SYS-CON MEDIA Authors: Pat Romanski, Elizabeth White, Yeshim Deniz, Nikita Ivanov, Sean Houghton

News Feed Item

Bruker Reports First Quarter 2014 Financial Results

Bruker Corporation (NASDAQ: BRKR) today reported financial results for its first quarter ended March 31, 2014.

Bruker’s revenues for the first quarter of 2014 grew by 7.7 percent to $423.7 million, compared to $393.4 million in the first quarter of 2013. Excluding a 1.1 percent net positive effect from acquisitions and divestitures, Bruker reported year-over-year organic revenue growth of 6.6 percent in the first quarter of 2014. Changes in foreign exchange rates had a negligible effect on revenues during the quarter.

Bruker reported first quarter 2014 GAAP operating income of $20.6 million, or 4.9% of revenues, compared to $12.2 million, or 3.1% of revenues, in the first quarter of 2013. First quarter 2014 GAAP earnings per diluted share (EPS) were $0.05, compared to EPS of $0.03 in the first quarter of 2013.

On a non-GAAP basis, Bruker reported first quarter 2014 operating income of $32.1 million, or 7.6% of revenues, compared to $23.6 million, or 6.0% of revenues, in the first quarter of 2013. First quarter 2014 non-GAAP EPS were $0.11, compared to $0.08 in the first quarter of 2013. Free cash flow in the first quarter of 2014 was $9.3 million, a $42.1 million increase compared to ($32.8) million in the first quarter of 2013. A reconciliation of GAAP to non-GAAP financial measures is provided in the Company’s financial tables accompanying this press release.

“Our year is off to a reasonable start, with year-over-year revenue growth and non-GAAP operating margin expansion compared to a relatively weak first quarter of 2013,” said Frank Laukien, President and CEO of Bruker. “Our research, applied and clinical markets are healthy, whereas our industrial markets grew slowly after declining last year. Looking ahead, we remain on track to deliver our full-year 2014 guidance, but we may see variability in our quarterly results.”

Bruker is maintaining its full year 2014 guidance of year-over-year revenue growth of 3 to 4 percent and non-GAAP earnings per share growth of 10 to 14 percent.

“Good revenue growth combined with control over operating expenses enabled us to deliver solid operating margin expansion in the first quarter compared to Q1 2013,” said Charles Wagner, Chief Financial Officer of Bruker. “We generated growth in all of our Groups and drove year-over-year improvements in working capital and free cash flow. Our focus for the remainder of the year will be on continuing to transform our supply chain and launching initiatives that will further lower our production costs.”

Quarterly Earnings Call

Bruker will host a conference call and webcast to discuss its financial results, business outlook, and related corporate and financial matters at 4:45 p.m. Eastern Daylight Time today. To listen to the webcast, investors can go to http://ir.bruker.com and click on the “Events & Presentations” hyperlink. A slide presentation that will be referenced during the webcast will be posted to the Company’s website shortly before the webcast begins. Investors can also listen to the earnings webcast via telephone by dialing 1-877-270-2148 or +1-412-902-6510, and referencing “Bruker’s First Quarter 2014 Earnings Conference Call”. A telephone replay of the conference call will be available by dialing 1-877-344-7529 or +1-412-317-0088 and entering conference number: 10045335. The replay will be available beginning one hour after the end of the conference through May 13, 2014 at 9:00 a.m. EDT.

Use of Non-GAAP Financial Measures

The non-GAAP financial measures used by Bruker Corporation in this press release are non-GAAP gross profit; non-GAAP gross profit margin; non-GAAP operating income; non-GAAP operating margin; non-GAAP interest and other income (expense) net; non-GAAP profit before tax; non-GAAP tax rate; non-GAAP net income; non-GAAP earnings per share; and free cash flow. These non-GAAP measures exclude costs related to restructuring costs, acquisition and related integration expenses, amortization of acquired intangible assets and other costs that are non-recurring in nature. There are limitations in using non-GAAP financial measures as they are not prepared in accordance with U.S. generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies.

We believe that the non-GAAP financial measures provide useful and supplementary information to investors regarding our quarterly and annual performance. It is our belief that these non-GAAP financial measures are particularly important as Bruker implements restructuring initiatives to expand operating margins. The financial impact of these activities, particularly restructuring activities, can be large and may adversely affect the comparability of our results from period-to-period. We define free cash flow as net cash provided by operating activities less additions to property, plant, and equipment. We believe free cash flow is a useful measure to evaluate our business as it indicates the amount of cash generated after additions to property, plant, and equipment that is available for, among other things, strategic acquisitions, investments in our business, and repayment of debt.

We regularly use non-GAAP financial measures internally to understand, manage, and evaluate our business results and make operating decisions. We also measure our employees and compensate them, in part, based on such non-GAAP measures. For the same reasons, we also use this information for our forecasting activities.

Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The non-GAAP financial measures are meant to supplement, and to be viewed in conjunction with, GAAP financial measures. They are limited in value because they exclude charges that have a material effect on our reported results and, therefore, should not be relied upon as the sole financial measures to evaluate our financial results. Investors are encouraged to review the reconciliation of the financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying this press release.

Forward Looking Statements

Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are based on current expectations, but are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including, but not limited to, risks and uncertainties relating to adverse changes in conditions in the global economy and volatility in the capital markets, the integration of businesses we have acquired or may acquire in the future, changing technologies, product development and market acceptance of our products, the cost and pricing of our products, manufacturing, competition, dependence on collaborative partners and key suppliers, capital spending and government funding policies, the outcome of any actions that may be taken by government agencies in connection with FCPA compliance matters we have disclosed to them, changes in governmental regulations, realization of anticipated benefits from economic stimulus programs, intellectual property rights, litigation, exposure to foreign currency fluctuations and other risk factors discussed from time to time in our filings with the Securities and Exchange Commission. These and other factors are identified and described in more detail in our filings with the SEC, including, without limitation, our annual report on Form 10-K for the year ended December 31, 2013. We expressly disclaim any intent or obligation to update these forward-looking statements other than as required by law.

-tables follow-

 
Bruker Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
       
(in millions) March 31, December 31,
2014 2013
 
ASSETS
 
Current assets:
Cash and cash equivalents $ 454.0 $ 438.7
Accounts receivable, net 295.0 307.6
Inventories 620.5 589.8
Other current assets   107.2   95.8

Total current assets

1,476.7 1,431.9
 
Property, plant and equipment, net 296.7 299.5
Intangible and other long-term assets   254.3   256.9
 
Total assets $ 2,027.7 $ 1,988.3
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
Current liabilities:
Current portion of long-term debt $ 0.7 $ 0.7
Accounts payable 116.4 74.8
Customer advances 251.2 258.6
Other current liabilities   302.8   314.5
Total current liabilities 671.1 648.6
 
Long-term debt 354.1 354.3
Other long-term liabilities 134.2 135.2
 
Total shareholders' equity   868.3   850.2
 
Total liabilities and shareholders' equity $ 2,027.7 $ 1,988.3
 
Bruker Corporation
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
       
Three Months Ended
(in millions, except per share amounts) March 31,
2014 2013
 
Revenues $ 423.7 $ 393.4
Cost of revenues   244.0     218.9  
 
Gross profit 179.7 174.5
 
Operating expenses:
Selling, general and administrative 109.5 106.8
Research and development 46.0 49.4
Other charges, net   3.6     6.1  
Total operating expenses   159.1     162.3  
 
Operating income 20.6 12.2
 
Interest and other income (expense), net   (4.9 )   (3.9 )
 

Income before income taxes and noncontrolling interest in consolidated subsidiaries

15.7 8.3
Income tax provision   5.7     2.6  
 
Consolidated net income 10.0 5.7

Net income attributable to noncontrolling interests in consolidated subsidiaries

  1.3     0.3  
Net income attributable to Bruker Corporation $ 8.7   $ 5.4  
 

Net income per common share attributable to Bruker Corporation shareholders:

Basic $ 0.05   $ 0.03  
Diluted $ 0.05   $ 0.03  
 
Weighted average common shares outstanding:
Basic   167.3     166.4  
Diluted   169.4     168.1  
 
Bruker Corporation
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
       
(in millions) Three Months Ended March 31,
2014 2013
Cash flows from operating activities:
Consolidated net income $ 10.0 $ 5.7
Adjustments to reconcile consolidated net income to cash flows
from operating activities:
Depreciation and amortization 15.2 15.2
Write-down of demonstration inventories to net realizable value 7.6 7.8
Stock-based compensation expense 2.0 1.8
Deferred income taxes 0.3 (2.6 )
Gain on disposal of product line (0.3 ) (0.9 )
Other non-cash expenses, net 1.0 (0.3 )
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable 12.7 8.7
Inventories (37.9 ) (37.0 )
Accounts payable and accrued expenses 21.9 (7.8 )
Income taxes payable 2.0 (4.0 )
Deferred revenue 5.0 2.9
Customer advances (7.6 ) 3.7
Other changes in operating assets and liabilities, net   (13.4 )   (11.4 )
Net cash provided by (used in) operating activities   18.5     (18.2 )
 
Cash flows from investing activities:
Cash paid for acquisitions, net of cash acquired - (0.8 )
Disposal of product line 0.7 0.5
Purchases of property, plant and equipment (9.2 ) (14.6 )
Sales of property, plant and equipment   0.6     0.6  
Net cash used in investing activities   (7.9 )   (14.3 )
 
