BILLERICA, Mass.--(BUSINESS WIRE)--Oct. 29, 2009--
Bruker Corporation (NASDAQ: BRKR) today reported financial results for
the third quarter ended September 30, 2009.
Third Quarter 2009 Highlights
-
Revenue $265.1 million
-
GAAP Net Income $16.4 million
-
GAAP EPS $0.10 per diluted share
-
Free cash flow $14.2 million
Financial Results
In the third quarter of 2009, revenue was $265.1 million, an increase of
9.5% compared to revenue of $242.1 million in the third quarter of 2008.
Excluding the effect of foreign currency translation, third quarter 2009
revenue increased 11.4% year-over-year. GAAP net income for the third
quarter of 2009 was $16.4 million, or $0.10 per diluted share, compared
to GAAP net income of $17.8 million, or $0.11 per diluted share, in the
third quarter of 2008. Included in GAAP EPS in the third quarter of 2008
were (i) one-time tax benefits of $0.07 per diluted share and (ii)
non-cash stock-based compensation expense of ($0.01) per diluted share.
Included in GAAP EPS in the third quarter of 2009 was non-cash
stock-based compensation expense of ($0.01) per diluted share.
For the nine months ended September 30, 2009, revenue was $748.1
million, a decrease of 5.5% compared to revenue of $791.9 million in the
first three quarters of 2008. Excluding the effect of foreign currency
translation, revenue for the nine months ended September 30, 2009
increased by 0.5% year-over-year. GAAP net income for the nine months
ended September 30, 2009 was $37.7 million, or $0.23 per diluted share,
compared to GAAP net income of $38.7 million, or $0.23 per diluted
share, for the nine months ended September 30, 2008. Included in GAAP
EPS for the nine months ended September 30, 2008 were (i) one-time tax
benefits of $0.07 per diluted share, (ii) Bruker BioSpin acquisition
related expenses of ($0.04) per diluted share, and (iii) non-cash
stock-based compensation expense of ($0.02) per diluted share. Included
in GAAP EPS for the nine months ended September 30, 2009 was non-cash
stock-based compensation expense of ($0.02) per diluted share.
Free cash flow was $14.2 million in the third quarter of 2009, and $58.4
million for the nine months ended September 30, 2009, compared to a use
of cash of ($11.9) million for the third quarter of 2008, and a use of
cash of ($20.9) million for the nine months ended September 30, 2008.
During the third quarter of 2009, Bruker repaid $19.3 million of debt,
ending the quarter with cash and cash equivalents of $150.5 million, and
net debt of $0.8 million, compared to net debt of $127.6 million at the
end of the third quarter of 2008.
Comment and Outlook
Frank Laukien
, Bruker’s President and CEO, commented: “We are pleased
with our double-digit currency-adjusted third quarter 2009
year-over-year revenue growth, with our solid sequential improvements in
revenue, operating margins and net income during the first three
quarters of 2009, and with our strong free cash flow year-to-date. Our
third quarter 2009 operating income increased more than 70%
year-over-year, and our operating margin improved sequentially by 180
basis points, when compared to the second quarter 2009.”
Dr. Laukien continued: “During the third quarter we have seen positive
sequential trends in bookings throughout the company, even in the
divisions with a greater industrial markets exposure. We have also begun
to see robust bookings from our academic and government customers who
are benefiting from various global government stimulus programs. While
we expect a strong fourth quarter of 2009, we believe that most of the
anticipated positive revenue and margin effects from global stimulus
orders will be reflected in Bruker’s financial results in 2010 and 2011.”
Segment Information
After Bruker’s acquisition of the ACCEL Research Instruments business on
April 1, 2009, starting with the second quarter of 2009, Bruker has
established two new reportable segments:
1) The Bruker Scientific Instruments (BSI) segment which consists of the
four divisions Bruker AXS, Bruker BioSpin, Bruker Daltonics and Bruker
Optics.
