Bruker Corporation (NASDAQ: BRKR) today reported financial results for the three and six months ended June 30, 2010.
“We are also pleased with the continued revenue growth at our BEST segment. In the last five quarters since our Accel acquisition, the BEST external backlog under contract has increased from $14.3 million on March 31, 2009 to over $90 million as of June 30, 2010.”
Second Quarter 2010 Financial Highlights:
- Revenue increased by 19% year-over-year (y-o-y) to $300.9 million, or by 20% y-o-y excluding the effects of acquisitions and foreign currency translation
- Adjusted EPS grew 114% y-o-y to $0.15
- Adjusted operating margin for the Bruker Scientific Instruments (BSI) segment expanded by 650 basis points y-o-y to 15.1%
First Half Year 2010 Financial Highlights:
- Revenue increased by 20% y-o-y to $578.6 million, or by 15% y-o-y excluding the effects of acquisitions and foreign currency translation
- Adjusted EPS grew 92% y-o-y to $0.25
- Adjusted operating margin for the Bruker Scientific Instruments (BSI) segment expanded by 510 basis points y-o-y to 13.1%
Adjusted operating margin and adjusted EPS are non-GAAP measures that exclude certain items detailed later in this press release under the heading "Use of Non-GAAP Financial Measures."
Financial Results
In the second quarter of 2010, revenue was $300.9 million, an increase of 19% compared to revenue of $252.5 million in the second quarter of 2009. Excluding the effects of acquisitions and foreign currency translation, second quarter 2010 revenue increased by 20% year-over-year. GAAP net income for the second quarter of 2010 was $22.6 million, or $0.14 per diluted share, compared to GAAP net income of $12.9 million, or $0.08 per diluted share, in the second quarter of 2009. Adjusted net income for the second quarter of 2010 was $25.0 million, or $0.15 per diluted share, compared to adjusted net income of $12.3 million, or $0.07 per diluted share, in the second quarter of 2009.
For the six months ended June 30, 2010, revenue was $578.6 million, an increase of 20% compared to revenue of $483.0 million in the first half of 2009. Excluding the effects of acquisitions and foreign currency translation, revenue for the first six months of 2010 increased by 15% over the comparable period in 2009. GAAP net income for the six months ended June 30, 2010 was $38.7 million, or $0.23 per diluted share, compared to GAAP net income of $21.3 million, or $0.13 per diluted share, for the six months ended June 30, 2009. Adjusted net income for the six months ended June 30, 2010 was $41.9 million, or $0.25 per diluted share, compared to adjusted net income of $21.5 million, or $0.13 per diluted share, for the six months ended June 30, 2009.
Cash flow from operations for the second quarter of 2010 was $47.6 million, compared to $38.2 million in the second quarter of 2009. In the second quarter, on May 19, 2010, Bruker closed the acquisition of three former Varian, Inc. chemical analysis product lines from Agilent Technologies, Inc., for a cash purchase price of $37.5 million. Bruker ended the second quarter of 2010 with cash, cash equivalents and restricted cash of $190.1 million, and net cash of $63.4 million.
Bruker's trailing twelve months working-capital-per-revenue ratio declined from $0.51 as of June 30, 2009, to $0.44 as of June 30, 2010.
Comment and Outlook
Frank Laukien, President and CEO, commented: "We are extremely pleased with both our second quarter and half year results, with record first half revenues, operating income and earnings per share. The execution by our teams was outstanding and for the second quarter in a row all four operating divisions in our Scientific Instruments segment delivered double-digit organic top-line growth year-over-year. Our new order bookings have been very healthy, as we continue to benefit from additional stimulus orders, with more than $30 million in additional US ARRA funded orders received during the first half of 2010. We have also experienced dramatic bookings growth in some of our industrial analysis product lines, which in the first half of 2010 increased by more than 50% compared to the first half of 2009, and again by more than 10% sequentially compared to the second half of 2009, even though the second half of each year is typically seasonally stronger."