WALTHAM, Mass.--(BUSINESS WIRE)--Revvity, Inc. (NYSE: RVTY), today announced that Sophie Vandebroek and Michael Klobuchar have been elected to its board of directors, effective February 1, 2024. “I am pleased to welcome Michael Klobuchar and Sophie Vandebroek to Revvity’s board and look forward to their contributions as we execute on our strategic vision,” said Alexis Michas, non-executive chairman of the board. “Sophie brings deep acumen in AI, business processes, sustainability, and cybersecurity, alon ...

Revvity, Inc. (NYSE:RVTY) 42nd Annual J.P. Morgan Healthcare Conference Summary Company Overview - Revvity is a newly formed company, established eight months prior to the conference, resulting from the divestiture of one-third of its legacy analytical instrumentation and enterprise services business, along with the PerkinElmer brand name [3][4] - The company has an annual revenue of nearly $3 billion, focusing on high-growth markets in Life Sciences and Diagnostics, with 80% of revenue being recurring [4][5] Core Business Segments Life Sciences - Revvity's focus is on preclinical research and development, providing technology and tools to accelerate drug discovery rather than selling commodity products [4][5] - The Life Sciences segment is characterized by high-value differentiated instrumentation, which supports consumables sales [4][5] Diagnostics - The Diagnostics business generates approximately $1.4 billion in annual revenue, focusing on complex diagnostic diseases such as newborn screening and autoimmune disorders [5][6] - The company aims to bridge the gap between research and diagnostics, enhancing personalized medicine [5][6] Financial Performance and Strategy - Revvity's financial performance is driven by three pillars: customer partnerships, innovative product offerings, and strategic positioning [7][10] - The company has undergone significant portfolio transformation, acquiring over a dozen companies in the past 24 months to enhance its offerings [10][13] - The immunodiagnostic reagent and life sciences reagents segments are expected to grow double digits, providing margin expansion opportunities [11][12] Market Dynamics - The company experienced mid-single-digit growth in China despite a challenging market environment, with 17% of revenue coming from the region [12][26] - Revvity's differentiated portfolio allows it to perform better than peers in the Chinese market, even amidst pricing pressures [12][26] Future Outlook - The company anticipates a return to normal growth rates of 4% to 6% in the market, with expectations of exceeding this growth due to its differentiated portfolio [15][16] - Revvity aims for double-digit EPS growth and 75 basis points of operating margin expansion in the long term [15][23] Key Challenges and Considerations - The company noted a decline in the life sciences instrumentation segment and challenges in the software licensing business, which is expected to recover in 2024 [30][38] - The impact of budget flush dynamics in the pharma and biotech sectors has affected spending, with expectations of a gradual recovery [28][30] Capital Allocation and M&A Strategy - Revvity plans to continue pursuing acquisition opportunities that enhance its product offerings and fill gaps in its portfolio [48][49] - The integration of acquired technologies is seen as a significant opportunity for future growth [49] Conclusion - Revvity is positioned as a differentiated player in the life sciences and diagnostics markets, with a strong focus on innovation and customer partnerships, aiming for sustainable growth and improved financial performance in the coming years [16][51]

Revvity, Inc. (NYSE:RVTY) 42nd Annual J.P. Morgan Healthcare Conference January 9, 2024 1:30 PM ET Company Participants Prahlad Singh - President and Chief Executive Officer Conference Call Participants Rachel Vatnsdal - JPMorgan Chase & Co. Rachel Vatnsdal Hi, good afternoon, everyone. This is Rachel Vatnsdal from the Life Science Tools and Diagnostics team here at JP Morgan. I am joined on stage by Revvity and Prahlad, the CEO. And so as is typical, this is going to be a 40 minute session, it will be roug ...

[Part I. Financial Information](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Unaudited Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Financial%20Statements) This section presents Revvity, Inc.'s unaudited condensed consolidated financial statements, including operations, balance sheets, and cash flows [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The statements show a significant decline in Q3 2023 revenue and net income, primarily due to a loss from discontinued operations Condensed Consolidated Statements of Operations (Unaudited) | | Three Months Ended | | Nine Months Ended | | | :--- | :--- | :--- | :--- | :--- | | (In thousands, except per share data) | Oct 1, 2023 | Oct 2, 2022 | Oct 1, 2023 | Oct 2, 2022 | | **Total revenue** | **$670,739** | **$711,803** | **$2,054,670** | **$2,570,608** | | Operating income from continuing operations | $69,228 | $110,780 | $223,403 | $605,230 | | Income from continuing operations | $32,469 | $69,508 | $115,936 | $415,179 | | (Loss) income from discontinued operations | ($22,972) | $15,839 | $498,595 | $26,342 | | **Net income** | **$9,497** | **$85,347** | **$614,531** | **$441,521** | | **Diluted EPS from continuing operations** | **$0.26** | **$0.55** | **$0.93** | **$3.28** | | **Diluted Net EPS** | **$0.08** | **$0.67** | **$4.90** | **$3.49** | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheets reflect a decrease in total assets and liabilities, with a significant increase in cash due to proceeds from discontinued operations Condensed Consolidated Balance Sheet Highlights (Unaudited) | (In thousands) | Oct 1, 2023 | Jan 1, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | **$1,136,721** | **$454,358** | | Total current assets | $2,913,237 | $3,288,558 | | Goodwill | $6,470,139 | $6,481,768 | | **Total assets** | **$13,421,548** | **$14,129,855** | | Current portion of long-term debt | $727,539 | $470,929 | | Long-term debt | $3,152,454 | $3,923,347 | | **Total liabilities** | **$5,727,267** | **$6,746,979** | | **Total stockholders' equity** | **$7,694,281** | **$7,382,876** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flow statements show a shift to net cash used in operations, significant cash from divestitures, and substantial debt and stock repurchases Cash Flow Summary (Unaudited) | | Nine Months Ended | | | :--- | :--- | :--- | | (In thousands) | Oct 1, 2023 | Oct 2, 2022 | | Net cash (used in) provided by operating activities | ($105,341) | $540,652 | | Net cash provided by (used in) investing activities | $1,728,330 | ($107,167) | | Net cash used in financing activities | ($927,507) | ($585,106) | | **Net increase (decrease) in cash** | **$667,212** | **($203,025)** | - Investing activities were primarily driven by **$2.07 billion** in net cash provided by discontinued operations, which includes proceeds from the sale of the Business[24](index=24&type=chunk) - Financing