NEW YORK (GenomeWeb) – Bruker reported after the close of the market Tuesday that its second quarter revenues were down 6 percent year over year, and down more than 9 percent excluding the effect of acquisitions.
For the three months ended June 30, Billerica, Massachusetts-based Bruker reported revenues of $371.7 million, compared to $396.0 million in Q2 2015.
Changes in foreign exchange rates did not impact the company's revenues. The results came in below the average Wall Street estimate of $410.4 million.
The company reported a profit of $14.5 million, or $.09 per share, compared to $21.9 million, or $.13 per share, a year ago. On a non-GAAP basis, Bruker had EPS of $.20, matching the consensus Wall Street estimate.
On a conference call following release of the earnings, Bruker Chairman, President, and CEO Frank Laukien said the company had not seen the demand recovery in the European academic market and global industrial markets it had been expecting. Additionally, MALDI Biotyper sales were down in the US and China in the first half of 2016.
Overall, sales were strong in North America, where revenue grew in the double digits during the quarter. Europe and Japan posted double-digit revenue declines.
Laukien suggested the European softness was due in part to the UK Brexit vote, saying that it perhaps contributed to "reluctance to commit funding" among the company's academic and industrial customers.
While other mass spec vendors have said they have yet to see much impact from the Brexit vote, Laukien said Bruker had seen the effects in "at least four or five of our divisions where it has been very clear that European academic budgets were really down."
With regard to the softness in the company's MALDI Biotyper business, Laukien said he expected stronger US sales in the second half of 2016. The outlook for China remains unclear, however, and will likely be unclear until 2017, he said.
Laukien noted that in response to the drop in Q2 revenues and lowered full-year guidance the company is "accelerating various operation initiatives" and "taking selected right-sizing and additional costs actions."
The company's R&D costs were $36.8 million for the quarter, down 2 percent from $37.5 million in Q2 2015. Its SG&A spending was $100.9 million, up 2 percent from $98.5 million in the year-ago quarter.
The company revised its full-year 2016 revenue guidance downward, predicting flat reported revenue, which includes a 2 percent drop in organic revenue balanced by a 2 percent rise due to acquisitions. Previously, Bruker had given 2016 revenue guidance of 3 percent organic growth. It left its guidance for full-year 2016 non-GAAP EPS unchanged at between $.97 and $1.02.
In an investor note this morning, Wells Fargo downgraded Bruker to Market Perform, citing concerns about the company's growth prospects and visibility. Janney Montgomery Scott upgraded the company from Neutral to Buy, noting the company's focus on margin expansion and personnel improvements.
Bruker ended the quarter with $232.5 million in cash and cash equivalents, and $187.9 million in short-term investments.
In Wednesday morning trade on the Nasdaq, shares of Bruker were down around 2 percent at $22.79