REVVITY INC

Previous wording

Overview of the Second Quarter of Fiscal Year 2024

Current wording

Overview of the Third Quarter of Fiscal Year 2024

Previous wording

Our overall revenue in the second quarter of fiscal year 2024 was $691.7 million which decreased by $17.4 million, or 2%, as compared to the second quarter of fiscal year 2023, reflecting a decrease of $22.5 million, or 7%, in our Life Sciences segment revenue, which was partially offset by an increase of $5.1 million, or 1%, in our Diagnostics segment revenue. The decrease in our Life Sciences segment revenue for the second quarter of fiscal year 2024 was driven by a decrease in reagents revenue and instruments revenue due to market headwinds, partially offset by an increase in software revenue. The increase in our Diagnostics segment revenue for the second quarter of fiscal year 2024 was driven by increased demand in our immunodiagnostics and reproductive health businesses, partially offset by a decrease in revenue from our applied genomics business.

Current wording

Our overall revenue in the third quarter of fiscal year 2024 was $684.0 million which increased by $13.3 million, or 2%, as compared to the third quarter of fiscal year 2023, reflecting an increase of $20.2 million, or 6%, in our Diagnostics segment revenue, which was partially offset by a decrease of $6.9 million, or 2%, in our Life Sciences segment revenue. The increase in our Diagnostics segment revenue for the third quarter of fiscal year 2024 was driven by increased demand in our immunodiagnostics and reproductive health businesses, partially offset by a decrease in revenue from our applied genomics business. The decrease in our Life Sciences segment revenue for the third quarter of fiscal year 2024 was driven by a decrease in instruments and software revenue, partially offset by an increase in reagents revenue.

Previous wording

Our consolidated gross margins decreased 101 basis points in the second quarter of fiscal year 2024, as compared to the second quarter of fiscal year 2023, primarily due to lower sales volume and increased material costs, partially offset by pricing actions, productivity gains, and transportation cost initiatives. Our consolidated operating margins increased from 11% to 12% in the second quarter of fiscal year 2024, as compared to the second quarter of fiscal year 2023, primarily due to productivity gains and cost containment more than offsetting lower gross margins.

Current wording

Our consolidated gross margins increased 72 basis points in the third quarter of fiscal year 2024, as compared to the third quarter of fiscal year 2023, primarily due to higher sales volume and productivity gains. Our consolidated operating margins increased from 10% to 14% in the third quarter of fiscal year 2024, as compared to the third quarter of fiscal year 2023, primarily due to higher sales volume, productivity gains and cost containment.

Previous wording

For a more detailed discussion of our critical accounting policies and estimates, refer to the Notes to our audited consolidated financial statements and Item 7.“Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (our “2023 Form 10-K”), as filed with the Securities and Exchange Commission. There have been no significant changes in our critical accounting policies and estimates during the six months ended June 30, 2024.

Current wording

For a more detailed discussion of our critical accounting policies and estimates, refer to the Notes to our audited consolidated financial statements and Item 7.“Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (our “2023 Form 10-K”), as filed with the Securities and Exchange Commission. There have been no significant changes in our critical accounting policies and estimates during the nine months ended September 29, 2024.

Previous wording

Revenue for the three months ended June 30, 2024 was $691.7 million, as compared to $709.1 million for the three months ended July 2, 2023, a decrease of $17.4 million, or approximately 2%, which includes a 1% decrease in revenue attributable to unfavorable changes in foreign exchange rates. 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 $313.8 million for the three months ended June 30, 2024, as compared to $336.4 million for the three months ended July 2, 2023, a decrease of $22.5 million, or 7%, driven by a decrease of $15.4 million in reagents revenue and a decrease of $13.8 million in instruments revenue, partially offset by an increase of $6.7 million in software revenue. Diagnostics segment revenue was $378.0 million for the three months ended June 30, 2024, as compared to $372.9 million for the three months ended July 2, 2023, an increase of $5.1 million, or 1%, due to an increase of $12.4 million in immunodiagnostics revenue andan increase of $0.6 million in reproductive health revenue, partially offset bya decrease of $7.8 million in applied genomics revenue.

Current wording

Revenue for the three months ended September 29, 2024 was $684.0 million, as compared to $670.7 million for the three months ended October 1, 2023, an increase of $13.3 million, or approximately 2%. 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 $300.9 million for the three months ended September 29, 2024, as compared to $307.9 million for the three months ended October 1, 2023, a decrease of $6.9 million, or 2%, driven by a decrease of $10.9 million in instruments revenue and a decrease of $2.9 million in software revenue, partially offset by an increase of $6.9 million in reagents revenue. Diagnostics segment revenue was $383.3 million for the three months ended September 29, 2024, as compared to $363.1 million for the three months ended October 1, 2023, an increase of $20.2 million, or 6%, due to an increase of $11.4 million in immunodiagnostics revenue andan increase of $9.6 million in reproductive health revenue, partially offset bya decrease of $0.7 million in applied genomics revenue. As a result of adjustments to deferred revenue related to certain acquisitions required by business combination accounting rules, we did not recognize $0.2 million of revenue for each of thethree months ended September 29, 2024 and October 1, 2023 that otherwise would have been recorded by the acquired businesses during each of the respective periods.

