     $ 884,407
                Purchase accounting     609          2,411        6,071          3,304     
                adjustments
                Adjusted Revenue        275,115      260,066      1,050,205      887,711   
                                                                                    
                Operating (loss)        (14,776 )     21,774        73,727          99,306
                income
                OP%                     -5.4    %     8.5     %     7.1       %     11.2      %
                Amortization of         16,510        16,614        67,930          53,894
                intangible assets
                Asset impairments       54,298        3,006         54,298          3,006
                Purchase accounting     1,122         8,065         10,497          10,343
                adjustments
                Acquisition-related     440           5,616         988             9,569
                costs
                Restructuring and
                contract                2,544        4,361        17,587         6,193     
                termination
                charges, net
                Adjusted operating    $ 60,138     $ 59,436     $ 225,027      $ 182,311   
                income
                Adjusted OP%            21.9    %     22.9    %     21.4      %     20.5      %
                                                                                    
Environmental   Revenue               $ 298,415     $ 281,675     $ 1,071,071     $ 1,034,101
Health
                Purchase accounting     3,467        12,116       20,178         27,520    
                adjustments
                Adjusted Revenue        301,882      293,791      1,091,249      1,061,621 
                                                                                    
                Operating income        24,906        32,672        97,313          99,341
                OP%                     8.3     %     11.6    %     9.1       %     9.6       %
                Amortization of         5,984         7,416         23,288          26,096
                intangible assets
                Asset impairments       19,855        -             19,855          -
                Purchase accounting     3,467         9,512         20,054          25,048
                adjustments
                Acquisition-related     111           24            200             1,132
                costs
                Restructuring and
                contract                1,559        5,751        7,550          7,259     
                termination
                charges, net
                Adjusted operating    $ 55,882     $ 55,375     $ 168,260      $ 158,876   
                income
                Adjusted OP%            18.5    %     18.8    %     15.4      %     15.0      %
                                                                                    
Corporate       Operating loss        $ (40,974 )   $ (80,303 )   $ (72,497   )   $ (107,519  )
                Mark to market and
                curtailments on         30,542       68,037       31,761         67,874    
                post-retirement
                benefits
                Adjusted operating    $ (10,432 )   $ (12,266 )   $ (40,736   )   $ (39,645   )
                loss
                                                                                    
                                                                                    
Continuing      Revenue               $ 572,921     $ 539,330     $ 2,115,205     $ 1,918,508
Operations
                Purchase accounting     4,076        14,527       26,249         30,824    
                adjustments
                Adjusted Revenue        576,997      553,857      2,141,454      1,949,332 
                                                                                    
                Operating (loss)        (30,844 )     (25,857 )     98,543          91,128
                income
                OP%                     -5.4    %     -4.8    %     4.7       %     4.7       %
                Amortization of         22,494        24,030        91,218          79,990
                intangible assets
                Asset impairments       74,153        3,006         74,153          3,006
                Purchase accounting     4,589         17,577        30,551          35,391
                adjustments
                Acquisition-related     551           5,640         1,188           10,701
                costs
                Mark to market and
                curtailments on         30,542        68,037        31,761          67,874
                post-retirement
                benefits
                Restructuring and
                contract                4,103        10,112       25,137         13,452    
                termination
                charges, net
                Adjusted operating    $ 105,588    $ 102,545    $ 352,551      $ 301,542   
                income
                Adjusted OP%            18.3    %     18.5    %     16.5      %     15.5      %
                                                                                    
                                                                                    
REPORTED REVENUE AND REPORTED OPERATING INCOME (LOSS) PREPARED IN ACCORDANCE WITH GAAP
                                                                                    

PerkinElmer, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                               
                                                                     
                      Three Months Ended              Twelve Months Ended
                      December 30,   January 1,       December 30,   January 1,
                      2012           2012             2012           2012
(In thousands)
                                                                     
Operating
activities:
Net (loss) income     $ (15,856  )   $ (83,641  )     $ 69,940       $ 7,655
Add: net (income)
loss from
discontinued           (336     )    417            (1,499   )    (6,483   )
operations and
dispositions, net
of income taxes
Net (loss) income
from continuing        (16,192  )    (83,224  )      68,441       1,172    
operations
Adjustments to
reconcile net
(loss) income from
continuing
operations
to net cash
provided by
continuing
operations:
Stock-based             5,679          6,055            21,031         15,482
compensation
Restructuring and
contract                4,103          10,112           25,137         13,452
termination
charges, net
Amortization of
deferred debt           862            3,537            3,517          5,651
issuance costs
Depreciation and        32,074         32,203           126,865        110,921
amortization
(Gains) losses on       -              (87      )       -              113
dispositions, net
Amortization of
acquired inventory      440            3,660            5,214          4,092
revaluation
Pension and other
postretirement          35,336         74,974           35,336         74,974
expenses
Asset impairments       74,153         3,006            74,153         3,006
Changes in
operating assets
and liabilities
which (used)
provided cash,
excluding
effects from
companies purchased
and divested:
Accounts                (59,714  )     (37,970  )       (44,626  )     (20,597  )
receivable, net
Inventories, net        16,234         15,644           (8,213   )     (2,200   )
Accounts payable        10,735         13,736           (7,876   )     (1,776   )
Accrued expenses       (63,912  )    40,900         (145,404 )    29,713   
and other
Net cash provided
by operating
activities of          39,798       82,546         153,575      234,003  
continuing
operations
Net cash used in
operating
activities of          (274     )    (21      )      (1,405   )    (9,129   )
discontinued
operations
Net cash provided
by operating           39,524       82,525         152,170      224,874  
activities
                                                                     
