Bruker Corporation (Nasdaq: BRKR) today announced financial results for its second quarter and for the six months ended June 30, 2020.
Second Quarter 2020 Financial Results
Bruker’s revenues for the second quarter of 2020 were $424.6 million, a decline of 13.4% compared to the second quarter of 2019. In the second quarter of 2020, revenues declined 12.7% organically year-over-year, growth from acquisitions was 0.4%, while foreign currency translation had a negative effect of 1.1%. The reported and organic revenue declines were primarily due to COVID-19 related disruptions worldwide and softer global instrumentation demand, due to the ongoing pandemic.
Second quarter 2020 GAAP operating income was $37.9 million, compared to $53.5 million in the second quarter of 2019, representing GAAP operating margins of 8.9% and 10.9%, respectively. Non-GAAP operating income was $49.0 million in the second quarter of 2020, compared to $73.7 million in the second quarter of 2019. Bruker’s second quarter 2020 non-GAAP operating margin was 11.5%, compared to 15.0% in the second quarter of 2019.
Second quarter 2020 GAAP diluted earnings per share (EPS) were $0.16, compared to $0.23 in the second quarter of 2019. Second quarter 2020 non-GAAP diluted EPS were $0.21, compared to $0.33 in the second quarter of 2019. The year-over-year declines in the Company’s GAAP and non-GAAP operating income, operating margins and diluted EPS were primarily due to lower revenues associated with COVID-19 disruptions and softer academic and industrial demand, partially offset by Bruker’s cost control and reduction measures.
First Six Months of 2020 Financial Results
For the first six months of 2020, Bruker’s revenues were $848.6 million, a decline of 10.8% from $951.6 million in the first six months of 2019. In the first six months of 2020, revenues declined 10.3% organically year-over-year, growth from acquisitions was 0.6%, while foreign currency translation had a negative effect of 1.1%.
In the first six months of 2020, GAAP operating income was $54.3 million, compared to $95.4 million in the first six months of 2019, representing GAAP operating margins of 6.4% and 10.0%, respectively. Non-GAAP operating income was $81.2 million, compared to $136.0 million in the first six months of 2019. Bruker’s non-GAAP operating margin in the first six months of 2020 was 9.6%, compared to 14.3% in the first six months of 2019.
In the first six months of 2020 GAAP EPS were $0.22, compared to $0.43 in the first six months of 2019. First half 2020 non-GAAP EPS were $0.35, compared to $0.61 in the first half of 2019. The year-over-year declines in the Company’s GAAP and non-GAAP operating income, operating margins and diluted EPS were primarily due to lower revenues and demand during the pandemic.
A reconciliation of non-GAAP to GAAP financial measures is provided in the tables accompanying this press release.
Frank H. Laukien, President and CEO of Bruker, commented: “I am very proud of my 7,000 Bruker colleagues worldwide and of our excellent safety record of protecting employees and families during the pandemic. Our organization has continued to support our customers globally with exemplary dedication. Operationally, we have executed well in challenging times, with many customer laboratories closed or at reduced capacity.”
He continued: “Our second quarter 2020 revenues declined less than the scenarios that we outlined during our last earnings call. Moreover, we were able to mitigate the negative impact of the pandemic on our profitability and cash flow through cost control and cost reduction measures. We continue to invest in our Project Accelerate initiatives, including infectious disease diagnostics, proteomics and metabolomics, and functional structural biology for biopharma therapeutics development and vaccine research. Bruker remains financially healthy and is well-positioned for anticipated improvements in business conditions in the second half of 2020.”
Fiscal Year 2020 (FY 2020) Guidance Remains Suspended
Bruker’s FY 2020 financial guidance remains suspended. While Bruker continues to expect the pandemic to have a negative year-over-year impact on the Company’s third quarter 2020 financial results, Bruker anticipates a sequential improvement in financial results from the second quarter to the third quarter of 2020.
Quarterly Earnings Call
Bruker will host a conference call and webcast to discuss its financial results, business outlook, and related corporate and financial matters today, August 3, at 4:30 p.m. Eastern Daylight Time. To listen to the webcast, investors can go to https://ir.bruker.com and click on the “Q2 2020 Earnings Webcast” hyperlink. A slide presentation that will be referenced during the webcast will be posted to our Investor Relations website shortly before the webcast begins. Investors can also listen to the earnings webcast via telephone by dialing 1-888-437-2685 (US toll free) or +1-412-317-6702 (international) and referencing “Bruker’s Second Quarter 2020 Earnings Conference Call”. A telephone replay of the conference call will be available by dialing 1-877-344-7529 (US toll free) or +1-412-317-0088 (international) and entering conference number 10146589. The replay will be available beginning one hour after the end of the conference call through September 3, 2020.