BRKR - Earnings call transcript Q2 2021

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Operator

Good day, everyone and welcome to the Bruker Second Quarter 2021 Earnings Conference Call. [Operator Instructions] Please also note today’s event is being recorded. At this time, I would like to turn the conference call over to Miroslava Minkova, Senior Director of Investor Relations and Corporate Development. Ma’am, please go ahead.

Miroslava Minkova

Thank you, Jamie. afternoon. Good to Bruker’s like earnings quarter everyone call. conference welcome would second to XXXX I Miroslava Director Minkova, and is name My Senior at Corporation. Corporate of Bruker Development Relations Investor

and are Joining today’s Chief Financial Executive Frank CEO and and Laukien, Vice me President Gerald call our on Officer. our Herman, President

section today, the presentation referencing Bruker’s addition presentation. a on In earlier The the Latest can call, conference PDF release earnings today’s to this be slide from downloaded we Results issued of website. Relations we during will Investor be

today’s we Reconciliations ir.bruker.com. our on GAAP are During call, non-GAAP posted will financial at in of financial be information. included earnings highlighting are website to release and our non-GAAP our measures

Slide like reference statement, I Safe begin, would we Before to X. show Bruker’s on Harbor which we

discussed conference those will regarding on we and semiconductor third ongoing XXXX. on as course other to XX-K other but differ of that today’s to During updated release the financial not conditions other to forward-looking the make supply as quarter financial operational on expected today, rely may this statements including the website to company’s events our COVID-XX today. future early results not representing Therefore, the variant that of performance of SEC’s We you uncertainties, any or statements. reasons new in related as statements company or actual and such these to, and from date X, information, the release views Form by is to well of materially outlook that our SEC the Also on Delta of cause and worldwide events statements limited those not XXXX. for such our November earnings to XXXX differences might as chip are in shortages. following and our include, forward-looking future spread as intend our the should The and pandemic, the results risks prior forward-looking our related and filings, ongoing are our involve do of call, based in update business which available as outlook August information the website. current note subsequent Factors

We will Gerald summary. the financials will providing quarter call cover detail. with Frank in today’s begin a for then more second the

the Now, I to to would Laukien. like over CEO, turn Bruker’s Frank call

Frank Laukien

in and afternoon joining good Miroslava start our us Bruker Thank call. strong following quarter quarter you, for XXXX. the earnings in Thank progress on of you the everyone. again demonstrated today’s second excellent first

our quarter, robust grew the significantly end and Bruker’s a life solid recovery. amidst with revenues, earnings demand During instruments, second science year-over-year, diagnostic market margins for high-performance and scientific solutions

business executed very teams our now Accelerate in Project positioned XXXX. Our progress is well excellent and well for and across core Bruker

$XXX Bruker’s to in growth Scientific the million. grew XX.X% best. approximately quarter increased organic XX.X% year-over-year, growth Our includes which XX.X% revenues Bruker an – Instruments at and revenues basis, organic second XX.X% XXXX On organic growth groups

quarter to investments of Our was QX XXXX. operating and impacted basis non-GAAP the XXXX. margins in marketing second in in gross XX.X%, XX%, margin up year-over-year while XX.X% XXXX expanded ‘XX, points substantial ‘XX for Accelerate second non-GAAP and basis, On and the increased growth Slide of the our we revenue in sales and summary, R&D of first gross to XXX reached the a from On our which and were $X.XX operating despite quarter X, the by XXXX EPS of of the EPS EPS But second compared In call. the strong on Bruker or margin $X.XX. diluted pandemic. will share GAAP performance per non-GAAP quarter year-over-year diluted earnings negatively show reported Project X.X. expansion Bruker’s drove half quarter the Gerald margins second in $X.XX cover the later drivers quarter for volume

revenues increased intercompany an eliminations. growth scientific again, by $XXX of of revenues basis, XX.X% million instruments at year-over-year, in BEST, $X.XXX XX.X% On Our comprised or XX.X% to organic organic by grew organic and billion. year-over-year net XX.X% increase a

XXXX Bruker’s book-to-bill more half instruments half order X scientific remained and our above the the year-over-year XX% organically for grew groups ratio bookings First year of for BSI first X.X. than

Geographically, half and industrial year, and core as bookings businesses first even the China, Project North Japan. as we particularly were strong outside order our pandemic During first across our as strong saw XXXX markets. many our of Accelerate what of half America, other of would well academic bookings in businesses high-growth in our and markets imply Asia-Pacific experienced the beyond demand growth the revenue recovery

scientific stepped operating half business and highlights first first and I in of our X half EPS summarized all and instruments Slide non-GAAP are BEST margin segment, of Our of Slides and up now, XXXX recovered all on significantly on to XXXX. constant X, accelerated as actually and provide first the turn where non-GAAP GAAP currency – and on and on X year-over-year X year-over-year half XXXX performance I where groups performance Please all a growth provide the basis. our our highlights

For in including revenue BioSpin X XXXX. approximately compared quarter up gigahertz the recovery the of half installation million, first strongly a on revenue the and grew in first year-over-year, customer systems of revenue half to NMR of Systems to first $XXX.X recognition reflecting XXXX. activities XXXX, the XX% demand class BioSpin Group was

NAN University there Wisconsin, of Complex advanced in or the network Center, University magnetic establish $XX of Research of to were academic U.S. gigahertz Foundation expected, NMR the and national resonance mid-June, Medicine, the facility. XXXX. Georgia, award Madison’s institutions, a University Science of Carbohydrate As X the announced among Connecticut of of U.S. systems School In National a million class second no revenue quarter in

our revenues that University Group has with recent been our mass rebound in increased and CALID BioSpin’s a spectroscopy and of to FTIR our spectrometry a announce molecular Raman and more grew a and as aftermarket In microbiology businesses in XXXX, of than grew year-over-year. also software strong this the to system $XXX.X pleased are Madison. neuro product infrared X.X million growth new XX% from a first Wisconsin We for half trend, line. gigahertz continued in the of strongly received revenues NMR result order