Investing
activities:
Capital                 (18,058  )     (5,613   )       (42,408  )     (30,592  )
expenditures
Proceeds from
dispositions of         -              -                -              456
property, plant and
equipment, net
Proceeds from
surrender of life       -              814              -              814
insurance policies
Changes in
restricted cash         (183     )     127              487            1,250
balances
Payments for
acquisitions and
investments, net of    (34,108  )    (602,772 )      (40,858  )    (914,041 )
cash and cash
equivalents
acquired
Net cash used in
investing
activities of          (52,349  )    (607,444 )      (82,779  )    (942,113 )
continuing
operations
Net cash provided
by investing
activities of          494          -              2,470        32,252   
discontinued
operations
Net cash used in
investing              (51,855  )    (607,444 )      (80,309  )    (909,861 )
activities
                                                                     
Financing
Activities:
Payments on debt        (102,850 )     (267,000 )       (435,850 )     (763,000 )
Proceeds from           104,000        207,000          395,000        787,000
borrowings
Proceeds from the
sale of senior          -              496,860          -              496,860
notes
Payments of debt        -              (9,531   )       (416     )     (10,531  )
issuance costs
Settlement of cash      4,050          -                4,050          -
flow hedges
Changes in other        5,417          -                5,274          (2,303   )
credit facilities
Settlements for
acquisition-related
contingent              -              -                (12,459  )     (137     )
consideration and
other adjustments
Excess tax benefit
from exercise of        -              18               1,767          9,321
equity grants
Proceeds from stock     9,534          66               32,478         23,736
option exercises
Purchases of common     (12      )     (1       )       (2,104   )     (110,005 )
stock
Dividends paid         (8,028   )    (7,916   )      (31,903  )    (31,829  )
Net cash provided
by (used in)
financing              12,111       419,496        (44,163  )    399,112  
activities of
continuing
operations
Net cash used in
financing
activities of          -            -              -            (1,908   )
discontinued
operations
Net cash provided
by (used in)           12,111       419,496        (44,163  )    397,204  
financing
activities
                                                                     
Effect of exchange
rate changes on        836          (337     )      1,404        10,039   
cash and cash
equivalents
                                                                     
Net increase
(decrease) in cash      616            (105,760 )       29,102         (277,744 )
and cash
equivalents
Cash and cash
equivalents at         170,828      248,102        142,342      420,086  
beginning of period
Cash and cash
equivalents at end    $ 171,444     $ 142,342       $ 171,444     $ 142,342  
of period
                                                                     
                                                                     
                                                                     
PREPARED IN ACCORDANCE WITH GAAP
                                                                     

PerkinElmer, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
                                                            
                                                               
                                                               
(In thousands)                             December 30, 2012   January 1, 2012
                                                               (As adjusted)
                                                               
Current assets:
Cash and cash equivalents                  $   171,444         $  142,342
Accounts receivable, net                       457,011            409,888
Inventories, net                               247,688            240,763
Other current assets                           95,611             89,857
Current assets of discontinued                -                202        
operations
Total current assets                          971,754          883,052    
                                                               
Property, plant and equipment, net:
At cost                                        513,479            451,953
Accumulated depreciation                      (302,963   )      (277,386   )
Property, plant and equipment, net             210,516            174,567
Marketable securities and investments          1,149              1,105
Intangible assets, net                         529,901            661,607
Goodwill                                       2,122,788          2,094,235
Other assets, net                             65,654           41,075     
Total assets                               $   3,901,762      $  3,855,641  
                                                               
Current liabilities:
Short-term debt                            $   1,772           $  -
Accounts payable                               168,943            173,153
Accrued restructuring costs                    21,364             13,958
Accrued expenses                               388,026            410,142
Current liabilities of discontinued           995              1,429      
operations
Total current liabilities                     581,100          598,682    
                                                               
