Welcome!

News Feed Item

Bruker Reports First Quarter 2014 Financial Results

Bruker Corporation (NASDAQ: BRKR) today reported financial results for its first quarter ended March 31, 2014.

Bruker’s revenues for the first quarter of 2014 grew by 7.7 percent to $423.7 million, compared to $393.4 million in the first quarter of 2013. Excluding a 1.1 percent net positive effect from acquisitions and divestitures, Bruker reported year-over-year organic revenue growth of 6.6 percent in the first quarter of 2014. Changes in foreign exchange rates had a negligible effect on revenues during the quarter.

Bruker reported first quarter 2014 GAAP operating income of $20.6 million, or 4.9% of revenues, compared to $12.2 million, or 3.1% of revenues, in the first quarter of 2013. First quarter 2014 GAAP earnings per diluted share (EPS) were $0.05, compared to EPS of $0.03 in the first quarter of 2013.

On a non-GAAP basis, Bruker reported first quarter 2014 operating income of $32.1 million, or 7.6% of revenues, compared to $23.6 million, or 6.0% of revenues, in the first quarter of 2013. First quarter 2014 non-GAAP EPS were $0.11, compared to $0.08 in the first quarter of 2013. Free cash flow in the first quarter of 2014 was $9.3 million, a $42.1 million increase compared to ($32.8) million in the first quarter of 2013. A reconciliation of GAAP to non-GAAP financial measures is provided in the Company’s financial tables accompanying this press release.

“Our year is off to a reasonable start, with year-over-year revenue growth and non-GAAP operating margin expansion compared to a relatively weak first quarter of 2013,” said Frank Laukien, President and CEO of Bruker. “Our research, applied and clinical markets are healthy, whereas our industrial markets grew slowly after declining last year. Looking ahead, we remain on track to deliver our full-year 2014 guidance, but we may see variability in our quarterly results.”

Bruker is maintaining its full year 2014 guidance of year-over-year revenue growth of 3 to 4 percent and non-GAAP earnings per share growth of 10 to 14 percent.

“Good revenue growth combined with control over operating expenses enabled us to deliver solid operating margin expansion in the first quarter compared to Q1 2013,” said Charles Wagner, Chief Financial Officer of Bruker. “We generated growth in all of our Groups and drove year-over-year improvements in working capital and free cash flow. Our focus for the remainder of the year will be on continuing to transform our supply chain and launching initiatives that will further lower our production costs.”

Quarterly Earnings Call

Bruker will host a conference call and webcast to discuss its financial results, business outlook, and related corporate and financial matters at 4:45 p.m. Eastern Daylight Time today. To listen to the webcast, investors can go to http://ir.bruker.com and click on the “Events & Presentations” hyperlink. A slide presentation that will be referenced during the webcast will be posted to the Company’s website shortly before the webcast begins. Investors can also listen to the earnings webcast via telephone by dialing 1-877-270-2148 or +1-412-902-6510, and referencing “Bruker’s First Quarter 2014 Earnings Conference Call”. A telephone replay of the conference call will be available by dialing 1-877-344-7529 or +1-412-317-0088 and entering conference number: 10045335. The replay will be available beginning one hour after the end of the conference through May 13, 2014 at 9:00 a.m. EDT.

Use of Non-GAAP Financial Measures

The non-GAAP financial measures used by Bruker Corporation in this press release are non-GAAP gross profit; non-GAAP gross profit margin; non-GAAP operating income; non-GAAP operating margin; non-GAAP interest and other income (expense) net; non-GAAP profit before tax; non-GAAP tax rate; non-GAAP net income; non-GAAP earnings per share; and free cash flow. These non-GAAP measures exclude costs related to restructuring costs, acquisition and related integration expenses, amortization of acquired intangible assets and other costs that are non-recurring in nature. There are limitations in using non-GAAP financial measures as they are not prepared in accordance with U.S. generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies.

We believe that the non-GAAP financial measures provide useful and supplementary information to investors regarding our quarterly and annual performance. It is our belief that these non-GAAP financial measures are particularly important as Bruker implements restructuring initiatives to expand operating margins. The financial impact of these activities, particularly restructuring activities, can be large and may adversely affect the comparability of our results from period-to-period. We define free cash flow as net cash provided by operating activities less additions to property, plant, and equipment. We believe free cash flow is a useful measure to evaluate our business as it indicates the amount of cash generated after additions to property, plant, and equipment that is available for, among other things, strategic acquisitions, investments in our business, and repayment of debt.

We regularly use non-GAAP financial measures internally to understand, manage, and evaluate our business results and make operating decisions. We also measure our employees and compensate them, in part, based on such non-GAAP measures. For the same reasons, we also use this information for our forecasting activities.

Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The non-GAAP financial measures are meant to supplement, and to be viewed in conjunction with, GAAP financial measures. They are limited in value because they exclude charges that have a material effect on our reported results and, therefore, should not be relied upon as the sole financial measures to evaluate our financial results. Investors are encouraged to review the reconciliation of the financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying this press release.