Previous wording

Revenue for the six months ended June 30, 2024 was $1,341.6 million, as compared to $1,383.9 million for the six months ended July 2, 2023, a decrease of $42.3 million, or approximately 3%, which includes a 1% decrease in revenue attributable to unfavorable changes in foreign exchange rates. The analysis in the remainder of this paragraph compares segment revenue and includes the effect of foreign exchange rate fluctuations. Life Sciences segment revenue was $616.9 million for the six months ended June 30, 2024, as compared to $664.8 million for the six months ended July 2, 2023, a decrease of $47.9 million, or 7%, driven by a decrease of $29.1 million in instruments revenue and a decrease of $28.0 million in reagents revenue, partially offset by an increase of $9.2 million in software revenue. Diagnostics segment revenue was $725.1 million for the six months ended June 30, 2024, as compared to $719.5 million for the six months ended July 2, 2023, an increase of $5.6 million, or 1%, due to an increase of $27.0 million in immunodiagnostics revenue and an increase of $2.3 million in reproductive health revenue, partially offset by a decrease of $23.8 million in applied genomics revenue.

Current wording

Revenue for the nine months ended September 29, 2024 was $2,025.7 million, as compared to $2,054.7 million for the nine months ended October 1, 2023, a decrease of $29.0 million, or approximately 1%. The analysis in the remainder of this paragraph compares segment revenue and includes the effect of foreign exchange rate fluctuations. Life Sciences segment revenue was $917.8 million for the nine months ended September 29, 2024, as compared to $972.6 million for the nine months ended October 1, 2023, a decrease of $54.8 million, or 6%, driven by a decrease of $40.0 million in instruments revenue and a decrease of $21.2 million in reagents revenue, partially offset by an increase of $6.3 million in software revenue. Diagnostics segment revenue was $1,108.5 million for the nine months ended September 29, 2024, as compared to $1,082.6 million for the nine months ended October 1, 2023, an increase of $25.8 million, or 2%, due to an increase of $38.5 million in immunodiagnostics revenue and an increase of $11.9 million in reproductive health revenue, partially offset by a decrease of $24.5 million in applied genomics revenue. As a result of adjustments to deferred revenue related to certain acquisitions required by business combination accounting rules, we did not recognize $0.6 million of revenue for each of thenine months ended September 29, 2024 and October 1, 2023 that otherwise would have been recorded by the acquired businesses during each of the respective periods.

Previous wording

Cost of revenue for the three months ended June 30, 2024 was $306.2 million, as compared to $306.7 million for the three months ended July 2, 2023, a decrease of $0.6 million, or less than 1%. As a percentage of revenue, cost of revenue increased to 44.3% for the three months ended June 30, 2024, from 43.3% for the three months ended July 2, 2023, resulting in a decrease in gross margin of 101 basis points to 55.7% for the three months ended June 30, 2024, from 56.7% for the three months ended July 2, 2023, primarily due to lower sales volume and increased material costs, partially offset by pricing actions, productivity gains and transportation cost initiatives. Rebranding costs were $1.6 million for the three months ended June 30, 2024. Stock compensation expense related to awards given to BioLegend employees post-acquisition added an incremental expense of $0.2 million for the three months ended June 30, 2024, as compared to $0.8 million for the three months ended July 2, 2023. Amortization of intangible assets was $37.3 million for the three months ended June 30, 2024, as compared to $38.9 million for the three months ended July 2, 2023.

Current wording

Cost of revenue for the three months ended September 29, 2024 was $299.2 million, as compared to $298.2 million for the three months ended October 1, 2023, an increase of $1.0 million, or less than 1%. As a percentage of revenue, cost of revenue decreased to 43.7% for the three months ended September 29, 2024, from 44.5% for the three months ended October 1, 2023, resulting in an increase in gross margin of 72 basis points to 56.3% for the three months ended September 29, 2024, from 55.5% for the three months ended October 1, 2023, primarily due to higher sales volume and productivity gains. Stock compensation expense related to awards given to BioLegend employees post-acquisition added an incremental expense of $0.2 million for the three months ended September 29, 2024, as compared to $0.8 million for the three months ended October 1, 2023. Rebranding costs were $0.1 million for the three months ended September 29, 2024. Amortization of intangible assets was $36.4 million for the three months ended September 29, 2024, as compared to $35.7 million for the three months ended October 1, 2023.

Previous wording

Cost of revenue for the six months ended June 30, 2024 was $601.1 million, as compared to $600.2 million for the six months ended July 2, 2023, an increase of $0.8 million, or less than 1%. As a percentage of revenue, cost of revenue increased to 44.8% for the six months ended June 30, 2024, from 43.4% for the six months ended July 2, 2023, resulting in a decrease in gross margin of 143 basis points to 55.2% for the six months ended June 30, 2024, from 56.6% for the six months ended July 2, 2023, primarily due to lower sales volume and increased material costs, partially offset by pricing actions and productivity gains. Rebranding costs were $6.1 million for the six months ended June 30, 2024. Stock compensation expense related to awards given to BioLegend employees post-acquisition added an incremental expense of $0.4 million for the six months ended June 30, 2024, as compared to $1.7 million for the six months ended July 2, 2023. Amortization of intangible assets was $72.7 million for the six months ended June 30, 2024, as compared to $77.3 million for the six months ended July 2, 2023.

Current wording

Cost of revenue for the nine months ended September 29, 2024 was $900.3 million, as compared to $898.5 million for the nine months ended October 1, 2023, an increase of $1.8 million, or less than 1%. As a percentage of revenue, cost of revenue increased to 44.4% for the nine months ended September 29, 2024, from 43.7% for the nine months ended October 1, 2023, resulting in a decrease in gross margin of 72 basis points to 55.6% for the nine months ended September 29, 2024, from 56.3% for the nine months ended October 1, 2023, primarily due to lower sales volume and higher product costs, partially offset by productivity gains. Rebranding costs were $6.2 million for the nine months ended September 29, 2024. Stock compensation expense related to awards given to BioLegend employees post-acquisition added an incremental expense of $0.6 million for the nine months ended September 29, 2024, as compared to $2.5 million for the nine months ended October 1, 2023. Amortization of intangible assets was $109.1 million for the nine months ended September 29, 2024, as compared to $113.0 million for the nine months ended October 1, 2023.

