BILLERICA, Mass., Bruker Corporation today reported financial results for the fourth quarter and year ended December 31, 2011.

Fourth Quarter 2011 Financial Highlights:

• Revenue increased 14.2% year-over-year to $475.1 million (12.5% currency-adjusted growth, or 12.2% growth excluding acquisitions and currency effects)

• Bruker Scientific Instruments (BSI) segment GAAP EPS was $0.25, and BSI adjusted EPS was $0.33

• Operating cash flow was $92.1 million, and free cash flow was $76.1 million

Full Year 2011 Financial Highlights:

• Revenue increased 26.6% year-over-year to $1,651.7 million (20.5% currency-adjusted growth, or 9.2% excluding acquisitions and currency effects)

• BSI GAAP EPS was $0.62, and BSI adjusted EPS was $0.91 (excluding investments in new CAM division, BSI adjusted EPS would have been $1.00)

• BSI RoIC was 22.0%, or 24.8% excluding CAM division investments

Financial Results

In the fourth quarter of 2011, revenue was $475.1 million, compared to $416.1 million in the fourth quarter of 2010, an increase of 14.2%, including a 1.7% currency tailwind. Excluding the effects of acquisitions and foreign currency translation, fourth quarter 2011 revenue increased by 12.2% year-over-year. GAAP net income for the fourth quarter of 2011 was $39.1 million, or $0.23 per diluted share, compared to $29.3 million, or $0.18 per diluted share, in the fourth quarter of 2010. Adjusted net income for the fourth quarter of 2011 was $51.0 million, or $0.31 per diluted share, compared to $47.1 million, or $0.28 per diluted share, in the fourth quarter of 2010.

For the fourth quarter of 2011, Bruker’s cash flow from operations was $92.1 million, and free cash flow was $76.1 million. As of December 31, 2011, Bruker had cash, cash equivalents and restricted cash of $248.2 million and net debt of $54.9 million. As of December 31, 2011, Bruker’s Intangible Asset Ratio (IAR) was 13.8% and total debt leverage ratio was 1.2x.

For the full year ended December 31, 2011, revenue was $1,651.7 million, compared to $1,304.9 million in the full year 2010, an increase of 26.6%, including a 6.1% currency tailwind. Excluding the effects of acquisitions and foreign currency translation, revenue for 2011 increased by 9.2% organically over the year 2010. GAAP net income for the year 2011 was $92.3 million, or $0.55 per diluted share, compared to $95.4 million, or $0.58 per diluted share, for the year 2010. Adjusted net income for 2011 was $143.7 million, or $0.86 per diluted share, compared to $127.0 million, or $0.77 per diluted share, for 2010.

Bruker Scientific Instruments (BSI) Segment

In the fourth quarter of 2011, BSI revenue was $445.8 million, compared to $389.4 million for the fourth quarter of 2010, an increase of 14.5%, including a 1.8% currency tailwind. Excluding the effects of acquisitions and foreign currency translation, BSI revenue for the fourth quarter of 2011 increased by 12.3% over the fourth quarter of 2010. BSI GAAP EPS in the fourth quarter of 2011 was $0.25 per diluted share, compared to $0.19 in the fourth quarter of 2010. BSI adjusted EPS in the fourth quarter of 2011 was $0.33 per diluted share, compared to $0.29 in the fourth quarter of 2010.

For the full year ended December 31, 2011, BSI revenue was $1,554.1 million, compared to $1,225.1 million in 2010, an increase of 26.9%, including a 6.1% currency tailwind. Excluding the effects of acquisitions and foreign currency translation, BSI revenue for the full year 2011 increased by 8.6% organically over fiscal 2010. BSI GAAP EPS for the fiscal 2011 was $0.62 per diluted share, compared to $0.62 for 2010. BSI adjusted EPS for fiscal 2011 was $0.91 per diluted share, compared to $0.81 for fiscal 2010. Excluding investments in Bruker’s new Chemical & Applied Markets (CAM) division, BSI adjusted EPS for fiscal 2011 would have been $1.00.

For fiscal 2011, the BSI segment Return on Invested Capital (RoIC) was 22.0%, or 24.8% excluding Bruker’s investments in its CAM division.

