Revvity(US:RVTY)2024-05-07 18:05Revenue Performance - Overall revenue for Q1 FY2024 was $649.9 million, a decrease of $24.9 million, or 4%, compared to Q1 FY2023 [81] - Life Sciences segment revenue decreased by $25.4 million, or 8%, to $303.0 million, driven by declines in instruments and reagents revenue [86] - Diagnostics segment revenue increased by $0.5 million, or less than 1%, to $347.1 million, supported by growth in immunodiagnostics and reproductive health [94] Margin Analysis - Consolidated gross margins decreased by 188 basis points to 54.6% due to lower sales volume, despite pricing actions and productivity gains [82] - Operating margins fell from 11% to 7% primarily due to lower sales volume and increased rebranding expenses [82] - Segment operating income for Life Sciences decreased by $27.7 million, or 21%, to $101.7 million, with a segment operating margin decline of 585 basis points [97] Expenses - Research and development expenses decreased by $6.3 million, or 11%, to $50.4 million, representing 7.7% of revenue [89] - Selling, general and administrative expenses increased by $12.0 million, or 5%, to $260.6 million, accounting for 40.1% of revenue [88] Tax and Discontinued Operations - The effective tax rate from continuing operations was 16.9%, up from 15.6% in the prior year, due to higher projected income in certain jurisdictions [93] - Discontinued operations reported a loss of $2.7 million for the three months ended March 31, 2024, compared to income of $544.6 million for the same period in 2023 [100] Cash and Investments - Cash and cash equivalents totaled $998.1 million as of March 31, 2024, with $411.1 million held by non-U.S. subsidiaries [103] - Net cash provided by operating activities increased to $150.1 million for the three months ended March 31, 2024, up from $71.7 million in the prior year [111] - Net cash used in investing activities decreased to $18.2 million for the three months ended March 31, 2024, compared to $215.1 million in the same period in 2023 [112] Shareholder Returns and Debt Management - The company completed the sale of certain assets for up to $2.45 billion, receiving approximately $2.13 billion in cash proceeds [99] - The sale of the Business generated approximately $2.13 billion in cash, which will be used for debt maturities, share repurchases, and strategic acquisitions [102] - The company repurchased 63,170 shares of common stock for $6.6 million during the three months ended March 31, 2024, with $348.9 million remaining under the repurchase program [105] - A quarterly cash dividend of $0.07 per share was declared for the first quarter of fiscal year 2024, with $8.6 million accrued for payment in May 2024 [115] - The company expects to utilize proceeds from U.S. treasury securities to repay outstanding 2024 Notes totaling $711.5 million [114] Pension Contributions - The company contributed $1.7 million to pension plans outside of the United States during the three months ended March 31, 2024, with an additional $5.2 million expected by the end of fiscal year 2024 [108]