EX-99.1 2 b83428exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
(BROOKS AUTOMATION LOGO)
Press Release
 
For Immediate Release
November 10, 2010
Brooks Automation Reports Fourth Quarter Financial Results
  •   Fiscal year diluted earnings per share from continuing operations of $0.92.
 
  •   Excluding non-recurring income and special charges adjusted diluted earnings of $0.78.
 
  •   Record quarterly diluted earning per share from continuing operations at $0.38.
Chelmsford, Massachusetts November 10, 2010 — Brooks Automation, Inc. (Nasdaq: BRKS) announced financial results for the Company’s fourth quarter of fiscal year 2010 ended on September 30, 2010.
Revenues for the fourth quarter of 2010 were $181.6 million, compared to revenues of $64.1 million in the fourth quarter of 2009, an increase of 183.4%. Sequentially, revenues grew 15.8% from third quarter revenues of $156.8 million.
Net income attributable to Brooks Automation, Inc. (“Brooks”) for the fourth quarter of fiscal 2010 amounted to $24.2 million, or $0.38 per diluted share.
Excluding non-recurring income and special charges, the adjusted net income of $24.4 million, or $0.38 per diluted share, improved on a sequential basis from $16.9 million, or $0.26 per diluted share, and compares with a loss of $(14.0) million, or $(0.22) per diluted share, in the fourth quarter of fiscal 2009. Non recurring income and special charges and their impact on comparative results are identified in the unaudited table included with this release. Including special charges, the Net income attributable to Brooks in the third quarter was $16.6 million, or $0.26 per diluted share, and the Net loss attributable to Brooks in the fourth quarter of fiscal 2009 was $(14.5) million, or $(0.23) per diluted share.
Adjusted Earnings (Loss) before Interest, Tax, Depreciation and Amortization for the fourth quarter of fiscal 2010 was $29.7 million, which compared to $22.5 million in the third quarter of fiscal 2010 and $(8.7) million in the fourth quarter of fiscal 2009. 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 fiscal year ended September 30, 2010 was $27.9 million, which together with proceeds from the sale of intellectual property rights in the second fiscal quarter of $7.8 million and net of capital expenditures over the year of $3.5 million resulted in an increase of total cash and marketable securities to $142.4 million at September 30, 2010.
— more —
Brooks Automation, Inc. • 15 Elizabeth Drive • Chelmsford, Massachusetts 01824 • (978)262-2400 • www.brooks.com

 

 

         
    Brooks Automation Reports Fourth Quarter Financial Results   page two
Revenues for the year ended September 30, 2010 were $593.0 million, a 171% increase from $218.7 million for the prior fiscal year. Net income attributable to Brooks for the current fiscal year was $59.0 million, as compared to the prior fiscal year’s net loss of $(227.9) million. Excluding non-recurring income and special charges, the adjusted net income (loss) from operations for the current fiscal year was $50.1 million, or $0.78 per diluted share, as compared to a loss of $(102.9) million, or $(1.64) per diluted share, in the prior fiscal year. Non-recurring income and special charges are identified in the unaudited financial information included in this release.
Commenting on recent activities, Stephen S. Schwartz, Chief Executive Officer and President of Brooks stated, “We had a strong finish to the fiscal year with excellent top line growth and record quarterly operating performance. We saw continuing strength to our semiconductor business and we successfully leveraged that growth to improve margin performance.”
Mr. Schwartz added, “Although we are starting to see moderation from the high growth levels attained during fiscal 2010, we believe that our principal served markets will remain healthy as the global economy continues to recover. Additionally, our successes with design-in wins, particularly in markets adjacent to semiconductor, will drive revenue and earnings growth for fiscal 2011.”
Martin S. Headley, Executive Vice-President and Chief Financial Officer noted “We have a strong cash generating capacity and plan to act on a number of internal and external opportunities for investment to fuel strong long term growth.”
Brooks management will webcast its fourth 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, Inc. • 15 Elizabeth Drive • Chelmsford, Massachusetts 01824 • (978)262-2400 • www.brooks.com

