EX-99.1 2 exhibit991q213earnings.htm EX-99.1 Exhibit 99.1 Q2'13 Earnings
Exhibit 99.1


Brooks Automation Reports Fiscal Second Quarter Ended March 31, 2013 Results


CHELMSFORD, Mass., May 9, 2013 (GLOBE NEWSWIRE) -- Brooks Automation, Inc. (Nasdaq:BRKS), a leading provider of automation, vacuum and instrumentation solutions for multiple global markets, including semiconductor manufacturing and life sciences, today reported financial results for the second quarter ended March 31, 2013.

Fiscal Second Quarter of 2013 Financial and Operational Highlights:
•
Revenues were $116.6 Million; Order Bookings increased 31% on a sequential basis to $121.3 million;
•
Semiconductor front end product revenues increased 50% to $60 million;
•
GAAP Loss Per Share was $(0.01); Adjusted Earnings Per Share excluding special charges was $0.01;
•
Cash flow from operations was $11.6 million;
•
Cash, Cash Equivalents and Marketable Securities as of March 31st were $145.6 million, or $2.21 per diluted share, with no Debt; and
•
Generated 15 Design-in-Wins for Semiconductor and Adjacent market customers.

Summary of GAAP and Non-GAAP Earnings

 
Quarter Ended
 
Six Months Ended
000's except EPS
March 31, 2013
 
December 31, 2012
 
March 31, 2012
 
March 31, 2013
 
March 31, 2012
 
 
 
 
 
 
 
 
 
 

GAAP Net (Loss) Income attributable to Brooks
$
(538
)
 
$
(9,236
)
 
$
9,721

 
$
(9,774
)
 
$
12,544

GAAP Diluted (Loss) Earnings per share
$
(0.01
)
 
$
(0.14
)
 
$
0.15

 
$
(0.15
)
 
$
0.19

 
 
 
 
 
 
 
 
 
 
Adjusted Net Income (Loss) attributable to Brooks
$
600

 
$
(3,842
)
 
$
13,260

 
$
(3,242
)
 
$
16,867

Adjusted Diluted Earnings (Loss) per Share
$
0.01

 
$
(0.06
)
 
$
0.20

 
$
(0.05
)
 
$
0.26


A reconciliation of non-GAAP measures to the most nearly comparable GAAP measure follows the consolidated balance sheets, statements of operations and statements of cash flows included in this release.

Management Comments
“Our revenue exceeded our expectations in the second quarter as we experienced semiconductor front-end recovery in both our Services and Product Solutions businesses sequentially, as expected, offsetting our Life Sciences revenue decline. The integration of Crossing Automation's products into our Brooks portfolio is ahead of schedule and was a solid contributor during the quarter,” said Steve Schwartz, President and Chief Executive Officer of Brooks. “We continue to have a strong market share in Life Sciences even though our revenue was less than expected in the quarter due to delays in finalizing store installations and funding uncertainty, which caused a pull-back on device and consumables demand. Heading into our third fiscal quarter, we are seeing our growth coming from our semiconductor products. This reflects a continuation of our strong market positioning.”

Dr. Schwartz continued, “We have seen caution in most investments around sample management with deferred funding and investment plans in both pharmaceutical and government-funded spaces. We remain confident in our market position in Life Sciences with an estimated continuing win percentage of over 65% for new stores and we look to continue this pattern well into the coming quarters and years. As we look forward to our pipeline of automated cold store opportunities and the purchase orders that we expect to be released, we project upside in our Life Sciences segment in the fourth quarter of this fiscal year.”





Second Quarter of Fiscal 2013 Results
Revenues for the second quarter of fiscal 2013 were $116.6 million, compared to revenues of $98.0 million in the first quarter of fiscal 2013 and $139.3 million in the second quarter of fiscal 2012. These revenues reflected a strong recovery for front end semiconductor products.

Revenues for the Brooks Product Solutions segment increased 36.2% sequentially due to overall industry recovery in the second quarter of fiscal 2013. Revenues for the Brooks Global Services segment increased 4.4% on a sequential basis compared to the fiscal first quarter of 2013. Revenues for the Brooks Life Science Systems segment declined sequentially to $9.1 million compared to $14.1 million for the prior quarter.

Order bookings for the second quarter of fiscal 2013 increased sequentially 31.0% to $121.3 million, compared to order bookings in the fiscal first quarter of 2013 of $92.6 million.

