EX-99.1 2 a08-20449_1ex99d1.htm EX-99.1

Exhibit 99.1

 

Bruker Corporation Reports Second Quarter 2008 Financial Results

 

Second Quarter 2008 Highlights: Revenue $311 Million, GAAP EPS $0.13

 

BILLERICA, Mass., July 31, 2008 (BUSINESS WIRE) – Bruker Corporation (NASDAQ: BRKR) today reported its financial results for the three and six months ended June 30, 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 three and six months ended June 30, 2008 and 2007, included within this release, represent the combined historical consolidated financial statements of Bruker BioSciences Corporation with those of the Bruker BioSpin Group.

 

Financial Results

 

In the second quarter of 2008, revenue increased 31% to $311.5 million, compared to revenue of $238.3 million in the second quarter of 2007.  Excluding the effects of foreign currency translation, second quarter 2008 revenue increased by 19% year-over-year.  Net income in the second quarter of 2008 was $21.7 million, or $0.13 per diluted share, compared to net income of $17.7 million, or $0.11 per diluted share, in the second quarter of 2007.  Included in net income for the second quarter of 2008 were after-tax charges of $0.3 million, or $0.00 per diluted share, for expenses related to the acquisition of the Bruker BioSpin Group.

 

For the six months ended June 30, 2008, revenue increased 23% to $549.9 million, compared to revenue of $445.9 million during the six months ended June 30, 2007.  Excluding the effects of foreign currency translation, revenue for the six months ended June 30, 2008 increased by 13% year-over-year.  Net income during the six months ended June 30, 2008 was $21.0 million, or $0.13 per diluted share, compared to net income of $32.0 million, or $0.20 per diluted share, during the six months ended June 30, 2007.  Included in GAAP EPS for the six months ended June 30, 2008 were Bruker BioSpin acquisition related expenses of ($0.04) per diluted share, foreign exchange losses of ($0.04) per diluted share, and interest expense on acquisition

 


 

related debt of ($0.03) per diluted share, with a cumulative effect of ($0.11) per diluted share.  For comparison, included in net income for the six months ended June 30, 2007 were foreign exchange gains of $0.4 million, or $0.00 per diluted share, and there were no acquisition related charges or acquisition related interest expense.

 

During the second quarter of 2008, Bruker repaid $158 million of acquisition related debt.  As of June 30, 2008, Bruker Corporation had a net debt position of $110.4 million.

 

Frank Laukien, President and Chief Executive Officer of Bruker Corporation, commented: “For the second quarter of 2008, we are very pleased with our strong revenue growth, as well as our sequential and year-over-year improvements in net income and EPS.  In the first two quarters of 2008 we experienced significant quarterly fluctuations in our growth rates and margins, and we expect these fluctuations to continue going forward.  In the first half of 2008, while our GAAP operating income grew by 7%, our adjusted operating income, which excludes expenses related to the acquisition of Bruker BioSpin, grew 22%.  However, our adjusted operating margin as a percentage of revenue was essentially flat, and therefore, in the third quarter of 2008, we intend to reaccelerate our gross margin improvement programs and to implement various streamlining and expense cutting steps with the objective of obtaining better margin leverage from our top-line growth.”

 

Bill Knight, Bruker’s Chief Financial Officer, concluded:  “While the present global market environment is more challenging than a year ago, we are optimistic that our various medium-term growth and margin initiatives will continue our positive profitability trends of the last three years.  Our goal remains to drive our margins towards and beyond industry standards, while maintaining rapid revenue growth.”

 

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, adjusted operating margin and adjusted EPS.  Adjusted operating income and margin excludes acquisition related charges and adjusted EPS excludes acquisition related charges, interest expense on acquisition related debt, and foreign exchange gains and 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 9 a.m. Eastern Daylight Time on Thursday, July 31, 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 by calling 888-339-2688, or +1-617-847-3007 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, or +1-617-801-6888 outside the US and Canada, and then entering replay pass code 76210411.