activities included payments of senior unsecured notes of **$518.0 million** and purchases of common stock totaling **$384.0 million**[25](index=25&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on the basis of presentation, revenue, discontinued operations, debt, segment performance, and share repurchase programs - In March 2023, the company completed the sale of its Applied, Food and Enterprise Services businesses (the "Business"), which are now reported as discontinued operations[29](index=29&type=chunk) - The sale of the Business was for an aggregate price of up to **$2.45 billion**, including **~$2.14 billion** in cash proceeds at closing, **$75 million** for the PerkinElmer brand transfer, and up to **$150 million** in contingent consideration[37](index=37&type=chunk) - The company paid in full **$467.1 million** of 0.550% Senior Unsecured Notes due in September 2023 and repurchased **$54.1 million** of its 2024 Notes during the first nine months of 2023[47](index=47&type=chunk) - A new stock repurchase program of up to **$600.0 million** was authorized in April 2023, replacing a previous program; as of October 1, 2023, **$355.4 million** remained available[55](index=55&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 and nine-month financial results, highlighting revenue declines, margin impacts, segment performance, and liquidity management post-divestiture [Overview](index=24&type=section&id=Overview) Revvity's Q3 2023 revenue declined 6% year-over-year, primarily due to reduced COVID-19 product demand in the Diagnostics segment - Q3 2023 revenue was **$670.7 million**, a **6% decrease** YoY[89](index=89&type=chunk) - The Diagnostics segment revenue decreased **9% ($36.1 million)** due to lower demand for COVID-19 products, while Life Sciences segment revenue decreased **2% ($4.9 million)**[89](index=89&type=chunk) - Consolidated gross margins decreased by **165 basis points** in Q3 2023, primarily due to lower COVID-19 revenue[90](index=90&type=chunk) [Consolidated Results of Continuing Operations](index=25&type=section&id=Consolidated%20Results%20of%20Continuing%20Operations) Consolidated results show Q3 revenue declined 6% and nine-month revenue fell 20%, with gross margins decreasing and the effective tax rate significantly increasing Q3 Revenue Change by Segment | Segment | Q3 2023 Revenue (in millions) | Q3 2022 Revenue (in millions) | Change (in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Diagnostics | $363.1M | $399.2M | ($36.1M) | -9% | | Life Sciences | $307.9M | $312.8M | ($4.9M) | -2% | | **Total** | **$670.7M** | **$711.8M** | **($41.1M)** | **-6%** | Nine-Month Revenue Change by Segment | Segment | 9M 2023 Revenue (in millions) | 9M 2022 Revenue (in millions) | Change (in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Diagnostics | $1,082.6M | $1,625.7M | ($543.1M) | -33% | | Life Sciences | $972.6M | $945.5M | $27.2M | +3% | | **Total** | **$2,054.7M** | **$2,570.6M** | **($515.9M)** | **-20%** | - The effective tax rate from continuing operations was **35.8%** for Q3 2023, compared to **15.4%** for Q3 2022, due to projected lower income in certain lower tax rate jurisdictions and an increase in tax reserves of **$29.8 million**[109](index=109&type=chunk) [Reporting Segment Results of Continuing Operations](index=28&type=section&id=Reporting%20Segment%20Results%20of%20Continuing%20Operations) Segment results show Life Sciences revenue decline in Q3 but growth over nine months, while Diagnostics faced significant declines due to reduced COVID-19 demand Segment Operating Income (in thousands) | Segment | Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | | :--- | :--- | :--- | :--- | :--- | | Life Sciences | $114,192 | $116,881 | $371,410 | $357,661 | | Diagnostics | $81,741 | $123,428 | $241,414 | $668,981 | - Life Sciences Q3 operating margin decreased **28 basis points** due to investments in new product development and growth initiatives[113](index=113&type=chunk) - Diagnostics Q3 operating margin decreased **840 basis points** primarily due to lower COVID-19 product sales volume[117](index=117&type=chunk) [Discontinued Operations](index=29&type=section&id=Discontinued%20Operations) The company completed the sale of its Applied, Food and Enterprise Services businesses, resulting in a Q3 loss from discontinued operations but a nine-month gain including the sale proceeds - The sale of the Business to an affiliate of New Mountain Capital L.L.C. was completed on March 13, 2023, for up to **$2.45 billion**[119](index=119&type=chunk) Results of Discontinued Operations (in thousands) | | Three Months Ended | | Nine Months Ended | | | :--- | :--- | :--- | :--- | :--- | | | Oct 1, 2023 | Oct 2, 2022 | Oct 1, 2023 | Oct 2, 2022 | | (Loss) gain on sale | ($58) | — | $835,629 | — | | **(Loss) income from discontinued operations** | **($22,972)** | **$15,839** | **$498,595** | **$26,342** | [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is strong with significant cash and credit availability, utilizing divestiture proceeds for debt repayment, share repurchases, and strategic acquisitions - Cash and cash equivalents stood at **$1.1 billion** as of October 1, 2023, with **$1.5 billion** of borrowing capacity available under the senior unsecured revolving credit facility[126](index=126&type=chunk) - Proceeds from the sale of the Business are expected to be used for satisfying debt maturities, opportunistic share repurchases, and strategic acquisitions[123](index=123&type=chunk) - The company repurchased a total of **$375.9 million** in common stock during the first nine months of 2023 under its existing and new repurchase programs[129](index=129&type=chunk) - The Board declared a quarterly cash dividend of **$0.07 per share** for Q3 and Q4 of 2023[139](index=139&type=chunk)[199](index=199&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from interest rate and foreign currency fluctuations, which it manages using derivative instruments - The company is exposed to market risk from changes in interest rates and currency exchange rates[142](index=142&type=chunk) - Substantially all of the debt portfolio is fixed interest, but cash and cash equivalents of **$1.1 billion** earn variable interest rates, creating exposure to interest rate fluctuations[144](index=144&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of October 1, 2023, with no material changes in internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that as of October 1, 2023, the company's disclosure controls and procedures were **effective** at the reasonable assurance level[147](index=147&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[148](index=148&type=chunk) [Part II. Other Information](index=35&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal proceedings, but management does not expect them to have a material adverse effect on financial statements - The company is subject to various legal proceedings and investigations arising in the ordinary course of business[151](index=151&type=chunk) - Management