Non-GAAP adjusted gross profit margin (as defined in the Notes on Non-GAAP Measures) was 32.1% for the second quarter of fiscal 2013, compared to non-GAAP adjusted gross profit margins of 31.9% for the first quarter of fiscal 2013 and 35.0% for the second quarter of fiscal 2012. The second quarter of fiscal 2013 sequential margin improvements in Services and Product Solutions were offset by a decrease in Life Sciences margins due to lower revenue volumes.

Adjusted EBITDA (as defined in the Notes on Non-GAAP Measures) for the second quarter of fiscal 2013 was $9.2 million, compared to $3.3 million in the first quarter of fiscal 2013 and $20.9 million in the second quarter of fiscal 2012.

A reconciliation of non-GAAP measures to the most nearly comparable GAAP measure follows the consolidated balance sheets, statements of operations and statements of cash flows included in this release.

Net cash provided by operating activities for the second quarter of fiscal 2013 was $11.6 million, which resulted in total cash, cash equivalents and marketable securities of $145.6 million at March 31, 2013.

Six Months ended March 31, 2013 Results
Revenues for the six months ended March 31, 2013 were $214.6 million, compared to revenues of $259.6 million for the six months ended March 31, 2012. Net loss attributable to Brooks for the six months ended March 31, 2013, including the impact of certain restructuring adjustments and other charges, was $(9.8) million or $(0.15) per diluted share compared to net income of $12.5 million, or $0.19 per diluted share, which includes certain restructuring and other charges, for the six months ended March 31, 2012.

Quarterly Cash Dividend
The Company additionally announced that the Board of Directors had declared a dividend of $0.08 per share payable on June 28, 2013 to stockholders of record on June 7, 2013. Future dividend declarations, as well as the record and payment dates for such dividends, are subject to the final determination of the Company's Board of Directors.

Guidance for Third Fiscal Quarter
The Company announced revenue and earnings guidance for the third quarter of fiscal 2013. Revenues are expected to range between $116 and $124 million and non-GAAP earnings per share is expected to range between $0.01 and $0.05. Including restructuring and acquisition related charges, GAAP earnings per share is expected to be between breakeven and $0.04 per diluted share.

Conference Call
Brooks management will webcast its second quarter earnings conference today at 4:30 p.m. Eastern Time to discuss the fiscal second quarter business highlights. During the call, Company management will respond to questions concerning, but not limited to, the Company's financial performance, business conditions and industry outlook. Their responses could contain information that has not been previously disclosed.

The call will be broadcast live over the Internet hosted at the Investor Relations section of Brooks' website at www.brooks.com, and will be archived online on this website for convenient on-demand replay. In addition, you may call 1-800-381-7839 (North America only) or 1-212-231-2900 to listen to the live broadcast.



2

About Brooks Automation, Inc.
Brooks is a leading worldwide provider of automation, vacuum and instrumentation solutions for multiple markets including semiconductor manufacturing, life sciences, and clean energy. Our technologies, engineering competencies and global service capabilities provide customers speed to market, and ensure high uptime and rapid response, which equate to superior value in their mission-critical controlled environments. Since 1978, we have been a leading partner to the global semiconductor manufacturing market and through product development initiatives and strategic business acquisitions; we have expanded our reach to meet the needs of customers in the life sciences industry, analytical & research markets and clean energy solutions. Brooks is headquartered in Chelmsford, Massachusetts, with direct operations in North America, Europe and Asia.


For more information, please visit www.brooks.com.

 
 
 
CONTACT:
  
Lynne Yassemedis
Brooks Automation, Inc.
978-262-4443
lynne.yassemedis@brooks.com
 
 
 
  
John Mills
Senior Managing Director
ICR, LLC
310-954-1105
john.mills@icrinc.com



Forward Looking Statements
Some statements in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27 of the Securities Act of 1933 and 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 operating margin expectations, our ability to develop further our business in new and adjacent markets, and our ability to achieve financial success in the future. Factors that could cause results to differ from our expectations include the following: volatility of the industries the Company serves, particularly the semiconductor industry; our possible inability to meet demand for our products due to difficulties in obtaining components and materials from our suppliers in required quantities and of required quality; the inability of customers to make payments to us when due; the timing and effectiveness of cost reduction and cost control measures; price competition; disputes concerning intellectual property; continuing uncertainties in global political and economic conditions, and other factors and other risks that we have described in our filings with the Securities and Exchange Commission, including but not limited to our Annual Report on Form 10-K, current reports on Form 8-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.



