BRKR - Earnings call transcript Q1 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Bruker Corporation First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please also note today's event is being recorded.

I'd now like to turn the floor over to Justin Ward, Senior Director of Investor Relations and Corporate Development. Please go ahead.

Justin Ward

Thank you, and good morning, everybody. welcome Call. Bruker to XXXX First like Conference Earnings would everyone Corporation's to Quarter I is Ward, name Investor My Justin Relations Director Bruker's and of Senior Corporate Development. and I am

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

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

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

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

call, to forward-looking events making pending conference recent this and that statements operational of inflation. be related will the acquisitions, and risks as risks wars the we those our logistics future involve including performance as chain, company and well financial and supply and geopolitical uncertainties, regarding and During

company's in the XX, the materially as in statements. website. our earnings cause updated and other SEC on that might which those XX-K Form but from differences December limited today's differ actual include, results Factors such discussed are and filings, SEC are release such period not The ending for website our may to, on by XXXX, available

and business XXXX. please our information Also, current based as conditions to following of note that May the outlook on today, X, is

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

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

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

Frank Laukien

carve-out acquisition and just quarter to ELITech on April today's Thank XX, ELITech not I also all for chemistry the we closed of good business announce the required ahead after that to wish have us the earnings thank that you XXXX did completion clearances and excited we received regulatory morning, clinical first joining of our Justin, everyone, call. schedule and pre-closing you, on acquire. am after of we

earnings in second issued have that press releases X:XX addition to release morning, note simultaneously of acquisition. encourage to information on a.m. the our read please We press release, you this we perspective. and Accordingly, both a our ELITech for complementary do closing Eastern

to explained XX% for call. XXXX raise a growth As in exchange as guidance year our rate pleased later to fiscal XX%, during detail result, to bps XXX are revenue this we constant by

first Turning which a to a growth year our or earnings release Bruker of strong and into revenue comparison the and about constant a primarily quarter rate X.X% $XX rather tough revenue XXXX if finished because the X.X% second organic of to despite million we exchange of Slide ago. slippage recall, XX.X% of posted X. very quarter with XXXX, you in and quarter, organic growth CER

forward So well. very QX shipments forward expected of about -- the fourth and revenue just about 'XX, of mind quarter because we keep customer low pull organic that million some site readiness pull into single-digit in similar growth in worked revenues of when of $XX had of anyway

first quarter underlying X.X. solid below Bruker's BSI solutions for remained for So and demand has our just products with book-to-bill segment 'XX

expect our of quarter exchange second organic we growth, the constant growth year-over-year. in rate or expect of XXXX, double-digit we CER also So and a revenue revenue reacceleration

expected recent such as favorable tough an quarter from primarily margin of in expected comparison in transitory this less well as our quarter. initial of of acquisitions, As first a result dilution but first the strong the because of 'XX, 'XX, our unusually compressed to mix also margins factors, quarter the year-over-year as as

of remainder the in improvement margin sequential significant year. expect We the

growth our with maintaining solid guidance As achieve we XXXX fiscal growth. organic our look we organic acquisition pipeline, for EPS in now included acquisition Both first X% and ELITech year and backlog prior the remainder our of to we in the non-GAAP Accordingly, X%. Chemspeed XX. closed we expect above-market revenue are guidance the Since on April organic quarter mid-February, to and guidance to today. 'XX are revenue the our in of now updated have

year-over-year. by May $X.XX guidance to we EPS reported close a second which As today we expected non-GAAP growth increasing be acquisition, reported our are that XX% year-over-year, EPS and to the increasing we to revenue quarter. by dilutive does growth NanoString for to are our and result, XX% yet to guidance Please which the EPS X updated revenue is X% pending hope $XX XX% note of not non-GAAP our million include guidance in

on acquisition, tailwind to pending an of information X. On you increased 'XX was press included flat M&A X.X%. issued revenues year-over-year included our CER segment our on on net and NanoString reported X.X% at release organic or April further I This organic For Monday, Bruker's while headwind quarter which revenues to XXX.X which eliminations, X.X%, increased organic X.X%. at the refer million, the revenue growth of implies revenues an all Slide first XX. Continuing basis, rate in minor exchange intercompany FX XX.X% BEST growth BSI year-over-year. of constant X.X%

GAAP 'XX first down factors In basis, of Bruker the was non-GAAP non-GAAP bps Our quarter that XX.X%, due first in On $X.XX 'XX, quarter of to from EPS operating $X.XX XXX the margin EPS $X.XX, of was I 'XX. in quarter XXXX reported $X.XX first compared quarter diluted described first 'XX. the diluted of a first down earlier. to quarter the

