Caliper Life Sciences Reports Third Quarter 2009 Results

- IVIS(R) Imaging and LabChip(R) GX Biologicals Applications Drive Growth -

HOPKINTON, Mass., Nov. 9 /PRNewswire-FirstCall/ -- Caliper Life Sciences, Inc.
(Nasdaq: CALP) today reported results for its third quarter ended September
30, 2009. GAAP revenues increased by 4% to $32.2 million, from non-GAAP
revenues of $31.0 million in the same period of 2008, which represents GAAP
revenue of $34.0 million in the third quarter of 2008 reduced by $3.0 million
for the impact of divested product lines. The overall increase in revenues
was led by strong performance of the Company's IVIS Imaging and LabChip
product families. Foreign currency changes did not have a significant impact
on total revenue in the quarter. The Company achieved positive operating net
cash flows of $2.8 million in the quarter as a result of effective inventory
management coupled with year-to-date improved bottom-line performance.

Third Quarter 2009 Results

-- Summary revenue performance:
-- Research: Revenue from research product families increased by 7%
during the quarter (on a non-GAAP basis, adjusted for
divestitures),
including a 10% increase in microfluidic revenues and 5% increase
in
automation revenues. The increase in microfluidic revenues was
primarily driven by LabChip GX instrument sales, which increased
90%, and microfluidic chip revenues, which increased 29%, compared
to the third quarter in 2008. These increases were partially
offset
by a 37% decline in microfluidic license revenues due to
non-recurring milestone payments received in the third quarter in
2008.
-- Imaging: Total imaging revenues increased by 15% during the
quarter
driven by continued strong adoption of IVIS instruments and
associated reagents which resulted in product revenue growth of
17%
in the quarter. Total organic revenue growth for imaging was 17%
during the quarter, after eliminating approximately 2% change due
to
the impact of unfavorable foreign currency movements.
-- CDAS: Total CDAS services group revenues decreased by 26% during
the quarter. The decline resulted primarily from lower in vitro
government services revenues, including the effect of the delay in
receiving the next Environmental Protection Agency (EPA) ToxCast
project task order, which was recently awarded to CDAS in the
fourth
quarter.
-- The Company generated positive net cash flow from operations of $2.8
million during the quarter and $0.2 million on a year-to-date basis,
resulting in $26.5 million of cash, cash equivalents and marketable
securities as of September 30, 2009.

-- The Company reported third quarter adjusted net loss per share of
$0.01,
equal to adjusted net loss per share for the same period in 2008. On
a
year-to-date basis, the Company reported a 29% decrease in adjusted
net
loss per share compared to the nine-month period ended September 30,
2008.

See "Use of Non-GAAP Financial Measures" below.

Recent Business Highlights

-- Shipped a record 35 LabChip GX instruments in the third quarter driven
by biologicals, vaccines, and nucleic acid applications, and surpassed
100 installed GX units since its launch in the third quarter of 2008.
Each installed unit is expected to yield approximately 30% of the
original equipment price in annual consumable sales and services.
-- Presented the benefits of LabChip GX for high throughput
characterization of biologicals and vaccines to a panel of reviewers
at
the United States Food and Drug Administration (FDA) on October 26,
2009, together with participants from Pfizer (PFE), Amgen (AMGN), and
Biogen Idec (BIIB).
-- Completed third major "Innovation for Experimentation" highlight
forum,
which was attended by pharma/biotech customers from throughout Europe.

The most recent forum, hosted by Novartis Pharmaceutical in Basel,
Switzerland on October 22, 2009, focused on accelerating small
molecule
research programs using Caliper's LabChip EZ Reader® instrument.
-- Launched IVIS Lumina XR, which combines fluorescence, bioluminescence
and X-ray in one imaging solution for pre-clinical research, at an
IVIS
industry work session that attracted over 150 participants at the
World
Molecular Imaging Congress (WMIC) in Montreal, Canada.
-- Expanded the suite of reagents supporting the IVIS family of in vivo
imaging instruments with the introduction of XenoLight Rediject
reagents.

