REVVITY INC

Revenue

Revenue for the three months ended March 31, 2024 was $649.9 million, as compared to $674.9 million for the three months ended April 2, 2023, a decrease of $24.9 million, or approximately 4%. The analysis in the remainder of this paragraph comp ares segment revenue and includes the effect of foreign exchange rate fluctuations. Life Sciences segment revenue was $303.0 million for the three months ended March 31, 2024, as compared to $328.4 million for the three months ended April 2, 2023, a decrease of $25.4 million, or 8%, driven by a decrease of $15.3 million in instruments revenue and a decrease of $12.7 million in reagents revenue, partially offset by an increase of $2.5 million in software revenue. Diagnostics segment revenue was $347.1 million for the three months ended March 31, 2024, as compared to $346.6 million for the three months ended April 2, 2023, an increase of $0.5 million, or less than 1%, due toan increase of $14.7 million in immunodiagnostics revenue and anincrease of $1.8 million in reproductive health revenue, partially offset bya decrease of $16.0 million in applied genomics revenue.

Cost of Revenue

Cost of revenue for the three months ended March 31, 2024 was $294.9 million, as compared to $293.5 million for the three months ended April 2, 2023, an increase of $1.4 million, or approximately 0.5%. As a percentage of revenue, cost of revenue increased to 45.4% for the three months ended March 31, 2024, from 43.5% for the three months ended April 2, 2023, resulting in a decrease in gross margin of 188 basis points to 54.6% for the three months ended March 31, 2024, from 56.5% for the three months ended April 2, 2023, primarilydue to lower sales volume partially offset by pricing actions and productivity gains. Rebranding costs added an incremental expense of$4.5 millionfor the three months ended March 31, 2024. Stock compensation expense related to awards given to BioLegend empl oyees post-acquisition added an incremental expense of $0.2 million for the three months ended March 31, 2024, as compared to$0.9 million for the three months ended April 2, 2023. Amortization of intangible assets was $35.4 million for the three months ended March 31, 2024, as compared to $38.4 million for the three months ended April 2, 2023.

Selling, General and Administrative Expenses

Selling, general and administrative expenses for the three months ended March 31, 2024 were $260.6 million, as compared to $248.6 million for the three months ended April 2, 2023, an increase of $12.0 million, or 5%. As a percentage of revenue, selling, general and administrative expenses increased and were 40.1% for the three months ended March 31, 2024, as compared to 36.8% for the three months ended April 2, 2023. Amortization of intangible assets increased and was $55.8 million for the three months ended March 31, 2024, as compared to $53.4 million for the three months ended April 2, 2023. Purchase accounting adjustments added an incremental expense of $6.2 million for the three months ended March 31, 2024, which primarily consisted of a change in contingent consideration, as compared to decreasing expenses by $1.3 million for the three months ended April 2, 2023. Restructuring and other costs, net, increased and was $12.4 million for the three months ended March 31, 2024, as compared to$3.1 million for the three months ended April 2, 2023. The above increases were partially offset by a decrease in acquisition and divestiture-related expenses, which primarily consisted of legal and integration costs, and stock compensation expense related to the awards given to BioLegend employees post-acquisition, and which added an incremental expense of $6.1 million for the three months ended March 31, 2024, as compared to $15.9 million for the three months ended April 2, 2023. Costs for significant environmental matters also added an incremental expense of $1.1 million for the three months ended April 2, 2023. Excluding the factors above, the net increase in selling, general and administrative expenses wasthe result of a normalization in variable compensation partially offset by cost containment and productivity initiatives.

Research and Development Expenses

Research and development expenses for the three months ended March 31, 2024 were $50.4 million, as compared to $56.7 million for the three months ended April 2, 2023, a decrease of $6.3 million, or 11%. As a percentage of revenue, research and development expenses decreased and were 7.7% for the three months ended March 31, 2024, as compared to 8.4% for the three months ended April 2, 2023. The decrease in research and development expenses was primarily driven by a cost containment and productivity initiatives, as well as a decrease in stock compensation expense related to awards given to

BioLegend employees post-acquisition, which added an incremental expense of $0.7 million for thethree months ended March 31, 2024 as compared to $1.2 millionfor the three months ended April 2, 2023.

Interest and Other Expense, Net

Interest and other expense, net, consisted of the following:

The increase in interest income was primarily due to an increase in investments and higher interest rates. Interest expense was lower for the three months ended April 2, 2023 primarily due to$3.3 million of debt extinguishment income. Foreign exchange losses and other expense, net, was higher for the three months ended April 2, 2023 mainly due to a foreign exchange loss of $26.1 million related to the cash proceeds from the sale of the Business that were held offshore.

Provision for Income Taxes

The provision for income taxes from continuing operations was $5.9 million for the three months ended March 31, 2024, as compared to $4.6 million for the three months ended April 2, 2023.

The effective tax rate from continuing operations was 16.9% for the three months ended March 31, 2024, as compared to 15.6% for the three months ended April 2, 2023. The effective tax rate during the three months ended March 31, 2024 was higher primarily due to projected higher income in certain higher tax rate jurisdictions in fiscal year 2024 as compared to fiscal year 2023. The effective tax rate duringthe three months ended April 2, 2023 was lower as it included adiscrete tax benefit tota ling $1.6 million thatwas recognized in the first quarter of fiscal year 2023. We expect that the effective tax rate on continuing operations, before discrete items, will be approximately 20% during fiscal year 2024.