Company Quick10K Filing
Bruker
Price43.54 EPS1
Shares157 P/E33
MCap6,836 P/FCF89
Net Debt219 EBIT247
TEV7,055 TEV/EBIT29
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-03-31 Filed 2020-05-11
10-K 2019-12-31 Filed 2020-03-27
10-Q 2019-09-30 Filed 2019-11-04
10-Q 2019-06-30 Filed 2019-08-09
10-Q 2019-03-31 Filed 2019-05-08
10-K 2018-12-31 Filed 2019-03-01
10-Q 2018-09-30 Filed 2018-11-09
10-Q 2018-06-30 Filed 2018-08-09
10-Q 2018-03-31 Filed 2018-05-10
10-K 2017-12-31 Filed 2018-03-16
10-Q 2017-09-30 Filed 2017-11-09
10-Q 2017-06-30 Filed 2017-08-09
10-Q 2017-03-31 Filed 2017-05-10
10-K 2016-12-31 Filed 2017-03-01
10-Q 2016-09-30 Filed 2016-11-09
10-Q 2016-06-30 Filed 2016-08-05
10-Q 2016-03-31 Filed 2016-05-06
10-K 2015-12-31 Filed 2016-02-29
10-Q 2015-09-30 Filed 2015-11-06
10-Q 2015-06-30 Filed 2015-08-07
10-Q 2015-03-31 Filed 2015-05-08
10-K 2014-12-31 Filed 2015-02-27
10-Q 2014-09-30 Filed 2014-11-07
10-Q 2014-06-30 Filed 2014-08-08
10-Q 2014-03-31 Filed 2014-05-09
10-K 2013-12-31 Filed 2014-02-27
10-Q 2013-09-30 Filed 2013-11-08
10-Q 2013-06-30 Filed 2013-08-08
10-Q 2013-03-31 Filed 2013-05-09
10-K 2012-12-31 Filed 2013-02-28
10-Q 2012-09-30 Filed 2012-11-08
10-Q 2012-06-30 Filed 2012-08-09
10-Q 2012-03-31 Filed 2012-05-09
10-K 2011-12-31 Filed 2012-02-29
10-Q 2011-09-30 Filed 2011-11-09
10-Q 2011-06-30 Filed 2011-08-09
10-Q 2011-03-31 Filed 2011-05-09
10-K 2010-12-31 Filed 2011-03-01
10-Q 2010-09-30 Filed 2010-11-08
10-Q 2010-06-30 Filed 2010-08-09
10-Q 2010-03-31 Filed 2010-05-10
10-K 2009-12-31 Filed 2010-03-12
8-K 2020-05-21
8-K 2020-05-06
8-K 2020-03-27
8-K 2020-03-03
8-K 2020-02-18
8-K 2020-01-13
8-K 2019-12-11
8-K 2019-10-31
8-K 2019-08-01
8-K 2019-05-29
8-K 2019-05-20
8-K 2019-05-09
8-K 2019-05-02
8-K 2019-04-25
8-K 2019-02-14
8-K 2019-02-07
8-K 2018-11-04
8-K 2018-11-01
8-K 2018-08-02
8-K 2018-06-06
8-K 2018-05-21
8-K 2018-05-03
8-K 2018-03-12
8-K 2018-02-28
8-K 2018-02-16
8-K 2018-02-08

BRKR 10Q Quarterly Report

Part Ifinancial Information
Item 1.Unaudited Condensed Consolidated Financial Statements
Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3.Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II Other Information
Item 1. Legal Proceedings
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6.Exhibits
EX-31.1 brkr-20200331xex31d1.htm
EX-31.2 brkr-20200331xex31d2.htm
EX-32 brkr-20200331xex32d1.htm

Bruker Earnings 2020-03-31

Balance SheetIncome StatementCash Flow
2.41.91.41.00.50.02012201420172020
Assets, Equity
0.60.50.30.20.0-0.12012201420172020
Rev, G Profit, Net Income
0.20.10.0-0.0-0.1-0.22012201420172020
Ops, Inv, Fin

