Bruker Daltonics Reports 2002 Product Revenue of $116.2 Million, an Increase of 21.6% Excluding Currency Effects; Operating Income Increases 75% to $5.7 Million in 2002

Business Wire, Feb 20, 2003

Business Editors/Health/Medical Writers

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BILLERICA, Mass.--(BUSINESS WIRE)--Feb. 20, 2003

Bruker Daltonics Inc. (NASDAQ: BDAL) today reported its financial results for the year and the fourth quarter ended December 31, 2002.

FOURTH QUARTER 2002

For the three months ended December 31, 2002, Bruker Daltonics reported product revenue of $32.9 million, compared to $24.2 million for the fourth quarter of 2001, an increase of 36.0%, or 25.5% on a constant currency basis.

In the fourth quarter of 2002, the Company wrote down its investments in three non-affiliated proteomics companies by $5.3 million on a pre-tax basis. The Company also increased its reserve for on-going technical issues in connection with a contract with the U.K. Ministry of Defense by $0.7 million, from the previous amount of $0.8 million to $1.5 million. The Company benefited from a partial reversal of $0.6 million on a pre-tax basis of an earlier restructuring charge. Foreign currency transaction losses for the quarter were $0.2 million pretax.

The fourth quarter 2002 GAAP net loss was ($0.08) per diluted share, compared to net income of $0.02 per diluted share in the fourth quarter of 2001. Excluding the non-cash investment write-down and other special charges during the quarter, cash EPS was $0.02 per diluted share for the fourth quarter of 2002.

YEAR ENDED DECEMBER 31, 2002

For the year ended December 31, 2002, Bruker Daltonics reported product revenue of $116.2 million, compared to $91.8 million for the year ended December 31, 2001, an increase of 26.6%, or 21.6% on a constant currency basis.

Operating income was $5.7 million in the year 2002, compared to $3.3 million in 2001, an increase of 75.5%. The GAAP net loss was ($0.11) per diluted share in the year 2002, compared to net income of $0.07 per diluted share in 2001. Cash EPS in 2002, which excludes the non-cash investment write-downs and other special charges during the year, was $0.08 per diluted share, within the previously issued guidance. Foreign currency transaction losses for the year were $0.4 million on a pre-tax basis.

Life-science systems revenue, substance-detection systems revenue and aftermarket revenue as a percentage of product revenue were 70%, 15% and 15%, respectively, in the year 2002, as compared to 74%, 10% and 16%, respectively, in 2001.

COMMENT AND OUTLOOK

"Our financial performance continues to show significant operating improvements with strong top-line and operating income growth in 2002," commented John Hulburt, Chief Financial Officer. "In 2002, we took a restructuring charge for personnel reduction, wrote down our investments in three proteomics companies, and our interest income declined more than expected. Excluding the special charges during the year, our EBITDA improved from $9.0 million in 2001 to $15.0 million in 2002.

"We look forward to continued growth of our operating and net income in 2003. For the year 2003, we expect our life-science systems and aftermarket revenue to continue to grow by 18%-22%, and we give guidance for EPS of $0.11-$0.14 for 2003."

Frank Laukien, Ph.D., President and CEO, said: "We are very pleased with our continued rapid revenue growth and gain in market share, driven by innovative products and our expanding worldwide distribution system. Fundamentally, our significant improvements in operating profitability in 2002 were very encouraging, and we expect this positive trend in operating profitability to continue into 2003.

"We see healthy demand for our life-science systems worldwide, particularly in Asia and Europe. Our life-science systems new order bookings in the fourth quarter again grew a healthy 22%, compared to Q4-2001, giving us good top-line visibility for the beginning of 2003. Moreover, we will introduce several exciting new products in March at Pittcon 2003, which we expect will continue to contribute to our growth momentum."

EARNINGS CALL

The Company will host a live streaming-audio webcast of its fourth quarter 2002 financial results conference call at 10:00 a.m. Eastern Time on Thursday February 20, 2003. 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 1-888-482-0024 in the U.S., or 617-801-9702 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 on our website for 30 days at www.bdal.com.

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.