EX-99.1 2 exhibit991q316earnings.htm EXHIBIT 99.1 Exhibit
Exhibit 99.1


Brooks Automation Reports Fiscal Third Quarter 2016 Financial Results

CHELMSFORD, Mass., July 28, 2016 (GLOBE NEWSWIRE) -- Brooks Automation, Inc. (Nasdaq: BRKS), a leading worldwide provider of automation and cryogenic solutions for multiple markets including semiconductor manufacturing and life sciences, today reported financial results for the third fiscal quarter of 2016, ended June 30, 2016.

Fiscal Third Quarter of 2016 Financial and Operational Highlights:
•
Revenue was $147.5 million;
•
GAAP Net Income was $8.6 million with diluted EPS of $0.12;
•
Non-GAAP Net Income was $11.1 million with diluted EPS of $0.16;
•
Cash flow from operations was $15.7 million; and
•
Total of Cash, Cash Equivalents, and Marketable Securities, as of June 30, 2016, was $72.2 million.

Summary of GAAP and Non-GAAP Earnings (Losses)
 
Quarter Ended
 
June 30,
 
March 31,
 
June 30,
Dollars in thousands, except per share data
2016
 
2016
 
2015
GAAP net income (loss)
$
8,564

 
$
(83,939
)
 
$
7,681

GAAP diluted earnings (loss) per share
$
0.12

 
$
(1.22
)
 
$
0.11

 
 
 
 
 
 
Non-GAAP net income
$
11,128

 
$
4,920

 
$
10,277

Non-GAAP diluted earnings per share
$
0.16

 
$
0.07

 
$
0.15

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

Management Comments
“Our strong third quarter performance highlights the strength of our portfolio and the improved earnings power of our revised organization structure. Sequential growth in automation, contamination control, BioStore systems, and BioStorage services has supported improved gross margins and cash flow,” commented Steve Schwartz, CEO of Brooks Automation. “Our Life Sciences business has continued to execute well, with growth coming from both large sample storage systems and BioStorage Technologies services. Both semiconductor and life sciences segments are on track to yield further growth and improve profits.”

GAAP Summary
Revenue increased 9% sequentially to $147.5 million in the third quarter of fiscal 2016, driven by a 10% increase in Life Sciences and a 9% increase in Brooks Semiconductor Solutions Group (formerly Brooks Product Solutions and Brooks Global Services). Gross margin was 36.7%, up 2.1 percentage points from the second fiscal quarter of 2016.  Operating expense of $45.7 million was 14% or $7.5 million less than the previous quarter primarily driven by lower restructuring charges.  In the third quarter, the Company incurred $1.0 million of restructuring charges compared to $7.3 million in the second quarter. The Company had a $0.2 million benefit from the reversal of accrued incentive based compensation for employees separated from the Company, compared to a $1.7 million similar benefit in the second quarter. GAAP net income was $8.6 million and diluted earnings per share was $0.12.

Beginning in the third quarter, the Company consolidated the operating results of Brooks Product Solutions (BPS) and Brooks Global Solutions (BGS) into one segment, referred to as Brooks Semiconductor Solutions Group, or BSSG, to better align with its new organizational structure and to reflect how strategic directions and resources are determined. The Brooks Life Sciences Systems (BLSS) segment remains unchanged.


1

Amortization of intangibles, special charges, and one-time items are appropriately included in the GAAP summary of earnings.  The impact on earnings of these items is set out in the unaudited table included with this release.

Results of Q3 Fiscal 2016 (Non-GAAP Discussion)
Non-GAAP net income was $11.1 million in the third quarter, resulting in non-GAAP earnings per share of $0.16. This compares to non-GAAP net income of $4.9 million and non-GAAP earnings per share of $0.07 in the second quarter, and non-GAAP net income of $10.3 million and non-GAAP earnings per share of $0.15 in the third quarter of fiscal 2015.