3

BROOKS AUTOMATION, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)

 
March 31,
2013
 
September 30,
2012
Assets
 
 
 
Current assets
 
 
 
Cash and cash equivalents
$
60,121

 
$
54,639

Restricted cash
—

 
763

Marketable securities
46,242

 
85,646

Accounts receivable, net
73,545

 
78,855

Inventories
96,601

 
102,985

Deferred tax assets
18,460

 
15,531

Prepaid expenses and other current assets
11,773

 
9,070

Total current assets
306,742

 
347,489

Property, plant and equipment, net
58,874

 
64,478

Long-term marketable securities
39,211

 
59,946

Long-term deferred tax assets
99,551

 
104,626

Goodwill
114,893

 
88,440

Intangible assets, net
64,576

 
39,400

Equity investment in joint ventures
28,425

 
31,428

Other assets
9,490

 
6,153

Total assets
$
721,762

 
$
741,960

Liabilities and equity
 
 
 
Current liabilities
 
 
 
Accounts payable
$
28,658

 
$
28,988

Deferred revenue
13,613

 
9,986

Accrued warranty and retrofit costs
7,725

 
7,329

Accrued compensation and benefits
12,409

 
14,118

Accrued restructuring costs
2,580

 
2,098

Accrued income taxes payable
390

 
1,699

Accrued expenses and other current liabilities
16,138

 
16,973

Total current liabilities
81,513

 
81,191

Income taxes payable
7,945

 
6,356

Long-term pension liability
1,411

 
1,688

Other long-term liabilities
3,618

 
3,424

Total liabilities
94,487

 
92,659

Contingencies
 
 
 
Equity
 
 
 
Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding
—

 
—

Common stock, $0.01 par value, 125,000,000 shares authorized, 79,952,679 shares issued and 66,490,810 shares outstanding at March 31, 2013, 79,790,557 shares issued and 66,328,688 shares outstanding at September 30, 2012
799

 
798

Additional paid-in capital
1,822,102

 
1,817,706

Accumulated other comprehensive income
17,512

 
23,642

Treasury stock at cost, 13,461,869 shares
(200,956
)
 
(200,956
)
Accumulated deficit
(1,012,861
)
 
(992,524
)
Total Brooks Automation, Inc. stockholders’ equity
626,596

 
648,666

Noncontrolling interest in subsidiaries
679

 
635

Total equity
627,275

 
649,301

Total liabilities and equity
$
721,762

 
$
741,960



4

BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
 
Three months ended
March 31,
 
Six months ended
March 31,
 
2013
 
2012
 
2013
 
2012
Revenues
 
 
 
 
 
 
 
Product
$
95,493

 
$
117,621

 
$
172,816

 
$
214,719

Services
21,126

 
21,716

 
41,828

 
44,846

Total revenues
116,619

 
139,337

 
214,644

 
259,565

Cost of revenues
 
 
 
 
 
 
 
Product
64,154

 
75,443

 
118,635

 
139,732

Services
15,853

 
15,612

 
30,239

 
31,194

Total cost of revenues
80,007

 
91,055

 
148,874

 
170,926

Gross profit
36,612

 
48,282

 
65,770

 
88,639

Operating expenses
 
 
 
 
 
 
 
Research and development
12,030

 
12,529

 
23,548

 
24,478

Selling, general and administrative
24,785

 
24,270

 
50,732

 
51,012

Restructuring and other charges
769

 
42

 
5,526

 
245

In-process research and development
—

 
3,026

 
—

 
3,026

Total operating expenses
37,584

 
39,867

 
79,806

 
78,761

Operating income (loss)
(972
)
 
8,415

 
(14,036
)
 
9,878

Interest income
265

 
273

 
540

 
552

Interest expense
—

 
—

 
(1
)
 
(7
)
Other income (expense), net
77

 
(51
)
 
(16
)
 
295

Income (loss) before income taxes and equity in earnings (losses) of joint ventures
(630
)
 
8,637

 
(13,513
)
 
10,718

Income tax benefit
(129
)
 
(659
)
 
(3,799
)
 
(359
)
Income (loss) before equity in earnings (losses) of joint ventures
(501
)
 
9,296

 
(9,714
)
 
11,077

Equity in earnings (losses) of joint ventures
(10
)
 
430

 
(16
)
 
1,480

Net income (loss)
$
(511
)
 
$
9,726

 
(9,730
)
 
12,557

Net income attributable to noncontrolling interests
(27
)
 
(5
)
 