X the saw first Scientific quarter any NMRs, revenue. By industrial with from and X and performance quarter. first in without class of gigahertz-class revenue XXXX, Slides low single-digit one markets segment CER in we now, expect by the growth the in X across the to system academic 'XX, turn QX BioSpin biopharma, of BEST Instruments growth. revenue $XXX research Please percentage X all gigahertz year-over-year. quarter our including government In Group our 'XX way, CER second groups million, 'XX where and we BioSpin highlight Right. was

update further talking the future We in acquisition, when and the our closed that will also targets. Lab we you Chemspeed medium-term we on Automation about be

Moving shipments and the on revenue million its CALID our single-digit first the due comps in year slipping to of to low to in timing 'XX, in from QX primarily CER declined well Group had QX QX the top of CALID quarter. prior percentage as $XXX into as

in a to Nano for tailwind [ artificial strong mega AI metrology On $XXX intelligence advanced QX metrology academic and percentage Slide achieved EcoGas the Bruker and and million, with was semiconductor X. 'XX tools growth revenue business. mid-teens semiconductor revenue growth CER or our government, We in industrial Nano ], the packaging be trend continues revenue

superconductor grew of demand EUV QX the AI growth percentage Finally, well 'XX semiconductor intercompany by for UV demand. net a Science in teens key OEM BEST strong lithography in customers, Big CER Extreme very in and driven by emerging research or as tools large eliminations, as high by projects technologies FUSION our revenues of support and solid also

a XD continued and quick immuno-oncology financials X and product from of excursion highlight and important we me which in do workflows and the on versions proteomics we very [indiscernible] to immunopeptidomes, U.S. course, that And first year, XX almost further couple a both in X. separately, we our quarter, in platform. tools software. introductions the glycoproteomics, of this are HUPO, with Let take At on Slide

them excellent templated know. a not of our are that into both in going without lot at of details the here, are examples in things way of genes not in we DNA. And any not They're least that

same to immunopeptidomics absolutely additional excellent So its The information of examples are the needed are install [ in we and applications. biology, is in on platform that post-genomic glycoproteomics. for they that XD-Proteomics understand X leader that important and examples ] quite and disease are biology both and a

in examples both of product many proteins our at enabling capabilities and California, the biology, membrane was NMR of introductions had actually new the particularly aggregates membrane structural which capabilities other or important in signaling from The are proteins. and year, introduced we proteins scientific our are scientific in most ESC, of recent targets new conference for we of important that April

an not resolution dynamic XXX. nuclear scientific for never ultrafast that a be or well. and give one could introduction probes by scientists also before role. which something some that sensitivity order And can DMP, handled of or crystallography having they're of crucial things where separate again, higher way, by increase AlphaFold stands spending the Marlay's seen a the of by areas us [ cryo-EM for polarization without there, for factors They're for important details, very of assets much And the very ] a impact these technology of

and So it's enabling. really game-changing

a with before. other Assend is helium introduction hand, it much really wonderful broaden more the Evo make NMR adoption to and magnet doubled the make want from are accessible. this time. is whole They NMR than more XXX of magnet new also On This we X-year

time it's accessible all existing want you think a but makes benchtop clinical XX, biopharma like by least, not it world, again, to and available is but noncryogenic broader much analytical available on it NMR very, where this more be to been FT-NMR, process QC in our all in integration if technological NMR, welcomed to research, recall, use and or time. previously, last new good. integration with PAT very labs, broadly metabolism, we quite you they research markets. And also now labs So biotech has marvel clinical handled hadn't but the we'd I warmly will for Developments for which Fourier it more which for update from and biopharma biopharma

weaker as quarter in constant first exchange with albeit remarks, in summary, I margins rate XXXX. delivered solid and growth, and EPS my Now the Bruker of wrap up

some very have our from We to been and businesses reasonable strategically at important expect in acquire margin because able XXXX valuations. EPS dilution we acquisitions several

these Bruker strong to creation. acquired We time also performance profitable or long-term on applied and Bruker's will management We enable something important long-term will shareholder for future, business disciplined strategic ROICs and improve process in that acquisitions financial anticipate drive expect that capital over their value also their that to of the these is growth. significantly invested culture entrepreneurialism our returns businesses

turn call who will in Chief 'XX fiscal financial review Gerald comments, year quarter performance and So assumptions. Bruker's me with those Officer, our let detail to updated our the and more over Herman, first Gerald? provide Financial guidance

Gerald Herman

the us revenue provide some more XX, quarter which detail Thank everyone, you, bridge pleased first for Slide joining to quarter I'm on shows starting Bruker's for on of you, performance financial the XXXX XXXX. Frank, today. and first thank

revenue growth grew in revenue for drivers the grew of quarter basis X.X%, and already was a Acquisitions while organic headwind, X.X% was Revenue or million revenue foreign growth rate Frank exchange constant growth in our in X.X% top first Americas an our single-digit to year-over-year. percentage, the quarter. Geographically, up high XXXX, resulting the added European the revenue covered line, X.X%. organic has of reflecting in exchange $XX mid-single-digit of X.X% on of the percentage.

revenue Pacific in year-over-year. Japan, Asia range, all softness in due percentage single-digit to declined the primarily

