BRKR - Earnings call transcript Q1 2022

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Operator

Good morning, everyone, and welcome to the Bruker's First Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please also note that today's event is being recorded. At this time, I'd like to turn the conference call over to Justin Ward, Senior Director of Investor Relations and Corporate Development. ahead. go please Sir,

Justin Ward

Senior good Corporation's would conference first Justin am name and Corporate Relations everyone Development. call. to to is Bruker's, I and Bruker quarter Ward, of morning. you, Investor like and I welcome My Director Thank XXXX earnings

today's Frank me Gerald President and Laukien, and on Joining our CFO. Executive our CEO, Herman, Vice call are President and

be call, slide release In issued earlier Investor can conference the presentation today's a referencing earnings Bruker's we from and we to Events be addition during will of the Presentation downloaded that today, section website. Relations

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

I statement, like safe X would on Slide Bruker's reference which the shown begin, presentation. harbor of to Before is we

Factors August related reasons actual XXXX. statements. the materially law as SEC's events, forward-looking During on based please We the X, earnings quarter regarding statements and uncertainties, to, of other of prior which based discussed Company, or our our as financial in our conditions of will may our and the be for that today's statements results Also, filings, differ do are involve for Form not to operational update and by COVID-XX and inflation chain, our early on future challenges. logistics, expected new events results those geopolitical this website. we intend SEC to and performance conference financial and pandemic cause today, and period information, but the on to XXXX second by XXXX. that on information call, our business updated risks might the release to required supply risks, available not the future except XX-K from other in note may forward-looking make current is following XXXX, those in differences such December May outlook website ending and limited XX, release Company's are such The include, that as including

rely necessarily or You on any outlook not should forward-looking our statements date representing after as views these today. of as

begin will first our progress. overview and in then share more cover business for will Gerald providing Frank financials of call an the We outlook. quarter year financial fiscal our with today's the detail XXXX updated

call Now, over Frank the to CEO, I'd Laukien. to like Bruker's turn

Frank Laukien

XXXX Justin. everyone, Thanks, Good thank earnings on you morning, joining quarter today's for and us first call.

organic first you China. you solid in that even and Slide stronger of go represent Ukraine in a challenges organic good in performance quarter X, see can bookings Bruker's in growth lockdowns XX.X% a to and growth the If revenue war with light

continued demand As a instruments any reminder, drag. revenue momentum bookings in our we differentiated and China. science scientific strong in solutions for life resulted have manufacturing supply organic operations in despite growth do logistics a not and Excellent and high-value chain

while XX.X% minus of constant net headwind implies exchange XX.X%, year-over-year. QX X.X%. quarter For This growth and all ratio about and Bruker's XX% BSI organic X%. XXXX organic BSI X.X% currency an first $XXX Scientific growth organic revenues of were a intercompany included at which Bruker with XXXX, percentage four Instruments basis, our the groups double-digit X.X% revenues bookings of our greater than increased in strongly eliminations, to with rate segment, or growth book-to-bill year-over-year with added up from BSI increased of bookings million X.X. On BEST acquisitions Bruker growth

capabilities of quarter by non-GAAP to $X.XX and an and increase of $X.XX of chain, was offsets XXXX. an diluted than margin tailwinds. reported more commercial $X.XX, operating QX by On was XX.X%, in headwinds, of Our planned diluted a was increased XX.X% in as the first $X.XX XXX XXXX R&D basis, EPS XX.X%, bps compared non-GAAP year-over-year. EPS currency margin Bruker while logistics in margin QX to GAAP inflation from In which first the XXXX, increase XXXX. XXXX expansion year-over-year of XXX quarter well offset supply bps quarter reported first of non-GAAP Gross gross as investments partially

plus first faced comparison trailing first invested us percentage. our disciplined broad-based recent currency million first and NMRs constant first X.X, and XXXX in which Please believe strength X groups double-digit in our difficult the investments the low in by Bruker was quarter Accelerate XXXX with and selected focus additional XXXX basis. the return virtually well technology In in of of capital as as markets of across quarter and in is Project summary, applied where industry. in Bruker the of highlight bookings the as quarter to with among BioSpin and first turn Group Our BEST the leaders XX-month capabilities on XX.X%, management We In all BioSpin of we a in process single-digit XXXX, supplemented were segment, a and XXXX. revenue bolt-on of in on X as organic growth, growth our organic they with our April. quarter was acquisitions $XXX entrepreneurialism result a businesses now our acquisitions. three strong further instruments Slides and all the demand first biopharma investments this well the the quarter quarter quarter puts on as grew our proteomics, of year-over-year scientific was none performance the gigahertz-class in and two

