EX-99.1 3 e17596ex99_1.txt PRESS RELEASE Exhibit 99.1 Brooks Automation Reports Results for Fiscal 2004 Second Quarter Ended March 31, 2004 Record bookings, revenues and earnings for the quarter exceed guidance CHELMSFORD, Mass., April 22 /PRNewswire-FirstCall/ -- Brooks Automation, Inc. (Nasdaq: BRKS), which delivers hardware and software systems that enable semiconductor and other complex industries to improve manufacturing efficiencies, today announced results for its fiscal second quarter ended March 31, 2004. Revenues for the second quarter 2004 were $138.0 million, a 67 percent sequential increase from the preceding quarter revenues of $82.5 million, and a 48 percent increase from the second quarter 2003 revenues of $93.0 million. Bookings for the quarter increased to $152.7 million, a sequential increase of 20 percent from the preceding quarter bookings of $127.0 million, and an increase of 78 percent over the second quarter 2003 bookings of $85.7 million. The net income for the second quarter 2004 on a GAAP ("Generally Accepted Accounting Principles") basis was $6.9 million, or $0.15 per diluted share, compared to a net loss of $8.9 million, or $0.23 loss per share in the immediately preceding quarter, and a net loss in the second quarter 2003 of $28.8 million or $0.79 loss per share. Included in GAAP net income were restructuring charges totaling $2.2 million, amortization of acquired intangibles totaling $0.9 million and deferred compensation of $0.8 million. These charges negatively impacted earnings by $0.09 per share. "Brooks had a record-breaking fiscal second quarter," said Robert J. Therrien, chairman and chief executive officer of Brooks Automation. "Our ability to execute our disciplined growth strategy along with the pace of the industry recovery in semiconductor capital equipment spending resulted in bookings, revenues and profitability that exceeded our guidance for the quarter. The December quarter's bookings of $127 million were the most for any quarter in company history, and we surpassed that level by another 20 percent in the March quarter with $152.7 million in bookings. Revenues reached a new quarterly record of $138.0 million. This 67 percent sequential growth included revenues of approximately $17 million from the completion and resulting revenue recognition of a large software contract, whose impact was included in the revenue guidance for the quarter. Even without this large contract, the underlying business grew by 47 percent in the quarter and was $13 million above the high end of our guidance. Our OEM business was a major contributor to the growth in revenues for the quarter, increasing by 74 percent over the preceding quarter fueled by a broad-based industry increase in customer demand and market share gains. Our software business grew strongly quarter over quarter, benefiting from the completion of the large 300mm software project in Europe previously mentioned. On the factory hardware side of the business, we have a number of projects being installed and prepared for acceptance at customer sites. At the beginning of April, Gartner Dataquest released their annual survey of market share for calendar 2003 and Brooks was reported to be the world's largest automation company in the semiconductor industry for the third consecutive year. We have seen calendar 2004 get off to an outstanding start." Edward C. Grady, president and chief operating officer, said "Our worldwide hardware production increased substantially over the preceding quarter shipments, a testament to the outstanding performance of our global operations team's ability to ramp our factory production. I believe the market is rewarding us for our commitment to manufacturing excellence, a core competency which we have never surrendered. In this supply-constrained environment, customers put a premium on companies which can deliver quality products on time. This ability to meet the market demand has turned into a major competitive advantage for Brooks. We are winning significant incremental business from both OEM and fab customers. Although we still have room for improvement, our efforts over the past year to restructure our fixed and variable costs are beginning to result in strong earnings leverage." Mr. Therrien commented on Brooks' financial performance and provided guidance on the business outlook. "Our net income on a GAAP basis was $0.15 per diluted share compared to guidance of $0.01 to $0.05 per diluted share at the start of the quarter. Income from operations on a non-GAAP basis was $0.24 per diluted share, far better than our guidance of $0.10 to $0.15 at the start of the quarter. Operating expenses on a non-GAAP basis for the quarter were within our guidance at $37.3 million. Gross margin was 37 percent, also within our guidance. The stage is now set for improved performance, as both the industry fundamentals and our operating platform strengthen. We expect gross margin to