Previous wording

Selling, general and administrative expenses for the three months ended June 30, 2024 were $251.7 million, as compared to $267.0 million for the three months ended July 2, 2023, a decrease of $15.4 million, or 6%. As a percentage of revenue, selling, general and administrative expenses decreased and were 36.4% for the three months ended June 30, 2024, as compared to 37.7% for the three months ended July 2, 2023. Amortization of intangible assets decreased and was $53.3 million for the three months ended June 30, 2024, as compared to $53.9 million for the three months ended July 2, 2023. 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 added an incremental expense of $3.3 million for the three months ended June 30, 2024, as compared to $26.6 million for the three months ended July 2, 2023. Purchase accounting adjustments added an incremental expense of $0.2 million for the three months ended June 30, 2024, which primarily consisted of a change in contingent consideration, as compared to $2.5 million for the three months ended July 2, 2023. The above decreases were partially offset by an increase in restructuring and other costs, net, which was $9.8 million for the three months ended June 30, 2024, as compared to $2.0 million for the three months ended July 2, 2023. Significant litigation matters and settlements added an incremental expense of $6.3 million for the three months ended June 30, 2024. Excluding the factors above, the net decrease in selling, general and administrative expenses was the result of cost containment and productivity initiatives.

Current wording

Selling, general and administrative expenses for the three months ended September 29, 2024 were $237.5 million, as compared to $250.2 million for the three months ended October 1, 2023, a decrease of $12.7 million, or 5%. As a percentage of revenue, selling, general and administrative expenses decreased and were 34.7% for the three months ended September 29, 2024, as compared to 37.3% for the three months ended October 1, 2023. Amortization of intangible assets decreased and was $53.2 million for the three months ended September 29, 2024, as compared to $55.2 million for the three months ended October 1, 2023. 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 added an incremental expense of $3.9 million for the three months ended September 29, 2024, as compared to $10.6 million for the three months ended October 1, 2023. Purchase accounting adjustments decreased expenses by $0.3 million for the three months ended September 29, 2024, which primarily consisted of a change in contingent consideration, as compared to increasing expenses by $0.7 million for the three months ended October 1, 2023. Restructuring and other costs, net, decreased expenses by $0.1 million for the three months ended September 29, 2024, as compared to increased expenses of $10.8 million for the three months ended October 1, 2023. The above decreases were partially offset by significant litigation matters and settlements, which added an incremental expense of $0.8 million for the three months ended September 29, 2024. Excluding the factors above, the decrease in selling, general and administrative expenses was the result of cost containment and productivity initiatives.

Previous wording

Selling, general and administrative expenses for the six months ended June 30, 2024 were $512.2 million, as compared to $515.6 million for the six months ended July 2, 2023, a decrease of $3.4 million, or 1%. As a percentage of revenue, selling, general and administrative expenses increased and were 38.2% for the six months ended June 30, 2024, as compared to 37.3% for the six months ended July 2, 2023. 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, added an incremental expense of $9.4 million for the six months ended June 30, 2024, as compared to $42.4 million for the six months ended July 2, 2023. Costs for significant environmental matters added an incremental expense of $1.1 million for the six months ended July 2, 2023. The above decreases were partially offset by an increase in amortization of intangible assets, which was $109.2 million for the six months ended June 30, 2024, as compared to $107.3 million for the six months ended July 2, 2023. Restructuring and other costs, net, increased and was $22.2 million for the six months ended June 30, 2024, as compared to $5.1 million for the six months ended July 2, 2023. Purchase accounting adjustments added an incremental expense of $6.4 million for the six months ended June 30, 2024, which primarily consisted of a change in contingent consideration, as compared to $1.2 million for the six months ended July 2, 2023. Significant litigation matters and settlements added an incremental expense of $6.3 million for thesix months ended June 30, 2024. Excluding the factors above, the net decrease in selling, general and administrative expenses was the result of cost containment and productivity initiatives.

Current wording

Selling, general and administrative expenses for the nine months ended September 29, 2024 were $749.7 million, as compared to $765.8 million for the nine months ended October 1, 2023, a decrease of $16.1 million, or 2%. As a percentage of revenue, selling, general and administrative expenses decreased and were 37.0% for the nine months ended September 29, 2024, as compared to 37.3% for the nine months ended October 1, 2023. Amortization of intangible assets decreased and was $162.4 million for the nine months ended September 29, 2024, as compared to $162.5 million for the nine months ended October 1, 2023. 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, added an incremental expense of $13.2 million for the nine months ended September 29, 2024, as compared to $53.0 million for the nine months ended October 1, 2023. Costs for significant environmental matters added an incremental expense of $1.1 million for the nine months ended October 1, 2023. The above decreases were partially offset by an increase in restructuring and other costs, net, which were $22.1 million for the nine months ended September 29, 2024, as compared to $15.9 million for the nine months ended October 1, 2023. Purchase accounting adjustments added an incremental expense of $6.1 million for the nine months ended September 29, 2024, which primarily consisted of a change in contingent consideration, as compared to $1.8 million for the nine months ended October 1, 2023. Significant litigation matters and settlements added an incremental expense of $7.1 million for thenine months ended September 29, 2024. Excluding the factors above, the decrease in selling, general and administrative expenses was the result of cost containment and productivity initiatives.

Previous wording

Research and development expenses for the three months ended June 30, 2024 were $48.1 million, as compared to $57.3 million for the three months ended July 2, 2023, a decrease of $9.1 million, or 16%. As a percentage of revenue, research and development expenses decreased and were 7.0% for the three months ended June 30, 2024, as compared to 8.1% for the three months ended July 2, 2023. The decrease in research and development expenses was primarily driven by 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 the three months ended June 30, 2024 as compared to $1.2 million for the three months ended July 2, 2023.

