EX-99.1 2 a08-13377_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

Bruker Corporation Reports First Quarter 2008 Results

 

BILLERICA, Mass., May 5, 2008 (BUSINESS WIRE) — Bruker Corporation (NASDAQ: BRKR) today reported financial results for the first quarter 2008, ended on March 31, 2008.

 

On February 26, 2008, Bruker BioSciences Corporation closed its acquisition of the Bruker BioSpin Group, and renamed itself Bruker Corporation.  Under US GAAP, this transaction is accounted for as an acquisition of businesses under common control, and as a result all one-time transaction costs are expensed in the period in which they are incurred, rather than being added to goodwill.  In addition, expenses incurred subsequent to the consummation of the acquisition, such as interest expenses incurred on acquisition related debt, are not reflected in the financial results of periods prior to the date of the acquisition, as they typically would be in pro-forma financials in acquisitions of unrelated parties.  After the closing of the transaction all historical financial statements are required to be restated by combining the historical consolidated financial statements of Bruker BioSciences Corporation with those of the Bruker BioSpin Group.  Accordingly, the financial results for the first quarters of 2008 and of 2007 included within this release have been restated to combine the historical consolidated financial statements of Bruker BioSciences Corporation with those of the Bruker BioSpin Group for both full quarters.

 

In the first quarter of 2008, revenue increased 14.9% to $238.4 million, compared to revenue of $207.5 million in the first quarter of 2007.  Foreign currency translation contributed 9.9% to this revenue growth rate.  GAAP operating income for the first quarter of 2008 was $15.9 million, compared to $19.7 million in the first quarter of 2007.  Included in GAAP operating income in the first quarter of 2008 were acquisition related charges of $5.8 million, which, if excluded, would result in a 10.2% increase in operating income over the first quarter of 2007.

 

GAAP diluted earnings (loss) per share were ($0.00) in the first quarter of 2008, compared to $0.09 in the first quarter of 2007.  Included in GAAP EPS for the first quarter of 2008 were previously announced foreign exchange losses of ($0.06) per diluted share, Bruker BioSpin acquisition related expenses of ($0.04) per diluted share, and interest expense on acquisition related debt of ($0.01) per diluted share, with a cumulative effect of ($0.10) per diluted share.  For comparison, included in net income for the first quarter of 2007 were foreign exchange losses of ($0.7 million), or ($0.00) per diluted share, and there were no acquisition related charges or interest expense.

 

Cash flow from operations in the first quarter of 2008 was $22.3 million, compared to $21.7 million in the first quarter of 2007.  As of March 31, 2008, Bruker Corporation had a net debt position of $101 million.

 

“The acquisition of the Bruker BioSpin Group in February was a transformational event for our company, and we are very excited about the introduction of several novel and truly innovative products and solutions ar Pittcon 2008,” said Frank Laukien, President and CEO.  “We are in the early stages of integrating the new combined Bruker group. Despite uncertain economic conditions we expect in the medium term to realize revenue synergies through cross-selling opportunities and integrated solutions development, and we are also planning further gross margin improvements and expense leveraging through sourcing efficiencies, shared functions and operational streamlining.”

 



 

William Knight, Chief Financial Officer, commented: “In the first quarter our operational performance was below our internal goals, but within the range of quarterly fluctuations that we expect to see with the combined new business.  Our bottom line was negatively impacted by foreign exchange losses, as well as by acquisition related charges and interest expense, which resulted in a reduction in our earnings by ($0.10) per diluted share.  We are working to reduce interest expenses and the effects of foreign currency fluctuations in the future, and as part of these initiatives we have already repaid approximately $55 million of the debt incurred to acquire the Bruker BioSpin Group in April, and we have plans in place to repay an additional $80 million this week.”

 

USE OF NON-GAAP FINANCIAL MEASURES

 

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures, including adjusted operating income and adjusted EPS.  Adjusted operating income excludes acquisition related charges and adjusted EPS excludes acquisition related charges, interest expense on acquisition related debt, and foreign exchange losses.  We believe the inclusion of these non-GAAP measures helps 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 prepared in accordance with GAAP.