believes the total cost of resolving these contingencies will not have a **material adverse effect** on the company's condensed consolidated financial statements[151](index=151&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) This section outlines significant business risks, including economic conditions, product demand, M&A execution, competition, supply chain, IT security, and financial leverage - **Business & Industry Risks:** Declines in customer markets, unfavorable government regulations, and the negative effect of the COVID-19 pandemic on demand for certain products pose significant risks[152](index=152&type=chunk)[153](index=153&type=chunk) - **Strategic Risks:** Failure to introduce new products in a timely manner, inability to successfully execute acquisitions or divestitures, and intense competition could harm business results[160](index=160&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk) - **Operational Risks:** Disruptions in the supply of raw materials from single-source suppliers, disruptions in third-party delivery services, and breaches of IT security systems could adversely affect operations[169](index=169&type=chunk)[170](index=170&type=chunk)[174](index=174&type=chunk) - **Financial Risks:** A substantial amount of outstanding debt could impact future financing and flexibility; the stock price is subject to volatility, and future dividends could be reduced or eliminated[188](index=188&type=chunk)[194](index=194&type=chunk)[199](index=199&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2023, the company repurchased over 1 million shares of common stock for approximately $112.4 million under a new repurchase program Issuer Repurchases of Equity Securities (Q3 2023) | Period | Total Shares Purchased | Average Price Paid Per Share (USD) | Shares Purchased as Part of Program | Approx. Dollar Value Remaining in Program (USD) | | :--- | :--- | :--- | :--- | :--- | | Jul 3 - Jul 30, 2023 | 211,455 | $117.14 | 210,736 | $442,849,012 | | Jul 31 - Aug 27, 2023 | 727 | $118.03 | — | $442,849,012 | | Aug 28 - Oct 1, 2023 | 801,256 | $109.26 | 800,000 | $355,447,935 | | **Total for Quarter** | **1,013,438** | **$110.91** | **1,010,736** | **$355,447,935** | - On April 27, 2023, a new stock repurchase program for up to **$600.0 million** was authorized, terminating a prior program; as of October 1, 2023, **$355.4 million** remained available under the new program[202](index=202&type=chunk) [Item 5. Other Information](index=44&type=section&id=Item%205.%20Other%20Information) During Q3 2023, three executive officers adopted Rule 10b5-1 trading arrangements for future stock sales, with no terminations of such plans - Three Section 16 officers, including the CEO, adopted Rule 10b5-1 trading arrangements during the third quarter of 2023[203](index=203&type=chunk) Rule 10b5-1 Trading Arrangements Adopted | Name | Position | Adoption Date | Duration of Arrangement | Aggregate Securities to be Sold (shares) | | :--- | :--- | :--- | :--- | :--- | | Joel S. Goldberg | SVP, General Counsel | Aug 3, 2023 | Dec 1, 2023 - Feb 6, 2024 | Up to 22,613 | | Prahlad Singh | President and CEO | Aug 4, 2023 | Dec 4, 2023 - Feb 6, 2024 | Up to 31,002 | | Tajinder S. Vohra | SVP, Global Operations | Aug 4, 2023 | Dec 4, 2023 - Feb 28, 2024 | Up to 7,918 | [Item 6. Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL data files - Exhibits include certifications from the CEO and CFO under Sarbanes-Oxley Sections 302 and 906[205](index=205&type=chunk) - The filing includes Inline XBRL documents for financial statements and notes[205](index=205&type=chunk)

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's unaudited financial statements, management's analysis of financial condition, market risk disclosures, and internal controls [Unaudited Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Financial%20Statements) Presents Revvity, Inc.'s unaudited condensed consolidated financial statements, including operations, balance sheets, and cash flows, reflecting the impact of discontinued operations [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenues declined to **$709.1 million**, with operating income from continuing operations falling to **$78.1 million**, and net income significantly dropping to **$35.6 million** Condensed Consolidated Statements of Operations (Three Months Ended, in thousands, except per share data) | | Three Months Ended July 2, 2023 | Three Months Ended July 3, 2022 | | :--- | :--- | :--- | | **Total revenue** | $709,066 | $895,642 | | **Operating income from continuing operations** | $78,056 | $232,494 | | **Income from continuing operations** | $58,622 | $161,601 | | **(Loss) income from discontinued operations** | $(23,063) | $17,611 | | **Net income** | $35,559 | $179,212 | | **Diluted earnings per share (Net income)** | $0.28 | $1.42 | Condensed Consolidated Statements of Operations (Six Months Ended, in thousands, except per share data) | | Six Months Ended July 2, 2023 | Six Months Ended July 3, 2022 | | :--- | :--- | :--- | | **Total revenue** | $1,383,931 | $1,858,805 | | **Operating income from continuing operations** | $154,175 | $494,450 | | **Income from continuing operations** | $83,467 | $345,671 | | **(Loss) income from discontinued operations** | $521,567 | $10,503 | | **Net income** | $605,034 | $356,174 | | **Diluted earnings per share (Net income)** | $4.80 | $2.81 | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for Q2 2023 was **$35.0 million**, a turnaround from a **$33.2 million** loss in Q2 2022, driven by reduced negative currency adjustments Comprehensive Income (Loss) Summary (in thousands) | | Three Months Ended July 2, 2023 | Three Months Ended July 3, 2022 | | :--- | :--- | :--- | | **Net income** | $35,559 | $179,212 | | **Other comprehensive (loss) income** | $(591) | $(212,366) | | **Comprehensive income (loss)** | $34,968 | $(33,154) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$14.22 billion**, with cash and equivalents rising to **$1.33 billion**, while total liabilities decreased to **$6.35 billion** Key Balance Sheet Items (in thousands) | | July 2, 2023 | January 1, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $1,331,903 | $454,358 | | **Total current assets** | $3,523,341 | $3,288,558 | | **Goodwill** | $6,518,419 | $6,481,768 | | **Total assets** | $14,218,549 | $14,129,855 | | **Total current liabilities** | $1,366,830 | $1,544,483 | | **Long-term debt** | $3,883,738 | $3,923,347 | | **Total liabilities** | $6,348,591 | $6,746,979 | | **Total stockholders' equity** | $7,869,958 | $7,382,876 | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Stockholders' equity increased to **$7.87 billion**, driven by net income and comprehensive income, partially offset by stock repurchases and dividends - Key activities impacting stockholders' equity in the first six months of 2023 include net income of **$569.5 million**, common stock purchases of **$275.7 million** (**$67.5 million** in Q1, **$208.1 million** in Q2), and dividend payments of **$17.5 