Current wording

Research and development expenses for the three months ended September 29, 2024 were $49.1 million, as compared to $53.0 million for the three months ended October 1, 2023, a decrease of $3.9 million, or 7%. As a percentage of revenue, research and development expenses decreased and were 7.2% for the three months ended September 29, 2024, as compared to 7.9% for the three months ended October 1, 2023. The decrease in research and development expenses was primarily driven by 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 the three months ended September 29, 2024 as compared to $1.2 million for the three months ended October 1, 2023.

Previous wording

Research and development expenses for the six months ended June 30, 2024 were $98.5 million, as compared to $113.9 million for the six months ended July 2, 2023, a decrease of $15.5 million, or 14%. As a percentage of revenue, research and development expenses decreased and were 7.3% for the six months ended June 30, 2024, as compared to 8.2% for the six months ended July 2, 2023. The decrease in research and development expenses was primarily driven by 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 $1.4 million for the six months ended June 30, 2024 as compared to $2.4 million for the six months ended July 2, 2023.

Current wording

Research and development expenses for the nine months ended September 29, 2024 were $147.6 million, as compared to $167.0 million for the nine months ended October 1, 2023, a decrease of $19.3 million, or 12%. As a percentage of revenue, research and development expenses decreased and were 7.3% for the nine months ended September 29, 2024, as compared to 8.1% for the nine months ended October 1, 2023. The decrease in research and development expenses was primarily driven by 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 $2.1 million for the nine months ended September 29, 2024 as compared to $3.5 million for the nine months ended October 1, 2023.

Previous wording

The decrease in interest income for the three months ended June 30, 2024, as compared to the three months ended July 2, 2023 was primarily due to a decrease in investments. Interest expense was lower for the three months ended June 30, 2024 as compared to the same period in prior year primarily due to a lower debt balance as a result of the repayment of senior unsecured notes that matured in September 2023.

Current wording

The decrease in interest income for the three months ended September 29, 2024, as compared to the three months ended October 1, 2023 was primarily due to a decrease in marketable securities and short-term investments. Interest expense was lower for the three months ended September 29, 2024 as compared to the same period in prior year primarily due to a lower debt balance as a result of the repayment of senior unsecured notes that matured in September 2023.

Previous wording

The increase in interest income for the six months ended June 30, 2024 as compared to the six months ended July 2, 2023 was primarily due to an increase in investments and higher interest rates. Foreign exchange losses and other expense, net, was lower for the six months ended June 30, 2024 as compared to the same period in prior year mainly due to a foreign exchange loss of $23.7 million that was recognized during the six months ended July 2, 2023, related to the cash proceeds from the sale of the Business that were held offshore.

Current wording

The increase in interest income for the nine months ended September 29, 2024 as compared to the nine months ended October 1, 2023 was primarily due to an increase in marketable securities and short-term investments and higher interest rates. Foreign exchange losses and other expense, net, was lower for the nine months ended September 29, 2024 as compared to the same period in prior year mainly due to a foreign exchange loss of $23.3 million that was recognized during the nine months ended October 1, 2023, related to the cash proceeds from the sale of the Business that were held offshore.

Previous wording

The provision for income taxes from continuing operations was $14.1 million for the three months ended June 30, 2024, as compared to $12.9 million for the three months ended July 2, 2023. The provision for income taxes from continuing operations was $19.9 million for the six months ended June 30, 2024, as compared to $17.5 million for the six months ended July 2, 2023.

Current wording

The provision for income taxes from continuing operations was $7.0 million for the three months ended September 29, 2024, as compared to $18.1 million for the three months ended October 1, 2023. The provision for income taxes from continuing operations was $26.9 million for the nine months ended September 29, 2024, as compared to $35.7 million for the nine months ended October 1, 2023.

Previous wording

The effective tax rate from continuing operations was 16.2% and 16.4% for the three and six months ended June 30, 2024, respectively, as compared to 18.1% and 17.4% for the three and six months ended July 2, 2023, respectively. The effective tax rate during the three months ended June 30, 2024 was lower primarily due to return to provision adjustments

Current wording

The effective tax rate from continuing operations was 6.9% and 12.1% for the three and nine months ended September 29, 2024, respectively, as compared to 35.8% and 23.5% for the three and nine months ended October 1, 2023, respectively. The effective tax rate for the three months ended September 29, 2024 was lower primarily due to a net favorable impact of return to provision adjustments in foreign locations of $7.1 million. The effective tax rate for the three months ended October 1, 2023 was higher primarily due to a discrete tax expense of $29.8 million related to unfavorable developments in respect of an uncertain tax position with a foreign tax authority, partially offset by a discrete tax benefit related to a favorable ruling from a foreign tax authority of $15.2 million. The effective tax rate forthe nine months ended September 29, 2024 was lower primarily due to a net favorable impact of return to provision adjustments in foreign locations of $10.8 million. The effective tax rate for the nine months ended October 1, 2023 was higher primarily due to a discrete tax expense of $28.7 million related to unfavorable developments in respect of an uncertain tax position with a foreign tax authority, partially offset by a discrete tax benefit related to a favorable ruling from a foreign tax authority of $15.2 million. We expect that the effective tax rate on continuing operations, before discrete items, will be approximately 20% during fiscal year 2024.

Previous wording

Segment operating income for the three months ended June 30, 2024 was $112.4 million, as compared to $127.8 million for the three months ended July 2, 2023, a decrease of $15.4 million, or 12%. Segment operating margin decreased 217 basis points in the three months ended June 30, 2024, as compared to the three months ended July 2, 2023, primarily due to lower sales volume and unfavorable product mix, partially offset by pricing actions and cost containment.

