PerkinElmer Inc. (PKI), a company focused on health and the environment, recently revealed that the App Store now carries the Chem3D and ChemDraw apps with the company’s Flick-to-Share expertise. The two apps are the first of a number of mobile apps that the company is creating for its electronic lab notebook.
ChemDraw is a conventional drawing tool for chemists engaged in research and boasts of a million users. It is also used in the publishing business. The ChemDraw app has been available to scientists since 1986 and permits them to draw molecules. It is available at an introductory product for $9.99 at the App Store.
The Chem3D app comprises a three dimension molecular viewing tool which permits the user to manage 3D structures. This app is highly flexible and allows the study of 3D structures which leads to a sound understanding of molecular properties. It is available without charge at the App Store.
The ChemDraw and Chem3D software contain Flick-to-Share expertise, which is awaiting patent. Flick-to-Share is a tool used for sharing molecular structures between mobile instruments.
PerkinElmer has established itself as a market leader, particularly in the genetic screening segment, and holds one of top two market share positions in several important subsets of the life sciences technology and genetic screening businesses.
PerkinElmer, however, operates in a highly competitive industry characterized by rapid technological change and evolving industry standards. As a result, the company must make large investments in R&D in order to retain a competitive pipeline.
The company has cut guidance for 2013 following drop in sales of some units in the first quarter. While PerkinElmer has made several acquisitions, the strategy has inherent risks and it remains a collection of diverse businesses. Further, restructuring charges are expected to grow in 2013. Also, the overall portfolio strategy remains hazy and M&A policy unclear.
PerkinElmer's exposure to poor end market visibility might result in a relatively unattractive risk-reward trade-off for the stock. However, the company’s operations, both sales and manufacturing, are diversified on a geographic basis. It has emerged as a rapidly evolving company.
The stock carries a Zacks Rank #5 (Strong Sell). We are more positive about Cyberonics Inc. (CYBX) which carries a Zacks Rank #1 (Strong Buy). We are also positive about Becton, Dickinson and Company (BDX) and Conmed Corporation (CNMD), each of which carry a Zacks Rank #2 (Buy) and are expected to do well.
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