2) The Bruker Energy & Supercon Technologies (BEST) segment which
combines the acquired ACCEL RI business, and the superconductor and
supercon devices business, which was previously called Bruker Advanced
Supercon, Inc.
Revenue in the BSI segment for the nine months ended September 30, 2009
was $716.5 million, compared to BSI revenue of $767.3 million for the
nine months ended September 30, 2008. Excluding the effects of foreign
currency translation, for the first nine months of 2009, BSI revenue
decreased by 1.0% year-over-year. BSI net income for the nine months
ended September 30, 2009 was $41.7 million, compared to $45.3 million
for the nine months ended September 30, 2008. BSI earnings per diluted
share for the nine months ended September 30, 2009 were $0.25, compared
to $0.27 for the nine months ended September 30, 2008.
Revenue in the BEST segment for the nine months ended September 30, 2009
was $36.0 million, compared to BEST revenue of $32.5 million for the
nine months ended September 30, 2008. Excluding the effects of foreign
currency translation, for the first nine months of 2009, BEST revenue
increased by 23.4% year-over-year. BEST net loss for the nine months
ended September 30, 2009 was ($5.0) million, compared to a net loss of
($6.8) million for the nine months ended September 30, 2008. BEST loss
per diluted share for the nine months ended September 30, 2009 was
($0.03), compared to ($0.04) for the nine months ended September 30,
2008.
Following at the end of this press release are reconciliations of
certain non-GAAP measures presented in this release.
USE OF NON-GAAP FINANCIAL MEASURES
In addition to the financial measures prepared in accordance with
generally accepted accounting principles (GAAP), we use the measures of
non-GAAP revenue, non-GAAP net income, non-GAAP EPS by reportable
segment, and non-GAAP free cash flow for Bruker Corporation. We believe
that such non-GAAP measures help investors to gain a better
understanding of our core operating results and future prospects,
consistent with how management measures and forecasts the Company’s
performance, especially when comparing such results to previous periods
or forecasts. However, the non-GAAP financial measures included in this
press release are not meant to be a better presentation or a substitute
for results of operations prepared in accordance with GAAP.
Reconciliations of such non-GAAP financial measures to the most directly
comparable GAAP financial measures are set forth in the accompanying
table. Specifically:
-
Reconciliation of BSI and BEST reportable segments to the consolidated
results of Bruker Corporation for the nine months ended September 30,
2009 and 2008
-
Reconciliation of Free Cash Flow
EARNINGS CONFERENCE CALL
Bruker Corporation will host an operator-assisted earnings conference
call at 9:00 a.m. Eastern Daylight Time on Thursday, October 29, 2009.
To listen to the webcast, investors can go to http://ir.bruker.com
and click on the live web broadcast symbol. The webcast will be
available through the Company web site for 30 days. Investors can also
listen and participate on the telephone in the US and Canada by calling
800-688-0796, or +1-617-614-4070 outside the US and Canada. Investors
should refer to the Bruker Earnings Call. A telephone replay of the
conference call will be available one hour after the conference call by
dialing 888-286-8010 in the US and Canada, or +1-617-801-6888 outside
the US and Canada, and then entering replay pass code 94562291. For more
information, please visit http://ir.bruker.com
CAUTIONARY STATEMENT
Any statements contained in this press release that do not describe
historical facts may constitute forward-looking statements as that term
is defined in the Private Securities Litigation Reform Act of 1995. Any
forward-looking statements contained herein are based on current
expectations, but are subject to a number of risks and uncertainties,
that could cause actual future results to differ materially from those
projected including, but are not limited to, risks and uncertainties
relating to adverse changes in conditions in the global economy and
volatility in the capital markets, the integration of businesses we have
acquired or may acquire in the future, changing technologies, product
development and market acceptance of our products, the cost and pricing
of our products, manufacturing, competition, dependence on collaborative
partners and key suppliers, capital spending and government funding
policies, changes in governmental regulations, realization of
anticipated benefits from economic stimulus programs, intellectual
property rights, litigation, and exposure to foreign currency
fluctuations and other risk factors discussed from time to time in our
filings with the Securities and Exchange Commission. These and other
factors are identified and described in more detail in our filings with
the SEC, including, without limitation, our recent Proxy Statements on
Schedule 14A, our annual report on Form 10-K for the year ended December
31, 2008, our most recent quarterly reports on Form 10-Q and our current
reports on Form 8-K. We expressly disclaim any intent or obligation to
update these forward-looking statements other than as required by law.
