Bruker (BRKR) 6 Aug 242024 Q2 Earnings call transcript

Good day, and welcome to the Bruker Corporation Second Quarter 2024 Earnings Call. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Mr. [ Joe Cosca ]. Please go ahead, sir.

morning. Good to Call. Bruker like XXXX Second everyone Conference Earnings welcome would Corporation's to Quarter I is Joe name Relations. My [ Bruker Director Investor of Cosca ], Associate

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

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

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

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

statements SEC prior may November forward-looking expected XXXX our other outlook our or XXXX. XXXX. the information to is following today, be of statements. Factors other materially on and events our operational risks, our financial current of website. supply early results in chain. that The those to, acquisitions, During as financial December and note by release market company the XXXX, on conditions events in earnings do company's law XX-K such the related regarding not website third today's impending or future of are for and are this the include, we release to intend make those actual and cause differ conference information, except We statements our filings, updated by call, uncertainties, available performance August new based and SEC's geopolitical XX, discussed limited demand to based involve our results will that quarter risks which to or recent including as future please our from and differences on forward-looking not Also, but such in required the that reasons, ending the update period as for business may Form X, on might may

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

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

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

Thank you Good XXXX you, quarter joining on earnings second Joe. and call. morning, everyone, thank for today's us

delivered XXXX Our revenue of conditions. growth quarter the a market despite teams excellent in second and solid first soft have half

on strategy we posting exchange range see of X.X of CER delay to the decisions Project growth has appear execute from quarter customers China, package. We And half to operational and revenue continue our revenue of differentiated second growth Science Life remained X% dual excellence in even organic solutions, in well year, into but above of some stimulus and stronger organic announced market scientific for year our guidance good mid-single-digit while for our growth we X%. acknowledge demand revenue third full Accelerate the in the they We revenue apply the maintain biopharma the organic transformation constant and weak. XXXX, of mostly instruments growth. We and expect purchase funding that to demand portfolio more or rate now

era. unique fundamentally the by organic engine Bruker's as favorable enabling post-genomic well towards multiyear growth our for well Our transformation trends driven tools secular above is differentiated innovation our as for

in-depth and Rim in XX, in of into biology, metrology for We molecular strong half laboratory semiconductor orders we in which market we and in hosted with North automation investor well-timed high-performance benefiting our into we major Pacific AI of digitization. well orders expansion portfolio completed countries, the in megatrend also addressable strength X an that May These America. On from the transformation as in into accelerate webinar XXXX. looks computing and the spatial acquisitions first are strategic acquisitions diagnostics, further support as provided

our previous business ahead the including and XXXX mid-single-digit track in to own to first of general, ahead and speed the when excellent didn't year, at an with bodes our for sample-to-answer have high U.S. the months Moreover, our tries be moment. count well to initial that be the additional and much achieve Germany automation period Bruker full with of in July, new for spots through Molecular should Diagnostics combined to single-digit in Italy and our is the assay In on molecular full times where X or for platforms very BeGenius growth appears of pull-through. business pharma, which diagnostics expectations and leadership very we delighted we is molecular consumables industry, diagnostics Diagnostics favor expectations. Chemspeed and doing synergies. ELITech we So the are is of we is OpEx. platforms with including far, appears teams pleased overperforming one where integrating our as added we're to the well placements QC Chem bright it sample-to-answer InGenius our May CapEx industry market molecular in via lab digitization even performance ELITech, expectations these head revenue XXXX, at business, Molecular ELITech are quite in which diagnostics reduce line our NanoString investments of and productivity in R&D when is growth and the reassuringly now at with plan for

on than NanoString previously investor X to already running fully guidance provide exactly improved very of business, today NanoString rather May. our to the investor XXXX seems the additional take in be our I report to acquired our after which importantly, perspective, perhaps acquisition now timing am So NanoString pleased 'XX fiscal May in visibility I as moment early business, would webinar. like formal our an has months Bruker that contemplated to from we the updates during ELITech good. Most a of incorporate XX year into to for

in rate taken our and we and with 'XX already. By and already its year you very not 'XX, considerable had at NanoString. in XXXX overhead, also the many the for in benefits a acquired such revenue as additional company cost NanoStream first solid public end $XX cloud for benefit asset expect we of actions into will public NanoString We we excellence the software actions may anticipate facility million quarter CosMx rebound in-sourcing acquire improvements very of continue month did see XXXX. Bruker On a in This significant about step-up to NanoString, quarter other fiscal previous half and per NanoString of run operational business and as the the drive the 'XX, cost multiple of Moreover, second then but benefits again entity and fourth 'XX. cost production us expect of the of recall, deal. to of meaningful in savings the cost consolidation, XXXX lean margin growth

