Bruker BioSciences Reports Solid Revenue Growth and Improved Earnings in Second Quarter 2006.BILLERICA Billerica (bĭlrĭ`kə), town (1990 pop. 37,609), Middlesex co., NE Mass., on the Concord River; settled 1637, inc. 1655. An important high-tech center, its manufactures include computer hardware and software, precision instruments, and , 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 second quarter 2006 results. On July July: see month. 1, 2006, Bruker Bruker originally started as a German company specialized in nuclear magnetic resonance (NMR), but has evolved into an international company with products covering a gamut of biological, chemical and medical fields. There are two companies that carry the Bruker brand. BioSciences completed its 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. Due to the Laukien family majority ownership of both companies, this acquisition is required to be accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. . As a result of this accounting treatment, all historical periods will be restated beginning in the third quarter of 2006 as if the companies had been combined. Presented below first are the results of operations for Bruker BioSciences excluding the results of Bruker Optics for the three and six months ended June June: see month. 30, 2006 and 2005, as will be reported in the Company's second quarter 2006 Form 10-Q Form 10-Q See 10-Q. . Also presented below are combined results of operations, which present the Bruker BioSciences results described above combined with the results of Bruker Optics for the three and six months ended June 30, 2006 and 2005. These combined historical financial statements will be presented in a footnote Text that appears at the bottom of a page that adds explanation. It is often used to give credit to the source of information. When accumulated and printed at the end of a document, they are called "endnotes." to the Company's second quarter 2006 Form 10-Q, and in future 10-Q filings as the combined historical financial statements of Bruker BioSciences. They do not contain any pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma adjustments, as was required for the Company's Proxy Statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. dated May 26, 2006. Bruker BioSciences Results of Operations, Excluding Bruker Optics: For the second quarter of 2006, revenue increased by 9.0% to $77.8 million, compared to revenue of $71.4 million in the second quarter of 2005. Excluding the effects of unfavorable foreign currency translation, second quarter 2006 revenue increased by 9.6% year-over-year. For the six months ended June 30, 2006, revenue increased 4.2% to $152.3 million, compared to $146.3 million for the same period last year. Excluding the effects of unfavorable foreign currency translation, revenue for the six months ended June 30, 2006 increased by 8.3% year-over-year. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net income in the second quarter of 2006 was $0.5 million, or $0.01 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 GAAP net income of $0.3 million, or $0.00 per diluted share, in the second quarter of 2005. Included in second quarter 2006 GAAP net income were $0.2 million of stock-based compensation expense and $1.2 million of acquisition related charges, net of tax. Excluding the acquisition related charges associated with the acquisition of Bruker Optics, second quarter 2006 non-GAAP net income was $1.7 million, or $0.02 per diluted share. GAAP net income for the six months ended June 30, 2006 was $1.3 million, or $0.01 per diluted share, compared to GAAP net income of $0.7 million, or $0.01 per diluted share, during the six months ended June 30, 2005. Included in GAAP net income for the six months ended June 30, 2006 were $0.4 million of stock-based compensation expense and $2.4 million of acquisition related charges, net of tax. Excluding the acquisition related charges, non-GAAP net income for the six months ended June 30, 2006 was $3.6 million, or $0.04 per diluted share. Bruker BioSciences Combined Results of Operations, Including Bruker Optics: For the second quarter of 2006, combined revenue increased by 12.1% to $100.5 million, compared to combined revenue of $89.3 million in the second quarter of 2005. Excluding the effects of unfavorable foreign currency translation, second quarter 2006 combined revenue increased by 12.7% year-over-year. For the six months ended June 30, 2006, combined revenue increased by 8.5% to $195.3 million, compared to $179.7 million for the same period last year. Excluding the effects of unfavorable foreign currency translation, combined revenue for the six months ended June 30, 2006 increased by 12.7% year-over-year. Combined GAAP net income in the second quarter of 2006 was $2.5 million, or $0.02 per diluted share, compared to combined GAAP net income of $1.4 million, or $0.01 per diluted share, in the second quarter of 2005. Included in second quarter 2006 combined GAAP net income were $0.2 million of stock-based compensation expense and $2.8 million of acquisition related charges, net of tax. Excluding the acquisition related charges, second quarter 2006 combined non-GAAP net income was $5.3 million, or $0.05 per diluted share. Combined GAAP net income for the six months ended June 