NEW YORK (GenomeWeb News) – Bruker today said revenues for the third quarter jumped 17 percent year over year as the division containing its life science instruments spiked 15 percent.
For the quarter ended Sept. 30, the company posted $310.2 million in revenues, up from $265.1 million a year ago, and surpassing analyst estimates of $293.3 million.
Bruker Scientific Instruments, which contains the company's mass spectrometers, gas chromatography instruments, and other life science tools, saw revenues increase to $290.5 million, up from $251.6 million in the third quarter of 2009. The company's new chemical analysis division, created in the spring when it acquired certain businesses from Agilent Technologies as part of that company's purchase of Varian, generated revenue of $17.1 million during the quarter, Bruker said.
While integration of the division into the company is going well, Bruker President and CEO Frank Laukien said during a conference call after the earnings release that the division did not make a profit in the quarter and is not expected to do so until the second half of 2011. In the fourth quarter, revenues from the chemical division are expected to be more than $12 million, he said.
The lumpy European economy continues to be a source of concern, but Laukien expressed optimism over the European science funding environment, saying he was "satisfied" with the recent UK budget, and noted recent funding increases announced in Germany, France, the EU, and other regions.
"So this provides further evidence that key countries will continue to invest in academic and government research for their future," he said.
That end market represented about 69 percent of Bruker's total revenues in 2009 and remains an important piece of the company's business. But moving ahead, Laukien also said that Bruker would like more diversity.
"Over time we'd like to achieve a little more balance … and maybe get closer to 50 percent academic and government and 50 percent industrial, applied, and pharma-type customers," he said. The bulk of the acquisitions made this year as well as new product introductions will facilitate such a shift, he added.
In addition to the chemical analysis business, earlier this month, Bruker completed its acquisition of the Atomic Force Microscopy and Optical Industrial Metrology instruments business from Veeco for $229.4 million in cash.
Bruker's other division, Bruker Energy and Supercon Technologies recorded revenues of $22.4 million, up 57 percent from $14.2 million a year ago. BEST filed for an initial public offering last month.
Net income for the third quarter was $27.4 million, or $0.17 per share, a 67 percent increase from $16.4 million, $0.10 per share, a year ago. On a non-GAAP basis, EPS was $0.19, beating analyst estimates of $0.13.
During the quarter, Bruker spent $32.5 million on R&D, compared to $31.6 million in the third quarter of 2009, and $72.2 million on SG&A, compared to $61.2 million a year ago.
The company said that as of Sept. 30, it had $190.5 million in cash, cash equivalents, and restricted cash.
For the fourth quarter, the company forecast revenues to exceed $360 million, which would compared with Q4 2009 revenues of $366.4 million. For full-year 2010, it said revenues are anticipated to exceed $1.25 billion, which would represent a 12 percent increase from $1.11 billion recorded in 2009.