and financial We XXXX beyond. in expect benefits the

increased Finally, and group other very some cost Bruker actions aligned dilution. initial of I'm reduction the In time, a in revenues despite high ROIC also the certain second in for we offset the our now improvements. that be XXXX, revenues On in currency in XX.X%, in Revenue will markets. conditions second second CER very Slide added I that in 'XX in place delivered pleased our XX.X% our revenue of of applying rate and good At remained resilient decline an have X.X% excellence, was implies minus already in taken recently, NanoString Bruker. Getting Bruker lean Nano of products financially and Bruker areas Bruker's really eliminations. drive and [indiscernible] NanoString segment X. EPS growth growth innovative part quarter leads management financial which turning intercompany BEST investment exchange Bruker included cost the of organic a Altogether, the advancing has headwind quite from to included operational acquisition net BSI growth. put the significant growth are to of million X.X%. motivated into margin of Seattle to or and and which to excellent organic we innovation quarter team, management which NanoString across strategically year-over-year a and goods quarter. growth $XXX.X for XX.X% shopper NanoString to increased same and X.X% I'm and out turn acquisitions report NanoString order to organic margin constant highly optimistic OpEx reported X.X% and as reaccelerate quarter a process our and basis, sold to at

reported organic of from 'XX. mid-May. recent quarter will Our per in diluted second a in expected of X% In more compared 'XX, acquisitions, margin non-GAAP was webinar detail. share year-over-year. XXX by diluted margin of investor from non-GAAP 'XX the our XX.X%, 'XX. a significant second up operating and as in a reported Gerald $X.XX the was second quarter basis, margins expansion to EPS than minus second Bruker the the explained On $X.XX quarter the headwinds 'XX in in EPS quarter for initial of more GAAP quarter offset bps second later drivers $X.XX, EPS $X.XX decrease discuss of was

the of expected growth $X.XX down half revenues Slide X, organic acquisitions. More 'XX performance to by 'XX Moving our can half as transformative XXXX you to and XX.X% first to performance with was first see specifically, on minus of the EPS while revenue non-GAAP half X.X%, in our execution billion. due Bruker's solid X.X% first increased

organic growth BEST, Instruments First in organic at growth growth of half X.X% and Scientific eliminations. net consisted of organic intercompany revenue X.X%

for a were was the significant package, we First now above us prepare biopharma but without well in we stimulus below benefit We China with robust a of XXXX which half buffer recovery to able a book-to-bill 'XX X.X. and expect BSI extended yet benefits more period backlog or X beyond. our immediate as this ratio to

was where non-GAAP year-over-year and its process of revenue integrated well our of Slide the X BEST the industrial X on for and platform. XXXX in and teens performance turn of 'XX, all EPS of second half segment, revenue solutions instruments X 'XX. In BioSpin million BioSpin and half first government on There grew NMR half technologies data X. Please the half non-GAAP software margin 'XX, currency and constant our system and first highlight operating second division, markets X expect in Our groups of in $XXX high and SI vendor-agnostic margins a biopharma the scientific revenue we NMR gigahertz all the summarized saw gigahertz basis. scientific was the growth in as half In we and now, Group more quarter class and analytical 'XX across XXXX, percentage. are to in class first X first about gross performance in GAAP our and as academic, do Slide research

pectroscopy that ELITech with and an by had a well half finally, MALDI Group growth the disease exciting as single-digit the come $XXX For business the of the microbiology driven In Slide that high April. And of quarter back business. CALID at and in franchise. revenue acquired the slide. Please molecular well microscopy 'XX, percentage the of the to growth by of Molecular addition X infectious now. ASMS, at first spectrometers, end launched to in million, and X we as optics, with closed in the as turn we mass increase newly separate I'll second new Biotyper Diagnostics

industrial the half academic/government the in and was $XXX in Bruker For with Nano first strong research percentage revenue and mid-teens XXXX, revenue growth grew million aca/government, markets.

recently Analysis, PhenomeX recently from acquired saw contributions former business. and acquired solid growth NanoString our the also Bruker Cellular the We

first fluorescence the and in x-ray science tools revenues delivered life down. while advanced strong analytics Our half, growth microscopy businesses were revenue

lithography XXXX different in projects lithography driven technologies our support big the by RI first of EUV digits for growth BEST and eliminations, semiconductor grew well is science net from are tools. intercompany in also research in half single as semiconductor metrology. as These Fusion high of This AI. Right. OEMs, tools Finally, revenues

did X-year XX% Slide that X Moving cumulative to and science highlight and COVID life lead XX% and our of mid-XXs to CAGR growth -- is compared from revenue greater This of XXXX from rather growth space, year than XXXX midpoint We reported which have repositioning a 'XX mature overshoot good the period -- and are portfolio greater to typically revenue transformative significant an expected revenue percentage. not other grew companies in impressive to to tools the X which the now. over in fiscal the than guidance.