We in products unbiased very grew life healthy by continue a for partial diagnostic MALDI tuberculosis proteomics while see products. spec diagnostics XD for and our robust of our instruments science platform, coupled mass year-over-year, demand for Microbiology other recovery consumables and timsTOF Bruker driven revenue year-over-year. revenue also grew to with growth revenue molecular demand Biotyper

revenue COVID $X approximately testing million. the SARS-CoV-X quarter, During second our PCR from or was

products Raman product now. So, rebound. and first half XXXX a global spectroscopy molecular were higher year-over-year with industrial applied markets and revenues turn infrared to near strong execution, Slide infrared new Please academic sharply our adoption of solid X

industrial grew grew First Nano X-ray, Nano Surfaces strongly Nano’s metrology and and healthy all and XXXX to half tools revenues to rebound outperforming academic Bruker microelectronics ongoing the business demand. solid industrial $XXX.X a had Analysis our recovery for even million. with Nano high Nano’s substantially with semicon perform XX% expectations. advanced in continued Revenues year-over-year. tools

revenue fluorescence demand. academic microscopy was strengthened year-over-year up on strongly Finally,

First tools from single-cell half contribution targeted revenue Biosciences XXXX with Nano services. Canopy also included proteomics acquisition XXXX our and a Canopy September

projects. year revenue intercompany period. BEST grew in eliminations, revenue on our science XXXX BEST MRI superconductors in of were mid-teens from from healthcare half first big the for net percentage driven Moving the BEST by prior and contributions the to segment, below

half XXXX. of strengthened in the superconductors see second demand MRI we However, for

platform SVP will single-cell like important in We further the rapidly spatial a Pro to I good of in At XX the drive our with initiatives molecular mid-June, Investor these growing growing unbiased our exciting and Project XD, opportunities X, our our microbiology biology continue for instruments X in single-cell and market. timsTOF our as in in anticipate goals we and for Today, research. Virtual In strategies make introduced X Moving the June, timsTOF new well progress metabolomics Pro to change, we and very proteomics the X-dimensional additional highlight recent diagnostics to timsTOF early timsTOF XD-Lipidomics would business. applications omics fast our Day and and proteomics. Slide shared Accelerate we areas breakout systems: however, and proteomics investments. potential for and as X growth

they library, As Slide was how that. MetaboScape of is XX,XXX tools us molecule very which our very and collision Bruker, that to source intelligence and metabolites. can Investor use have lipidomics developed CCS XXXX molecule in small reduction METLIN-XD importantly, about and small press the the Because rates, they deep cross-section exposomics aspect with a with we or learning all large XD-Lipidomics, there And more measured, outstanding a from the we were have of our available Very ultra-high that order gives tools CCS June a more half false launched very, Pro, have in CCS delighted those on also data entries for important the We identification precisely Scripps here further collision lipidomics. predict or important collaboration now data with this important with drug you a collision products for second research. now gain and predicted the VIP-HESI and developed had XD-metabolomics software workflows scale, including and sensitivity with in of enables libraries metabolomics in the new applications, that generally of so are on including X, that small cross-section. measure positive we used will Day sensitivity high at do source variety predictions CCS accurately see and collision than for our parameter platform applications this in an some new metabolomics, after in and finally, see new and library scale cross-sections workflows really flow make we at software release or timsTOF can and improves on timsTOF are TASQ partners artificial our to reference you we new on in molecule organically on instance, of at we together in be for the magnitude new cross-sections which even

but not So also only and proteomics, new developments, great XD-Metabolomics lipidomics. in in

also me let investments in excellence, Day, including in X, On investments here. finally, things operational wrap our So continued sustainability. our Slide environmental Investor up at we noted

Here, BioSpin briefly in consumption. we reducing Group just emissions, liquid our helium progress of the highlight carbon-dioxide energy and its

to new the photovoltaic reductions facilities anticipate Switzerland, energy invested energy-efficient for in and systems. substantially much been Bruker and and new summarized emissions BioSpin facilities Switzerland. and standard and emissions in are built COX expanded its here For latest reduced BioSpin’s they in carbon-dioxide renovated Germany its or Germany campus has in other operations overall with Bruker in lower major solar We Germany energy significant and reduced consumption. has

re-electrification and details on investments the of significantly into but won’t at our also sizable in BioSpin capacity are some you are are detail, ourselves go make in various and BEST something this difference numbers and you if a at We Bruker. sustainability, look investing something major in of at slide environmental locations. expect here, I expect helium they we these interested, towards also customers if

and to So first expansion margin wrap XXXX, Bruker in half and year-over-year significant things the growth. up, improved summary growth, and second during performance EPS with of has revenue delivered strongly quarter

our continue Our have rebounded Accelerate core deliver. businesses and higher to areas growth Project strongly

We press the are in investments further of margin and year X.X raising making initiatives, revenue explain that, release. and our up you With and non-GAAP XXXX Accelerate and operating and Project operational financial progress in as is can XXXX in track for non-GAAP we our will XXXX. as investments EPS second further, outlook Gerald well excellence excellent on half Bruker growth, including strategic stepped fiscal our see are for in expansion

that, detail. turn more in Herman, me over who CFO, Gerald? financial review to our the and performance Gerald call let our Now, outlook with will