Current wording

Segment operating income for the nine months ended September 29, 2024 was $317.1 million, as compared to $371.4 million for the nine months ended October 1, 2023, a decrease of $54.3 million, or 15%. Segment operating margin decreased 364 basis points in the nine months ended September 29, 2024, as compared to the nine months ended October 1, 2023, primarily due to lower sales volume and unfavorable product mix, partially offset by pricing actions and cost containment.

Previous wording

Revenue for the three months ended June 30, 2024 was $378.0 million, as compared to $372.9 million for the three months ended July 2, 2023, an increase of $5.1 million, or 1%, which includes a 1% decrease in revenue attributable to unfavorable changes in foreign exchange rates. Theincrease in our Diagnostics segment revenue duringthe three months ended June 30, 2024 was driven by an increase of $12.4 million in immunodiagnostics revenue andan increase of $0.6 million in reproductive health revenue, partially offset bya decrease of $7.8 million in applied genomics revenue.

Current wording

Revenue for the three months ended September 29, 2024 was $383.3 million, as compared to $363.1 million for the three months ended October 1, 2023, an increase of $20.2 million, or 6%. Theincrease in our Diagnostics segment revenue duringthe three months ended September 29, 2024 was driven by an increase of $11.4 million in immunodiagnostics revenue andan increase of $9.6 million in reproductive health revenue, partially offset bya decrease of $0.7 million in applied genomics revenue.

Previous wording

Revenue for the six months ended June 30, 2024 was $725.1 million, as compared to $719.5 million for the six months ended July 2, 2023, an increase of $5.6 million, or 1%, which includes a 1% decrease in revenue attributable to unfavorable changes in foreign exchange rates. The increase in our Diagnostics segment revenue during the six months ended June 30, 2024 was driven by an increase of $27.0 million in immunodiagnostics revenue and an increase of $2.3 million in reproductive health revenue, partially offset by a decrease of $23.8 million in applied genomics revenue.

Current wording

Revenue for the nine months ended September 29, 2024 was $1,108.5 million, as compared to $1,082.6 million for the nine months ended October 1, 2023, an increase of $25.8 million, or 2%, which includes a 1% decrease in revenue attributable to unfavorable changes in foreign exchange rates. The increase in our Diagnostics segment revenue during the nine months ended September 29, 2024 was driven by an increase of $38.5 million in immunodiagnostics revenue and an increase of $11.9 million in reproductive health revenue, partially offset by a decrease of $24.5 million in applied genomics revenue.

Previous wording

Segment operating incomefor the three months ended June 30, 2024 was $97.9 million, as compared to $85.2 millionfor the three months ended July 2, 2023, an increase of $12.7 million, or 15%. Segment operating margin increased 304 basis points in the three months ended June 30, 2024, as compared to the three months ended July 2, 2023, primarily due to higher sales volume, pricing actions, cost containment, and productivity initiatives.

Current wording

Segment operating incomefor the three months ended September 29, 2024 was $101.4 million, as compared to $81.7 millionfor the three months ended October 1, 2023, an increase of $19.7 million, or 24%. Segment operating margin increased 395 basis points in the three months ended September 29, 2024, as compared to the three months ended October 1, 2023, primarily due to higher sales volume, cost containment, and productivity initiatives.

Previous wording

On March 13, 2023, we completed the sale (the “Closing”) of certain assets and the equity interests of certain entities constituting our Applied, Food and Enterprise Services businesses (the “Business”) to PerkinElmer Topco, L.P. (formerly known as Polaris Purchaser, L.P.) (the “Purchaser”), a Delaware limited partnership owned by funds managed by affiliates of New Mountain Capital L.L.C. (the “Sponsor”), for an aggregate purchase price of up to $2.45 billion. We received approximately $2.27 billion in cash proceeds before transaction costs. At Closing, we were entitled to an additional $75.0 million in proceeds payable in installments to commence upon our ceasing theuse of the PerkinElmer brand and related trademarks and transferring them to the Purchaser(“Brand Fee”). The discounted value of the$75.0 million was measured as $65.2 million and was included in the proceeds. During the second quarter of fiscal year 2024, we received the first installment of the Brand Fee. We expect to receive the remaining balance of the Brand Fee in installments through the first quarter of 2025. In addition, we are entitled to additional consideration of up to$150.0 million that is contingent on the exit valuation the Sponsor and its affiliated funds receive on a sale or other capital events related to the Business. The fair value of this element of consideration was determined to be$15.9 million and was included in the proceeds at Closing. We received approximately $138.5 million of cash for post-closing adjustments during the second quarter of fiscal year 2024.

Current wording

On March 13, 2023, we completed the sale (the “Closing”) of certain assets and the equity interests of certain entities constituting our Applied, Food and Enterprise Services businesses (the “Business”) to PerkinElmer Topco, L.P. (formerly known as Polaris Purchaser, L.P.) (the “Purchaser”), a Delaware limited partnership owned by funds managed by affiliates of New Mountain Capital L.L.C. (the “Sponsor”), for an aggregate purchase price of up to $2.45 billion. We received approximately $2.27 billion in cash proceeds before transaction costs. At Closing, we were entitled to an additional $75.0 million in proceeds payable in installments to commence upon our ceasing theuse of the PerkinElmer brand and related trademarks and transferring them to the Purchaser(“Brand Fee”). The discounted value of the$75.0 million was measured as $65.2 million and was included in the proceeds. During the second quarter of fiscal year 2024, we received the first installment of the Brand Fee. We expect to receive the remaining balance of the Brand Fee in installments through March 2025. In addition, we are entitled to additional consideration of up to$150.0 million that is contingent on the exit valuation the Sponsor and its affiliated funds receive on a sale or other capital events related to the Business. The fair value of this element of consideration was determined to be$15.9 million and was included in the proceeds at Closing. We received approximately $138.5 million of cash for post-closing adjustments during the second quarter of fiscal year 2024.