X we had organic over growth years, revenue Our revenue transformative those acquisitions. which growth, incidentally, remainder XX% was the organic and XX% cumulative reported cumulative about call

years the X. single-cell it highly next remarkable mass think -- growth and on and window to level very important pleased rather spec later, [indiscernible], launches but but very transformed tissue really summary. spectrometry So we're the mass immunopeptidomics, and really rather recent proteomics a flagship imaging which may new biological proteomics a even side, had sensitivity I multiomic system, very, enables timsTOF I consumable X company. If for X subcellular of with quick glycosylation. take and all that benchtop on Ultra launched timely takes I how better a I for proteins, opens and product. will is on very, we the and highlights the research. Moreover, It's a very very unique attention it the metabolites, talk launch colocalization your a on it ASMS popular multi-omic won't well instrument NeoFlex the to Bruker It's through fast received bullets, also Slide at side the be and very think uniquely we lipids,

solutions rate organic for and and exchange revenue revenue So our to portfolio. more in constant summary, Bruker growth market well above instruments significant growth across our even continues see

our spatial with biology, We diagnostics well expansion have automation market recent further addressable as into and lab M&A. accelerated portfolio molecular as transformation

beyond. With proven We years. review in culture that operational our will CFO, acquired turn profitable let over QX applying Bruker's and Herman, and and expansion process growth the margin the are recently fiscal year disciplined to me that, will who management confident outlook Gerald? next our call lead 'XX Gerald over excellence, in significant detail. more of entrepreneurialism X our Bruker businesses and to

increase Slide you, Thank revenue Bruker's first pleased an In million more organic growth BSI you, $X.XX starting of XXXX organic thank was the XXXX. On in EPS on and GAAP of XX.X% to posted revenue for second and to an increased We XXXX. reflects per Frank, $X.XX $X.XX quarter us second $X.XX of XXXX, and XXXX in of second quarter X.X% the from the second today. Bruker's financial $XXX X.X% non-GAAP to reported compared quarter about I'm performance X% of approximately basis, increase reported detail year-over-year. on half provide everyone, which of share, per joining EPS the for quarter a share XX. of we QX

operating headwinds basis margin operating $XXX We of XXXX as million. more by from margin cash non-GAAP decreased than equivalents points non-GAAP QX margins Our income organic and short-term strong operating gross and and acquisitions. with higher the our operating finished XX.X% cash, expansion approximately margin offset X.X% increased year-over-year was second to quarter XXX investments recent

NanoString offering. very through was the financing of Our $XXX billion financed we $X.X follow-on fixed second interest quarter acquisitions billion as and funding about franc with completed rates, program low a through of $X.X treasury active equity in debt ELITech and Swiss balance the million

volume in investments resulting to expenses. second the XXXX quarter, acquisition-related of well we quarter We were free paid our operating also the million, $X.X $XX.X cash of quarter incurred result generated million of of Capital the M&A $XX.X Project of million XXXX, outflow X.X second second in in the funded as XXXX. and million second quarter million in additional selected XXXX of in Accelerate of $XX investments the as the expenditures $XX quarter second quarter in We compared quarter. of XXXX. In compared expenditure a cash to capital of as the in

by revenue seasonally Compared Bruker's XXXX, as XXXX, was of cash earlier. QX second tends our has preclinical XX BioSpin the revenue the the our as X shows businesses. driven XXXX flow in reminder, organic Just a strength imaging quarters. Slide second range, to our to of reviewed quarter bridge have for mid-XX% quarter Frank software and QX the lowest up in

in in from organic no on XXXX, and and double-digit revenue the the and flat recognized organic molecular while in aftermarket. fluorescent advanced second growth the basis low in revenue x-ray strong of second X.X organic and the there percentage. gigahertz We revenue by XXXX. low Additionally, quarter softness Systems quarter Nano MALDI electron as grew in revenue revenue system in Biotyper XXXX of teens offset class in strong and quarter largely Americas strength percentage CER spectroscopy. had was growth aftermarket systems in microscopy. CALID revenue our Geographically in the in performance quarter solid mid-single we microscopy gigahertz was second BSI grew XXXX second double-digit with of systems delivered an the growth X, were in digits with

essentially Asia percentage European growth, year-over-year. flat all was had double-digit while Pacific revenue revenue low the

low QX mix P&L of digits shows to XXXX Non-GAAP our XX.X% XXXX QX our favorable basis region, For product up quarter pricing performance was XX EMEA XXXX XX.X% a select revenue second XX single in basis. non-GAAP of margin the and due from year-over-year. Slide on actions. gross increased points

outstanding an up and in Weighted For the average XXXX, XX.X%, item jurisdictional effective the about of modestly from QX discrete XXXX to second impacted basis were quarter May. $XXX X.X of quarter the at points tax of end diluted by mix XXXX, million impacted unfavorable our was of non-GAAP rate our by in second increase offering quarter. the XXX million, shares an follow-on shares

