Q2 2024 Bruker Corp Earnings Call

2024 financial outlook.

Frank locking: Now I'd like to turn the call over to brokers CEO Frank locking.

Frank Laukien: Thank you, Joe. Good morning, everyone, and thank you for joining us on today's second quarter 2024 earnings call. Our teams have delivered excellent revenue growth in the second quarter and a solid first half of 2024 despite soft market conditions. We continue to execute on our dual strategy of Project Accelerate 2.0 Portfolio Transformation and Operational Excellence, posting well above Market Organic Revenue Growth and even stronger Constant Exchange Rate or CER Revenue Growth.

Frank locking: Thank you Joe Good morning, everyone and thank you for joining us on today's second quarter 2024 earnings call.

Frank Laukien: We see mostly good demand for our differentiated scientific instruments and life science solutions, but we acknowledge that biopharma demand has remained weak, and in China, customers appear to delay some purchase decisions into the second half of the year while they apply for more funding from the announced stimulus package. We now expect mid single-digit organic revenue growth in the third quarter of 2024. And we maintain our guidance of full-year organic revenue growth in the range of 5% to 7%.

Speaker Change: Our teams have delivered excellent revenue growth in the second quarter and a solid first half of 2024, despite soft market conditions.

Frank locking: We continue to execute on our dual strategy of project accelerate to Dot O portfolio transformation and operational excellence, posting well above market organic revenue growth and even stronger constant exchange rate or CER revenue growth.

Speaker Change: We see mostly good demand for our differentiated scientific instruments in life Science solutions, but we acknowledge that biopharma demand has remained weak and in China customers appeared to delay some purchase decisions into the second half of the year, while they apply for more funding from the announced stimulus pack.

Speaker Change: <unk>.

Speaker Change: We now expect mid single digit organic revenue growth in the third quarter of 2024, and we maintain our guidance of full year organic revenue growth in the range of 5% to 7%.

Frank Laukien: Our well-above organic growth is driven by Bruker's differentiated innovation engine, as well as our multi-year transformation towards fundamentally favorable secular trends for our unique enabling tools for the post-genomic era. We are also benefiting from strong orders in semiconductor metrology in support of high-performance computing for the AI megatrend, with strength and orders in Pacific Rim countries and North America. On May 17th, we hosted an investor webinar in which we provided in-depth looks into the three well-timed strategic acquisitions that we completed in the first half of 2024.

Frank Laukien: These major acquisitions further accelerate our portfolio transformation and addressable market expansion into spatial biology, molecular diagnostics, as well as into laboratory automation and digitization. So far, ChemSpeed is overperforming our expectations, and the performance of Elitech and NanoString is reassuringly very much in line with our initial expectations.

Frank Laukien: ChemSpeed is doing quite well, as the industry appears to favor CapEx investments in productivity via R&D or QC lab automation and digitization, even at times when the industry, including pharma, tries to reduce headcount and OpEx. Moreover, we're very pleased with our Elitech sample to answer molecular diagnostics business, where we have added excellent new leadership teams in Italy and the U.S. for our combined Bruker molecular diagnostics business that we are now integrating with our previous molecular diagnostics business in Germany to achieve additional synergies.

Frank Laukien: LHEC Growth in 2024, for the full year, including the periods when we didn't own it, appears to be on track for mid-single-digit to high-single-digit revenue growth, and we are delighted with ahead-of-plan placements of our InGenius and BeGenius sample-to-answer molecular diagnostics platforms in the first three months, May through July, which is ahead of our expectations and In general, molecular diagnostics is one of the market bright spots at the moment, so the timing of our ELITEC acquisition seems to be very good.

Frank Laukien: Most importantly, perhaps from an investor perspective, I would like to take a moment to provide additional updates on our NanoString business, which we acquired in early May. I am pleased to report that after exactly three months today of running the nanostring business, Bruker already has the improved visibility to fully incorporate nanostring into our formal guidance for fiscal year 24 now, rather than in 2025 as contemplated previously during our May 17th investor webinar.

Frank Laukien: We continue to anticipate about $10 million per month for NanoString revenue run rate for fiscal year 2024, and we expect a solid rebound and significant step up in 2025 on margin improvements for NanoString. As you may recall, the previous NanoString public company had already taken very considerable cost actions in the fourth quarter of 23 and then again in the first quarter of 24. Moreover, Bruker did not acquire the public entity with its cost overhead, but we acquired the nanostring business in a lean assets deal. This will benefit us in the second half of 2024.

Frank Laukien: By the end of 2024 and into 2017, we expect to also see the benefits of multiple additional cost actions, such as facility consolidation, sourcing of Cosmics Production, very meaningful cloud software savings, and many other growth and cost benefits of our operational excellence drive at NanoString. We expect financial benefits in 2025 and beyond. Finally, we have also taken significant cost actions across other areas of Bruker in order to offset, in part, some of the initial nanostring margin and EPS dilution.

Speaker Change: <unk> meaningful cloud software savings and many other growth and cost benefits of our operational excellence drive at nano strength, we expect the financial benefits in 2025 and beyond.

Speaker Change: Finally, we have also taken significant cost actions across other areas of broker in order to offset in part some of the initial nano straighten our margin and EPS dilution.

Frank Laukien: I was just in Seattle at NanoString recently, and I'm very pleased to report that our Bruker Nano group has already put in place an aligned, lean, and highly motivated NanoString management team, applying our Bruker management process to re-accelerate innovation and growth. At the same time, we are advancing operational excellence for cost of goods sold and OPEX reduction to drive nanostring margin improvement. Altogether, I'm really quite optimistic that the NanoString acquisition will turn out to be strategically and financially excellent and a high ROIC investment for Bruker. Now getting into the financial weeds, and turning to slide four.

Speaker Change: I was just in Seattle at <unk> recently, and I am very pleased to report that our broker nano group has already put in place and aligned lean and highly motivated nano string management team applying our broker management process to Reaccelerate innovation and growth.

Speaker Change: At the same time, we are advancing operational excellence for our cost of goods sold and Opex reduction to drive nano string margin improvements.

Speaker Change: Altogether, I'm really quite optimistic that the nano stirring acquisition will turn out to be strategically and financially excellent and a high ROIC investment for broker.

Frank Laukien: In the second quarter of 2024, Bruker delivered a very good growth quarter as our innovative products remained resilient despite choppier conditions in certain markets. Bruker's second quarter 24 reported revenues increased 17.4% to $800.7 million, which included a currency headwind of 1.1%. On an organic basis, revenues increased 7.4%, which included 8.6% organic revenue, organic revenue growth in BSI, and a minus 2.8% organic decline in our best segment net of intercompany elimination. Revenue growth from acquisitions was 11.1%, which implies constant exchange rate or CER growth of 18.5% year over year in the second quarter. Our second quarter 24 non-GAAP margin was 13.8%, a decrease of minus 150 bps year-over-year.