Previous wording

The Business is reported for all periods as discontinued operations in our condensed consolidated financial statements. The following table summarizes the results of discontinued operations which are presented as (Loss) income from discontinued operations in our condensed consolidated statements of operations:

Current wording

The Business is reported for all periods as discontinued operations in our condensed consolidated financial statements. The following table summarizes the results of discontinued operations which are presented as income (loss) from discontinued operations in our condensed consolidated statements of operations:

Previous wording

The results of discontinued operations during the three and six months ended July 2, 2023 include the results of the Business through March 13, 2023. During the three and six months ended June 30, 2024, we recognized $23.7 million and $25.5 million, respectively, of other expense primarily due to the adjustment to the receivable related to the post-closing adjustment and divestiture-related costs in gain on sale. During the three and six months ended July 2, 2023, we recognized $31.2 million and $31.7 million, respectively, of other expense primarily due to divestiture-related costs in gain on sale.

Current wording

The results of discontinued operations during the three and nine months ended October 1, 2023 include the results of the Business through March 13, 2023. During the nine months ended September 29, 2024, we recognized $25.1 million of other expense primarily due to the adjustment to the receivable related to the post-closing adjustment and divestiture-related costs in gain on sale. During the nine months ended October 1, 2023, we recognized $35.3 million and$36.0 millionof divestiture-related costs in gain on sale and selling, general and administrative expenses in discontinued operations, respectively.

Previous wording

We require cash to pay our operating expenses, make capital expenditures, make strategic acquisitions, service our debt and other long-term liabilities, repurchase shares of our common stock and pay dividends on our common stock. Our principal sources of funds are from our operations, borrowing capacity available under our senior unsecured revolving credit facility and access to debt markets. We anticipate that our internal operations will generate sufficient cash to fund our operating expenses, capital expenditures, smaller acquisitions, interest payments on our debt and dividends on our common stock. However, we expect to use external sources to satisfy the balance of our debt when due, any larger acquisitions and other long-term liabilities, such as contributions to our postretirement benefit plans. The sale of the Business generated approximately $2.27 billion in cash proceeds. We expect to continue to use these proceeds for a combination of funding upcoming debt maturities, opportunistic share repurchases and continued strategic and value creating acquisitions.

Current wording

We require cash to pay our operating expenses, make capital expenditures, make strategic acquisitions, service our debt and other long-term liabilities, repurchase shares of our common stock and pay dividends on our common stock. Our principal sources of funds are from our operations, borrowing capacity available under our senior unsecured revolving credit facility and access to debt markets. We anticipate that our internal operations will generate sufficient cash to fund our operating expenses, capital expenditures, smaller acquisitions, interest payments on our debt and dividends on our common stock, in the foreseeable future, including at least in the next 12 months. However, we expect to use external sources to satisfy the balance of our debt when due, any larger acquisitions and other long-term liabilities. The sale of the Business generated approximately $2.27 billion in cash proceeds. We expect to continue to use these proceeds for a combination of opportunistic share repurchases and continued strategic and value creating acquisitions.

Previous wording

At June 30, 2024, we had cash and cash equivalents of$1,248.1 million, of which $430.9 million was held by our non-U.S. subsidiaries, and we had $1.5 billion of borrowing capacity available under our senior unsecured revolving credit facility. We use a variety of cash redeployment and financing strategies to ensure that our worldwide cash is available in the locations in which it is needed. At June 30, 2024, we had investments in U.S. treasury securities with a carrying amount of$706.1 million whose proceeds upon maturity are intended to be utilized to repay our outstanding 0.850% Senior Unsecured Notes due in September 2024 (“2024 Notes”).

Current wording

At September 29, 2024, we had cash and cash equivalents of$1,229.8 million, of which $511.7 million was held by our non-U.S. subsidiaries, and we had$1.5 billion of borrowing capacity available under our senior unsecured revolving credit facility. We use a variety of cash redeployment and financing strategies to ensure that our worldwide cash is available in the locations in which it is needed.

Previous wording

In connection with the sale of the Business, we expect to receivethe remaining balance related to the Brand Fee of$65.6 million as of June 30, 2024, in installments through the first quarter of 2025.

Current wording

In connection with the sale of the Business, we expect to receivethe remaining balance related to the Brand Fee of$65.6 million as of September 29, 2024, in installments through March 2025.

Previous wording

On April 27, 2023, our Board of Directors(our“Board”)authorized us to repurchase shares of common stock for an aggregate amount up to $600.0 million under a stock repurchase program (the “Repurchase Program”). The Repurchase Program will expire on April 26, 2025, unless terminated earlier by the Board and may be suspended or discontinued at any time. During the three months ended June 30, 2024, we repurchased 188,532 shares of common stock under the Repurchase Program for an aggregate cost of $19.3 million. During the six months ended June 30, 2024, we repurchased 251,702 shares of common stock under the Repurchase Program for an aggregate cost of $25.8 million. As of June 30, 2024, $329.6 million remained available for aggregate repurchases of shares under the Repurchase Program. If we continue to repurchase shares, the Repurchase Program will be funded using our existing financial resources, including cash and cash equivalents, and our existing senior unsecured revolving credit facility.