Gerald Herman

you the highlights, you, join million I the review which second increased XX.X% quarter and compared includes am Thank On XX.X% quarter quarter year-over-year. XXXX, for pleased revenue basis, per of $X.XX first second was XXXX. thank quarter quarter starting an XXXX. $X.XX approximately to second on XX. of a per second EPS us. Bruker’s of share joining Bruker’s $XXX XXXX today XXXX to compared Frank organic financial and Slide second in you reported half everyone increase EPS revenue in $X.XX and of non-GAAP of GAAP $X.XX to to We share in the

comparison weak had second Our quarter pandemic. from the XXXX, negatively of non-GAAP which XXXX operating by more second the a quarter income than doubled been impacted in

of X.X expanded exchange and programs and $XXX points a We our was XXXX the million. included foreign from investments also finished second cash, and cash equivalents revenue XX strong non-GAAP investments of operating year-over-year Accelerate XX.X%, XXX Our margin driven quarter approximately after translation to points excellence basis negative additional by volume. quarter. short-term the absorbing basis with impact in This second operational Project and in quarter

strategic the In totaled generated of than We share expenditures million dividends. Board we X.X shares second in higher approximately repurchased purchases stock quarter the authorization for our fund and in the X-year a shares quarter. stock XXX,XXX more cash XXXX, share total flow new In free in operating million offset cash a million $XX.X used Bruker $XX During million May May, of XXXX. for repurchases repurchase capital we by $XXX for have second of $X.X of of in a our was million. resulting Year-to-date, quarter, up second valid to million. to investments, $XX.X cash until approved which the approximately quarter, quarter, outflow the

the quarter the bridge in from XXXX quarter improved Our and the revenue full Slide working capital shows XX to due of revenue XXXX. higher for gains XXXX. the second of revenue year efficiency to second ratio

second in a a X.X%. positive We contribution acquisitions increased earlier, perspective, XX% mid-XX% BEST range. and noted foreign increased quarter of revenue of low intercompany organic of As from revenue the net XXXX, had increased range range the in organic year-over-year revenue X.X% currency in in the From XX.X%. XX% low eliminations. Nano in tailwind a and grew the the grew CALID revenue mid-teens. the of in quarter BioSpin

systems XX% XXXX the the while increased weak increased second XX% organic a American year range prior year-over-year. and XXXX, the our single-digits in grew aftermarket basis, compared BSI on Geographically of in over revenue an North and XXXX. comparison organically, in revenue grew quarter grew revenue revenue high-teens quarter Asia-Pacific in the Second low organically to second range. off quarter high the high-XX% the of in European

year-over-year. P&L non-GAAP strong was in more Softer world Japan other revenue higher XX second on offset revenue than second Slide a was performance performance by also XXXX revenue in and regions. XXXX shows our China quarter APAC the Rest growth basis. of quarter

the quarter points from and second revenue XXXX non-GAAP basis XX.X% by Second gross increased XXX of XXXX in higher leverage. margin of driven XX.X% quarter volume

quarter during Second XX.X% more and second of after XXXX, non-GAAP quarter increased reductions in we expenses XXXX. quarter operating had the XXXX the of temporary to second cost reflecting expense levels controls compared the normalized place

Project expenses operating XXXX our also X.X quarter and exchange Second step a investments a reflect up foreign in significant headwind. Accelerate

expected and our second previously As Accelerate the in investments over our Project of we investments to course further XXXX, X.X the of the XXXX. half communicated, pace in are these increasing initiatives is of step up

and non-GAAP operating margin XX.X% XXXX QX above second the revenue, XXX resulted in quarter second the was This points basis from of significantly in Our leverage of XX.X% volume, quarter of XXXX. operating higher ‘XX.

XXXX, second share second repurchase quarter activity. reduction of For average non-GAAP million, in XXXX quarter the jurisdictional by second or compared from increase tax second discrete resulting in favorable Weighted of X.X% XX.X% rate shares items the a XXXX, mix from the outstanding tax quarter of with were XXXX, $XXX.X was impact of quarter XXXX. diluted XX.X% the of effective of in second X.X and million shares the principally quarter approximately our driven the the of to our

XXXX XXXX top our has line, organic half X.X% for Finally, of on already primarily XX. growth half was XXXX, $XXX P&L EPS $X.XX than while non-GAAP from first for doubled added of XX a Revenue the by up Slide revenue. margins. first first summarized and million XX.X%. operating of was revenue second revenue, to drivers quarter of in the for gross the the tailwind. XX.X%, the more $X.XX And quarter X.X% of are XXXX Slide higher or second shows results driven year-over-year Frank exchange including the Acquisitions bridge XXXX. foreign the half of covered

of second explained the are slide. the quarter to that XXXX similar largely drivers on the With

XXXX, first a the of Slide outflow $XX.X generated in to now in of million cash free flow of of XX, Turning to the half cash first we XXXX. compared million half $X

First benefited deposits. customer higher timing income half a flow principally other free of from by XXXX the items, cash offset net partially

capital quarter was normalization at the days, compared of the a reduction cycle Our second second of cash of our quarter the of to XXXX, working days conversion cycle. the of XX end reflecting XXX XXXX

supply accelerating inventory most as elevated demand and businesses. our of carry to to better supply the to chips risks as continue across shortages those including We other well semiconductor manage meet chain related to

strong our and Turning financial our our half Slide raising given outlook we’re outlook expansion now for core performance XX, non-GAAP and in revenue first non-GAAP EPS. to again growth improving business, XXXX operating margin

For XXXX, we fiscal growth year revenue now XX%. to organic of XX% expect

This to compared model XX% operating approximately for XXXX currency lower to approximately Non-GAAP of at a to approximately our to foreign reported the We in of is foreign continue points lead to XXX assumes points X%. XX% to expand for headwind of now range non-GAAP the exchange revenue XX expected growth margin reported XXXX a for in XX% R&D XXXX. XX% project year. revenue growth to operating to XXXX, guidance basis to adjusted revenue our margin XXXX. for compared XXX is expected to in Directionally, of but basis full investments tailwind

to EPS slide. of unchanged range representing bottom also adds the assumptions guidance XXXX. and This EPS represents year growth to $X.XX, growth of XXXX. full of On level in $X.XX are line, Other non-GAAP EPS XXXX in to the are our XX% pre-pandemic to this XX% non-GAAP up XX% listed from a the $X.XX non-GAAP on for plus compared