(44
)
 
(13
)
Net income (loss) attributable to Brooks Automation, Inc.
$
(538
)
 
$
9,721

 
(9,774
)
 
12,544

Basic net income (loss) per share attributable to Brooks Automation, Inc. common stockholders
$
(0.01
)
 
$
0.15

 
$
(0.15
)
 
$
0.19

Diluted net income (loss) per share attributable to Brooks Automation, Inc. common stockholders
$
(0.01
)
 
$
0.15

 
$
(0.15
)
 
$
0.19

Shares used in computing earnings (loss) per share
 
 
 
 
 
 
 
Basic
65,889

 
65,038

 
65,726

 
64,925

Diluted
65,889

 
65,828

 
65,726

 
65,552



5

BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
 
Six months ended March 31,
 
2013
 
2012
Cash flows from operating activities
 
 
 
Net income (loss)
$
(9,730
)
 
$
12,557

Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 
 
Depreciation and amortization
12,443

 
10,621

Stock-based compensation
5,010

 
4,924

Amortization of premium on marketable securities
661

 
1,244

Undistributed (earnings) losses of joint ventures
16

 
(1,480
)
Deferred income tax benefit
(3,387
)
 
—

Pension settlement
87

 
—

Gain on disposal of long-lived assets
(150
)
 
(47
)
Changes in operating assets and liabilities, net of acquisitions and disposals:
 
 
 
Accounts receivable
9,489

 
(2,951
)
Inventories
13,734

 
3,540

Prepaid expenses and other current assets
(4,305
)
 
(732
)
Accounts payable
(3,260
)
 
5,894

Deferred revenue
3,711

 
(3,949
)
Accrued warranty and retrofit costs
(1,154
)
 
(172
)
Accrued compensation and benefits
(2,702
)
 
(5,630
)
Accrued restructuring costs
195

 
(168
)
Accrued expenses and other current liabilities
(3,914
)
 
(1,954
)
Net cash provided by operating activities
16,744

 
21,697

Cash flows from investing activities
 
 
 
Purchases of property, plant and equipment
(1,578
)
 
(4,384
)
Purchases of marketable securities
(39,269
)
 
(39,097
)
Sale/maturity of marketable securities
98,178

 
61,970

Acquisition, net of cash acquired
(59,005
)
 
(8,716
)
Proceeds from the sale of property, plant and equipment
2,368

 
—

Payment of deferred leasing cost
(2,076
)
 
—

Decrease in restricted cash
763

 
476

Net cash provided by (used in) investing activities
(619
)
 
10,249

Cash flows from financing activities
 
 
 
Proceeds from issuance of common stock, net of issuance costs
969

 
842

Common stock dividend paid
(10,672
)
 
(10,442
)
Net cash used in financing activities
(9,703
)
 
(9,600
)
Effects of exchange rate changes on cash and cash equivalents
(940
)
 
(24
)
Net increase in cash and cash equivalents
5,482

 
22,322

Cash and cash equivalents, beginning of period
54,639

 
58,833

Cash and cash equivalents, end of period
$
60,121

 
$
81,155



6

Notes on Non-GAAP Financial Measures:
The information in this press release is for: internal managerial purposes; when publicly providing guidance on future results; and as a means to evaluate period-to-period comparisons. These financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management believes these financial measures provide an additional way of viewing aspects of our operations, that, when viewed with our GAAP results and the accompanying reconciliations to the corresponding GAAP financial measures, provide a more complete understanding of our business. Management strongly encourages investors to review our financial statements and publicly-filed reports in their entirety and not rely on any single measure.

The press release includes financial measures which exclude the effects of non-recurring income and special charges such as restructuring charges and acquisition related charges. Management believes these measures are useful to investors because it eliminates accounting charges that do not reflect Brooks' day-to-day operations. A table reconciling income (loss) and diluted earnings (loss) per share from operations is presented below.
 