million** (**$8.8 million** in Q1, **$8.7 million** in Q2)[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash outflow from operations was **$71.9 million**, while investing activities provided **$1.29 billion**, leading to an overall **$862.6 million** increase in cash and equivalents Net Cash Flow Summary (Six Months Ended, in thousands) | | July 2, 2023 | July 3, 2022 | | :--- | :--- | :--- | | **Net cash (used in) provided by operating activities** | $(71,856) | $380,700 | | **Net cash provided by (used in) investing activities** | $1,293,461 | $(84,661) | | **Net cash used in financing activities** | $(341,458) | $(519,466) | | **Net increase (decrease) in cash** | $862,576 | $(257,404) | - Investing activities were dominated by **$2.07 billion** in net cash provided by discontinued operations, offset by **$831.2 million** in purchases of marketable securities[23](index=23&type=chunk) - Financing activities included **$273.3 million** for purchases of common stock and **$50.8 million** in payments of senior unsecured notes[24](index=24&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed accounting policies and financial disclosures, including revenue disaggregation, impact of discontinued operations, debt structure, and share repurchase programs - In March 2023, the company completed the sale of its Applied, Food and Enterprise Services businesses, which are now reported as discontinued operations for all periods presented[28](index=28&type=chunk) Revenue by Segment (Three Months Ended July 2, 2023, in thousands) | Segment | Revenue | | :--- | :--- | | Life Sciences | $336,353 | | Diagnostics | $372,713 | | **Total** | **$709,066** | - The sale of the business was for an aggregate price of up to **$2.45 billion**, with initial cash proceeds of approximately **$2.14 billion**; the company recognized a pre-tax loss on disposal of **$31.2 million** in Q2 2023[36](index=36&type=chunk)[37](index=37&type=chunk) - The company repurchased **$131.3 million** of common stock under its Repurchase Program and **$132.5 million** under a new **$600 million** New Repurchase Program during the first six months of 2023[54](index=54&type=chunk)[55](index=55&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2023 financial results, noting a **20.8%** revenue decrease driven by Diagnostics, segment performance, and liquidity post-divestiture [Overview](index=24&type=section&id=Overview) Revvity, Inc. reported a **20.8%** Q2 2023 revenue decrease to **$709.1 million**, driven by a **34%** decline in Diagnostics, partially offset by Life Sciences growth - Effective April 26, 2023, the company changed its name from PerkinElmer, Inc. to Revvity, Inc. and its stock ticker to **RVTY**[89](index=89&type=chunk) - Q2 2023 revenue decreased **20.8%** YoY to **$709.1 million**, driven by a **34%** decline in Diagnostics revenue, which was partially offset by a **3%** increase in Life Sciences revenue[90](index=90&type=chunk) - The decrease in Diagnostics revenue was primarily due to a drop in demand for COVID-19 products, while Life Sciences growth was led by the academia and government markets[90](index=90&type=chunk) [Consolidated Results of Continuing Operations](index=25&type=section&id=Consolidated%20Results%20of%20Continuing%20Operations) Q2 2023 revenue declined **20.8%** to **$709.1 million**, gross margin contracted to **56.7%**, and interest expense decreased due to higher interest income Revenue by Segment (Q2 2023 vs Q2 2022, in millions) | Segment | Q2 2023 Revenue | Q2 2022 Revenue | Change (%) | | :--- | :--- | :--- | :--- | | Diagnostics | $372.9M | $569.2M | -34% | | Life Sciences | $336.4M | $326.6M | +3% | | **Total** | **$709.1M** | **$895.6M** | **-20.8%** | - Gross margin for Q2 2023 decreased to **56.7%** from **61.6%** in Q2 2022, primarily due to lower COVID-19 revenue, partially offset by pricing actions[99](index=99&type=chunk) - Interest and other expense, net, for Q2 2023 decreased to **$6.5 million** from **$26.2 million** YoY, mainly due to a **$24.3 million** increase in interest income from investing cash proceeds from the business sale[107](index=107&type=chunk) - The effective tax rate from continuing operations for Q2 2023 was **18.1%**, down from **21.7%** in the prior year period, due to projected lower income in higher tax jurisdictions[110](index=110&type=chunk) [Reporting Segment Results of Continuing Operations](index=28&type=section&id=Reporting%20Segment%20Results%20of%20Continuing%20Operations) Life Sciences revenue grew **3%** to **$336.4 million**, while Diagnostics revenue declined **34%** to **$372.9 million**, significantly impacting operating margins Segment Performance (Q2 2023 vs Q2 2022) | Segment | Revenue Change | Operating Income Change | Operating Margin Change | | :--- | :--- | :--- | :--- | | Life Sciences | +3% | -2% | -200 bps | | Diagnostics | -34% | -65% | -2,012 bps | - Life Sciences revenue growth was driven by a **$15.6 million** increase in academia and government markets, partially offset by a **$5.9 million** decrease in pharmaceutical and biotechnology markets[112](index=112&type=chunk) - Diagnostics revenue decline was driven by decreased demand for COVID-19 products, with immunodiagnostics revenue down **$154.7 million** and applied genomics revenue down **$38.0 million**[116](index=116&type=chunk) [Discontinued Operations](index=28&type=section&id=Discontinued%20Operations) The company completed the sale of its Applied, Food and Enterprise Services businesses for up to **$2.45 billion**, recognizing a **$31.2 million** pre-tax loss in Q2 2023 - The company completed the sale of the Business on March 13, 2023, for up to **$2.45 billion**, receiving **~$2.14 billion** in initial cash proceeds[120](index=120&type=chunk) Discontinued Operations Financial Summary (in thousands) | | Three Months Ended July 2, 2023 | Six Months Ended July 2, 2023 | | :--- | :--- | :--- | | **(Loss) gain on sale** | $(31,232) | $835,687 | | **(Loss) income from discontinued operations** | $(23,063) | $521,567 | [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by cash from operations and a credit facility, with **$2.14 billion** from a business sale allocated for debt, repurchases, and acquisitions - The company plans to use the **~$2.14 billion** in cash proceeds from the business sale for debt maturities, opportunistic share repurchases, and strategic acquisitions[125](index=125&type=chunk) - As of July 2, 2023, the company had **$1.3 billion** in cash and cash equivalents and **$1.5 billion** of borrowing capacity under its senior unsecured revolving credit facility[127](index=127&type=chunk) - In the first half of 2023, the company repurchased a total of **$263.8 million** in common stock under two separate repurchase programs and has **$467.5 million** remaining under the new program[130](index=130&type=chunk) Cash Flow Summary - Continuing Operations (Six Months Ended, in millions) | Cash Flow Activity | Six Months Ended July 2, 2023 | Six Months Ended July 3, 2022 | | :--- | :--- | :--- | | **Operating