30, 2006 was $5.8 million, or $0.06 per diluted share, compared to combined GAAP net income of $2.7 million, or $0.03 per diluted share, for the six months ended June 30, 2005. Included in combined GAAP net income for the six months ended June 30, 2006 were $0.4 million of stock-based compensation expense and $4.0 million of acquisition related charges, net of tax. Excluding the acquisition related charges, combined non-GAAP net income for the six months ended June 30, 2006 was $9.8 million, or $0.10 per diluted share. Comments and Analysis Commenting on the financial results, 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 second quarter and first six months of 2006 we have experienced solid increases in revenue and also significantly improved profitability. Excluding acquisition related charges and excluding Bruker Optics, our net income for the first six months of 2006 has increased five-fold Adj. 1. five-fold - having five units or components fivefold, quintuple multiple - having or involving or consisting of more than one part or entity or individual; "multiple birth"; "multiple ownership"; "made multiple copies of the speech"; "his multiple . Also still excluding Bruker Optics, our currency-adjusted revenue growth rate has accelerated from 7.1% in the first quarter 2006 to 9.6% in the second quarter 2006. Including Bruker Optics, our combined 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 reached $21.5 million for the first six months of 2006, and $46.1 million for the last twelve months ended June 30, 2006." 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. of 46%, a decreasing effective tax rate of 43% and significantly increased combined earnings per share. We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that for the remainder of 2006 our traditional core businesses, as well as the additional life-science and industrial market segments that we have entered via our recent acquisitions, will enable us to continue above industry-average top-line growth, as well as further improvements in combined profitability compared to 2005." 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 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 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. 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 9 a.m. Eastern Time on Wednesday, August 2, 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 91585873. ABOUT BRUKER BIOSCIENCES Bruker BioSciences Corporation 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 parent company of 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 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 Optics, Inc. Bruker AXS is a leading developer and provider of 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. 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. , and also offers a broad line of chemical, biological, radiological radiological pertaining to radiology. radiological diagnosis see radiological diagnosis. mobile radiological apparatus x-ray machines that can be moved but are not portable because of their weight. and nuclear (CBRN CBRN Chemical, Biological, Radiological, and Nuclear CBRN Caribbean Basin Radar Network ) detection products for 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 . Bruker Optics is a leading developer, manufacturer and provider of research, analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. and process analysis instruments and solutions based on infrared An invisible band of radiation at the lower end of the visible light spectrum. With wavelengths from 750 nm to 1 mm, infrared starts at the end of the microwave spectrum and ends at the beginning of visible light. and Raman molecular spectroscopy spectroscopy Branch of analysis devoted to identifying elements and compounds and elucidating atomic and molecular structure by measuring the radiant energy absorbed or emitted by a substance at characteristic wavelengths of the electromagnetic spectrum (including gamma ray, technology. 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, 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, EXCLUDING BRUKER
OPTICS (in thousands, except per share data)
Three Months Six Months Ended
Ended June 30, June 30,
----------------- -------------------
2006 2005 2006 2005
-------- -------- --------- ---------
Product revenue $67,373 $60,723 $132,330 $127,547
Service revenue 10,234 9,977 19,043 17,732
Other revenue 233 668 877 1,000
-------- -------- --------- ---------
Total revenue 77,840 71,368 152,250 146,279
Cost of product revenue 38,599 34,275 74,841 72,540
Cost of service revenue 5,279 6,548 10,500 11,815
-------- -------- --------- ---------
Total cost of revenue 43,878 40,823 85,341 84,355
-------- -------- --------- ---------
Gross profit margin 33,962 30,545 66,909 61,924
Operating Expenses:
Sales and marketing 15,426 13,385 29,398 25,537
General and administrative 5,532 5,287 11,148 10,955
Research and development 10,619 10,962 20,993 21,982
Acquisition related charges 1,192 - 2,368 -
-------- -------- --------- ---------
Total operating expenses 32,769 29,634 63,907 58,474
-------- -------- --------- ---------
Operating income 1,193 911 3,002 3,450
Interest and other income
(expense), net 459 554 1,122 424
-------- -------- --------- ---------
Income before income tax