 

 

         
    Brooks Automation Reports Fourth 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 revenue and earnings 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 increased demand for our products due to difficulties in obtaining components and materials from our suppliers in required quantities and of required quality; the failure of our 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. • 15 Elizabeth Drive • Chelmsford, Massachusetts 01824 • (978)262-2400 • www.brooks.com

 

 

BROOKS AUTOMATION, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)
                 
    September 30,     September 30,  
    2010     2009  
Assets
                
Current assets
                
Cash and cash equivalents
   $ 59,823     $ 59,985  
Marketable securities
     49,011       28,046  
Accounts receivable, net
     92,273       38,428  
Inventories, net
     115,787       84,738  
Prepaid expenses and other current assets
     10,437       9,992  
 
            
Total current assets
     327,331       221,189  
Property, plant and equipment, net
     63,669       74,793  
Long-term marketable securities
     33,593       22,490  
Goodwill
     48,138       48,138  
Intangible assets, net
     11,123       14,081  
Equity investment in joint ventures
     31,746       29,470  
Other assets
     2,624       3,161  
 
            
Total assets
   $ 518,224     $ 413,322  
 
            
Liabilities and equity
                
Current liabilities
                
Accounts payable
   $ 65,734     $ 26,360  
Deferred revenue
     4,365       2,916  
Accrued warranty and retrofit costs
     8,195       5,698  
Accrued compensation and benefits
     13,677       14,317  
Accrued restructuring costs
     3,509       5,642  
Accrued income taxes payable
     1,040       2,686  
Accrued expenses and other current liabilities
     11,635       12,870  
 
            
Total current liabilities
     108,155       70,489  
Accrued long-term restructuring
     —       2,019  
Income taxes payable
     12,446       10,755  
Long-term pension liability
     5,466       7,913  
Other long-term liabilities
     2,805       2,523  
 
            
Total liabilities
     128,872       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, 78,869,331 shares issued and 65,407,462 shares outstanding at September 30, 2010, 77,883,173 shares issued and 64,421,304 shares outstanding at September 30, 2009
     789       779  
Additional paid-in capital
     1,803,121       1,795,619  
Accumulated other comprehensive income
     19,510       16,318  
Treasury stock at cost, 13,461,869 shares at September 30, 2010 and 2009
     (200,956 )     (200,956 )
Accumulated deficit
     (1,233,649 )     (1,292,631 )
 
            
Total Brooks Automation, Inc. stockholders’ equity
     388,815       319,129  
Noncontrolling interest in subsidiaries
     537       494  
 
            
Total equity
     389,352       319,623  
 
            
Total liabilities and equity
   $ 518,224     $ 413,322  
 
            
Brooks Automation, Inc. • 15 Elizabeth Drive • Chelmsford, Massachusetts 01824 • (978)262-2400 • www.brooks.com

 

 

BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
                                 
    Three months ended     Year ended  
    September 30,     September 30,  
    2010     2009     2010     2009  
Revenues
                                
Product
   $ 165,475     $ 51,073     $ 532,174     $ 167,552  
Services
     16,157       13,012       60,798       51,154  
 
                        
Total revenues
     181,632       64,085       592,972       218,706  
 
                        
Cost of revenues
                                
Product
     113,965       40,292       377,599       155,370  
Services
     12,473       11,931       49,078       48,408  
Impairment of long-lived assets
     —       —       —       20,924  
 
                        
Total cost of revenues
     126,438       52,223       426,677       224,702  
 
                        
Gross profit (loss)
     55,194       11,862       166,295       (5,996 )
 
                        
Operating expenses
                                
Research and development
     8,043       7,115       31,162       31,607  
Selling, general and administrative
     24,576       18,831       85,597       91,231  
Impairment of goodwill
     —       —       —       71,800  
Impairment of long-lived assets
     —       —       —       14,588  
Restructuring charges
     235       513       2,529       12,806  
 