For basis. by region, on headwinds year quarter and impacted gross our P&L points up Slide XX.X% XXXX was mix, decreased QX a XX comp. from of a primarily quarter FX basis XX.X% EMEA first first Non-GAAP year-over-year. margin in non-GAAP XXX of performance challenging shows revenue our acquisition and the XXXX 'XX, percentage prior mid-teens

XXXX year the non-GAAP headwinds XX.X% prior XX.X% foreign quarter quarter decline product basis posted margin challenging we exchange to was of attributable than of margin and lower margin, operating of a acquisition First factors impacting is first and points the XXX same gross 'XX. the most comp. This mix, in

non-GAAP and significantly to second the improve sequentially in the second We of quarter operating half in expect margins XXXX. Bruker's

reduction was resulting XXXX, of million of XXXX the average XX.X%, of shares XX.X% jurisdictional the first rate quarter our of first the from in from tax outstanding our For a were first 'XX, favorable quarter resulting modest of quarter the repurchases. $XXX.X in diluted improvement non-GAAP Weighted mix. share shares the first X.X 'XX, a from X.X% or million, from effective quarter

the Finally, PhenomeX quarter $X.XX non-GAAP $X.XX first XXXX. primarily the Cellular dilution first acquisition previously XX.X% compression EPS of margin of the analysis factors down of XXXX, QX detailed. was We due from formerly in to EPS to XXXX compared about non-GAAP experienced of Bruker quarter the

by million breakeven we've We of we XXXX. quarter the expect actions operating our to the XXXX. cash in With first rightsizing generated business already flow DCA reach $XX.X taken,

a Our of levels, million, mostly 'XX million $X.X our by recent million in reflects capital flow by $XX.X capital of in working expenditure This net and over cash lower investments income resulting in cash the driven acquisitions. of impacted were higher first approximately free QX quarter flow XXXX. decrease of $XX.X

investments short-term with the finished equivalents $XXX quarter We million. first cash, and cash of approximately

private the to to acquisitions, larger credit acquisitions, quarter, ELITech select of the fund X.X%. of During closed maturities expenditures and and initiatives. In XXX X XX-, rates capital with senior notes we structure our recent including maturities our the Accelerate $XXX to term with on about financing and million million about average completed XX- placement upsized X%. first actions we interest Project used fund debt X, revolving of first of X.X transaction. carrying a million interest cash CHF at XX-year issued loan ] series XXX CHF rates XXXX, a facility quarter XX-year [ We And

These financings time. our us NanoString with acquisitions over flexibility strategic pending provide like support delever and and ELITech to acquisition

Slide now XX. Turning to

which maintaining organic are our growth from as ELITech currency. changes 'XX. acquisition, not It include was covered organic as Chemspeed of release. in prior We April non-GAAP include and well revenue the We're acquisitions XX foreign does outlook our the updating XX, and guidance guidance XXXX February recently press our NanoString EPS closed to pending in

prior to to from guidance, to XXXX. billion, $X.XX is revenue reported million compared $XX XX% growth up for guidance updated XX% representing billion of Our $X.XX

this organic of also year-over-year. This currency growth revenue year of in to our earlier acquisitions It XXXX noted to reflects year-over-year. foreign and rate, to by As XX% constant implies X% CER 'XX X% revenue full about Frank, year X% now year-over-year. an contributing headwind full estimated of guidance exchange revenue guidance growth now growth about X% XX% maintains

improvement non-GAAP of organic XX XXXX points. of XXXX, operating margins margin operating expect following operating For in improvement XXXX, in XXX points about organic basis strong we about basis

XXX in, For acquisition point points. the non-GAAP of all year combined expect decline operating a a margins, foreign to XX due exchange basis headwind prior about and from we about basis

this the closing simultaneous margins. to morning, press be Bruker As expect we to ELITech release ELITech accretive in immediately explained we

the to non-GAAP On the are to to guiding EPS growth guidance $X.XX XXXX XXXX. translates bottom we're assumptions non-GAAP from range of up $X.XX X% line, for in accretive the on EPS now acquisition. Other XX% guidance a of compared $X.XX, listed ELITech to to slide. This

of rates year. additional fiscal been as currency updated ranges quarterly year XX, have March XXXX on Our for XXXX. One note foreign the for phasing

up quarter year-over-year. mid-single second revenue be to expect organic We digits organically

improvement expect We of margin non-GAAP sequential quarter in second see the half operating second in also significant in and improvement to the XXXX. performance of XXXX

to analysts host NanoString of sell-side closing after with call follow-up within few expect We weeks our and the a acquisition. a investors

including additional to Chemspeed, NanoString we call, fiscal and this recent medium-term information XXXX provide During our ELITech plan targets. and on outlook our for acquisitions, update year significant financial

acquisitions. comments earlier on of I the recent Finally, importance echo Frank's these

to additions portfolio While the performance excellent at dilution acquisitions, initially Bruker from next few strong underway growth we profitable certain expect contribute some are margin the these to to expected solid and transformation and complement over ROIC our years. shareholders

solid Thank in the that, XXXX, the constant revenue section. To call much. to positioned above-market deliver Justin turn delivered up, first non-GAAP and of to like EPS growth in wrap exchange organic start I'd rate quarter to Q&A well the growth XXXX. With growth you to we're very Bruker over revenue and

