PE Biosystems Reports 24 Percent Increase in Fourth Quarter Earnings Per Share to 26 Cents; Revenues Rise 21 Percent, Operating Profit Increases 20 Percent.

Business/Medical Editors

FOSTER CITY, Calif.--(BW HealthWire)--July 27, 2000

PE Biosystems Group (NYSE: PEB), a PE Corporation business doing business as Applied Biosystems, today reported that income from continuing operations in the fourth quarter ended June 30, 2000 increased 26 percent to $56.6 million, or $0.26 per diluted share, from $45.0 million, or $0.21 per diluted share, in the prior year.

Income statement comparisons exclude the results of the Group's interest in Tecan, which was sold during the fourth quarter of fiscal 1999, and special items incurred in fiscal 1999 and 2000.

Total net revenues for the Group for the fourth quarter increased 21 percent over the year-earlier quarter to $391.8 million. Revenues for the fourth quarter of 2000 reflect a $4.6 million negative effect of foreign currency translation. Fourth quarter operating income was $77.7 million, a 20 percent increase over the comparable year-earlier quarter.

For the twelve months ended June 30, 2000, the Group reported net revenues of $1.4 billion, 24 percent higher than in the previous year. Income from continuing operations was $186.2 million, a 35 percent increase. On a per share basis, income from continuing operations was $0.86 per diluted share in fiscal 2000 compared to $0.67 per diluted share in fiscal 1999, a 28 percent gain. Operating income in fiscal 2000 of $260.3 million was 32 percent higher than in fiscal 1999, and operating profit margin was 18.8 percent compared to 17.6 percent.

Special items in the quarter were an after-tax gain of $20.1 million from the sale of certain equity investments and real estate. This gain was offset by an after-tax expense of $20.1 million, reflecting the acceleration of certain long-term compensation programs based on the attainment of performance targets as well as acquisition-related expenses. For the future, these incentive…