Bruker BioSciences Reports Improved First Quarter 2006 Operating Results and Net Income.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 reported first quarter 2006 revenue of $74.4 million, compared to revenue of $74.9 million in the first quarter of 2005. Excluding the effects of unfavorable foreign currency translation, first quarter 2006 revenue increased by 7% year-over-year. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net income in the first quarter of 2006 was $0.8 million, or $0.01 per diluted share, compared to GAAP net income of $0.4 million, or $0.00 per diluted share, in the first quarter of 2005. Included in first quarter 2006 GAAP net income for the first time were $0.3 million of stock-based compensation expenses due to the adoption of FAS 123R effective January 1st, 2006. Approximately $1.0 million of acquisition related charges, net of tax, are included in GAAP net income in the first quarter of 2006. Excluding these charges, which primarily related to the planned acquisition of Bruker Optics Bruker Optics is a global scientific instrument manufacturer. The company is a part of Bruker Biosciences Corporation (Nasdaq:BRKR) and specializes in vibrational spectroscopy. The Bruker Optics headquarters are in Billerica, MA - USA and Ettlingen, Germany. Inc., first quarter 2006 non-GAAP net income was $1.8 million, or $0.02 per diluted share. During the first quarter of 2006, adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become increased to $6.6 million from $6.5 million in the first quarter of 2005. After the completion of the Socabim acquisition in January 2006, our cash balance at the end of the first quarter 2006 was $96.0 million. Commenting on the quarter, Frank Laukien, President and 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. , said: "During the first quarter of 2006, we continued our 2005 trends of solid revenue and bottom-line growth. Excluding acquisition related expenses, we reached our first quarter 2006 net income goal of $0.02 per diluted share, and we ended the quarter with healthy backlog. For the remainder of 2006, we believe the drivers are in place to continue the positive momentum of the last five quarters. Moreover, in the second half of 2006, we expect the planned Bruker Optics acquisition to be accretive to our non-GAAP net income, after excluding acquisition related charges." William Knight William Knight may refer to:
Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. both year-over-year and sequentially. Our GAAP net income and EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. also improved year-over-year, even after incurring acquisition related expenses and new stock-based compensation charges in the first quarter of 2006. Our cash balance remains strong at the end of the quarter and positions us well for the anticipated acquisition of Bruker Optics, which we expect to close during the summer of 2006." USE OF NON-GAAP FINANCIAL MEASURES In addition to the financial measures prepared in accordance with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP), we use the non-GAAP measure of Adjusted EBITDA. Adjusted EBITDA is defined as US GAAP operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. (loss) excluding depreciation and amortization expense, the write-down of demonstration equipment to net realizable value Net realizable value (NRV) is a commonly used method of evaluating an asset's worth in the field of inventory accounting. NRV is part of GAAP rules that apply to valuing inventory, so as to not overstate or understate the value of inventory goods. and acquisition related charges. We believe that the inclusion of this non-GAAP measure helps investors to gain a better understanding of our core operating results and future prospects, consistent with how management measures and forecasts the Company's performance, especially when comparing such results to previous periods or forecasts. However, the non-GAAP financial measure included in this press release is not meant to be a better presentation or a substitute for results of operations prepared in accordance with GAAP. Reconciliations of this non-GAAP financial measure to the most directly comparable GAAP financial measures are set forth in the accompanying tables. EARNINGS CONFERENCE CALL Bruker BioSciences will host an operator-assisted earnings conference call at 10 a.m. Eastern Standard Time on Wednesday, May 3, 2006. 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 17952370. ABOUT BRUKER BIOSCIENCES Bruker BioSciences Corporation, headquartered in Billerica, Massachusetts Billerica (IPA: [bɪl.'