Our XXXX XXXX. XX, as foreign updated full year reflect currency ranges June rates of

half. guidance, dynamics to quarter. second expectations XXXX of comparisons given add year the While we and unusual some the first half of not to third color earnings more the do to become on the additional XXXX, for like and our XXXX quarterly compared in the provide normalized I’d margin Revenue,

likely XX% on of basis field ultra-high third system. This nonetheless compared to quarter the XXXX. the NMR additional QX we recognition XX% XXXX for an to grow organic range includes one to anticipate revenue demand, strong Given revenue

As a second second in year-over-year in also in I quarter. pull-through during ramp-up investments improvements noted the the our earlier, second Robust continuing we business, X.X excellent and strength conclude, delivered our in initiatives Project half we EPS strong of further quarter. demand Accelerate and operating financial plus anticipate To to and recovery the XXXX. Project our in drove our volume Accelerate core margin strategic

XXXX start the we’re by to in revenue organically. call very with positioned approximately I’d Thank exceeds turn well currently you excellent progress for over Our pre-pandemic half And to XXXX. XXXX Miroslava that, half session. much. to XX% And first first the performance like the Q&A revenues

Miroslava Minkova

to the to back Q&A the call Thank the to would you, like Instructions] now [Operator turn I ahead. please over portion. Gerald. operator begin go Jamie,

Operator

[Operator our question from first Souda Instructions] your go Please comes Puneet with question. SVB And ahead today from Leerink.

Puneet Souda

Hi, Frank. question. Thanks for taking the

is really seeing hear hi now? one on demand first – So the can ever you Frank, me

Frank Laukien

hear Yes, but we fairly. can you,

Puneet Souda

hear now. try else queue. if to Hopefully, not me back I’ll the you can and And ask into I’ll

Frank Laukien

We hear you can now.

Gerald Herman

better, It’s yes.

Puneet Souda

Excellent. Thank you.

of budget COVID that the seen quarter that flush normally in to the kind cycle And we now, to how the towards you is would and and great. So somewhat a terms demand quarter, a terms of seeing market the you’re fourth – of classify the trying fourth have the in And demand of question as go just sort what is, prior much in should fourth normal be that total more what that quarter, to. I’m we of right we sort how a pent-up of the overall be as the that get in demand? expect see would we overall, would really, instrumentation

Frank Laukien

Yes.

and recovery. the Previously, just as pretty more picked than seeing So a in earlier, very with This demand. think of now you terms strong up also Puneet, being strong Europe demand had is China pretty know. I strong U.S. economy, the we’re

core well. more are and initiatives they been doing seeing had sort of QC X.X now as with research that academia. until are very of course, a bookings And Accelerate industrial well, industrial doing revenue. quite the We all strong along bit our exceptionally both businesses are sluggish and but business little some strength in and recently, Those great are in Project

strong really very it’s a right So picture now.

more in – terms a but normalized, our would with normalized the weaker I half, the second get comparisons comparison pleased mean, obviously In or get I second not we’re I of it’s stronger. very mean, quarter,

I as this want any quarter. wouldn’t point normalized to think quarter given I to year a

compares I what distorted a think then and quarters in four I and would something to new to managing that’s average set we’re really – quarters, that do than baseline rather XXXX. last rather to over year’s the

excellent progress. So I think we’re obviously making

much than just doing more recover. We’re

more right much much opinion, healthy. type that I question. point to hope And or the is of are in more one your is of questions demand than elements color up. This of for. pent-up that really than, more growth mode now. gives looking This really fast is This We’re catch pretty quite you one Yes, just your our or to you really

Puneet Souda

obviously, Got it. into the then And X a base timsTOF helpful. on That’s installed very strong launch. years

into new proteomics and as obviously You’re launching applications products well. new

as you do question, see second the that LC So accessories the what for you say expect the growth for – as terms there, Bruker us of point the in LCs side attach you’re you again, Bruker provide time? this look to the base, the the is base of sort of growing in installed current out at other overall or timsTOF? given installed of rates on more at into would trajectory, you see sort maybe strategy can more expecting status rate And I

Frank Laukien

Right.

quarter, both it’s revenue been bad. flex but right? has imaging and stronger in also had strength system, now for platform and that SCP right, the as course, the just healthy, strong the capability, which very growth, single-cell very platform, which timsTOF then the for brand new, proteomics the as with in XD-metabolomics multiple of capabilities and first also Overall, proteomics, of average the as bookings corporate second previously and a really The isn’t picture long in launched flex and types new was growth source as additional the half for and well systems, butter I of the as the good, good the with new So – the all bread than very explained.

we’re pleased So with very that.

doing we’re market. a in well in – a So growing growing we’re

proteomics particularly within and well are doing doing the think proteomics. markets we’re well, I

question, Our them of bad. we’re Nano standard – but of specialized a our LC. very, a very rate lot LC a good bit – LC. are LC attachment Bruker our we’re It’s Nano attached is is A but customers is offering not not a pushing

saying and recognized better say, out but excellent would other, well and much there, as and We’re is it’s all any it the not attributes. for as I it stability than good separation any, usual

our series So other and high, focus it’s number they although are LC is have above an for rate that timsTOF I or larger particularly But we for attach LC I proteomics. proteomics. who our reasonably well think exact XX%, don’t also on know with you either work suppliers, specialists well

anticipate don’t people there I So along. a are for that’s change all good software. pretty significant us getting because our More been

everybody using proteomics, are complementary they collaborate proteomics, are fast increasingly are very they but bioinformatics pacer software, even then other we multiple in course, interested other with. packages if run who by GPU-driven our also they very packages very, vendors done for and Of uses use

what referring revenue – proteomics that’s up think the obviously. beyond going mass going expected. And you’re if picking as some that’s well. It’s I just – to, we’re spec, it’s So that’s

