Bruker BioSciences Reports Solid Revenue Growth and Improved Earnings in Second Quarter 2006
BILLERICA, Mass.--(BUSINESS WIRE)--Aug. 1, 2006--
Bruker BioSciences Corporation (NASDAQ: BRKR) today reported second quarter 2006 results. On July 1, 2006, Bruker BioSciences completed its acquisition of Bruker Optics Inc. Due to the Laukien family majority ownership of both companies, this acquisition is required to be accounted for as a pooling of interests. 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 30, 2006 and 2005, as will be reported in the Company's second quarter 2006 Form 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 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 adjustments, as was required for the Company's Proxy Statement 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 net income in the second quarter of 2006 was $0.5 million, or $0.01 per diluted 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, 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. 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 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, Chief Financial Officer, commented: "I am very pleased that our combined financial results, including Bruker Optics but excluding acquisition related charges, show further improved financial performance for the first six months of 2006, including currency-adjusted revenue growth of 12.7% year-over-year, increasing gross profit margins of 46%, a decreasing effective tax rate of 43% and significantly increased combined earnings per share. We are optimistic 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 with generally accepted accounting principles (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, the write-down of demonstration equipment to net realizable value 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 is the parent company of Bruker AXS Inc., Bruker Daltonics Inc. and Bruker Optics, 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, and also offers a broad line of chemical, biological, radiological and nuclear (CBRN) detection products for homeland security. Bruker Optics is a leading developer, manufacturer and provider of research, analytical and process analysis instruments and solutions based on infrared and Raman molecular spectroscopy 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 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 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 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 and government funding policies, FDA and other regulatory approvals to the extent applicable, competition, the intellectual property of others, patent protection and 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 for the year ended December 31, 2005, our most recent quarterly reports on Form 10-Q, and our current reports on Form 8-K. We disclaim any intent or obligation to update these forward-looking statements.
Condensed consolidated statements of operations, operating business information, and balance sheets follow for Bruker BioSciences Corporation.
CONTACT:
Bruker BioSciences Corporation
Michael Willett, 978-663-3660, ext. 1411
Investor Relations Officer
ir@bruker-biosciences.com
SOURCE:
Bruker BioSciences Corporation
