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
With more than 30 Kubernetes solutions in the marketplace, it's tempting to think Kubernetes and the vendor ecosystem has solved the problem of operationalizing containers at scale or of automatically managing the elasticity of the underlying infrastructure that these solutions need to be truly scalable. Far from it. There are at least six major pain points that companies experience when they try to deploy and run Kubernetes in their complex environments. In this presentation, the speaker will d...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Le...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
As Cybric's Chief Technology Officer, Mike D. Kail is responsible for the strategic vision and technical direction of the platform. Prior to founding Cybric, Mike was Yahoo's CIO and SVP of Infrastructure, where he led the IT and Data Center functions for the company. He has more than 24 years of IT Operations experience with a focus on highly-scalable architectures.
CI/CD is conceptually straightforward, yet often technically intricate to implement since it requires time and opportunities to develop intimate understanding on not only DevOps processes and operations, but likely product integrations with multiple platforms. This session intends to bridge the gap by offering an intense learning experience while witnessing the processes and operations to build from zero to a simple, yet functional CI/CD pipeline integrated with Jenkins, Github, Docker and Azure...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Dhiraj Sehgal works in Delphix's product and solution organization. His focus has been DevOps, DataOps, private cloud and datacenters customers, technologies and products. He has wealth of experience in cloud focused and virtualized technologies ranging from compute, networking to storage. He has spoken at Cloud Expo for last 3 years now in New York and Santa Clara.
Enterprises are striving to become digital businesses for differentiated innovation and customer-centricity. Traditionally, they focused on digitizing processes and paper workflow. To be a disruptor and compete against new players, they need to gain insight into business data and innovate at scale. Cloud and cognitive technologies can help them leverage hidden data in SAP/ERP systems to fuel their businesses to accelerate digital transformation success.
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.