Activities** | $28.0M | $423.4M | | **Investing Activities** | $(771.8)M | $(73.3)M | | **Financing Activities** | $(341.5)M | $(519.5)M | [Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency and interest rate fluctuations, using derivatives to hedge, with its overall risk profile unchanged - The company's primary market risks are changes in interest rates and foreign currency exchange rates[143](index=143&type=chunk) - As of July 2, 2023, the company held **$1.3 billion** in cash and cash equivalents at variable interest rates, making its earnings and cash flows susceptible to interest rate fluctuations[145](index=145&type=chunk) [Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of July 2, 2023, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of July 2, 2023, the company's disclosure controls and procedures were effective at the reasonable assurance level[147](index=147&type=chunk) - No changes occurred during the fiscal quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[148](index=148&type=chunk) [PART II. OTHER INFORMATION](index=35&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, various risk factors, details on equity security sales and use of proceeds, and other miscellaneous information [Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, but management does not expect a material adverse effect on financial statements - The company is subject to various legal proceedings but does not expect the resolution of these matters to have a material adverse effect on its financial statements[151](index=151&type=chunk) [Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) Outlines significant risks to the company's business, including market conditions, supply chain, intellectual property, regulatory compliance, foreign operations, and substantial debt [Risks Related to Business Operations and Industry](index=35&type=section&id=Risks%20Related%20to%20our%20Business%20Operations%20and%20Industry) Business operations face risks from market dependency, government funding, COVID-19 impact, supply chain disruptions, and the ability to retain key personnel - Business is highly dependent on customer markets (pharma, biotech, academic) and government funding, which are subject to economic and political uncertainties[152](index=152&type=chunk) - Demand for COVID-19 related products declined in 2022 and H1 2023 and is expected to continue declining[155](index=155&type=chunk)[156](index=156&type=chunk) - The company faces risks from supply chain disruptions, as certain critical raw materials and components are sourced from limited or single suppliers[170](index=170&type=chunk) - Failure to successfully execute acquisitions, integrate new businesses, or realize the full value of intangible assets (**$9.7 billion** as of July 2, 2023) could adversely affect results[163](index=163&type=chunk)[175](index=175&type=chunk) [Risks Related to Intellectual Property](index=39&type=section&id=Risks%20Related%20to%20our%20Intellectual%20Property) Risks include failure to protect patents, costly IP litigation, and potential loss of competitive advantage from inability to renew licensed technologies - The company may not be successful in protecting its patents and trade secrets, which are critical for maintaining a competitive advantage[177](index=177&type=chunk) - The company may face expensive litigation if third parties challenge its patents or claim that its products infringe on their IP[178](index=178&type=chunk) - Loss of licensed rights could force the company to stop selling certain products or lose a competitive advantage[179](index=179&type=chunk) [Risks Related to Legal, Government and Regulatory Matters](index=40&type=section&id=Risks%20Related%20to%20Legal%2C%20Government%20and%20Regulatory%20Matters) The company faces risks from product liability claims, non-compliance with FDA and global regulations, and changes in healthcare industry laws - The company faces inherent risks of product liability claims, which could result in substantial liability exceeding insurance coverage[181](index=181&type=chunk) - Failure to comply with regulations from the FDA and other global agencies could lead to product recalls, fines, and criminal prosecution[182](index=182&type=chunk) - The healthcare industry is highly regulated; non-compliance with laws regarding fraud, abuse, and patient privacy could result in significant fines and penalties[185](index=185&type=chunk) [Risks Related to Foreign Operations](index=42&type=section&id=Risks%20Related%20to%20our%20Foreign%20Operations) Foreign operations expose the company to risks from currency fluctuations, political instability, trade protection measures, and differing international laws - The majority of the company's revenue came from outside the U.S. in fiscal 2022, exposing it to risks such as currency fluctuations, political instability, and trade protection measures[187](index=187&type=chunk) - Specific risks include sanctions related to the conflict in Ukraine, import/export licensing requirements, and differing laws regarding taxes, labor, and intellectual property[188](index=188&type=chunk) [Risks Related to Debt](index=42&type=section&id=Risks%20Related%20to%20our%20Debt) Substantial debt levels could limit financial flexibility, expose the company to interest rate risk, and trigger default if restrictive covenants are breached - Substantial debt levels could require significant cash flow for debt service, reducing funds for acquisitions and stock repurchases, and limiting operational flexibility[189](index=189&type=chunk) - Debt instruments contain restrictive covenants limiting the ability to pay dividends, sell assets, and incur certain other obligations[191](index=191&type=chunk)[196](index=196&type=chunk) - Failure to comply with financial covenants could lead to an event of default and require early prepayment of debt[193](index=193&type=chunk) [Risks Related to Ownership of our Common Stock](index=43&type=section&id=Risks%20Related%20to%20Ownership%20of%20our%20Common%20Stock) Common stock ownership risks include significant price volatility influenced by financial performance and market sentiment, and the potential reduction or elimination of future dividends - The company's common stock price is subject to significant volatility due to factors like financial performance, market sentiment, and competitor actions[194](index=194&type=chunk)[197](index=197&type=chunk) - The Board of Directors may reduce or eliminate the common stock dividend in the future to fund growth, repurchase shares, or conserve capital[199](index=199&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details stock repurchase activities for Q2 2023, including the repurchase of **1,707,305** shares for **$205.9 million** under a new **$600 million** program Issuer Repurchases of Equity Securities (Quarter Ended July 2, 2023) | Period | Total Number of Shares Purchased | Average Price Paid Per Share ($) | Maximum Dollar Value that May Yet Be Purchased Under the Programs ($) | | :--- | :--- | :--- | :--- | | April 3, 2023—April 30, 2023 | 557,282 | $132.34 | $149,591,197 | | May 1, 2023—May 28, 2023 | 338,031 | $116.10 | $574,752,955 | | May 29, 2023—July 2, 2023 | 811,992 | $114.91 | $467,534,970 | | **Total for Quarter** | **1,707,305** | **$120.83** | **$467,534,970** | - On April 27, 2023, the Board terminated the existing repurchase program and authorized a new **$600.0 million** stock repurchase program, which expires on April 26, 2025[202](index=202&type=chunk) [Other Information](index=45&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the second quarter of 2023 - No directors or officers adopted or terminated Rule 10b5-1 trading plans during the second quarter of 2023[203](index=203&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Form 10-Q, including corporate governance documents, credit agreement amendments, and CEO/CFO certifications - Key exhibits filed include corporate governance documents, an amendment to the credit agreement, and required CEO/CFO certifications[203](index=203&type=chunk)