As noted above, revenue for the third fiscal quarter of 2016 was $147.5 million, up 9% compared to the second fiscal quarter of 2016. The Brooks Semiconductor Solutions Group revenue increased 9% to $118.4 million, primarily driven by sales of Contamination Control Solutions of $15.8 million, up $9.6 million from the second quarter. Brooks Life Science Systems revenue grew 10% sequentially to $29.1 million, driven by 11% or $1.6 million sequential growth in the legacy business and 9% or $1.0 million growth in the recently acquired BioStorage services business, which reached $12.4 million of revenue in the quarter.

Adjusted gross margin, which excludes amortization, purchase accounting impacts and special charges, was 37.5% in the third quarter, up 2.2 percentage points from the prior quarter. The Semiconductor Solutions adjusted gross margin was 36.9% in the third quarter compared to 34.5% in the prior period, with improvements coming from both product and services lines. The Life Sciences adjusted gross margin was 40.0% in the third quarter compared to 38.5% in the prior period, with the legacy Life Sciences business delivering improved margins from large store systems. Gross margins for BioStorage Technologies were 43.9%, up 0.4 percentage points. In summary, the total adjusted gross profit increased by $7.6 million compared to the prior quarter, driven by revenue increases and gross margin improvements across both segments.

Bookings for the Semiconductor Solutions business in the third quarter totaled $115.2 million, compared to $108.6 million in the second quarter. The Life Sciences business booked a total of $40.6 million of new contract value in the quarter.
 
Non-GAAP operating expense of $41.8 million decreased $0.7 million sequentially, driven primarily by the restructuring actions initiated in the second quarter. The operating expense includes a benefit from the reversal of incentive based compensation accruals for employees departing in this quarter of $0.2 million, compared to $1.6 million in the second fiscal quarter.

Cash flow from operations was $15.7 million in the quarter and adjusted EBITDA was $19.0 million. The Company's cash, cash equivalents, and marketable securities increased $3.9 million to $72.2 million as of June 30, 2016, which reflects the operating cash flow, dividend payment and capital expenditures during the quarter.

Quarterly Cash Dividend
The Company additionally announced that the Board of Directors has approved a dividend of $0.10 per share payable on September 23, 2016 to stockholders of record on September 2, 2016. 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 Fourth Fiscal Quarter 2016
The Company announced revenue and earnings guidance for the fourth quarter of fiscal 2016. Revenue is expected to be in the range of $146 million to $151 million and non-GAAP diluted EPS is expected to be in the range of $0.14 to $0.17. (GAAP diluted EPS is projected to be $0.06 to $0.09, reflecting the impact of amortization, purchase price accounting, and anticipated restructuring charges.)

Conference Call
Brooks management will webcast its third quarter earnings conference call today at 5:30 p.m. Eastern Time. During the call, Company management will respond to questions concerning, but not limited to, the Company's financial performance, business conditions and industry outlook. Management's responses could contain information that has not been previously disclosed.


2

The call will be broadcast live over the Internet and, together with presentation materials referenced on the call, will be 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 800-381-7839 (US & Canada only) or 212-231-2900 to listen to the live webcast.

About Brooks Automation, Inc.
Brooks is a leading worldwide provider of automation and cryogenic solutions for multiple markets including semiconductor manufacturing and life sciences. Brooks’ 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, Brooks has been a leading partner to the global semiconductor manufacturing market and, by applying expertise in automation and cryogenics, has expanded its offerings to meet the sample storage needs of customers in the life sciences industry. Brooks recently completed a strategic acquisition of BioStorage Technologies, Inc., complementing Brooks’ life sciences offerings with comprehensive outsource services.  Brooks now offers, in addition to a broad range of products and services for on-site infrastructure for sample management in temperatures of -20°C to -150°C, outsource service solutions across the complete life cycle of biological samples including collection, transportation, processing, storage, protection, retrieval and disposal.  Brooks is headquartered in Chelmsford, MA, with direct operations in North America, Europe and Asia. For more information, visit 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 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.

