PerkinElmer Earnings Call Nuggets: Environmental Margins and Q2 Recovery
Isaac Ro – Goldman Sachs: Just want to talk a little bit about margins. I’m wondering if you could put some more color behind in the margins this quarter specifically with Environmental; what was going on there. Was there something in the way of FX versus sort of other sort of transient factors and maybe – was there something maybe more structural; just if you can kind of separate those two, that would be helpful?
Robert F. Friel – Chairman and CEO: Well, let me start off with sort of the margins overall and then Andy can drill into the specific Environmental. But the way I would think about our margins is, it was probably three things that drove the reduction year-over-year. One is, we talked about investments and those are both productivity and related to growth, and that’s probably about a third of it. I think we did see – continue to see some pricing and mix pressures, and obviously, that was planned. Probably about a third of that was probably mostly related to the mix and those types of things. And then…
Frank A. Wilson – SVP and CFO: Yeah, and then the third thing, we have investments, we had the mix, and…
Robert F. Friel – Chairman and CEO: License, yeah, the year-over-year – there was some licensing year-over-year. So, about a third on the licensing, about a third on price and mix, and about a third on investments…
Isaac Ro – Goldman Sachs: Then, just if you could remind us in the back half of the year what’s embedded in your guidance in terms of the geographic outlook in the U.S., Europe, and sort of rest of world; just kind of given the volatility in the macro picture, what you guys are assuming would be helpful?
Robert F. Friel – Chairman and CEO: So, I think we’re assuming pretty similar geographic growth than what we’ve experienced in the first half of the year. I would say, the only difference is maybe a little moderation in China, and as I mentioned in the prepared remarks, we think there is going to be a little moderation probably more impact on the eastern side as compared to the western. So we’re anticipating a little bit of moderation there. I would say Europe continues to be sort of flat in our view and modest growth in the U.S. So, again, the back half we are assuming similar geographic growth patterns.
Daniel Brennan – Morgan Stanley: First question is on the three businesses that were the culprits of the first quarter shortfall. I know you gave some color about not only the growth this quarter but the expectation. Maybe could you give a little more color about how we should think about those businesses progressing kind of in the back half of the year implicit in your guidance?
Robert F. Friel – Chairman and CEO: Yeah. So, first of all, in in vivo, as we mentioned, we saw good recovery in the second quarter. We think a lot of that was just a make-up for the first quarter, although I think the team did a terrific job because we continued to see some pressure in the U.S. from sequestration, so the majority of the growth occurred actually in Europe and Asia. But as Andy said, we feel good about the pipeline there. I would say, our expectations for in vivo is probably mid-single-digit growth for the rest of the – or the back half of the year. I think in the case of Japan, we saw that recover from mid-teens to low-single. We think with some of the release of the supplemental budget in Japan, we could probably return that to low to mid-single growth in the back half. And we’re continuing to be fairly conservative in Europe. Although we did see positive growth in Europe in the second quarter, we do have more difficult comparisons going into the third. And so, I think we’re assuming Europe will be flat to down slightly…
Daniel Brennan – Morgan Stanley: Then, Andy in terms of the guidance Q3, Q4, just the way you chase out, I mean is it fair to assume – I know your third quarter comp from last year is certainly a lot more difficult, I know you discussed some other factors in terms of the shift between Q3 and Q4, maybe can you just go through that a little more again, like, is it really just a tougher comp for kind of the zero to 2% in Q3, or just maybe go through the factors again, how we should think about the back half of the year progression?
Frank A. Wilson – SVP and CFO: Well, I think Q3 is a more difficult comp than Q4. We also talked about the med imaging shift on the top line. So I think if you are looking at flat to low single-digit, you’re going to see a little bit of sequential improvement in the fourth quarter. I think if you look at from a margin expansion, the rollout of our initiatives in some of the restructuring that we’ve just completed, you will see margin expansion in both periods but more weighted towards the fourth quarter.
Daniel Brennan – Morgan Stanley: Maybe one more quick one. Rob, is your expectation ’14 with some of the new product initiatives that you have ongoing. I know there’s no ’14 guidance, but you previously were talking about an accelerating growth rate in ’14. Any high-level color about that – how we should be thinking about the impact of these new products?
Robert F. Friel – Chairman and CEO: We continue to feel good about our ability to improve growth going into ’14, and one of the things we wanted to do in Q2 when we took the restructuring actions was not only to respond to what we saw was more difficult sort of macroeconomic conditions but more importantly, we wanted to create the flexibility to continue to invest in growth. So I think I feel good about the fact that we – I think we’ve given ourselves the ability to continue to fund the growth initiatives. So again, a lot of it will be dependent on macroeconomic conditions but I do feel good about our ability to get the new products out into the marketplace, and hopefully to achieve increasing organic revenue growth as we get into ’14.
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