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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT of 1934

For the quarterly period ended March 31, 2020

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT of 1934

For the transition period from                  to

Commission File Number 000-30833

BRUKER CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

04-3110160

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

40 Manning Road, Billerica, MA 01821

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (978663-3660

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

    

Trading Symbols(s)

    

Name of each exchange on which registered

Common Stock

BRKR

Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes   No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes   No 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class

    

Outstanding at May 4, 2020

Common Stock, $0.01 par value per share

154,230,392 shares

Table of Contents

BRUKER CORPORATION

Quarterly Report on Form 10-Q

For the Quarter Ended March 31, 2020

Index

Page

Part I

FINANCIAL INFORMATION

1

Item 1:

Unaudited Condensed Consolidated Financial Statements

1

Unaudited Condensed Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019

1

Unaudited Condensed Consolidated Statements of Income and Comprehensive Income (Loss) for the three months ended March 31, 2020 and 2019

2

Unaudited Condensed Consolidated Statements of Redeemable Noncontrolling Interest and Shareholders’ Equity for the three months ended March 31, 2020 and 2019

3

Unaudited Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2020 and 2019

4

Notes to Unaudited Condensed Consolidated Financial Statements

5

Item 2:

Management’s Discussion and Analysis of Financial Condition and Results of Operations

24

Item 3:

Quantitative and Qualitative Disclosures About Market Risk

35

Item 4:

Controls and Procedures

36

Part II

OTHER INFORMATION

37

Item 1:

Legal Proceedings

37

Item 1A:

Risk Factors

38

Item 2:

Unregistered Sales of Equity Securities and Use of Proceeds

39

Item 6:

Exhibits

39

Signatures

40

Table of Contents

PART I

FINANCIAL INFORMATION

ITEM 1.

UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

BRUKER CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except share and per share data)

March 31, 

    

December 31, 

    

2020

    

2019

ASSETS

Current assets:

Cash and cash equivalents

$

795.5

$

678.3

Short-term investments

56.2

6.6

Accounts receivable, net

 

325.5

 

362.2

Inventories

 

625.5

 

577.2

Other current assets

 

187.3

 

172.0

Total current assets

 

1,990.0

 

1,796.3

Property, plant and equipment, net

 

318.6

 

306.1

Goodwill

290.0

293.0

Operating lease assets

62.3

65.6

Intangibles, net and other long-term assets

301.0

310.5

Total assets

$

2,961.9

$

2,771.5

LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS' EQUITY

Current liabilities:

Current portion of long-term debt

$

95.8

$

0.5

Accounts payable

 

127.0

 

118.4

Customer advances

 

141.8

 

137.9

Other current liabilities

 

401.2

 

388.8

Total current liabilities

 

765.8

 

645.6

Long-term debt

 

914.8

 

812.8

Operating lease liabilities

44.3

47.0

Other long-term liabilities

 

312.4

 

327.9

Commitments and contingencies (Note 13)

Redeemable noncontrolling interest

21.1

Shareholders' equity:

Preferred stock, $0.01 par value 5,000,000 shares authorized, none issued or outstanding

 

 

Common stock, $0.01 par value 260,000,000 shares authorized, 173,573,073 and 173,502,375 shares issued and 154,226,496 and 154,155,798 shares outstanding at March 31, 2020 and December 31, 2019, respectively

 

1.7

 

1.7

Treasury stock, at cost, 19,346,577 shares at March 31, 2020 and December 31, 2019

 

(543.8)

 

(543.8)

Accumulated other comprehensive loss

 

(23.3)

 

(25.5)

Other shareholders' equity

 

1,481.0

 

1,474.4

Total shareholders' equity attributable to Bruker Corporation

 

915.6

 

906.8

Noncontrolling interest in consolidated subsidiaries

 

9.0

 

10.3

Total shareholders' equity

 

924.6

 

917.1

Total liabilities, redeemable noncontrolling interest and shareholders' equity

$

2,961.9

$

2,771.5

The accompanying notes are an integral part of these financial statements.