April. just We four with accepted NMRs gigahertz expect XXXX in continue to in gigahertz-class revenue a in X.X system

broader applied technology. revenue. BioSpin will we particularly on spectrum, And enable the double-digit X.X note analysis. single-story advanced like, launched Evo applications, to XX bookings the on pharmaceutical you this discovery Fourier FT-NMR and system preclinical QX drug achieved and our access our compact, an end include to new to other our BioSpin biology labs more magnet if be gigahertz Ascend and also growth. saw give in of BioSpin imaging in capabilities benchtop revenues markets business in of innovations gigahertz structural So robust growth in

Moving CALID. to on

in For and the Group strong first low XXXX, molecular million percentage $XXX microbiology the increased double-digit the of with spectroscopy. in quarter of CALID growth revenue

in Our continues recovery platform further its gradual we and by timsTOF coupled adoption diagnostics molecular consumables. growth. excellent products epiproteomics and the in with XD platform. year-over-year our driven strong MALDI And QX, proteomics, enhancements had capability for bookings timsTOF key Microbiology announced and tuberculosis Biotyper platform growth systems This of was multiomics. demand delivered a for revenue

our syndromic turn now. to panels panels LiquidArray X more excited come. next-generation We launch the Conference of April assays to are Slide Please in these PCR, about with Mid-Plex of XXXX the ECCMID's LiquidArray at and

our well Bruker and and academic, advanced teens NANO tools very in metrology XXXX industrial million $XXX semicon revenue strong. quarter delivered the NANO was remain semiconductor backlog. tools First surfaces high and strong and NANO's Revenue performed in metrology bookings for and grew all X-ray microelectronics the with growth and percentage. NANO markets strong quarter NANO's

Our dynamic that CX and fluorescence science Canopy range, life to resolution CellScape and on very the our subsidiary microscopy Spatialbiology XX innovation research revenue outstanding with high next-generation We sharply up note product with ChipCytometry eight launched strong demand. in throughput the a subcellular quantitation unique. for was instrument

in driven but we strong very challenges. gains the grew MRI by quarter customers. supply by our percentage BEST demand demand and experienced chain intercompany superconductor healthy, high-XXs share first OEM BEST Finally, net revenues of eliminations appears

and X. X to Moving Slides

many X.X which revenues. magnet technological more marvel make drug quite XXXX a our of really a X.X XX% Project to to On good put we our capabilities enabling that It's researchers continue functional introduction biology progress highlight Evo very structural structural Slide We biology initiatives, in ultra-high gigahertz. the represented and Ascend recent Accelerate compact, into called that NMR able the with will single-story X, total of to NMR. lab field discovery gigahertz provide access being of these single-story

Kelvin, well and is this but also key timely. factor by and is convenient very, longer developed X.X a gigahertz as case helium high-temperature labs grants That's technologies very X.X for superconductors PI is significant this reduces operating at the which This really for and So very for consumption result national of and at three. customers. only, no co-PI we've of a hybrid biopharma as in for

So new technology. very exciting

our XXXX package, talk and display, data this you going in our of metrology go microelectronics. storage Accelerate bullets QX here not including and X, was to on it Slide in Moving remind – X.X, year-over-year and in in of initiative, on certainly up technology low-XXs was up business, the where XXXX, in that and semiconductor about am the I X% all and to high to we through in metrology year-over-year XXXX. semiconductor segment NANO teens particular again revenues wanted about slide. Project in just the in up BSI I

is us day, that All for affect tools Bruker that advanced quality quite chip on lives. something packaging instruments we demand lot after new you very tends margins, portfolio. of business right. growth the summary, technologies solutions unique and to are using see here that two much continues crucial and One strong and these don't good require for our X-ray technology, of have that experience So every enabling for where very strong on that examples. that are differentiated control, but have from more absolutely and outlook. our our a so probably manufacturing tools to are XD chips unique, right packaging diffraction next-generation across Enough In

or for well. high-growth, growth, semicon firing we And move our as our X.X backlog as backlog and for many year environment. accelerated to visibility us a well proteomics, from to here. in metrology how high spatial We environment navigate that really example, performed on Our to we growth. investments [except], teams well in cylinders And benefit biopharma manage technology have our Project well. fiscal I executed biology, chain Accelerate reiterate being high-margin NANO high good as challenging very in ramp with in pleased on am initiatives gives cylinders applied XXXX, and able in supply logistics and through all intention a

over XXXX then So to outlook in will me call review turn Gerald, raise and year more our performance fiscal financial let who QX detail. the Chief Financial Bruker's now Officer, Gerald?

