Bruker Reports Second Quarter 2018 Financial Results
BILLERICA, Mass., Aug. 2, 2018 /PRNewswire/ -- Bruker Corporation (NASDAQ: BRKR) today announced financial results for its second quarter and six months ended June 30, 2018.
Bruker's revenues for the second quarter of 2018 were $443.7 million, an increase of 6.9% compared to the second quarter of 2017. In the second quarter of 2018, Bruker's year-over-year organic revenue growth was 2.9%. Favorable foreign currency translation contributed 3.3% to revenue growth, while growth from acquisitions was 0.7%.
Second quarter 2018 Bruker Scientific Instruments (BSI) segment revenues of $402.4 million increased 11.0%, compared to the second quarter of 2017, including organic growth of 7.1%. Second quarter 2018 BEST segment revenues of $42.7 million declined 20.9%, compared to the second quarter of 2017, including an organic decline, net of intercompany eliminations, of 25.6%.
Second quarter 2018 GAAP operating income was $48.8 million, compared to $35.3 million in the second quarter of 2017. Non-GAAP operating income was $58.9 million, compared to $53.5 million in the second quarter of 2017. On a non-GAAP basis, Bruker's second quarter 2018 operating margin of 13.3% increased 40 basis points, compared to 12.9% in the second quarter of 2017, as operational improvements were offset to a significant extent by a strong unfavorable impact from changes in foreign currency rates.
Second quarter 2018 GAAP diluted earnings per share (EPS) were $0.20, compared to $0.15 in the second quarter of 2017. Second quarter 2018 non-GAAP diluted EPS were $0.25, compared to $0.23 in the second quarter of 2017.
For the first six months of 2018, Bruker's revenues increased 9.5% to $875.4 million, from $799.8 million in the first six months of 2017. In the first six months of 2018, Bruker's year-over-year organic revenue growth was 3.4%. Favorable foreign currency translation contributed 5.5% to revenue growth, while growth from acquisitions was 0.6%.
In the first six months of 2018, BSI segment revenues of $789.4 million increased 11.4%, compared to the first six months of 2017, including organic growth of 5.5%. BEST segment revenues in the first six months of 2018 of $88.3 million declined 6.2% compared to the first six months of 2017, including an organic decline, net of intercompany eliminations, of 12.6%.
In the first six months of 2018, GAAP operating income was $86.9 million, compared to $72.9 million in the first six months of 2017. Non-GAAP operating income was $111.8 million, compared to $102.7 million in the first six months of 2017. On a non-GAAP basis, Bruker's operating margin in the first six months of 2018 was 12.8%, unchanged from the first six months of 2017, as healthy year-over-year operational margin improvements were offset primarily by a strong unfavorable impact from changes in foreign currency rates.
In the first six months of 2018, GAAP EPS were $0.37, compared to $0.28 in the first six months of 2017. Non-GAAP EPS for the first six months of 2018 were $0.49, an increase of 19.5% over $0.41 in the first six months of 2017.
A reconciliation of non-GAAP to GAAP financial measures is provided in the tables accompanying this press release.
Frank Laukien, President and CEO of Bruker, commented: "Bruker had a solid second quarter with good 7% organic revenue growth in our core Scientific Instruments segment, and an expected decline in BEST revenue. For the first half, our non-GAAP operating margin expanded over 100 basis points on a constant currency basis, and our non-GAAP EPS has increased about 20% year-over-year. Given our year-to-date results and favorable bookings trends, we remain confident in our ability to deliver on our financial guidance for the full year 2018."
He continued: "In the second quarter, we have introduced compelling new products in areas with high growth potential, including ourscimaXmagnetic resonance mass spectrometer for metabolomics, new ultra-high sensitivity and high-throughput workflows for ourtimsTOF Profor proteomics, and our novel CE-IVD marked "Bologna workflow" for the fast and cost-effective identification of bloodstream infections and selected antibiotic resistance mechanisms. We remain focused on our dual strategy of portfolio transformation and operational excellence, and we are optimistic about ourProject Acceleratehigh-growth, high-margin initiatives."
Fiscal Year (FY) 2018 Financial Outlook
For FY 2018, the Company now expects revenue growth of approximately 6.5%, including the following updates to prior guidance:
- organic revenue growth of approximately 3.5%, an increase of 50 basis points (bps);
- growth from acquisitions of approximately 1%, an increase of 100 bps; and
- a foreign currency revenue tailwind of approximately 2%, a decrease of 200 bps.
The Company continues to expect an increase in FY 2018 non-GAAP operating margin ranging from 50 bps to 80 bps year-over-year, including an estimated 70 bps headwind from foreign currency translation. Bruker also continues to expect non-GAAP EPS between $1.34 and $1.38 for FY 2018, an 11% to 14% increase compared to FY 2017.
For the Company's outlook for FY 2018 non-GAAP operating margin and non-GAAP EPS, we are not able to provide without unreasonable effort the most directly comparable GAAP financial measures, or reconciliations to such GAAP financial measures on a forward-looking basis. Please see "Use of Non-GAAP Financial Measures" below for a description of items excluded from our expected non-GAAP operating margin and non-GAAP EPS.
