Bruker BioSciences Reports Significantly Improved Earnings and Cash Flows on Record Revenue of $297.6 Million For Full Year 2005.BILLERICA, Mass. -- Company Reports Four Profitable Quarters and $41 Million Cash Flow from Operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses in 2005 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 fourth quarter 2005 revenue of $80.6 million, compared to revenue of $85.6 million in the fourth quarter of 2004. Excluding foreign currency effects Foreign Currency Effects The extent to which the changes in a foreign currency affects the return on a foreign investment. Notes: Foreign investments are complicated by the currency fluctuation and conversion between countries. , revenue increased by 1%. For the full year 2005, revenue increased 5% to $297.6 million, compared to $284.4 million for the year 2004. Foreign currency effects did not have a material impact on full year revenue. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net income in the fourth quarter of 2005 was $1.9 million, or $0.02 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to a net loss in the fourth quarter of 2004 of ($0.9) million, or ($0.01) per diluted share. GAAP net income for the full year 2005 was $3.6 million, or $0.04 per diluted share, compared to a net loss of ($7.8) million, or ($0.09) per diluted share, for the full year 2004. During the fourth quarter of 2005, positive operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. of $15.4 million increased our cash position to $99.7 million. Cash generated from operations was $41.0 million for the full year 2005, compared to a use of cash of ($0.9) million during the full year 2004, and 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 was $26.9 million for the full year 2005, compared to $16.8 million for 2004. Commenting on the fourth quarter and year 2005, 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: "We have made solid progress in 2005, and I am particularly pleased with our improved profitability and good cash flow in the fourth quarter. Throughout the year 2005, we have improved our 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. and net income by growing revenue, improving our gross margins and by reducing expenses. Our continued commitment to improve our financial performance has resulted in four consecutive quarters of profitability." He continued: "I am also encouraged by the recent considerable strength in our new order bookings and our healthy year-end backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. . We believe that our performance-leading products and solutions, our strengthened global sales and service capabilities, and the additional technologies and accessible market segments from our recent acquisitions position us well for the future. Our financial goals for 2006 are: --revenue growth of approximately 10% compared to 2005, --at least a doubling of our 2005 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. , and --continued strong cash flows from operations. Looking further ahead, in 2007 we expect to reach industry-standard profitability, while maintaining above industry-standard top-line growth." William Knight William Knight may refer to:
n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that in 2006 our core businesses, as well as the additional market segments that we have entered via our recent acquisitions, will both contribute to above industry-average top-line growth and continued improvements in profitability." OPERATING BUSINESSES Set forth below is selected financial information for Bruker BioSciences' two operating businesses: 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. (life science 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. and 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 tools business) 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. (life science, materials research and industrial x-ray X-ray Electromagnetic radiation of extremely short wavelength (100 nanometres to 0.001 nanometre) produced by the deceleration of charged particles or the transitions of electrons in atoms. analysis tools business): BRUKER DALTONICS For the year 2005, revenue for the Bruker Daltonics business increased 6% to $161.4 million, from $152.6 million in 2004, and foreign currency effects were not material. For the year 2005, Bruker Daltonics' revenue was derived 68% from life-science mass spectrometry systems, 12% from NBC detection systems, and 20% from after-market sales. Adjusted EBITDA was $22.1 million for the full year 2005, compared to $15.4 million for 2004. BRUKER AXS For the year 2005, revenue for the Bruker AXS business increased 4% to $137.4 million, from $132.6 million in 2004, and foreign currency effects were not material. For the year 2005, Bruker AXS' revenue was derived 75% from systems sales and 25% from after-market sales. Adjusted EBITDA was $7.6 million for the full year 2005, compared to $4.8 million for 2004. USE OF NON-GAAP FINANCIAL MEASURES In addition to the financial measures prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. 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 (loss) excluding depreciation and amortization expense and write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. 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. . 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 11 a.m. Eastern Standard Time on Thursday, February 23, 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 55966589. 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 Inc. and Bruker AXS 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. Bruker Daltonics also offers a broad line of nuclear, biological and chemical (NBC) 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, 2004, 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 Year Ended