Current wording

On April 27, 2023, our Board of Directors(our“Board”)authorized us to repurchase shares of common stock for an aggregate amount up to $600.0 million under a stock repurchase program (the “Repurchase Program”). During the three months ended September 29, 2024, we repurchased 1,283,609 shares of common stock under the Repurchase Program for an aggregate cost of $153.4 million. During the nine months ended September 29, 2024, we repurchased 1,535,311 shares of common stock under the Repurchase Program for an aggregate cost of $179.3 million. Subsequent to the third quarter of fiscal year 2024, we repurchased 284,985 shares of common stock under the Repurchase Program at an aggregate cost of $34.3 million. On October 24, 2024, the Repurchase Program was terminated by our Board and our Board authorized us to repurchase shares of common stock for an aggregate amount up to $1.0 billion under a new stock repurchase program (the “New Repurchase Program”). No shares remain available for repurchase under the Repurchase Program due to its termination. The New Repurchase Program will expire on October 23, 2026 unless terminated earlier by our Board and may be suspended or discontinued at any time. Subsequent to October 24, 2024, we repurchased 171,400 shares of common stock under the New Repurchase Program at an aggregate cost of $20.3 million. If we continue to repurchase shares, the New Repurchase Program will be funded using our existing financial resources, including cash and cash equivalents, and our existing senior unsecured revolving credit facility.

Previous wording

As of June 30, 2024, we may have to pay contingent consideration related to acquisitions with open contingency periods of up to $80.9 million. As of June 30, 2024, we have recorded contingent consideration obligations of $30.5 million, of which $12.5 million was recorded in accrued expenses and other current liabilities, and $18.0 million was recorded in long-term liabilities. The maximum earnout period for acquisitions with open contingency periods is 7.4 years from June 30, 2024, and the remaining weighted average expected earnout period at June 30, 2024 was 4.6 years.

Current wording

As of September 29, 2024, we may have to pay contingent consideration related to acquisitions with open contingency periods of up to $82.7 million. As of September 29, 2024, we have recorded contingent consideration obligations of $31.1 million, of which $13.0 million was recorded in accrued expenses and other current liabilities, and $18.1 million was recorded in long-term liabilities. The maximum earnout period for acquisitions with open contingency periods is 7.2 years from September 29, 2024, and the remaining weighted average expected earnout period at September 29, 2024 was 4.4 years.

Previous wording

Our pension plans have not experienced a material impact on liquidity or counterparty exposure due to the volatility and uncertainty in the credit markets. During the six months ended June 30, 2024, we contributed $3.4 million, in theaggregate, to pension plans outside of the United States, and expect to contribute anadditional $3.5 million by the end of fiscal year 2024. We could potentially have to make additional contributions in future periods for all pension plans. We expect to use existing cash and external sources to satisfy future contributions to our pension plans.

Current wording

Our pension plans have not experienced a material impact on liquidity or counterparty exposure due to the volatility and uncertainty in the credit markets. During the nine months ended September 29, 2024, we contributed $5.2 million, in theaggregate, to pension plans outside of the United States, and expect to contribute anadditional $1.7 million by the end of fiscal year 2024. We could potentially have to make additional contributions in future periods for all pension plans. We expect to use existing cash and external sources to satisfy future contributions to our pension plans.

Previous wording

We may from time to time, evaluate various opportunities to deploy capital towards the repayment or early retirement of our outstanding debt, including without limitation through the purchase of U.S. treasury securities whose proceeds upon maturity may be utilized to repay outstanding debt securities or used to fund our operations. We and our subsidiaries may from time to time, in our sole discretion, purchase, repay, redeem or retire any of our outstanding debt securities (including any publicly issued debt securities), in privately negotiated or open market transactions, by tender offer or otherwise, or extend or refinance any of our outstanding indebtedness.

Current wording

We and our subsidiaries may from time to time, in our sole discretion, purchase, repay, redeem or retire any of our outstanding debt securities (including any publicly issued debt securities), in privately negotiated or open market transactions, by tender offer or otherwise, or extend or refinance any of our outstanding indebtedness.

Previous wording

Operating Activities. Net cash provided by operating activities of ourcontinuing operations was $332.5 million for the six months ended June 30, 2024, as compared to $28.0 million for the six months ended July 2, 2023, an increase of $304.4 million, primarily due to higher income from continuing operations and less cash used for investments in working capital during the six months ended June 30, 2024 as compared to the six months ended July 2, 2023. The cash provided by operating activities for the six months ended June 30, 2024 was principally a result of income from continuing operations of $101.3 million, adjustments for non-cash charges aggregating to $261.6 million, including depreciation and amortization of $215.1 million, and a net cash decrease in working capital of $30.4 million. The cash provided by operating activities for the six months ended July 2, 2023 was principally a result of income from continuing operations of $83.5 million, and adjustments for non-cash charges aggregating to $271.1 million, including depreciation and amortization of $217.9 million, as well as net cash decrease in working capital of $326.5 million.

Current wording

Operating Activities. Net cash provided by operating activities of ourcontinuing operations was $489.5 million for the nine months ended September 29, 2024, as compared to $58.8 million for the nine months ended October 1, 2023, an increase of $430.7 million, primarily due to higher income from continuing operations and less cash used for investments in working capital during the nine months ended September 29, 2024 as compared to the nine months ended October 1, 2023. The cash provided by operating activities for the nine months ended September 29, 2024 was principally a result of income from continuing operations of $194.7 million, adjustments for non-cash charges aggregating to $373.7 million, including depreciation and amortization of $322.8 million, and a net cash decrease in working capital of $78.9 million. The cash provided by operating activities for the nine months ended October 1, 2023 was principally a result of income from continuing operations of $115.9 million, and adjustments for non-cash charges aggregating to $417.0 million, including depreciation and amortization of $326.2 million, as well as net cash decrease in working capital of $474.1 million.

