Bruker Corporation (BRKR) has reported 8.47 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $21.60 million, or $0.13 a share in the quarter, compared with $23.60 million, or $0.14 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $29.90 million, or $0.19 a share compared with $34.30 million or $0.21 a share, a year ago.
Revenue during the quarter went up marginally by 2.53 percent to $384.90 million from $375.40 million in the previous year period. Gross margin for the quarter expanded 140 basis points over the previous year period to 45.83 percent. Total expenses were 90.23 percent of quarterly revenues, down from 90.94 percent for the same period last year. This has led to an improvement of 71 basis points in operating margin to 9.77 percent.
Operating income for the quarter was $37.60 million, compared with $34 million in the previous year period.
However, the adjusted operating income for the quarter stood at $49.20 million compared to $47.30 million in the prior year period. At the same time, adjusted operating margin improved 18 basis points in the quarter to 12.78 percent from 12.60 percent in the last year period.
Frank Laukien, president and chief executive officer of Bruker, commented: "Despite the comparison with a good first quarter of 2016, we were pleased with our first quarter of 2017, as revenue and non-GAAP operating income exceeded our expectations. While academic market conditions remain a concern, we are encouraged by another quarter of positive year-over-year order growth in Europe, continued strength in China, further stabilization in our microbiology orders, and encouraging demand trends in certain areas of our industrial, applied and semiconductor metrology markets. We expect to return to organic revenue growth in 2017, and are on track to achieve our financial objectives."
For financial year 2017, Bruker Corp expects revenue to grow in the range of 2 percent to 3.50 percent. The company projects diluted earnings per share to be in the range of $1.05 to $1.09 on adjusted basis.
Operating cash flow turns positive
Bruker Corporation has generated cash of $32.60 million from operating activities during the quarter as against cash outgo of $14 million in the last year period. The company has spent $71.30 million cash to meet investing activities during the quarter as against cash outgo of $7.40 million in the last year period. It has incurred net capital expenditure of $4.90 million on net basis during the quarter, down 33.78 percent or $2.50 million from year ago period.
The company has spent $32.30 million cash to carry out financing activities during the quarter as against cash outgo of $41.50 million in the last year period.
Working capital increases
Bruker Corporation has recorded an increase in the working capital over the last year. It stood at $749.20 million as at Mar. 31, 2017, up 9.58 percent or $65.50 million from $683.70 million on Mar. 31, 2016. Current ratio was at 2.46 as on Mar. 31, 2017, up from 2.26 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 121 days for the quarter from 213 days for the last year period. Days sales outstanding went down to 54 days for the quarter compared with 57 days for the same period last year.
Days inventory outstanding has decreased to 103 days for the quarter compared with 192 days for the previous year period. At the same time, days payable outstanding was almost stable at 36 days for the quarter, when compared with the previous year period.
Debt increases substantially
Bruker Corporation has witnessed an increase in total debt over the last one year. It stood at $384.80 million as on Mar. 31, 2017, up 27.33 percent or $82.60 million from $302.20 million on Mar. 31, 2016. Total debt was 20.91 percent of total assets as on Mar. 31, 2017, compared with 17.37 percent on Mar. 31, 2016. Debt to equity ratio was at 0.53 as on Mar. 31, 2017, up from 0.43 as on Mar. 31, 2016.
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