Bruker Energy & Supercon Technologies (BEST) Segment

In the fourth quarter of 2011, BEST revenue was $33.6 million, compared to $29.3 million for the fourth quarter of 2010, an increase of 14.7%, including a 0.9% currency headwind. Excluding the effects of foreign currency translation, BEST revenue for the fourth quarter of 2011 increased by 15.6% organically over the fourth quarter of 2010. BEST GAAP loss per diluted share in each of the fourth quarters of 2011 and 2010 was ($0.01).

For the full year ended December 31, 2011, revenue for BEST was $113.4 million, compared to $90.5 million in the full year 2010, an increase of 25.3%, including a 5.5% currency tailwind. Excluding the effects of foreign currency translation, BEST revenue for the full year 2011 increased by 19.8% organically over fiscal 2010. BEST GAAP loss per diluted share for 2011 was ($0.05), compared to ($0.04) in 2010. BEST adjusted net loss per diluted share for the full year 2011 was ($0.03), compared to ($0.04) for fiscal 2010.

Adjusted net income and adjusted EPS are non-GAAP measures that exclude certain items detailed later in this press release under the heading “Use of Non-GAAP Financial Measures.”

Comment and Outlook

Frank Laukien, President and CEO of Bruker Corporation, commented: “Our emphasis on product innovation, organic growth, disciplined acquisitions and RoIC has enabled us to deliver 20% currency-adjusted revenue growth, and 9% organic revenue growth in 2011. Even with significant investment in our new CAM division, our BSI segment adjusted EPS increased 12% in 2011, while excluding our CAM investments, BSI adjusted EPS would have increased 23% year-over-year.

He continued: “I am pleased that despite two sizeable acquisitions in 2010, our balance sheet remained solid, with an intangible asset ratio at an industry-leading low level of 14%, and our debt leverage ratio at a conservative 1.2x as of December 31, 2011. Moreover, our BSI segment achieved RoIC of 22% in fiscal 2011, or 25% excluding our CAM investments. We believe that our present investments in our new CAM division and our BEST segment will strongly contribute to RoIC and shareholder value in the future. Our CAM division intends to reach break-even in 2013, and $250 million revenue and 18% adjusted operating margin by 2016.

Dr. Laukien concluded: “In the fourth quarter of 2011, our bookings were again excellent, and backlog increased further. With strong momentum, record backlog, and good geographic and end market diversification, we expect to generate significant further improvements in our financial performance in 2012 and beyond. Bruker is very well positioned to capitalize on strong demand tailwinds from a number of important secular trends, including accelerating shifts to post-genomic research and epigenetics, functional and imaging proteomics, structural biology, biologic drugs, a paradigm shift in clinical microbiology, protein and metabolite molecular diagnostics, fast and quantitative microscopy, 450 mm semiconductor FABs, shrinking semicon and nanotech feature sizes, and further adoption of superconductivity-enabled products in research, healthcare and energy/grid applications.”

Financial Goals for 2012

For 2012, Bruker will not exclude non-cash stock-based compensation expenses in adjusted operating income, adjusted net income and adjusted EPS. Comparisons will be provided to pro forma 2011 numbers which will also not exclude these non-cash expenses.

Bruker’s financial goals for the full year 2012 are:

• Currency-adjusted revenue growth of 7-10%, to revenue of $1.76-$1.81 billion

• BSI adjusted operating income of $230-$240 million, an increase of 15-18%

• BSI adjusted operating margin improvement of 120-140 basis points

• BSI adjusted EPS of $0.94-$0.98, compared to pro forma 2011 BSI adjusted EPS of $0.87 (includes $0.04 of non-cash stock-based compensation expense in both 2011 and 2012)

• BSI 0.45x working-capital-to-revenue ratio, compared to 0.47x in 2011

• BSI RoIC of 23%-25%

• Operating cash flow of $130-$160 million, and free cash flow of $80-$120 million

For the first quarter of 2012, Bruker expects total revenue of $380-$390 million, and BSI segment adjusted EPS of $0.11-$0.13, including CAM. Bruker’s medium-term financial goals for the year 2014 include total revenue greater than $2 billion, and BSI segment adjusted operating margin of 18%, excluding the CAM division, but now including non-cash stock-based compensation expense.