Bruker BioSciences Announces Phase II of its Productivity Initiative.BILLERICA, Mass. -- Bruker BioSciences Corporation Bruker Biosciences Corporation is a Massachusetts-based company formed in 2003 which develops and manufactures scientific instrumentation for academic research and industrial use. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : BRKR BRKR Breaker ) today announces phase II of its productivity initiative with the objective of accelerating the Company's drive towards sustained and growing profitability while continuing its fast revenue growth. Phase I of this initiative was announced on September 10, 2004 with anticipated annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. cost savings of $6 million. The phase II restructuring and cost-cutting steps announced here are expected to generate additional annualized cost savings of approximately $3 million, once fully implemented in the second half of 2005. In particular, Bruker Daltonics is consolidating its German administrative and life-science business activities at its Bremen location, while the German NBC NBC in full National Broadcasting Co. Major U.S. commercial broadcasting company. It was formed in 1926 by RCA Corp., General Electric Co. (GE), and Westinghouse and was the first U.S. company to operate a broadcast network. detection business will be consolidated at its Leipzig site. Bruker AXS and Bruker Daltonics will combine their UK operations at a common site in Coventry. Moreover, the Company has incorporated several direct sales subsidiaries in countries where the business volume has reached critical mass, in order to improve profit margins. Finally, selected cost-cutting steps are being implemented throughout the organization, particularly at the two non-profitable U.S. operating subsidiaries. In addition, in phase II the Company is also implementing a series of temporary cost cuts of approximately $1 million for the year 2005, primarily in its U.S. operations. These cuts include voluntary temporary reductions of U.S. senior management compensation at the Billerica headquarters by 10-15%, and by 20% for the CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . Frank Laukien, President and CEO, commented: "We continue to make progress with our serious commitment to drive the profitability of Bruker BioSciences towards industry standard levels. Many of the drivers for gross margin improvements and the leveraging of our R&D and S,G&A expenses with top-line growth have been in place for some time, and remain the key to our three-year plan for growth in profitability. However, our anticipated top-line growth and gross margin expansion also need to be complemented by serious continued cost-cutting efforts. I am very pleased with our management team's efforts to plan and implement phase I and now phase II of our productivity initiative." ABOUT BRUKER BIOSCIENCES Bruker BioSciences Corporation, headquartered in Billerica, Massachusetts, is the publicly traded parent company of Bruker Daltonics Inc. and Bruker AXS Inc. Bruker AXS is a leading developer and provider of life science and advanced materials research tools based on x-ray technology. Bruker Daltonics is a leading developer and provider of innovative life science tools based on mass spectrometry mass spectrometry or mass spectroscopy Analytic technique by which chemical substances are identified by sorting gaseous ions by mass using electric and magnetic fields. . Bruker Daltonics also offers a broad line of nuclear, biological and chemical (NBC) detection products for defense and homeland security. 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 The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 Company's reorganization strategies, integration risks, failure of conditions, technological approaches, product development, market acceptance, cost and pricing of the Company's products, changes in governmental regulations, capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. and government funding policies, FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. and other regulatory approvals to the extent applicable, competition, the intellectual property of others, patent protection and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . 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, 2003, 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. |
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