Long-term debt                                 938,824            944,908
Accrued restructuring costs                    6,387              8,928
Long-term liabilities                         435,639          460,907    
Total liabilities                             1,961,950        2,013,425  
                                                               
Total stockholders' equity                    1,939,812        1,842,216  
Total liabilities and stockholders'        $   3,901,762      $  3,855,641  
equity
                                                               
                                                               
PREPARED IN ACCORDANCE WITH GAAP
                                                               

PerkinElmer, Inc. and Subsidiaries
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
                             
(In millions, except per      PKI
share data and percentages)
                              Three Months Ended
                              December 30, 2012        January 1, 2012
                                                       (As adjusted)
Adjusted revenue:
Revenue                       $    572.9               $   539.3
Purchase accounting               4.1                  14.5       
adjustments
Adjusted revenue              $    577.0             $   553.9      
                                                                       
Adjusted gross margin:
Gross margin                  $    261.7        45.7 % $   238.9       44.3  %
Amortization of intangible         13.1         2.3  %     14.7        2.7   %
assets
Purchase accounting                4.5          0.8  %     18.2        3.4   %
adjustments
Mark to market and
curtailments on                   2.5         0.4  %    4.4        0.8   %
post-retirement benefits
Adjusted gross margin         $    281.8       48.8 % $   276.2      49.9  %
                                                                       
Adjusted SG&A:
SG&A                          $    180.7        31.5 % $   220.2       40.8  %
Amortization of intangible         (9.3     )   -1.6 %     (9.3    )   -1.7  %
assets
Purchase accounting                (0.1     )   0.0  %     0.6         0.1   %
adjustments
Acquisition-related costs          (0.6     )   -0.1 %     (5.6    )   -1.0  %
Mark to market and
curtailments on                   (27.9    )   -4.9 %    (62.9   )   -11.7 %
post-retirement benefits
Adjusted SG&A                 $    142.9       24.8 % $   143.0      25.8  %
                                                                       
Adjusted R&D:
R&D                           $    33.5         5.9  % $   31.5        5.8   %
Amortization of intangible         (0.1     )   0.0  %     (0.1    )   0.0   %
assets
Mark to market and
curtailments on                   (0.2     )   0.0  %    (0.8    )   -0.1  %
post-retirement benefits
Adjusted R&D                  $    33.3        5.8  % $   30.7       5.5   %
                                                                       
Adjusted operating income:
Operating loss                $    (30.8    )   -5.4 % $   (25.9   )   -4.8  %
Amortization of intangible         22.5         3.9  %     24.0        4.5   %
assets
Asset impairments                  74.2         12.9 %     3.0         0.6   %
Purchase accounting                4.6          0.8  %     17.6        3.3   %
adjustments
Acquisition-related costs          0.6          0.1  %     5.6         1.0   %
Mark to market and
curtailments on                    30.5         5.3  %     68.0        12.6  %
post-retirement benefits
Restructuring and contract        4.1         0.7  %    10.1       1.9   %
termination charges, net
Adjusted operating income     $    105.6       18.3 % $   102.5      18.5  %
                              
                              PKI
                              Three Months Ended
                              December 30, 2012        January 1, 2012
                                                       (As adjusted)
Adjusted EPS:
EPS                           $    (0.14    )          $   (0.74   )
Discontinued operations,          0.00                 (0.00   )   
net of income taxes
EPS from continuing                (0.14    )              (0.74   )
operations
Amortization of intangible         0.13                    0.14
assets, net of income taxes
Asset impairments, net of          0.42                    0.02
income taxes
Purchase accounting
adjustments, net of income         0.03                    0.09
taxes
Acquisition-related costs,         0.00                    0.05
net of income taxes
Mark to market and
curtailments on                    0.19                    0.39
post-retirement benefits
Significant tax credits            -                       0.61
Restructuring and contract
termination charges, net of       0.03                 0.06       
income taxes
Adjusted EPS                  $    0.65              $   0.62       
                              
                              Human Health
                              Three Months Ended
                              December 30, 2012        January 1, 2012
                                                       (As adjusted)
Adjusted revenue:
Revenue                       $    274.5               $   257.7
Purchase accounting               0.6                  2.4        
adjustments
Adjusted revenue              $    275.1             $   260.1      
                                                                       
Adjusted operating income:
Operating loss                $    (14.8    )   -5.4 % $   21.8        8.5   %
Amortization of intangible         16.5         6.0  %     16.6        6.4   %
assets
Asset impairments                  54.3         19.8 %     3.0         1.2   %
Purchase accounting                1.1          0.4  %     8.1         3.1   %
adjustments
Acquisition-related costs          0.4          0.2  %     5.6         2.2   %
Restructuring and contract        2.5         0.9  %    4.4        1.7   %
termination charges, net
Adjusted operating income     $    60.1        21.9 % $   59.4       22.9  %
                              
