NEW YORK (GenomeWeb News) – Bruker today reported nearly flat third-quarter revenue growth and a decrease in profits, due to higher spending and expected quarterly fluctuations in purchases by customers.
The Billerica, Mass.-based firm brought in revenues of $242.1 million for the three-month period ended Sept. 30, nearly flat with revenues of $241.8 million in the third quarter of 2007. Excluding currency benefits, Bruker's revenues fell 7 percent year over year.
“Since our February 2008 merger [with affiliated firm Bruker BioSpin] we have experienced significant quarterly fluctuations,” Bruker President and CEO Frank Laukien said in a statement. “As in previous years, we expect strong revenues in our fourth quarter of 2008, as our bookings and backlog have remained healthy.”
Bruker's third-quarter profits declined 33 percent to $17.8 million, or $.11 per share, from $26.7 million, or $.16 per share.
The firm's SG&A spending increased around 15 percent to $61.8 million from $53.9 million, while its R&D expenses rose 23 percent $33.1 million from $26.8 million.
Laukien noted that beginning this past summer the firm began taking steps to reduce its operating and interest expense and reduce its exposure to currency fluctuations. “We expect that our cost-cutting initiatives will already have noticeable positive effects in the fourth quarter of 2008 and first quarter of 2009, and that by the middle of 2009 we will see annualized reductions in our overall costs of greater than $12 million,” said Laukien.
Bruker finished the quarter with $87.4 million in cash and short-term investments.
The company's shares dropped nearly 30 percent during the day, to close at $3.66.