Bruker Corporation today reported financial results for the first quarter ended March 31, 2009.
First Quarter 2009 Snapshot
- GAAP Revenue decreased 3.3%
- FX-Adjusted Revenue increased 4.5%
- GAAP Net Income $8.4 million, EPS $0.05 per diluted share
In the first quarter of 2009, revenue was $230.5 million, a decrease of 3.3% compared to revenue of $238.3 in the first quarter of 2008. Excluding the effects of foreign currency translation, first quarter 2009 revenue increased by 4.5% year-over-year.
GAAP net income for the first quarter of 2009 was $8.4 million, or $0.05 per diluted share, compared to a net loss of ($0.8) million, or ($0.00) per diluted share, in the first quarter of 2008.
Free cash flow for the first quarter of 2009 was $9.2 million, compared to $8.9 million in the first quarter of 2008. During the first quarter of 2009, Bruker repaid $20.2 million of debt and ended the quarter with cash and cash equivalents of $149.9 million, and net debt of $53.7 million.
Comment and Outlook
Frank Laukien, President and CEO, commented: “We are pleased with our first quarter 2009 results, given the challenges in the marketplace today. During the first quarter, while we saw softness in our industrial and pharma/biotech orders, we recorded healthy orders from academic, medical school, government and other non-profit customers, which typically account for about two-thirds of Bruker’s revenue. While we continue to be below our gross margin and operating margin goals, we have started to see the effects of our cost-cutting initiatives and we expect to realize further savings in 2009. We continue to rationalize our cost structure, but we also are investing in new opportunities, and have introduced a record number of important new products so far in 2009.”
Dr. Laukien continued with an update on the outlook for 2009: “While certain industrial and pharma market segments this year are even more challenging than we had expected, our non-profit, governmental and other healthcare orders remain strong. For example, we are excited about our double-digit order growth in life-science mass spectrometry, driven by the compelling capabilities of our high-performance products. We also see positive signs as a result of the various international government stimulus packages, which in our opinion will particularly benefit high-end research equipment. In Japan, we have already seen additional orders and revenue, while elsewhere we have experienced a significant increase in requests for proposals and assistance with grant writing. We are hopeful that global stimulus funding for academic, medical and government research will result in additional business for Bruker in the second half of 2009 and into 2010.”
Bruker’s CFO, Bill Knight, added: “The downturn in the global economy is challenging to navigate and revenue was negatively affected by foreign currency headwinds in the first quarter. We continue to explore additional cost savings opportunities, while improving our operational efficiency through product design, production process improvements and enhanced balance sheet management.”