Bruker BioSciences Corporation (NASDAQ: BRKR) today reported its financial results for the three and nine months ended September 30, 2007.
For the third quarter of 2007, revenue increased by 25% to $131.6 million, compared to revenue of $104.9 million in the third quarter of 2006. Excluding the effects of foreign currency translation, third quarter 2007 revenue increased by 20% year-over-year. Net income in the third quarter of 2007 was $8.7 million, or $0.08 per diluted share, compared to net income of $3.0 million, or $0.03 per diluted share, in the third quarter of 2006. Included in third quarter of 2007 net income was a one-time tax benefit of $2.4 million, or $0.02 per diluted share, related to the revaluation of the Company’s deferred tax assets and liabilities as a result of a tax law change in Germany enacted in the third quarter of 2007 which will decrease the statutory German corporate income tax rate beginning in 2008.
During the nine months ended September 30, 2007, revenue increased by 21% to $363.8 million, compared to revenue of $300.2 million during the nine months ended September 30, 2006. Excluding the effects of foreign currency translation, revenue for the nine months ended September 30, 2007 increased by 16% year-over-year. Net income during the nine months ended September 30, 2007 was $17.5 million, or $0.16 per diluted share, compared to net income of $8.8 million, or $0.09 per diluted share, during the nine months ended September 30, 2006.
Commenting on the third quarter, Frank Laukien, President and CEO, said: “We are pleased with our top-line performance in the third quarter, with all three operating divisions delivering double digit growth year-over-year. Moreover, we continue to improve gross profit margins and leverage our operating expenses, resulting in year-over-year improvements to our operating income margin.”
EARNINGS CONFERENCE CALL
Bruker BioSciences will host an operator-assisted earnings conference call at 10 a.m. Eastern Time on Monday, October 29, 2007. 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 72671589.
ABOUT BRUKER BIOSCIENCES
Bruker BioSciences Corporation in Billerica, Massachusetts is the parent company of Bruker AXS Inc., Bruker Daltonics Inc. and Bruker Optics, Inc. Bruker AXS is a leading provider of life science, materials research and industrial X-ray analysis and spark-OES tools. Bruker Daltonics is a leading provider of innovative life science tools based on mass spectrometry, and also offers a broad line of chemical, biological, radiological and nuclear (CBRN) detection products for homeland security. Bruker Optics is a leading provider of research, analytical and process analysis instruments and solutions based on infrared and Raman molecular spectroscopy technology. 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 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, 2006, 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 BioSciences Corporation CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data; unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||
| Product revenue | $ | 115,235 | $ | 91,928 | $ | 317,243 | $ | 264,104 | ||||||||
| Service revenue | 16,163 | 12,625 | 46,113 | 34,895 | ||||||||||||
| Other revenue | 245 | 317 | 477 | 1,210 | ||||||||||||
| Total revenue | 131,643 | 104,870 | 363,833 | 300,209 | ||||||||||||
| Cost of product revenue | 59,924 | 50,659 | 166,525 | 143,414 | ||||||||||||
| Cost of service revenue | 9,886 | 8,028 | 29,816 | 20,633 | ||||||||||||
| Total cost of revenue | 69,810 | 58,687 | 196,341 | 164,047 | ||||||||||||
| Gross profit margin | 61,833 | 46,183 | 167,492 | 136,162 | ||||||||||||
| Operating Expenses: | ||||||||||||||||
| Sales and marketing | 27,057 | 19,063 | 74,909 | 58,795 | ||||||||||||
| General and administrative | 8,556 | 7,239 | 24,036 | 20,319 | ||||||||||||
| Research and development | 14,763 | 11,936 | 42,302 | 36,495 | ||||||||||||
| Acquisition related charges | 961 | 5,829 | ||||||||||||||
| Total operating expenses | 50,376 | 39,199 | 141,247 | 121,438 | ||||||||||||
| Operating income | 11,457 | 6,984 | 26,245 | 14,724 | ||||||||||||
| Interest and other income (expense), net | (619 | ) | (491 | ) | (825 | ) | 3,522 | |||||||||
Income before income tax provision and minority interest in consolidated subsidiaries | 10,838 | 6,493 | 25,420 | 18,246 | ||||||||||||
| Income tax provision | 2,065 | 3,535 | 7,655 | 9,398 | ||||||||||||
Income before minority interest in consolidated subsidiaries | 8,773 | 2,958 | 17,765 | 8,848 | ||||||||||||
| Minority interest in consolidated subsidiaries | 109 | (18 | ) | 255 | 75 | |||||||||||
| Net income | $ | 8,664 | $ | 2,976 | $ | 17,510 | $ | 8,773 | ||||||||
| Net income per share: | ||||||||||||||||
| Basic | $ | 0.08 | $ | 0.03 | $ | 0.17 | $ | 0.09 | ||||||||
| Diluted | $ | 0.08 | $ | 0.03 | $ | 0.16 | $ | 0.09 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 104,372 | 102,038 | 103,802 | 101,635 | ||||||||||||
| Diluted | 106,674 | 102,704 | 106,480 | 102,090 | ||||||||||||
Bruker BioSciences Corporation CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) | ||||||||
| September 30, | December 31, | |||||||
| 2007 | 2006 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and short-term investments | $ | 38,904 | $ | 52,147 | ||||
| Accounts receivable, net | 85,840 | 79,604 | ||||||
| Due from affiliated companies | 6,366 | 9,028 | ||||||
| Inventories | 184,248 | 134,504 | ||||||
| Other current assets | 28,082 | 19,461 | ||||||
| Total current assets | 343,440 | 294,744 | ||||||
| Property and equipment, net | 101,015 | 90,349 | ||||||
| Intangible and other assets | 53,909 | 48,094 | ||||||
| Total assets | $ | 498,364 | $ | 433,187 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Short-term borrowings | $ | 21,014 | $ | 21,857 | ||||
| Accounts payable | 31,102 | 23,102 | ||||||
| Due to affiliated companies | 7,526 | 5,901 | ||||||
| Other current liabilities | 150,807 | 144,268 | ||||||
| Total current liabilities | 210,449 | 195,128 | ||||||
| Long-term debt | 18,078 | 22,863 | ||||||
| Other long-term liabilities | 30,861 | 23,491 | ||||||
| Minority interest in subsidiaries | 460 | 239 | ||||||
| Total shareholders' equity | 238,516 | 191,466 | ||||||
| Total liabilities and shareholders' equity | $ | 498,364 | $ | 433,187 | ||||
Contacts:
Michael Willett, 978-663-3660, ext.
1411
Investor Relations Officer
Michael.Willett@Bruker.com