Gerald Herman

the non-GAAP of from to thank the first $XXX XX. which to of approximately joining On an first X.X% in increase an of of in revenue you, Bruker's I'm Thank and on compared XXXX. XXXX organic quarter year-over-year. to increase for QX today. pleased first performance million on quarter share, reported you, XXXX. reported detail $X.XX $X.XX increased reflects $X.XX was a quarter per Frank share In EPS financial of XXXX Slide of basis, XXXX, $X.XX more revenue Bruker's everyone quarter provide the starting us EPS per GAAP XX.X% XX.X% We first

of investments basis has Frank with already non-GAAP reasons $XXX Our and reviewed. to income QX cash operating XXX finished equivalents and our cash, points for short-term first increased year-over-year operating margin the We XX.X% approximately quarter XX.X% grew non-GAAP XXXX the million. to

quarter, we our and the selected complete fund to During ramp tranche share repurchases. debt investments, acquisitions bolt-on Accelerate fund proteomics, repay X.X expenditures, $XXX in capital several Project of used cash technology million XXXX

in may to May, we XXXX, You the share XXXX, for our repurchased first that $XXX XXXX. million. X.X shares a Board up of recall May, million about through approximately authorization million $XXX two approved quarter In repurchase year

free in approximately reminder, shares XXXX. the $XXX a resulting of to a operating repayments. the due generated quarter quarter tax million. repurchased We of year quarter first cash for first and million $XX.X from decline fiscal mostly in As million XXXX, partially CapEx of investments first we offset timing X.X by flow cash million represents to XXXX, flow XXXX, in This $XX.X the $XX.X of the in million of

as high shows in earlier. the to low to BioSpin’s Turning due XX, to XXXX, quarter comparison the organic quarter quarter bridge single-digit gigahertz-class European of businesses. mix grew percentage, revenue the the difficult organic strong XXXX the XXXX NMR organic for discussed Slide percentage revenue NANO's NANO single-digit Biotyper revenue the first MALDI academic, first with Compared research headwinds. the a grew platform. coming against first from CALID and from performance grew high percentage strength teens industrial in revenue resulting semiconductor

quarter first XXXX on BSI XXXX, single-digit grew teens the the North organically the aftermarket Geographically the to an organically, American while low BSI high range our quarter revenue systems in in first quarter in revenue XXXX. compared increased in and organic revenue XX% range. basis, grew our First the low

European while growth Asia the percentage, digits low-single year-over-year. declined percentage Pacific grew single-digit in in the high all revenue

of and XXX quarter rest XX% supply XXXX, XX.X% basis chain performed leverage Project first performance the in first basis. Non-GAAP benefiting XX.X% the revenue principally revenue quarter mix from Slide margin higher by offset higher from from operating points first shows well, partially logistics Our challenges. non-GAAP as range. XXXX in our significantly on the of was XX P&L a volume Accelerate quarter low XXXX our world increased gross initiatives

operating than first investments First percentage XX.X% the quarter quarter points driven higher XX.X% the XXX first XXXX growth growth support quarter products. by of the European sale two a partially first by offset the from which quarter systems increased margin margin our expansion to basis the higher revenue expansion, of headwind XXXX gigahertz-class BioSpin’s had in XXXX as on revenue, year-over-year XXXX offset margin margin in property. in sales gain a marketing was was the of BioSpin non-GAAP and operating a of by

non-GAAP we with the in China, Given ramp to in sequentially outpace non-GAAP EPS. headwind XXXX for the the half sequentially slightly quarter we XXXX moderately lockdowns of will operating similar first XXXXs our quarter be XXXX second margins our QX expense ramp declining to revenue second that, before from and from And in the XXXX that expect Bruker fiscal EPS second year versus operating quarter result half. the first expect expanding

For of $XXX.X XX.X% first past our rate the a shares repurchases the due were tax XXXX, first non-GAAP quarter approximately XXXX effective resulting to unfavorable to million, in discrete from X.X% compared XXXX first reduction in X.X items. share of Weighted quarter the XX.X% diluted primarily first average from the tax outstanding the million shares certain XXXX, was of of over months. XX or quarter