Revenue Performance - Total revenue for Q1 2023 was $674.9 million, a decrease of $288.3 million, or 29.9%, compared to Q1 2022[86] - Diagnostics segment revenue fell to $346.6 million, down $310.6 million, or 47%, primarily due to decreased demand for COVID-19 products[93] - Life Sciences segment revenue increased to $328.4 million, up $22.4 million, or 7%, driven by growth in pharmaceutical and biotechnology markets[101] Margins and Expenses - Consolidated gross margins decreased by 524 basis points to 56.5% in Q1 2023, primarily due to lower COVID-19 revenue[87] - Operating margins dropped from 27% to 11% in Q1 2023, with expectations of approximately 30% for the full fiscal year[87] - Selling, general and administrative expenses decreased by $26.7 million, or 10%, to $248.6 million in Q1 2023[95] - Research and development expenses were $56.7 million, a slight decrease of $0.8 million, or 1%, compared to Q1 2022[97] Income and Taxation - The effective tax rate from continuing operations was 15.6% for Q1 2023, down from 18.2% in Q1 2022[100] - Segment operating income for Life Sciences increased by $19.3 million, or 17%, to $129.5 million in Q1 2023[102] - Segment operating income for the three months ended April 2, 2023, was $74.4 million, a decrease of 75% from $300.9 million for the same period in 2022[104] Cash Flow and Investments - Net cash provided by operating activities for the three months ended April 2, 2023, was $71.7 million, down from $326.1 million for the same period in 2022, a decrease of $254.4 million[120] - Net cash used in investing activities was $215.1 million for the three months ended April 2, 2023, compared to $48.6 million for the same period in 2022, an increase of $166.5 million[121] - Net cash used in financing activities decreased to $113.2 million for the three months ended April 2, 2023, from $164.9 million in the same period in 2022, a decrease of $51.7 million[122] Share Repurchase and Dividends - The company repurchased 450,238 shares of common stock for an aggregate cost of $57.9 million during the three months ended April 2, 2023[116] - A quarterly cash dividend of $0.07 per share was declared for Q1 FY 2023, with $8.8 million accrued for dividends declared on January 26, 2023, to be paid in May 2023[124] - The company may consider reducing or eliminating its common stock dividend in the future to fund growth investments, repurchase shares, or conserve capital resources[124] Cash and Contingent Considerations - As of April 2, 2023, the company had cash and cash equivalents of $2.3 billion, with $1.9 billion held by non-U.S. subsidiaries[113] - The company recorded contingent consideration obligations of $43.8 million related to acquisitions with open contingency periods as of April 2, 2023[117] - The company expects to use proceeds from the sale of the business for debt maturities, share repurchases, and strategic acquisitions[110] Debt Management and Market Risks - The company has repurchased $32.9 million of its 0.550% senior unsecured notes due in September 2023 and $81.9 million of its 0.850% senior unsecured notes due in September 2024 since the beginning of Q3 FY 2022[123] - The company continues to measure foreign currency risk using the Value-at-Risk model, with no material changes in the measures for its Value-at-Risk analysis[128] - The company is exposed to market risks, including changes in interest rates and currency exchange rates, and manages these risks through derivative transactions[127] - The sensitivity measures for the company's interest rate risk have not changed materially, as detailed in its 2022 Form 10-K[130] - No derivative instruments are outstanding as of April 2, 2023, to manage interest rate exposures[129] Accounting and Regulatory Matters - The company has not adopted any new accounting pronouncements during the three months ended April 2, 2023, and no significant impact from recently issued accounting pronouncements is expected[126]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Unaudited Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Financial%20Statements) This section presents PerkinElmer's unaudited condensed consolidated financial statements, adjusted for discontinued operations, reflecting decreased revenue and net income due to lower COVID-19 sales [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenues for the three months ended October 2, 2022, decreased to $711.8 million, resulting in lower net income of $85.3 million and diluted EPS of $0.67 Condensed Consolidated Statements of Operations (Three Months Ended) | Metric | Three Months Ended Oct 2, 2022 (In thousands) | Three Months Ended Oct 3, 2021 (In thousands) | | :--- | :--- | :--- | | **Total revenue** | **$711,803** | **$861,316** | | Operating income from continuing operations | $110,780 | $195,561 | | Income from continuing operations | $69,508 | $107,631 | | **Net income** | **$85,347** | **$127,738** | | Diluted EPS from continuing operations | $0.55 | $0.94 | | **Diluted EPS (Net income)** | **$0.67** | **$1.11** | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of October 2, 2022, total assets decreased to $13.82 billion, total liabilities decreased to $6.76 billion, and stockholders' equity remained stable Condensed Consolidated Balance Sheet Highlights | Metric | Oct 2, 2022 (In thousands) | Jan 2, 2022 (In thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $400,741 | $603,320 | | Total current assets | $3,116,480 | $2,440,780 | | Goodwill | $6,373,327 | $6,627,119 | | **Total assets** | **$13,823,764** | **$15,000,554** | | Total current liabilities | $1,485,731 | $1,213,744 | | Long-term debt | $3,898,267 | $4,979,737 | | **Total liabilities** | **$6,758,564** | **$7,859,309** | | **Total stockholders' equity** | **$7,065,200** | **$7,141,245** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly decreased to $540.7 million, with net cash used in investing and financing activities for the nine months ended October 2, 2022 Condensed Consolidated Statements of Cash Flows (Nine