Bruker Corporation
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
Product revenue
|
$
|
230.7
|
|
|
$
|
211.8
|
|
|
$
|
655.8
|
|
|
$
|
700.4
|
|
Service revenue
|
|
32.4
|
|
|
|
28.8
|
|
|
|
87.6
|
|
|
|
87.7
|
|
Other revenue
|
|
2.0
|
|
|
|
1.5
|
|
|
|
4.7
|
|
|
|
3.8
|
|
|
Total revenue
|
|
265.1
|
|
|
|
242.1
|
|
|
|
748.1
|
|
|
|
791.9
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product revenue
|
|
127.9
|
|
|
|
114.6
|
|
|
|
364.8
|
|
|
|
382.3
|
|
Cost of service revenue
|
|
18.0
|
|
|
|
16.4
|
|
|
|
50.2
|
|
|
|
54.9
|
|
|
Total cost of revenue
|
|
145.9
|
|
|
|
131.0
|
|
|
|
415.0
|
|
|
|
437.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
119.2
|
|
|
|
111.1
|
|
|
|
333.1
|
|
|
|
354.7
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
Sales and marketing
|
|
44.1
|
|
|
|
45.2
|
|
|
|
130.6
|
|
|
|
136.7
|
|
General and administrative
|
|
17.5
|
|
|
|
17.7
|
|
|
|
50.8
|
|
|
|
51.7
|
|
Research and development
|
|
31.6
|
|
|
|
33.1
|
|
|
|
91.8
|
|
|
|
100.8
|
|
Acquisition related, net
|
|
-
|
|
|
|
-
|
|
|
|
(0.6
|
)
|
|
|
6.2
|
|
|
Total operating expenses
|
|
93.2
|
|
|
|
96.0
|
|
|
|
272.6
|
|
|
|
295.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
26.0
|
|
|
|
15.1
|
|
|
|
60.5
|
|
|
|
59.3
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other income (expense), net
|
|
(1.8
|
)
|
|
|
0.8
|
|
|
|
(4.6
|
)
|
|
|
(7.8
|
)
|
|
|
|
|
|
|
|
|
|
|
Income before income tax provision and
|
|
|
|
|
|
|
|
|
noncontrolling interest in consolidated subsidiaries
|
|
24.2
|
|
|
|
15.9
|
|
|
|
55.9
|
|
|
|
51.5
|
|
Income tax provision
|
|
8.1
|
|
|
|
(2.0
|
)
|
|
|
18.5
|
|
|
|
12.5
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
16.1
|
|
|
|
17.9
|
|
|
|
37.4
|
|
|
|
39.0
|
|
Net income (loss) attributable to noncontrolling interests
|
|
(0.3
|
)
|
|
|
0.1
|
|
|
|
(0.3
|
)
|
|
|
0.3
|
|
Net income attributable to Bruker Corporation
|
$
|
16.4
|
|
|
$
|
17.8
|
|
|
$
|
37.7
|
|
|
$
|
38.7
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share attributable to:
|
|
|
|
|
|
|
|
|
Bruker Corporation shareholders:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.10
|
|
|
$
|
0.11
|
|
|
$
|
0.23
|
|
|
$
|
0.24
|
|
|
Diluted
|
$
|
0.10
|
|
|
$
|
0.11
|
|
|
$
|
0.23
|
|
|
$
|
0.23
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
163.5
|
|
|
|
162.8
|
|
|
|
163.4
|
|
|
|
162.5
|
|
|
Diluted
|
|
165.0
|
|
|
|
165.9
|
|
|
|
164.7
|
|
|
|
165.6
|
|
Bruker Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
|
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash, short-term investments and restricted cash
|
$
|
150.5
|
|
$
|
167.7
|
|
Accounts receivable, net
|
|
151.7
|
|
|
171.9
|
|
Inventories
|
|
|
443.6
|
|
|
425.1
|
|
Other current assets
|
|
72.7
|
|
|
56.0
|
|
|
Total current assets
|
|
818.5
|
|
|
820.7
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