Frank Laukien: A significant organic operating margin expansion was more than offset by the expected initial headwinds from recent acquisitions, as explained in our investor webinar in mid-May. For the second quarter of 24, Bruker reported diluted EPS of $0.05 per share compared to $0.39 reported in the second quarter of 23. On a non-GAAP basis, second quarter, 24 diluted EPS was 52 cents, up 4% from $0.50 in the second quarter of 2023. Gerald will discuss the drivers for margins and EPS later in more detail. Moving to the first half, 24 performance on slide five.

Frank Laukien: You can see Bruker's solid performance and execution in the first half of 2024, with organic revenue growth of 4.5% while non-GAAP EPS was down minus 8.7%, as expected due to our transformative acquisition. More specifically, our first half of 2024 revenues increased by 11.4% to $1.52 billion. First half organic revenue growth consisted of 4.2% organic growth in scientific instruments and 7.3% organic growth at best, net of intercompany elimination. First half 24 BSI book to bill ratio was below 1, but well above 0.9.

Frank Laukien: We were able to buffer this with our significant backlog as we prepare for a more extended period, without a robust biopharma recovery yet or the immediate benefits of a Chinese stimulus package, which we now expect to benefit us in 2025 and beyond. Our first half 2024 non-GAAP gross margins and operating margin and GAAP and non-GAAP EPS performance are all summarized on slide, excuse me, slide five. Please turn to slides 6 and 7 now, where we highlight the first half 24 performance of our three scientific instrument groups and of our best segment, all on a constant currency and year-over-year basis.

Frank Laukien: In the first half of 2024, Biospin Group revenue was about $400 million and grew at a high teens percentage rate. There was one gigahertz class NMR system in revenue in the second quarter of 2024, and we do expect two more gigahertz class NMRs in revenue in the second half of 2024.

Frank Laukien: In the first half of 2024, Biospin saw growth across academic, government, and industrial research markets, as well as in its integrated data solutions division for biopharma process analytical technologies and its vendor-agnostic Sci-Y scientific software platform. For the first half of 24, Calit Group had revenue growth of $494 million and increased by a high single-digit percentage, with growth in the optics, molecular spectroscopy, and microscopy business, as well as in microbiology and infectious disease, driven by the Maldi Biotyper franchise, and finally, as well, by the addition of the newly acquired Elitech molecular diagnostics business that we closed at the end of April. In the second quarter at ASMS, we launched two exciting new mass spectrometers, and I'll come back to that on a separate slide. Please turn to slide seven now.

Frank Laukien: For the first half of 2024, Bruker Nano revenue was $493 million and grew at a mid-teens percentage rate, with strong revenue growth in ECAGov, academic government, and industrial research markets. We also saw solid growth contributions from our recently acquired Bruker Cellular Analysis, the former Phenomex, and the recently acquired NanoStringBiz. Our advanced x-ray and analytics tools businesses delivered strong revenue growth in the first half, while life science fluorescence microscopy revenues were. Finally, First Half 2024 Best Revenues grew in the high single digits net of intercompany eliminations, driven by growth in big science and fusion research projects, as well as our RI, EUV Technologies for OEM Semiconductor Lithography Tools. This is different from metrology.

Frank Laukien: These are semiconductor lithography tools, also in support of AI. Right, moving to slides 8 and 9. We, uh...

Frank Laukien: Highlight the transformative growth and portfolio repositioning that, over a four-year period, are expected to lead to an impressive cumulative reported revenue growth of greater than 70 percent and greater than 14% CAGR from 2020 from fiscal year 2020 to the midpoint of our 24 guidance. This is rather good compared to other mature companies in the life science tool space, which did not have significant revenue, COVID revenue overshoot, and which typically grew in the mid 20s percent.

Speaker Change: This is rather good compared to other mature companies in the life science tool space, which did not have significant revenue COVID-19 revenue over shoot and which typically grew in the mid <unk> percentage.

Frank Laukien: Our 70% cumulative reported revenue growth, which we call transformative over those four years, incidentally, had about 58% cumulative organic revenue growth, and the remainder was acquisition. So we're rather pleased and I think it highlights how four years later, Bruker is really a transformed fast growth company. If I could take your attention to slide 9, it's a quick summary.

Speaker Change: Our 70% cumulative reported revenue growth, which we call transformative over those four years incidentally had about 58% organic revenue cumulative organic revenue growth and the remainder was acquisitions. So we are rather pleased and I think it highlights how four years later.

Speaker Change: <unk> is really a transformed fast growth company.

Speaker Change: If I may take your attention to slide nine it's a quick summary, I won't talk through all the bullets, but we had rather important launches on the consumable side, but also in the mass spectrometry instruments slide at the recent ASML with the flagship Teamstaff altra to launch that takes sensitivity.

Frank Laukien: I won't talk through all the bullets, but we had rather important launches on the consumable side, but also on the mass spectrometry instrument side, with the flagship TIMSTOP Ultra 2 launch that takes sensitivity to the next level for even better single cell proteomics and immunopeptidomics, and it opens a new window on subcellular proteomics. Very remarkable and highly, very timely for biological research. Moreover, we launched a multi-omics mass spect imaging benchtop system, the NeoFlex Maldi-Tof, which I think will be very, very well received, and it uniquely enables multi-omics colocalization in tissue of proteins, lipids, metabolites, and glycosylation.

Speaker Change: To the next level for even better single cell proteomics, and immuno pet did own mix and it opens a new window on sub cellular proteomics very remarkable and highly very timely for biological research. Moreover, we launched a multi ohmic mass spec imaging bench top system the <unk>.

Frank Laukien: It's really very, very popular and a very unique product. So, in summary, Bruker continues to see well above market organic revenue growth and even more significant constant exchange rate private revenue growth for our instruments and solutions across our portfolio. We have further accelerated our portfolio transformation and addressable market expansion into spatial biology, molecular diagnostics, as well as lab automation with recent eMNA. We are confident that applying our proven Bruker management process and culture of disciplined entrepreneurialism will lead to operational excellence.

Frank Laukien: Profitable growth and significant margin expansion in our recently acquired businesses over the next three years and beyond. With that, let me turn the call over to our CFO, Gerald Herman, who will review Bruker's Q2 and Fiscal Year 24 Outlook in more detail. Gerald. Thank you, Frank.