-- Received $1.8 million Phase II task order commitment from the EPA on
November 3, 2009. This initial Phase II task order will cover the
screening of up to 700 compounds against Caliper's ToxCast panel of
assays, which was recently expanded to 275 total assays by the
addition
of 40 new kinase and other enzyme assays performed on the LabChip EZ
Reader instrument. The start of work under this latest task order is
pending receipt of the next set of compounds for testing from the EPA,
and is expected to begin in the first quarter of 2010.

"With solid momentum with IVIS imaging and LabChip sales, we believe our
strong performance will continue into the fourth quarter and 2010," commented
Kevin Hrusovsky, Caliper's president and CEO. "We have delivered positive
operating cash flows year-to-date and are targeting positive cash flows for
full year 2009. Meeting this goal would exceed our previously stated
expectations by a full year. This has been accomplished despite delays in the
next EPA task order. With the initial Phase II task order now in hand, we are
anticipating strong double-digit growth for CDAS in 2010. Given the
challenging economic environment, we are pleased with our performance this
year: strong revenue growth, margin improvements, faster inventory turns and
expense reductions have enabled above-expectation cash performance and an
improving financial outlook. Most importantly, we have a robust pipeline of
high margin new products to fuel future growth. All in all, an exceptionally
satisfying year for our company and employees."

2009 Guidance

The Company projects full year revenue of $127 to $129 million, which
represents organic revenue growth of 5 to 7% over 2008 pro forma revenue. In
addition, the Company reaffirmed its expectation to achieve positive earnings
before interest, taxes, depreciation, amortization and stock-based
compensation over the second half of 2009 and for the full year 2010.

Caliper reported that its revenue outlook for the fourth quarter of 2009 is
$34.5 to $36.5 million compared to pro forma revenue (net of divestitures) of
$34.6 million in the fourth quarter of 2008.

Use of Non-GAAP Financial Measures

Caliper supplements its GAAP financial reporting with certain non-GAAP
financial measures. Reconciliations of Caliper's GAAP to non-GAAP revenue and
earnings per share are provided at the end of this release under
"Reconciliation of GAAP to Non-GAAP Financial Measures."

Revenue growth percentages in this press release are derived from non-GAAP
revenues which exclude the impact of revenue from product lines which were
divested in the fourth quarter of 2008. The term "organic" revenue growth
eliminates the impact of foreign currency movements during the quarter to
reflect growth percentages on a constant currency basis. Caliper believes that
providing this additional information enhances investors' understanding of the
financial performance of Caliper's operations and increases the comparability
of its current financial statements to prior periods.

Caliper will discuss its third quarter results in a conference call to be held
today, November 9, 2009 at 9:00 a.m. ET. To participate in the call, please
dial 888.713.4209 five to ten minutes prior to the call and use the
participant passcode 32507029. International callers can access the call by
dialing 617.213.4863 and entering the same passcode. You may also
pre-register for the call at
https://www.theconferencingservice.com/prereg/key.process?key=PKV9RF3HB.

A live webcast of the call can be accessed at www.fulldisclosure.com or on the
Caliper website at www.caliperLS.com in the Events section of the Investor
Relations page. A webcast replay of the call will remain available until
Caliper's earnings call for the fourth quarter of 2009.

Telephone replays of the conference call will be available approximately two
hours after the completion of the call. To access a telephone playback of the
proceedings from November 9 through November 16, dial 888.286.8010 and use the
participant passcode of 93641840. International callers can access the
playback by dialing 617.801.6888 and using the same participant passcode.

About Caliper Life Sciences

Caliper Life Sciences is a premier provider of cutting-edge technologies
enabling researchers in the life sciences industry to create life-saving and
enhancing medicines and diagnostic tests more quickly and efficiently.
Caliper is aggressively innovating new technology to bridge the gap between in
vitro assays and in vivo results, enabling the translation of those results
into cures for human disease. Caliper's portfolio of offerings includes
state-of-the-art microfluidics, lab automation and liquid handling, optical
imaging technologies, and discovery and development outsourcing solutions. For
more information please visit www.caliperLS.com.