 

EARNINGS CONFERENCE CALL

Bruker Corporation will host an operator-assisted earnings conference call at 8 a.m. Eastern Daylight Time on Monday, May 5, 2008.  To listen to the webcast, investors can go to www.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 888-339-2688, or 617-847-3007 outside the US and Canada.  Investors should refer to the Bruker Corporation 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 617-801-6888 outside the US and Canada, and then entering replay pass code 94254806.

 

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. The factors that could cause actual future results to differ materially from current expectations include, but are not limited to, risks and uncertainties relating to 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, intellectual property rights, litigation, and exposure to foreign currency fluctuations. These and other factors are identified and described in more detail in our filings with the SEC, including, without limitation, our annual report on Form 10-K for the year ended December 31, 2007, our most recent quarterly reports on Form 10-Q and  our current reports on Form 8-K. We disclaim any intent or obligation to update these forward-looking statements other than as required by law.

 



 

Bruker Corporation

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

 

 

 

Three Months Ended March 31,

 

 

 

2008

 

2007

 

Product revenue

 

$

207,035

 

$

181,609

 

Service revenue

 

29,957

 

25,187

 

Other revenue

 

1,444

 

740

 

Total revenue

 

238,436

 

207,536

 

 

 

 

 

 

 

Cost of product revenue

 

104,901

 

96,649

 

Cost of service revenue

 

20,406

 

16,339

 

Total cost of revenue

 

125,307

 

112,988

 

 

 

 

 

 

 

Gross profit margin

 

113,129

 

94,548

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

Sales and marketing

 

43,393

 

35,462

 

General and administrative

 

16,804

 

13,413

 

Research and development

 

31,205

 

25,964

 

Acquisition related charges

 

5,793

 

 

Total operating expenses

 

97,195

 

74,839

 

 

 

 

 

 

 

Operating income

 

15,934

 

19,709

 

 

 

 

 

 

 

Foreign exchange losses, net

 

(12,219

)

(711

)

Interest and other income (expense), net

 

30

 

1,461

 

 

 

 

 

 

 

Income before income tax provision and minority interest in consolidated subsidiaries

 

3,745

 

20,459

 

Income tax provision

 

4,270

 

6,023

 

 

 

 

 

 

 

Income before minority interest in consolidated subsidiaries

 

(525

)

14,436

 

Minority interest in consolidated subsidiaries

 

160

 

86

 

Net income (loss)

 

$

(685

)

$

14,350

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

Basic

 

$

(0.00

)

$

0.09

 

Diluted

 

$

(0.00

)

$

0.09

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

Basic

 

162,303

 

160,365

 

Diluted

 

162,303

 

162,906

 

 

 



 

Bruker Corporation

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

 

 

March 31,

 

December 31,

 

 

 

2008

 

2007

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and short-term investments

 

$

321,282

 

$

344,554

 

Accounts receivable, net

 

165,081

 

185,217

 

Inventories

 

511,597

 

447,688

 

Other current assets

 

88,500

 

57,238

 

Total current assets

 

1,086,460

 

1,034,697

 

 

 

 

 

 

 

Property and equipment, net

 

231,541

 

207,588

 

Intangible and other assets

 

79,428

 

69,346

 

 

 

 

 

 

 

Total assets

 

$

1,397,429

 

$

1,311,631

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Short-term borrowings

 

$

253,096

 

$

35,591

 

Accounts payable

 

59,210

 

52,293

 

Customer deposits

 

275,241

 

233,466

 

Other current liabilities

 

244,064

 

239,841

 

Total current liabilities

 

831,611

 

561,191

 

 

 

 

 

 

 

Long-term debt

 

169,428

 

6,394

 

Other long-term liabilities

 

106,005

 

107,656

 

Minority interest in subsidiaries

 

672

 

538

 

 

 

 

 

 

 

Total shareholders’ equity

 

289,713

 

635,852

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

1,397,429

 

$

1,311,631

 

 

 



 

FOR FURTHER INFORMATION:

 

Michael Willett, Investor Relations Officer

 

 

Tel:  +1 (978) 663-3660, ext. 1411

 

 

Email:  michael.willett@bruker.com