Gerald Herman: Thank you, Frank, and thank you, everyone, for joining us today. I'm pleased to provide more detail on Bruker's second quarter and first half 2024 financial performance, starting on slide 11. In the second quarter of 2024, Bruker's reported revenue increased 17.4% to approximately $801 million, which reflects an organic revenue increase of 7.4% and BSI organic growth of 8.6% all year over year. We reported gap EPS of about five cents per share compared to 39 cents in the second quarter of 2023.

Gerald Herman: On an on-gap basis, Q2 2020 EPS was $0.52 per share, an increase of 4% from the $0.50 we posted in the second quarter of 2023. Our Q2 2024 NIGAP operating income increased 6.3%, and NIGAP operating margin decreased 150 basis points year-over-year to 13.8%, as higher gross margins and strong organic operating margin expansion was more than offset by operating margin headwinds from our recent acquisition. We also funded selected Project Accelerate 2.0 investments as well as capital expenditures in the quarter. Just as a reminder, Bruker's second quarter seasonally tends to have the lowest Additionally, we had one 1.2 gigahertz system in the second quarter of 2024 revenue, while there were no gigahertz cloud systems recognized in revenue in the second quarter of 2023.

Operator: Slide 13 shows our Q2 2024 P&L performance on a non-GAAP basis. Non-GAAP gross margin of 51.3% increased 40 basis points from 50.9% in the second quarter of 2023 due to favorable product mix and select pricing actions. Weighted average diluted shares outstanding in the second quarter of 2024 were $148 million, an increase of about $0.3 million shares from Q2 of 2023, modestly impacted by our follow-on offering at the end of May.

Operator: Finally, Q2 2024 non-GAAP EPS of 52 cents was up 4% compared to the second quarter of 2023. Slide 14 shows the Year-over-Year Revenue Bridge for the first half of 2024. Our outlook for fiscal year 2024 now assumes increasing our revenue estimates to a range of $3.38 billion to $3.44 billion and maintaining organic revenue guidance of 5% to 7% for fiscal year 2024. Despite significant EPS dilution from the recent acquisitions, this guidance implies non-GAAP EPS flat or up a low single-digit percentage from fiscal year 2023.

Speaker Change: Slide 14 shows the year over year revenue bridge for the first half of 2024.

Speaker Change: Revenue was up $155 $2 million or 11, 4%, reflecting organic growth of four 5%.

Speaker Change: Acquisitions added seven 4% to our top line, while foreign exchange was a 0.5% headwind and Frank has already covered the drivers for the first half of 2024.

Speaker Change: non-GAAP P&L results for the first half of 2024 are summarized on slide 15, with the drivers largely similar to the second quarter of 'twenty four as explained on the slide.

Speaker Change: Turning to slide 16, we had $24 $7 million of free cash outflow in the first half of 'twenty four down $76 $7 million compared to the first half of 'twenty, three driven principally by acquisition expenses lower profitability and the timing of advances.

Speaker Change: Taxes and other items.

Speaker Change: Turning now to slide 18, now that we have improved visibility to nano stirring performance and outlook. We've now included nano string and all closed acquisitions in our formal 2020 for guidance.

Operator: Other guidance assumptions are listed on the slide. Our fiscal year 2024 ranges have been updated for foreign currency rates as of June 30, 2024. And with that, I now turn the call over to the operator to begin the Q&A portion of the call. Just as a reminder, to allow everyone time for questions, we ask that you limit yourself to one question and one follow-up.

Puneet Souda: And the first question will come from Puneet Souda with Layerink Partners. Please go ahead.

Puneet Souda: Hi Frank and Gerald, thanks for taking my question. So maybe just a financial one first and then a broader question.

Puneet Souda: So, you know, I appreciate the organic growth guide remained the same for the year, but off-margin was, you know, slightly lower. And Gerald, I think you were expecting a lower off-margin in the third quarter. Just maybe talk to us about what's your expectation there and what could drive that higher or lower? What are your assumptions for Manor String and any weakness, as you pointed out in the market, just broadly speaking, given sort of the hard landing concerns and whatever, you know, things that could materialize in the market.

Frank Laukien: For instance, on the operating profit margin, that implies that it's around 16% for the year.

Speaker Change: <unk> broker can continue to outperform the market both on the top line and then earnings once the acquisitions are baked in I think there is there are some sort of near term questions. But once you emerged from that I mean, I think you pointed out that on the slide eight some but just wanted to see if you could elaborate a bit more than the strength.

Speaker Change: And the differentiation that broker I mean, your heavy instrumentation heavy company, but you continue to deliver significantly outsized growth versus your peers and instrumentation is the concern in the market. So.

Speaker Change: Just help us educate a bit on how you are positioned in the market and overall.

Speaker Change: <unk> continued growth and how to think about that for broker in context of the backlog as well. Thank you.

Speaker Change: Yeah, right, yes of that 70% cumulative growth well over 55% was organic and indeed, while this year. It is no longer double digit organic revenue growth at broker, it's still very good.

Frank Laukien: You know, if the LS tools market this year organically is flat, or perhaps down a couple of percent, obviously, the differential is still much higher than the two to 300 bits differential that we have in our that we aim for, on average, or hopefully every year, in terms of outgrowing the market. But that's because we fundamentally reposition ourselves, you know; we're not your traditional life science tools or analytical instruments company anymore. Our positioning for the post-genomic era, with spatial biology, with single cells, with proteomics, with multiomics, with protein-protein interactions, binding structure, that's where the funding gets allocated.

Alex: Alex though if the Ellis tools market. This year organically is flat or perhaps down a couple of percent. Obviously the differential is still much higher than the two to 300 bps differential that we have in our that we aim for on average are hopefully every year in terms of outgrowing the market well, that's because we fundamentally.

Speaker Change: Mentally repositions we're not.

Speaker Change: We're not your traditional life science tools, our analytical instruments company anymore.

Speaker Change: Positioning for the post genomic era with spatial biology with single cell with proteomics with multi omics with protein protein interactions binding structure.

Speaker Change: Thats, where the funding gets allocated so even in a weaker environment, we're still doing quite well. We're also really in terms of Cleantech and industrial research, it's really not that for us.

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

Speaker Change: Diagnostics is very defensible, our clinical microbiology, our new or much increased molecular diagnostics business.

Frank Laukien: Our clinical microbiology, our new or much increased molecular diagnostics business, with Elitech being the larger piece, and we had a bit within Bruker already that gets integrated now. Those are all good demand drivers that support our organic growth guidance this year and our medium-term, well, not just aspiration, but really plan to outgrow the market, continue to outgrow the market over the next few years. We expect that, on average, we'll outgrow that range of 200 to 300 bits.

Speaker Change: With <unk> being the larger piece and we had a bid within broker already that gets now integrated those are all good demand drivers that support our.