Months Ended) | Cash Flow Activity | Nine Months Ended Oct 2, 2022 (In thousands) | Nine Months Ended Oct 3, 2021 (In thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $540,652 | $1,075,158 | | Net cash used in investing activities | ($107,167) | ($4,052,807) | | Net cash (used in) provided by financing activities | ($585,106) | $3,080,682 | | **Net (decrease) increase in cash** | **($203,025)** | **$86,449** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies and financial data, covering revenue disaggregation, business combinations, discontinued operations, restructuring, debt, and fair value measurements - In August 2022, the company agreed to sell its Analytical, Food and Enterprise Services businesses to New Mountain Capital for up to **$2.45 billion**. These businesses are now classified as discontinued operations, and prior period financial statements have been retrospectively adjusted[24](index=24&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk) - In fiscal year 2021, the company acquired BioLegend, Inc. for an aggregate consideration of **$5.7 billion**, consisting of **$3.3 billion** in cash and **$2.6 billion** in stock, significantly expanding the Discovery & Analytical Solutions segment[33](index=33&type=chunk) Revenue by Segment (Three Months Ended Oct 2, 2022) | Segment | Revenue (In thousands) | YoY Change | | :--- | :--- | :--- | | Discovery & Analytical Solutions | $312,783 | +50.7% | | Diagnostics | $399,020 | -39.0% | | **Total** | **$711,803** | **-17.4%** | - The company initiated several restructuring plans in 2022, involving workforce reductions to realign resources towards growth initiatives and integrate acquisitions, with total charges of **$18.8 million** for the first three quarters[48](index=48&type=chunk)[49](index=49&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2022 financial results, highlighting a 17.4% revenue decrease driven by lower Diagnostics segment sales, partially offset by Discovery & Analytical Solutions growth from acquisitions [Overview](index=28&type=section&id=Overview) Q3 2022 total revenue decreased by 17.4% to $711.8 million, driven by a 39% decline in Diagnostics due to lower COVID-19 sales, partially offset by 51% growth in Discovery & Analytical Solutions from acquisitions Q3 2022 Performance Summary | Metric | Q3 2022 vs Q3 2021 Change | | :--- | :--- | | Total Revenue | -17.4% | | Diagnostics Segment Revenue | -39% | | Discovery & Analytical Solutions Segment Revenue | +51% | | Consolidated Gross Margin | -352 bps | | Consolidated Operating Margin | -714 bps | [Consolidated Results of Continuing Operations](index=29&type=section&id=Consolidated%20Results%20of%20Continuing%20Operations) Q3 2022 revenue decreased 17.4% to $711.8 million due to lower COVID-19 sales, impacting gross margin, while SG&A decreased and R&D increased reflecting strategic investments - Q3 2022 revenue decreased by **$149.5 million (17.4%)** YoY, primarily due to a **$231.2 million** decline in COVID-19 product revenue from the Diagnostics segment[100](index=100&type=chunk) - Gross margin for Q3 2022 decreased by **352 basis points** to **57.2%**, mainly due to increased amortization of intangible assets from acquisitions (**$35.3 million** vs **$28.5 million** YoY) and lower high-margin COVID-19 revenue[102](index=102&type=chunk) - The effective tax rate from continuing operations for Q3 2022 was **15.4%**, down from **20.3%** in Q3 2021, primarily due to lower income in higher tax jurisdictions and a one-time discrete expense in the prior year[116](index=116&type=chunk) [Reporting Segment Results of Continuing Operations](index=33&type=section&id=Reporting%20Segment%20Results%20of%20Continuing%20Operations) Discovery & Analytical Solutions segment revenue grew 51% to $312.8 million, while Diagnostics segment revenue fell 39% to $399.0 million due to reduced COVID-19 product sales Q3 2022 Segment Performance | Segment | Revenue (In millions) | YoY Change | Operating Income (In millions) | YoY Change | | :--- | :--- | :--- | :--- | :--- | | Discovery & Analytical Solutions | $312.8 | +51% | $32.6 | +269% | | Diagnostics | $399.0 | -39% | $94.7 | -60% | [Discontinued Operations](index=35&type=section&id=Discontinued%20Operations) The company is selling its Analytical, Food and Enterprise Services businesses for up to $2.45 billion, now reported as discontinued operations, generating $320.6 million in Q3 2022 revenue - The sale of the Analytical, Food and Enterprise Services businesses is for cash consideration of up to **$2.45 billion**, with approximately **$2.30 billion** payable at closing, expected in Q1 2023[128](index=128&type=chunk) Discontinued Operations Financial Summary (Q3 2022) | Metric | Amount (In thousands) | | :--- | :--- | | Revenue | $320,616 | | Income from discontinued operations before income taxes | $25,180 | [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) As of October 2, 2022, the company had $400.7 million in cash and $1.5 billion in credit, with net cash from operations at $545.3 million, and plans to use divestiture proceeds for debt, repurchases, and strategic acquisitions - As of October 2, 2022, the company had **$400.7 million** in cash and equivalents and **$1.5 billion** of borrowing capacity available under its senior unsecured revolving credit facility[132](index=132&type=chunk) - The company expects to use the **~$2.23 billion** in proceeds from the sale of its discontinued operations to fund debt maturities, opportunistic share repurchases, and strategic acquisitions[130](index=130&type=chunk) - A new **$300.0 million** stock repurchase program was authorized on July 22, 2022, expiring in July 2024, with no shares repurchased under this new program during Q3 2022[134](index=134&type=chunk)[135](index=135&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rate and foreign currency fluctuations, managed with derivatives, with no material changes from its 2021 Form 10-K disclosures - The company's primary market risks are changes in interest rates and foreign currency exchange rates[147](index=147&type=chunk) - The company uses derivative transactions to hedge against known or forecasted market exposures, and these risks have not materially changed since the 2021 Form 10-K[147](index=147&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of October 2, 2022, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of October 2, 2022[152](index=152&type=chunk) - No material changes were made to the company's internal control over financial reporting during the third fiscal quarter of 2022[153](index=153&type=chunk) [PART II. OTHER INFORMATION](index=41&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal proceedings in the ordinary course of business, with management not expecting a material adverse effect on financial statements - The company is subject to various legal proceedings but believes the resolution of these matters will not have a material adverse effect on its financial condition[156](index=156&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This