$X.XX Finally, of XX.X%, the of foreign the And to 'XX was a X.X% QX XXXX. up X.X%. or Non-GAAP of exchange XXXX half largely slide. Revenue added the results the top XX first the on bridge up drivers the drivers shows of quarter to for half as was explained second second our reflecting line, EPS for on P&L $XXX.X XXXX. Slide with of summarized for was of are X.X% X% the year-over-year XXXX quarter XX, of first already non-GAAP compared the XXXX. Slide similar while has Frank growth revenue half to covered first headwind. the Acquisitions organic million

the and of XX. half 'XX, lower down driven and to compared first 'XX, principally first million taxes $XX.X free expenses, of by the advances, had of million other acquisition timing to half profitability items. the of We Slide $XX.X in Turning cash outflow

Slide to now XX. Turning

closed now our to formal outlook, performance and NanoString we've acquisitions all XXXX NanoString and that in Now guidance. visibility included have we improved

approximately XXXX a range fiscal This estimates of from leads $X.XX XXXX. now to maintaining range of guidance XX%, assumes to for guidance headwind foreign and continue We up to updated up XX% revenue expect X% $X.XX X%. X% organic fiscal we to for billion expect XX% our and prior increasing X% acquisitions guidance our from XX%, outlook growth from currency to to year Our to of year revenue revenue about billion XX%. be to contribution now a of of of the reported prior in the

XX operating headwind than our of points organic in expect operating acquisitions we of by expansion, points and XXXX, XXX from margins greater offset more For than basis foreign greater to continue basis recent than exchange. margin

line, up flat year XXXX our year to slide, this rates On the significant XXXX. Despite have XXXX bottom foreign are EPS guidance the implies of updated recent fiscal fiscal the EPS we're or from tightening to been single-digit fiscal low guidance currency as year range non-GAAP XX, assumptions $X.XX for EPS non-GAAP our acquisitions, guidance June percentage dilution $X.XX. Other on listed ranges XXXX. from

Now year the third anticipate in a some Against prior comparable, the growth organic color of on quarter. third now strong quarter we revenue 'XX. mid-single-digit

to Against third the our the recent establish over each down my macroeconomic XXXX well revenue management in of growth finally, be and non-GAAP our we in EPS a it's actions solid drive up, growth next in to strengthen with margin EPS beyond. To I in costs and our businesses. And year-over-year, second EPS managing years quarter are Bruker second proactively the ability operating of quarter. remarkable colleagues, the up quarter. drive acquisitions. of XXXX risks, all quarter year-over-year operating operational fourth to performance X wrap expansion confirm organic organic geopolitical the across to process the excellence ongoing and reacceleration backdrop progressing margin meaningfully of Bruker but conditions very remain rapid of thanks expect work We our for that sequentially me mixed delivered are important confident of and over growth to integration expected

quarter Our that, to in now and you portion to of operator on market to the November. And with call progress turn begin over the the businesses Q&A continue updating I conditions, our execute forward the call. under well again look third to muted we

X for we you question time and reminder, a for limit and interest follow-up. that Operator? Bruker. questions, in your allow everyone you ask X to as yourself Just Thank transform to support

And [Operator with Leerink first Partners. come the Instructions]. Puneet question Souda will from

financial question. a then first So and maybe broader a just one

lower margin I think So same slightly margin expecting was [ in growth remained appreciate ] but the organic third half I lower. the year, op for the you the general, In quarter. guide were a

NanoString us speaking, And market? talk market, things can and what's out, higher as in there? weakness, concerns of and the broadly landing that or out pointed just in what maybe given your the Just hard in to drive expectation What's are for sort about lower? what your the that materialize you any could assumptions

moving all pieces. in, it's right? Well, many There's

for -- our cited instance, go of And full XX more that quarter. with that's right? that organically You've for the you assumptions Slide the into the implies on for operating do we our you -- if see profit revenue so by many and year, to year. up why the non-GAAP than them, our go this it's I XX don't EPS XX% mean, around bps. guidance But margin a that

So we R&D And FX, expected, of while our at maintaining core from business. good. mostly headwind M&A, progress a our bit XX% all bps OpEx about a in to XXX M&A., year, of little of That's about revenue. this make with as continue

comes probably China diagnostics that's NanoString, we macro market lithography I very the from together. we -- little than outside and it right have now, semiconductor growth, continued did do bit orders. good China, aca/gov demand growth on of science right tools nice highlight a have very and is up. business the in faster all a growth, biopharma that's solid yes, grows So life thing. metrology a a now. And mean, of at right, very had least how all, good including We

XX% the full looking the There That's pieces. year, right? this course, together, all still to revenue But X% that year. it things. of portfolio, growth our comes it's are and for of So the at And growth all many mixed. that's organic how X% beauty overall, XX% to more CER

mean the my can a in And take baked where that's both line help into you top the once us acquisitions a in are market, continue question. understand Bruker I good earnings Frank. and step helpful, back outperform segue broader in. can to if the That's Okay. and

I that are could I wanted just mean, on Slide of questions. emerge pointed sort think the that, see near-term to a think I you X, you elaborate you but if But from there some once out some, bit more I the the but strength market. instrumentation -- at you on outsized differentiation deliver growth concern and your and the the mean company, continue versus you in heavy instrumentation Bruker, peers is significantly to heavy are