ɹɪ.kə]) is a town in Middlesex County, Massachusetts, United States. The population was 38,981 at the 2000 census. Its name is pronounced "bill-RICK-a", rather than rhyming with America. , is the publicly traded parent company of Bruker Daltonics Bruker Daltonics is a global scientific instrument manufacturer. The company is a part of Bruker Biosciences Corporation (Nasdaq:BRKR) and specializes in mass spectrometry. The Bruker Daltonics headquarters are in Billerica, MA - USA and Bremen, Germany. Inc. and Bruker AXS Bruker AXS is an international instrument manufacturer and supplier. The company is part of Bruker and specialized on Analytical X-Ray Systems. The main parts are the X-Ray diffraction and the X-Ray spectrometry. Inc. Bruker AXS is a leading developer and provider of life science, materials research and industrial X-ray analysis tools. 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 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 products for defense and homeland security Noun 1. Homeland Security - the federal department that administers all matters relating to homeland security Department of Homeland Security executive department - a federal department in the executive branch of the government of the United States . 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's reorganization strategies, integration risks, failure of conditions, technological approaches, product development, market acceptance, cost and pricing of the Company's products, exposure to currency fluctuations, 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 respective annual reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2005, our most recent quarterly reports on Form 10-Q Form 10-Q See 10-Q. , and our current reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. . We disclaim dis·claim v. dis·claimed, dis·claim·ing, dis·claims v.tr. 1. To deny or renounce any claim to or connection with; disown. 2. To deny the validity of; repudiate. 3. any intent or obligation to update these forward-looking statements. Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated statements of operations, operating business information, and balance sheets follow for Bruker BioSciences Corporation.
Bruker BioSciences Corporation
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months
Ended March 31,
-----------------
2006 2005
------- -------
Product revenue $64,957 $66,824
Service revenue 8,809 7,755
Other revenue 644 332
------- -------
Total revenue 74,410 74,911
Cost of product revenue 36,242 38,265
Cost of service revenue 5,221 5,267
------- -------
Total cost of revenue 41,463 43,532
------- -------
Gross profit margin 32,947 31,379
Operating Expenses:
Sales and marketing 13,972 12,152
General and administrative 5,616 5,668
Research and development 10,374 11,020
Acquisition related charges 1,176 -
------- -------
Total operating expenses 31,138 28,840
------- -------
Operating income 1,809 2,539
Interest and other income (expense), net 663 (130)
------- -------
Income before income tax provision and minority
interest in consolidated subsidiaries 2,472 2,409
Income tax provision 1,648 1,925
------- -------
Income before minority interest in consolidated
subsidiaries 824 484
Minority interest in consolidated subsidiaries 48 67
------- -------
Net income $ 776 $ 417
======= =======
Net income per share:
Basic $ 0.01 $ 0.00
======= =======
Diluted $ 0.01 $ 0.00
======= =======
Weighted average shares outstanding:
Basic 90,028 89,471
======= =======
Diluted 90,322 89,581
======= =======
Bruker BioSciences Corporation
BRUKER BIOSCIENCES SELECTED BUSINESS INFORMATION
(in thousands)
Three Months
Ended March 31,
-----------------
2006 2005
------- -------
Total revenue $74,410 $74,911
======= =======
Operating income $ 1,809 $ 2,539
Depreciation and amortization 2,125 2,269
Write-down of demonstration equipment 1,506 1,724
Acquisition related charges 1,176 -
-------- --------
Adjusted EBITDA $ 6,616 $ 6,532
======= =======
Bruker BioSciences Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March December
31, 31,
2006 2005
---------- --------
(unaudited)
ASSETS
Current assets:
Cash and short-term investments $ 95,971 $ 99,578
Accounts receivable, net 55,579 53,744
Due from affiliated companies 2,983 4,860
Inventories 101,569 96,333
Other current assets 14,010 11,094
---------- --------
Total current assets 270,112 265,609
Property and equipment, net 72,817 72,336
Intangible and other assets 27,051 22,942
---------- --------
Total assets $ 369,980 $360,887
========== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term borrowings $ 9,466 $ 8,002
Accounts payable 16,126 14,118
Due to affiliated companies 3,281 3,857
Other current liabilities 85,613 85,551
---------- --------
Total current liabilities 114,486 111,528
Long-term debt 21,372 21,423
Other long-term liabilities 21,467 19,901
Minority interest in subsidiaries 281 233
Total shareholders' equity 212,374 207,802
---------- --------
Total liabilities and shareholders'
equity $ 369,980 $360,887
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