PerkinElmer Inc PKI
Q4 2010 Earnings Call Transcript

Operator: Isaac Ro, Goldman Sachs.

Isaac Ro - Goldman Sachs: This is Justin for Isaac. Looking at the guidance from a single-digit organic revenue growth for 2011 and the comments you made about 25% of your business now coming from emerging markets, and that growing mid-teens, if my math is correct, does it mean that you're implying the other 75% of the market is only growing 2% for the year?

Robert F. Friel - Chairman, President and CEO: I would say the mid-teen growth for the emerging market was a fourth quarter number. I would say, as we look at 2011, we have that moderating a little bit at sort of 12ish, and then the rest of the business is in the 4% range, and that’s how we get to something around, call it, 6%.

Isaac Ro - Goldman Sachs: Then just a quick clarifying question. So, the guidance of $1.56 to $1.64, that includes the redeployment of all the capital from the IDS divestiture?

Frank A. Wilson - SVP, CFO and Chief Accounting Officer: It essentially does. We basically are saying, it will generate $0.07 to $0.11 on top of the base business. So, the answer is, for the most part it is.

Isaac Ro - Goldman Sachs: Switching gears a little bit, looking at genetic screening, what are your assumptions for patient volume testing going into 2011 and have you seen any improvement in trends there?

Robert F. Friel - Chairman, President and CEO: So, as Andy mentioned, we are seeing some improving trends with regard to growth in birth rates. As you'll recall, in 2010, we were probably down 5% at least in the U.S. from birth. So, we are seeing some increasing trends toward the end of last year and actually as we begin 2011. So, I think we feel a little bit better about the growth prospects for the newborn screening business. With regard to the other aspects of that business, I think we continue to see good adoption of maternal testing. So, I think we would sort of put that growth in the high single or low double-digits from a maternal perspective. I think the (indiscernible) business is probably mid single-digits. It's where it's been through most of 2010.

Operator: Quintin Lai, Robert W. Baird.

Matt - Robert W. Baird: This is actually (Matt) in for Quintin. Real quick, one of the things that we have heard throughout the season and would be nice to get an update on given the strength of the food safety side of the business is just kind of how you are thinking about the impact of this new bill in the U.S. potentially driving growth for you here?

Frank A. Wilson - SVP, CFO and Chief Accounting Officer: The Food Safety Modernization Act, I think we are quite excited about the prospects of that driving increased testing. I think, the issue is going to be there's probably going to be one to a year and a half lag before you see significant, I would say, purchases relative to that. I think the good news about it is, it's raised the awareness, and so it's increased, sort of shined a brighter spotlight on the issue. But I think with regard to actual increased shipment of products, in our case it's probably a little bit delayed. But it's having an impact globally as well. You may know that China government recently issued some recent food regulations around infant milk, and that's driving growth as well. We actually won some fairly big tender there to provide some analytical instruments around that. So, I think, in the short term, it's raising the visibility, and I think, like I said, probably in 2012, it will start to have an impact on actually people purchasing our products to do more testing.