So just continued help of us educate you're to the market overall a bit Bruker and well. in how positioned growth about on as in for the how think that and context the backlog

couple market your or our instruments with the biology proteomics where That's on protein-protein gets And or than we with structure. Yes, organically the year to every the positioning this cell XXX have allocated. differential multiomics for in right. year XX% that no in flat was fundamentally still or We're because differential it's the life over market. But revenue binding down of percent, with Bruker. bps is LS a the growth while year, is XX% tools we our obviously, aim this Yes, single perhaps interactions, much science -- not that cumulative if we repositioned. spatial And growth with outgrowing post-genomic average of of tools analytical higher longer funding XXX still it's at the indeed, It's traditional good. that well company anymore, for organic with hopefully very double-digit era terms organic.

and We're really a doing defensible. we're in bad well. still of environment, quite is clean research, in it's also industrial even weaker terms very really not us. Diagnostics tech for So

ELITech a that to medium-term within the now support just all -- Those this few Our clinical aspiration, new larger good drivers gets increased we plan over the demand are molecular the the and guidance market already but business year had Bruker to that piece our microbiology, next market and much -- outgrow or outgrow our integrated. being with years. organic our continue really growth well, not diagnostics

XXX on we'll that to bps. that expect XXX outgrow average, We

XX% market mean, semiconductor And and AI but a There of Nano more years. mean high-performance meaningful stock metrology, XX% We The AI of have it go clearly more and who to I the metrology there. little some it's and in it'll bit unique was for this next I our few be revenue, the to going maybe overshoot, tools is approach lithography. cares, group demand might right? semiconductor in real. is but X%

And an lot pretty company, extra in -- that. think benefit so we're that one of but had I large bonus from a that there's unique a not that's that, company also other some

to and So what we're so takes confusion. then anybody not peers belabor NanoString think company. greater it, really become ELITech the our the Chemsped they're We is I portfolio cause around on, it's the multiple now have as close I of doing. really pudding, parts is but that slight comparable confused, some confusion acquisitions. we well admittedly to as mean proof a else think anymore. evident. And isn't I we've peer, that for hope and And There but just really We a don't these differentiated clarity did in or the weren't clarity that with we

that look at and again hopefully performance through see look everyone at year, this acquisitions, core and can think I with now the it. people

that's there's nothing [ ]. now, I -- in course, revenue anyway, that Project recently. after accelerated growth Accelerate XXXX mean organic with don't new So in here double-digit transformation years of And to, with started of XXXX, X.X

we're year, adding well-timed intentionally. really this the transformed of that Now a acquisitions strategic company very lot

next question come Citi. with Donnelly from Patrick will The

somewhere think X XQ great below And down I certainly, a would X%, book-to-bill pin book-to-bill you of be could orders first was that front, the bit a helpful. would half orders, the side, range give any Frank, little I BSI great. sort if on then you maybe on said if few can X%, on the above trends [ order ] for be the you the little bit

the the for feel to implications as forward. backlog trying out and backdrop back Just here move we the

you again, frame could So XQ order if up would helpful. the be dynamic, that

All Fair the yes. enough, little bit, It's mid X.X% tighten in a up right. it range. Patrick.

much and pretty X halfway of sort X.X. So between

we because still X.X% book-to-bill So which last the good in second for had mid year orders China BSI, organically, was quarter. up

up So order BSI growth mid-single was still digits. organic

not about, from at So with is months, which write down along X nothing bad. home And now really sorry, so backlog, Xx -- to about that, X.X. but our

So down probably have coming instruments as there out get single XX% XX% now is than is it's these a ELITech, It more spatial little is we bit. up cell aftermarket. also consumables will that biology, consumables, and end

decent, the of China, take And there's probably some years fundamentally, instance, very have given in obviously there. year we funding buffering but in here our pieces. very, in an for portfolio metrology, up is with many, you and us. choppier clean year, fundamentally, backlog a the out important many of in some did strength of But with second and our just are and the markets have for aca/gov overall, weakness resilient. X and still quarter if Europe, of U.S. And up. semiconductor as it's So well future, orders the general post-genomic still have with for comp last weak driver moving well. really overall, But era us these roughly enough portfolio. these we then we tech normalization -- quite

earnings the I the just for the lot one from implied about just We our No, pieces, Gerald, you talk guess, level Can for of you get the a you. I setup. side. XXX know of guys at next maybe there. moving And about, confidence 'XX kind the [indiscernible] Yes. questions Day. that then year Analyst number

given number, the a the on you been stale you bit with the getting, focus then dilution, know if of a again in the on moving. remind margins, guidance, some of lot obviously, could moves I That's there. Puneet a how just there. And yen of guys NanoString uses been us question a this week certainly we've think, quickly think which I impact. the that's touched little -- I

So just refresh us on that.

to you. nice hear Patrick, from

too On sorry, the can't about 'XX, we talk offer much. in that February. We'll more

We haven't months of that moved we ago. outlook medium-term presented numbers off X our

about will generally So speaking, that. I think talk we more

strengthened yen, to people actually, the think as I relative end recently, just even know, On the the most dollar week. is this U.S.

