Bruker Corporation (NASDAQ:BRKR) today reported financial results
for the fourth quarter and year ended December 31, 2007, now
including the results of the Bruker BioSpin Group. On February 26,
2008, Bruker BioSciences Corporation closed its acquisition of the
Bruker BioSpin Group, and renamed itself Bruker Corporation. Under
US GAAP, this transaction is accounted for as an acquisition of
businesses under common control, and as a result all one-time
transaction costs are expensed in the period in which they are
incurred, rather than being added to goodwill. In addition, after
the closing of the transaction all historical consolidated balance
sheets, statements of operations, statements of cash flows and
notes to the consolidated financial statements in future filings
with the Securities and Exchange Commission will be restated by
combining the historical consolidated financial statements of
Bruker Corporation with those of the Bruker BioSpin Group. The
information contained herein will discuss the combined financial
results of Bruker Corporation, as it legally exists since the
closing on February 26, 2008, and which now include the financial
results of the Bruker BioSpin Group (�Combined�). These will be
compared in some categories to the historical, standalone financial
results of Bruker BioSciences Corporation, as it legally existed on
December 31, 2007 (�Standalone�). Combined Financial Results of
Bruker Corporation In the fourth quarter of 2007, Combined revenue
increased by 31% to $343.1 million, compared to Combined revenue of
$261.5 million in the fourth quarter of 2006. Excluding the effects
of foreign currency translation, Combined fourth quarter 2007
revenue increased by 22% year-over-year. Combined fourth quarter
2007 revenue of $343.1 million was 87% higher than Standalone
fourth quarter 2007 revenue of $183.7 million, as previously
reported by Bruker BioSciences Corporation. Combined net income in
the fourth quarter of 2007 increased to $37.0 million, or $0.22 per
diluted share, compared to Combined net income of $35.6 million, or
$0.22 per diluted share, in the fourth quarter of 2006. Included in
Combined GAAP net income for the fourth quarter of 2007 were
after-tax charges of $6.9 million, or $0.04 per diluted share, for
expenses related to the acquisition of the Bruker BioSpin Group.
Combined fourth quarter 2007 net income of $37.0 million was 164%
higher than Standalone fourth quarter 2007 net income of $14.0
million, as previously reported by Bruker BioSciences Corporation.
Combined fourth quarter 2007 earnings per diluted share of $0.22
were 69% higher than Standalone fourth quarter 2007 earnings per
diluted share of $0.13, as previously reported by Bruker
BioSciences Corporation. For the full year 2007, Combined revenue
increased by 21% to $1,032.4 million, compared to Combined revenue
of $851.0 million for the full year 2006. Excluding the effects of
foreign currency translation, Combined 2007 revenue increased by
15% year-over-year, including 1% growth from acquisitions, and
organic growth of 14%. Combined 2007 revenue was 89% higher than
Standalone 2007 revenue of $547.6 million, as previously reported
by Bruker BioSciences Corporation. Combined net income in 2007
increased 30% to $97.2 million, or $0.59 per diluted share,
compared to Combined net income of $74.8 million, or $0.47 per
diluted share, in 2006. Included in Combined GAAP net income for
2007 were after-tax charges of $7.4 million, or $0.05 per diluted
share, for expenses related to the acquisition of the Bruker
BioSpin Group. For comparison, included in Combined GAAP net income
for the year 2006 were after-tax charges of $5.0 million, or $0.03
per diluted share, for expenses related to the acquisition of
Bruker Optics, which was completed on July 1, 2006. Combined 2007
net income of $97.2 million was 208% higher than the Standalone
2007 net income of $31.5 million, as previously reported by Bruker
BioSciences Corporation. Combined 2007 earnings per diluted share
of $0.59 were 97% higher than the Standalone 2007 earnings per
diluted share of $0.30, as previously reported by Bruker
BioSciences Corporation. Combined cash flow from operations in 2007
was $127.1 million, compared to $82.8 million in 2006. Combined
free cash flow, defined as operating cash flow less capital
expenditures, was $101.8 million during 2007, compared to $61.7
million during 2006. As of December 31, 2007, the Combined Bruker
Corporation had net cash of $290.4 million. Comment and Outlook
Frank Laukien, President and CEO, commented: �The addition of the
Bruker BioSpin Group to Bruker Corporation represents a significant
step-up in our combined financial performance. We are extremely
pleased that our overall rapid growth has enabled the Combined
Bruker to cross the billion-dollar-revenue threshold already in
2007, with Combined, currency-adjusted 2007 revenue growth of 15%.
