EX-99.1 2 b80849exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
(BROOKS AUTOMATION LOGO)
For Immediate Release
May 6, 2010
Brooks Automation Reports Second Quarter Financial Results
Chelmsford, Massachusetts May 6, 2010 — Brooks Automation, Inc. (Nasdaq: BRKS) announced financial results for the Company’s second quarter of fiscal year 2010 ended on March 31, 2010.
Revenues for the second quarter of 2010 were $148.4 million, compared to revenues of $37.3 million in the second quarter of 2009, an increase of 297.7%. Sequentially, revenues grew 39.7% from first quarter revenues of $106.2 million.
Net income attributable to Brooks Automation, Inc. (“Brooks”) for the second quarter of fiscal 2010 amounted to $21.0 million, or $0.33 per diluted share. Excluding non-recurring income and special charges the non-GAAP adjusted net income attributable to Brooks for the second quarter of fiscal 2010 was $10.1 million, or $0.16 per diluted share. Non-recurring income during the quarter was a $7.5 million after tax gain from the sale of intellectual property rights and a $3.9 million tax credit from the application of favorable loss carry back provisions introduced by the Worker, Home Ownership and Business Assistance Act. Special charges taken during the quarter were $0.5 million of residual restructuring charges related to past restructuring plans.
The fiscal 2010 second quarter results compare with a net loss attributable to Brooks of $152.5 million, or $2.43 per diluted share in the second quarter of the prior year. Sequentially, the net loss attributable to Brooks was $(2.8) million or $(0.04) per diluted share in the first quarter of 2010. Excluding special charges, the adjusted net loss attributable to Brooks for the second quarter of the prior year was $(36.2) million, or $(0.58) per diluted share. Sequentially, the adjusted net loss for the first quarter, excluding special charges, was $(1.1) million or $(0.02) per diluted share. Special charges are identified in the table included with this release.
Adjusted Earnings (Loss) before Interest, Tax, Depreciation and Amortization for the second quarter of fiscal 2010 was $17.3 million, which compared to ($26.7) million in the prior year period and $5.6 million in the first quarter of fiscal 2010. 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 included in this release.
Net cash provided by operating activities for the first half of fiscal 2010 was $9.3 million, which together with proceeds from the sale of intellectual property rights of $7.8 million resulted in an increase of total cash and marketable securities to $125.8 million.
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Brooks Automation Reports Second Quarter Financial Results
page two
Revenues for the six months ended March 31, 2010 were $254.6 million, a 129.9% increase from $110.7 million for the same prior fiscal year period. Net income attributable to Brooks for the current fiscal year to date was $18.2 million, as compared to the prior year period’s net loss of $187.6 million. Excluding non-recurring income and special charges, the adjusted income (loss) from operations was $9.0 million or $0.14 per diluted share in the first half of fiscal 2010 as compared to $(66.0) million or $(1.05) per diluted share in the same prior fiscal year period. Non-recurring income and special charges are identified in the unaudited financial information included in this release.
Commenting on recent activities, Robert J. Lepofsky, Chief Executive Officer of Brooks stated, “Strong demand from our major semiconductor OEM customers drove revenue up 40% sequentially over the December quarter with good profitability. Looking forward, we see solid margin expansion on modest sequential revenue gains in the June quarter and we expect revenue momentum to again accelerate later in the year.”
Mr. Lepofsky added, “In addition to managing the production ramp associated with the 238% increase in revenues we saw over the past nine months, the Company maintained its focus on key strategic initiatives. During the March quarter we continued to have numerous favorable engagements that we believe will drive future business in adjacent markets as well as our core semiconductor business. We have expanded our work with leading LED equipment OEM’s and the launch of our Simplicity Solutions instrumentation product line has generated significant market interest. Finally, our capability to successfully execute an accelerating growth plan has been enhanced with key additions to our team including the recruitment of Steve Schwartz as the new President of Brooks.”
Brooks management will webcast its second quarter earnings conference today 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.
# # #
About Brooks Automation, Inc.
Brooks is a leading worldwide provider of automation, vacuum and instrumentation solutions to the global semiconductor and related industries. Our products and services are meeting the needs of customers across a broad spectrum of applications and industries and the global semiconductor manufacturing sector is our largest served market. When demanding productivity and availability objectives are essential factors for success, customers throughout the world turn to Brooks Automation, Inc. For more information go to www.brooks.com or email sales@brooks.com.