CONTACTS:
Lynne Yassemedis                    
Brooks Automation
978.262.2400
lynne.yassemedis@brooks.com

John Mills
Partner
ICR, LLC
646.277.1254
john.mills@icrinc.com



3

BROOKS AUTOMATION, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)
 
June 30,
2016
 
September 30,
2015
Assets
 
 
 
Current assets
 
 
 
Cash and cash equivalents
$
66,116

 
$
80,722

Marketable securities
18

 
70,021

Accounts receivable, net
101,091

 
86,448

Inventories
98,157

 
100,619

Deferred tax assets
3,958

 
17,609

Assets held for sale
2,806

 
2,900

Prepaid expenses and other current assets
21,078

 
15,158

Total current assets
293,224

 
373,477

Property, plant and equipment, net
54,763

 
41,855

Long-term marketable securities
6,068

 
63,287

Long-term deferred tax assets
1,125

 
70,476

Goodwill
202,386

 
121,408

Intangible assets, net
85,646

 
55,446

Equity method investments
26,530

 
24,308

Other assets
12,579

 
9,397

Total assets
$
682,321

 
$
759,654

Liabilities and Stockholders' equity
 
 
 
Current liabilities
 
 
 
Accounts payable
$
41,502

 
$
44,890

Deferred revenue
25,522

 
17,886

Accrued warranty and retrofit costs
5,955

 
6,089

Accrued compensation and benefits
18,031

 
20,401

Accrued restructuring costs
5,789

 
2,073

Accrued income taxes payable
7,168

 
6,111

Deferred tax liabilities
331

 
1,251

Accrued expenses and other current liabilities
17,751

 
15,550

Total current liabilities
122,049

 
114,251

Long-term tax reserves
2,714

 
3,644

Long-term deferred tax liabilities
6,962

 
3,196

Long-term pension liabilities
3,212

 
3,118

Other long-term liabilities
4,329

 
3,400

Total liabilities
139,266

 
127,609

Commitments and contingencies
 
 
 
Stockholders' 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, 82,097,858 shares issued and 68,635,989 shares outstanding at June 30, 2016; 81,093,052 shares issued and 67,631,183 shares outstanding at September 30, 2015
821

 
811

Additional paid-in capital
1,851,292

 
1,846,357

Accumulated other comprehensive income
12,598

 
5,898

Treasury stock at cost- 13,461,869 shares
(200,956
)
 
(200,956
)
Accumulated deficit
(1,120,700
)
 
(1,020,065
)
Total stockholders' equity
543,055

 
632,045

Total liabilities and stockholders' equity
$
682,321

 
$
759,654


4

BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
 
Three Months Ended
June 30,
 
Nine Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Revenue
 
 
 
 
 
 
 
Product
$
111,596

 
$
120,816

 
$
302,238

 
$
336,941

Services
35,938

 
24,078

 
100,532

 
70,002

Total revenue
147,534

 
144,894

 
402,770

 
406,943

Cost of revenue (a)
 
 
 
 
 
 
 
Product
69,557

 
77,128

 
192,816

 
221,877

Services
23,814

 
16,579

 
68,437

 
48,766

Total cost of revenue
93,371

 
93,707

 
261,253

 
270,643

Gross profit
54,163

 
51,187

 
141,517

 
136,300

Operating expenses
 
 
 
 
 
 
 
Research and development
12,819

 
12,834

 
39,208

 
39,001

Selling, general and administrative
31,854

 
27,825

 
98,667

 
86,845

Restructuring and other charges
996

 
358

 
9,807

 
3,711

Total operating expenses
45,669

 
41,017

 
147,682

 
129,557

Operating income (loss)
8,494

 
10,170

 
(6,165
)
 
6,743

Interest income
55

 
199

 
310

 
678

Interest expense
(37
)
 
(100
)
 
(56
)
 
(300
)
Other (loss) income, net
(107
)
 
460

 
(289
)
 
2,640

Income (loss) before income taxes and equity in earnings (losses) of equity method investments
8,405

 
10,729

 
(6,200
)
 
9,761

Income tax provision
220

 
3,340

 
75,070

 
1,790

Income (loss) income before equity in earnings (losses) of equity method investments
8,185

 
7,389

 
(81,270
)
 
7,971

Equity in earnings (losses) of equity method investments
379

 
292

 
1,248

 
(313
)
Net income (loss)
8,564

 
7,681

 
(80,022
)
 