Justin Ward

portion. the we're the turn Q&A to Thank Instructions] you, for the begin to the operator portion to I'd Gerald. Operator, now of [Operator call. the like ready over Q&A call

Operator

Our from Partners. question Souda today Instructions] first Leerink Puneet [Operator comes from

Puneet Souda

what about. Frank, not 'XX slippage one expectations And with into forward? that the talked the first is expected and pull just the you second I you follow-up. quarter, in demand, the that any your then just and have can about? the ability talk of backlog can from seeing bookings And you you're terms a to growth overall deliver Is overall, the XQ thus for Gerald. going forward a My mid-single-digit revenue on elaborate just

Frank Laukien

you, Frank. Puneet, Thank it's Yes.

it flawlessly. last than I So we expected. yes, year and permits. site our nearly something QX slipped into and stronger export -- was recall, everything Usually had readiness the as all of was you strong, near went QX mean, even

is already that [ And low previously. than acknowledged was lower million single-digit it and QX, little And and that, we into growth had we about have a with signaled slipping with revenue a organic which we that's here. then had liked for so expected would yes, we ] $XX what QX,

readiness demand. export There's risk and but in that or go essentially system permits, of not the not canceled any in, Those reflection getting issue, logistical will in, a does no of there's usual any no that issues of that were some sometimes come site the risk it's QX.

growth, Bruker up revenue average to growth QX or we as liked. and have mid-single-digit quarters. several over think organic at second With than X.X% as we the have is it's a ended we'll perhaps I an always, And the bit a that, But best would organic CER at which weaker quarter. expect double-digit decent in better look growth

So that's cadence. the

Puneet Souda

excellent when in number Got a Bruker I had of to of post-genomics number recall it. Frank, these I of can't Look, Super up many it's see a the helpful. you've talked time acquisitions a And such about. era that you period short first all, of technologies great time. picking then, these for mean,

X investors us with. talk mean read know sort potential are going what we in acquisitions I But that on how struggling these XXXX? do into call, provide to that about When the on any questions think at to you're And follow-up these about directional that can you dilution. look for but of

versus could importantly, if priorities? does what and near the is plants term done Bruker past, and in in that how have elaborate it there's impact have might on undertaking And to medium I then are you growth bit and looking some the on well. a like inorganic more as significant seem mean, term of And because likely EPS integration the terms your in

the about how us integration thinking about that? to talk just maybe So and you're

Frank Laukien

Yes.

ELITech very reverse very company, we one this. acquisitions sort but that of by the to we division I because capacity and we in it obviously, I'll We almost done Puneet. turns if turns BEST. and were capacity Optics confident I'm Bruker management were the have So the as previously. number really smaller integration on out the bandwidth our out we the plus it a that X do actually we're -- strong groups integration mean, business are order, of do and these have companies. It have X

and high-level that and within that they've very, convinced well, they're the is they're all done matter very ones That's well, handling they're conference really handling very CALID, except going financing focused, very smaller handle for they're that and [indiscernible] to really, some and already.

and some of Chemspeed part software the these seen of BioSpin very are you've recently Group. acquisitions that much

a So setup, of job group. where are really really a doing great a and kind they're with that. that separate modular It's we pursuing have a

at direction [ it ultimately more again, to the that where are did all there I So we we on and former their course. and -- into reorganization. the support analysis QX work and provide our would up PhenomeX, is and strategic able in where financing, set expect that doesn't of we the not XX things it's highest these ] level be would fix to piling that's -- the cellular now acquire not done. mean NanoString either Chapter the that then broker run already be And

around so their an next wait to quite until admit But QX to this opportunity, gene going what hand, expression complicated until This And wasn't not opportunity expression other opportunity buy a a get that's with an incredible. gene to is In that. nice. the year. business, we strategic only nCounter until a we'll build, was on situation, business

soon of biology this the to the transcriptomics hopefully spatial asset mean, I acquire as But businesses, one hopefully but under hasn't in agreement spatial to. is an really, is which know. you close leading business, yet, closed deal,

at and ROICs. lead that to opportunities will valuation compelling again, were those incredible great So absolutely are strategic and

unusual very is that acquisitions. many Bruker to done for So have

to we the opportunities a within mini 'XX little call weeks 'XX, we you this and hand, the to close NanoString that I and the had Investor in On may closed we only after and quarter. that the that defer us Hopefully, NanoString, second flexibility other if But hope we allow do within we that. to get Day have organizational do as on virtual bandwidth to the

outlook hopefully, within we And and present up be businesses, our NanoString. then those affects all weeks, call how and And division our hopefully Chemspeed, and of present ELITech, Gerald of plan. it to that will course, leaders you then, XXXX. will medium-term I tell our present and for wrap accelerates present That's present have Justin, setting up where and the new

we that, be you not very we comment on NanoString today it's because to as than Other pending. And prefer tend to know, disciplined. still

about Now we how it's in that more closes, closed, when we'll second and talk that about the talk ELITech quarter. NanoString now hopefully