Puneet Souda

Great. squeeze I And last could one, just in. if

installs had for three we Thank of should appreciate XXXX, base, the I year. of could number to of frequency terms sort expansion to you. that grants, how the this changing year? of you it. what’s guided NMR, outlook terms and here given five just your the look gigahertz ultra again Is multiple think expectations installed the of clarify larger at the for And In you in

Frank Laukien

Yes.

some now my year, look going best customer four to with likely at some and we’re but is factory For most estimate also some delay. both citing this

had two none four QX in QX, year, So as this we in expected.

if color on As right one more yes, gave QX although QX. one therefore, math, do And Gerald probably we just QX. in expecting we’re the said, you now, in

that’s plan the So this year. for

We’re will We’ve not NSF more more exactly ‘XX, out. to additional year, in up ramped the and orders, build go that test capacity next into won’t to on need like funding delighted how our Switzerland. with Those plays see we ‘XX, right? itself revenue,

of certainly orders two this our one are so icebreaker, all and funding with I glad with and more well. the guidance, that giving a We’re lot NSF-funded systems, other full I’m and books instruments mean, needs The that very speak, good. that, probably more than there a be then which think one Korea. received so developing simply there will has Europe. in a funding. system And want so par Asia we I do to of an The with two more order will course, Pacific one on on not importantly, for but far the is only far, order, systems Maybe XXXX more lot over interest to that’s U.S. the very bodes also, other be U.S. time lot to of so funding. additional where just order

So are actually to We of start some in other And could and structures. the fold even Google boost by coming on very nicely. applications Alpha NMR. to be along the because a so prediction do structure NMR demand we love don’t

OEM that whether and do they look then the the or the from structure, changes look reasonably a and comes with from start if cryo and at to at or X-ray it’s prediction, like customers good interaction. binding and Our dynamics functional

good structural scientific as is there technical us of important, outside We of what’s long lot well functional as a around think NMR make happening a drivers is drivers. as both even think there – Actually, will lot that biology more Bruker. So of I good

Puneet Souda

That’s great. Frank. Thanks for the details,

Frank Laukien

Yes.

Operator

Our next from America. question comes De question. ahead with from your go Bank Bruin Please of Derik

Derik De Bruin

Hi. congratulations a Good on quarter. strong afternoon and

Frank Laukien

you. Thank

Derik De Bruin

XQ, Frank did mind? exiting you clarify half. could questions. greater correctly What than did the if was quick than heard it don’t two – you you growth XX% first order in Just I

Frank Laukien

was growth with some in in BSI the than greater need in organic our help that X.X% the half, about XX% first second right? BSI I may quarter. here rate know book-to-bill And I

healthy. pretty have my so fingertips, So that at that is the number I

Derik De Bruin

And think companies what little bit supply you’re you. impacts how Great. about going there Thanks in semiconductor the sort going and the at transportation the you. seeing global chain Thanks you of costs bit talk seeing just in course and you up. talked talk shipping I Thank costs about well? supply for the you’re your of clarification some also of markets what looking of issues? a little you’re chain? that. can as a semiconductor Can on of chain that and and the have markets up the terms obviously, – And supply other what

Frank Laukien

trivial. two with for right struggle one it’s to The sides, to components it is – and we’re semiconductor we’re Yes, but else, is hard, has we’re this – so Yes. us, and supply pellets from issues transportation like even issues from really costs right? working and far like of things really, everyone electronic and with deal working that too, it’s things There course, chain chips. far it mundane and a –

I think are there mean, I risks. So real

– I still slow in also reasonable. things, they could rails, think, is us don’t some but there. think think our these of But be here we think down or I I cases, we that that’s guidance, some why they’ll very

by hand, were the growth then are packaging metrology large XX%. course, so way, other all business our metrology very semiconductor our and orders – for was And was organic around in the that’s in the well I we that have the really second doing in extremely a On of Bruker business. past investments quarter BSI our Nano just good – for note that semiconductor

was – So X.X%. was yes, very And book-to-bill book-to-bill for again, very, orders BSI strong.

– of given little us. from recovery, unusual. whereas more if year, for year, and with maybe mean, some that metrics. quarter as rates growth depend year, By know, the I think we’re at it’s a this this good things was And year’s we up really delayed We on think – comparisons us, quarter next a prior fine So, all the – next for we any sets set and normalized the into and much bit prior get we so always in QX if the growth year, have very outstanding some year, least so. way, there that’s

not excellent So And were – losing we’re even – things more That’s this excellent bit, fine with if get that. of is little actually backlog. a trajectory. a we’re having we’re some orders, delayed to

Derik De Bruin

Thank you very much.

Frank Laukien

Yes.

Operator

from comes question with go next your Please from Peterson question. Our JPMorgan. Tycho ahead

Tycho Peterson

the thinking can the looking could you maybe across I CALID, four BEST, but us us just I of bit you color semiconductor how are give just the back the on the wondering, how you a and inflecting. know touched you’re Frank. of give Hey, little half segments am through just about thinking Nano, maybe just a for about heads walk all, you which year? if between piece divisions, of Nano,

Frank Laukien

I can. Yes. Sure, Tycho.

in PCR a it second is And and CALID headwind of year will well. sequentially. little second really last the have had because COVID, more doing come down obviously half, So half that’s even for just testing

have nice of to see strength great business. our applied and bit in little the a between also been a Nano, spectroscopy we continues you’ll proteomics and resolution the compared Metabolomics in market multiphoton in have strong Biotyper its needle course, to super to so very from And in last headwind, CALID’s industrial momentum. to microscopy particularly growth imaging year, but beginning and and that of MALDI strength imaging. its with it’s recovery move the molecular fluorescence And and continued to light semi. in emerging sheet

now is part that So growing.

have but think a is we sort bit okay little it BNANO strong very second had will quarter, of quarter. a So this BBIO star an third the year.