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BRUKER CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)

(in millions, except per share data)

Three Months Ended March 31, 

    

2020

    

2019

Product revenue

$

345.0

$

383.0

Service revenue

 

78.2

 

77.4

Other revenue

 

0.8

 

1.0

Total revenue

 

424.0

 

461.4

Cost of product revenue

 

180.5

 

197.5

Cost of service revenue

 

51.1

 

49.1

Cost of other revenue

0.1

0.1

Total cost of revenue

 

231.7

 

246.7

Gross profit

 

192.3

 

214.7

Operating expenses:

Selling, general and administrative

 

121.2

 

120.1

Research and development

 

48.5

 

46.4

Other charges, net

 

6.2

 

6.3

Total operating expenses

 

175.9

 

172.8

Operating income

 

16.4

 

41.9

Interest and other income (expense), net

 

(2.9)

 

(3.5)

Income before income taxes and noncontrolling interest in consolidated subsidiaries

 

13.5

 

38.4

Income tax provision

 

2.9

 

7.7

Consolidated net income

 

10.6

 

30.7

Net income (loss) attributable to noncontrolling interests in consolidated subsidiaries

 

0.1

 

(0.1)

Net income attributable to Bruker Corporation

$

10.5

$

30.8

Net income per common share attributable to Bruker Corporation shareholders:

Basic

$

0.07

$

0.20

Diluted

$

0.07

$

0.20

Weighted average common shares outstanding:

Basic

 

154.2

 

156.7

Diluted

 

155.4

 

157.9

Comprehensive income

$

12.1

$

17.0

Less: Comprehensive loss attributable to noncontrolling interests

 

(0.1)

 

(0.1)

Less: Comprehensive loss attributable to redeemable noncontrolling interest

(0.5)

Comprehensive income attributable to Bruker Corporation

$

12.7

$

17.1

The accompanying notes are an integral part of these financial statements.

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BRUKER CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY

(in millions, except per share data)

    

    

    

    

    

    

    

    

Total

    

Shareholders'

Accumulated

Equity

Noncontrolling

Redeemable

Treasury

Additional

Other

Attributable to

Interests in

Total

Noncontrolling

Common Stock

Treasury

Stock

Paid-In

Retained

Comprehensive

Bruker

Consolidated

Shareholders'

    

Interest

  

  

Common Shares

    

Amount

    

Shares

    

Amount

    

Capital

    

Earnings

    

Income (Loss)

    

Corporation

    

Subsidiaries

    

Equity

Balance at December 31, 2018

 

$

22.6

156,609,340

$

1.7

 

16,024,880

$

(401.5)

$

176.9

$

1,102.5

$

17.0

$

896.6

$

8.5

$

905.1

Stock options exercised

 

167,177

 

 

 

 

3.1

 

 

 

3.1

 

 

3.1

Restricted stock units vested

 

35,072

 

 

 

 

 

 

 

 

 

Stock based compensation

 

 

 

 

 

2.7

 

 

 

2.7

 

 

2.7

Shares issued for acquisition

 

3,087

 

 

(3,087)

 

 

 

 

 

 

 

Cash dividends paid to common stockholders ($0.04 per share)

 

 

 

 

 

 

(6.3)

 

 

(6.3)

 

 

(6.3)

Consolidated net income (loss)

 

(0.2)

 

 

 

 

 

30.8

 

 

30.8

 

(0.1)

 

30.7

Other comprehensive income (loss)

 

(0.4)

 

 

 

 

 

 

(13.7)

 

(13.7)

 

 

(13.7)

Balance at March 31, 2019

 

$

22.0

156,814,676

$

1.7

 

16,021,793

$

(401.5)

