Each year since 2005, IBO has selected a firm from our industry as “company of the year.” This designation is based on IBO’s recognition that the selected analytical instrument maker has accomplished significant technical, operational and financial achievements during that year. Such achievements are measured by financial performance, market leadership, product introductions and key strategic investments.

IBO’s 2012 company of the year is Bruker, a mainstream market participant with a progressively broadening product line based on product introductions and acquisitions. Bruker is a two-time winner of this designation, having been selected in 2007 (see IBO 1/15/07); although the company is significantly different now and about twice as large in terms of turnover.

For the first nine months of 2012, Bruker’s top-line growth was 8.3%, which is significantly faster than the overall market. Being Europe-based, Bruker bore harsh currency movements without which the record would have been even better. Excluding the effects of acquisitions and foreign currency translation, revenue for the period increased 12.6%.

Operating income increased 16.5% for the first nine months, although adjusted operating margins were roughly flat. Earnings were also roughly flat compared with the prior year. Management has, however, undertaken steps to correct the situation. Clearly, the stock market recognizes this, as Bruker’s stock price is up 23% for the year, while the industry average was a 17% increase (see IBO 12/31/12).

During the last few years, Bruker has made several major acquisitions that have given the company greater size and scope. During 2012, Bruker completed three smaller transactions, two of which were complementary to its preclinical solutions portfolio original composed of magnetic resonance imaging (MRI) and magnetic particle imaging (MPI). In April, it acquired SkyScan, a manufacturer of microCT systems for preclinical imaging (see IBO 4/15/12), and in September, Bruker acquired Carestream’s Molecular Imaging business (see IBO 9/30/12).

Bruker is also making important forays into the diagnostics arena, a field of growing importance. Bruker has initially focused on Europe but now has taken a more global approach for clinical MS and diagnostics, particularly clinical microbiology. Its MALDI Biotyper, developed for microbial identification, has been enthusiastically received in Europe and approvals have been received in several Asian countries. FDA approval is hoped for during the second half of 2013. The Biotyper also has the potential to go beyond identification of pathogens into hospital-acquired infection management and epidemiology. In September, Bruker launched the automated Toxtyper clinical MS for use in routine toxicology laboratories, which provides faster and more reliable identification of toxins and drugs of abuse.

Bruker has a history of launching dozens of new products every year, which make it one of the most innovative suppliers in the industry. Its trailing 11% R&D rate as a percent of sales attests to this commitment. A market leader in several important product segments, Bruker is also one of the top 10 industry suppliers, with laboratory instrumentation revenues estimated at about $1.5 billion for 2012. Its aggressive and creative approach to market expansion is exceptional and confirms its selection as company of the year for 2012.