EX-99.1 2 b76681exv99w1.htm EX-99.1 PRESS RELEASE ISSUED ON AUGUST 6, 2009 exv99w1
Exhibit 99.1
(BROOKS AUTOMATION LOGO)

Press Release
For Immediate Release
August 6, 2009
Brooks Automation Reports THIRD Quarter Financial Results
Chelmsford, Massachusetts August 6, 2009 — Brooks Automation, Inc. (Nasdaq: BRKS) announced financial results for the Company’s third quarter of fiscal year 2009 ended on June 30, 2009.
Revenues for the third quarter of 2009 were $43.9 million, compared to revenues of $124.0 million in the third quarter of 2008, a decrease of 64.6%. Sequentially, revenues grew 17.6% from second quarter revenues of $37.3 million.
Net loss for the third quarter of fiscal 2009 amounted to $25.7 million, or $0.41 per diluted share. Excluding special charges totaling $2.7 million, the non-GAAP net loss for the third quarter of fiscal 2009 was $23.0 million, or $0.37 per diluted share. The special charges taken during the quarter were $2.3 million of restructuring charges, primarily for severance and $0.4 million of asset impairments associated with closing one of the company’s facilities.
The fiscal 2009 third quarter results compare with a net loss from continuing operations of $10.3 million, or $0.17 per diluted share in the third quarter of the prior year. Sequentially, the net loss was $152.5 million or $2.43 per diluted share in the second quarter of 2009. Excluding special charges, the net loss from continuing operations for the third quarter of the prior year was $7.8 million, or $0.12 per diluted share. Sequentially, the net loss for the second quarter excluding special charges, was $36.2 million or $0.58 per diluted share. Special charges are identified in the tables to this release.
Adjusted Earnings (Loss) before Interest, Tax, Depreciation and Amortization for the third quarter of fiscal 2009 was ($17.2) million, which compared to $1.8 million in the prior year period and ($26.7) million in the second quarter of fiscal 2009. Effective working capital management and reduced levels of losses reduced the sequential use of cash for operations to $16.0 million during the quarter. The Company closed the quarter with $114.4 million of cash and marketable securities.
Revenues for the nine months ended June 30, 2009 were $154.6 million, a 63.1% decrease from the prior period revenues of $419.5 million. The loss from continuing operations for the current fiscal nine month period was $213.4 million, as compared to the prior year’s net loss of $20.4 million. Excluding special charges of $124.4 million in the current fiscal year and $8.6 million in the prior year, the loss from continuing operations before special charges was $89.0 million or $1.42 per share and $11.8 million or $0.18 per share, respectively. Special charges are identified in the tables to this release.
— more —
Brooks Automation, Inc. w15 Elizabeth Drive w Chelmsford, Massachusetts 01824 w (978)262-2400 w www.brooks.com.

 


 

Brooks Automation Reports third Quarter Financial Results...................page two
Commenting on recent activities, Robert J. Lepofsky, President and Chief Executive Officer of Brooks stated, “We have experienced accelerating revenue growth as the quarter progressed which, combined with the benefits of our restructuring activities, narrowed the losses during the quarter. We see continuing momentum, particularly for our semiconductor business, and our internal plans are for sequential revenue growth of at least 25% in the September ending quarter. In addition, our use of cash continues to substantially diminish as we maintain our focus on working capital management programs and we move beyond the use of cash for restructuring and IT investments. We are delivering the expected high drop-thru on every incremental dollar of revenue as projected in our business model which will accelerate our return to profitability. The recovery in the semiconductor capital equipment industry is progressing and Brooks’ leadership position as a strategic extension of our customer’s engineering, manufacturing and product support capabilities is clearly strengthening. With increasing revenues, important design-in wins, the improving utilization rates of existing wafer fabs driving our Global Customer Operations business, and the expected returns from our product development initiatives across multiple market sectors, we believe Brooks will emerge from the current business downturn very well positioned to deliver excellent returns to our shareholders.”
A reconciliation of non-GAAP measures to the most nearly comparable GAAP measure follows the consolidated statements of operations, balance sheets and statements of cash flows attached to this release.
Brooks management will webcast its June quarter earnings conference call on Thursday, August 6, 2009 at 4:30 p.m. Eastern Time to discuss the attached quarterly results and 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.
Analysts, investors and members of the media can access the live broadcast available on Brooks’ website at www.brooks.com. The call will be archived on this website for convenient on-demand replay until Brooks reports fiscal 2009 fourth quarter results in mid-November, 2009.
# # #
About Brooks Automation, Inc.
Brooks is a leading worldwide provider of automation, vacuum and instrumentation solutions to the global semiconductor and related industries. The company’s advanced offerings in hardware and services are critical to customers where equipment productivity and availability are essential for successful manufacturing. Brooks’ products and global services are used in virtually every fab in the world as well as in a number of diverse industries outside semiconductor manufacturing. For more information see www.brooks.com or email co.csr@brooks.com.
Brooks Automation, Inc. w 15 Elizabeth Drive w Chelmsford, Massachusetts 01824 w (978)262-2400 w www.brooks.com.