$

182.7

$

1,127.0

$

3.3

$

913.2

$

8.4

$

921.6

Balance at December 31, 2019

 

$

21.1

154,155,798

$

1.7

 

19,346,577

$

(543.8)

$

199.7

$

1,274.7

$

(25.5)

$

906.8

$

10.3

$

917.1

Stock options exercised

 

30,182

 

 

 

 

0.7

 

 

 

0.7

 

 

0.7

Restricted stock units vested

 

40,516

 

 

 

 

(0.1)

 

 

 

(0.1)

 

 

(0.1)

Stock based compensation

 

 

 

 

 

3.0

 

 

 

3.0

 

 

3.0

Cash dividends paid to common stockholders ($0.04 per share)

 

 

 

 

 

 

(6.2)

 

 

(6.2)

 

(1.2)

 

(7.4)

Acquisition of redeemable noncontrolling interest

(20.6)

(1.3)

(1.3)

(1.3)

Consolidated net income (loss)

 

 

 

 

 

 

10.5

 

 

10.5

 

0.1

 

10.6

Other comprehensive income (loss)

 

(0.5)

 

 

 

 

 

 

2.2

 

2.2

 

(0.2)

 

2.0

Balance at March 31, 2020

 

$

154,226,496

$

1.7

 

19,346,577

$

(543.8)

$

203.3

$

1,277.7

$

(23.3)

$

915.6

$

9.0

$

924.6

The accompanying notes are an integral part of these financial statements.

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BRUKER CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

Three Months Ended March 31, 

    

2020

    

2019

Cash flows from operating activities:

Consolidated net income

$

10.6

$

30.7

Adjustments to reconcile consolidated net income to cash flows from operating activities:

Depreciation and amortization

 

19.0

 

19.0

Stock-based compensation expense

 

3.3

 

3.1

Deferred income taxes

 

1.1

 

(0.2)

Other non-cash expenses, net

 

11.7

 

4.5

Changes in operating assets and liabilities, net of acquisitions and divestitures:

Accounts receivable

 

29.5

 

(6.0)

Inventories

 

(61.0)

 

(43.2)

Accounts payable and accrued expenses

 

19.1

 

11.0

Income taxes payable, net

 

(15.0)

 

(7.9)

Deferred revenue

 

20.6

 

13.9

Customer advances

 

16.5

 

6.5

Other changes in operating assets and liabilities, net

 

(20.4)

 

(17.2)

Net cash provided by operating activities

 

35.0

 

14.2

Cash flows from investing activities:

Purchases of short-term investments

 

(50.0)

 

Cash paid for acquisitions, net of cash acquired

(22.0)

(16.1)

Purchases of property, plant and equipment

 

(30.5)

 

(10.6)

Net proceeds from cross- currency swap agreements

 

1.9

 

Net cash used in investing activities

 

(100.6)

 

(26.7)

Cash flows from financing activities:

Repayments of 2012 Note Purchase Agreement

(15.0)

Repayments of revolving lines of credit

(25.9)

Proceeds from revolving lines of credit

197.5

40.6

Repayment of other debt

(0.3)

(4.5)

Proceeds from other debt

1.2

0.2

Proceeds from issuance of common stock, net

0.6

3.1

Payment of contingent consideration

(0.3)

(1.0)

Payment of dividends

(6.2)

(6.3)

Cash payments to noncontrolling interest

(1.2)

Net cash provided by (used in) financing activities

 

191.3

 

(8.8)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

(8.7)

 

(2.4)

Net change in cash, cash equivalents and restricted cash

 

117.0

 

(23.7)

Cash, cash equivalents and restricted cash at beginning of period

 

681.9

 

326.3

Cash, cash equivalents and restricted cash at end of period

$

798.9

$

302.6

The accompanying notes are an integral part of these financial statements.