Speaker Change: Organic growth guidance this year and our medium term.

Speaker Change: <unk> not just aspiration, but really plan to outgrow the market continue to outgrow the market over the next few years, we expect that on average will outgrow that two to 300 bps. We have this more and more meaningful semiconductor metrology a little bit of lithography I mean does it was 8% of revenue, but it's going to clearly approach.

Frank Laukien: We have this more and more meaningful semiconductor metrology, a little bit of lithography. I mean, it was 8% of revenue, but it's going to clearly approach 10%, and maybe it'll go to 15% in the next few years. And I mean, AI is real, you know, there might be some stock market overshoot, but who cares, right? The AI and high performance demand for the unique semiconductor metrology tools in our nano group is there.

Speaker Change: 10%, then maybe we'll go to 15% in the next few years.

Speaker Change: And I mean, AI is real there might be some stock market overshoot, but who cares right the AI and high performance demand for the unique semiconductor metrology tools and our nano group is there.

Frank Laukien: And so that's an extra bonus that, you know, not a lot of companies, I think there's one other company, a pretty large company, that also has some benefit from that. But we're unique in that. So our portfolio is really, it's really not comparable to anybody else anymore. There isn't a close peer; there are peers for parts of what we're doing.

Speaker Change: And so that's an extra bonus that.

Speaker Change: Not a lot I think there is one other company for the large company that also had some benefit from that but we're unique in that our portfolio is really.

Speaker Change: It's really not comparable to anybody else anymore, there isn't that close peer their peers for parts of what we're doing.

Frank Laukien: And then we've really just become a really differentiated company. And I think the proof is in the pudding, but I don't mean to belabor it. I think it's evident. We hope that the clarity or the greater clarity that we now have around NanoString, as well as Elitech and ChemSpeed and so on, will take that slight confusion. We weren't confused, but we did cause some confusion, admittedly, with these multiple acquisitions. I think people can now see through that and look at the performance again this year, core and with acquisitions, however you want to look at it. So anyway, I don't mean to.

Speaker Change: And then we've really just become a really differentiated company and I think the proof is in the pudding, but I don't mean to belabor. It I think I think I think it's evident we hope that the clarity or the greater clarity that we now have around bandwidth string as well as latex and <unk> speed and so on.

Speaker Change: Sure.

Speaker Change: Takes that slight confusion, we werent confused but we did cause some confusion admittedly with these multiple acquisitions I think people hopefully cannot see through that and look at the performance again this year core and with acquisitions hiring you want to look at it so anyway I don't mean to that so that's up.

Frank Laukien: There's nothing new here. That transformation started with Project Accelerate in 2017, and it was accelerated with 2.0 in 2000. And now, of course, after three years of double-digit organic revenue growth recently, now this year, we're adding a lot of well-timed strategic acquisitions that really transform the company very intentionally.

Speaker Change: There's nothing new here that transformation started with project accelerate in 2017 accelerated with <unk> in 2000, and now of course after three years of double digit organic revenue growth recently now this year, we're adding a lot of well time strategic.

Speaker Change: Positions that really transformed the company very intentionally.

Puneet Souda: That's great. It's super helpful. Thanks for the presentation.

Speaker Change: That's great Super helpful. Thank.

Frank locking: For perspective Frank.

puneet: Thank you puneet.

Patrick Donnelly: Puneet Souda The next question will come from Patrick Donnelly with Citi, please go ahead.

Frank locking: Alright.

Frank locking: The next question will come from Patrick Donnelly with Citi. Please go ahead.

Patrick Donnelly: Hey guys, thank you for taking the questions. Frank, maybe on the BSI side, I think you said the first half book to bill was somewhere above nine, a little bit below one. Can I pin you down a little bit on the 2Q trends on the order front, you know, bookability is great, and then certainly if orders, you know, if you could give any sort of growth range for the 2Q orders, that'd be helpful, just trying to feel out the back, the backdrop here, and the implications for backlog as we move forward. So again, if you could frame up the 2Q order dynamic, that would be All right, tighten it up.

Patrick Donnelly: Hey, guys. Thank you for taking the questions.

Frank locking: Frank maybe on the BSI side I think you said the first half book to Bill was somewhere about nine a little bit below one.

Speaker Change: When you're down a little bit more on the <unk> trends on the order book.

Speaker Change: Book to Bill would be great and uncertainty.

Frank Laukien: All right, tighten it up a little bit, Patrick. Fair enough, yeah. It's in the mid 0.9 range, so pretty much halfway between 1 and 0.9, so mid 0.9 book to bill for BSI. Up organically because we still had good Chinese orders last year in the second quarter, so BSI organic order growth was still up mid single digits. So, you know, nothing to write home about, but really not so bad

Frank Laukien: And, you know, that along with our backlog, which is now at about seven times, points, seven months or eight months down from seven and a half, so it's coming down a little bit. It'll probably also end up, now that we have Elitech, which is, you know, 80% consumable. Spatial biology single cell is, as these instruments get out there, more than 50% consumables and aftermarket. So in the future, we probably still have two years of roughly backlog normalization, buffering, these choppier general markets, and then just fundamentally, our orders are, are decent given, you know, and we have enough of a port in our portfolio to support a post-genomic era with some of these clean tech and semiconductor metrology. We, we still have strength in the portfolio.

Frank Laukien: And fundamentally, you know, if you take out China, ACAGOV is up for us as well, obviously an important driver for us. And there's some weakness in US funding here and there, but overall, it's up. Europe, for instance, did really quite well in the second quarter with a weak comp last year, but many, many moving pieces, but overall, very, very resilient.

Patrick Donnelly: Yeah, no, that'd probably be from our side. Yeah. And then Gerald, maybe one for you.

Gerald Herman: You know, we get a lot of questions just about the 25 setup. I know you guys kind of implied the 310 earnings number for next year at analyst day. Can you just talk about, I guess, the moving pieces, the confidence level there? I think there's a lot of focus on the nanostring dilution and the margins, which again, for me, I touched on. And then, you know, just if you could remind us of the yen impact.

Gerald Herman: You know, that's been a question we've been getting, obviously, this week with some of the moves there. I know you guys, the guidance, I think, uses a little bit of a stale number, certainly given how quickly that's moving. So just refresh us on that would be helpful. Thank you.

Gerald Herman: Patrick, nice to hear from you. On the 25, sorry, we can't offer too much. We'll talk more about that in February. Meanwhile, we haven't moved off of the medium-term outlook numbers that we presented two months ago. So, generally speaking, we will talk more about that. On the yen, as I think most people know, the yen has strengthened relative to the U.S. dollar recently, actually even just this week. So unfortunately, our Japanese business is not the same size that it was many years ago, so fundamentally, it's not going to have much impact on Bruker. There was a time several years ago when it was critically important for us.