 


 

Brooks Automation Reports Third Quarter Financial Results..................page three
“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 profit and loss and cash flow expectations 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 increased 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; intense price competition; disputes concerning intellectual property; expenses associated with legal disputes and litigation, continuing uncertainties in global political and economic conditions, the impact of global health concerns, 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.
Contact:
Barbara Culhane
Corporate Marketing Manager
Brooks Automation, Inc.
978-262-2400
www.brooks.com
Brooks Automation, Inc. w 15 Elizabeth Drive w Chelmsford, Massachusetts 01824 w (978)262-2400 w www.brooks.com.

 


 

BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
                                 
    Three months ended     Nine months ended  
    June 30,     June 30,  
    2009     2008     2009     2008  
Revenues
                               
Product
  $ 31,510     $ 105,774     $ 116,479     $ 367,157  
Services
    12,366       18,242       38,142       52,339  
 
                       
Total revenues
    43,876       124,016       154,621       419,496  
 
                       
Cost of revenues
                               
Product
    29,301       78,308       115,078       266,798  
Services
    10,617       16,851       36,477       48,953  
Impairment of long-lived assets
    408             20,924        
 
                       
Total cost of revenues
    40,326       95,159       172,479       315,751  
 
                       
Gross profit (loss)
    3,550       28,857       (17,858 )     103,745  
 
                       
Operating expenses
                               
Research and development
    7,549       10,270       24,492       34,255  
Selling, general and administrative
    19,559       25,636       72,400       84,635  
Impairment of goodwill
                71,800        
Impairment of long-lived assets
                14,588        
Restructuring charges
    2,327       2,571       12,293       5,677  
 
                       
Total operating expenses
    29,435       38,477       195,573       124,567  
 
                       
Operating loss from continuing operations
    (25,855 )     (9,620 )     (213,431 )     (20,822 )
Interest income
    536       1,237       2,079       6,252  
Interest expense
    60       93       258       536  
Loss on investment
                1,185       2,931  
Other (income) expense, net
    (114 )     1,244       35       426  
 
                       
Loss from continuing operations before income taxes and minority interests
    (25,295 )     (9,720 )     (212,830 )     (18,463 )
Income tax provision
    148       843       728       2,398  
 
                       
Loss from continuing operations before minority interests
    (25,443 )     (10,563 )     (213,558 )     (20,861 )
Minority interests in income of consolidated subsidiaries
    240       (13 )     63       (5 )
Equity in earnings of joint ventures
    (59 )     224       253       447  
 
                       
Loss from continuing operations
    (25,742 )     (10,326 )     (213,368 )     (20,409 )
Gain on sale of discontinued operations, net of income taxes
                      371  
 
                       
Income from discontinued operations, net of income taxes
                      371  
 
                       
Net loss
  $ (25,742 )   $ (10,326 )   $ (213,368 )   $ (20,038 )
 
                       
Basic loss per share from continuing operations
  $ (0.41 )   $ (0.17 )   $ (3.40 )   $ (0.31 )
Basic income per share from discontinued operations
                      0.01  
 
                       
Basic net loss per share
  $ (0.41 )   $ (0.17 )   $ (3.40 )   $ (0.31 )
 
                       
Diluted loss per share from continuing operations
  $ (0.41 )   $ (0.17 )   $ (3.40 )   $ (0.31 )
Diluted income per share from discontinued operations
                      0.01  
 
                       
Diluted net loss per share
  $ (0.41 )   $ (0.17 )   $ (3.40 )   $ (0.31 )
 
                       
Shares used in computing income (loss) per share
                               
Basic
    63,011       62,483       62,835       65,196  
Diluted
    63,011       62,483       62,835       65,196  
Brooks Automation, Inc. w 15 Elizabeth Drive w Chelmsford, Massachusetts 01824 w (978)262-2400 w www.brooks.com.