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BRUKER CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1.    Description of Business

Bruker Corporation, together with its consolidated subsidiaries (Bruker or the Company), develops, manufactures and distributes high-performance scientific instruments and analytical and diagnostic solutions that enable its customers to explore life and materials at microscopic, molecular and cellular levels. Many of the Company’s products are used to detect, measure and visualize structural characteristics of chemical, biological and industrial material samples. The Company’s products address the rapidly evolving needs of a diverse array of customers in life science research, pharmaceuticals, biotechnology, applied markets, cell biology, clinical research, microbiology, in-vitro diagnostics, nanotechnology and materials science research.

The Company has four operating segments, Bruker BioSpin Group, Bruker CALID Group, Bruker Scientific Instruments (BSI) Nano Segment and Bruker Energy & Supercon Technologies (BEST). The Company has three reportable segments, BSI Life Science Segment, BSI NANO Segment and BEST.  

For financial reporting purposes, the Bruker BioSpin Group and Bruker CALID Group operating segments are aggregated into the reportable BSI Life Science Segment because each has similar economic characteristics, production processes, service offerings, types and classes of customers, methods of distribution and regulatory environments.

Bruker BioSpin — The Bruker BioSpin Group designs, manufactures and distributes enabling life science tools based on magnetic resonance technology. Bruker BioSpin Group’s revenues are generated by academic and government research customers, pharmaceutical and biotechnology companies and nonprofit laboratories, as well as chemical, food and beverage, clinical and other industrial companies.

Bruker CALID (Chemicals, Applied Markets, Life Science, In-Vitro Diagnostics, Detection)- The Bruker CALID Group designs, manufactures and distributes life science mass spectrometry and ion mobility spectrometry solutions, analytical and process analysis instruments and solutions based on infrared and Raman molecular spectroscopy technologies and radiological/nuclear detectors for Chemical, Biological, Radiological, Nuclear and Explosive (CBRNE) detection. Customers of the Bruker CALID Group include: academic institutions and medical schools; pharmaceutical, biotechnology and diagnostics companies; contract research organizations; nonprofit and  for-profit forensics laboratories; agriculture, food and beverage safety laboratories; environmental and clinical microbiology laboratories; hospitals and government departments and agencies.

The BSI NANO Segment designs, manufactures and distributes advanced X-ray instruments; atomic force microscopy instrumentation; advanced fluorescence optical microscopy instruments; analytical tools for electron microscopes and X-ray metrology; defect-detection equipment for semiconductor process control; handheld, portable and mobile X-ray fluorescence spectrometry instruments; and spark optical emission spectroscopy systems. Customers of the BSI NANO Segment include academic institutions, governmental customers, nanotechnology companies, semiconductor companies, raw material manufacturers, industrial companies, biotechnology and pharmaceutical companies and other businesses involved in materials analysis.

The BEST reportable segment develops and manufactures superconducting and non-superconducting materials and devices for use in renewable energy, energy infrastructure, healthcare and "big science" research. The segment focuses on metallic low temperature superconductors for use in magnetic resonance imaging, nuclear magnetic resonance, fusion energy research and other applications.

The unaudited condensed consolidated financial statements represent the consolidated accounts of the Company. All intercompany accounts and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements as of March 31, 2020 and December 31, 2019, and for the three months ended March 31, 2020 and 2019, have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, the financial information presented herein does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair statement have been included. The results for interim periods are not necessarily indicative of the results expected for any other interim period or the full year.

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At March 31, 2020, the Company's significant accounting policies and estimates, which are detailed in the Company's Annual Report on Form 10-K for the year ended December 31, 2019, have not changed.

Risks & Uncertainties

The Company is subject to risks common to its industry including, but not limited to, global economic conditions, rapid technological change, government and academic funding levels, the impact of the COVID-19 coronavirus, changes in commodity prices, spending patterns of its customers, protection of its intellectual property, availability of key raw materials and components, compliance with existing and future regulation by government agencies and fluctuations in foreign currency exchange rates and interest rates.