section outlines significant risks including market dependence, COVID-19 impact, global instability, innovation challenges, M&A issues, competition, supply chain disruptions, and regulatory compliance [Risks Related to Business Operations and Industry](index=41&type=section&id=Risks%20Related%20to%20our%20Business%20Operations%20and%20Industry) The company faces risks from market downturns, economic conditions, government funding changes, ongoing COVID-19 impacts, global political instability, innovation failures, M&A challenges, competition, and supply chain disruptions - The business is highly dependent on customer markets (pharma, biotech, academic) and is vulnerable to economic downturns, cuts in government funding, and unfavorable regulations[157](index=157&type=chunk) - The COVID-19 pandemic has reduced demand for certain products and may continue to disrupt operations, supply chains, and manufacturing, with revenue from COVID-19 testing products expected to decline[158](index=158&type=chunk)[162](index=162&type=chunk) - Failure to successfully execute acquisitions or divestitures, such as the pending sale of the Analytical, Food and Enterprise Services businesses, could dilute earnings and present integration or separation challenges[169](index=169&type=chunk)[170](index=170&type=chunk) - Disruptions in the supply of critical raw materials from limited or single-source suppliers could adversely affect business operations and customer relationships[174](index=174&type=chunk) [Risks Related to Intellectual Property](index=45&type=section&id=Risks%20Related%20to%20our%20Intellectual%20Property) The company's competitive advantage relies on intellectual property protection, facing risks of patent challenges, inadequate trade secret protection, and loss of licensed technology rights - The company faces risks that its patents may not be issued, may be challenged by third parties, or may not be broad enough to fully protect its products[182](index=182&type=chunk)[183](index=183&type=chunk) - Loss of licensed rights, through non-renewal or other factors, could require the company to cease selling products or redesign them, potentially losing competitive advantage[185](index=185&type=chunk) [Risks Related to Legal, Government and Regulatory Matters](index=46&type=section&id=Risks%20Related%20to%20Legal%2C%20Government%20and%20Regulatory%20Matters) The company faces product liability risks and must comply with extensive FDA and other regulations, with non-compliance potentially leading to recalls, fines, and significant penalties in the highly regulated healthcare industry - The company's operations are subject to extensive regulation by the FDA and other agencies; non-compliance could lead to product recalls, fines, or criminal penalties[188](index=188&type=chunk) - The highly regulated healthcare industry poses risks of significant fines, penalties, and exclusion from government programs for non-compliance with fraud, abuse, and privacy laws[191](index=191&type=chunk) [Risks Related to Foreign Operations](index=47&type=section&id=Risks%20Related%20to%20our%20Foreign%20Operations) With most revenue from outside the U.S., the company faces risks from foreign currency fluctuations, political instability, trade protectionism, and differing regulations, with Brexit posing ongoing economic uncertainty - With a majority of sales from outside the U.S., the company is exposed to risks including currency fluctuations, political instability, trade sanctions, and differing tax and labor laws[192](index=192&type=chunk)[193](index=193&type=chunk) - Brexit poses ongoing risks of economic volatility and adverse currency movements (GBP vs USD), which could harm the company's UK and European business[195](index=195&type=chunk)[196](index=196&type=chunk) [Risks Related to Debt](index=49&type=section&id=Risks%20Related%20to%20our%20Debt) Substantial debt levels could reduce available funds, limit flexibility, and expose the company to interest rate and foreign currency risks, with restrictive covenants and potential LIBOR discontinuation impacting expenses - Substantial debt levels could require significant cash flow for debt service, reducing funds for other purposes and limiting operational flexibility[197](index=197&type=chunk)[199](index=199&type=chunk) - Existing debt agreements contain restrictive covenants that limit the company's ability to pay dividends, sell assets, and incur additional secured debt[198](index=198&type=chunk)[200](index=200&type=chunk) - The planned discontinuation of LIBOR after June 2023 may increase interest expense on the company's variable-rate debt facilities[203](index=203&type=chunk) [Risks Related to Ownership of Common Stock](index=50&type=section&id=Risks%20Related%20to%20Ownership%20of%20our%20Common%20Stock) The company's common stock price is subject to significant volatility due to market conditions and operating results, and future dividends are not guaranteed and may be reduced or eliminated - The company's common stock price is subject to significant price and volume volatility[204](index=204&type=chunk) - Future dividends are not guaranteed and may be reduced or eliminated by the Board of Directors[205](index=205&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's stock repurchase activities, including a new $300 million program authorized in July 2022, under which no shares were repurchased in Q3 2022, except for tax withholding obligations - A new stock repurchase program for up to **$300 million** was authorized on July 22, 2022, and will expire on July 22, 2024, with no shares repurchased under this program in Q3 2022[207](index=207&type=chunk) - During Q3 2022, the company repurchased **624 shares** of common stock for **$0.1 million** to satisfy minimum statutory tax withholding obligations related to employee equity awards[208](index=208&type=chunk) [Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the Master Purchase and Sale Agreement for divested businesses, employment agreements, CEO/CFO certifications, and XBRL data files - Exhibits filed include the Master Purchase and Sale Agreement for the divested businesses, CEO/CFO certifications, and XBRL interactive data files[209](index=209&type=chunk)[210](index=210&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________ FORM 10-Q _______________________________________ (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 3, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number 001-5075 ___ ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________ FORM 10-Q _______________________________________ (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 3, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number 001-5075 __ ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 _____________________________________ Form 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 2, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to ________ Commission file number 001-5075 _____________________________________ PerkinElmer, Inc. (Exac ...