 


 

BROOKS AUTOMATION, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)
                 
    June 30,     September 30,  
    2009     2008  
Assets
               
Current assets
               
Cash and cash equivalents
  $ 52,936     $ 110,269  
Marketable securities
    35,313       33,077  
Accounts receivable, net
    28,108       66,844  
Insurance receivable for litigation
    343       8,772  
Inventories, net
    91,404       105,901  
Prepaid expenses and other current assets
    9,149       13,783  
 
           
Total current assets
    217,253       338,646  
Property, plant and equipment, net
    78,393       81,604  
Long-term marketable securities
    26,159       33,935  
Goodwill
    48,138       119,979  
Intangible assets, net
    14,909       58,452  
Equity investment in joint ventures
    28,730       26,309  
Other assets
    3,502       4,713  
 
           
Total assets
  $ 417,084     $ 663,638  
 
           
Liabilities, minority interests and stockholders’ equity
               
Current liabilities
               
Accounts payable
  $ 15,700     $ 37,248  
Deferred revenue
    2,884       3,553  
Accrued warranty and retrofit costs
    5,621       8,174  
Accrued compensation and benefits
    13,071       18,174  
Accrued restructuring costs
    8,030       7,167  
Accrued income taxes payable
    2,702       3,151  
Accrual for litigation settlement
          7,750  
Accrued expenses and other current liabilities
    14,063       17,634  
 
           
Total current liabilities
    62,071       102,851  
Accrued long-term restructuring
    2,707       5,496  
Income taxes payable
    10,649       10,649  
Long-term pension liability
    6,243        
Other long-term liabilities
    2,699       2,238  
 
           
Total liabilities
    84,369       121,234  
 
           
Contingencies Minority interests
    471       409  
 
           
Stockholders’ equity
               
Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued and outstanding
           
Common stock, $0.01 par value, 125,000,000 shares authorized, 77,740,154 shares issued and 64,278,285 shares outstanding at June 30, 2009, 77,044,737 shares issued and 63,582,868 shares outstanding at September 30, 2008
    777       770  
Additional paid-in capital
    1,794,287       1,788,891  
Accumulated other comprehensive income
    16,277       18,063  
Treasury stock at cost, 13,461,869 shares at June 30, 2009 and September 30, 2008
    (200,956 )     (200,956 )
Accumulated deficit
    (1,278,141 )     (1,064,773 )
 
           
Total stockholders’ equity
    332,244       541,995  
 
           
Total liabilities, minority interests and stockholders’ equity
  $ 417,084     $ 663,638  
 
           
Brooks Automation, Inc. w 15 Elizabeth Drive w Chelmsford, Massachusetts 01824 w (978)262-2400 w www.brooks.com.

 


 

BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
                 
    Nine months ended  
    June 30,  
    2009     2008  
Cash flows from operating activities
               
Net loss
  $ (213,368 )   $ (20,038 )
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
               
Depreciation and amortization
    20,841       25,867  
Impairment of goodwill
    71,800        
Impairment of long-lived assets
    35,512        
Stock-based compensation
    5,007       5,612  
Amortization of discount on marketable securities
    70       (782 )
Undistributed earnings of joint ventures
    (253 )     (447 )
Minority interests
    63       (5 )
(Gain) loss on disposal of long-lived assets
    (12 )     925  
Loss on investment
    1,185       2,931  
Gain on sale of software division, net
          (371 )
Changes in operating assets and liabilities, net of acquisitions and disposals:
               
Accounts receivable
    38,432       32,220  
Inventories
    14,324       (5,138 )
Prepaid expenses and other current assets
    5,199       2,469  
Accounts payable
    (21,533 )     (18,344 )
Deferred revenue
    (658 )     (1,578 )
Accrued warranty and retrofit costs
    (2,558 )     (2,454 )
Accrued compensation and benefits
    (4,313 )     (6,906 )
Accrued restructuring costs
    (1,902 )     (1,356 )
Accrued expenses and other current liabilities
    (757 )     (5,974 )
 
           
Net cash provided by (used in) operating activities
    (52,921 )     6,631  
 
           
Cash flows from investing activities
               
Purchases of property, plant and equipment
    (10,843 )     (17,235 )
Purchases of marketable securities
    (53,316 )     (137,156 )
Sale/maturity of marketable securities
    58,903       174,973  
Proceeds from sale of software division
          1,500  
Proceeds from the sale of long-lived assets
    1,093        
Purchases of intangible assets
    (38 )     (75 )
 