Operator

Citi. Our next comes from from question Donnelly Patrick

Patrick Donnelly

sounds Frank, kind and Can the one time. like forward DSI. expectations just go more below book-to-bill you seeing little side, here? bit maybe conversations the are what X front, talk just a customers what in backdrop with a in there as the about order was on of on order particular, just we the on the little real It academic maybe you're

Frank Laukien

Yes.

up revenue Our of -- backlog the quarter slippage. in we of much did sort because use first some

still So about our backlog is X.X coverage months.

in biopharma, in except decent. reasonable that's We've consumables for the strong. well, doing academic has China, also Biotyper government And remained Europe on diagnostics, So certainly reasonable, U.S. bookings MALDI the and side. had been is in

which environment or out it's growth But it's us. Yes. about growth, end So geography, the organic market expected, macro there, but decent, not all a the bookings various as right? markets, fantastic for still of sort slower in by and market and it's is are by

environment So us it does that. organic and also portfolio X% We're our this deteriorating. about with exciting, And it which, the growth isn't really macro above X% we year. expected, to is with is seen, transformation as set market allow confident as revenue you've tool quite not given but

Patrick Donnelly

stimulus expectations briefly been maybe whatever year on loan call the about the Okay. the helpful. just look in and trends would helpful. for what mean Can That's conversations to there? touched there. in program, some over what the then seeing debate you answer be like you you about And want there's you're talk China China it, I there,

Gerald Herman

this Gerald. it's Patrick, take I'll one.

We certainly conversation itself still going about -- We've heard to being play I'd with transfer orders some half. that's stimulus that's program how are probably the So it's early loan real guess I in out. that I our on this street see until the into -- second respect say mean from perspective days. a to we expect China, don't considered. to

products upgrade. relatively the broad details equipment a ultimately over we any certainly is our have really exactly that years, a don't But be which in some strong performance stimulus we'll result continue program exactly macro I area about on it's there about We multiple challenges that a technology that. feel impacted. That's perspective. time. But I is China for would can to expectation targeting been over or timing what tailwind obviously, in the from guess say overall And the Bruker. still there's understanding pretty in Our further

Frank Laukien

got Very has And very made their science commitment well mean, academic exposure bypassing we they government and struggle that's their and I that, for also probably exceptionally priority that and us biopharma that's fundamentally, -- and the geopolitical [indiscernible]. a have lucky whereas in a been China we're again which are also markets, not to clarified very quite strong exposed so risks high to of bodes a technology. to investments which obviously of more to for participation strong continue CRO to little so well entire some anyway, as for that does or of or industry. It country, with them an China, bode and more extent, some for because

Operator

JPMorgan. next comes Our from Vatnsdal Rachel from question

Rachel Vatnsdal Olson

on So to first, push a little bit XQ I wanted the guide.

expecting you're organic quarter. that growth mentioned You mid-single-digit next

that than expectations. a in lighter bit So little came

from to XQ. that XQ mentioned also $XX You million flipping

the of can takes this there puts more seeing now? guide what on XQ? What right realistic a So in help understand or in market there? underlying level any us are you're assumptions you is Is the embedded and of conservatism the based

Frank Laukien

this That's missed to somewhat digit some QX, -- I to so have that. we we mid-single conservative hopefully, is sorry, right? there's in upside bit the [ -- mid-single-digit -- it's No. we that mean, just repeat. Yes. guide little in -- a But not like So handoff]. because

the potential hand, where it's an second upside that color downside we'd But QX. in be on also for that a like no in with the for area other quarter holistic to there's to

Rachel Vatnsdal Olson

of here. Okay. just just the coming going the in forward host quarter. last Day changed? last closing of I guess, within XXXX touched helpful. assuming XXXX ]? on ELITech the the this towards Analyst XXXX underlying I [ appreciate months you're that given deals quarter framework to that Or the you pointing estimate some And any on M&A pulled on some clarify, you XXXX, recent to just assumptions are or to update and have you XXXX NanoString Great. mini then But between and That's horizon really are you an of that the