                              Environmental Health
                              Three Months Ended
                              December 30, 2012        January 1, 2012
                                                       (As adjusted)
Adjusted revenue:
Revenue                       $    298.4               $   281.7
Purchase accounting               3.5                  12.1       
adjustments
Adjusted revenue              $    301.9             $   293.8      
                                                                       
Adjusted operating income:
Operating income              $    24.9         8.3  % $   32.7        11.6  %
Amortization of intangible         6.0          2.0  %     7.4         2.6   %
assets
Asset impairments                  19.9         6.7  %     -           0.0   %
Purchase accounting                3.5          1.2  %     9.5         3.4   %
adjustments
Acquisition-related costs          0.1          0.0  %     0.0         0.0   %
Restructuring and contract        1.6         0.5  %    5.8        2.0   %
termination charges, net
Adjusted operating income     $    55.9        18.5 % $   55.4       18.8  %
                                                                             

PerkinElmer, Inc. and Subsidiaries
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
                              
(In millions, except per       PKI
share data and percentages)
                               Twelve Months Ended
                               December 30, 2012        January 1, 2012
                                                        (As adjusted)
Adjusted revenue:
Revenue                        $   2,115.2              $   1,918.5
Purchase accounting               26.2                  30.8       
adjustments
Adjusted revenue               $   2,141.5            $   1,949.3    
                                                                        
Adjusted gross margin:
Gross margin                   $   963.2         45.5 % $   847.8       44.2 %
Amortization of intangible         51.8          2.4  %     53.4        2.8  %
assets
Purchase accounting                31.5          1.5  %     34.9        1.8  %
adjustments
Mark to market and
curtailments on                   3.7          0.2  %    4.2        0.2  %
post-retirement benefits
Adjusted gross margin          $   1,050.2      49.0 % $   940.4      48.2 %
                                                                        
Adjusted SG&A:
SG&A                           $   632.7         29.9 % $   624.4       32.5 %
Amortization of intangible         (38.9     )   -1.8 %     (25.9    )  -1.3 %
assets
Purchase accounting                0.9           0.0  %     (0.5     )  0.0  %
adjustments
Acquisition-related costs          (1.2      )   -0.1 %     (10.7    )  -0.6 %
Mark to market and
curtailments on                   (27.9     )   -1.3 %    (62.9    )  -3.3 %
post-retirement benefits
Adjusted SG&A                  $   565.6        26.4 % $   524.5      26.9 %
                                                                        
Adjusted R&D:
R&D                            $   132.6         6.3  % $   115.8       6.0  %
Amortization of intangible         (0.5      )   0.0  %     (0.7     )  0.0  %
assets
Mark to market and
curtailments on                   (0.2      )   0.0  %    (0.8     )  0.0  %
post-retirement benefits
Adjusted R&D                   $   132.0        6.2  % $   114.3      5.9  %
                                                                        
Adjusted operating income:
Operating income               $   98.5          4.7  % $   91.1        4.7  %
Amortization of intangible         91.2          4.3  %     80.0        4.2  %
assets
Asset impairments                  74.2          3.5  %     3.0         0.2  %
Purchase accounting                30.6          1.4  %     35.4        1.8  %
adjustments
Acquisition-related costs          1.2           0.1  %     10.7        0.6  %
Mark to market and
curtailments on                    31.8          1.5  %     67.9        3.5  %
post-retirement benefits
Restructuring and contract        25.1         1.2  %    13.5       0.7  %
termination charges, net
Adjusted operating income      $   352.6        16.5 % $   301.5      15.5 %
                               
                               PKI
                               Twelve Months Ended
                               December 30, 2012        January 1, 2012
                                                        (As adjusted)
Adjusted EPS:
EPS                            $   0.61                 $   0.07
Discontinued operations, net      0.01                  0.06       
of income taxes
EPS from continuing                0.60                     0.01
operations
Amortization of intangible         0.52                     0.45
assets, net of income taxes
Asset impairments, net of          0.42                     0.02
income taxes
Purchase accounting
adjustments, net of income         0.16                     0.19
taxes
Acquisition-related costs,         0.01                     0.09
net of income taxes
Mark to market and
curtailments on                    0.20                     0.39
post-retirement benefits,
net of income taxes
Significant tax credits            -                        0.60
Restructuring and contract
termination charges, net of       0.16                  0.08       
income taxes
Adjusted EPS                   $   2.06               $   1.83       
                               
                               PKI
                                                        Twelve Months
                                                        Ended
                                                        December 29,
                                                        2013
Adjusted EPS:                                           Projected
EPS from continuing                                     $   1.57 -
operations                                                  $1.65
Amortization of intangible                                  0.51
assets, net of income taxes
Purchase accounting
adjustments, net of income                                  0.13
taxes
Restructuring and contract
termination charges, net of                              0.03       
income taxes
Adjusted EPS                                          $   2.24 -     
                                                            $2.32
                               