           
Net cash provided by (used in) investing activities
    (4,201 )     22,007  
 
           
Cash flows from financing activities
               
Treasury stock purchases
          (90,194 )
Proceeds from issuance of common stock, net of issuance costs
    675       1,473  
 
           
Net cash provided by (used in) financing activities
    675       (88,721 )
 
           
Effects of exchange rate changes on cash and cash equivalents
    (886 )     1,813  
 
           
Net decrease in cash and cash equivalents
    (57,333 )     (58,270 )
Cash and cash equivalents, beginning of period
    110,269       168,232  
 
           
Cash and cash equivalents, end of period
  $ 52,936     $ 109,962  
 
           
Brooks Automation, Inc. w 15 Elizabeth Drive w Chelmsford, Massachusetts 01824 w (978)262-2400 w www.brooks.com.

 


 

BROOKS AUTOMATION, INC.
Supplemental Information
(In thousands, except per share data)
(unaudited)
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 charges associated with our non-cash impairment charges, restructuring programs and gains or losses on investments. 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 continuing operations is presented below:
Brooks Automation, Inc. w 15 Elizabeth Drive w Chelmsford, Massachusetts 01824 w (978)262-2400 w www.brooks.com.

 


 

                                                 
    Quarter ended  
    June 30, 2009     March 31, 2009     June 30, 2008  
    $     per share     $     per share     $     per share  
Loss from continuing operations
  $ (25,742 )   $ (0.41 )   $ (152,543 )   $ (2.43 )   $ (10,326 )   $ (0.17 )
 
                                               
Impairment charges — cost of revenues
    408       0.01       20,516       0.33              
Impairment charges — operating expense
                86,388       1.37              
Restructuring charges
    2,327       0.04       5,861       0.09       2,571       0.04  
Restructuring related inventory charges
                3,612       0.06              
Loss on investment
                                   
 
 
                                   
Adjusted loss from continuing operations
  $ (23,007 )   $ (0.37 )   $ (36,166 )   $ (0.58 )   $ (7,755 )   $ (0.12 )
 
                                   
                                 
    Nine months ended  
    June 30, 2009     June 30, 2008  
    $     per share     $     per share  
Loss from continuing operations
  $ (213,368 )   $ (3.40 )   $ (20,409 )   $ (0.31 )
 
                               
Impairment charges — cost of revenues
    20,924       0.33              
Impairment charges — operating expense
    86,388       1.37              
Restructuring charges
    12,293       0.20       5,677       0.09  
Restructuring related inventory charges
    3,612       0.06              
Loss on investment
    1,185       0.02       2,931       0.04  
 
 
                       
Adjusted loss from continuing operations
  $ (88,966 )   $ (1.42 )   $ (11,801 )   $ (0.18 )
 
                       
                                         
    Quarter ended     Nine months ended  
    June 30,     Mar 31,     June 30,     June 30,     June 30,  
    2009     2009     2008     2009     2008  
Loss from continuing operations
  $ (25,742 )   $ (152,543 )   $ (10,326 )     (213,368 )     (20,409 )
 
Less: Interest income
    (536 )     (646 )     (1,237 )     (2,079 )     (6,252 )
Add: Interest expense
    60       72       93       258       536  
Add: Income tax provision (benefit)
    148       189       843       728       2,398  
Add: Depreciation
    3,679       3,620       4,718       11,455       13,616  
Add: Amortization of completed technology
    457       2,331       2,331       5,119       6,993  
Add; Amortization of acquired intangible assets
    381       1,993       1,786       4,267       5,258  
Add: Stock compensation expense
    1,613       1,870       1,069       5,007       5,612  
Add: Restructuring related inventory charges
          3,612             3,612        
Add: Impairment charges — cost of revenues
    408       20,516             20,924        
Add: Impairment charges — operating expense
          86,388             86,388        
Add: Restructuring charges
    2,327       5,861       2,571       12,293       5,677  
Add: Loss on investment
                      1,185       2,931  
 
                             
 
Adjusted EBITDA
  $ (17,205 )   $ (26,737 )   $ 1,848     $ (64,211 )   $ 16,360  
 
                             
Brooks Automation, Inc. w 15 Elizabeth Drive w Chelmsford, Massachusetts 01824 w (978)262-2400 w www.brooks.com.