improve approximately one to two percent in the June quarter. Revenues for the June quarter are expected to be in a range of $140 to $150 million. Our earnings per share is expected to be in the range of $0.20 to $0.25 per diluted share on a GAAP basis. This guidance is inclusive of about $0.04 per share of restructuring and amortization expenses. Quoting activity for new fab opportunities is at the highest level in two years, but being timing-dependent, may translate into increased bookings over the next two quarters. Our commitment to building shareholder value in this and subsequent investment cycles is our first priority. We are proud of our workforce and our management team and I would like to thank them for their hard work and dedication during the challenging times of the past two and a half years. The resiliency and focus of our people played a critical role in restoring profitable operations." As in previous earnings reports, the GAAP and non-GAAP operating results showing the adjustments for the quarter are reconciled in the attached exhibits. Q2 Fiscal 2004 Highlights * Ranked by Gartner Dataquest as the world's largest semiconductor automation company in calendar year 2003. * OEM business achieved second consecutive quarter of record quarterly bookings. * Factory hardware business achieved record bookings in the quarter. * Factory shipments of manufactured hardware products increased approximately 83 percent over the preceding quarter shipments. * OEM systems revenues increased 170 percent quarter over quarter, driven by strong demand in semiconductor capital equipment and market share gains. * Received 14 new design-in wins during the quarter from OEM customers. * Booked order for Guardian bare reticle stocker from a major DRAM manufacturer in Korea. This customer is the 3rd 300mm fab since the start of fiscal year 2004 to order a lithography automation solution from Brooks. * Booked multi-million dollar expansion for AMHS from a major fab in China. * Selected by a major fab in China for a significant 200mm SMIF expansion, displacing the incumbent supplier. * Received acceptance of the initial pilot line implementation of the OneFab(TM) AMHS at a 300mm North American DRAM fab. * Completed the implementation of a large software automation system at a 300mm fab in Europe, resulting in revenues of approximately $14 million consisting of software licenses and services plus additional $3 million in reimbursable expenses. * Booked multi-million dollar order for factory software, including the manufacturing execution system (MES), real time dispatching, and material control system (MCS), from a major DRAM manufacturer in Korea for its second 300mm production fab. * Booked multi-million dollar order from a Taiwanese flat panel display (FPD) manufacturer for LCDworks, Brooks' MES for FPD manufacturing. * Booked order from ProMOS Technologies, a top DRAM manufacturer in Taiwan, for the implementation of Activity Manager in its 300mm fab. Brooks will act as the prime contractor for the implementation and integration of the full automation solution. Activity Manager is an important new software product that automates the job and exception management across a fab's automation systems. * Received acceptance of Activity Manager from a 300mm North American DRAM fab. * Selected by a major foundry in Asia to provide computer integrated manufacturing (CIM) software for its new 300mm fab. * Selected by a major FPD manufacturer in Korea to provide the next generation adaptive MES software to automate its leading edge LCD Gen 7 fab. * Selected by a major semiconductor manufacturer in China to provide MES software for its first 300mm fab. Conference Call and Webcast Brooks Automation will host a conference call on Thursday, April 22, 2004 at 5:00 PM Eastern to review its fiscal second quarter results. On the call, management will discuss the information contained in this announcement and answer related questions. Conference Call Date: Thursday, April 22, 2004 Time: 5:00 p.m. Eastern 4:00 p.m. Central 3:00 p.m. Mountain 2:00 p.m. Pacific Dial in #: (719) 457-2638 Passcode: 209524 An archive of this Webcast will be made available following the conference call, and can be accessed for at least the next twelve months on the section for Webcasts at http://investor.brooks.com under the title "Brooks Automation Fiscal 2004 Second Quarter Earnings Webcast". A telephone replay will also be made available following the call at the following number: (719) 457-0820 beginning @ 9:00 p.m. Thursday, April 22, 2004, and available 7 days. The passcode for the replay is 209524. About Brooks Automation, Inc. Brooks Automation (Nasdaq: BRKS) is a leading worldwide provider of automation solutions to the global semiconductor and related industries. The company's factory and tool automation hardware, software and professional services can manage every wafer, reticle and data movement in the fab, helping