Bruker Daltonics Reports Product Revenue Growth in Second Quarter 2000

Business Wire, August 11, 2000

Business/Technology Editors

BILLERICA, Mass.--(BUSINESS WIRE)--Aug. 11, 2000

Bruker Daltonics Inc. (NASDAQ: BDAL) today reported results for its second quarter 2000 and the six months ended June 30, 2000.

For the three months ended June 30, 2000, Bruker Daltonics reported product revenues of $17.1 million compared to $14.1 million for the comparable period in 1999, including unfavorable currency effects. Second quarter product revenue growth before currency effects would have been 34% over the prior year. When compared to adjusted revenue of $10.1 million for the second quarter 1999, which does not include a one-time substance detection production contract for the U.S. Department of Defense (DoD), the product revenue growth for the second quarter 2000 was 69%, including currency effects.

Operating EBIT, including grant revenue, for the second quarter 2000 was at $0.45 million compared to $0.47 million for the comparable period in 1999. Operating EBIT, not including grant revenue, for the second quarter 2000 was at breakeven compared to negative operating EBIT of $1.2 million for the comparable period in 1999. Net income from continuing operations, after provision for taxes, for the quarter was $0.12 million as compared to $0.14 million for the comparable period in 1999.

The increase in revenues is principally due to the strong demand for our life science products with new and existing customers. Life science product revenue and substance detection product revenue as a percentage of product revenues were 70.2% and 29.8%, respectively for the three months ended June 30, 2000, as compared to 25.7% and 74.3% in the comparable period in 1999, respectively.

For the six months ended June 30, 2000, Bruker Daltonics reported product revenues of $31.1 million compared to $24.9 million for the comparable period in 1999, including unfavorable currency effects. Six months product revenue growth before currency effects would have been 34% over the prior year. When compared to adjusted revenue of $20.2 million for the first six months of 1999, which does not include the same one-time substance detection production contract for the DoD, the product revenue growth for the first six months was 54%, including currency effects.

Operating EBIT, including grant revenue, for the first six months of 2000 was at $0.90 million compared to $0.37 million for the comparable period in 1999. Operating EBIT, not including grant revenue, for the first six months of 2000 was a negative EBIT of $0.12 million compared to a negative EBIT of $2.3 million for the comparable period in 1999. Net income from continuing operations, after provision for taxes, for the six months ended June 30, 2000 was $0.26 million as compared to $0.03 million for the comparable period in 1999.

Frank H. Laukien, Ph.D., President and Chief Executive Officer, said: "As anticipated, our product revenue in the second quarter 2000, as well as for the first six months of this year, continued to grow strongly. We are particularly pleased with the rapid growth of our life science systems product revenue. Despite our already considerable and growing investment in research and development of new products and applications, and our growing marketing and sales expenses in conjunction with our continuing investment in worldwide distribution, we are pleased to report that we again were profitable in each of the first two quarters of 2000. Moreover, our life science new order bookings growth in both quarters was robust."

NOTE: At this time, Bruker Daltonics is still in the 25 day post-IPO quiet period imposed by the U.S. Securities and Exchange Commission. Accordingly, for the second quarter 2000 Bruker Daltonics will not be hosting a conference call in conjunction with its earnings release.

Bruker Daltonics is a leading developer and provider of innovative life science tools based on mass spectrometry. Its substantial investment in research and development allows it to design, manufacture and market a broad array of products intended to meet the rapidly growing needs of a diverse customer base, including pharmaceutical companies, biotechnology companies, agricultural biotechnology companies, molecular diagnostics companies, academic institutions and government agencies. Bruker Daltonics has diverse technology platforms which integrate automated sample preparation and clean-up, advanced front-end AnchorChip MALDI targets and API source technology with cutting-edge proprietary MALDI-TOF, ESI-TOF, ion trap and FTMS mass analyzers, as well as analysis and bioinformatics software. Bruker Daltonics is also a worldwide leader in supplying mass spectrometry-based systems for substance detection and pathogen identification in security and defense applications.

All statements in this press release that are not historical are forward- looking statements within the meaning of the Securities Exchange Act of 1934, as amended, including, but not limited to, statements regarding Bruker Daltonics' "expectations," "beliefs," "hopes," "intentions," "strategies" or the like. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially for Bruker Daltonics from those projected, including, but not limited to, risks and uncertainties relating to technological approaches, product development, manufacturing, market acceptance, cost and pricing of Bruker Daltonics' products, dependence on collaborative partners, suppliers, FDA and other regulatory approvals to the extent applicable, competition, the intellectual property of others, patent protection and litigation and other risk factors discussed from time to time in Bruker Daltonics' reports or filings with the Securities and Exchange Commission. Bruker Daltonics expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Bruker Daltonics' expectations with regard thereto or any change in events, conditions, or circumstances on which any such statements are based.