                               Human Health
                               Twelve Months Ended
                               December 30, 2012        January 1, 2012
                                                        (As adjusted)
Adjusted revenue:
Revenue                        $   1,044.1              $   884.4
Purchase accounting               6.1                   3.3        
adjustments
Adjusted revenue               $   1,050.2            $   887.7      
                                                                        
Adjusted operating income:
Operating income               $   73.7          7.1  % $   99.3        11.2 %
Amortization of intangible         67.9          6.5  %     53.9        6.1  %
assets
Asset impairments                  54.3          5.2  %     3.0         0.3  %
Purchase accounting                10.5          1.0  %     10.3        1.2  %
adjustments
Acquisition-related costs          1.0           0.1  %     9.6         1.1  %
Restructuring and contract        17.6         1.7  %    6.2        0.7  %
termination charges, net
Adjusted operating income      $   225.0        21.4 % $   182.3      20.5 %
                               
                               Environmental Health
                               Twelve Months Ended
                               December 30, 2012        January 1, 2012
                                                        (As adjusted)
Adjusted revenue:
Revenue                        $   1,071.1              $   1,034.1
Purchase accounting               20.2                  27.5       
adjustments
Adjusted revenue               $   1,091.2            $   1,061.6    
                                                                        
Adjusted operating income:
Operating income               $   97.3          9.1  % $   99.3        9.6  %
Amortization of intangible         23.3          2.2  %     26.1        2.5  %
assets
Asset impairments                  19.9          1.9  %     -           0.0  %
Purchase accounting                20.1          1.9  %     25.0        2.4  %
adjustments
Acquisition-related costs          0.2           0.0  %     1.1         0.1  %
Restructuring and contract        7.6          0.7  %    7.3        0.7  %
termination charges, net
Adjusted operating income      $   168.3        15.4 % $   158.9      15.0 %
                                                                        

PerkinElmer, Inc. and Subsidiaries
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
                                                
                                                  
                                                 PKI
                                                  Three Months Ended
                                                  December 30, 2012
Organic revenue growth:
Reported revenue growth                           6%
Less: effect of purchase accounting adjustments   2%
Adjusted revenue growth                           4%
Less: effect of foreign exchange rates            -1%
Less: effect of acquisitions                      2%
Organic revenue growth                            3%
                                                  
                                                  
                                                 Human Health
                                                  Three Months Ended
                                                  December 30, 2012
Organic revenue growth:
Reported revenue growth                           7%
Less: effect of purchase accounting adjustments   1%
Adjusted revenue growth                           6%
Less: effect of foreign exchange rates            -1%
Less: effect of acquisitions                      4%
Organic revenue growth                            3%
                                                  
                                                  
                                                 Environmental Health
                                                  Three Months Ended
                                                  December 30, 2012
Organic revenue growth:
Reported revenue growth                           6%
Less: effect of purchase accounting adjustments   3%
Adjusted revenue growth                           3%
Less: effect of foreign exchange rates            0%
Less: effect of acquisitions                      0%
Organic revenue growth                            3%
                                                  

PerkinElmer, Inc. and Subsidiaries
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
                                                
                                                  
                                                 PKI
                                                  Year Ended
                                                  December 30, 2012
Organic revenue growth:
Reported revenue growth                           10%
Less: effect of purchase accounting adjustments   0%
Adjusted revenue growth                           10%
Less: effect of foreign exchange rates            -2%
Less: effect of acquisitions                      7%
Organic revenue growth                            5%
                                                  
                                                  
                                                 Human Health
                                                  Year Ended
                                                  December 30, 2012
Organic revenue growth:
Reported revenue growth                           18%
Less: effect of purchase accounting adjustments   0%
Adjusted revenue growth                           18%
Less: effect of foreign exchange rates            -2%
Less: effect of acquisitions                      14%
Organic revenue growth                            6%
                                                  
                                                  
                                                 Environmental Health
                                                  Year Ended
                                                  December 30, 2012
Organic revenue growth:
Reported revenue growth                           4%
Less: effect of purchase accounting adjustments   1%
Adjusted revenue growth                           3%
Less: effect of foreign exchange rates            -2%
Less: effect of acquisitions                      1%
Organic revenue growth                            4%
                                                  

Adjusted Revenue and Adjusted Revenue Growth

We use the term “adjusted revenue” to refer to GAAP revenue, including
estimated revenue from contracts acquired in various acquisitions that will
not be fully recognized due to business combination 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 believe that these non-GAAP measures, when taken together with
our GAAP financial measures, allow us and our investors to better measure the
performance of our investments in technology, to evaluate long-term
performance trends and to assess our ability to invest in our business.
Adjusted revenue growth also provides for easier comparisons of our
performance with prior and future periods and relative comparisons to our
peers. Our GAAP revenue for the periods subsequent to our acquisitions does
not reflect the full amount of revenue on such contracts that would have
otherwise been recorded by the acquired businesses. The non-GAAP adjustment is
intended to reflect the full amount of such revenue. We believe our investors
will use this adjustment as a measure of the ongoing performance of the
acquired businesses because customers have historically entered into such
contracts for renewed and/or developmental support, although there can be no
assurance that customers will do so in the future.