In December 2019, a novel strain of coronavirus, referred to as COVID-19, surfaced in Wuhan, China. The virus continues to spread globally, has been declared a pandemic by the World Health Organization and has spread to over 200 countries and territories, including the United States. The impact of this pandemic has been and will likely continue to be extensive in many aspects of society, which has resulted in and will likely continue to result in significant disruptions to the global economy, as well as businesses and capital markets around the world.

Impacts to the Company's business include temporary closures of many of the government and university customers and suppliers, disruptions or restrictions on employees' and customers' ability to travel, and delays in product installations or shipments to and from affected countries. In an effort to halt the outbreak of COVID-19, a number of countries, including the United States, have placed significant restrictions on travel and many businesses have announced extended closures. For example, a number of states, including California, Massachusetts and New Jersey where the Company has significant operations, have issued shelter in place or stay-at-home orders which remain in place and require employees in that area to work from home and avoid unnecessary travel. In addition, a number of the Company's production facilities have either temporarily closed or are operating on a reduced capacity. Most commercial activity in sales and marketing, and customer demonstrations and applications training, are either being conducted remotely or postponed. Customer purchasing departments are operating at reduced capacity, and many customers could delay or cut capital expenditures and operating budgets. These travel restrictions, business closures and operating reductions at Bruker, customers, distributors, and/or suppliers have and will continue to adversely impact the Company's operations worldwide, including the ability to manufacture, sell or distribute products, as well as cause temporary closures of foreign distributors, or the facilities of suppliers or customers. This disruption of the Company's employees, distributors, suppliers and customers has and will continue to impact the Company’s global sales and operating results. The Company anticipates that the COVID-19 pandemic and challenges to customers' and the Company's operations will continue to have a significant negative impact on the Company’s second quarter 2020 financial results.

The Company is continuing to monitor and assess the effects of the COVID-19 pandemic on commercial operations, including its continued impact on revenue in 2020. However, the Company cannot at this time accurately predict what effects these conditions will ultimately have on future operations due to uncertainties relating to the ultimate geographic spread of the virus, the severity of the disease, the duration of the outbreak, and the length of the travel restrictions and business closures imposed by the governments of impacted countries. The outbreak of contagious diseases in the human population could result in a widespread health crisis that could adversely affect the economies and financial markets of many countries, resulting in an economic downturn or a global recession that could affect demand for our products and likely impact the Company's operating results.

The preparation of the condensed consolidated financial statements requires the Company to make estimates, judgments and assumptions that may affect the reported amounts of assets, liabilities, equity, revenues and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis the Company evaluates estimates, judgments and methodologies. Changes in estimates are recorded in the period in which they become known. The Company bases estimates on historical experience and on various other assumptions that they believe are reasonable, the results of which form the basis for making judgments about the carrying values of assets, liabilities and equity and the amount of revenues and expenses. The full extent to which the COVID-19 pandemic will directly or indirectly impact the business, results of operations and financial condition, including sales, expenses, reserves and allowances, manufacturing, research and development costs and employee-related amounts, will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain it or treat COVID-19, as well as the economic impact on local, regional, national and international customers and markets. The Company has made estimates of the impact of COVID-19 within the financial statements and there may be changes to those estimates in future periods. Actual results may differ from management's estimates if these results differ from historical experience.

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2.    Revenue

The following table presents the Company’s revenues by Group and End Customer Geography (dollars in millions):

Three Months Ended

March 31, 

    

2020

    

2019

Revenue by Group:

 

Bruker BioSpin

 

$

120.9

$

127.8

Bruker CALID

 

140.5

148.2

Bruker Nano

 

120.1

140.8

BEST

 

46.2

47.8

Eliminations

 

(3.7)

(3.2)

Total revenue

$

424.0

$

461.4

Three Months Ended

March 31, 

    

2020

    

2019

Revenue by End Customer Geography:

 

  

United States

 

$

109.4

$

117.6

Germany

 

40.9

42.8

Rest of Europe

 

