Zacks_Analysts' Blog : PerkinElmer Adds Technical Skills - Analyst Blog

A global leader in human and environmental health, PerkinElmer (PKI) recently revealed that it has taken over Dexela Limited of the U.K. Dexela is a vendor of flat panel complimentary metal-oxide-semiconductor (“CMOS”) X-Ray detection know-how. 

By taking over Dexela, PerkinElmer gains further imaging expertise that comes to play in vital areas such as mammography, cardiology, dental CT and, off course, non destructive testing.

Following the integration of CMOS know-how with its indigenous knowledge base, PerkinElmer will provide its clients with two sister X-Ray detection technologies. CMOS technology is deemed to be a major advantage for Original Equipment Manufacturers (“OEM”).     

Dexela was set up in 2005 with a commitment to commercialize its CMOS know-how for rapid, low-intensity X-Ray imaging. Its CMOS products offer multiple advantages such as reliability, absence of image lag and reduced noise. The Dexela knowledge base is intended to produce high quality of images in different applications such as detecting anatomical defects or locating flaws in industrial objects.

Besides CMOS X-ray detection units, Dexela know-how includes its DexView Image Processing Software, the Dexela Mammography Workstation and its 3D Reconstruction Engine Software.

PerkinElmer reported first-quarter fiscal 2011 adjusted (excluding one-time expenses) earnings per share of 34 cents, beating the Zacks Consensus Estimate of 30 cents. Revenues from continuing operations came in at $447.9 million, also sailing past the Zacks Consensus Estimate.

PerkinElmer continues to perform well across all of its product lines. It holds either number one or two positions in several select areas in analytical tools and diagnostics.

The company has an exposure to China in life science tools, which is another positive. Further, the company continues to build on its next-generation sequencing service through a series of acquisitions.

In the end, however, we believe the stock’s valuation fully incorporates its incremental growth opportunity. Furthermore, PerkinElmer’s overall portfolio strategy remains foggy. PerkinElmer competes with Thermo Fisher Scientific (TMO) among others. We currently have a Neutral rating on the stock.