Gerald Herman: It's still an important market, but unfortunately, the overall volume activity for Japan has declined. So I would say, hope to see a bounce back in Japanese business over time. Maybe a little bit of anecdotal color.

Frank Laukien: I mean, a lot of our growth, including semiconductor metrology, fantastic bookings growth in the second quarter and also in the first half, year over year, comes from other Pacific Rim countries. I mean, notably, South Korea and Taiwan are just amazing. And then, of course, the U.S. is finally investing in semiconductor metrology, so that's all very strong. Japan is indeed less important for us right now. It's also not very strong in terms of growth and order.

Frank Laukien: So plus, it has some currency issues. Yeah, that's a headwind, you know, but we have enough other tailwinds to put it all together. I think that Chem, I'm actually, I think all three acquisitions that I mentioned, ChemSpeed,

Speaker Change: We can do with less opex less head count well placed as molecular diagnostics business I was delighted we were.

Speaker Change: At our placement rate for the first three months I know, it's only three months that we've owned them. This is now including July which I know technically is in Q3, but the placements for these.

Speaker Change: In genius <unk> genius for those three months that we've owned it.

Speaker Change: Were something like.

Speaker Change: 20% ahead of what we hope to do that is not a lot of revenue this year, but thats pull through of consumables revenue next year so that.

Speaker Change: That's on top of a solid molecular diagnostics business to begin with.

Speaker Change: And I'm actually quite optimistic about nano string having a nice you know.

Speaker Change: Snapback or whatever and not macro driven but but driven by you know obviously, it's taken a damper. This year. After the chapter 11 in the various by now all removed injunctions and so on and rebuilding that team that.

Speaker Change: That team is coming together quickly and really even after three months, we have a we have our arms around that we were running with very good management processes in a very fired up leadership team with a lot of not just aspiration in RA, but a lot of concrete pipeline and opportunity building and things in the pipe.

Speaker Change: Blind that theyre doing and rebuilding the team nano stream will be a good grower next year I'm convinced.

Speaker Change: Very helpful. Thank you guys.

Rachel Vansdale: The next question will come from Rachel Vansdale of J.P. Morgan. Please go ahead.

Speaker Change: The next question will come from Rachel Vince now with J P. Morgan. Please go ahead.

Rachel Vince: Perfect. Good morning, guys. Thanks, so much for taking my questions. Firstly I just wanted to question on the <unk> Guide you mentioned that you expect <unk> to grow mid single digit organic which is a little below consensus. You also mentioned that you started to see an air pocket related to Chinese stimulus, where customers are starting capital backlog orders as they just wait for funding.

Speaker Change: Could you talk about mid single digit guide for us about how much of it was really due to the China dynamic can you breakout for us what you expect to grow organically in China, excluding China and <unk> as well.

Speaker Change: Yes Fair question Rachel. So so you saw that our Q1 was below average growth Q2 was above this year's average growth Q3 will be more in line right with roughly the organic growth that we're expecting.

Speaker Change: Mid single digits indeed.

Speaker Change: Yeah, little weak muted China orders in Q2 for sure I wouldn't call. It an air pocket, that's too strong, but muted and of course absence of <unk>.

Speaker Change: Clear evidence of any biopharma recovery seeing a little bit of a step up in the U S, but that might just be fluctuations.

Speaker Change: So yes, so that seems prudent then for Q3 to think that it's mid single digits somewhat you know not not.

Speaker Change: Not not far from the full year trend, whereas Q2 was better than the full year trend in Q1 was weaker than the full year trend in terms of organic growth rate, that's what I'm referring to.

Speaker Change: Okay.

Speaker Change: Helpful. And then maybe just closing that out on the <unk> implies can you walk us through what you're assuming from a budget flush dynamic in the <unk>. It looks like guidance really implies like a high single digit organic growth number in <unk> October 16% comp from last year or so how are those conversations.

Speaker Change: Patients around year end budget question, you must been trending with customers and what are you assuming in that.

Speaker Change: Yes. Another fair question, we're not a budget flush type of company, we don't get we don't use that it doesn't really do that much because of our backlog I think budget flush may be more if you have more turns you know when you have a lot of consumables business. Nonetheless fundamentally youre right were looking for a strong Q4.

Speaker Change: So, yes, Q4 is going to be.

Speaker Change: As far as we can tell <unk> going to be a very strong quarter for us and it's just not necessarily the budget flush dynamics, it's simply the buildup of orders and backlog and new orders this year.

Speaker Change: And we expect continued good orders in Q4 as well so Q4, it looks looks to be strong in Q3, not bad, but I think with a mid single digit growth in Q3, we are comfortable with that and of course because of the acquisitions as Gerald explained already Q3, EPS will be down.

Speaker Change: Year over year, but up sequentially from Q2. This year, that's kind of normally we don't talk about sequential much but now that we have all these acquisitions actually keeping track of Q3 sequential improvements and then Q4 sequential improvements will be somewhat of a good dynamic to watch this year.

Rachel Vince: Okay. Thanks Rachel.

Speaker Change: The next question will come from Tycho Peterson with Jefferies. Please go ahead.

Tycho Peterson: Hey, Thanks, Frank can you help us bridge the gap on the M&A step up here the incremental $90 million I think you said Nana Frank previously 80 million Kim speed about 10 million a quarter and over $150 million for the year. So is that incremental step up all demonstrating or maybe just give us a little more color.

Tycho: Good question Tycho.

Frank Laukien: You know, it's a lot of small pieces. But honestly, there isn't the 10 million-pound chunk out there that it's, it's, it's a lot of small pieces.

Frank locking: It's a lot of small pieces quite honestly there is in the 10 million chunk out there that.

Speaker Change: It's a lot of small pieces there isn't a single answer.

Frank Laukien: There isn't a single answer. It's "Yep, that's the answer." The answer is that it's nothing remarkable. It just comes together.

Speaker Change: Yes, that's the answer the answer is it's nothing remarkable it just comes together this way.

Speaker Change: I guess is your view on its own.

Speaker Change: It's only $10, it's only $10 million higher for the year right.

Speaker Change: And there is investment drivers, what I am saying I don't mean to be evasive here or there just isn't any no. There there so to speak there isn't the one thing that.

Frank Laukien: That made up the 10 million, many, many small pieces.

Speaker Change: That made up the $10 million many many small pieces.

Speaker Change: Trending a little better.

Speaker Change: And then I guess is your view on the kind of IP situation evolve post the injunction.

Speaker Change: In Germany, and how are you thinking about kind of next steps.

