PerkinElmer Inc PKI
Q3 2010 Earnings Call Transcript

Operator: Ross Muken, Deutsche Bank.

Ross Muken - Deutsche Bank: For the most part, performance across the board was quite good. If you look into the research piece of the business, it's kind of been a bit all over the map the last several quarters. So when we think about growth in that business going forward or your sort of focus there in terms of kind of turning the quarter, I mean what kind of strategic efforts are we seeing internally now to kind of revitalize that business, because I know we've had some good product momentum there over the last few years. What's kind of the next step?

Robert F. Friel - Chairman, President and CEO: I would Ross the focus is really probably threefold, one is to continue to broaden out any academic area to offset some of the pressures that's on the pharmaceutical, I think we've made pretty good progress there where now it's a pretty much a 50-50 split between pharmaceutical and academic, so we'll continue to expand in that area. Clearly from a geographic perspective, continuing to build out capabilities in China and India because I think there is going to higher growth there. Then the third area strategically, as you know a lot of our products historically have been around high-throughput screening and we need to move those into sort of downstream into the preclinical area, because there is not lot of investment going into drug discovery around high-throughput screening. So you've seen that in the way of cellular imaging with the Opera and Operetta and some of the moves with our reagents going into cellular analysis and of course now with VisEn. So again, what you'll see is a move into the preclinical area, into academics and into the developing areas.

Ross Muken - Deutsche Bank: In terms of some of the more cyclical businesses that remain in the environmental and some of the industrialized and safe security, what end market group sort of stood out in terms of whether it was order flow or revenue snapback?

Robert F. Friel - Chairman, President and CEO: Well, I would say first of all service continues to do very well on the environmental side. We continue to see good growth there. And then I would when you look at the more of the instrument side, we continue to see strong demand in the environmental area. So whether it's in water analysis or water quality applications, whether it's in food safety, you're just continuing to see public pressure and expansion on testing requirements, whether it's additives or packaging materials. So I think those are continuing to drive good demand for the analytics in those areas.

Operator: (Danen), Macquarie Research.

Danen - Macquarie Research: This is actually Danen for Jon. I had a question. You mentioned the strong growth in China, India and Brazil, what percentage of revenues is that now?

Robert F. Friel - Chairman, President and CEO: I would say for the quarter those three are about $50 million of revenue for us.

Danen - Macquarie Research: Just quickly, what's kind of your current thinking on cash use now, should we continue to see like things in the same pane as VisEn or?

Robert F. Friel - Chairman, President and CEO: I think particularly with the IDS proceeds coming in relatively soon, we're clearly looking to ramp up the acquisition targets to maybe a little larger in size. From a strategic perspective, VisEn, I think you'll continue to see things like that, but I would say from a size perspective, we'd like to do some things a little bigger than VisEn and of course the other use of the cash as we've talked about is we're looking at stock buybacks as well. So it will be a combination of bolt-on acquisitions, hopefully a little larger than VisEn and then stock buyback.