Bruker (NASDAQ:BRKR)
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Bruker BioSciences Corporation (NASDAQ: BRKR) today
reported second quarter 2005 revenue of $71.4 million, an 11.3%
increase from revenue of $64.1 million in the second quarter of 2004.
For the six months ended June 30, 2005, revenue increased 10.6% to
$146.3 million, compared to $132.3 million for the same period last
year. Revenue growth during the three and six months ended June 30,
2005 included favorable foreign currency effects of 3.3% and 3.5%,
respectively.
Second quarter 2005 operating income was $0.9 million, compared to
an operating loss of ($5.0) million in the second quarter of 2004. Net
income in the second quarter of 2005 was $0.3 million, or $0.00 per
diluted share, compared to a net loss of ($4.4) million, or ($0.05)
per diluted share, in the second quarter of 2004. For the six months
ended June 30, 2005, operating income was $3.5 million, and net income
was $0.7 million, or $0.01 per diluted share, compared to an operating
loss of ($3.6) million, and a net loss of ($3.9) million, or ($0.04)
per diluted share for the first half of 2004.
During the second quarter 2005, positive operating cash flow of
$18.8 million increased our cash position to $92.0 million, while
short-term borrowings declined to $9.3 million from $12.2 million at
December 31, 2004.
Commenting on the quarter, Frank Laukien, President and CEO said:
"Over the last year, we have made steady progress in controlling our
expenses, returning to profitability, and strengthening our cash flows
and balance sheet. We will continue to focus on higher profitability
through various ongoing gross margin improvement initiatives,
continued strict expense control, reduction in our interest expenses
and gradual improvements in our effective tax rate."
Dr. Laukien continued: "Our organic revenue growth in the first
half of 2005 has been above industry average, despite weaker than
expected demand in several of our market segments. In the first half
of this year, we have introduced several important new technologies,
and a remarkable number of innovative products that are receiving
strong customer interest. We believe that our proven ability to
generate innovations and rapid organic growth will enable us to become
an even more significant driver within our markets, and will allow us
over time to leverage our continued R&D and distribution investments
to reach industry-standard profitability."
William Knight, Chief Financial Officer, commented: "Improvements
in our profitability continue to be our top priority and these efforts
have steadily improved our operating and net income. Our gross profit
margins improved both year-over-year and sequentially, reflecting some
initial success from our gross profit margin improvement programs. In
addition, the spending control and productivity programs announced
during the second half of 2004 have contributed to our operating
expenses as a percentage of revenue being more in-line with industry
averages. Overall I am pleased with the progress we have made to date,
but realize more remains to be done. We are also very pleased with our
positive operating cash flows of almost $24 million during the first
half of 2005."
OPERATING BUSINESSES
Set forth below is selected financial information for Bruker
BioSciences' two operating businesses: Bruker Daltonics (life-science
mass spectrometry and NBC detection business) and Bruker AXS (x-ray
analysis business):
BRUKER DALTONICS
In the second quarter of 2005, revenue for the Bruker Daltonics
business increased 7.1% to $37.4 million, from $34.9 million in the
second quarter of 2004. For the six months ended June 30, 2005,
revenue for the Bruker Daltonics business increased 8.5% to $80.0
million, from $73.7 million for the same period last year. For the six
months ended June 30, 2005, Bruker Daltonics' revenue was derived 70%
from life-science mass spectrometry systems, 11% from substance
detection systems, and 19% from after-market sales. EBITDA was $2.3
million for the second quarter of 2005, compared to ($0.2) million for
the second quarter of 2004. EBITDA was $6.6 million for the six months
ended June 30, 2005, compared to $3.0 million for the same period last
year.
BRUKER AXS
In the second quarter of 2005, revenue for the Bruker AXS business
increased 16.4% to $34.1 million, from $29.3 million in the second
quarter of 2004. For the six months ended June 30, 2005, revenue for
the Bruker AXS business increased 13.6% to $66.6 million, from $58.6
million for the same period last year. For the six months ended June
30, 2005, Bruker AXS' revenue was derived 75% from x-ray systems sales
and 25% from after-market sales. EBITDA was $1.3 million in the second
quarter of 2005, compared to ($1.7) million in the second quarter of
2004. EBITDA was $3.0 million for the six months ended June 30, 2005,
compared to $(0.8) million for the same period last year.
USE OF NON-GAAP FINANCIAL MEASURES
In addition to the financial measures prepared in accordance with
generally accepted accounting principles (GAAP), we use the non-GAAP
measure of EBITDA. EBITDA is defined as US GAAP operating income
(loss) excluding depreciation and amortization expense. We believe
that the inclusion of this non-GAAP measure 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 measure
included in this press release is not meant to be a better
presentation or a substitute for results of operations prepared in
accordance with GAAP. Reconciliations of this non-GAAP financial
measure to the most directly comparable GAAP financial measures are
set forth in the accompanying tables.
EARNINGS CONFERENCE CALL
Bruker BioSciences will host an operator-assisted earnings
conference call at 10 a.m. Eastern Daylight Time on Wednesday, August
3, 2005. To listen to the webcast, investors can go to
www.bruker-biosciences.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 BioSciences
Quarterly 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 27000303.