Speaker Change: No theres nothing Theres nothing new there that you don't know so no nothing new no new developments, yes, you saw the last press release, a few weeks ago that we had not put out some bond even though we had invalidated that patent in Germany, we still need to put up a bond in order to lift in <unk>.

Speaker Change: <unk>, we've done that and of course, the injunction had been listed in the rest of Europe. Some time ago. So presently there is no injunction anywhere.

Speaker Change: <unk>.

Speaker Change: I think it's going to be September or later in the year that there might be additional rulings in Europe or in the U S. And then any of the bigger lid trials and things like that.

Speaker Change: If we get that far would be in 'twenty five possibly into 2006, so it's been quiet on that front.

Speaker Change: Okay. Good.

Speaker Change: Yeah, So no new and then alright, but just one last one for the back half of the year, just any more kind of color by sub segment. If we think about kind of BSI nano Boston in college for for the back half of the year guidance.

Speaker Change: Okay.

Speaker Change: It's <unk>.

Speaker Change: <unk>.

Speaker Change: I feel bad Tycho and I don't have any crisp answers for you today, but if I did.

Speaker Change: It's.

Speaker Change: It's not one stand out group or product line or so.

Speaker Change: I mean semiconductor metrology was really quite a bit surprised us in the first half with the strength of orders.

Speaker Change: That was stronger than what we had predicted and yet on the other hand, biopharma, we would've liked to see Moreover, recovery, but maybe thats more of a 'twenty five thing now also looking at what other companies are reporting.

Speaker Change: So it's just.

Speaker Change: Hey.

Speaker Change: It's yes, it's some of the acquisitions of course, they are only about 10% it's strength in mall deep biotech for diagnostics, it's strengthened industrial research proteomics MMR all solid.

Frank Laukien: NMR all solid, solid execution. Strength of the portfolio is really the message here rather than one particular product line. Yes, I mean, we expect China to be down in revenue for the full year. We expect biopharma to be weak or down.

Speaker Change: Solid execution of.

Speaker Change: The strength of the portfolio is really the message here rather than.

Speaker Change: One particular product line with yes, I mean, we expect China to be down in revenue for the full year, we expect biopharma to be weak or down. So those are the bad guys for this year.

Frank Laukien: So those are the bad guys for this year, and the rest is all pretty good. And semiconductors are perhaps very good, with a very nice order recovery. Although there, the lead times are so long that a lot of the strong semiconductor recovery may not then turn into revenue till 25. But that's good too. People want us to deliver growth in 25.

Speaker Change: And the rest is all pretty good.

Speaker Change: In semiconductor perhaps.

Speaker Change: Good.

Speaker Change: Very nice order recovery, although they are the lead times are so long that a lot of the strong semiconductor recovery may not turn into revenue until 'twenty five but thats good to people want us to deliver growth in 'twenty five.

Speaker Change: Understood. Thanks.

Frank Laukien: I gave you three non-answers Tycho, I apologize, but the real message is the strength and resilience of the portfolio, more than one group or one product line or one market. Thanks Frank, I appreciate it.

Speaker Change: And we do too of course.

Speaker Change: Yes.

Speaker Change: Gave you three non answers Tycho I apologize.

Speaker Change: It's really the messages strength.

Speaker Change: Strength and resilience of the portfolio of more than one group or one product line or one market.

Tycho Peterson: Thanks, Frank I appreciate it.

Jacob: Thanks, Jacob.

Jacob: Yes, Thanks Jacob.

Speaker Change: The next question will come from Doug Schenkel with Wolfe Research. Please go ahead.

Unknown Executive: Hey, good morning, guys. And thank you for taking the questions. Just a couple of cleanup questions. I want to confirm as we sit here today that, one, you aren't accelerating anything relative to your original plans in terms of working through backlog to get the guidance for the year based on how orders are tracking it. It sounds like things are just kind of on track, you know, with some different puts and takes, but I just want to make sure that's the case.

Doug Schenkel: Hey, good morning, guys and thank you for taking the questions.

Unknown Executive: And then secondly, I want to make sure you remain comfortable with the EPS targets for 25 through 27, the ones that you outlined on May 17th. Gerald, I think you said, you know, obviously, you're not going to update guidance or set guidance for next year as we sit here at the beginning of August, but I just want to make sure there's no change in thinking at this point.

Doug Schenkel: Just a couple of clean up questions.

Doug Schenkel: I want to confirm as we sit here today that one you arent accelerating.

Doug Schenkel: Anything relative to your original plans in terms of working through backlog to get to guidance for the year based on how orders are tracking it sounds like things are just kind of on track with some different puts and takes but I just want to make sure. That's the case.

Speaker Change: And then secondly.

Speaker Change: I want to make sure you remain comfortable with the EPS targets for 25 to 27, the ones that you've outlined on May 17th Gerald I think you said.

Speaker Change: So youre not going to update guidance or is that guidance for next year as we sit here at the beginning of August but I just want to make sure. There is no change in thinking at this point.

Gerald Herman: Yeah, Doug, thanks for the questions and Gerald's. So on the cleanup question around the overall performance, I don't see any significant change. Our existing backlog, as Frank mentioned, came down to about seven months versus seven and a half. It's not really affecting us dramatically.

Speaker Change: Yes, Doug Thanks for the questions. So on the cleanup question Arun.

Speaker Change: The overall performance.

Speaker Change: I don't see any significant change.

Speaker Change: Our existing backlog as Francis mentioned came down to about seven months versus seven and a half it's not really affecting dramatically and we have good strong organic revenue growth in the business already.

Gerald Herman: We have good, strong organic revenue growth in the business already. We're pulling, and I would actually be happy to see some backlog come down. As some of you know, I'm really interested in moving that down to a more normalized level. So we're not expecting to see anything different from a guidance perspective for 24 around the backlog. It's coming down as well as we would have hoped. And then on the other point related to the medium-term outlook, as I said earlier, we won't comment specifically on guidance for 25, but we don't see any obstacles or roadblocks in the way with respect to our medium-term outlook that we laid out on May 17th in the investor webinar. Yeah,

Speaker Change: We're pulling b I would actually be happy to see some backlog come down.

Speaker Change: Some of you know I'm really interested in moving that.

Speaker Change: Down to a more normalized level.

Speaker Change: So we're not expecting to see anything different from a guidance perspective for 24 around the backlog it's coming down.

Speaker Change: Well as we would've hoped and then on the on the other point related to medium term outlook is there.

Jacob: I said earlier, we won't comment specifically on guidance for 25, but we don't see any.

Jacob: Obstacles or roadblocks in the way with respect to our our medium term outlook that we laid out on may 17th and the Investor Webinar.

