Bruker Daltonics Reports Product Revenue of $74.8 Million for Fiscal Year 2000, up 43% From Prior Year's Adjusted Product Revenue

Business Wire, March 1, 2001

Business/Technology Editors

BILLERICA, Mass.--(BUSINESS WIRE)--March 1, 2001

Bruker Daltonics Inc. (NASDAQ: BDAL) today reported its financial results for the year 2000 and the fourth quarter ended December 31, 2000.

YEAR ENDED DECEMBER 31, 2000

For the year ended December 31, 2000, Bruker Daltonics reported product revenues of $74.8 million, compared to adjusted revenue of $52.3 million for the prior year 1999. The adjusted product revenue in 1999 did not include a one-time substance detection contract for the U.S. Department of Defense. Our top-line adjusted product revenue growth rate for the year was 43%.

Net income from continuing operations for the year was $2.1 million, or $0.04 per share compared with $0.9 million, or $0.02 per share for the comparable period in 1999. Research and development spending was $20.0 million, or 26.8% of product revenue, for the year 2000, as compared to $15.1 million, or 25.0% of product revenue, for the year 1999. In 2000, selling, general and administrative expenses were $18.9 million, or 25.2% of product revenue, as compared to $14.8 million, or 24.3% of product revenue, in 1999.

FOURTH QUARTER 2000

For the three months ended December 31, 2000, Bruker Daltonics reported product revenues of $21.5 million, compared to adjusted product revenue of $17.9 million for the fourth quarter of 1999, an increase of 20% including unfavorable currency effects. Our fourth quarter top line growth rate was 43% before currency effects.

Life science systems revenue, substance detection systems revenue and aftermarket revenues as percentages of product revenues were 69%, 17% and 14%, respectively, for the three months ended December 31, 2000.

Net income from continuing operations for the quarter was $1.2 million, or $0.02 per share compared to $0.5 million, or $0.01 per share for the comparable period in 1999. In the fourth quarter 2000, the Company spent $5.5 million, or 25.4% of product revenue, on research and development of new products and applications, primarily in proteomics and systems integration, compared to $3.8 million in the fourth quarter of 1999.

ANALYSIS AND COMMENT

Frank H. Laukien, Ph.D., President and Chief Executive Officer, stated: "We have reason to be very satisfied with our year 2000 performance: Originally we had expected product revenue of $68.3 million and $0.02 EPS, yet we concluded the year with product revenue of $74.8 million and $0.04 EPS. This exceptional 43% growth occurred despite our exposure to the weak European currencies.

Highlights for the year 2000 included a very successful initial public offering and strong new order bookings growth, as well as our new strategic alliances with Perkin Elmer, Variagenics and GeneProt. Our continued substantial research and development investment resulted in the introduction of five new mass spectrometry systems, as well as a host of new bioinformatics and automation software, robotics, AnchorChips and consumables products.

For the year 2001, we are investing heavily in proteomics and life-science systems integration in general. We expect to introduce several new products at Pittcon in early March 2001, as well as in the second half of the year. Simultaneously, we are expanding our R&D and manufacturing facilities and infrastructure both in Massachusetts and Bremen, Germany. We also continue to add international applications and distribution subsidiaries, most recently in Australia and Singapore, and soon in South Korea and BeNeLux.

Our strategic and financial goals for 2001 include continued rapid greater than 28% top-line growth, and sustainable EPS growth of greater than 50%. We may also enter into additional strategic partnerships and explore acquisitions to broaden our life-science product lines."

ESTIMATES FOR 2001

We anticipate continued top-line product revenue growth for 2001 of 28%. Therefore, our estimate for product revenue for fiscal year 2001 will be approximately $93.0 million. This is based on 28% product revenue growth from an adjusted 2000 base of $72.7 million, which excludes sales of our ion trap mass spectrometers in Germany during 2000. We also anticipate continued earnings growth at a rate of greater than 50%, and estimate $0.07 earnings per share for fiscal year 2001.

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, proteomics 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.