226.4
|
|
|
221.3
|
Intangible and other assets
|
|
79.3
|
|
|
74.3
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
1,124.2
|
|
$
|
1,116.3
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Short-term borrowings
|
$
|
30.9
|
|
$
|
41.0
|
|
Accounts payable
|
|
45.5
|
|
|
43.3
|
|
Customer deposits
|
|
197.1
|
|
|
199.6
|
|
Other current liabilities
|
|
247.5
|
|
|
235.8
|
|
|
Total current liabilities
|
|
521.0
|
|
|
519.7
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
120.4
|
|
|
182.8
|
Other long-term liabilities
|
|
109.3
|
|
|
101.1
|
|
|
|
|
|
|
|
|
Total shareholders' equity
|
|
373.5
|
|
|
312.7
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
$
|
1,124.2
|
|
$
|
1,116.3
|
Reconciliation of BSI and BEST reportable segments to the
consolidated results of Bruker Corporation for the nine months
ended September 30, 2009 and 2008 (unaudited)
(in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bruker
|
|
|
|
|
|
|
Bruker
|
|
Energy &
|
|
Corporate,
|
|
|
|
|
Scientific
|
|
Supercon
|
|
Adjustments
|
|
GAAP
|
September 30, 2009:
|
|
Instruments
|
|
Technologies
|
|
& Eliminations
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
716.5
|
|
$
|
36.0
|
|
|
$
|
(4.4
|
)
|
|
$
|
748.1
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
|
63.4
|
|
|
(4.3
|
)
|
|
|
1.4
|
|
|
|
60.5
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
|
|
|
41.7
|
|
|
(5.0
|
)
|
|
|
1.0
|
|
|
|
37.7
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Per Diluted Share
|
|
$
|
0.25
|
|
$
|
(0.03
|
)
|
|
$
|
0.01
|
|
|
$
|
0.23
|
Diluted Shares Outstanding
|
|
|
164.7
|
|
|
163.4
|
|
|
|
164.7
|
|
|
|
164.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2008:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
767.3
|
|
$
|
32.5
|
|
|
$
|
(7.9
|
)
|
|
$
|
791.9
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
|
65.7
|
|
|
(6.6
|
)
|
|
|
0.2
|
|
|
|
59.3
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
|
|
|
45.3
|
|
|
(6.8
|
)
|
|
|
0.2
|
|
|
|
38.7
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Per Diluted Share
|
|
$
|
0.27
|
|
$
|
(0.04
|
)
|
|
$
|
0.00
|
|
|
$
|
0.23
|
Diluted Shares Outstanding
|
|
|
165.6
|
|
|
162.5
|
|
|
|
165.6
|
|
|
|
165.6
|
Reconciliation of Free Cash Flow of Bruker Corporation
(unaudited)
(in millions)
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
September 30,
|
|
September 30,
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
Cash flow from operations
|
$
|
16.0
|
|
|
$
|
0.8
|
|
|
$
|
67.3
|
|
|
$
|
18.9
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
(1.8
|
)
|
|
|
(12.7
|
)
|
|
|
(8.9
|
)
|
|
|
(39.8
|
)
|
|
|
|
|
|
|
|
|
Free cash flow
|
$
|
14.2
|
|
|
$
|
(11.9
|
)
|
|
$
|
58.4
|
|
|
$
|
(20.9
|
)
|
Source: Bruker Corporation
Stacey Desrochers, +1 978-663-3660, ext. 1115
Director of Investor Relations
stacey.desrochers@bruker.com