104.0

112.3

Asia Pacific

 

137.2

152.2

Other

 

32.5

36.5

Total revenue

$

424.0

$

461.4

Revenue for the Company recognized at a point in time versus over time is as follows (dollars in millions):

Three Months Ended

March 31, 

    

2020

    

2019

Revenue recognized at a point in time

 

$

367.7

$

410.5

Revenue recognized over time

 

56.3

50.9

Total revenue

 

$

424.0

$

461.4

Remaining Performance Obligations

Remaining performance obligations represent the aggregate transaction price allocated to a promise to transfer a good or service that is fully or partially unsatisfied at the end of the period.  As of March 31, 2020, remaining performance obligations were approximately $1,852.1 million. The Company expects to recognize revenue on approximately 54.2% of the remaining performance obligations over the next twelve months and the remaining performance obligations primarily within one to three years.

Contract Balances

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets) and deferred revenue, customer deposits and billings in excess of revenue recognized (contract liabilities) on the Company’s unaudited condensed consolidated balance sheets.

Contract assets—Most of the Company’s long-term contracts are billed as work progresses in accordance with the contract terms and conditions, either at periodic intervals or upon achievement of certain milestones. Billing often occurs subsequent to revenue recognition, resulting in contract assets. Contract assets are generally classified as other current assets in the unaudited condensed consolidated balance sheets. The balance of contract assets as of March 31, 2020 and December 31, 2019 was $40.7 million and $43.9 million, respectively.  The decrease in the contract asset balance during the three month period ended March 31, 2020 is primarily a result of the decline in revenue.

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Contract liabilities—The Company often receives cash payments from customers in advance of the Company’s performance, resulting in contract liabilities. These contract liabilities are classified as either current or long-term in the unaudited condensed consolidated balance sheet based on the timing of when revenue recognition is expected.  As of March 31, 2020 and December 31, 2019, the contract liabilities were $342.1 million and $312.5 million,  respectively. The increase in the contract liability balance during the three month period ended March 31, 2020 is primarily the result of a delay in installations due to the impact of COVID-19 on the global economy. Approximately $76.7 million of the contract liability balance on December 31, 2019 was recognized as revenue during the three month period ended March 31, 2020.

3.    Acquisitions

The impact of all acquisitions, individually and collectively, on revenues, net income and total assets was not material. Pro forma financial information reflecting all acquisitions has not been presented because the impact, individually and collectively, on revenues, net income and total assets is not material. Amounts allocated to goodwill that are attributable to expected synergies are not expected to be deductible for tax purposes.

2020

Hain

On October 15, 2018, Bruker acquired an 80% interest in Hain Lifescience GmbH (“Hain”) for a purchase price of Euro 66 million (approximately $76.4 million) with options to acquire the remaining 20%. Hain is an infectious disease specialist with a broad range of molecular diagnostics solutions for the detection of microbial and viral pathogens, as well as for molecular antibiotic resistance testing. Hain is located in Nehren, Germany and was integrated into the BSI Life Science Segment. On January 31, 2020, the Company acquired the remaining 20% interest in Hain for a purchase price of EUR 20 million (approximately $22.2 million). The carrying value of the noncontrolling interest was accreted to the redemption value of EUR 20 million through retained earnings and then reclassified to additional paid in capital.

2019

In the three months ended March 31, 2019, the Company completed two acquisitions that collectively complemented the Company's existing product offerings or added aftermarket and software capabilities to the Company's existing businesses.