The statements in this press release regarding future events, including
statements regarding Caliper's expectations regarding future cash flows and
its ability to attain positive operating cash flows for the fourth quarter and
on a full year basis in 2009, its ability to achieve positive earnings before
interest, taxes, depreciation, amortization and stock-based compensation over
the second half of 2009 and for the full year 2010, Caliper's expected revenue
outlook for the 2009 full year and for the fourth quarter ending December 31,
2009, Caliper's expected organic revenue growth rates for the full year,
Caliper's belief that the strong performance of its imaging and microfluidic
technology products will continue into the fourth quarter, Caliper's belief
that its CDAS business unit will achieve double-digit growth in 2010, and
Caliper's belief that each installed LabChip GX unit will yield approximately
30% of the original equipment price in annual consumable sales and services
are "forward-looking statements" within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended. These statements are subject to
risks and uncertainties that could cause actual results to differ materially
from those contemplated by the forward-looking statements as a result of a
number of factors, including that Caliper's expectations regarding demand for
its products and services may not materialize if capital spending by Caliper's
customers declines, if competitors introduce new competitive products, or if
Caliper is unable to convince potential customers regarding the superior
performance of its drug discovery and imaging systems and other products, and
unanticipated delays may be encountered in Caliper's receipt from the EPA of
compounds for testing under the recently received Phase II task order for the
EPA's ToxCast screening program. Further information on risks faced by Caliper
are detailed under the caption "Risks Related To Our Business" in Caliper's
Annual Report on Form 10-K for the year ended December 31, 2008. Our filings
are available on a web site maintained by the Securities and Exchange
Commission at http://www.sec.gov. Caliper does not undertake any obligation
to update forward-looking or other statements in this release or the
conference call.

NOTE: Caliper, IVIS, LabChip, and EZ Reader are registered trademarks of
Caliper Life Sciences, Inc. ToxCast is a trademark in the United States
Environmental Protection Agency.

CALIPER LIFE SCIENCES, INC.
SELECTED FINANCIAL INFORMATION
(unaudited)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)

Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
Revenue:
Product revenue $20,952 $19,965 $60,760 $59,655
Service revenue 8,200 10,563 23,761 28,860
License fees and contract
revenue 3,021 3,513 8,234 8,844

Total revenue 32,173 34,041 92,755 97,359

Costs and expenses:
Cost of product revenue 11,947 11,983 36,030 36,321
Cost of service revenue 5,393 6,590 16,431 19,134
Cost of license revenue 356 588 1,057 1,154
Research and development 4,221 4,953 13,406 15,526
Selling, general and
administrative 10,786 10,256 33,235 36,945
Amortization of intangible
assets 1,548 1,742 4,662 6,721
Restructuring charges
(credits), net 1,044 2,686 1,096 2,666

Total costs and expenses 35,295 38,798 105,917 118,467

Operating loss (3,122) (4,757) (13,162) (21,108)
Interest expense, net (144) (227) (535) (584)
Other expense, net (85) (411) (202) (92)
Provision for income taxes (26) (1) (176) (229)

Net loss $(3,377) $(5,396) $(14,075) $(22,013)

Net loss per share, basic and
diluted $(0.07) $(0.11) $(0.29) $(0.46)
Shares used in computing net
loss per common share, basic
and diluted 49,013 48,378 48,816 47,987

Reconciliation of GAAP to Non-GAAP Financial Measures

Adjusted Basic Earnings per Share (see explanation of adjustments below)

Three Months Ended Nine Months Ended
September 30, September 30,
------------- --------------
2009 2008 2009 2008
---- ---- ---- ----
GAAP EPS - Basic $(0.07) $(0.11) $(0.29) $(0.46)
Adjustments:
Acquisition related intangible
amortization (1) 1,548 1,742 4,662 6,721
Restructuring and severance costs
(2) 1,107 2,997 1,194 3,668
----- ----- ----- -----
Total Adjustments $2,655 $4,739 $5,856 $10,389

Per share effect of adjustments 0.06 0.10 0.12 0.22

Adjusted earnings per share - Basic $(0.01) $(0.01) $(0.17) $(0.24)

We use the term "adjusted earnings per share" or "adjusted EPS" to refer to
GAAP earnings per share excluding amortization of intangible assets, and
restructuring and severance costs. Adjusted earnings per share is calculated
by subtracting the total per share effect of these adjustments from GAAP EPS.