Cash flows from financing activities:
Repayment of other debt, net (0.2 ) (0.7 )
Proceeds from issuance of common stock, net 3.0 4.1
Changes in restricted cash   (0.3 )   (3.1 )
Net cash provided by financing activities   2.5     0.3  
Effect of exchange rate changes on cash and cash equivalents   2.2     (9.0 )
Net change in cash and cash equivalents 15.3 (41.2 )
Cash and cash equivalents at beginning of period   438.7     310.6  
Cash and cash equivalents at end of period $ 454.0   $ 269.4  
 
Bruker Corporation
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES* (unaudited)
       
(in millions, except per share amounts) Three Months Ended March 31,
2014 2013
Reconciliation of Non-GAAP Operating Income, Non-GAAP Profit Before Tax, Non-GAAP Net Income, and Non-GAAP EPS
 
GAAP Operating Income $ 20.6 $ 12.2
Non-GAAP Adjustments:
Restructuring Costs 2.4 3.2
Acquisition-Related Costs 1.1 0.6
Purchased Intangible Amortization 5.2 5.1
Other Costs   2.8     2.5  
Total Non-GAAP Adjustments: $ 11.5   $ 11.4  
 
Non-GAAP Operating Income $ 32.1 $ 23.6
Non-GAAP Operating Margin 7.6 % 6.0 %
 
Non-GAAP Interest & Other Income (Expense), net (5.2 ) (4.8 )
Non-GAAP Profit Before Tax 26.9 18.8
 
Non-GAAP Income Tax Provision (6.9 ) (5.1 )
Non-GAAP Tax Rate 25.5 % 27.1 %
 
Minority Interest (1.3 ) (0.3 )
 
Non-GAAP Net Income Attributable to Bruker 18.7 13.4
 
Weighted Average Shares Outstanding (Diluted) 169.4 168.1
   
Non-GAAP Earnings Per Share $ 0.11   $ 0.08  
 
             
Reconciliation of GAAP and Non-GAAP Gross Profit
GAAP Gross Profit $ 179.7 $ 174.5
Non-GAAP Adjustments:
Restructuring Costs 2.2 -
Acquisition-Related Costs 0.5 0.2
Purchased Intangible Amortization   4.8     4.8  
Total Non-GAAP Adjustments:   7.5     5.0  
Non-GAAP Gross Profit $ 187.2 $ 179.5
Non-GAAP Gross Margin       44.2 %       45.6 %
             
Reconciliation of GAAP and Non-GAAP Interest & Other Income (Expense), net
GAAP Interest & Other Income (Expense), net $ (4.9 ) $ (3.9 )
Non-GAAP Adjustments:
Sale of Product Line   (0.3 )   (0.9 )
Non-GAAP Interest & Other Income (Expense), net     $ (5.2 )     $ (4.8 )
 

* Please refer to our press release for a full explanation for the use of non-GAAP measures.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
There's Big Data, then there's really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at Big Data Expo®, Hannah Smalltree, Director at Treasure Data, discussed how IoT, Big D...
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the ...
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
The 4th International DevOps Summit, co-located with16th International Cloud Expo – being held June 9-11, 2015, at the Javits Center in New York City, NY – announces that its Call for Papers is now open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's large...
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Ar...
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective ...
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using ...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series dat...
"SAP had made a big transition into the cloud as we believe it has significant value for our customers, drives innovation and is easy to consume. When you look at the SAP portfolio, SAP HANA is the underlying platform and it powers all of our platforms and all of our analytics," explained Thorsten Leiduck, VP ISVs & Digital Commerce at SAP, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SAP is delivering break-through innovation combined with fantastic user experience powered by the market-leading in-memory technology, SAP HANA. In his General Session at 15th Cloud Expo, Thorsten Leiduck, VP ISVs & Digital Commerce, SAP, discussed how SAP and partners provide cloud and hybrid cloud solutions as well as real-time Big Data offerings that help companies of all sizes and industries run better. SAP launched an application challenge to award the most innovative SAP HANA and SAP HANA...
Fundamentally, SDN is still mostly about network plumbing. While plumbing may be useful to tinker with, what you can do with your plumbing is far more intriguing. A rigid interpretation of SDN confines it to Layers 2 and 3, and that's reasonable. But SDN opens opportunities for novel constructions in Layers 4 to 7 that solve real operational problems in data centers. "Data center," in fact, might become anachronistic - data is everywhere, constantly on the move, seemingly always overflowing. Net...
What do a firewall and a fortress have in common? They are no longer strong enough to protect the valuables housed inside. Like the walls of an old fortress, the cracks in the firewall are allowing the bad guys to slip in - unannounced and unnoticed. By the time these thieves get in, the damage is already done and the network is already compromised. Intellectual property is easily slipped out the back door leaving no trace of forced entry. If we want to reign in on these cybercriminals, it's hig...