 

The following table reflects the consideration transferred and the respective reporting segment for each of these acquisitions:

Name of Acquisition

    

Date Acquired

    

Segment

    

Consideration

    

Cash Consideration

Arxspan, LLC

March 4, 2019

 

BSI Life Science

$

16.6

$

14.4

Ampegon PPT GmbH

March 7, 2019

 

BEST

 

2.0

 

2.0

$

18.6

$

16.4

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4.    Stock-Based Compensation

The Company recorded stock-based compensation expense as follows in the unaudited condensed consolidated statements of income and comprehensive income (dollars in millions):

Three Months Ended March 31, 

    

2020

    

2019

Stock options

$

0.4

$

0.7

Restricted stock awards

 

 

0.1

Restricted stock units

2.6

1.9

Total stock-based compensation

$

3.0

$

2.7

Three Months Ended March 31, 

    

2020

    

2019

Costs of product revenue

$

0.5

$

0.4

Selling, general and administrative

 

2.0

 

1.9

Research and development

0.5

0.4

Total stock-based compensation

$

3.0

$

2.7

In addition to the awards above, the Company recorded stock-based compensation expense within other charges, net of $0.3 million and $0.4 million in the three months ended March 31, 2020 and 2019, respectively, related to the 2018 acquisition of Mestrelab Research, S.L. (Mestrelab).

Stock-based compensation expense is recognized on a straight-line basis over the underlying requisite service period of the stock-based award.

Stock options to purchase the Company's common stock are periodically awarded to executive officers and other employees of the Company subject to a vesting period of three to four years. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model. There were no stock options awarded during the three months ended March 31, 2020 and 2019.

Stock option activity for the three months ended March 31, 2020 was as follows:

Weighted

Average

Weighted

Remaining

Aggregate

Shares Subject

Average

Contractual

Intrinsic Value

    

to Options

    

Option Price

    

Term (Yrs)

    

(in millions) (b)

Outstanding at December 31, 2019

 

1,988,696

$

23.43

Granted

Exercised

 

(30,182)

 

23.07

Forfeited/Expired

 

(3,113)

 

22.84

Outstanding at March 31, 2020

 

1,955,401

$

23.39

 

4.7

$

25.4

Exercisable at March 31, 2020

 

1,515,278

$

20.89

 

4.5

$

22.7

Exercisable and expected to vest at March 31, 2020 (a)

 

1,919,442

$

23.23

 

4.7

$

25.2

(a)In addition to the options that are vested at March 31, 2020, the Company expects a portion of the unvested options to vest in the future. Options expected to vest in the future are determined by applying an estimated forfeiture rate to the options that are unvested as of March 31, 2020.
(b)The aggregate intrinsic value is based on the positive difference between the fair value of the Company’s common stock price of $35.86 on March 31, 2020 and the exercise price of the underlying stock options.

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The total intrinsic value of options exercised was $0.3 million and $3.1 million for the three months ended March 31, 2020 and 2019, respectively.

Restricted stock unit activity for the three months ended March 31, 2020 was as follows:

Weighted

Average Grant

Shares Subject

Date Fair

    

to Restriction

    

Value

Outstanding at December 31, 2019

865,101

$

34.73

Granted

23,859

50.70

Vested

 

(41,738)

 

30.40

Forfeited

(21,845)

32.65

Outstanding at March 31, 2020

 

825,377

$

35.46

The total fair value of restricted stock units vested was $1.3 million and $1.1 million for the three months ended March 31, 2020 and 2019, respectively.

At March 31, 2020, the Company expects to recognize pre-tax stock-based compensation expense of $2.4 million associated with outstanding stock option awards granted under the Company's stock plans over the weighted average remaining service period of 1.3 years. The Company also expects to recognize additional pre-tax stock-based compensation expense of $21.1 million associated with outstanding restricted stock units granted under the 2016 Plan over the weighted average remaining service period of 2.4 years.

5.    Earnings Per Share

Net income per common share attributable to Bruker Corporation shareholders is calculated by dividing net income attributable to Bruker Corporation, adjusted to reflect changes in the redemption value of the redeemable noncontrolling interest, by the weighted-average number of shares outstanding during the period. The diluted net income per share computation includes the effect of shares which would be issuable upon the exercise of outstanding stock options and the vesting of restricted stock, reduced by the number of shares which are assumed to be purchased by the Company under the treasury stock method.   There was