ABOUT BRUKER BIOSCIENCES
Bruker BioSciences Corporation, headquartered in Billerica,
Massachusetts, is the publicly traded parent company of Bruker
Daltonics Inc. and Bruker AXS Inc. Bruker AXS is a leading developer
and provider of life science and advanced materials research tools
based on x-ray technology. Bruker Daltonics is a leading developer and
provider of innovative life science tools based on mass spectrometry.
Bruker Daltonics also offers a broad line of nuclear, biological and
chemical (NBC) detection products for defense and homeland security.
For more information, please visit www.bruker-biosciences.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. 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 Company's
reorganization strategies, integration risks, failure of conditions,
technological approaches, product development, market acceptance, cost
and pricing of the Company's products, exposure to currency
fluctuations, changes in governmental regulations, capital spending
and government funding policies, FDA and other regulatory approvals to
the extent applicable, competition, the intellectual property of
others, patent protection and litigation. These and other factors are
identified and described in more detail in our filings with the SEC,
including, without limitation, our respective annual reports on Form
10-K for the year ended December 31, 2004, 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.
Condensed consolidated statements of operations, operating
business information, and balance sheets follow for Bruker BioSciences
Corporation.
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Bruker BioSciences Corporation
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------------------
2005 2004 2005 2004
------- ------- -------- --------
Product revenue $60,723 $56,182 $127,547 $115,219
Service revenue 9,977 7,635 17,732 16,500
Other revenue 668 330 1,000 582
------- ------- -------- --------
Total revenue 71,368 64,147 146,279 132,301
Cost of product revenue 34,275 35,116 72,540 69,055
Cost of service revenue 6,548 5,383 11,815 11,435
------- ------- -------- --------
Total cost of revenue 40,823 40,499 84,355 80,490
------- ------- -------- --------
Gross profit margin 30,545 23,648 61,924 51,811
Operating Expenses:
Sales and marketing 13,385 13,192 25,537 25,864
General and administrative 5,287 5,115 10,955 9,258
Research and development 10,962 10,327 21,982 20,267
------- ------- -------- --------
Total operating expenses 29,634 28,634 58,474 55,389
------- ------- -------- --------
Operating income (loss) 911 (4,986) 3,450 (3,578)
Interest and other income
(expense), net 554 (965) 424 (866)
------- ------- -------- --------
Income (loss) before income tax
provision (benefit) and minority
interest in consolidated
subsidiaries 1,465 (5,951) 3,874 (4,444)
Provision (benefit) for income
taxes 1,145 (1,580) 3,070 (560)
------- ------- -------- --------
Income (loss) before minority
interest 320 (4,371) 804 (3,884)
Minority interest in consolidated
subsidiaries 36 19 103 30
------- ------- -------- --------
Net income (loss) $ 284 $(4,390) $ 701 $ (3,914)
======= ======= ======== ========
Net income (loss) per share:
Basic $ 0.00 $ (0.05) $ 0.01 $ (0.04)
======= ======= ======== ========
Diluted $ 0.00 $ (0.05) $ 0.01 $ (0.04)
======= ======= ======== ========
Weighted average shares outstanding:
Basic 89,472 88,558 89,471 87,505
======= ======= ======== ========
Diluted 89,599 88,558 89,591 87,505
======= ======= ======== ========
Bruker BioSciences Corporation
BRUKER DALTONICS SELECTED OPERATING BUSINESS INFORMATION
(in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------------------
2005 2004 2005 2004
--------- -------- -------- --------
Total revenue $ 37,361 $ 34,882 $ 80,005 $ 73,709
========= ======== ======== ========
Operating income (loss) $ 973 $ (1,526)$ 3,948 $ 252
Depreciation and amortization 1,314 1,322 2,661 2,708
--------------------------------------
EBITDA $ 2,287 $ (204)$ 6,609 $ 2,960
========= ======== ======== ========
Bruker BioSciences Corporation
BRUKER AXS SELECTED OPERATING BUSINESS INFORMATION
(in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------------------
2005 2004 2005 2004
-------- -------- -------- --------
Total revenue $ 34,068 $ 29,265 $ 66,582 $ 58,592
======== ======== ======== ========
Operating income (loss) $ 419 $ (2,597) $ 1,241 $ (2,767)
Depreciation and amortization 870 935 1,792 1,957
--------------------------------------
EBITDA $ 1,289 $ (1,662) $ 3,033 $ (810)
======== ======== ======== ========
Bruker BioSciences Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, December 31,
2005 2004
---------- ----------
(unaudited)
ASSETS
Current assets:
Cash and short-term investments $ 92,038 $ 77,691
Accounts receivable, net 47,222 57,792
Due from affiliated companies 10,306 9,530
Inventories 98,355 107,748
Other current assets 12,473 18,530
---------- ----------
Total current assets 260,394 271,291
Property and equipment, net 74,654 84,990
Intangible and other assets 14,993 15,266
---------- ----------
Total assets $ 350,041 $ 371,547
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term borrowings $ 9,274 $ 12,205
Accounts payable 15,698 22,652
Due to affiliated companies 6,473 3,026
Other current liabilities 72,412 73,277
---------- ----------
Total current liabilities 103,857 111,160
Long-term debt 23,910 27,763
Other long-term liabilities 15,625 15,156
Minority interest in subsidiaries 372 193
Total shareholders' equity 206,277 217,275
---------- ----------
Total liabilities and shareholders'
equity $ 350,041 $ 371,547
========== ==========
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