Forward Looking Statements

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 risks and uncertainties that could cause actual results to differ materially from those projected, including, but not limited to, risks and uncertainties relating to adverse changes in conditions in the global economy and volatility in the capital markets, 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, the outcome of any actions that may be taken by government agencies in connection with FCPA compliance matters we have disclosed to them, changes in governmental regulations, realization of anticipated benefits from economic stimulus programs, intellectual property rights, litigation, exposure to foreign currency fluctuations and other risk factors discussed from time to time in our filings with the Securities and Exchange Commission. 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, 2013. We expressly disclaim any intent or obligation to update these forward-looking statements other than as required by law.

-tables follow-

 
Bruker Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
       
(in millions) March 31, December 31,
2014 2013
 
ASSETS
 
Current assets:
Cash and cash equivalents $ 454.0 $ 438.7
Accounts receivable, net 295.0 307.6
Inventories 620.5 589.8
Other current assets   107.2   95.8

Total current assets

1,476.7 1,431.9
 
Property, plant and equipment, net 296.7 299.5
Intangible and other long-term assets   254.3   256.9
 
Total assets $ 2,027.7 $ 1,988.3
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
Current liabilities:
Current portion of long-term debt $ 0.7 $ 0.7
Accounts payable 116.4 74.8
Customer advances 251.2 258.6
Other current liabilities   302.8   314.5
Total current liabilities 671.1 648.6
 
Long-term debt 354.1 354.3
Other long-term liabilities 134.2 135.2
 
Total shareholders' equity   868.3   850.2
 
Total liabilities and shareholders' equity $ 2,027.7 $ 1,988.3
 
Bruker Corporation
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
       
Three Months Ended
(in millions, except per share amounts) March 31,
2014 2013
 
Revenues $ 423.7 $ 393.4
Cost of revenues   244.0     218.9  
 
Gross profit 179.7 174.5
 
Operating expenses:
Selling, general and administrative 109.5 106.8
Research and development 46.0 49.4
Other charges, net   3.6     6.1  
Total operating expenses   159.1     162.3  
 
Operating income 20.6 12.2
 
Interest and other income (expense), net   (4.9 )   (3.9 )
 

Income before income taxes and noncontrolling interest in consolidated subsidiaries

15.7 8.3
Income tax provision   5.7     2.6  
 
Consolidated net income 10.0 5.7

Net income attributable to noncontrolling interests in consolidated subsidiaries

  1.3     0.3  
Net income attributable to Bruker Corporation $ 8.7   $ 5.4  
 

Net income per common share attributable to Bruker Corporation shareholders:

Basic $ 0.05   $ 0.03  
Diluted $ 0.05   $ 0.03  
 
Weighted average common shares outstanding:
Basic   167.3     166.4  
Diluted   169.4     168.1  
 
Bruker Corporation
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
       
(in millions) Three Months Ended March 31,
2014 2013
Cash flows from operating activities:
Consolidated net income $ 10.0 $ 5.7
Adjustments to reconcile consolidated net income to cash flows
from operating activities:
Depreciation and amortization 15.2 15.2
Write-down of demonstration inventories to net realizable value 7.6 7.8
Stock-based compensation expense 2.0 1.8
Deferred income taxes 0.3 (2.6 )
Gain on disposal of product line (0.3 ) (0.9 )
Other non-cash expenses, net 1.0 (0.3 )
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable 12.7 8.7
Inventories (37.9 ) (37.0 )
Accounts payable and accrued expenses 21.9 (7.8 )
Income taxes payable 2.0 (4.0 )
Deferred revenue 5.0 2.9
Customer advances (7.6 ) 3.7
Other changes in operating assets and liabilities, net   (13.4 )   (11.4 )
Net cash provided by (used in) operating activities   18.5     (18.2 )
 
Cash flows from investing activities:
Cash paid for acquisitions, net of cash acquired - (0.8 )
Disposal of product line 0.7 0.5
Purchases of property, plant and equipment (9.2 ) (14.6 )
Sales of property, plant and equipment   0.6     0.6  
Net cash used in investing activities   (7.9 )   (14.3 )
 
Cash flows from financing activities:
Repayment of other debt, net (0.2 ) (0.7 )
Proceeds from issuance of common stock, net 3.0 4.1
Changes in restricted cash   (0.3 )   (3.1 )
Net cash provided by financing activities   2.5     0.3  
Effect of exchange rate changes on cash and cash equivalents   2.2     (9.0 )
Net change in cash and cash equivalents 15.3 (41.2 )
Cash and cash equivalents at beginning of period   438.7     310.6  
Cash and cash equivalents at end of period $ 454.0   $ 269.4  
 
Bruker Corporation
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES* (unaudited)
       