Organic Revenue and Organic Revenue Growth

We use the term “organic revenue” to refer to GAAP revenue, excluding the
effect of foreign currency translation and acquisitions, and including
estimated revenue from contracts acquired in various acquisitions that will
not be fully recognized due to business combination accounting rules. 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 believe that these non-GAAP measures, when taken together with our
GAAP financial measures, allow us and our investors to better measure the
performance of our investments in technology, to evaluate long-term
performance trends and to assess our ability to invest in our business.
Organic revenue growth also provides for easier comparisons of our performance
with prior and future periods and relative comparisons to our peers. We
exclude the effect of foreign currency translation from these measures because
foreign currency translation is subject to volatility and can obscure
underlying trends. We exclude the effect of acquisitions because acquisition
activity can vary dramatically between reporting periods and between us and
our peers, which we believe makes comparisons of long-term performance trends
difficult for management and investors, and could result in overstating or
understating to our investors the performance of our operations. We include
estimated revenue from contracts acquired with various acquisitions that will
not be fully recognized due to business combination rules. Our GAAP revenue
for the periods subsequent to our acquisitions does not reflect the full
amount of revenue on such contracts that would have otherwise been recorded by
the acquired businesses. The non-GAAP adjustment is intended to reflect the
full amount of such revenue. We believe our investors will use this adjustment
as a measure of the ongoing performance of the acquired businesses because
customers have historically entered into such contracts for renewed and/or
developmental support, although there can be no assurance that customers will
do so in the future.

Adjusted Gross Margin and Adjusted Gross Margin Percentage

We use the term “adjusted gross margin” to refer to GAAP gross margin,
excluding amortization of intangible assets, inventory fair value adjustments
related to business acquisitions, and including estimated revenue from
contracts acquired in various acquisitions that will not be fully recognized
due to business combination accounting rules. We also exclude adjustments for
mark-to-market accounting and curtailments on post-retirement benefits,
therefore only our projected costs have been used to calculate our non-GAAP
measure. We use the related term “adjusted gross margin percentage” to refer
to adjusted gross margin as a percentage of adjusted revenue. We believe that
these non-GAAP measures, when taken together with our GAAP financial measures,
allow us and our investors to better measure the performance of our
investments in technology, to evaluate the long-term profitability trends and
to assess our ability to invest in our business. We exclude amortization of
intangible assets from these measures because intangibles amortization charges
do not represent what we believe our investors consider to be costs of
producing our products and could distort the additional value generated over
the cost of producing those products. In addition, inventory fair value
adjustments related to business acquisitions and adjustments for
mark-to-market accounting and curtailments on post-retirement benefits do not
represent what we believe our investors consider to be costs used in producing
our products. We include estimated revenue from contracts acquired with
various acquisitions that will not be fully recognized due to business
combination rules. Our GAAP revenue for the periods subsequent to our
acquisitions does not reflect the full amount of revenue on such contracts
that would have otherwise been recorded by the acquired businesses. The
non-GAAP adjustment is intended to reflect the full amount of such revenue. We
believe our investors will use this adjustment as a measure of the ongoing
performance of the acquired businesses because customers have historically
entered into such contracts for renewed and/or developmental support, although
there can be no assurance that customers will do so in the future.

Adjusted Selling, General and Administrative (“SG&A”) Expense and Adjusted
SG&A Percentage

We use the term “adjusted SG&A expense” to refer to GAAP SG&A expense,
excluding amortization of intangible assets, acquisition related integration
costs, changes to the fair values assigned to contingent consideration, and
other costs related to business acquisitions. We also exclude adjustments for
mark-to-market accounting and curtailments on post-retirement benefits,
therefore only our projected costs have been used to calculate our non-GAAP
measure. We use the related term “adjusted SG&A percentage” to refer to
adjusted SG&A expense as a percentage of adjusted revenue. We believe that
these non-GAAP measures, when taken together with our GAAP financial measures,
allow us and our investors to better measure the cost of the internal
operating structure, our ability to leverage that structure and the level of
investment required to grow our business. We exclude amortization of
intangible assets and adjustments for mark-to-market accounting and
curtailments on post-retirement benefits from these measures because
intangibles amortization charges and adjustments for mark-to-market accounting
and curtailments on post-retirement benefits do not represent what we believe
our investors consider to be costs that support our internal operating
structure and could distort the efficiencies of that structure. We exclude
acquisition related integration costs, changes to the fair values assigned to
contingent consideration, and other costs related to business acquisitions,
because they only occur due to an acquisition and the potential subsequent
repositioning of the business that could distort the performance measures of
costs to support our internal operating structure.

