Bruker first quarter revenue increases 13.6% to $405.6 million

Bruker Corporation (NASDAQ: BRKR) today reported financial results for the first quarter ended March 31, 2012.

First Quarter 2012 Highlights

• Revenue increased 13.6% year-over-year to $405.6 million, or by 13.7% organically
• GAAP operating income increased 33.9% year-over-year to $34.4 million
• Adjusted operating income increased 21.8% year-over-year to $43.6 million
• GAAP net income increased 33.6% year-over-year to $15.1 million
• BSI segment adjusted EPS was $0.15, beating guidance and consensus

Financial Results

In the first quarter of 2012, GAAP revenue was $405.6 million, an increase of 13.6% compared to revenue of $357.0 million in the first quarter of 2011. Excluding the effects of foreign currency translation, first quarter revenue increased by 15.0% year-over-year, and organic growth was 13.7%. GAAP operating income in the first quarter of 2012 was $34.4 million, compared to $25.7 million in the first quarter of 2011, an increase of 33.9%. Adjusted operating income in the first quarter of 2012 was $43.6 million, compared to $35.8 million in the first quarter of 2011, an increase of 21.8%.

GAAP net income in the first quarter of 2012 was $15.1 million, or $0.09 per diluted share, compared to GAAP net income of $11.3 million, or $0.07 per diluted share, in the first quarter of 2011, an increase in net income of 33.6%. Adjusted net income in the first quarter of 2012 was $23.8 million, or $0.14 per diluted share, compared to adjusted net income of $21.3 million, or $0.13 per diluted share, in the first quarter of 2011, an increase in adjusted net income of 11.7%.

For the first quarter of 2012, Bruker's cash flow provided by operations was $4.8 million, compared to cash used in operations of ($29.4) million in the first quarter of 2011.

As of March 31, 2012, Bruker had cash, cash equivalents and restricted cash of $233.1 million, and net debt of $86.5 million.

Bruker Scientific Instruments (BSI) Segment

In the first quarter of 2012, BSI revenue was $378.1 million, an increase of 12.6% compared to revenue of $335.8 million in the first quarter of 2011. Excluding the effects of foreign currency translation, BSI revenue in the first quarter increased by 13.7% year-over-year, and organic growth was 12.4%. Adjusted operating income for BSI increased by 15.9% in the first quarter of 2012 to $43.7 million, compared to $37.7 million in the first quarter of 2011. Adjusted EPS for the BSI segment in the first quarter of 2012 was $0.15 per diluted share, compared to $0.15 per diluted share in the first quarter of 2011.

Bruker Energy & Supercon Technologies (BEST) Segment

In the first quarter of 2012, BEST revenue was $30.0 million, an increase of 25.0% compared to revenue of $24.0 million in the first quarter of 2011. Excluding the effects of foreign currency translation, BEST revenue in the first quarter increased organically by 30.4% year-over-year. In the first quarter of 2012, BEST had adjusted operating income of $0.3 million, compared to an adjusted operating loss of ($0.6) million in the first quarter of 2011. Adjusted net loss per diluted share for the BEST segment in the first quarter of 2012 was ($0.01), compared to ($0.01) in the first quarter of 2011.

Comment and Outlook

Frank Laukien, Bruker's President and CEO, commented: "We are pleased with our first quarter 2012 results, as we delivered 13.7% organic revenue growth, along with double-digit growth in operating income and net income year-over-year. Our backlog continued to grow even further due to excellent first quarter 2012 orders. The tone in many of our end markets has improved since the fourth quarter of 2011, and our focus on new products and innovative solutions for major secular trends in the life and materials sciences and related industries is resulting in excellent, profitable organic growth."

Dr. Laukien continued: "We also continue to expand our addressable markets with new products and applications, along with new product line acquisitions. During the first quarter we purchased SkyScan B.V. which develops, manufactures and distributes advanced, high-resolution micro computed tomography (CT) systems for three-dimensional (3D) X-ray imaging. These products fit nicely into our global materials research and preclinical imaging channels, and complement our other X-ray analysis and preclinical MRI products."

Tom Rosa, the Chief Financial Officer of BEST, added: "Despite excellent progress by BEST in the last three years, in March 2012 we withdrew our S-1 for BEST because of current equity market conditions in our industry sectors, and in order to save on legal, accounting, and other costs associated with keeping the S-1 filing current. Moreover, Bruker Corporation has internally funded much of the major BEST capacity expansion for metallic superconductors, as well as important new product development programs for crystal growth magnets (CGM), inductive superconducting fault current limiters (iSFCL), and next-generation high-temperature superconductor (HTS) scale-up."

Mr. Rosa added: "As a result of the S-1 withdrawal, we can now provide BEST segment guidance: for the year 2012, BEST expects organic revenue growth of 15%, near break-even adjusted operating income, and an adjusted loss per share of ($0.04). We are committed to the success of BEST, as it continues to execute on its rapid growth and emerging profitability strategy."