Bruker Daltonics Reports Continued Strong Revenue and EPS Growth at End of Third Quarter; Company on Track for 25% Revenue and 50% EPS Growth in 2001

Business Wire, Nov 5, 2001

Business Editors and Health/Medical Writer

BIOWIRE2K

BILLERICA, Mass.--(BW HealthWire)--Nov. 5, 2001

Bruker Daltonics Inc. (NASDAQ: BDAL) today reported financial results for its third quarter 2001 and the nine months ended September 30, 2001.

THIRD QUARTER 2001

For the three months ended September 30, 2001, Bruker Daltonics reported product revenue of $23.6 million, compared to adjusted product revenue of $20.2 million for the third quarter 2000, which excludes $2.0 million of non-recurring ion trap mass spectrometry sales in Germany. Adjusted product revenue growth for the third quarter was 19.4% before unfavorable currency effects, or 16.8% after currency effects.

Compared to the third quarter 2000, operating expenses increased $1.0 million, or 9.2%, to $11.6 million. Income from continuing operations for the quarter was $0.9 million, or $0.02 per diluted share, compared with $0.6 million, or $0.01 per diluted share, for the third quarter 2000.

NINE MONTHS ENDED SEPTEMBER 30, 2001

For the nine months ended September 30, 2001, Bruker Daltonics reported product revenue of $67.6 million, compared to adjusted product revenue of $51.3 million for the comparable period in 2000. Adjusted product revenue growth for the first nine months was 37.9% before currency effects, or 31.9% after currency effects.

Compared to the first nine months of 2000, operating expenses increased $6.2 million, or 22.5% to $33.7 million. As a percentage of product revenue, operating expenses for the nine months ended September 30, 2001 were 49.8% as compared to 51.6% for the comparable period in 2000.

Income from continuing operations for the first nine months of 2001 was $2.7 million, or $0.05 per diluted share, compared with $0.8 million, or $0.02 per diluted share, for the comparable period in 2000.

Life science systems revenue, substance detection systems revenue and aftermarket revenue as a percentage of product revenue were 75%, 7% and 18%, respectively, for the nine months ended September 30, 2001, as compared to 62%, 28% and 10%, respectively, in 2000.

COMMENT AND OUTLOOK

"Our financial performance in the third quarter has been robust, and we have again met the consensus expectations, despite the disruptions after September 11," commented John Hulburt, Chief Financial Officer. "We continue to expect top-line revenue growth of 25%, and EPS growth of 50% for the full year 2001."

Frank Laukien, President and CEO, said: "We are pleased to have met all of our targets even under the challenging conditions of the third quarter. Our new order bookings for life-science systems in the first nine months of 2001 have increased more than 25% compared to the comparable period in 2000, giving us additional visibility for the remainder of the year, and into 2002."

"Moreover, we believe there is potential upside to our guidance due to the excellent customer feedback which we have received so far on our new UltraFlex TOF/TOF, as well as additional government budgets that we expect for our chemical and biological agent detection equipment. We are optimistic that in 2002 Bruker Daltonics will continue to grow its revenue rapidly, with further accelerating profitability."

EARNINGS CALL

The Company will host a live streaming-audio webcast of its third quarter 2001 financial results conference call at 11:00 a.m. Eastern Time on Monday, November 5, 2001. To listen to the webcast, investors should go to www.bdal.com, select Investor Relations, and then click on the live web broadcast. The webcast will remain on the Company web site for 30 days. Investors can also listen by telephone by calling 1-888-280-4063 in the U.S., or 706-679-3484 outside the U.S., and should refer to the conference call led by Bruker Daltonics President and CEO, Frank Laukien. A toll-free replay will be available by dialing 1-800-642-1687 in the U.S., or 706-645-9291 outside the U.S. with the access code 2245007.

ABOUT BRUKER DALTONICS

Bruker Daltonics is a leading developer and provider of innovative life science tools based on mass spectrometry. For more information about Bruker Daltonics, please visit www.bdal.com.

CAUTIONARY STATEMENT

Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties. The factors that could cause actual future results to differ materially from current expectations include, but are 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 to update the information contained herein.