7,658

Basic net income (loss) per share
$
0.12

 
$
0.11

 
$
(1.17
)
 
$
0.11

Diluted net income (loss) per share
$
0.12

 
$
0.11

 
$
(1.17
)
 
$
0.11

Dividend declared per share
$
0.10

 
$
0.10

 
$
0.30

 
$
0.30

 
 
 
 
 
 
 
 
Weighted average shares outstanding used in computing net (loss) income per share:
 
 
 
 
 
 
 
Basic
68,628

 
67,454

 
68,437

 
67,321

Diluted
69,166

 
68,571

 
68,437

 
68,520

 
 
 
 
 
 
 
 
(a) Periods ended June 30, 2016 on a year-to-date basis and June 30, 2015 on a quarter-to-date and year-to-date basis reflect a reclassification correction between the cost of service revenue and the cost of product revenue. Please refer to the Form 10-Q for the quarter ended June 30, 2016.

5

BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)

 
Nine months ended June 30,
 
2016
 
2015
Cash flows from operating activities
 
 
 
Net (loss) income
$
(80,022
)
 
$
7,658

Adjustments to reconcile net (loss) income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
21,320

 
18,929

Stock-based compensation
8,206

 
9,510

Amortization of premium on marketable securities and deferred financing costs
368

 
917

Undistributed (earnings) losses of equity method investments
(1,248
)
 
313

Deferred income tax provision (benefit)
71,875

 
(2,262
)
Gain on disposal of long-lived assets
—

 
(4
)
Changes in operating assets and liabilities, net of acquisitions:
 
 
 
Accounts receivable
2,862

 
(19,070
)
Inventories
2,110

 
(1,519
)
Prepaid expenses and other current assets
(3,909
)
 
(4,881
)
Accounts payable
(4,689
)
 
11,600

Deferred revenue
7,171

 
(2,339
)
Accrued warranty and retrofit costs
(87
)
 
(320
)
Accrued compensation and benefits
(6,558
)
 
(1,907
)
Accrued restructuring costs
3,720

 
(660
)
Accrued expenses and other current liabilities
(5,010
)
 
5,506

Net cash provided by operating activities
16,109

 
21,471

Cash flows from investing activities
 
 
 
Purchases of property, plant and equipment
(9,414
)
 
(5,945
)
Purchases of marketable securities
(12,901
)
 
(58,991
)
Sales and maturities of marketable securities
139,388

 
74,515

Disbursement for a loan receivable
(1,491
)
 
—

Acquisitions, net of cash acquired
(125,498
)
 
(17,257
)
Proceeds from sales of property, plant and equipment
—

 
6

Purchases of other investments
(500
)
 
(5,000
)
Net cash used in investing activities
(10,416
)
 
(12,672
)
Cash flows from financing activities
 
 
 
Proceeds from issuance of common stock
948

 
867

Principal repayments of capital lease obligations
—

 
(368
)
Payment of deferred financing costs
(508
)
 
—

Common stock dividends paid
(20,613
)
 
(20,229
)
Net cash used in financing activities
(20,173
)
 
(19,730
)
Effects of exchange rate changes on cash and cash equivalents
(126
)
 
(3,513
)
Net decrease in cash and cash equivalents
(14,606
)
 
(14,444
)
Cash and cash equivalents, beginning of period
80,722

 
94,114

Cash and cash equivalents, end of period
$
66,116

 
$
79,670


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 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. Tables reconciling GAAP to the non-GAAP measures are presented below.
 
 
 
 
 
Quarter Ended
 
 
 
 
 
June 30, 2016
 
March 31, 2016
 
June 30, 2015
Dollars in thousands, except per share data
$
 
Per Diluted Share
 
$
 
Per Diluted Share
 
$
 
Per Diluted Share
GAAP net (loss) income
$
8,564

 
$
0.12

 
$
(83,939
)
 
$
(1.22
)
 
$
7,681

 
$
0.11

Adjustments:
 
 
 
 
 
 
 
 
 
 
 