EPS Finally, to quarter first non-GAAP XXXX. $X.XX the quarter up XXXX XX.X% compared of first of was

quarter of XXXX days, Our XX from to at first late receivables compared of first and the timing. the an cycle primarily cash the conversion increase shipments XXXX resulting quarter was days end quarter XXX a

now to Slide XX. Turning

strength for organic the broad-based are and for of we in quarter the growth the first revenue revenue year. Given and record our our bookings in backlog, XXXX guidance growth increasing

headwind exchange updated headwind our X% XXXX from of to year-over-year, growth about X% outlook our Our an X% estimate fiscal than We for currency guidance. X.X% includes guidance. a increase year foreign stronger of of X% organic prior revenue foreign prior

contribute XX points supply inflation level of from challenging. in margin maintaining to XXXX. about our a environments growth We lead This we guidance chain, remain basis and are expect of guidance to to consistent prior growth X%. XXXX basis of the to acquisitions The guidance. operating XX.X% we And X% with prior the revenue to and expansion logistics of points our in from volatile in up X.X% is expected range to reported XX delivered X%

$X.XX we non-GAAP line, a which on project estimated assumptions compared XXXX. On for now of fiscal would the EPS year the of for EPS XX.X% bottom to year rate represent to are XXXX, range guidance non-GAAP XXXX. reiterate XX% of $X.XX growth our Other approximately non-GAAP We tax listed slide. X% fiscal to

of been as the updated year fiscal have XXXX March for currency XXXX. XX, Our ranges rates foreign

or to the For organic the China geopolitical other year-over-year second negatively XXXX, quarter impact in for which outlook of that in digits is growth of risks, revenue mid-to-high subject, course, our growth. COVID-related single could lockdowns further

confidence and to deliver very backlog XXXX. the environment. quarter, teams And delivered us first you in our many to challenging organic remarkable with the a like as to that, call financial solid broad-based the giving momentum strong Justin performance Bruker revenue to wrap-up, the over across businesses I'd much. in delivered start our is another ability of bookings, Q&A in session. very Thank turn So solid performance in Demand to growth

Justin Ward

the like now call. I'd portion Gerald. to to call the to you, Thank over Q&A turn the operator begin the of

for we that to portion. As limit Operator, for question are we one one Q&A everyone a yourself questions, reminder, allow to time and ask the ready follow-up. you

Operator

Our question. from with SVB first ahead Please comes question from Souda Securities. Instructions] your [Operator Puneet go

Puneet Souda

strong Frank. of all, the quarter first Hi, on here. congrats a questions. And for taking Thanks Yes.

one are full-year? really pricing. the much First guide I you in from the how what's mean, on quarter seeing instruments contribution the and in for on expectations baked pricing the is for into

Gerald Herman

Well, mind, Puneet. I'll take if that, It's don't you Gerald.

backlog through fundamentally, one bit a of exercising have from have challenges of that that we're backlog. perspective quite the realization we we is of Just price course a and

see the the of first half realization although So so in to we not more I we latter year. think see much price are is what in the do expecting quarter,

this of us two product as you quarter As know into a more usually in through likely NMR our business. or we backlog actual takes side revenue exercise cycle significantly times

So as quarter, the say I in I'd not more realization modest. much the to we price move would of first too rest But seeing we're see pretty expect through year. the

Puneet Souda

the the but there. of I make Okay. could of instruments? Just one Got that's mix magnet, we it. quarter, new on backlog that for coming timsTOF How book-to-bill much to seeing then cadence the And think you're elaborate Fourier other mentioned how wanted NMR? that sure much strong gigahertz of key you for maybe UHF the just And to the the NMR, building and have understand you is trying more here, just full-year? next is

Frank Laukien

that Puneet, It's you. Frank. one. Thank I'll take

really broad-based. strength timsTOF. out because been organic But than growth It in in not It it's our segment growth NMR. something fairly it's BioSpin almost quite in Sure the growing NANO faster even fair momentum. strong technology. throughout has book-to-bill very and So really in it's to some of It faster, strong in revenue been has orders is X.X QX are quite strong bookings but been continuing is strong the particularly single even and broad-based. organic so BSI

was none XXXX. On in the gigahertz there question, yes, QX

of cadence quarter. three second We expect already there probably as but in second be the more know more that quarter, we And there'll one in April, the and over is spread therefore be than half New – Munich in we one, accepted in yet. the the revenue the for the balance one year, to of exact just the don't

Puneet Souda

Okay. Got it.