Gerald Herman: Yeah, the medium term outlook remains as described. No changes are implied here at all. And yeah, maybe within two years from now or thereabouts, we'll be more at a five, five months of backlog and a more normalized level within the BSI segment. So you know, so that's also as expected. So yeah, we're on track in a choppier year, but you know, with a strong portfolio and, of course, very nice. I mean, the pull through, the reallocations under the hood from more traditional instruments and, you know, towards that post-genomic era and where we've positioned ourselves, it's just really, really working with a little bit of that semiconductor cherry on top.

Speaker Change: Medium term outlook remains.

Speaker Change: As described on no changes there I implied here at all.

Speaker Change: <unk>.

Speaker Change: Yes, maybe at the.

Speaker Change: Maybe within two years from now or thereabouts will be more at five.

Speaker Change: Five five months of backlog on a more normalized level within the BSI segment. So you. So so that's also as expected so Oems where we're on track in a choppy a year, but with a.

Speaker Change: Our strong portfolio and of course, they're very nice I mean, the pull through the reallocations under the hood from more traditional instruments.

Speaker Change: So to that post genomic era.

Speaker Change: Where we've positioned ourselves is just really really working with a little bit on that semiconductor cherry on top.

Speaker Change: Yes.

Unknown Executive: Okay, and one quick follow-up. You acknowledged some stalling of the market in China due to stimulus. I happened to catch up with you guys. You were good enough to sit down with me for a little bit at the beginning of June.

Speaker Change: Okay, and one quick follow ups, you acknowledged some stalling of the market in China due to stimulus.

Speaker Change: I happened to catch up with you guys you are.

Speaker Change: Good enough to sit down with me for a little bit at the beginning of June.

Frank Laukien: It didn't seem like you were seeing this at that point. So my guess is, and I just wanna confirm this, that that dynamic picked up towards the end of the quarter and maybe carried into Q3. Is that right? And if so, it seems like you've probably just widened the error bars in China to account for some risk that lingers into the back half of the year. Is that the right way to think about things? Thank you.

Speaker Change: It didn't seem like you were seeing at that point. So my guess is and I just want to confirm this.

Speaker Change: That dynamic picked up towards the end of the quarter and maybe carried into Q3.

Speaker Change: Is that right and if so.

Speaker Change: Seems like you've probably just widen the error bars, and China account for some risks that that lingers into the back half of the year is that the right way to think about thanks. Thank you.

Frank Laukien: Completely, yeah. Sales cycle lengthening in China, especially in Akagov, is something that has become apparent, orders that we may expect or opportunities that look good, but, you know, they just move to later in the year. People are now looking for bigger budgets and then making a bigger splash rather than spending their original budget right away. It makes sense, and I think you're thinking about it exactly the right way.

Speaker Change: It's a completely sale.

Speaker Change: Sales cycle lengthening in China, especially in <unk> Gov.

Speaker Change: Is something that became a payer and orders that we may expect our opportunities that look good but they just moved to later in the year people are now looking for bigger budgets, and then making a bigger splash rather than spending their original budget right away it makes sense and.

Speaker Change: And I think youre thinking about it exactly the.

Speaker Change: Right way.

Speaker Change: We still think that the stimulus, particularly perhaps for bio spin within EMR and high end systems.

Frank Laukien: We still think that the stimulus, particularly perhaps for Biospin with NMR and high-end systems, but other high-end systems, perhaps as well, could be really... quite good, but it takes time. It's just not moving fast like it was in Q1 of 23. This is going through the provinces and many more decision layers, perhaps more scrutiny as well. It's taking longer, or actually, I mean, this is not a big surprise to us. We already said a few months ago that this would probably be a 25% beneficial effect and tailwind.

Speaker Change: But other high end systems are perhaps as well could be really two.

Speaker Change: <unk> good but it takes.

Speaker Change: It's just not moving fast like it was in Q1 of 'twenty. Three this is going through the provinces and many more decision layers, perhaps more scrutiny as well.

Speaker Change: It's taking longer.

Speaker Change: Actually I mean, this is not a big surprise to us we already a few months ago.

Speaker Change: It will probably be at 25 beneficial effects in tailwind.

Frank Laukien: And yes, that has been confirmed. That has been confirmed now. So yes, there was muted demand and muted orders in China in Q2. And a lot of that seems to suggest, especially in academia, that these orders may come or perhaps larger orders may come in the second half or, you know, some also in 2025. So that's correct. I think you're thinking about it exactly the right way, Doug, from what I've heard. Doug, what I've also heard is that there is activity.

Speaker Change: And yes that has confirmed that has been confirmed now so yes. There was muted demand in muted orders in China in Q2, and a lot of that seems to suggest especially in academia that these orders may come or perhaps larger orders may come in the second half or some also in 'twenty five.

Speaker Change: So that's correct I think youre thinking about it exactly the right way to Doug from what I talked.

Unknown Executive: Doug, what I've heard also is that there is activity, but there are no orders. So I think this is important to clarify that it's very clear that there is a lot of movement, but no orders have been placed related to that.

Speaker Change: Talking about I've heard it also there is activity, but there are no orders. So I think this is.

Speaker Change: This is important to clarify that it's very clear that there is a lot of movement, but new orders have been placed related related to that at this stage.

Speaker Change: Great. Thank you again.

Speaker Change: Youre welcome.

Josh Waldman: Our last question for today will come from Josh Waldman with Cleveland Research. Please go ahead.

Speaker Change: Time for one more question.

Speaker Change: And our last question for today will come from Josh Waldman with Cleveland Research. Please go ahead.

Josh Waldman: Hey, morning guys. Thanks for taking my questions. I have a couple for you.

Josh Waldman: Hey, good morning, guys. Thanks for taking my questions a couple for you.

Josh Waldman: First a follow up on Tyco's question I believe any changes.

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

Josh Waldman: Growth assumptions by segment for the year versus the prior guide framework and then.

Speaker Change: Within the reiterated five to seven organic outlook for total company. It seems like there is a wider than normal range for the second half I guess is that wider range reflection of market uncertainties.

Speaker Change: In pharma in China.

Speaker Change: And I guess any context, you can provide on what did you to the low end what gets you to the high end do you need to see improvement from those end markets figure to the island.

Frank Laukien: Yeah, so on segments, as we said, biopharma, obviously lower expectations than we may have had at the beginning of the year. Semiconductor, it goes up for all of us, although it turns into revenue takes a little bit longer. China and biopharma, not a surprise, I guess, from what we're hearing from others, we would lower our expectations for this year, and we're upping them in just about everything else, or at least keeping them the same.