 

 

Brooks Automation Reports Second 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, our ability to deveop 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 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; price competition; disputes concerning intellectual property; 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.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)
                 
    March 31,     September 30,  
    2010     2009  
Assets
                
Current assets
                
Cash and cash equivalents
   $ 48,621     $ 59,985  
Marketable securities
     35,804       28,046  
Accounts receivable, net
     67,584       38,428  
Inventories, net
     103,528       84,738  
Prepaid expenses and other current assets
     13,939       9,992  
 
            
Total current assets
     269,476       221,189  
Property, plant and equipment, net
     68,420       74,793  
Long-term marketable securities
     41,335       22,490  
Goodwill
     48,138       48,138  
Intangible assets, net
     13,063       14,081  
Equity investment in joint ventures
     28,962       29,470  
Other assets
     2,613       3,161  
 
            
Total assets
   $ 472,007     $ 413,322  
 
            
Liabilities and equity
                
Current liabilities
                
Accounts payable
   $ 66,721     $ 26,360  
Deferred revenue
     3,917       2,916  
Accrued warranty and retrofit costs
     7,122       5,698  
Accrued compensation and benefits
     11,232       14,317  
Accrued restructuring costs
     4,434       5,642  
Accrued income taxes payable
     2,197       2,686  
Accrued expenses and other current liabilities
     10,753       12,870  
 
            
Total current liabilities
     106,376       70,489  
Accrued long-term restructuring
     1,344       2,019  
Income taxes payable
     11,097       10,755  
Long-term pension liability
     8,249       7,913  
Other long-term liabilities
     2,630       2,523  
 
            
Total liabilities
     129,696       93,699  
 
            
Contingencies
                
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, 78,453,069 shares issued and 64,991,200 shares outstanding at March 31, 2010, 77,883,173 shares issued and 64,421,304 shares outstanding at September 30, 2009
     785       779  
Additional paid-in capital
     1,799,781       1,795,619  
Accumulated other comprehensive income
     16,766       16,318  
Treasury stock at cost, 13,461,869 shares at March 31, 2010 and September 30, 2009
     (200,956 )     (200,956 )
Accumulated deficit
     (1,274,397 )     (1,292,631 )
 
            
Total Brooks Automation, Inc. stockholders’ equity
     341,979       319,129  
Noncontrolling interest in subsidiaries
     332       494  
 
            
Total equity
     342,311       319,623  
 
            
Total liabilities and equity
   $ 472,007     $ 413,322  
 
            

 

 

BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
                                 
    Three months ended     Six months ended  
    March 31,     March 31,  
    2010     2009     2010     2009  
Revenues
                                
Product
   $ 133,389     $ 25,883     $ 224,910     $ 84,969  
Services
     14,964       11,416       29,640       25,776  
 
                        
Total revenues
     148,353       37,299       254,550       110,745  
 
                        
Cost of revenues
                                
Product
     97,271       31,909       164,516       85,778  
Services
     12,132       12,670       24,838       25,859  
Impairment of long-lived assets
     —       20,516       —       20,516  
 
                        
Total cost of revenues
     109,403       65,095       189,354       132,153  
 
                        
Gross profit (loss)
     38,950       (27,796 )     65,196       (21,408 )
 
                        
Operating expenses
                                
Research and development
     7,677       7,666       15,218       16,943  
Selling, general and administrative
     20,842       25,207       39,821       52,841  
Impairment of goodwill
     —       71,800       —       71,800  
Impairment of long-lived assets
     —       14,588       —       14,588  
Restructuring charges
     484       5,861       2,006       9,966  
 
                        
Total operating expenses
     29,003       125,122       57,045       166,138  
 
                        
Operating income (loss)
     9,947       (152,918 )     8,151       (187,546 )
Interest income
     265       646       593       1,543  
Interest expense
     11       72       27       198  
Sale of intellectual property rights
     7,840       —       7,840       —  
Loss on investment
     —       —       191       1,185  
Other expense, net
     91       111       288       149  
 