Frank Laukien

your of question. most [Indiscernible]

Puneet Souda

metrology. appreciate coming is from really great see to this sort a how much really I record of semiconductor on, one, just ask And if quick revenues the in Yes. Frank, I it. could of how years expect the Thank out new through we trend world? factories you. that built coming sort Board are on this as being these should to across and fabs the new of

Frank Laukien

are asked that actually That's fabs semiconductor capability much Yes. none of away We just frequently new trends. Europe good to And and business. an to XXXX XXXX, wants U.S., in that all don't in wants Japan more, question. that Europe the asked [indiscernible] the Taiwan XXXX, to get more I more U.S. Japan. APAC expand have geopolitical driver. that long-term right? and also in probably it, close That's to have be by way, glad most Those for the of have a know, to This is footprint could from you additional the wants

a very fashionable, we good for demand on that's demand. other but on So all still think zooms a little XXXX, because maybe from and I now the less being thing many the and artificial very intelligence, XXXX, trends right driving are Bitcoins, know, us, all don't sheer just strong

XXXX. In for Europe with revenue role XXXX. nicely very we it see up XXXX fact, a as maybe And line the investments XXXX, is throughout the in probably bigger industry maybe XXXX, we demand playing behind think in it, in may Japan and America, North and actually geopolitical

in actually technology tell. So far as very strong NANO long-term it's picture as we can

Puneet Souda

Great. Thanks, congrats and again.

Frank Laukien

you. Thank

Operator

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

Unidentified Analyst

of saw you the discuss This the quarter could you which expect to impact you the headwinds on the Thank is I guess, balance Good first quantify year? the recover you. across for extent Derik. to in that you second demand Hi. Could across any morning. Peter and in And quarter? China any

Gerald Herman

take don't mind. Yes. that, if Peter, it's Gerald. I'll you

So consistently quite in frankly, absolutely, I no continued has exception the XXXX. quite China generally say mostly And revenue line. here time, both remarkable in across And would mostly is for bookings I some think quarter-by-quarter. this first the quarter really well in seen as as performance the but speaking, not demand we've

the the relative the now course, We into a that concern, of that. about is lockdowns on our to are the view strong respect very very the encouraging to But it this that because in way currently. are in I speaking some dampening opposed clearly risk markets. a with we overall do And execution broadens, and performance is that's China first. individual the would going of to from across us quarter ability bookings And further seeing think for in almost our puts now to if I perspective as I all revenue. that really it's the think this say is second execution

Frank Laukien

single And year-over-year QX. – growth to with organic we'll revenue mid single-digit that we high to think have in mid

of the is Now, massive acceleration seeing bit if there we're assumed but that tightening have levels lockdowns additional risk, and would that obviously today, little cautious and we been of a we year. a present sort more would the in catch of QX. the anything think up for year. next accordingly push moment We color on at QX do our don't into can the see that that that remainder what on that We

it's – question we're on yes, So QX a more bit think a we're I conservative quarterly accordingly. cadence and

Unidentified Analyst

and then And the could us you're in of form margin given the parse to the rest chain flowing through bit op could? decision dynamics you that. supply strength margin, more if to Appreciate you out maintain guess topline a EPS and give the you on maybe so on the color quantify I could seeing mean, impact maybe little If the I change guidance? P&L, or

Gerald Herman

take again. It's Yes. I'll that. Gerald,

we go in just available. mean, laid say operating detail, that pretty that And considered including picture, the line. guess see up, is consider minuses, factors, through the We've strength all you'd and And the number out. into margin I bookings trying and performance the can like. of won't the are including of the in that heard have downs some if moving a move that So our number just we've we've detail some baked I in you've we about. supply chain of to I I through would I risks comfortable up more mean, that do generally that just pluses guidance we and guidance, a with also overall information what think you go on of go But we're generally the but the with Justin, have that. course, we I of along with

what – understand to us So this guidance stage pretty we I clear reflects at our now. that's that right think it's

Unidentified Analyst

good. Very you. Thank

Gerald Herman

You're welcome.

Operator

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

Brandon Couillard

your Hey. in NMR your on Thanks. own timing, supply or installation think you assessment of your internal Good helium and now, right perhaps of of global terms orders of costs? or view the kind morning. that's Frank, supply impacting kind situation your even let's kind get whether

Frank Laukien

Yes.