little companies do the year, because strengthening. we surprise more well been customers, although to QX. large will strengthening QX better is that’s another really be just MRI and this in early a OEM BEST our year, the expect and strong, in didn’t in BBIO than as So MRI OEM And from as well demand bit

pretty terms for year, half second the actually, up So seen, BEST in good will growth of there BEST already growth. and as right BEST good is be of then you’ve actually QX the was in

occasional just lot and by, So this quarter But CALID of doing in followed CALID the year. spots year are is doing quarter BBIO is one maybe best doing. that weaker great the BBIO. Nano and quarterly the again, weak not a over strong a and

Tycho Peterson

can Gerald updated And I as flow am provide some half maybe PCR for cash a COVID helpful. up. wondering could two the the quickly, had lot wondering any contribution from you of the assay quantify if then you That’s quarter. I’m cash then the if flow. Okay. flow. in revenues pick And back cash We’ve on just the in questions on year thoughts lot

Gerald Herman

Yes.

of modest PCR quarter. in I second say levels, $X So the revenue the fairly in pretty I’d terms guess, COVID million –

I some we levels, not cases. So predicted a really had guess, off but in not on a – drop as – other outstanding not many as quite

mean quarter, did the I’d the stable, we second to at say fairly I pretty regarding point. in your Relative solid this generate that’s I we So cash specifically. guess, – flow, flow quarter, question in cash some operating

continues this the cash little move. get as customer volume clearly to is finalize see We’re quarter, second had second starting as are that’s as the fairly between Obviously level significant of of to basis, our in we our And really on we to orders in quarters. customer and place. the impacts see the it. to quarter. some a works and going payments case deposits hopeful an ongoing the change between typically demand of this tax begin to deposits, movement The we timing flow on In case we way that’s start that, we been bit continue

of overall, we cash optimistic for optimistic about So, impacted are flow But quarter. the that these net we if negatively very our second income, are long-term. very levels the in

Frank Laukien

half Cash at varies is just quarters. quarter-to-quarter. highly And million. our average flow was cash over first about flow over And looked from cash really $XX flow several best

Gerald Herman

yes. $XX roughly, million

Frank Laukien

So much, year. than higher much, last much

Tycho Peterson

you. Okay. Thank

Gerald Herman

You’re welcome.

Operator

Our next go with from Wells question. Leonard Dan from question ahead Please comes your Fargo.

Dan Leonard

Hi. Thanks for time. the

in So, I the on the perhaps the half? the a guidance to versus stack new could you looking not I am understand the reported are XXXX was deceleration frame first what compared what’s just to I XXXX given raise, the compared growth you in XXXX. But outlook sure growth for XH hoping question I comp. understand the in driving X-year deceleration versus you

Frank Laukien

Yes.

really quite just well. as are XXXX growth strong for full to we is growth and compared the think looking full also actually we So, year year the

will I and comparisons this they lower be year is have mathematically guidance then growth, the is year the just XX% be you math, much year, growth that rates relative our the at guidance And organic to the now of with last – second will heard. in the honestly. to half half. the pretty quite course, mean, raised the higher in due rest first Of much midpoint,

excellent happen, growth was we not compared a just have the will still XXXX pandemic. XXXX, a year, right. actually to think year for XXXX with but I There growth solid year-over-year and didn’t also very

as we if exercises it’s it can simply spreadsheet did. So, do a not that

Dan Leonard

like pretend didn’t would it happen. to I Maybe…

Frank Laukien

like be yes. Can that, all

Dan Leonard

any follow-up, and important or timsTOF Metabolomics the frame to Lipidomics or and be tertiary could proteomics applications way highlighted proteomics secondary to a there applications for equivalently is maybe as you to are timsTOF? compared they Frank, these on the

Frank Laukien

Yes, very good question.

usually they it quite sure. they now those markets take at So markets. much, are is let’s are libraries That’s capabilities new without unique having slightly timsTOF – XXx bigger sure, that a even couple ago, are of a also them. for – be and in XD-Lipidomics, people dominate for now the initially of actually maybe are to unique this more And for years we getting it these in opportunity bit then platform, are how proteomics to smaller But from together but or expected unique the working source. look make that And as out sensitive than addition. capabilities look a Lipidomics, and of the different, predict and at bit. these of proteomics when of will But and some XD these our terms two with and difference a we bunched start capabilities XD-Metabolomics markets those tried we perhaps in And flows. together pull are we Metabolomics, fields turns the us, would by quite larger that it omics they getting

you, or really maybe proteomics to good compared Just but like for a I X:X Lipidomics. have don’t Metabolomics, X:X number it’s

is is So, proteomics very But you certainly bigger rough sizing. it’s opportunity. it not that but smaller gives and a the negligible,

Dan Leonard

I Okay, perspective. you. that appreciate Thank

Operator

your Our Jack Research. Meehan next go from Nephron question ahead from with comes question. Please

Jack Meehan

and your try the look of half X% to as imply compounded seems question, to around compares Dan’s somewhere XXXX, basis, to and growth the half afternoon. a to versus that second back year, the maybe at that in Thank X% to, and guidance good around an you first Yes. on organic way, Wanted X% I compares year. of the first

So, Gerald, EPS, weighing revenue some And that you around the guidance that I comment for things is on was there curious phasing goes how income it? any can XQ might give be are statement? you talked on about, what the through

Frank Laukien

to. over turn I then and mean, Yes. part will I things the first take

your to That not quarter we So percentages, Jack, checked managing or I year are growth I we growth. terms all of fourth am we are quarter. sure very way directionally, the financial And managing and to the haven’t and the are progress are correct. but the in Yes. organic comfortable they third

any healthy a X-year we and that’s do you sticking Those the establish with our absolutely And and fine are on story, excellent on that’s managing And with can we to And we – very given growth are We pattern the year, are we think that. will calculations that. totally quarter. correct. for to growth year. are probably

are I and expect think comparison basis progress and for good XXXX is to rational we establish future. that making excellent in a a pattern the