                        
Income (loss) before income taxes and equity in earnings (losses) of joint ventures
     17,950       (152,455 )     16,078       (187,535 )
Income tax provision (benefit)
     (2,819 )     189       (2,184 )     580  
 
                        
Income (loss) before equity in earnings (losses) of joint ventures
     20,769       (152,644 )     18,262       (188,115 )
Equity in earnings (losses) of joint ventures
     179       11       (191 )     312  
 
                        
Net income (loss)
   $ 20,948     $ (152,633 )   $ 18,071     $ (187,803 )
Add: Net loss attributable to noncontrolling interests
     81       90       163       177  
 
                        
Net income (loss) attributable to Brooks Automation, Inc.
   $ 21,029     $ (152,543 )   $ 18,234     $ (187,626 )
 
                        
 
                                
Basic net income (loss) per share attributable to Brooks Automation, Inc. common stockholders
   $ 0.33     $ (2.43 )   $ 0.29     $ (2.99 )
 
                        
Diluted net income (loss) per share attributable to Brooks Automation, Inc. common stockholders
   $ 0.33     $ (2.43 )   $ 0.28     $ (2.99 )
 
                        
Shares used in computing earnings (loss) per share
                                
Basic
     63,679       62,844       63,535       62,747  
Diluted
     64,196       62,844       64,042       62,747  

 

 

BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
                 
    Six months ended  
    March 31,  
    2010     2009  
Cash flows from operating activities
                
Net income (loss)
   $ 18,071     $ (187,803 )
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
                
Depreciation and amortization
     9,460       16,324  
Impairment of goodwill
     —       71,800  
Impairment of long-lived assets
     —       35,104  
Sale of intellectual property rights
     (7,840 )     —  
Stock-based compensation
     3,561       3,394  
Amortization of premium on marketable securities
     368       19  
Undistributed (earnings) losses of joint ventures
     191       (312 )
(Gain) loss on disposal of long-lived assets
     (4 )     70  
Loss on investment
     191       1,185  
Changes in operating assets and liabilities, net of acquisitions and disposals:
                
Accounts receivable
     (29,258 )     40,688  
Inventories
     (19,653 )     6,522  
Prepaid expenses and other current assets
     (4,132 )     4,254  
Accounts payable
     40,424       (21,109 )
Deferred revenue
     1,062       (1,151 )
Accrued warranty and retrofit costs
     1,414       (1,502 )
Accrued compensation and benefits
     (2,972 )     (3,486 )
Accrued restructuring costs
     (1,857 )     1,898  
Accrued expenses and other
     235       (2,820 )
 
            
Net cash provided by (used in) operating activities
     9,261       (36,925 )
 
            
Cash flows from investing activities
                
Purchases of property, plant and equipment
     (1,163 )     (9.091 )
Purchases of marketable securities
     (70,872 )     (50,539 )
Sale/maturity of marketable securities
     43,757       36,735  
Proceeds from the sale of intellectual property rights
     7,840       —  
Purchase of intangible assets
     (892 )     —  
Other
     243       —  
 
            
Net cash used in investing activities
     (21,087 )     (22,895 )
 
            
Cash flows from financing activities
                
Proceeds from issuance of common stock, net of issuance costs
     590       675  
 
            
Net cash provided by financing activities
     590       675  
 
            
Effects of exchange rate changes on cash and cash equivalents
     (128 )     (1,967 )
 
            
Net decrease in cash and cash equivalents
     (11,364 )     (61,112 )
Cash and cash equivalents, beginning of period
     59,985       110,269  
 
            
Cash and cash equivalents, end of period
   $ 48,621     $ 49,157  
 
            
Brooks Automation, Inc. ♦ 15 Elizabeth Drive ♦ Chelmsford, Massachusetts 01824 ♦ (978)262-2400 ♦ 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 non-recurring income and charges such as the sale of intellectual property rights, one-time tax refunds, non-cash impairment charges, restructuring charges 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. ♦ 15 Elizabeth Drive ♦ Chelmsford, Massachusetts 01824 ♦ (978)262-2400 ♦ www.brooks.com

 