Speaker Change: Yes, so on segments as we said Biopharma, obviously less expectations. Then we may have had at the beginning of the year semiconductor. It goes up all of this so that turns into revenue takes a little bit longer.

Speaker Change: China sort of as expected, but we didn't know exactly.

Speaker Change: Q1 'twenty three.

Speaker Change: We were surprised how quickly those stimulus orders came through we were while we almost didn't see that coming so that just didn't repeat itself. It seems to be a longer bigger wave not this one quarter bolus so China.

Speaker Change: And biopharma not a surprise I guess.

Speaker Change: From what we're hearing from others, we would lower our expectations for this year and we're upping them in just about everything else and.

Frank Laukien: Upping them in semiconductor metrology for sure, upping them in automation, lab automation, although that's still a relatively new business, and it's not organic yet. Upping them in scientific software, smaller drivers, and really quite pleased with what infectious disease diagnostics is doing for us, both acquired and the existing multibios hyperfranchise.

Speaker Change: Or at least keeping them the same upping them in semiconductor metrology for sure upping them in.

Speaker Change: In automation lab automation, although that's still a relatively new business and it's not all it's not organic yet.

Speaker Change: Paying them in scientific software.

Speaker Change: All of the drivers and yeah and really <unk>.

Speaker Change: Pleased with what <unk> infectious disease diagnostics is doing for us acquired and the existing multi biocide per franchise.

Frank Laukien: So some incremental changes, nothing dramatic, I would say, but biopharma, China, the culprits, and other good guys. To the second half of 24, I mean, given the uncertainty and that we all read the Wall Street Journal and yesterday wasn't a good day, who knows what will happen today. I think it's fair to think about, you know, maybe within our guidance of five to seven percent organic that maybe, you know, this is not prudent to maybe model it that we would be in the lower half of that guidance, but we're still in that guidance range.

Speaker Change: Some incremental changes nothing dramatic I would say, but.

Speaker Change: Biopharma, China the culprits in other other good guys.

Speaker Change: To the second half of 'twenty, four I mean, I would say.

Speaker Change: Given the uncertainty in that we all read the Wall Street Journal and yesterday wasn't the good day, who knows what happens today.

Speaker Change: I think it's fair to think about maybe the within our guidance of 5% to 7% organic that maybe you know this is not prudent to maybe model. It that we would be in the lower half of that guidance, but we're still in that guidance range.

Frank Laukien: And, you know, we are pretty optimistic about our bookings in Q3 and Q4 in addition to our revenue forecast. So, so, yeah, this is the environment, the macro environment, and our concern about the correction or recession, perhaps, is not helping, and China being delayed and biopharma recovery being delayed are not helping. But yeah, I mean, we're damn resilient, and I think we're still pretty exceptional in terms of our growth for the year.

Speaker Change: We are pretty optimistic also about our bookings in Q3 and Q4. In addition to our revenue forecast. So so yes. This is the this is the environment the macro environment and our concern about the correction or recession, perhaps.

Speaker Change: Are not helping in China, being delayed and biopharma recovery being delayed or not helping but yes. I mean, we're damned resilient and I think we're still a pretty exceptional in terms of our growth for the year.

Speaker Change: So that's incrementally the macro environment has probably gotten a little weaker than when we spoke three months ago right. If I see what's going on around us, but we're not just a macro company as you've seen by now many times.

Frank Laukien: So that Incrementally, the macro environment, has probably gotten a little weaker than when we spoke three months ago, right? If I see what's going on around us, but we're not just a macro company, as you've seen by now.

Speaker Change: Yeah.

Josh Waldman: Does that help at all? Yeah, that helps, Frank. I appreciate that.

Speaker Change: Does that help at all just Frank.

Josh Waldman: And then, I guess for my follow-up, I thought I'd ask one on Tim Stoff. I was curious if you could comment on how the Altra 2 rollout is going, and then more broadly, for the Tim Stoff franchise, you know, I wondered if there's any change in the kind of near medium-term outlook. I mean, I don't, called it out as the driver in Cali, how you're thinking about growth.

Frank locking: Yes that helps correct I appreciate that and then I guess for my follow up thought I would ask one on <unk> I was curious if you could comment on how the altra to rollout is going and then more broadly for the <unk> franchise.

Speaker Change: If there is any change in kind of near and medium term outlook I mean, I don't think you called it out as a driver and.

Speaker Change: <unk> I wonder if.

Speaker Change: How youre thinking about growth.

Frank Laukien: Yeah. Yeah, its growth was slow; its growth in orders was slowed a little bit when the Astral showed up as being very competitive a year ago. We've since improved our competitive position significantly since then with our launch of the TIMSTOF Ultra 2 and some other important workflows, for instance, for plasma proteomics, which is not an instrument but very amazing plasma proteomics performance with our TIMSTOF, other models of our TIMSTOF platform. So in terms of revenue, it's not a big growth driver year over year, but in terms of bookings and competitive position, I think And so that's Tim's Top Order, and customers and opportunities are all really doing quite well again. Thank you. Thank you. Thanks for the detail.

Speaker Change: And that kind of burst the broader yes.

Speaker Change: <unk> growth was slow it's growth in orders was slowed a little bit when the Australia showed up being very competitive a year ago.

Speaker Change: We've since.

Speaker Change: Improved our competitive position significantly then with with our launch of the tips of ultra too and some other important workflows for instance for plasma proteomics. It is not an instrument, but very amazing plasma proteomics performance with our team stuff other models of our tims top platform. So.

Speaker Change: So in terms of revenue, it's not a big growth driver in year over year, but in terms of bookings and competitive position I think the trend is now it's still competitive.

Speaker Change: But I think we're in.

Speaker Change: And much better competitive position quite honestly again and so that's that's.

Speaker Change: Tim Tim stopped him stop ordering customers and opportunities are all really doing quite well against.

Speaker Change: Got it thanks for the detail.

Josh: Alright, Thank you Josh.

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

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

Operator: All right. Thank you, Josh. This concludes our question and answer session. I would like to turn the conference back over to Mr. Joe Koska for any closing remarks.

Joe Koska: Thank you for joining us today. Bruker's leadership team looks forward to meeting with you at an event or speaking with you directly during the third quarter. Feel free to reach out to me to arrange any follow-up, and have a good day. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Joe Costco: Thank you for joining us today brokers leadership team looks forward to meeting with you at an event or speaking with you directly during the third quarter feel free to reach out to me to arrange any follow up and have a good day.

Speaker Change: The conference has now concluded.

Speaker Change: You for attending today's presentation you may now disconnect.

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Joe Costco: Okay.

Speaker Change: [music].

Speaker Change: Okay.

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Speaker Change: Okay.

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