So good question, Brandon.

our cost has under hospitals ENC, France in voluntary, by timed very some and scheduled there universities and anecdotally investments the So kind off investments. not [indiscernible] We're and well superconducting an generally or experiments large investments considerable factory our are gone MRIs helium in first re-liquefaction turn seem They in of up heard where That's cases are could NMRs customers two helium at in the in Hanau of in what always tend the now physics to to for allocation. CapEx at the a a voluntary We've delay quarter – we two. be the outside those regularly well. seem and delay exception. last our CapEx be or as lot factories additional made making years in affected, Switzerland, internal Frankfurt or

are And really well. really, shape. just good So our factories anticipated in we

You that takes Xx developments a that gigahertz technology that magnet single-story just did liquid new we see some helium. introduction, less like

end So introduced on also I – we we the a didn't the Heliosmart at Recovery those also are solution. April just – call, of highlighted

of then and for their all if site magnets boils from the that or suppliers. out one somewhere superconducting compress industry of we in and own do university So at at to re-liquefaction it send all, choose capture just and the of helium their that they liquid can their it pressurize say them either as it, customers, or regional more and a do

it's difficult, more it's think manageable and I expensive. So it's

[circular] we're in final that test that with developments very supporting is have situation of fortunately in and more our strongly shape. invested economy we be that that and factory good our so there'll So helium internally,

So we're very the answer. with of that's new our I well far, services. obviously proactive manageable it's customers’ new for capabilities Yes, so both as it in for as terms think investments but

Brandon Couillard

Great. Okay.

and Europe [indiscernible] is overall to you last think low-single installation digits, is underlying said the due all comp that date? I year Now down from NMR that impact

Frank Laukien

Europe I in major we a But – in bit simply geographies. catch. That's bit two among there little three mean, QX, little Good a now a others. than the is had Europe, I'd right bit is addition slower the gigahertz-class say systems. weaker

QX much of piece. million European right of now that too that of Europe XXXX, $XX attention so in don't a it was differences. strongest, APAC, it's the major year we QX ago, it's country the there's right America don't of of to say about Slightly I'd geographies. obviously revenue pay that north country to North most But XXXX we have in and than APAC among weaker or So now had

Brandon Couillard

Great. Thanks.

Operator

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

Joshua Waldman

XXX it cost it with stronger Frank. One the kind It quarter. here you a taking points doesn't still seeing, for Gerald forget for you Thanks were margins chain was through seems And points Bruker than and costs? can mean, morning. controlling to Good versus supply like anticipated of step time if I dynamic respect you're one then in was guess, in for it more the first my I second Gerald, price like basis a basis questions. spend the but XXX bit you more of maybe sound reflection you mentioned, up the I kind to are price. expecting a talking op yes, margins? then, half of

Gerald Herman

Yes.

So of I'll your question start your first. with just maybe last part

outperform an to operating expectation margin clarify, second between first significantly half we'll The half. XXX half. change perspective from second just laid points that we out and is the So basis in around initially

we put not much did the So price that just I just in back see to speaking, to those numbers. relatively realization first quarter. But mean,

elements has this earlier, conditions. by very outstanding materials think, related logistics, was done for of supply to teams costs. in to There's margin both as I that. chain helping Accelerate air is teams lot job well did is just in challenging I to think as true pull addition, did an to to partly which initiatives, our And of navigating work the a number some I mentioned level. due another with to procurement a that headwinds supply I outstanding manage X.X Project through As And do side. freight we and our that This significant costs other gross the think our, chain of through our see mix, expansion

Frank Laukien

Yes.

point. fundamental at I you've the the key think that's been that trend seeing. really Bruker That's

and least continue gross logistic noise We the some inflation But more higher margin and fundamental margin manage headwinds see solutions do have to have spikes that's will right to at from systems try ramping our driver and in continues that even that and We was and more trend around. just that. despite and that gross inflation the see been than that and now. we QX stronger services

Gerald Herman

Yes. Exactly.