                        
Total operating expenses
     32,854       26,459       119,288       222,032  
 
                        
Operating income (loss)
     22,340       (14,597 )     47,007       (228,028 )
Interest income
     307       640       1,121       2,719  
Interest expense
     46       196       80       454  
Sale of intellectual property rights
     —       —       7,840       —  
Loss on investment
     —       —       191       1,185  
Other income, net
     662       66       367       31  
 
                        
Income (loss) before income taxes and equity in earnings (losses) of joint ventures
     23,263       (14,087 )     56,064       (226,917 )
Income tax provision (benefit)
     (527 )     (85 )     (2,746 )     643  
 
                        
Income (loss) before equity in earnings (losses) of joint ventures
     23,790       (14,002 )     58,810       (227,560 )
Equity in earnings (losses) of joint ventures
     518       (466 )     215       (213 )
 
                        
Net income (loss)
   $ 24,308     $ (14,468 )   $ 59,025     $ (227,773 )
Net income attributable to noncontrolling interests
     (132 )     (22 )     (43 )     (85 )
 
                        
Net income (loss) attributable to Brooks Automation, Inc.
   $ 24,176     $ (14,490 )   $ 58,982     $ (227,858 )
 
                        
Basic net income (loss) per share attributable to Brooks Automation, Inc. common stockholders
   $ 0.38     $ (0.23 )   $ 0.92     $ (3.62 )
 
                        
Diluted net income (loss) per share attributable to Brooks Automation, Inc. common stockholders
   $ 0.38     $ (0.23 )   $ 0.92     $ (3.62 )
 
                        
Shares used in computing earnings (loss) per share
                                
Basic
     64,068       63,135       63,777       62,911  
Diluted
     64,330       63,135       64,174       62,911  
Brooks Automation, Inc. • 15 Elizabeth Drive • Chelmsford, Massachusetts 01824 • (978)262-2400 • www.brooks.com

 

 

BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
                 
    Year ended  
    September 30,  
    2010     2009  
Cash flows from operating activities
                
Net income (loss)
   $ 59,025     $ (227,773 )
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
                
Depreciation and amortization
     18,420       25,856  
Impairment of assets
     —       107,312  
Sale of intellectual property rights
     (7,840 )     —  
Stock-based compensation
     6,567       5,817  
Amortization of premium on marketable securities
     942       127  
Undistributed (earnings) losses of joint ventures
     (215 )     213  
Loss on disposal of long-lived assets
     4       17  
Loss on investment
     191       1,185  
Changes in operating assets and liabilities, net of acquisitions and disposals:
                
Accounts receivable
     (53,163 )     29,963  
Inventories
     (31,341 )     21,779  
Prepaid expenses and other current assets
     (499 )     4,527  
Accounts payable
     39,352       (10,947 )
Deferred revenue
     1,487       (676 )
Accrued warranty and retrofit costs
     2,483       (2,496 )
Accrued compensation and benefits
     (913 )     (3,869 )
Accrued restructuring costs
     (4,123 )     (5,007 )
Accrued expenses and other
     (2,505 )     (2,522 )
 
            
Net cash provided by (used in) operating activities
     27,872       (56,494 )
 
            
Cash flows from investing activities
                
Purchases of property, plant and equipment
     (3,472 )     (11,339 )
Purchases of marketable securities
     (117,473 )     (59,091 )
Sale/maturity of marketable securities
     84,546       75,628  
Proceeds from the sale of intellectual property rights
     7,840       —  
Purchase of intangible assets
     (892 )     —  
Other
     243       1,055  
 
            
Net cash provided by (used in) investing activities
     (29,208 )     6,253  
 
            
Cash flows from financing activities
                
Proceeds from issuance of common stock, net of issuance costs
     1,245       1,248  
 
            
Net cash provided by financing activities
     1,245       1,248  
 
            
Effects of exchange rate changes on cash and cash equivalents
     (71 )     (1,291 )
 
