Shares in Bruker Decline 11 Percent After Firm Said Material Weakness Will Raise 04 Losses

NEW YORK, March 16 (GenomeWeb News) - Shares in Bruker Biosciences were down more than 11 percent, or $.44, at $3.51 in mid-afternoon trading after the firm said that its 2004 net losses, reported on March 2, would likely increase following internal audits.

Bruker said that a "material weakness" in "internal controls" at an undisclosed subsidiary would cause it to revise upwards its 2004 net losses.

As GenomeWeb News reported this morning, the firm "has been made aware" of "several" 2004 audit adjustments that it said will have a "negative impact" on its 2004 financial results.

In addition, Bruker said German tax authorities have revised their assessment after the company released its 2004 earnings on March 2. As a result, Bruker said it will ask the US Securities and Exchange Commission for a 15-day extension to its 2004 Form 10-K filing deadline.

"We had previously reported a GAAP net loss of $.06 per diluted share for the year ended December 31, 2004," William Knight, chief financial officer of Bruker. "Subject to some uncertainty, as we are still reviewing all quarters of 2004, we now expect that the combined effect of these audit adjustments and the higher tax assessment in Germany will increase our 2004 GAAP net loss to $.07 to $.09 per diluted share, with audit adjustments affecting several quarterly results during 2004.

"These adjustments should not have any effect on our 2005 goals and first quarter 2005 guidance," the CFO added.

The company plans to schedule a conference call with investors to discuss the revised financial statements at the time of the 10K filing, Bruker said.