customers improve throughput and yield while reducing both cost and time to market. Brooks products and services are used in virtually every fab in the world as well as by many customers in industries outside of semiconductor manufacturing. For more information, visit http://www.brooks.com. "Safe Harbor" Statement under Section 21E of the Securities Exchange Act of 1934: Some statements in this release are forward-looking statements made under Section 21E of the Securities Exchange Act of 1934. These statements are neither promises nor guarantees but involve risks and uncertainties, both known and unknown, that could cause Brooks' financial and business results to differ materially from our expectations. They are based on the facts known to management at the time they are made. These forward-looking statements include statements regarding our revenue and profit and loss expectations, our future business strategy and market opportunities, the quality and effectiveness of our manufacturing processes, continuing improvements in our ability to manage expenses and to meet customer expectations and demand, level of capital expenditures and bookings expectations in the semiconductor industry, demand for our products, and the outlook of the general economy and the semiconductor industry. Factors that could cause results to differ from our expectations include the following: our dependence on the cyclical semiconductor industry; the possibility of future downturns in market demand for electronics; the possibility that the upturn in market demand for electronics will not be sustained; our possible inability to meet increased demand for our products due to difficulties in obtaining components and materials from our suppliers in required quantities and of required quality; the highly competitive nature and rapid technological change that characterizes the industries in which we compete; decisions by customers to accelerate delivery under or to cancel or defer orders that previously had been accepted; decisions by customers to reject the products we ship to them; the possibility that we may not be able to fulfill customer orders within a period of time acceptable to them; the fact that design-in wins do not necessarily translate to significant revenue; the timing and effectiveness of restructuring, cost-cutting and expense control measures; intense price competition; possible disputes concerning intellectual property; continuing uncertainties in global political and economic conditions, especially arising out of conflict in the Middle East; and other factors and other risks that we have described in our filings with the Securities and Exchange Commission, including but not limited to Brooks' Annual Report on Form 10-K and our quarterly reports on Form 10-Q. As a result we can provide no assurance that our future results will not be materially different from those projected. Brooks expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based. Brooks undertakes no obligation to update the information contained in this press release. All trademarks contained herein are the property of their respective owners. Contact: Mark Chung Director of Investor Relations Brooks Automation, Inc. Telephone: (978) 262-2459 mark.chung@brooks.com BROOKS AUTOMATION, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) March 31, September 30, 2004 2003 ASSETS Cash, cash equivalents and marketable securities $199,817 $129,480 Accounts receivable, net 103,379 69,374 Inventories 80,447 53,212 Other current assets 10,802 17,946 Total current assets 394,445 270,012 Property, plant and equipment, net 60,587 64,825 Long-term marketable securities 109,991 69,108 Intangible assets, net 78,578 79,550 Other assets 9,384 9,206 Total assets $652,985 $492,701 LIABILITIES, MINORITY INTERESTS AND STOCKHOLDERS' EQUITY Current liabilities $164,976 $134,857 Convertible subordinated notes 175,000 175,000 Other long-term liabilities 18,699 19,851 Total liabilities 358,675 329,708 Minority interests 956 707 Stockholders' equity 293,354 162,286 Total liabilities, minority interests and stockholders' equity $652,985 $492,701 Cash, cash equivalents, short- term and long-term marketable securities March 31, 2004 $309,808 December 31, 2003 $312,680 September 30, 2003 $198,588 June 30, 2003 $209,646 March 31, 2003 $212,933 BROOKS AUTOMATION, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) Three months ended Six months ended March 31, March 31, 2004 2003 2004 2003 Revenues $137,984 $92,964 $220,530 $177,819 Cost of revenues 87,074 68,312 139,375 128,793 Gross profit 50,910 24,652 81,155 49,026 Operating expenses: Research and development 16,634 19,754 32,702 39,428 Selling, general and administrative 21,469 23,022 41,236 57,128 Acquisition-related and restructuring charges 2,168 4,728 2,168 25,824 40,271 47,504 76,106 122,380 Income (loss) from operations before amortization of acquired intangible assets 10,639 (22,852) 5,049 (73,354) Amortization of acquired intangible assets 939 941 1,882 2,988 Income (loss) from operations 9,700 (23,793) 3,167 (76,342) Interest expense, net 1,083 1,529 2,516 2,349 Other (income) expense, net (469) 3,323 (511) 16,035 Income (loss) before income taxes and minority interests 9,086 (28,645) 1,162 (94,726) Income tax provision 1,829 53 2,842 4,868 Income (loss) before minority interests 7,257 (28,698) (1,680) (99,594) Minority interests in earnings of consolidated subsidiary 317 103 249 193 Net income (loss) $6,940 $(28,801) $(1,929) $(99,787) Income (loss) per share: Basic $0.16 $(0.79) $(0.05) $(2.73) Diluted $0.15 $(0.79) $(0.05) $(2.73) Shares used in computing income (loss) per share: Basic 44,412 36,682 41,417 36,521 Diluted 44,995 36,682 41,417 36,521 Pro Forma Net Income (loss) Before Amortization of Acquired Intangible Assets and Other Acquisition and Disposition Related Charges Net income (loss) before amortization of acquired intangible assets and other acquisition and disposition related charges, net of taxes $10,829 $(12,652) $3,861 $(36,684) Income (loss) per share before amortization of acquired intangible assets and other acquisition and disposition related charges, net of taxes Basic $0.24 $(0.34) $0.09 $(1.00) Diluted $0.24 $(0.34) $0.09 $(1.00) Shares used in computing income (loss) per share before amortization of acquired intangible assets and other acquisition and disposition related charges, net of taxes Basic 44,412 36,682 41,417 36,521 Diluted 44,995 36,682 42,036 36,521 BROOKS AUTOMATION, INC. CALCULATION OF PRO FORMA NET INCOME BEFORE AMORTIZATION OF ACQUIRED INTANGIBLE ASSETS AND OTHER ACQUISITION AND DISPOSITION RELATED CHARGES FOR THE THREE MONTHS ENDED MARCH 31, 2004 (in thousands, except per share data) U.S. GAAP Adjustments Pro Forma Revenues $137,984 $- $137,984 Cost of revenues 87,074 - 87,074 Gross profit 50,910 - 50,910 Operating expenses: Research and development 16,634 10 (A) 16,624 Selling, general and administrative 21,469 772 (B) 20,697 Acquisition-related and restructuring charges 2,168 2,168 - 40,271 2,950 37,321 Income from operations before amortization of acquired intangible assets 10,639 (2,950) 13,589 Amortization of acquired intangible assets 939 939 - Income from operations 9,700 (3,889) 13,589 Interest expense, net 1,083 - 1,083 Other income, net (469) - (469) Income before income taxes and minority interests 9,086 (3,889) 12,975 Income tax provision 1,829 - 1,829 Income before minority interests 7,257 (3,889) 11,146 Minority interests in earnings of consolidated subsidiary 317 - 317 Net income $6,940 $(3,889) $10,829 Income per share: Basic $0.16 $0.24 Diluted $0.15 $0.24 Shares used in computing income per share: Basic 44,412 44,412 Diluted 44,995 44,995 Adjustments include amortization of acquired intangible assets and other acquisition and disposition related charges. (A) Comprised of: Deferred compensation expense - IAS $10 $10 (B) Comprised of: Deferred compensation expense - IAS $772 $772 BROOKS AUTOMATION, INC. CALCULATION OF PRO FORMA NET INCOME BEFORE AMORTIZATION OF ACQUIRED INTANGIBLE ASSETS AND OTHER ACQUISITION AND DISPOSITION RELATED CHARGES FOR THE SIX MONTHS ENDED MARCH 31, 2004 (in thousands, except per share data) U.S. GAAP Adjustments Pro Forma Revenues $220,530 $- $220,530 Cost of revenues 139,375 237 (A) 139,138 Gross profit 81,155 (237) 81,392 Operating expenses: Research and development 32,702 229 (B) 32,473 Selling, general and administrative 41,236 1,274 (C) 39,962 Acquisition-related and restructuring charges 2,168 2,168 - 76,106 3,671 72,435 Income from operations before amortization of acquired intangible assets 5,049 (3,908) 8,957 Amortization of acquired intangible assets 1,882 1,882 - Income from operations 3,167 (5,790) 8,957 Interest expense, net 2,516 - 2,516 Other income, net (511) - (511) Income before income taxes and minority interests 1,162 (5,790) 6,952 Income tax provision 2,842 - 2,842 Income (loss) before minority interests (1,680) (5,790) 4,110 Minority interests in earnings of consolidated subsidiary 249 - 249 Net income (loss) $(1,929) $(5,790) $3,861 Income (loss) per share: Basic $(0.05) $0.09 Diluted $(0.05) $0.09 Shares used in computing income (loss) per share: Basic 41,417 41,417 Diluted 41,417 42,036 Adjustments include amortization of acquired intangible assets and other acquisition and disposition related charges. (A) Comprised of: Deferred compensation expense - PRI $237 $237 (B) Comprised of: Deferred compensation expense - PRI $208 Deferred compensation expense - IAS 21 $229 (C) Comprised of: Deferred compensation expense - IAS $772 Deferred compensation expense - PRI 502 $1,274 SOURCE Brooks Automation, Inc. -0- 04/22/2004 /CONTACT: Mark Chung, Director of Investor Relations of Brooks Automation, Inc., +1-978-262-2459, mark.chung@brooks.com/ /Web site: http://www.brooks.com/ (BRKS) CO: Brooks Automation, Inc. ST: Massachusetts IN: STW HRD SEM SU: ERN CCA MAV