So that's storyline, quarter kind occurring Project some our Accelerate the of we issues in think some second further in and well. expect the activities of as ramp quarter second see I the cost to

of little we're why the that's I'd margin, So to reaccelerate in quarter second a but the more half year. expect the cautious, operating second in say

Joshua Waldman

it. Got

see think orders when Okay. And double-digit mentioned the then academic the university how would growth bookings guess, to last kind update accounts I on from Frank, Yes, specifically from previously the and and can U.S. Europe? these you of you've through? of give and government you in strong you're an what in here to over kind quarter? accounts revenue I couple did start flow government the And of quarters. contribute seeing

Frank Laukien

additional that. it's to we're just how our of and we them, Both is We long and on Europe integrate and X, drug even long-term short drug UK into acquisition to business, added and particularly see also ours April some of geographies. quite We're an important lot companies for saw we're the upfront doing into, into proteomics in in we in Metabolomics becoming stronger with China. add technologies other systems that'll awful other discovery, I Europe. we obviously newer tools into also CROs. inorganically a wave, it's mean, in that pharma I our see both We both also and U.S., U.S., timsTOF beginning We've the in process to Biopharma now Biopharma Biopharma of that vendors mass in in We're very right. timsTOF not a single further beginning Proteomics, path, but sell also seeing see the NMR that and that biotech and trend sell a companies China, research on and capability spec Well, stronger. the delightfully in just analytical Optimal see that, mean, timsTOF but and lot well discovery. and NMRs large and an cell

is So like some and us. stronger for spectroscopy and it's small biopharma lines only The molecular the And becoming other then including not molecule for business. also path. product academic stronger

it's a picture. it's good a – So solid

Joshua Waldman

for Got all it. color. Thanks the

Frank Laukien

Thank you, Josh.

Operator

Patrick Donnelly go with question. from Please Our next Citi. ahead your from comes question

Patrick Donnelly

It that that's terms Maybe like Is supply better, one escalating, lot on seeing? chain. getting it something of quarter. front? little see of in you're that more of you've what you seeing guys a are seems last point, what the curious, not perspective this love a supply risk not getting forward the chain plateaued, and just kind at to Gerald, on Obviously, side through worse that. talked we'd it's the you're and managing going seeing it you're what a its just on about on more side cost I'm disruptive

Gerald Herman

this, disruption I issue. the wish do better, I quarter the and Well, tell this could say challenging true relative need I in it's to getting that's extremely unfortunately that a first lot been been of and to I you also there It's has business, in cannot.

see think teams, outstanding system. but challenging. And just I through through our working is, starting to that, as we latter the I year, working we're as it's in half There's the expect way the the way pressure think done chain world. had still disruptions said those what have of in to more the the pandemic our earlier, supply era, job. I in just – hopefully cost And obviously to say an in still we're we're

Frank Laukien

do I very that but imagine product of we disastrous. not much, that mean, have But don't something we couple for where that completely is can't acknowledge NMR a our XX a we're continue. can't product weeks, lines, mass business spec we anything for quarter. know, we other you or lines It's stops there where

year. broad-based good the water. backlog under products, are manage like being the we're aren't and this It's company be benefit it's the not can helping excellent that, going very this year. the in next year. all better lockdowns this to maybe year better very We're hard duck it's so all we like with kicking through manageable. on But the this. surface. And demand, It’s just China of many well And But getting of and getting into not really strong that

Patrick Donnelly

the That’s the a bit, on the seemed growth What I'm orders on Thanks. could. It’s the pin you the about it helpful, growth in segments. was across I Frank. know a vague? bit X.X, like obviously quick XX%, one double-digit you talked Appreciate that. And So trying maybe just just book-to-bill to down a that little little quarter? if double-digits, XX%, orders, order

Frank Laukien

we group. obviously they – double-digit. line a varies of segment range from in very and digits, them, X.X greater to double it product in to why is is single – some Yes. one some there's product in were the orders didn't was for yes, It in And the every line teen, But X.X double-digit correct. the than That's principle, BSI mix XXs, the I know all a broad strong. obviously right. but there and of group

Patrick Donnelly

Frank. Thanks,

Frank Laukien

welcome, You're Patrick.

