Bruker Daltonics Reports Third Quarter 2000 Product Revenue Growth of 56% Compared to Adjusted Third Quarter 1999

Business Wire, Nov 9, 2000

Business/Technology Editors

BILLERICA, Mass.--(BUSINESS WIRE)--Nov. 9, 2000

Full Year 2000 Product Revenue Estimate Increases from $68.3 to

$74.4 million

Bruker Daltonics Inc. (NASDAQ: BDAL) today reported financial results for its third quarter 2000 and the nine months ended September 30, 2000.

THIRD QUARTER 2000

For the three months ended September 30, 2000, Bruker Daltonics reported product revenues of $22.2 million, compared to $17.2 million for the third quarter of 1999. When compared to our adjusted third quarter 1999 product revenue of $14.2 million, which does not include a one-time substance detection contract for the U.S. Department of Defense (DoD), product revenue growth for the third quarter 2000 was 56%, including unfavorable currency effects. Our top-line growth rate for the third quarter has been reduced by approximately 17% due to the weakness of the European currencies.

This strong increase in revenues is principally due to the growing demand for our life science products with new and existing customers. Life science systems revenue, substance detection systems revenue and aftermarket revenues as a percentage of product revenues were 65%, 20% and 15%, respectively, for the three months ended September 30, 2000.

Operating EBIT, not including grant revenue, for the third quarter 2000 was breakeven, including a non-cash compensation charge of $0.2 million relating to our stock option plan, compared to $0.3 million for the comparable period in 1999. Income from continuing operations, after provision for taxes, for the quarter was $0.6 million as compared to $0.4 million for the comparable period in 1999. In the third quarter 2000, the Company spent $5.9 million, or 26% of net revenue, on research and development of new products and applications, primarily in proteomics and SNP genotyping, compared to $4.3 million in the third quarter of 1999.

NINE MONTHS ENDED SEPTEMBER 30, 2000

For the nine months ended September 30, 2000, Bruker Daltonics reported product revenues of $53.3 million, compared to $42.2 million for the comparable period in 1999. When compared to adjusted revenue of $34.4 million for the first nine months of 1999, which does not include the same one-time DoD contract, product revenue growth for the first nine months was 55%, including unfavorable currency effects. Our top-line growth rate for the first nine months has been reduced by approximately 13% due to the weakness of the European currencies.

Operating EBIT, not including grant revenue, for the first nine months of 2000 was breakeven compared to a negative EBIT of $2.0 million for the comparable period in 1999. Income from continuing operations, after provision for taxes, for the nine months 2000 was $0.8 million as compared to $0.4 million for the comparable period in 1999. Research and development spending was $14.6 million for the first nine months 2000 as compared to $11.4 million for the comparable period in 1999.

ANALYSIS AND COMMENT

Frank H. Laukien, Ph.D., President and Chief Executive Officer, stated: "We are pleased to report very strong nine month revenue growth, exceeding our own previous projections considerably, despite the strongly unfavorable impact of the Euro. At the same time, our operating EBIT without grant revenues has improved by $2 million, thus also exceeding our earnings projections for the first nine months. We are reinvesting heavily in research and development of new products which we anticipate introducing over the next two years to seize the present opportunities in SNP genotyping and proteomics. Looking to the remainder of this year, we are revising our product revenue projections for the full year 2000 upwards from $68.3 to $74.4 million."

NON-FINANCIAL HIGHLIGHTS OF THE THIRD QUARTER

1. Initial public offering on August 4, 2000

2. Strategic partnership with Geneva Proteomics, including an

order for 6 MALDI-TOFs and 45 ion traps for GeneProt's first

proteomics factory

3. August introduction of autoflex(TM)MALDI-TOF system

specifically designed for industrial biology applications in

genotyping and proteomics

4. August introduction of new aftermarket products, including

1536 AnchorChips(TM), GenoPure(TM)reagent kits and

GenoTools(TM)bioinformatics software for genotyping

5. Incorporation of additional subsidiaries in Canada and Italy

6. Installation of the first actively-shielded 9.4 Tesla FTMS

system

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.