December 31, December 31,
----------------- -----------------
2005 2004 2005 2004
-------- -------- -------- --------
Product revenue $ 71,037 $ 75,222 $259,645 $249,929
Service revenue 9,377 9,444 35,856 32,298
Other revenue 141 972 2,068 2,189
-------- -------- -------- --------
Total revenue 80,555 85,638 297,569 284,416
Cost of product revenue 39,372 41,373 147,364 145,188
Cost of service revenue 7,718 6,547 24,398 20,752
-------- -------- -------- --------
Total cost of revenue 47,090 47,920 171,762 165,940
-------- -------- -------- --------
Gross profit margin 33,465 37,718 125,807 118,476
Operating Expenses:
Sales and marketing 14,056 17,160 51,438 55,976
General and administrative 5,742 5,884 22,374 20,399
Research and development 9,406 12,129 41,357 43,219
-------- -------- -------- --------
Total operating expenses 29,204 35,173 115,169 119,594
-------- -------- -------- --------
Operating income (loss) 4,261 2,545 10,638 (1,118)
Interest and other income
(expense), net 310 (1,011) 1,311 (3,779)
-------- -------- -------- --------
Income (loss) before income tax
provision and minority interest
in consolidated subsidiaries 4,571 1,534 11,949 (4,897)
Income tax provision 2,795 2,470 8,263 2,865
-------- -------- -------- --------
Income (loss) before minority
interest in consolidated
subsidiaries 1,776 (936) 3,686 (7,762)
Minority interest in consolidated
subsidiaries (91) (76) 40 69
-------- -------- -------- --------
Net income (loss) $ 1,867 $ (860) $ 3,646 $ (7,831)
======== ======== ======== ========
Net income (loss) per share:
Basic $ 0.02 $ (0.01) $ 0.04 $ (0.09)
======== ======== ======== ========
Diluted $ 0.02 $ (0.01) $ 0.04 $ (0.09)
======== ======== ======== ========
Weighted average shares
outstanding:
Basic 89,665 89,470 89,521 88,495
======== ======== ======== ========
Diluted 89,859 89,470 89,828 88,495
======== ======== ======== ========
Bruker BioSciences Corporation
BRUKER BIOSCIENCES SELECTED BUSINESS INFORMATION
(in thousands)
Three Months Ended Year Ended
December 31, December 31,
----------------- -----------------
2005 2004 2005 2004
-------- -------- -------- --------
Total revenue $ 80,555 $ 85,638 $297,569 $284,416
======== ======== ======== ========
Operating income (loss) $ 4,261 $ 2,545 $ 10,638 $ (1,118)
Depreciation and amortization 1,907 3,007 8,559 9,494
Write-down of demonstration
equipment 1,977 1,991 7,666 8,441
-------- -------- -------- --------
Adjusted EBITDA $ 8,145 $ 7,543 $ 26,863 $ 16,817
======== ======== ======== ========
Bruker BioSciences Corporation
BRUKER DALTONICS SELECTED OPERATING BUSINESS INFORMATION
(in thousands)
Three Months Ended Year Ended
December 31, December 31,
----------------- -----------------
2005 2004 2005 2004
-------- -------- -------- --------
Total revenue $ 44,402 $ 44,664 $161,356 $152,592
======== ======== ======== ========
Operating income $ 5,537 $ 2,279 $ 12,430 $ 4,063
Depreciation and amortization 1,053 2,009 4,983 5,736
Write-down of demonstration
equipment 1,249 1,326 4,726 5,606
-------- -------- -------- --------
Adjusted EBITDA $ 7,839 $ 5,614 $ 22,139 $ 15,405
======== ======== ======== ========
Bruker BioSciences Corporation
BRUKER AXS SELECTED OPERATING BUSINESS INFORMATION
(in thousands)
Three Months Ended Year Ended
December 31, December 31,
----------------- -----------------
2005 2004 2005 2004
-------- -------- -------- --------
Total revenue $ 36,838 $ 41,772 $137,357 $132,622
======== ======== ======== ========
Operating income (loss) $ (776)$ 1,797 $ 1,059 $ (1,744)
Depreciation and amortization 854 998 3,576 3,758
Write-down of demonstration
equipment 728 665 2,940 2,835
-------- -------- -------- --------
Adjusted EBITDA $ 806 $ 3,460 $ 7,575 $ 4,849
======== ======== ======== ========
Bruker BioSciences Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31,
------------------
2005 2004
-------- --------
ASSETS
Current assets:
Cash and short-term investments $ 99,681 $ 77,691
Accounts receivable, net 53,744 57,792
Due from affiliated companies 4,860 9,530
Inventories 96,333 107,748
Other current assets 11,094 18,530
-------- --------
Total current assets 265,712 271,291
Property and equipment, net 72,336 84,990
Intangible and other assets 22,839 15,266
-------- --------
Total assets $360,887 $371,547
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term borrowings $ 8,002 $ 12,205
Accounts payable 14,117 22,652
Due to affiliated companies 3,857 3,026
Other current liabilities 85,551 73,277
-------- --------
Total current liabilities 111,527 111,160
Long-term debt 21,423 27,763
Other long-term liabilities 19,901 15,156
Minority interest in subsidiaries 233 193
Total shareholders' equity 207,803 217,275
-------- --------
Total liabilities and shareholders' equity $360,887 $371,547
======== ========
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