I year, – us. next hopefully, sense future will it because they comparisons of comes will prior when year defensive they discussing or whatever the be So make will less I be to to am

take part? want You to the second

Gerald Herman

I operating solid to very with can see performance XX.X%. quarter in we Relative comments where margin tell a third second what the you up on quarter, your we put the is that

with to growth expectation we that see is will level there. revenue of continue a higher improvement Our organic some

prepared X.X the Accelerate have in Project We heavily. in more investing in my half. remarks, are, in second And however, our mentioned I the investments

in some improvements a we revenue So, to investments. continue from intending perspective, are despite strengthen strategic the investments to our

So, to don’t I other EPS specifically I want guidance on particular not going any or give really quarter. you a am color – to

about that third fourth in will quarter. the level. are quarter We directionally, and But full at little the fundamentally, areas year talk more spending strategic important the we a in

Frank Laukien

us satisfied in growing around the mean, that. XX% That terms with are are opportunity. I gives non-GAAP very of we we EPS, Look,

the will we we if into EPS We exactly we can have in business, we growth. to and that’s margin always And expansion we said it are doing. invest do are – committed will more, what

to maximize year. trying this not are We

trying to future our year. improvements invest are We this in excellent and deliver

Jack Meehan

XXXX. the think or going than on I back this bigger One great. strong results XXXX was curious step-up from year-over-year the other quarter. U.S. comp, to even sequentially the the was color thing more get but was in benefited Yes, to it year Obviously, the was prior quarter the I

might U.S. what driving on the in you would color here are seeing any been Just have the be that helpful? strength

Frank Laukien

was Biotyper U.S. year. broad-based, the strong last are actually biopharma really didn’t also COVID comes last also stronger, MALDI MALDI but U.S., have Sepsityper strong whereas year, biopharma to is Biotyper pretty weak testing biopharma any semiconductor. PCR getting in Yes. Yes, And which it’s strong, Biotyper MALDI even we and mind, and was revenue.

don’t I PCR U.S. to the So, applied do diagnostics, semiconductor, remarkably economy, things are overall, contribute microbiology not so, just they diagnostics. in but strong. are academic, – that. all We are – But industrial, insignificant, those they U.S. biopharma, the

Jack Meehan

Thanks Frank.

Operator

question your from Cowen. next with go Doug Schenkel ahead from question. comes Our Please

Doug Schenkel

Thank questions. for question for taking one then good guess, question one have longer my I and the kind higher-level of, outlook I guidance you afternoon. Hey, term.

that quarterly mind, this think guess assumes on So, and moderates guidance this. taking tougher the at and already. I second though, you half, pacing get Recognizing little at angle to comparisons first But bookings higher the when I maybe it’s the With in clear you been great sound it touched when comes has the on a on in different the trends. that bit level growth guidance look a midpoint.

XX%. think you I guys said

of doing QX. the QX, is – just on XX% comps, that in Again, quick I look around in still guide function world the X% if is but math, a And QX. uncertain. then right, a going is QX. the am to you I implies you growth is the have the this the kind to recognizing XX% it’s prudent but of to lot when a well, get And another Street. there think of I ahead component visibility This business of just way

pending revenue lot analyst guessing kind a kind markets back how those first about proteomics. thinking year to is of of just especially factoring you revenues impacting about bookings, are just pacing? I behind into are efforts and efforts on talk highlighted that’s then exciting existing you in am second the goes where how pending that the early the impact the that’s into your assuming thinking recent – So, XXXX. event, if emerging you I wondering to the and could capital just question, am what’s of something I question And of and it’s too end am but essentially

think little as would bit, interest be could well. you about Thank If I a talk that you. that of

Frank Laukien

In – just something QX. million on but to was reporting consensus we to am today, very or like I significantly, combative have today, be over-performed QX – $XX So, QX, not are be by the I about that. going we

good than sure, setting all, all over-delivering. criticize greatly that makes are So But a QX up important and us less QX. well, first of we but that. of looked that were And we for outperforming

So yes, that’s and guided quarters. – rest those are the just facts. The is future

delivering there are performance – we and really – pleased – The we are rest is with that our side repetitive. that very certainly, So, our would the appreciates. be the buy

We are managing the to year.

performance We and are year, this in QX. are over-performance improvements QX great having we then first and happy very in with our

to over-performance suppose they – gets maybe first better than to I to it that missed the would because my with if quarters, two you upfront I think a I risky. are it’s year QX, not lot more de-risk the be have – happy

So, it. from, where you quite know I get get I and don’t I don’t but coming it are I honestly,

way that’s that it. So the over-performance think we the anyway, with de-risking year do driving and year. I to And frankly, upfront are the

Doug Schenkel

think – wrong I are Frank, I think be, this taking maybe direct. Yes, your you I the guess, equally way to

with agreed most it’s did which I and a bit think good I the good – we in is lower. and a – think QX think that’s I you QX, half, guide. it’s look good call I a first job little really a more the at Secondly, have on think I

am let’s little just am doing it are think I of saying you to So, just not I to real actually the upside bias of there.” is a about kind good. kind saying, – “Hey, is we the I because would conservative and are be redirect not that’s I think we well it differently.