Frank Laukien

M&A, Yes, Rachel. about it's all

give million and is Chemspeed by will in that be year more switching have So accounting into that -- a accretive get detail, much U.S. had adds revenue next They about of We and dilutive neither Calls. percentage accretive. GAAP change mini somewhat growth product or of think revenue, year, this all than our and rather going $XX EPS quarter mode. or too per lot Investor from there Investor to we'll there you EPS and at back mini Day

digits -- And revenue very [indiscernible]. digits, sometimes single double clearly, accretive. So they'll organic be looks nice, ELITech it business. margin growth will be to a be clearly, accretive, low -- EPS like somewhat it high continues

in. out the asset but we XX of our NanoString. then we up in for without all announcement heads a have purchase -- So when as detail, a that up comes agreement And spelled April NanoStrings close we as of close as lot just

'XX from explained disruption Chapter for on obviously and give won't XX that materials. reasons in We guidance had NanoString press considerable other release, litigation-related

We into will get today. that

year, So give go to next to able there take 'XX. to that is in we'll that up not right, see we're going closed. We how $X.XX, because happy be that lower but that be to sells. We heads today, year, that a expect the business into from we street $X.XX estimated meaningful dilution to want next a to just that it hasn't

all structure has capital that supporting rate I in done very done with of and guess as incremental the all how about -- General fundamentally extractive and very the supporting -- is these an changes a it all incredibly attractive our with way. So banking our that is partners, very, are acquisitions the we've all how financing pleased the

we'll together to try things honestly, all able you pull moving figure for to So to all of these it but are many out. all, too be because there pieces

and give guidance, understand that better you'll come you we'll to all keep these I to So think and not in then hope 'XX together. to 'XX assist with model to position we're although how between, but pieces going you ability a much 'XX be really in the be

Operator

Our from next question comes from Doug Wolfe Schenkel Research.

Unknown Analyst

delay book-to-bill stimulus This you're in bookings for for bookings year on bullish timing the is just want know I and how last Doug. China in the in QX Colleen QX? of of normalizing framing to of

Justin Ward

this first Frank well. quoted year, So book-to-bill book-to-bill the -- roughly quarter So bodes for the for is the first is the of of that X right? that

in quarter. bolus year of last a But third orders in in the then air China. we quarter of we of orders year from China, an pocket had had the last basically Now first

So there bookings in lot year. last of distortion was a China in

in in the full along revenues. year the had year China, up bookings double For with digits in last we nicely

you of XXXX, we think of look bookings. really bookings. at it the reason, year sense distortion on at that's quite China year-over-year full as comp a in makes bit there's for And So from helpful. kind that look to for Hopefully, picture

Unknown Analyst

follow-up And just on one leverage.

balance assume right? willing sheet? approximate X.Xx. Is estimate the NanoString you'd the if is that your to take limit will what so, is the with it deal, this And to about be So debt-to-EBITDA we fair of

Gerald Herman

talking Day. actions actually we'll the we're again, need analyst the all, forward options pleased -- the we'll talk into as versus on first think to in up. Investor course, calculation. the of we've investors our we to I'd is, talk, say Let's about taken, gross coming with just I'll I defer call And march sure of already discussion. more we mini make we'll But overall, I about that talk what financing mean, about that net more sell-side we're and and

Frank Laukien

And in time the X net will of your leverage to be be not We generally, about to our again. that's X.X, question, be normally delever. X.X will wide. range. Very where operate -- delever there will more from we obviously, there Leverage approximately, to will operate. leverage lower. prefer gross be clearly, level And to goal But -- approximately that . opportunities with you're

Operator

Nephron . Our comes next question from from Meehan Jack Research.

Jack Meehan

a questions you I guys. just for had couple financial of

the it but like opposite. factors just was there I below that the line, $X like that kind How On was you the other million of other explain, statement, drove in income expense, I of guess, any could quarter? income. modeling -- were the

Gerald Herman

items coming able know, foreign exchange the we -- EUR of of on moved to of of series the is, transaction. ELITech to One a course, quarter that million secure other likely side XXX actions a out of took you be the the significant as series

part of and the So euro a that's substantial exchange there. franc. what There's Swiss came gain you the see that between foreign

So that's see. you what

a jurisdictional in that favorable perspective. We tax as We're more also I had a prepared with in year. think that rate mentioned prior mix remarks, the pleased fundamentally I from we my had,

those X the So are pieces.

Jack Meehan

Great.

I PhenomeX of That And think the you question going, solution. I sense. $X.XX is how Number one? on number integration just Okay. second makes heard Could just was two, about the then talk the dilution.

what there? previously, a $X.XX $X.XX think to quarter? talking I you Just was about the were delta

Frank Laukien

PhenomeX Yes, it Bruker Cellular now, as analysis. we call

$X.XX We are estimating 'XX. to dilution year $X.XX the for

we recall, you in $X.XX could before ] If QX Warren dilution the act. [ of had we trigger

it reduce away, right head made while and -- we decisions count cost. So it the some to took time took us us