Purchase accounting impact on inventory and contracts acquired
125

 
—

 
250

 
—

 
—

 
—

Amortization of intangible assets
3,837

 
0.06

 
3,809

 
0.06

 
3,216

 
0.05

Restructuring charges
996

 
0.01

 
7,336

 
0.11

 
358

 
0.01

Gain on sale of a building
(55
)
 
—

 
—

 
—

 
—

 
—

Liquidation costs due to dissolution of joint venture
—

 
—

 
—

 
—

 
69

 
—

Merger costs
84

 
—

 
215

 
—

 
44

 
—

Change in valuation allowance against deferred tax assets
—

 
—

 
79,340

 
1.15

 
—

 
—

Tax effect of adjustments
(2,423
)
 
(0.04
)
 
(2,091
)
 
(0.03
)
 
(1,091
)
 
(0.02
)
Non-GAAP adjusted net income
11,128

 
0.16

 
4,920

 
0.07

 
10,277

 
0.15

Stock-based compensation, pre-tax
1,637

 
—

 
1,855

 
—

 
2,402

 
—

Tax rate
20
%
 
—

 
16
%
 
—

 
30
%
 
—

Stock-based compensation, net of tax (a)
1,318

 
0.02

 
1,556

 
0.02

 
1,677

 
0.03

Non-GAAP adjusted net income - excluding stock-based compensation
$
12,446

 
$
0.18

 
$
6,476

 
$
0.09

 
$
11,954

 
$
0.17

 
 
 
 
 
 
 
 
 
 
 
 
Shares used in computing non-GAAP diluted net (loss) income per share
—

 
69,166

 
—

 
69,101

 
—

 
68,571

 
 
 
 
 
 
 
 
 
 
 
 
(a) The tax rate represents the effective tax rate on non-GAAP taxable ordinary income. We expanded our disclosure to correct and clarify the after tax impact of stock-based compensation on Non-GAAP adjusted net income and diluted EPS. For additional information on the impact of this correction on prior periods, please refer to the conference call presentation included in Investor Relations section of the Brooks website at www.brooks.com.



7

 
Nine Months Ended
 
June 30, 2016
 
June 30, 2015
Dollars in thousands, except per share data
$
 
Per Diluted Share
 
$
 
Per Diluted Share
GAAP net loss
$
(80,022
)
 
$
(1.17
)
 
$
7,658

 
$
0.11

Adjustments:
 
 
 
 
 
 
 
Purchase accounting impact on inventory and contracts acquired
499

 
0.01

 
1,511

 
0.02

Amortization of intangible assets
11,153

 
0.16

 
9,646

 
0.14

Impairment of equity method investments
—

 
—

 
681

 
0.01

Restructuring charges
9,807

 
0.14

 
3,711

 
0.05

Gain on sale of a building
(55
)
 
—

 
—

 
—

Liquidation costs due to dissolution of joint venture
—

 
—

 
69

 
—

Merger costs
3,295

 
0.05

 
432

 
0.01

Change in valuation allowance against deferred tax assets
79,340

 
1.16

 
—

 
—

Tax effect of adjustments
(6,723
)
 
(0.10
)
 
(4,559
)
 
(0.07
)
Non-GAAP adjusted net income
17,294

 
0.25

 
19,149

 
0.28

Stock-based compensation, pre-tax
8,206

 
—

 
9,510

 
—

Tax rate
24
%
 
—

 
30
%
 
—

Stock-based compensation, net of tax (a)
6,237

 
$
0.09

 
6,657

 
$
0.10

Non-GAAP adjusted net income - excluding stock-based compensation
$
23,531

 
$
0.34

 
$
25,806

 
$
0.38

 
 
 
 
 
 
 
 
Shares used in computing non-GAAP diluted net loss per share
—

 
68,437

 
—

 
68,520

 
 
 
 
 
 
 
 
(a) The tax rate represents the effective tax rate on non-GAAP taxable ordinary income. We expanded our disclosure to correct and clarify the after tax impact of stock-based compensation on Non-GAAP adjusted net income and diluted EPS. For additional information on the impact of this correction on prior periods, please refer to the conference call presentation included in Investor Relations section of the Brooks website at www.brooks.com.
 