Previous wording

Investing Activities. Net cash used in investing activitiesof our continuing operationswas $44.2 million for the six months ended June 30, 2024, as compared to $771.8 million for the six months ended July 2, 2023, a decrease of $727.6 million. For the six months ended June 30, 2024, the net cash used for capital expenditures was $39.9 million, as compared to $34.9 million for the six months ended July 2, 2023. During the six months ended June 30, 2024, purchases of investments and notes receivables were $4.3 million, as compared to $5.0 million for the six months ended July 2, 2023. During the six months ended July 2, 2023, purchases of investments in U.S. treasury securities amounted to $831.2 million, and net cash used for acquisitions was $0.7 million, which were partially offset by proceeds from maturity of U.S. treasury securities totaling $100.0 million.

Current wording

Investing Activities. Net cash provided by investing activitiesof our continuing operationswas $646.0 million for the nine months ended September 29, 2024, as compared to net cash used in investing activities of $346.4 million for the nine months ended October 1, 2023, an increase of $992.4 million. During the nine months ended September 29, 2024, proceeds from maturity of U.S. treasury securities were $710.0 million and proceeds from investments and notes receivables were $2.5 million. The cash provided by investing activities during the nine months ended September 29, 2024 was partially offset by net cash used for capital expenditures of $62.2 million, as compared to $57.3 million for the nine months ended October 1, 2023. During the nine months ended September 29, 2024, purchases of investments and notes receivables were $4.3 million, as compared to $6.0 million for the nine months ended October 1, 2023. During the nine months ended October 1, 2023, purchases of investments in U.S. treasury securities amounted to $831.2 million, and net cash used for acquisitions was $2.1 million, which were partially offset by proceeds from maturity of U.S. treasury securities totaling $550.0 million.

Previous wording

Financing Activities. Net cash used in financing activities was $61.5 million for the six months ended June 30, 2024, as compared to $341.5 million for the six months ended July 2, 2023, a decrease in net cash used in financing activities of $280.0 million. During the six months ended June 30, 2024, we made net payments of$11.2 millionon debts, as compared to $43.6 million during the six months ended July 2, 2023. The changes in both periods reflect our intentions to pay down debt, which we expect to continue throughout fiscal year 2024. During the six months ended June 30, 2024, we repurchased shares of our common stock for a total cost of $30.3 million, as compared to $273.3 million in the prior year period. We paid $8.7 million for acquisition-related contingent consideration during the six months ended June 30, 2024, as compared to $10.1 million in the prior year period. We paid $17.3 million in dividends for the six months ended June 30, 2024, as compared to $17.6 million for the six months ended July 2, 2023. The cash used in financing activities during the six months ended June 30, 2024 was partially offset by proceeds from the issuance of common stock under our stock plans of $6.0 million during the six months ended June 30, 2024, as compared to $3.2 million for the six months ended July 2, 2023.

Current wording

Financing Activities. Net cash used in financing activities was $935.2 million for the nine months ended September 29, 2024, as compared to $927.5 million for the nine months ended October 1, 2023, an increase in net cash used in financing activities of $7.7 million. During the nine months ended September 29, 2024, we made net payments of$722.3 millionon debts, as compared to $510.8 million during the nine months ended October 1, 2023. During the nine months ended September 29, 2024, we repurchased shares of our common stock for a total cost of $184.4 million, as compared to $384.0 million in the prior year period. We paid $8.8 million for acquisition-related contingent consideration during the nine months ended September 29, 2024, as compared to $10.1 million in the prior year period. We paid $25.9 million in dividends for the nine months ended September 29, 2024, as compared to $26.3 million for the nine months ended October 1, 2023. The cash used in financing activities during the nine months ended September 29, 2024 was partially offset by proceeds from the issuance of common stock under our stock plans of $6.2 million during the nine months ended September 29, 2024, as compared to $3.7 million for the nine months ended October 1, 2023.

Previous wording

At June 30, 2024, our 2024 Notes had$711.5 million in outstanding principal and we had investments in U.S. treasury securities with a carrying amount of $706.1 million whose proceeds upon maturity are intended to be utilized to repay the outstanding 2024 Notes. See Note 6, Debt, in the Notes to Condensed Consolidated Financial Statements and Note 13, Debt, to our audited consolidated financial statements in the 2023 Form 10-Kfor a detailed discussion of our borrowing arrangements.

Current wording

During the third quarter of fiscal year 2024, we paid in full$711.5 million of outstanding 0.850% Senior Unsecured Notes that became due in September 2024. See Note 6, Debt, in the Notes to Condensed Consolidated Financial Statements and Note 13, Debt, to our audited consolidated financial statements in the 2023 Form 10-Kfor a detailed discussion of our borrowing arrangements.

Previous wording

Our Board declared a regular quarterly cash dividend of $0.07 per share for the first and second quarters of fiscal year 2024 and in each quarter of fiscal year 2023. At June 30, 2024, we had accrued $8.6 million for dividends declared on April 25, 2024 for the second quarter of fiscal year 2024 that will be paid in August 2024. On July 25, 2024, we announced that our Board had declared a quarterly dividend of $0.07 per share for the third quarter of fiscal year 2024 that will be payable in November 2024. In the future, our Board may determine to reduce or eliminate our common stock dividend in order to fund investments for growth, repurchase shares or conserve capital resources.

Current wording

Our Board declared a regular quarterly cash dividend of $0.07 per share foreach of the first three quartersof fiscal year 2024 and in each quarter of fiscal year 2023. At September 29, 2024, we had accrued $8.5 million for dividends declared on July 25, 2024 for the third quarter of fiscal year 2024 that will be paid in November 2024. On October 24, 2024, we announced that our Board had declared a quarterly dividend of $0.07 per share for the fourth quarter of fiscal year 2024 that will be payable in February 2025. In the future, our Board may determine to reduce or eliminate our common stock dividend in order to fund investments for growth, repurchase shares or conserve capital resources.