 

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 June 30,

 

Six Months Ended June 30,

 

 

 

2008

 

2007

 

2008

 

2007

 

 

 

 

 

 

 

 

 

 

 

Product revenue

 

$

278,849

 

$

210,177

 

$

485,884

 

$

391,786

 

Service revenue

 

31,733

 

27,570

 

61,690

 

52,757

 

Other revenue

 

883

 

595

 

2,327

 

1,335

 

Total revenue

 

311,465

 

238,342

 

549,901

 

445,878

 

 

 

 

 

 

 

 

 

 

 

Cost of product revenue

 

161,931

 

120,810

 

266,832

 

217,459

 

Cost of service revenue

 

20,896

 

17,617

 

41,302

 

33,956

 

Total cost of revenue

 

182,827

 

138,427

 

308,134

 

251,415

 

 

 

 

 

 

 

 

 

 

 

Gross profit margin

 

128,638

 

99,915

 

241,767

 

194,463

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

Sales and marketing

 

46,151

 

37,029

 

89,544

 

72,491

 

General and administrative

 

17,178

 

13,442

 

33,982

 

26,855

 

Research and development

 

36,514

 

27,657

 

67,719

 

53,621

 

Acquisition related charges

 

360

 

—

 

6,153

 

—

 

Total operating expenses

 

100,203

 

78,128

 

197,398

 

152,967

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

28,435

 

21,787

 

44,369

 

41,496

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange gains (losses), net

 

3,263

 

1,163

 

(8,956

)

452

 

Interest and other income (expense), net

 

264

 

1,051

 

294

 

2,512

 

 

 

 

 

 

 

 

 

 

 

Income before income tax provision and minority interest in consolidated subsidiaries

 

31,962

 

24,001

 

35,707

 

44,460

 

Income tax provision

 

10,196

 

6,284

 

14,466

 

12,307

 

 

 

 

 

 

 

 

 

 

 

Income before minority interest in consolidated subsidiaries

 

21,766

 

17,717

 

21,241

 

32,153

 

Minority interest in consolidated subsidiaries

 

80

 

60

 

240

 

146

 

Net income

 

$

21,686

 

$

17,657

 

$

21,001

 

$

32,007

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.13

 

$

0.11

 

$

0.13

 

$

0.20

 

Diluted

 

$

0.13

 

$

0.11

 

$

0.13

 

$

0.20

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

162,440

 

161,728

 

162,371

 

161,050

 

Diluted

 

165,438

 

164,343

 

165,308

 

163,731

 

 


 

Bruker Corporation

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

 

 

June 30,

 

December 31,

 

 

 

2008

 

2007

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and short-term investments

 

$

131,790

 

$

344,554

 

Accounts receivable, net

 

164,236

 

185,217

 

Inventories

 

487,503

 

447,688

 

Other current assets

 

75,697

 

57,238

 

Total current assets

 

859,226

 

1,034,697

 

 

 

 

 

 

 

Property and equipment, net

 

236,321

 

207,588

 

Intangible and other assets

 

75,895

 

69,346

 

 

 

 

 

 

 

Total assets

 

$

1,171,442

 

$

1,311,631

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Short-term borrowings

 

$

63,754

 

$

35,591

 

Accounts payable

 

54,288

 

52,293

 

Customer deposits

 

220,254

 

233,466

 

Other current liabilities

 

235,455

 

239,841

 

Total current liabilities

 

573,751

 

561,191

 

 

 

 

 

 

 

Long-term debt

 

178,396

 

8,605

 

Other long-term liabilities

 

109,713

 

105,445

 

Minority interest in subsidiaries

 

753

 

538

 

 

 

 

 

 

 

Total shareholders’ equity

 

308,829

 

635,852

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

1,171,442

 

$

1,311,631

 

 


 

FOR FURTHER INFORMATION:

Michael Willett, Investor Relations Officer

 

Tel: +1 (978) 663-3660, ext. 1411

 

Email:  michael.willett@bruker.com