-- that unfortunately, business years was size same not Japanese back. our our So it the is many

volume years back where has was impact critically market. us. There on it for an the So fundamentally, a to But important several important was unfortunately, overall have declined. for not it's much It's activity Bruker. Japan still time going

So time. in say the Japanese back see to hope I -- over the business bounce I would a

Yes. in semiconductor course, fantastic also first and are including our finally Rim. in the Maybe second color. is Taiwan the semiconductor U.S. bookings year-over-year. Korea amazing. half bit comes just of the of little a a investing growth Pacific then, quarter, lot of notably metrology. South mean, anecdotal And growth, in metrology, I other mean I from

very strong. of terms strong So less that's important us not now. right Japan growth indeed is in also It's orders. for and all

we it plus other issues. a have it currency together. some put Yes, that's But enough So to has headwind. tailwinds all

acquisitions I I I -- X of backlog, for Chemspeed, mentioned Chem backlog they a -- lot think lot a 'XX, think even of all I'm that probably the actually have enough execution.

X something owned revenue do. them. ingenious, this molecular less consumables know business This But not XX% well headcount, of that delighted we've now with that of seems is those to first placements if hope a and begenious this year. pull-through is it's like were which investing lab only think for for rate I what can X business, that the technically July, the with placement do owned X months know OpEx, at automation willing That's be So was and it we've placed, but of were for lot diagnostics we less these including I to months, we our that's next industry in do months year. QX, automation that I CapEx, revenue ahead to they in they

management be a good top really, but with even convinced. and and of pipeline grower a team with. by business arms year team. lot not damper NanoString that with back or nap macro-driven, driven together quickly. various next of -- is opportunity So will whatever Chapter but fired around very I'm rebuilding all doing that removed and solid that we on the in after the ra, ra and nice X up it's building NanoString a are and aspiration just to about concrete after the processes so XX not a months, I'm begin actually having year. molecular this we a of they're quite diagnostics And and our and obviously, taken team. That and ra lot a the a good very that team pipeline optimistic things have leadership running on And that's and rebuilding now injunctions by -- coming

Your next question with will JPMorgan. come from Vatnsdal Rachel

the to I on wanted Firstly, push just XQ guide.

You to China mentioned mentioned to customers that of orders where wait stimulus they you mid-single-digit just are to back funding. related you which as expect grow organic, also pocket started for see an you kind to XQ starting hold is little consensus a that on air below

a much to can So How break for as was XQ due in could dynamic, expect XQ China for us China bit? us unpack excluding in that organically grow the really China you it mid-single-digit well? to of and you out what guide you

Rachel. fair Yes, question,

So muted. was recovery that's organic QX be right, average year's evidence roughly And of that QX but average seeing too more growth. yes, will the growth might in indeed. fluctuations. digits above line, that that bit mid-single any saw a Yes, our but we're of little with just a QX U.S., in the step-up a below expecting biopharma [indiscernible] of you this QX was strong, course, be in of clear absence growth.

and referring digit, yes, growth, then what prudent it's That's think that than so the mid-single not trend year seems of organic QX the in somewhat for trend that [indiscernible] to. was from to full year QX I'm full fall weaker right? So terms

number out comp you looks XQ? from that guidance what high XQ single-digit organic in seeing into maybe implies budget XX% on through flush from closing about XQ of Can the Helpful. growth just It And a the dynamic walk last like us then year. you're implied. like really

it's ] your So And in and conversations [ budget customers? what how you with been that? those are trending are around assuming end flushing

of We're do Yes, company. much backlog. a doesn't -- our that of that. another fair use flush budget really type because question. not We don't we don't get It

more QX. I We're more you're right. business. for a looking of think turns Nonetheless, you strong lot have a flush you maybe have consumables fundamentally, when if budget

and So yes, the QX as we just going is and going dynamics. to expect for quarter good to and budget orders It's this be necessarily buildup in very simply as well. not continued strong orders and far backlog the as we flush can a tell, new orders us, of year, it's a it's be very QX --

all not it mid-single-digit actually this But already, QX, And bad. we kind QX, So we in acquisitions, year. acquisitions, QX that. think we're QX with somewhat QX track with sequential only not much, this year-over-year, good from improvement growth to Gerald be keeping of of up year. these explained then down watch now EPS of but of a sequential comfortable That's looks talk in about a sequentially to but And that sequential have I be course, be will QX, strong don't because QX -- of improvement. as will dynamic the

Your next Tycho from question come with Jefferies. Peterson will

help you for can bridge on quarter, $XX here, said M&A gap up over previously million? ELITech Chemspeed a and million the incremental $XXX the us million, $XX about Frank, the $XX I Nanostring think the step you year. million

that incremental Nanostring us maybe is little color. So just a or more give all step-up bit

answer. isn't remarkable. single comes lot answer there -- together pieces. pieces. answer. that's a of that just -- Quite this yes, It's of there It's honestly, the lot small small million a Tycho. chunk out it's question, the is isn't it's There The nothing It Good a it's -- $XX way.