Quarter Ended
 
June 30, 2016
 
March 31, 2016
 
June 30, 2015
Dollars in thousands
$
 
%
 
$
 
%
 
$
 
%
GAAP gross profit/gross margin percentage
$
54,163

 
36.7
%
 
$
46,800

 
34.6
%
 
$
51,187

 
35.3
%
Adjustments:
 
 
 
 
 
 
 
 
 
 
 
Amortization of intangible assets
1,083

 
0.7
%
 
718

 
0.5
%
 
1,299

 
0.9
%
Purchase accounting impact on inventory and contracts acquired
125

 
0.1
%
 
250

 
0.2
%
 
—

 
—

Non-GAAP adjusted gross profit/gross margin percentage
$
55,371

 
37.5
%
 
$
47,768

 
35.3
%
 
$
52,486

 
36.2
%

 
Nine Months Ended
 
June 30, 2016
 
June 30, 2015
Dollars in thousands
$
 
%
 
$
 
%
GAAP gross profit/gross margin percentage
$
141,517

 
35.1
%
 
$
136,300

 
33.5
%
Adjustments:
 
 
 
 
 
 
 
Amortization of intangible assets
3,097

 
0.8
%
 
3,903

 
1.0
%
Purchase accounting impact on inventory and contracts acquired
499

 
0.1
%
 
1,511

 
0.4
%
Non-GAAP adjusted gross profit/gross margin percentage
$
145,113

 
36.0
%
 
$
141,714

 
34.8
%



8

 
Quarter Ended
 
Nine Months Ended
 
June 30,
 
March 31,
 
June 30,
 
June 30,
 
June 30,
Dollars in thousands
2016
 
2016
 
2015
 
2016
 
2015
GAAP net (loss) income
$
8,564

 
$
(83,939
)
 
$
7,681

 
$
(80,022
)
 
$
7,658

Adjustments:
 
 
 
 
 
 
 
 
 
Less: Interest income
(55
)
 
(50
)
 
(199
)
 
(310
)
 
(678
)
Add: Interest expense
37

 
16

 
100

 
56

 
300

Add: Income tax provision (benefit)
220

 
78,220

 
3,340

 
75,070

 
1,790

Add: Depreciation
3,633

 
3,596

 
2,979

 
10,167

 
9,281

Add: Amortization of completed technology
1,083

 
718

 
1,299

 
3,097

 
3,903

Add: Amortization of customer relationships and acquired intangible assets
2,754

 
3,091

 
1,917

 
8,056

 
5,743

Earnings (losses) before interest, taxes, depreciation and amortization
$
16,236

 
$
1,652

 
$
17,117

 
$
16,114

 
$
27,997


 
Quarter Ended
 
Nine Months Ended
 
June 30,
 
March 31,
 
June 30,
 
June 30,
 
June 30
Dollars in thousands
2016
 
2016
 
2015
 
2016
 
2015
Earnings (losses) before interest, taxes, depreciation and amortization
$
16,236

 
$
1,652

 
$
17,117

 
$
16,112

 
$
27,997

Adjustments:
 
 
 
 
 
 
 
 
 
Add: Stock-based compensation
1,637

 
1,855

 
2,402

 
8,206

 
9,510

Add: Restructuring charges
996

 
7,336

 
358

 
9,807

 
3,711

Add: Purchase accounting impact on inventory and contracts acquired
125

 
250

 
—

 
499

 
1,511

Less: Gain on sale of a building
(55
)
 
—

 
—

 
(55
)
 
—

Add: Liquidation of a joint venture
—

 
—

 
69

 
—

 
69

Add: Merger costs
84

 
215

 
44

 
3,295

 
432

Add: Impairment of equity method investments
—

 
—

 
—

 
—

 
681

Adjusted earnings before interest, taxes, depreciation and amortization
$
19,023

 
$
11,308

 
$
19,990

 
$
37,864

 
$
43,911


 
Quarter Ended
 
Nine Months Ended
 
June 30,
 
March 31,
 
June 30,
 
June 30,
 
June 30,
Dollars in thousands
2016
 
2016
 
2015
 
2016
 
2015
GAAP selling, general and administrative expenses
$
31,854

 
$
32,692

 
$
27,825

 
$
98,667

 
$
86,845

Adjustments:
 
