Bruker first quarter revenue increases 29% to $357.0 million

Bruker Corporation (NASDAQ: BRKR) today reported financial results for the first quarter ended March 31, 2011.

First Quarter 2011 Highlights

• Revenue increased 29% year-over-year to $357.0 million, or by 26% on a currency-adjusted basis
• Adjusted operating income increased by 27% year-over-year to $37.6 million
• Adjusted EPS increased by $0.03 year-over-over to $0.14
• New order bookings increased more than 40% year-over-year, with organic bookings growth of greater than 20% year-over-year
• Moved GC business in The Netherlands to new Bruker factory in January 2011
• Moved GC-MS business in California to new Bruker factory in early April 2011
• Introduced more than 16 new products at Pittcon 2011 and other conferences
• Closed acquisition of Bruker's new radiation detection business in January 2011
• Closed acquisition of Michrom liquid chromatography and ion source technology company on April 1, 2011

Financial Results

In the first quarter of 2011, GAAP revenue was $357.0 million, an increase of 29% compared to revenue of $277.7 million in the first quarter of 2010. Excluding the effects of foreign currency translation, first quarter revenue increased by 26% year-over-year. Adjusted operating income in the first quarter of 2011 was $37.6 million, compared to $29.5 million in the first quarter of 2010, an increase of 27%.

GAAP net income in the first quarter of 2011 was $11.3 million, or $0.07 per diluted share, compared to GAAP net income of $16.1 million, or $0.10 per diluted share, in the first quarter of 2010. Included in Bruker's first quarter 2011 GAAP net income were acquisition related inventory step-ups and other acquisition costs of $6.3 million, non-cash amortization of $3.7 million and stock-based compensation charges of $1.5 million. Adjusted net income in the first quarter of 2011 was $22.8 million, or $0.14 per diluted share, compared to adjusted net income of $18.3 million, or $0.11 per diluted share, in the first quarter of 2010.

Bruker Scientific Instruments (BSI) Segment

In the first quarter of 2011, BSI revenue was $335.8 million, an increase of 29% compared to revenue of $260.3 million in the first quarter of 2010. Excluding the effects of foreign currency translation, BSI revenue in the first quarter increased by 27% year-over-year. Adjusted operating income for BSI increased by 31% in the first quarter of 2011, with an adjusted operating margin of 11.7%, compared to 11.6% in the first quarter of 2010. Adjusted EPS for the BSI segment in the first quarter of 2011 was $0.16 per diluted share, compared to $0.11 per diluted share in the first quarter of 2010.

Bruker Energy & Supercon Technologies (BEST) Segment

In the first quarter of 2011, BEST revenue was $24.0 million, an increase of 16% compared to revenue of $20.7 million in the first quarter of 2010. Excluding the effects of foreign currency translation, BEST revenue in the first quarter increased by 17% year-over-year. In the first quarter of 2011, BEST had an adjusted operating loss of ($0.5) million, compared to an adjusted operating loss of ($0.3) million in the first quarter of 2010. Adjusted net loss per diluted share for the BEST segment in the first quarter of 2011 was ($0.01), compared to ($0.00) in the first quarter of 2010.

Comment and Outlook

Frank Laukien, Bruker's President and CEO, commented: "We are pleased with our first quarter 2011 results, as we delivered solid growth in revenue, adjusted operating margins and earnings year-over-year. Overall our end markets are healthy, and with our 2010 and recent new product introductions and strategic acquisitions, we have further diversified our end markets. As a result, our first quarter 2011 new order bookings have increased by more than 40% over the first quarter of 2010, and we ended the first quarter of 2011 with a new record in backlog. Bruker is very well positioned to continue executing its strategy of rapid, profitable growth and high return on invested capital."

Brian Monahan, Chief Financial Officer of Bruker Corporation, added: "During the first quarter of 2011, we accelerated our strategic investments in research and development, as well as in marketing and sales for our new Chemical & Applied Markets (CAM) division. These investments were predominantly in countries where we were not able to tax-benefit these losses, putting pressure on our first quarter 2011 tax rate. The high GAAP tax rate, combined with foreign exchange losses, negatively affected our EPS by approximately $0.03 in the first quarter of 2011. As a result of our strong revenue, bookings and adjusted operating income momentum, and expected improved tax rate for the remainder of 2011, we confirm our financial goals for the full year 2011."