            
Net decrease in cash and cash equivalents
     (162 )     (50,284 )
Cash and cash equivalents, beginning of period
     59,985       110,269  
 
            
Cash and cash equivalents, end of period
   $ 59,823     $ 59,985  
 
            
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 operations is presented below:
Brooks Automation, Inc. • 15 Elizabeth Drive • Chelmsford, Massachusetts 01824 • (978)262-2400 • www.brooks.com

 

 

                                                 
    Quarter ended  
    September 30, 2010     June 30, 2010     September 30, 2009  
    $     per share     $     per share     $     per share  
 
                                                
Net income (loss) attributable to Brooks Automation, Inc.
   $ 24,176     $ 0.38     $ 16,572     $ 0.26     $ (14,490 )   $ (0.23 )
 
                                                
Restructuring charges
     235       0.00       288       0.00       513       0.01  
 
                                    
Adjusted net income (loss) attributable to Brooks Automation, Inc.
     24,411       0.38       16,860       0.26       (13,977 )     (0.22 )
 
                                                
Stock-based compensation
     1,678       0.03       1,328       0.02       810       0.01  
 
                                    
Adjusted net income (loss) attributable to Brooks Automation, Inc. — excluding stock-based compensation
   $ 26,089     $ 0.41     $ 18,188     $ 0.28     $ (13,167 )   $ (0.21 )
 
                                    
                                 
    Year Ended  
    September 30, 2010     September 30, 2009  
    $     per share     $     per share  
 
                                
Net income (loss) attributable to Brooks Automation, Inc.
   $ 58,982     $ 0.92     $ (227,858 )   $ (3.62 )
 
                                
Impairment charges — cost of revenues
     —       —       20,924       0.33  
Impairment charges — operating expense
     —       —       86,388       1.37  
Restructuring charges
     2,529       0.04       12,806       0.20  
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
     (7,730 )     (0.12 )     —       —  
 
                        
Adjusted net income (loss) attributable to Brooks Automation, Inc.
     50,073       0.78       (102,943 )     (1.64 )
 
                                
Stock-based compensation
     6,567       0.10       5,817       0.09  
 
                        
Adjusted net income (loss) attributable to Brooks Automation, Inc. — excluding stock-based compensation
   $ 56,640     $ 0.88     $ (97,126 )   $ (1.54 )
 
                        
                                         
    Quarter ended     Year Ended  
    Sep 30,     June 30,     Sep 30,     Sep 30,     Sep 30,  
    2010     2010     2009     2010     2009  
 
                                        
Net income (loss) attributable to Brooks Automation, Inc.
   $ 24,176     $ 16,572     $ (14,490 )   $ 58,982     $ (227,858 )
 
                                        
Less: Interest income
     (307 )     (221 )     (640 )     (1,121 )     (2,719 )
Add: Interest expense
     46       7       196       80       454  
Add: Income tax provision (benefit)
     (527 )     (35 )     (85 )     (2,746 )     643  
Add: Depreciation
     3,419       3,597       4,187       14,563       15,642  
Add: Amortization of completed technology
     479       479       457       1,887       5,576  
Add: Amortization of acquired intangible assets
     493       493       371       1,970       4,638  
Add: Stock-based compensation
     1,678       1,328       810       6,567       5,817  
Add: Restructuring related inventory charges
     —       —       —       —       3,612  
Add: Impairment charges — cost of revenues
     —       —       —       —       20,924  
Add: Impairment charges — operating expense
     —       —       —       —       86,388  
Add: Restructuring charges
     235       288       513       2,529       12,806  
Add: Loss on investment
     —       —       —       191       1,185  
Sale of intellectual property rights, pre-tax
     —       —       —       (7,840 )     —  
 
                              
Adjusted EBITDA
   $ 29,692     $ 22,508     $ (8,681 )   $ 75,062     $ (72,892 )
 
                              
Brooks Automation, Inc. • 15 Elizabeth Drive • Chelmsford, Massachusetts 01824 • (978)262-2400 • www.brooks.com