                                                 
    Quarter ended  
    March 31, 2010     December 31, 2009     March 31, 2009  
    $     per share     $     per share     $     per share  
Net income (loss) attributable to Brooks Automation, Inc.
   $ 21,029     $ 0.33     $ (2,795 )   $ (0.04 )   $ (152,543 )   $ (2.43 )
 
                                                
Impairment charges — cost of revenues
     —       —       —       —       20,516       0.33  
Impairment charges — operating expense
     —       —       —       —       86,388       1.37  
Restructuring charges
     484       0.01       1,522       0.02       5,861       0.09  
Restructuring related inventory charges
     —       —       —       —       3,612       0.06  
Loss on investment
     —       —       191       0.00       —       —  
One-time income tax benefit
     (3,899 )     (0.06 )                                
Sale of intellectual property rights, net of tax
     (7,519 )   $ (0.12 )                                
 
                                    
Adjusted net income (loss) attributable to Brooks Automation, Inc.
     10,095       0.16       (1,082 )     (0.02 )     (36,166 )     (0.58 )
 
                                                
Stock-based compensation
     2,044       0.03       1,517     $ 0.02       1,870       0.03  
 
                                    
Adjusted net income (loss) attributable to Brooks Automation, Inc. - excluding stock-based compensation
   $ 12,139     $ 0.19     $ 435     $ 0.01     $ (34,296 )   $ (0.55 )
 
                                    
                                 
    Six Months Ended  
    March 31, 2010     March 31, 2009  
    $     per share     $     per share  
Net income (loss) attributable to Brooks Automation, Inc.
   $ 18,234     $ 0.28     $ (187,626 )   $ (2.99 )
 
                                
Impairment charges — cost of revenues
     —       —       20,516       0.33  
Impairment charges — operating expense
     —       —       86,388       1.38  
Restructuring charges
     2,006       0.03       9,966       0.16  
Restructuring related inventory charges
     —       —       3,612       0.06  
Loss on investment
     191       0.00       1,185       0.02  
One-time income tax benefit
     (3,899 )     (0.06 )     —       —  
Sale of intellectual property rights, net of tax
     (7,519 )     (0.12 )     —       —  
 
                        
Adjusted net income (loss) attributable to Brooks Automation, Inc.
   $ 9,013       0.14     $ (65,959 )     (1.05 )
 
                                
Stock-based compensation
     3,561       0.06       3,394       0.05  
 
                        
Adjusted net income (loss) attributable to Brooks Automation, Inc. - excluding stock-based compensation
   $ 12,574     $ 0.20     $ (62,565 )   $ (1.00 )
 
                        
                                         
    Quarter ended     Six months ended  
    Mar 31,     Dec 31,     Mar 31,     Mar 31,     Mar 31,  
    2010     2009     2009     2010     2009  
Net income (loss) attributable to Brooks Automation, Inc.
   $ 21,029     $ (2,795 )   $ (152,543 )     18,234       (187,626 )
 
                                        
Less: Interest income
     (265 )     (328 )     (646 )     (593 )     (1,543 )
Add: Interest expense
     11       16       72       27       198  
Add: Income tax provision (benefit)
     (2,819 )     635       189       (2,184 )     580  
Add: Depreciation
     3,701       3,846       3,620       7,547       7,776  
Add: Amortization of completed technology
     472       457       2,331       929       4,662  
Add: Amortization of acquired intangible assets
     493       491       1,993       984       3,886  
Add: Stock-based compensation
     2,044       1,517       1,870       3,561       3,394  
Add: Restructuring related inventory charges
     —       —       3,612       —       3,612  
Add: Impairment charges — cost of revenues
     —       —       20,516       —       20,516  
Add: Impairment charges — operating expense
     —       —       86,388       —       86,388  
Add: Restructuring charges
     484       1,522       5,861       2,006       9,966  
Add: Loss on investment
     —       191       —       191       1,185  
Sale of intellectual property rights, pre-tax
     (7,840 )     —       —       (7,840 )     —  
 
                                        
 
                              
Adjusted EBITDA
   $ 17,310     $ 5,552     $ (26,737 )   $ 22,862     $ (47,006 )
 
                              
Brooks Automation, Inc. w 15 Elizabeth Drive w Chelmsford, Massachusetts 01824 w (978)262-2400 w www.brooks.com.