 
 
 
 
 
 
 
 
Less: Amortization of customer relationships and acquired intangible assets
(2,754
)
 
(3,091
)
 
(1,917
)
 
(8,056
)
 
(5,743
)
Less: Merger costs
(84
)
 
(215
)
 
(44
)
 
(3,295
)
 
(432
)
Non-GAAP adjusted selling, general and administrative expenses
$
29,016

 
$
29,386

 
$
25,864

 
$
87,316

 
$
80,670

Research and development expenses
$
12,819

 
$
13,111

 
$
12,834

 
$
39,208

 
$
39,001

Non-GAAP adjusted operating expenses
$
41,835

 
$
42,497

 
$
38,698

 
$
126,524

 
$
119,671



9

 
Brooks Semiconductor Solutions Group
 
Brooks Life Science Systems
 
Quarter Ended
 
Quarter Ended
Dollars in thousands
June 30, 2016
 
March 31, 2016
 
June 30, 2015
 
June 30, 2016
 
March 31, 2016
 
June 30, 2015
GAAP gross profit
$
42,904

 
$
36,943

 
$
46,515

 
$
11,259

 
$
9,857

 
$
4,672

Adjustments:
 
 
 
 
 
 
 
 
 
 
 
Amortization of intangible assets
711

 
390

 
901

 
372

 
328

 
398

Purchase accounting impact on inventory and contracts acquired
125

 
250

 
—

 
—

 
—

 
—

Non-GAAP adjusted gross profit
$
43,740

 
$
37,583

 
$
47,416

 
$
11,631

 
$
10,185

 
$
5,070



 
Brooks Semiconductor Solutions Group
 
Brooks Life Science Systems
 
Nine Month Ended
 
Nine Month Ended
Dollars in thousands
June 30, 2016
 
June 30, 2015
 
June 30, 2016
 
June 30, 2015
GAAP gross profit
$
114,506

 
$
122,938

 
$
27,011

 
$
13,362

Adjustments:
 
 
 
 
 
 
 
Amortization of intangible assets
2,005

 
2,706

 
1,093

 
1,197

Purchase accounting impact on inventory and contracts acquired
500

 
551

 
—

 
960

Non-GAAP adjusted gross profit
$
117,011

 
$
126,195

 
$
28,104

 
$
15,519



 
Brooks Semiconductor Solutions Group
 
Brooks Life Science Systems
 
Quarter Ended
 
Quarter Ended
Dollars in thousands
June 30, 2016
 
March 31, 2016
 
June 30, 2015
 
June 30, 2016
 
March 31, 2016
 
June 31, 2015
GAAP gross margin
36.2
%
 
33.9
%
 
36.3
%
 
38.7
%
 
37.2
%
 
27.8
%
Adjustments:
 
 
 
 
 
 
 
 
 
 
 
Amortization of intangible assets
0.6
%
 
0.4
%
 
0.7
%
 
1.3
%
 
1.2
%
 
2.4
%
Purchase accounting impact on inventory and contracts acquired
0.1
%
 
0.2
%
 
—

 
—

 
—

 
—

Non-GAAP adjusted gross margin
36.9
%
 
34.5
%
 
37
%
 
40.0
%
 
38.5
%
 
30.2
%



10

 
Brooks Semiconductor Solutions Group
 
Brooks Life Science Systems
 
Nine Month Ended
 
Nine Month Ended
Dollars in thousands
June 30, 2016
 
June 30, 2015
 
June 30, 2016
 
June 30, 2015
GAAP gross margin
35.1
%
 
34.5
%
 
35.3
%
 
26.2
%
Adjustments:
 
 
 
 
 
 
 
Amortization of intangible assets
0.6
%
 
0.8
%
 
1.4
%
 
2.3
%
Purchase accounting impact on inventory and contracts acquired
0.2
%
 
0.2
%
 
—

 
1.9
%
Non-GAAP adjusted gross margin
35.9
%
 
35.5
%
 
36.8
%
 
30.4
%


11