Adjusted Research and Development (“R&D”) Expense and Adjusted R&D Percentage

We use the term “adjusted R&D expense” to refer to GAAP R&D expense, excluding
amortization of intangible assets. We also exclude adjustments for
mark-to-market accounting and curtailments on post-retirement benefits,
therefore only our projected costs have been used to calculate our non-GAAP
measure. We use the related term “adjusted R&D percentage” to refer to
adjusted R&D expense as a percentage of adjusted revenue. We believe that
these non-GAAP measures, when taken together with our GAAP financial measures,
allow us and our investors to better understand and evaluate our internal
technology investments. We exclude amortization of intangible assets and
adjustments for mark-to-market accounting and curtailments on post-retirement
benefits from these measures because intangibles amortization charges and
adjustments for mark-to-market accounting and curtailments on post-retirement
benefits do not represent what we believe our investors consider to be
internal investments in R&D activities and could distort our R&D investment
level.

Adjusted Operating Income, Adjusted Operating Profit Percentage, Adjusted
Operating Profit Margin and Adjusted Operating Margin

We use the term “adjusted operating income,” to refer to GAAP operating
income, excluding amortization of intangible assets, inventory fair value
adjustments related to business acquisitions, acquisition related integration
costs, changes to the fair values assigned to contingent consideration, other
costs related to business acquisitions, asset impairments, and restructuring
and contract termination charges, and including estimated revenue from
contracts acquired in various acquisitions that will not be fully recognized
due to business combination accounting rules. We also exclude adjustments for
mark-to-market accounting and curtailments on post-retirement benefits,
therefore only our projected costs have been used to calculate our non-GAAP
measure. Adjusted operating income is calculated by subtracting adjusted R&D
expense and adjusted SG&A expense from adjusted gross margin. We use the
related term “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 believe that these non-GAAP
measures, when taken together with our GAAP financial measures, allow us and
our investors to analyze the costs of the different components of producing
and selling our products, to better measure the performance of our internal
investments in technology and to evaluate the long-term profitability trends
of our core operations. Adjusted operating income also provides for easier
comparisons of our performance and profitability with prior and future periods
and relative comparisons to our peers. We believe our investors do not
consider the items that we exclude from adjusted operating income to be costs
of producing our products, investments in technology and production or costs
to support our internal operating structure, and so we present this non-GAAP
measure to avoid overstating or understating to our investors the performance
of our operations. We exclude restructuring and contract termination charges
and asset impairments because they tend to occur due to an acquisition,
divestiture, repositioning of the business or other unusual event that could
distort the performance measures of our internal investments and costs to
support our internal operating structure. We include estimated revenue from
contracts acquired with various acquisitions that will not be fully recognized
due to business combination rules. Our GAAP revenue for the periods subsequent
to our acquisitions does not reflect the full amount of revenue on such
contracts that would have otherwise been recorded by the acquired businesses.
The non-GAAP adjustment is intended to reflect the full amount of such
revenue. We believe our investors will use this adjustment as a measure of the
ongoing performance of the acquired businesses because customers have
historically entered into such contracts for renewed and/or developmental
support, although there can be no assurance that customers will do so in the
future.