Operator

And your our ahead Meehan Please from with Nephron. question go next from comes question. Jack

Jack Meehan

about could for instruments What any number And able to Thanks. you're given curious was for you expand that gigahertz year? compact X.X demand perspective, Good efficiencies does deliver system. of you addressable market? I the in you do with Frank, opportunity can are a the here NMR, talk this in new a to for there enable the gigahertz-class the think just morning. manufacturing

Frank Laukien

I love good it's one, your question yes. a because

re-liquefaction there – big ability a small things not don't is distinct to two were been some gigahertz they the far they is There for NSF, capabilities announced the these X.X, X.X far and think orders are Nobody the had previously, have considering and that really those. centers to so additive that, all by had That's because got now and it's also national at systems that. we I often big labs when on two X.X have funded has – where all affecting story right, by gigahertz but the not it's impact we demand like anyway, NAND like any so so demand, these So systems. helium it those demand. pocket that. of

a told order. pipeline that when with we a think the importantly And a can a et a school are or typically, at magnet or one centers, But demand they're get simply smaller four those the co-PIs lot major more of in national their think, of less Now single them but, for PIs, cancer plus maybe continue bunch medical university or that your to will at like PI they're footprint colleagues, think these finally, we'll or broadens there. [indiscernible] I cetera, oh, really or I institute justify. delighted a to wouldn't it getting they There's research few who something of question consumption. and less three wow,

some think, end see of that very we high will that I Orlando, two previously asking So anecdotal all that Conference pharma biopharma also got at we in. some considered systems. for previously – interested hadn't that these And that in wouldn't NMR budgets introduced one demand where very people in just considered was story we have and at conference,

it's X.X it's I a production And on half – additive. more least the additive, other and demand, think it's that really So than gigahertz of at line. but test separate final think all part, not it's I

three normal production from that's line, to out say completely that. I owe everything – our not different with XXX So let's a But tons. it those additive normal just Swiss is megahertz so magnet process, our production systems. to capacity. comes don't you under want of This

And would for away vice-versa. so even gigahertz our capacity orders or two-story, got all, new X.X, from of it a for bunch the take magnet, not if X.X at we this

by of in get and that magnet, a new more easier production different, this line. a much very than essentially we So compact if straight out more orders doubled we taking when sense our capabilities production and

Jack Meehan

then CALID. And follow-ups two Great. on

First, And could assays, these multiplex COVID what some other investments? you're second, and give the press then a versus new PCR in the release talking quarter? some terms were us of positioning expecting sales just here of just about multiplex you tell ramp from players what growth the us recently LiquidArray a in on color had just

Frank Laukien

you. thank yes, So

we which had not PCR, testing, COVID in anticipated. in was as then the as as Considerably, know, only it that's and we more you testing and up, year-over-year much and ended it's declining So not declining all antigen Europe declining. do quite popular Africa

relatively de QX So stronger a it anticipated, what million little it at minimis. point in was we a stronger, is I that think, had this

like or that. maybe per I think million something it like XX quarter something

it number been a not declined. So has big it's and

going are sort it's or XXX lab in the little we local. it's same in but is for for the really or not that We diagnostics maybe our dollars are syndromic us. coming there These new molecular hang non-issue but of from further, These actually In or that for expected XXX tuberculosis at a that come It's multiplex factory panels that's the market. LiquidArray the R&D that range. to panel lab, the and but business point a hospital the and or euro that's where cost business, down at and in are affordable. From level, that second almost bit other or think much sense, euro, These it these central business, of that to indeed side more care. don't lab generation. $XX

So the for nice very much the of initial automation, ones affordable, tuberculosis capabilities. range more are broad resistance

of very often initially. a we by patients seven tested always no Very one gastrointestinal may launch. can get are capabilities, they the combined nice on because out way, and for or that ones overlooked. transmitted these something in have we they're do works We the other different tested two is say in one and don't sexually panel but are And there diseases all the have that for, often there European When I launches get also launch, very test.

up this the democratizing lower and that much term overused, that think such in going that eventually much it just you launching syndromic also affordable gets series we're a be some reimbursement further me U.S. makes been let by on we're later make into but it's especially more of previously use and markets, affordable people's building year just So panels European other anyway. addressed that's And syndromic and in But but it to hadn't – it be then areas such next, a it new more we'll China, also I the have that and as panels.

Jack Meehan

Thank Awesome. Frank. you,

Frank Laukien

questions. Good Jack. welcome, You're

Operator

question Vatnsdal comes ahead from JPMorgan. from Please next question. go Rachel your our And with

Rachel Vatnsdal

Thanks guys. Hey. questions for the you taking

chip spatial. that is The during quarter. the next-gen on Canopy first launched question

So about R&D your how talk Really also give that that received? you you've progress for update can feedback on acuity? early can so you is far? an progressing then us any And launch

Frank Laukien

Bruker (BRKR) 4 May 222022 Q1 Earnings call transcript