(in millions, except per share amounts) Three Months Ended March 31,
2014 2013
Reconciliation of Non-GAAP Operating Income, Non-GAAP Profit Before Tax, Non-GAAP Net Income, and Non-GAAP EPS
 
GAAP Operating Income $ 20.6 $ 12.2
Non-GAAP Adjustments:
Restructuring Costs 2.4 3.2
Acquisition-Related Costs 1.1 0.6
Purchased Intangible Amortization 5.2 5.1
Other Costs   2.8     2.5  
Total Non-GAAP Adjustments: $ 11.5   $ 11.4  
 
Non-GAAP Operating Income $ 32.1 $ 23.6
Non-GAAP Operating Margin 7.6 % 6.0 %
 
Non-GAAP Interest & Other Income (Expense), net (5.2 ) (4.8 )
Non-GAAP Profit Before Tax 26.9 18.8
 
Non-GAAP Income Tax Provision (6.9 ) (5.1 )
Non-GAAP Tax Rate 25.5 % 27.1 %
 
Minority Interest (1.3 ) (0.3 )
 
Non-GAAP Net Income Attributable to Bruker 18.7 13.4
 
Weighted Average Shares Outstanding (Diluted) 169.4 168.1
   
Non-GAAP Earnings Per Share $ 0.11   $ 0.08  
 
             
Reconciliation of GAAP and Non-GAAP Gross Profit
GAAP Gross Profit $ 179.7 $ 174.5
Non-GAAP Adjustments:
Restructuring Costs 2.2 -
Acquisition-Related Costs 0.5 0.2
Purchased Intangible Amortization   4.8     4.8  
Total Non-GAAP Adjustments:   7.5     5.0  
Non-GAAP Gross Profit $ 187.2 $ 179.5
Non-GAAP Gross Margin       44.2 %       45.6 %
             
Reconciliation of GAAP and Non-GAAP Interest & Other Income (Expense), net
GAAP Interest & Other Income (Expense), net $ (4.9 ) $ (3.9 )
Non-GAAP Adjustments:
Sale of Product Line   (0.3 )   (0.9 )
Non-GAAP Interest & Other Income (Expense), net     $ (5.2 )     $ (4.8 )
 

* Please refer to our press release for a full explanation for the use of non-GAAP measures.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
New Relic, Inc. has announced a set of new features across the New Relic Software Analytics Cloud that offer IT operations teams increased visibility, and the ability to diagnose and resolve performance problems quickly. The new features further IT operations teams’ ability to leverage data and analytics, as well as drive collaboration and a common, shared understanding between teams. Software teams are under pressure to resolve performance issues quickly and improve availability, as the comple...
The proper isolation of resources is essential for multi-tenant environments. The traditional approach to isolate resources is, however, rather heavyweight. In his session at 18th Cloud Expo, Igor Drobiazko, co-founder of elastic.io, will draw upon their own experience with operating a Docker container-based infrastructure on a large scale and present a lightweight solution for resource isolation using microservices. He will also discuss the implementation of microservices in data and applicat...
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
Join IBM June 8 at 18th Cloud Expo at the Javits Center in New York City, NY, and learn how to innovate like a startup and scale for the enterprise. You need to deliver quality applications faster and cheaper, attract and retain customers with an engaging experience across devices, and seamlessly integrate your enterprise systems. And you can't take 12 months to do it.
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, will discuss how research has demonstrated the value of Machine Learning in delivering next generation analytics to im...
This is not a small hotel event. It is also not a big vendor party where politicians and entertainers are more important than real content. This is Cloud Expo, the world's longest-running conference and exhibition focused on Cloud Computing and all that it entails. If you want serious presentations and valuable insight about Cloud Computing for three straight days, then register now for Cloud Expo.
As you respond to increasing requests for new analytics, you need fast and flexible technology in your arsenal so that you can deploy the right workload to the right platform for the need at hand. Do you need self-service and fast time to value? Do you have data and application control and privacy needs, along with strict SLAs to meet? IBM dashDB™ is data warehouse technology powered by in-memory computing and in-database analytics that are designed for fast results, scalability and more.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
IoT device adoption is growing at staggering rates, and with it comes opportunity for developers to meet consumer demand for an ever more connected world. Wireless communication is the key part of the encompassing components of any IoT device. Wireless connectivity enhances the device utility at the expense of ease of use and deployment challenges. Since connectivity is fundamental for IoT device development, engineers must understand how to overcome the hurdles inherent in incorporating multipl...
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, will explain how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
The paradigm has shifted. A Gartner survey shows that 43% of organizations are using or plan to implement the Internet of Things in 2016. However, not just a handful of companies are still using the old-style ad-hoc trial-and-error ways, unaware of the critical barriers, paint points, traps, and hidden roadblocks. How can you become a winner? In his session at @ThingsExpo, Tony Shan will present a methodical approach to guide the holistic adoption and enablement of IoT implementations. This ov...