Moreover, we have reached new levels of profitability and cash flow
with Combined 2007 Bruker net income of $97 million and free cash
flow of $102 million. Our Combined 2007 GAAP EPS of $0.59 was
nearly twice the previously reported Standalone 2007 EPS of $0.30
of Bruker BioSciences Corporation.� Bill Knight, CFO, continued
with an outlook for the year 2008: �Our markets in 2007 were
strong, yet going forward there is considerable economic
uncertainty. Under the assumption that the overall market
conditions we face will not deteriorate significantly, our
financial goals for the full year 2008 include: revenue growth
greater than 8%, operating margins greater than 14%, excluding
expenses associated with the acquisition of the Bruker BioSpin
Group, net income margins greater than 9%, excluding expenses
associated with the acquisition of the Bruker BioSpin Group, and
improved balance sheet metrics and operating cash flows. It should
be kept in mind that with the addition of the Bruker BioSpin Group,
we expect that quarterly fluctuations in our financial results will
increase.� EARNINGS CONFERENCE CALL Bruker Corporation will host an
operator-assisted earnings conference call at 8 a.m. Eastern Time
on Monday, March 17, 2008. To listen to the webcast, investors can
go to www.bruker.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 Corporation
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 13763010. ABOUT
BRUKER CORPORATION (NASDAQ:BRKR) As of February 26, 2008, Bruker
Corporation has become the parent company of the entire Bruker
group of companies. Bruker Corporation now operates in two
segments, the life science and analytical (LSA) systems segment,
and the international advanced superconductor (IAS) segment. For
more information, please visit www.bruker.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 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,
changes in governmental regulations, intellectual property rights,
litigation, and exposure to foreign currency fluctuations. 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, 2006, 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 other than as required by law. Bruker
Corporation (including Bruker BioSpin Group)CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS(in thousands, except per share data) � � �
� � � � � Three Months EndedDecember 31, Twelve Months
EndedDecember 31, � 2007 � 2006 � 2007 � 2006 � � Product revenue $
303,875 $ 233,845 $ 913,238 $ 758,532 Service revenue 37,758 25,938
115,419 87,873 Other revenue � 1,438 � � 1,762 � � 3,791 � � 4,602
� Total revenue 343,071 261,545 1,032,448 851,007 � Cost of product
revenue 157,207 115,539 489,246 399,182 Cost of service revenue �
24,407 � � 15,991 � � 73,591 � � 53,207 � Total cost of revenue �
181,614 � � 131,530 � � 562,837 � � 452,389 � � Gross profit margin
161,457 130,015 469,611 398,618 Operating Expenses: Sales and
marketing 45,965 39,069 156,783 131,393 General and administrative
17,165 14,739 59,600 51,853 Research and development 30,289 27,227
110,751 102,611 Acquisition related charges � 6,868 � � (105 ) �
7,412 � � 5,724 � Total operating expenses � 100,287 � � 80,930 � �
334,546 � � 291,581 � � Operating income 61,170 49,085 135,065
107,037 � Interest and other income (expense), net � 1,206 � �
(1,493 ) � 5,750 � � 4,716 � � Income before income tax provision
and minority interest in consolidated subsidiaries 62,376 47,592
140,815 111,753 Income tax provision � 25,378 � � 12,043 � � 43,278
� � 36,927 � � � Income before minority interest in consolidated
subsidiaries 36,998 35,549 97,537 74,826 Minority interest in
consolidated subsidiaries � 44 � � (67 ) � 299 � � 8 � Net income $
36,954 � $ 35,616 � $ 97,238 � $ 74,818 � � Net income per share:
Basic $ 0.23 � $ 0.22 � $ 0.60 � $ 0.47 � Diluted $ 0.22 � $ 0.22 �
$ 0.59 � $ 0.47 � � Weighted average shares outstanding: Basic �
162,053 � � 159,046 � � 161,247 � � 159,057 � Diluted � 164,725 � �
160,915 � � 164,314 � � 160,106 � Bruker Corporation (including
Bruker BioSpin Group)CONDENSED CONSOLIDATED BALANCE SHEETS(in
thousands) � � � � December 31, � December 31, 2007 2006 ASSETS �
Current assets: Cash and short-term investments $ 344,504 $ 325,689
Accounts receivable, net 185,217 147,693 Inventories 447,688
408,892 Other current assets � 57,288 � 46,306 Total current assets
1,034,697 928,580 � Property and equipment, net 207,588 190,442
Intangible and other assets � 69,346 � 57,558 � Total assets $
1,311,631 $ 1,176,580 LIABILITIES AND SHAREHOLDERS' EQUITY �
Current liabilities: Short-term borrowings $ 34,846 $ 27,190
Accounts payable 52,293 46,407 Other current liabilities � 474,052
� 430,821 Total current liabilities 561,191 504,418 � Long-term
debt 6,394 26,995 Other long-term liabilities 107,656 71,648
Minority interest in subsidiaries 538 239 � Total shareholders'
equity � 635,852 � 573,280 � Total liabilities and shareholders'
equity $ 1,311,631 $ 1,176,580
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