 
 
 
 
Quarter ended
 
 
 
 
 
March 31, 2013
 
December 31, 2012
 
March 31, 2012
 
$
 
per share
 
$
 
per share
 
$
 
per share
Net income (loss) attributable to Brooks Automation, Inc.
$
(538
)
 
$
(0.01
)
 
$
(9,236
)
 
$
(0.14
)
 
$
9,721

 
$
0.15

 
 
 
 
 
 
 
 
 
 
 
 
Adjustments, net of tax:
 
 
 
 
 
 
 
 
 
 
 
Purchase accounting impact on inventory and contracts acquired
579

 
0.01

 
1,513

 
0.02

 
471

 
0.01

Restructuring charges
553

 
0.01

 
3,425

 
0.05

 
42

 
0.00

Merger costs
6

 
0.00

 
456

 
0.01

 
—

 
—

In-process R&D acquired
—

 
—

 
—

 
—

 
3,026

 
0.05

Adjusted net income (loss) attributable to Brooks Automation, Inc.
600

 
$
0.01

 
(3,842
)
 
(0.06
)
 
13,260

 
0.20


Stock-based compensation
2,499

 
0.04

 
2,511

 
0.04

 
3,181

 
0.05

Adjusted net income (loss) attributable to Brooks Automation, Inc. - excluding stock-based compensation
$
3,099

 
$
0.05

 
$
(1,331
)
 
$
(0.02
)
 
$
16,441

 
$
0.25

 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended
 
 
 
 
 
March 31, 2013
 
March 31, 2012
 
 
 
 
 
$
 
per share
 
$
 
per share
 
 
 
 
Net income (loss) attributable to Brooks Automation, Inc.
$
(9,774
)
 
$
(0.15
)
 
$
12,544

 
$
0.19

 
 
 
 

Purchase accounting impact on contracts acquired
2,092

 
0.03

 
831

 
0.01

 
 
 
 
Restructuring charges
3,978

 
0.06

 
245

 
0.00

 
 
 
 
Merger costs
462

 
0.01

 
221

 
0.00

 
 
 
 
In-process R&D purchased
—

 
—

 
3,026

 
0.05

 
 
 
 
Adjusted net income attributable to Brooks Automation, Inc.
$
(3,242
)
 
(0.05
)
 
$
16,867

 
0.26

 
 
 
 

Stock-based compensation
5,010

 
0.08

 
4,924

 
0.08

 
 
 
 
Adjusted net income (loss) attributable to Brooks Automation, Inc. - excluding stock-based compensation
$
1,768

 
$
0.03

 
$
21,791

 
$
0.33

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter ended
 
March 31, 2013
 
December 31, 2012
 
March 31, 2012
 
$
 
%
 
$
 
%
 
$
 
%
Gross profit / gross margin percentage
$
36,612

 
31.4
%
 
$
29,158

 
29.7
%
 
$
48,282

 
34.7
%
 
 
 
 
 
 
 
 
 
 
 
 
Adjustments:
 
 
 
 
 
 
 
 
 
 
 
Purchase accounting impact on inventory and contracts acquired
805

 
0.7
%
 
2,102

 
2.1
%
 
471

 
0.3
%

Adjusted gross profit / gross margin percentage
$
37,417

 
32.1
%
 
$
31,260

 
31.9
%
 
$
48,753

 
35.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter ended
 
Six months ended
 
 
 
March 31,
 
December 31,
 
March 31,
 
March 31,
 
March 31,
 
 
 
2013
 
2012
 
2012
 
2013
 
2012
 
 
Net income (loss) attributable to Brooks Automation, Inc.
$
(538
)
 
$
(9,236
)
 
$
9,721

 
$
(9,774
)
 
$
12,544

 
 

Less: Interest income
(265
)
 
(275
)
 
(273
)
 
(540
)
 
(552
)
 
 
Add: Interest expense
—

 
1

 
—

 
1

 
7

 
 
Add: Income tax benefit
(129
)
 
(3,670
)
 
(659
)
 
(3,799
)
 
(359
)
 
 
Add: Depreciation
3,548

 
3,704

 
3,280

 
7,252

 
6,542

 
 
Add: Amortization of completed technology
1,041

 
1,185

 
935

 
2,226

 
1,724

 
 
Add: Amortization of acquired intangible assets
1,413

 
1,552

 
1,138

 
2,965

 
2,355

 
 
Add: Stock-based compensation
2,499

 
2,511

 
3,181

 
5,010

 
4,924

 
 
Add: Restructuring charges
769

 
4,757

 
42

 
5,526

 
245

 
 
Add: Purchase accounting impact on inventory and contracts acquired
805

 
2,102

 
471

 
2,907

 
831

 
 
Add: Merger costs
8

 
634

 
—

 
642

 
221

 
 
Add: In-process R&D acquired
—

 
—

 
3,026

 
—

 
3,026

 
 

Adjusted EBITDA
$
9,151

 
$
3,265

 
$
20,862

 
$
12,416

 
$
31,508

 
 

7