Bruker (NASDAQ:BRKR)
Historical Stock Chart
From Jul 2019 to Jul 2024
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