The adjustments are as follows:

1. We exclude amortization of intangible assets from this measure because
we
believe intangible asset amortization charges do not represent what our
management and our investors believe are the costs of developing,
producing, supporting and selling our products and the costs to support
our internal operating structure.

2. We exclude restructuring and severance costs from this measure because
they tend to occur as a result of specific events such as acquisitions,
divestitures, repositioning our business or other unusual events that
could make comparisons of long-range trends difficult for management or
investors and could distort performance measures involving our internal
investments and the costs to support our operating structure.

Reconciliation of GAAP to Non-GAAP Financial Measures (continued)

Non-GAAP Revenues for the Three Months Ended September 30, 2009

Three Months Ended September 30,
Non-GAAP
GAAP Adjustments (1) Non-GAAP
(in thousands)

2009 2008 2009 2008 2009 2008 GAAP Non-GAAP
% Chg % Chg

Research $15,708 $17,684 $ - $(3,002) $15,708 $14,682 (11)% 7%
Imaging 12,189 10,592 - - 12,189 10,592 15 % 15%
Services
(CDAS) 4,276 5,765 - - 4,276 5,765 (26)% (26)%
Total
revenue $32,173 $34,041 $ - $(3,002) $32,173 $31,039 (5)% 4%

Non-GAAP Revenues for the Nine Months Ended September 30, 2009

Nine Months Ended September 30,
Non-GAAP
GAAP Adjustments (1) Non-GAAP
(in thousands)

2009 2008 2009 2008 2009 2008 GAAP Non-GAAP
% Chg % Chg
Research $44,310 $50,889 $(343) $(9,194) $43,967 $41,695 (13)% 5%
Imaging 35,837 31,382 - - 35,837 31,382 14% 14%
Services
(CDAS) 12,608 15,088 - - 12,608 15,088 (16)% (16)%
Total
revenue $92,755 $97,359 $(343) $(9,194) $92,412 $88,165 (5)% 5%

(1) For purposes of comparing growth rates for each of the three principal
areas of our business, the above non-GAAP table reconciliations exclude
revenues related to the PDQ and AutoTrace product lines divested in
November 2008. The $343 of 2009 revenue included remaining first quarter
revenues associated with the AutoTrace product lines. The Company
anticipates no further revenue from either of the former PDQ or AutoTrace
product lines in 2009.

CALIPER LIFE SCIENCES, INC.
SELECTED FINANCIAL INFORMATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

September 30, December 31,
2009 2008
(unaudited) *
Assets
Current assets:
Cash, cash equivalents and marketable
securities $26,520 $26,701
Accounts receivable, net 23,698 27,396
Inventories 13,189 17,579
Other current assets 2,225 2,481

Total current assets 65,632 74,157
Property and equipment, net 9,656 10,735
Intangible assets, net 29,725 34,399
Goodwill 22,905 22,905
Other assets 731 882

Total assets $128,649 $143,078

Liabilities and stockholders' equity
Current liabilities $37,171 $39,367
Credit facility 14,900 14,900
Other long-term obligations 10,538 12,073
Stockholders' equity 66,040 76,738

Total liabilities and stockholders'
equity 128,649 $143,078

*Note: Derived from audited financial statements for the year ended
December 31, 2008.

SOURCE Caliper Life Sciences, Inc.

Peter McAree, Caliper Life Sciences, +1-508-497-2215; Media, Melissa Bruno or
Kristin Villiotte, both of Schwartz Communications, +1-781-684-0770