Revvity(US:RVTY)2024-11-06 21:13Revenue Performance - Overall revenue for Q3 FY2024 was $684.0 million, an increase of $13.3 million, or 2%, compared to Q3 FY2023[85] - Diagnostics segment revenue increased by $20.2 million, or 6%, to $383.3 million, driven by higher demand in immunodiagnostics and reproductive health[91] - Life Sciences segment revenue decreased by $6.9 million, or 2%, to $300.9 million, primarily due to a decline in instruments and software revenue[91] - Revenue for the nine months ended September 29, 2024, was $2,025.7 million, a decrease of $29.0 million, or approximately 1%, compared to the same period in FY2023[92] - Diagnostics segment revenue for the nine months ended September 29, 2024, increased by $25.8 million, or 2%, to $1,108.5 million[92] - Life Sciences segment revenue for the nine months ended September 29, 2024, decreased by $54.8 million, or 6%, to $917.8 million[92] Profitability Metrics - Consolidated gross margins improved by 72 basis points to 56.3% in Q3 FY2024, attributed to higher sales volume and productivity gains[86] - Operating margins increased from 10% to 14% in Q3 FY2024, reflecting improved sales volume and cost containment efforts[86] - Segment operating income for the Life Sciences segment decreased by $11.2 million, or 10%, to $103.0 million for the three months ended September 29, 2024, with a segment operating margin decrease of 287 basis points[108] Expenses and Cost Management - Selling, general and administrative expenses decreased by $12.7 million, or 5%, to $237.5 million in Q3 FY2024, representing 34.7% of revenue[96] - Research and development expenses for Q3 FY2024 were $49.1 million, a decrease of $3.9 million, or 7%, compared to Q3 FY2023[98] Cash Flow and Financial Position - Cash and cash equivalents stood at $1,229.8 million as of September 29, 2024, with $511.7 million held by non-U.S. subsidiaries[119] - Net cash provided by operating activities for the nine months ended September 29, 2024, was $489.5 million, an increase of $430.7 million compared to $58.8 million for the same period in the previous year[128] - Net cash provided by investing activities was $646.0 million for the nine months ended September 29, 2024, compared to a net cash used of $346.4 million for the same period in the previous year, marking an increase of $992.4 million[129] - Net cash used in financing activities was $935.2 million for the nine months ended September 29, 2024, slightly increasing by $7.7 million from $927.5 million in the prior year[130] - The company made net payments of $722.3 million on debts during the nine months ended September 29, 2024, compared to $510.8 million in the same period of the previous year[130] Shareholder Returns and Dividends - The company declared a quarterly cash dividend of $0.07 per share for the first three quarters of fiscal year 2024, with a total of $8.5 million accrued for the third quarter[132] - The company repurchased 1,283,609 shares of common stock for an aggregate cost of $153.4 million during the three months ended September 29, 2024, under the stock repurchase program[121] - The company anticipates using proceeds from the sale of the Business for opportunistic share repurchases and strategic acquisitions[117] Tax and Interest Income - The effective tax rate from continuing operations was 6.9% for the three months ended September 29, 2024, significantly lower than 35.8% for the same period in the prior year, primarily due to favorable adjustments in foreign locations[104] - Interest income decreased to $(22,764) thousand for the three months ended September 29, 2024, compared to $(23,450) thousand for the same period in the prior year, primarily due to a decrease in marketable securities and short-term investments[101] - The company reported a total interest and other (income) expense, net of $(2,206) thousand for the three months ended September 29, 2024, compared to $18,625 thousand for the same period in the prior year[101] Future Outlook and Obligations - The company expects to receive an additional $65.6 million related to the Brand Fee in installments through March 2025 following the sale of the Business[120] - As of September 29, 2024, the company has recorded contingent consideration obligations of $31.1 million related to acquisitions, with a maximum earnout period of 7.2 years[122] - The company contributed $5.2 million to pension plans outside of the United States during the nine months ended September 29, 2024, with an additional $1.7 million expected by the end of fiscal year 2024[124] - The company expects to use existing cash and external sources to satisfy future contributions to its pension plans[124] - The company holds $1,229.8 million in cash and cash equivalents as of September 29, 2024, which are subject to fluctuations in interest rates[136] - The company may face adverse impacts from distressed global financial markets, including reduced liquidity and increased borrowing costs[123]