And a also you outside that to little United of still some effect. some have reduction cost still takes -- of of an that longer States, the

on So PhenomeX. you number have correct year the $X.XX $X.XX, for -- maybe this front to the was will be it loaded. more maybe $X.XX average average, $X.XX but And

was So the catch again, good QX. than in Jack. It average higher

Justin Ward

going is half in off but time. of taper basically What over the that Yes, to of Jack, expect PhenomeX really we said as taper dilution is gradually we've by year. breakeven lot from the dilution be first to you'd XXXX, a it this imagine, will

we're it. about So that's how thinking

Operator

Dan Cowen. Our next question from TD comes . Brennan from

Daniel Brennan

and you've patent on Frank once the work speak NanoString color situation done more just but it to it possible all that at get on know to is we're because many think that closes, the going case I I ongoing, to people have surprise, likely cases appealing they're [indiscernible] by the earlier they've caught that obviously and lost the Cosmex they and case. they year, the fact which this these got Gerald,

and/or got I'm these just on work comfort have the might you wondering, remedies any in cases did, any NanoString? you color you against provide go you if can place the

Frank Laukien

of strategies. we're litigation, after all, outcomes or the of litigation Yes, something we're our going talk really not potential first that's to closing -- talking, even litigation about

that's they I'm Patent ruling right. reorganization, facts reorganization a obviously my XX ] European know. NanoString, to were lifted Chapter closed. favorable at rose once Chapter them about issue mean Today, have that because anything certainly the then the been the it I company, you There for significant a a interim hasn't [ Court we right? XX NanoString telling least It's key talk that extent it not cannot if I into the don't you in was junction, at preliminary Cosmex of all outside Germany,

to So positive all PL, subject a to but that's there's some been intermediate final ruling. subject news

a there bit is discuss out, and separate media]. we can [ of and and we pieces lot hopefully, a spend our and and of counterclaims that challenges moving So dirty plays and little how more entire a hands litigations don't itself that all antitrust and lot of

bit very which not to as ongoing -- we give can but We're our you is will a you items, spend mini comment IP more We promise on might Day extent aware, very I on aware. you color the Investor little limited, litigation, we can guess. very

Daniel Brennan

maybe on Okay. And just semi business. one the

the called positioning. out AI-related You

Just kind and the you how AI your how and us what the packaging that do the can do it did Any Like kind guide of on year? of kind wondering much size business that? color help assume of for in driving plus you're quarter? in you semi and if specific semis

Frank Laukien

be is, business marching high I probably a basis revenues at now instrument We below ] metrology course, did tend revenue our to that's towards or is And and high-performance do in for an modest our quarterly particularly potentially and UV computing can now don't that be. sizes, percentage well that best providing [ semiconductor deliver and research going some now participate their still more but of as fees, technologies But very digits. might of is they're supply single in to technologies revenue research smaller in QX. The in chain, needed, guess we're because, technologies instruments the AI, the X% sitting semiconductor -- terms also from on data. higher. additional lithography, who semiconductor and we're is feature where maybe that which late there, chain and of company are the subsidiary of of business. our think smaller unique annual total And that pleased unique systems are anybody that fluctuations. we extreme complete which largest And into course, of for The other applications. And manufacturing EUV perhaps out for is supply we're [indiscernible] the XX% we our so

Maybe advanced just on it's you've unique not $XX metrology you're sure aren't a These technology our anymore. something or little top a very, and position semiconductor more bit familiar that it's adds I'm of, heard the and like but that it's cherry But never with. very insignificant in million And of business supply chain. that of systems. very packaging key

-- science in and Yes, this we It's are is a indeed, tools good very company. have it just life wonderful. trend, that's very to a it's our unique [indiscernible]. and unusual applicable just very or Nano post-genomic extent, for But some

Operator

from Our Stifel. next from Dan Arias question comes

Daniel Arias

you'll asking this do apologize later. because addressing you said for be Frank, really I NanoString

just an the details question. in about more -- be the financials so about if And less rationale. this unfair may it's But the and

of just side? equation how a and are got technical deal this side of to the where point to work speak side to or the comfortable legal price one a obviously, the you a around where you like right Can deal problems the you because comfortable about the actually were leading little where or whether felt bit earlier with one. the you talk you just point is to like equation it's the you felt controversial you a legal for the that your diligence of some the with Can led is either

Frank Laukien

Yes.

talk strategically, much these of don't able being any valuation. So litigation bigger want having of to in the probably answer and other But spatial things. the reasonable I biology a a is about acquire at with all play to no very because

transcriptomics wonderful. an counter very strategic opportunity. X has with profiling growth the of this deal. pleased and some expression margins, unbelievable gene think One leaders drives what opportunities That's that is We in has their We're business. good spatial and completely

was But transcriptomix. spatial driver the

you software deal really big So be if and a product lines. our GMX in that and the biology. a product Cosmex to is and-related want other leader And spatial

much but They they proteomics Canopy larger. also much, have -- doing They're is NanoString really with is We smaller in spatial it's are a don't what overlap. XXXx adjacent complementary markets. business really

