Full Press Release Details
Corporation Reports Financial Results for the Second Quarter and First Half Year of 2010
BILLERICA, Mass., July 28,
2010 (BUSINESS WIRE) Bruker Corporation (NASDAQ: BRKR) today
reported financial results for the three and six months ended June 30,
Second Quarter 2010 Financial
increased by 19% year-over-year (y-o-y) to $300.9 million, or by 20% y-o-y
excluding the effects of acquisitions and foreign currency translation
grew 114% y-o-y to $0.15
operating margin for the Bruker Scientific Instruments (BSI) segment expanded
by 650 basis points y-o-y to 15.1%
First Half Year 2010 Financial
increased by 20% y-o-y to $578.6 million, or by 15% y-o-y excluding the effects
of acquisitions and foreign currency translation
grew 92% y-o-y to $0.25
operating margin for the Bruker Scientific Instruments (BSI) segment expanded
by 510 basis points y-o-y to 13.1%
operating margin and adjusted EPS are non-GAAP measures that exclude certain
items detailed later in this press release under the heading Use of Non-GAAP
In the second quarter of
2010, revenue was $300.9 million, an increase of 19% compared to revenue of
$252.5 million in the second quarter of 2009.
Excluding the effects of acquisitions and foreign currency translation,
second quarter 2010 revenue increased by 20% year-over-year. GAAP net income for the second quarter of
2010 was $22.6 million, or $0.14 per diluted share, compared to GAAP net income
of $12.9 million, or $0.08 per diluted share, in the second quarter of
2009. Adjusted net income for the second
quarter of 2010 was $25.0 million, or $0.15 per diluted share, compared to
adjusted net income of $12.3 million, or $0.07 per diluted share, in the second
For the six months ended June 30,
2010, revenue was $578.6 million, an increase of 20% compared to revenue of
$483.0 million in the first half of 2009.
Excluding the effects of acquisitions and foreign currency translation,
revenue for the first six months of 2010 increased by 15% over the comparable
period in 2009. GAAP net income for the
six months ended June 30, 2010 was $38.7 million, or $0.23 per diluted
share, compared to GAAP net income of $21.3 million, or $0.13 per diluted
share, for the six months ended June 30, 2009. Adjusted net income for the six months ended June 30,
million, or $0.25 per
diluted share, compared to adjusted net income of $21.5 million, or $0.13 per
diluted share, for the six months ended June 30, 2009.
Cash flow from operations
for the second quarter of 2010 was $47.6 million, compared to $38.2 million in
the second quarter of 2009. In the
second quarter, on May 19, 2010, Bruker closed the acquisition of three
former Varian, Inc. chemical analysis product lines from Agilent
Technologies, Inc., for a cash purchase price of $37.5 million. Bruker ended the second quarter of 2010 with
cash, cash equivalents and restricted cash of $190.1 million, and net cash of
Bruker s trailing twelve
months working-capital-per-revenue ratio
declined from $0.51 as of June 30, 2009, to $0.44 as of June 30,
Frank Laukien, President and
CEO, commented: We are extremely pleased with both our second quarter and half
year results, with record first half revenues, operating income and earnings
per share. The execution by our teams
was outstanding and for the second quarter in a row all four operating
divisions in our Scientific Instruments segment delivered double-digit organic
top-line growth year-over-year. Our new
order bookings have been very healthy, as we continue to benefit from
additional stimulus orders, with more than $30 million in additional US ARRA
funded orders received during the first half of 2010. We have also experienced dramatic bookings
growth in some of our industrial analysis product lines, which in the first
half of 2010 increased by more than 50% compared to the first half of 2009, and
again by more than 10% sequentially compared to the second half of 2009, even
though the second half of each year is typically seasonally stronger.
Dr. Laukien continued: We
monitor academic and government research budgets in Europe, and we believe that
overall these will continue to be stable or growing. While many European governments intend to
reduce spending, we believe that these reductions will primarily target other
government expenditures, while public science and research funding will largely
be protected as a key investment in the future.
For example, the just announced European Union Seventh Framework
Programme budgets EUR6.4 billion for proposals in 2011, up 12% from 2010, and
up 30% from 2009. Similarly, France just
announced the Grand Emprunt stimulus-type initiative to invest EUR11 billion
on research and an additional EUR8 billion on university budgets in 2011, an
increase from current budget levels. We
are optimistic about future government research budgets in many key European
countries. Moreover, Bruker is a very
dynamic and resilient company, and our high-performance product portfolio and
diversified customer base positions us well to continue our revenue growth and
Commenting on BEST, Dr. Laukien
stated: We are also pleased with the continued revenue growth at our BEST
segment. In the last five quarters since
our Accel acquisition, the BEST external backlog under contract has increased
from $14.3 million on March 31, 2009 to over $90 million as of June 30,
Bruker Scientific Instruments
In the second quarter of
2010, BSI revenue was $284.9 million, an increase of 18% compared to $241.3 for
the second quarter of 2009. Our new
chemical analysis business, acquired on May 19, 2010, generated revenue of
$3.7 million during the last 6 weeks of the second quarter of 2010. Excluding the effects of acquisitions and
foreign currency translation, BSI revenue for second quarter of 2010 increased
by 18% over the comparable period in 2009.
Adjusted operating margin
for the BSI segment in the second quarter of 2010 was 15.1%, compared to 8.6%
in the second quarter of 2009. GAAP EPS
for the BSI segment in the second quarter of 2010 was $0.15, compared to $0.08
in the second quarter of 2009.
For the six months ended June 30,
2010, BSI revenue was $545.2 million, an increase of 17% compared to revenue of