provision and minority
interest in consolidated
subsidiaries 1,652 1,465 4,124 3,874
Income tax provision 1,127 1,145 2,775 3,070
-------- -------- --------- ---------
Income before minority interest
in consolidated
subsidiaries 525 320 1,349 804
Minority interest in consolidated
subsidiaries 45 36 93 103
-------- -------- --------- ---------
Net income $480 $284 $1,256 $701
======== ======== ========= =========
Net income per share:
Basic $0.01 $0.00 $0.01 $0.01
======== ======== ========= =========
Diluted $0.01 $0.00 $0.01 $0.01
======== ======== ========= =========
Weighted average shares
outstanding:
Basic 90,080 89,472 90,054 89,471
======== ======== ========= =========
Diluted 90,493 89,599 90,403 89,591
======== ======== ========= =========
Bruker BioSciences Corporation
COMBINED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS,
INCLUDING BRUKER OPTICS (in thousands, except per share data)
Three Months Six Months Ended
Ended June 30, June 30,
----------------- -------------------
2006 2005 2006 2005
-------- -------- --------- ---------
Product revenue $88,381 $76,756 $172,222 $158,018
Service revenue 11,853 11,829 22,224 20,563
Other revenue 249 731 893 1,096
-------- -------- --------- ---------
Total revenue 100,483 89,316 195,339 179,677
Cost of product revenue 47,850 41,327 92,562 86,405
Cost of service revenue 6,433 7,785 12,820 13,522
-------- -------- --------- ---------
Total cost of revenue 54,283 49,112 105,382 99,927
-------- -------- --------- ---------
Gross profit margin 46,200 40,204 89,957 79,750
Operating Expenses:
Sales and marketing 20,900 17,999 39,732 34,576
General and administrative 6,473 6,120 13,080 12,504
Research and development 12,285 12,486 24,560 25,025
Acquisition related charges 3,692 - 4,868 -
-------- -------- --------- ---------
Total operating expenses 43,350 36,605 82,240 72,105
-------- -------- --------- ---------
Operating income 2,850 3,599 7,717 7,645
Interest and other income
(expense), net 2,333 (355) 4,014 (495)
-------- -------- --------- ---------
Income before income tax
provision and minority
interest in consolidated
subsidiaries 5,183 3,244 11,731 7,150
Income tax provision 2,614 1,845 5,854 4,372
-------- -------- --------- ---------
Income before minority interest
in consolidated
subsidiaries 2,569 1,399 5,877 2,778
Minority interest in consolidated
subsidiaries 45 35 93 103
-------- -------- --------- ---------
Net income $2,524 $1,364 $5,784 $2,675
======== ======== ========= =========
Net income per share:
Basic $0.02 $0.01 $0.06 $0.03
======== ======== ========= =========
Diluted $0.02 $0.01 $0.06 $0.03
======== ======== ========= =========
Weighted average shares
outstanding:
Basic 101,456 100,847 101,430 100,847
======== ======== ========= =========
Diluted 101,869 100,974 101,779 100,966
======== ======== ========= =========
Bruker BioSciences Corporation
SELECTED BUSINESS INFORMATION, EXCLUDING BRUKER OPTICS
(in thousands)
Three Months Six Months Ended
Ended June 30, June 30,
----------------- -------------------
2006 2005 2006 2005
-------- -------- --------- ---------
Total revenue $77,840 $71,368 $152,250 $146,279
======== ======== ========= =========
Operating income $1,193 $911 $3,002 $3,450
Depreciation and amortization 1,789 2,583 3,914 4,852
Write-down of demonstration
equipment 1,702 1,904 3,208 3,628
Acquisition related charges 1,192 - 2,368 -
-------- -------- --------- ---------
Adjusted EBITDA $5,876 $5,398 $12,492 $11,930
======== ======== ========= =========
Bruker BioSciences Corporation
SELECTED BUSINESS INFORMATION, INCLUDING BRUKER OPTICS
(in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ -------------------
2006 2005 2006 2005
--------- -------- --------- ---------
Total revenue $100,483 $89,316 $195,339 $179,677
========= ======== ========= =========
Operating income $2,850 $3,599 $7,717 $7,645
Depreciation and amortization 2,581 3,283 5,075 5,852
Write-down of demonstration
equipment 2,002 2,205 3,808 4,228
Acquisition related charges 3,692 - 4,868 -
--------- -------- --------- ---------
Adjusted EBITDA $11,125 $9,087 $21,468 $17,725
========= ======== ========= =========
Bruker BioSciences Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS, EXCLUDING BRUKER OPTICS (in
thousands)
June December
30, 31,
2006 2005
----------- ---------
(unaudited)
ASSETS
Current assets:
Cash and short-term investments $96,596 $99,578
Accounts receivable, net 61,709 53,744
Due from affiliated companies 2,678 4,860
Inventories 103,174 96,333
Other current assets 11,879 11,094
----------- ---------
Total current assets 276,036 265,609
Property and equipment, net 74,864 72,336
Intangible and other assets 28,826 22,942
----------- ---------
Total assets $379,726 $360,887
=========== =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term borrowings $9,613 $8,002
Accounts payable 12,340 14,118
Due to affiliated companies 3,472 3,857
Other current liabilities 90,965 85,551
----------- ---------
Total current liabilities 116,390 111,528
Long-term debt 21,969 21,423
Other long-term liabilities 22,969 19,901
Minority interest in subsidiaries 324 233
Total shareholders' equity 218,074 207,802
----------- ---------
Total liabilities and shareholders' equity $379,726 $360,887
=========== =========
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