I is view on... guess, your

$XX to It's are million. the better. small [indiscernible]. higher I'm evasive isn't one speak, There for just right? made is here. pieces there, going year, the no little there $XX thing that so a they And Many is million be What trending up saying is there only that to

how I thinking view of function then, about guess, the in vault steps you is kind on of post And kind of situation your U.S. in next Germany? And are IP the

No, there you know. Yes. there's don't that new nothing

still a some had saw new, time up press we in the we they done of no the ago Europe in rest lifted though nothing bonds. needed had a Even in to last -- Germany, to the the that And order release put course, put out invalidated We've injunction. of bond now lift been some you the injunction weeks So few that. new developments. had that Yes, patent ago.

or bigger the trials Europe be rulings additional And anywhere. to it's So possibly think And the in going like 'XX, would in U.S. 'XX. be year things the into is in no that, later of presently, that might then there or that there we get and I far injunction September in if be any

So on quiet that it's been front.

be good. may That

Yes.

no So news.

the year. the for last of just half one And -- one then back for the

BioSpin the about CALID Just kind of guidance? for year by we and half any of if Nano, color subsegment, more back BSI, think kind of the

see so. surprised I metrology a but the was than reporting. hand, strength yes, at of one that's had orders what feel 'XX -- crisp first any bit product bad, I not or maybe that and more I quite us recovery, or but biopharma, would Tycho, don't And companies -- the what in of was we a other semiconductor stronger group answers are looking on a you today, also we It's for predicted. line it's half thing with of now, have standout mean, to have the other really liked more

of it's So some acquisitions. it's -- the it's just yes, --

it's yes, I -- -- research product of rather particular is about revenue message really than of Its the diagnostics, X solid in industrial execution NMR, the to China Biotyper be strengthen with MALDI Of year. strength proteomics, for XX%. the only course, they're strengthen expect all we down here the line mean, portfolio full

biopharma down. expect be weaker to We

those recovery. very the with So good for guys perhaps year. this bad the and pretty is good and semiconductor order are all very rest nice a

too, Although course. Yes. there But deliver People to revenue so us want in too. a turn that's 'XX of the are good, long may we the 'XX. then times into lot lead growth that recovery not and strong of do semiconductor until

-- or line answers, or product non I strength of -- you and really one I it's of portfolio So message than X one strength is gave group resilience market. more the -- apologize. There's Tycho. one the the

Schenkel from Research. come next question Doug with Wolfe will The

through sure of update think couple you to that's you one, want secondly, on I next with you said, make of I for original we terms relative August. May just 'XX guidance make want on 'XX, through remain targets no going want for today, to ones you obviously, I here beginning puts sure different change plans but here we the I to year the like get I at are It to the anything cleanup a are outlined Just that there's point. based comfortable want in guidance sit year then of you're and questions. thinking guidance backlog aren't with case. And as to things the orders accelerating or Gerald, track that sit in sounds to working this your XX. tracking. on sure not takes, to just just of make But set how the for some confirm, EPS as at kind

for questions. It's Doug, Gerald. the thanks Yes,

cleanup the overall don't around change. significant the on I see any question performance, So

months has Frank X.X%. affecting dramatically. as backlog, versus It's to X about mentioned, existing down really came Our not

come We would have -- good, backlog I in We're see would strong organic revenue -- business to pulling be down. some growth we the actually happy already.

of some down interested As know, I'm in level. that moving really to you more a normalized

obstacles well as around see the different hoped. And or other expecting 'XX, in on roadblocks would specifically backlog. to way outlook to not that as I perspective coming outlook, to then related guidance laid 'XX medium-term It's respect we're anything for we won't down in don't for we but the on comment have a So the -- as the XX guidance see investor May out point from we with we earlier, medium-term webinar. on said our any

at as remains backlog be within within at there. all. will And outlook X level or yes, described, I months from maybe no more X segment. here now BSI a years more imply and the of maybe thereabouts it a changes normalized the Medium-term at

so So also as -- expected. that's you

hood but really bit genomic working traditional of cherry ourselves instruments with on positioned post So in track nice. more allocations strong yes, era pull-through, is under with little choppier semiconductor I mean, and year from to we've and just top. course, that that the very we're a a on where a really, the on portfolio that us the

follow-up. quick one And Okay.