Adjusted Earnings Per Share

We use the term “adjusted earnings per share,” or “adjusted EPS,” to refer to
GAAP earnings per share, excluding discontinued operations, amortization of
intangible assets, inventory fair value adjustments related to business
acquisitions, acquisition related integration costs, changes to the fair
values assigned to contingent consideration, other costs related to business
acquisitions, asset impairments, restructuring and contract termination
charges, acquisition financing costs, and significant tax charges, and
including estimated revenue from contracts acquired in various acquisitions
that will not be fully recognized due to business combination accounting
rules. We also exclude adjustments for mark-to-market accounting and
curtailments on post-retirement benefits, therefore only our projected costs
have been used to calculate our non-GAAP measure. Adjusted earnings per share
is calculated by subtracting the items above included in adjusted gross
margin, adjusted R&D expense, adjusted SG&A expense, asset impairments,
restructuring and contract termination charges, acquisition financing costs,
the provision for taxes related to these items, and significant tax charges
from GAAP earnings per share. We believe that this non-GAAP measure, when
taken together with our GAAP financial measures, allows us and our investors
to analyze the costs of producing and selling our products and the performance
of our internal investments in technology and our internal operating
structure, to evaluate the long-term profitability trends of our core
operations and to calculate the underlying value of the core business on a
dilutive share basis, which is a key measure of the value of the Company used
by our management and we believe used by investors as well. Adjusted earnings
per share also facilitates the overall analysis of the value of the Company
and the core measure of the success of our operating business model as
compared to prior and future periods and relative comparisons to our peers. We
exclude discontinued operations, amortization of intangible assets, inventory
fair value adjustments related to business acquisitions, acquisition related
integration costs, changes to the fair values assigned to contingent
consideration, other costs related to business acquisitions, adjustments for
mark-to-market accounting and curtailments on post-retirement benefits, asset
impairments, restructuring and contract termination charges, acquisition
financing costs, and significant tax charges, as these items do not represent
what we believe our investors consider to be costs of producing our products,
investments in technology and production, and costs to support our internal
operating structure, which could result in overstating or understating to our
investors the performance of our operations. We include estimated revenue from
contracts acquired with various acquisitions that will not be fully recognized
due to business combination rules. Our GAAP revenue for the periods subsequent
to our acquisitions does not reflect the full amount of revenue on such
contracts that would have otherwise been recorded by the acquired businesses.
The non-GAAP adjustment is intended to reflect the full amount of such
revenue. We believe our investors will use this adjustment as a measure of the
ongoing performance of the acquired businesses because customers have
historically entered into such contracts for renewed and/or developmental
support, although there can be no assurance that customers will do so in the
future.

The fourth quarter tax effect on adjusted EPS for (i) discontinued operations
was an expense of $0.00 in 2012 and an expense of $0.00 in 2011, (ii)
amortization of intangible assets was an expense of $0.07 in 2012 and an
expense of $0.08 in 2011, (iii) inventory fair value adjustments related to
business acquisitions was an expense of $0.00 in 2012 and an expense of $0.01
in 2011, (iv) other costs related to business acquisitions was an expense of
$0.00 in 2012 and an expense of $0.01 in 2011, (v) asset impairments was an
expense of $0.23 in 2012 and an expense of $0.01 in 2011, (vi) restructuring
and contract termination charges was an expense of $0.01 in 2012 and an
expense of $0.03 in 2011, (vii) acquisition financing costs was an expense of
$0.00 in 2012 and an expense of $0.01 in 2011, (viii) significant tax charges
was an expense of $0.00 in 2012 and an expense of $0.61 in 2011, (ix) the
estimated revenue from contracts acquired with various acquisitions that will
not be fully recognized due to business combination accounting rules was an
expense of $0.01 in 2012 and an expense of $0.05 in 2011, (x) adjustments for
mark-to-market accounting and curtailments on post-retirement benefits was an
expense of $0.08 in 2012 and an expense of $0.21 in 2011. The fourth quarter
tax effect on adjusted EPS for each of the remaining items (acquisition
related integration costs and changes to the fair values assigned to
contingent consideration) was $0.00 for both 2012 and 2011.

The full year tax effect on adjusted EPS for (i) discontinued operations was
an expense of $0.01 in 2012 and a benefit of $0.04 in 2011, (ii) amortization
of intangible assets was an expense of $0.28 in 2012 and an expense of $0.25
in 2011, (iii) inventory fair value adjustments related to business
acquisitions was an expense of $0.02 in 2012 and an expense of $0.01 in 2011,
(iv) other costs related to business acquisitions was an expense of $0.00 in
2012 and an expense of $0.02 in 2011, (v) asset impairments was an expense of
$0.23 in 2012 and an expense of $0.01 in 2011, (vi) restructuring and contract
termination charges was an expense of $0.06 in 2012 and an expense of $0.04 in
2011, (vii) acquisition financing costs was an expense of $0.00 in 2012 and an
expense of $0.01 in 2011, (viii) significant tax charges was an expense of
$0.00 in 2012 and an expense of $0.60 in 2011, (ix) the estimated revenue from
contracts acquired with various acquisitions that will not be fully recognized
due to business combination accounting rules was an expense of $0.09 in 2012
and an expense of $0.11 in 2011, (x) adjustments for mark-to-market accounting
and curtailments on post-retirement benefits was an expense of $0.08 in 2012
and an expense of $0.21 in 2011. The full year tax effect on adjusted EPS for
each of the remaining items (acquisition related integration costs and changes
to the fair values assigned to contingent consideration) was $0.00 for both
2012 and 2011.

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, acquisition related integration costs, changes to the
fair values assigned to contingent consideration, other costs related to
business acquisitions, adjustments for mark-to-market accounting and
curtailments on post-retirement benefits, asset impairments, restructuring and
contract termination charges, acquisition financing costs, and significant tax
charges, and the estimated 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 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 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 are 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
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