They're think flexing transcriptomics. in spatial really capability, And puts ahead. I on map their us of like far pretty the So this customers. a in ahead fundamentally lot really We spatial want. research they they're transcriptomics. That's what

doing the where of transcriptomics spatial their that. also and translational biomedical biology biology needed one research their to tools so in the for had they're we very and So and cell these structural research to to addition continue transcriptomics presence no single and much customers then pioneers, Proteomics and clinical fundamental want are support we field there, makes that's glycoproteomics, of the spatial spatial and bigger is

huge for we us, this a and seized is it. opportunity, So

Daniel Arias

is likely do are -- on you me we deals? question you I you the here? to many just then of are the M&A appreciate indulging Is this I -- from that. additional hunt And one ways natural Okay. still are guess and for next on the

Frank Laukien

while. that going deal we're there's [indiscernible] the be always think come through. small I mean little to in I deals for a

deals, we gaps process $XX the as you some preclinical or in or smaller some them million and had in our Sometimes, at or revenue million high sometimes that in [indiscernible] lot technology line them drop a know, of product were imaging addressing $X of of microscopy. on literally analytical in

it our imaging. that operoptics are same conscious. years we that value ] With this is it great." difficult was became all BioSpin decade. valuations eyeing ago, We so that yes, some things Those to a than on our the comes been with And perfectly into companies available are preclinical many and [ or we've the time, and when -- fit "Wow, than anything. more whereas years for X at said, agree very sometimes of

ROIC conscious. are We

need in some. delever expect while, is we of delever -- terms deals we -- additional that's answer deals, I but for and until larger any obviously a we this that's deals. do on to yes, larger to I larger think the -- would wish not So

Operator

Cleveland from comes Research. question from Josh next Waldman Our

Joshua Waldman

off. hop then and X ask I'll

just whether year guide XQ support comment the would assumes thinking context you the more here? I any DESY about helpful? on rates improvement can from be in year-over-year to you're orders Frank, guide First, the full organic cadence in in how and order order on guess sequential

pieces my And then Frank you maybe business? follow-up, provide more for more context mean revenue color the wondered on on comment moving or the I again. CALID slippage. if within I could the

You any just comps being the order more didn't can't mentioned help front. round. this notice guess context highlight but you tougher I here I timsTOF on

kind seen any and this the How one-off about timSTOF segment growth thinking quarter? other have of pressures you're may or onetime

Frank Laukien

Yes.

So take as many of to questions. trying the

bookings. So

be QX, weakness normal bookings. seasonality QX bookings with QX, I in in in tend of always have expect and strongest more between, there to the that terms QX we comparable in think we in

So that's we -- year that's what expect well. as this

meeting. all. of increases workflow at all showed U.S. I the -- question, to that's course, seasonality the mentioned, That's the There not platform, and imply capabilities up, we So a normal did which remainder picture margins, immunopeptidomic it timSTOF, XD that proteomics your of the on to of I mention, only [indiscernible]. a throughout software step first and the and glycoproteomics, we've booking year. significant in think and sequential was where very bookings revenues but HUPO would also timSTOF

March, we ASMS June have right coming in up that's an corner, the second in the around In of week Anaheim.

the there many just spec then mass single-cell beautiful doing only platforms in top proteomics well a capabilities. such you proteomics many and that's BD world. -- a maybe the new platform. there's and down, a as intact. peel It's the timSTOF So And the plasma now down, and onion, or not little obviously and is is It's there's proteomics

and some proteomics interactions. really look to at suitable a that immunopeptidomics now protein-protein is There fields rich fields. and PGMs very, that. there's and has instrument dozen and glycoproteomics, such constitute all that very like the these one unique related for are field a It's

software, new new with along consumables with workflows. whiteware And new with

there. on plenty going So

Joshua Waldman

or the guess CALID? on within slippage, Frank, revenue else was that just something it I timSTOF is

Frank Laukien

March, also was customers name, CALID, facilities, sometimes get those very in ship "no, quarter X large and only whatever that you semiconductor metrology It No. you metrology a in ship that one one large of by some that and slipped these tools, by by tell of QX" or in, with semiconductor and when our they'll not tools time. also know and all

of was of and So imaging, MRI that some NMR preclinical -- some that related.

but not comp CALID strong just CALID, this just So this very a year-over-year. had wasn't -- on was

I think strongest. one of the

Justin Ward

In within, QX, for into was within forward there quite pulled the including optics business, example, QX, bit is CALID. a which

with distortion questions. and think caused this -- quarter. All Operator, of the the quite we're all growth those driver set I right. and primary So lower first the organic in

you we to want the So to us everyone thank the call. team meeting looks an at second directly forward you for with during leadership event quarter. on joining today or Bruker's speaking with

to free feel follow-ups. Please arrange out great to any day. Have to reach me a

Operator

that, with gentlemen, conclude call and you Ladies we'll conference for today's presentation. and joining. We thank

disconnect your may lines. You now

Bruker (BRKR) 2 May 242024 Q1 Earnings call transcript