stimulus the you some with of up in You market catch China due stalling to happen acknowledged guys. to I

enough of good June. at little for beginning You're the me with a to sit down bit

seeing like at that didn't this You seem were it weren't -- point. you

to in that of for quarter bars that, QX, some error Is lingers half that to the guess that back is, want year. the widened into confirm just end about things? just that is the right dynamic picked way right? that, the China seems this probably to you towards like I the it and if into up my account the and And think of So risk carried so, maybe

now tailwind. in provinces be as systems perhaps was it not takes in really mean but we in Completely. moving layers, orders or later are cycle taking year. is looking going -- the and to in that yes, opportunities many China, the high-end for may People are I big through and they this lengthening look pair aca/gov a sales is actually and makes 'XX. something probably And that has it that and more it's mean, especially to like and 'XX us. confirmed then perhaps moved It week a I that bigger making away. think right expect decision more beneficial This well. It's ago already, of few but still right became a just budget for BioSpin, think budgets sense. high-end been the said perhaps be longer. Or surprise a I their you're than fast will bigger splash but could spending thinking other months We We this not that just scrutiny as -- now. And rather the quite is effect way. QX stimulus, good, a NMR -- good, about with original particularly it well, exactly systems,

was may seems orders suggest, or muted half that especially may academia, these yes, larger So orders that lot come perhaps muted to 'XX. of second the in orders and come demand some or a in there and also in China

So correct. that's

thinking you're think it way, about that heard. I've right what the from exactly I Doug

I've Doug, is is also activity, heard orders. no there what are but there

have clarify lot to I that that at placed So orders a stage. that think important this there's clear of but to this is movement, related it's no got very

question. Time for more one

with will And our Waldman come Cleveland for from Josh Research. last question today

you. couple A for

total the growth segment normal the that uncertainties from range what what gets X% in comp company, in you end? a China. reflection I for you wider do Tycho's question, to any to end, half. than guess to to wider changes improvement guide the reiterated there's markets Any organic prior like low on range end? can high see the on get versus guess, year it market provide to of those believe. X% the then high second a pharma I First, Like for you end you And text the is I gets to outlook like need seems for by a the follow-up assumptions within to framework? And

Yes.

quickly expectations So little up it turns on at takes have the those China we the than exactly as in we didn't came into revenue. didn't were year. said, biopharma, may Semiconductor, we obviously, longer. sort stimulus expected, a know how as orders through. we 'XX, of almost but coming. -- [indiscernible] of wow, wow, less We beginning were bit see goes had It QX that we surprised segments,

that So not just seems to longer, didn't wave, this X a repeat itself. bolus. It be quarter bigger

them diagnostics drivers. smaller pleased acquired what upping automation, just China what in and this same, I'll I disease would infectious our them in new for not And and in surprise, franchise. least or MALDI automation, a expectations sure, lower that's doing a and for it's biopharma, from and keeping is and the others, yes, lab in us yet. for about else quite them still ping not guess, hearing them upping -- scientific although we at everything relatively So with the them semiconductor year. we're upping in business, Biotyper really organic metrology from existing software, we're and

dramatic, day, culprits would the all yesterday changes, wasn't uncertainty today. So and good good But happens that I a other and who biopharma, guys. To second would Street what Wall and some I the the 'XX, say. we mean, given I nothing Journal the say read knows incremental of China, half

that maybe revenue to in are of think QX to in of also addition optimistic this half I range. guidance, it's our that that would prudent fair about our forecast. it our think still X% to that model we're but bookings to not lower maybe the pretty in is and guidance guidance QX within And we we organic about be the -- X% maybe in

recovery environment delayed environment, think resilient, still and and a So China the correction terms down being yes, our is yes, macro helping I helping. But and the the or delayed biopharma recession, our are growth not I in pretty of exceptional not for perhaps this mean, year. we're about we're concern are being and

the spoke all? So environment you've going when I a probably but that's on we're X many ago, a little around as how gotten weaker months If right? macro help not incrementally we than was times. us. at Does see it seen what company, has just macro by

Frank. helps, for appreciate Ultra franchise on I follow-up, then you on could the And I more franchise, the comment then that how timsTOF for I thought my one I'd broadly, timsTOF. rollout curious And is guess that versus ask in in of I of don't broader or how was change any [indiscernible]. X Yes, you kind if going? that. medium-term mean there's kind the thinking in growth if about driver as wonder think wondered I CALID. it I I near the I outlook. called out you're

platform. then an bit important of for in X growth workflows, orders -- with with [indiscernible] for ago. Ultra amazing our significantly performance since very is plasma We've its and the other our other our timsTOF little position showed some competitive a improved was proteomics a proteomics but being not instance, the timsTOF year plasma slowed timsTOF Yes, when competitive up our instrument launch of models very a

in not I competitive now the honestly, in competitive driver So of competitive. terms year-over-year. we're a But and -- growth position, trend in revenue, better But think is bookings in quite position, big of think terms it's still I it's again. much

customers so all quite and that's timsTOF and doing And timsTOF. opportunities well really are order again.

question-and-answer Mr. for I Cosco Joe our closing back remarks. turn any ahead. go the over conference concludes would to session. to like Please This

with event a any you you with quarter. day. joining me looks speaking arrange an free good for Thank forward to reach us directly to leadership out follow-up, the meeting have third and Feel team today. during you Bruker's at to or to

presentation. The has attending for concluded. today's you now conference Thank

disconnect. now may You