Frank Laukien

Okay, thank you.

outlook second proteomics. question higher-level on was the Your on

what And was question sorry, you on? can – of remind the me

Doug Schenkel

terms guys doing a you products. I am I new Bruker little your you of excitement. a generated attention the pipeline. or with lot And are get of with to just great that And more in of what starting think capable wondering, Yes, obviously have been

to XXXX on there about and it initiatives? about that it are think just where this we outlook little a more credit think – am resonating more the pipeline get you of or customers I with I as similar Street. think wondering for you XXXX to efforts are with as these some was attention already brought Wall starting

Frank Laukien

the we more the customers proteomics we then years, launched – successor have and X.X additional we Pro the think and have – we platform had differentiated really since timsTOF now years, products. for and I last other some for received X have time got ever

proteomics is And available There excellent, I at companies, about is because new so confusion proteomics products obviously think isn’t technologies a and complex that the new many and think recognition investors, much are more stories. the are are story among are they that looking there today. customer scientific I customers.

are we included that’s sometimes exciting proteomics stories because And factual. in

and And sometimes, there people have that I the kind look proteomics out companies, don’t mention issue. the of at sometimes two them don’t know, leading don’t even companies among proteomics which customers

I think think among And the I on Street it out. you the just we Wall customers, has side, as don’t So, that issue. helped pointed have

whatnot. stronger you now recognition and timsTOF and is it’s to some are them because And fifth and there and platform conferences with seventh and mass customers many XD-proteomics satisfied and the just conferences go of they for getting so go third interest, You are proteomic getting and the instruments spec are second really getting proteomics excellent. to many

among well companies certainly between a scientific community and other customers something academics capabilities the that’s there and changing the as there way. advanced So, that the as as in ways, extreme game customers, complementary and any – extremely community really, is have you some community scientific a difference team investment in biopharma started recognized some and get the well quite is can’t latter the

Doug Schenkel

Got it.

Okay. Thanks.

Operator

your Our from Brandon ahead question. Couillard go next Jefferies. Please from comes question with

Brandon Couillard

Hi, more are in a that on and the beds to for China and thanks. you softness just Can you for elaborate bit maybe Japan little the some you seeing in what you are what China Good alluded Frank, afternoon. quarter. second market looking in year?

Frank Laukien

been has and year weak. continues weak Japan this to Brandon, Yes. be

China, answer, it’s actually, I more answer. short In the much pretty differentiated. a it’s think that’s much So, pretty but

the was it’s QX a be year, all in and order strong. in weaker revenue for whole BSI in there. yes, little China think BSI bookings I were will as QX it in for good almost But very although China very,

to China China, strong because we So, we is a Remember But XXXX, we even little earlier to yes, began already this bit paperwork in year. of a much had others. much, an to going of think comparison in And point maybe expect tougher that’s also that the – than little already quarters. over recover the be we additional that’s a and China QX will have out China between QX discrepancy some associated with… revenue

Gerald Herman

the for customers. certificates academic tax It’s certain exemption

Frank Laukien

be year but as much and for growth will okay China the a in will not be QX. So, contributor, strong

us, yet least are Probably will now, Japan isn’t would is maybe world and one that’s weaker just you priorities. spending Japan So, strong. the additional single if for you in booming the be in right. But Olympics been not – at out the any Japan. right after that year have has single economy this

Brandon Couillard

Got it. Thank you.

Operator

Our comes Josh next Cleveland Please your Waldman ahead from go with question. question from Research.

Josh Waldman

for taking guys. in. Hi Thanks me

follow-up further or else? – unpack a are Is Q&A, Analyst China, you Bruker’s changes underway you the there is the at Is on that mentioned anything think Just on tax I some believe exemptions just I that in alluded China. to the there? that to something is the it Day,

Gerald Herman

Gerald. it’s Josh, Hi Yes.

renewed happening in activities strong and Chinese or actually which exemption certificates, delay a our BSI exemption actually of bookings performance in got a just we authorities. coming that’s those created order recalibrated that is QX, getting groups. have the very just China through some what’s across bit tax So, is their delays. It’s They in

activity at So, stage. than else it’s push-out more this anything

Josh Waldman

it. Got

orders no of So more… book out dropping the

Gerald Herman

no. No,

across have have order all I in before, robust the groups a said bookings very we China. As performance

Josh Waldman

maybe to ability to comment to your ability based kind of And is mean is even on to then delays and guess, later your order it. from growth in on shipments to shipment I willingness? delaying ability Got year, hit XXXX or appetite the of the on out maybe what trying growth out XXXX? guide like manage earlier your Any I benefits potential or or by, revenue the it purposely ability on your from on any comments unforeseen trends, I XXXX. the shipments more concern less seems guess

Frank Laukien

Good question.

of in certainly there is. diverse. are conservatism rates, scientific year, capturing as there objective, And We I the there mean is or of vaccination an contradictory including there mean there built obviously we are is it, arguments is right. see and that conclusion – are the will And to can. how revenue don’t well, a different all I bit severe statements countries little delta it, it’s is hospitalizations pretty X extremely have different death rates. that are then countries react vulnerable, you there how high And

and see You that are whatever, or but immunity, that, which herd vaccination big another come it’s not of will probably be saw in makes you it we infections now clear that with a high that that, in QX. – mind, you settle high, and to can’t don’t Asia, Countries just something will hospitalizations, what We will difference. perhaps along just right. see of There course, a UK happen that wave, wave debate. be and in India, Southeast others rates

could being cautious also there So, slow that disruptions we are other supply somewhat down. us

not conservatism, are adequately some we little But bit but more make in we risks reflected our really but teams is that I we itself we work far, have production our well, guidance. that, managed how we with there remainder the still And out. – the ever in either. plays before. of will And mean, for much than much, logistics and to of built hopefully So want see excessive a that supply it have and for year

Josh Waldman

Frank. Thanks

Operator

ladies ending to question-and-answer like today’s floor for session. And over turn we I will remarks. Miroslava gentlemen, back and that, be the with closing to Minkova would

Miroslava Minkova

today. us Thank you joining for

third you during Bruker meeting have Conference. event quarter XXXX will forward We during the Virtual and the Wells you, you the participate evening. the in quarter, nice Thank During Fargo an directly or a at to quarter. with look Healthcare

Operator

for gentlemen, conference with attending. call. will We thank and conclude you do Ladies today’s that, we

disconnect your now You may lines.

Bruker (BRKR) 3 Aug 212021 Q2 Earnings call transcript