EX-99.1 2 b66454baexv99w1.htm PRESS RELEASE ISSUED ON AUGUST 9, 2007 exv99w1
 

Exhibit 99.1
         
(BROOKS AUTOMATION LOGO)
  Brooks Automation, Inc.   Tel (978) 262-2400
 
  15 Elizabeth Drive   Fax (978) 262-2500
 
  Chelmsford, MA 01824   www.brooks.com
Contact:
Robert W. Woodbury Jr.
Executive Vice-President and Chief Financial Officer
Brooks Automation, Inc.
Telephone: (978) 262-7400
robert.woodbury@brooks.com
Brooks Automation Reports Results for Fiscal Q3 2007 Ended June 30, 2007
    GAAP net income for Q3 $22.8 million and GAAP EPS $0.30
 
    Revenues of $190.5 million and bookings of $170.5 million
 
    Completed modified “Dutch Auction” tender to repurchase 6.06 million shares
CHELMSFORD, MA, August 9, 2007 — Brooks Automation, Inc. (NASDAQ: BRKS), which helps create manufacturing efficiency for the semiconductor and other complex industries, today announced the results for its third quarter of fiscal 2007 ended June 30, 2007. The results discussed below unless otherwise noted relate to continuing operations for Brooks after the completion of the sale of its software division on March 30, 2007, which for financial reporting purposes has been treated as discontinued operations.
Revenues for the third quarter of 2007 were $190.5 million, compared to revenues for the third quarter of 2006 of $163.4 million, an increase of 16.6 percent. Revenues decreased 2.3 percent sequentially over the preceding quarter revenues of $194.9 million.
Bookings for the third quarter of 2007 were $170.5 million, essentially flat to bookings for the third quarter of 2006 of $171.5 million, and a decrease of 20.3 percent over the preceding quarter bookings of $213.9 million, a quarter in which approximately $10 million in bookings were carried over from the first quarter.
Income from continuing operations for the third quarter of 2007 on a Generally Accepted Accounting Principles (GAAP) basis was $22.9 million, or $0.30 per diluted share, compared to a year-ago GAAP income from continuing operations of $13.9 million, or $0.19 per share, and GAAP income from continuing operations in the preceding quarter of $15.8 million, or $0.21 per diluted share. The company’s results for the third quarter of 2007 includes other income of $5.1 million related to a non-recurring gain on the sale of a minority equity interest in exchange for shares of common stock of the acquirer, a closely held Swiss public company.
Non-GAAP income from continuing operations in the third quarter of 2007 was $21.6 million or $0.28 per diluted share which excluded $5.1 million of income related to a one-time gain and $3.8 million of expense related to amortization of completed technology and of acquired intangible assets for a total income reduction of $1.3 million. A reconciliation of GAAP to non-GAAP results is provided elsewhere in this release.
Creating Manufacturing Efficiency. Accelerating Your Profit.

 


 

Press Release
Following the quarter, effective July 5, 2007 Brooks completed the repurchase of 6,060,000 shares of its common stock at a purchase price of $18.20 per share, for a total cost of approximately $110.3 million in accordance with the terms and conditions of the modified “Dutch Auction” tender offer which expired at 11:59 p.m., Eastern Daylight Time, on June 28, 2007. The shares accepted for purchase represent approximately 8% of the shares of common stock outstanding.
Edward C. Grady, president and chief executive officer of Brooks Automation, said, “Brooks was affected during the quarter by the recent slowdown in capital spending in the semiconductor industry. In spite of the fact that overall demand weakened, we were within our guidance for revenues and net income and we generated strong cash flow from operations. We initiated some actions in the quarter to reduce our fixed expenses and we continue to manage the business to maximize return to shareholders while meeting our customer requirements. We are also pleased that we announced and successfully executed a share repurchase tender offer using a modified “Dutch Auction”, resulting in about an 8 percent reduction in our share count. Our management and board will continue to work on ways to utilize our strong balance sheet to improve the value to our stakeholders.”
Company Guidance for Q4 2007 Ending September 30, 2007
    Revenues are expected to be in the range of $160 to $170 million.
 
    GAAP EPS is expected to be in the range of ($0.03) to $0.03 income per share, which includes approximately $0.11 per share in certain charges, principally for amortization of intangibles and restructuring costs.
Discussion of Non-GAAP Financials
The financial results that exclude certain charges and special items are not in accordance with GAAP. Management believes the presentation of non-GAAP financial measures, which exclude the costs associated with acquisitions and other special items, is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results.
A detailed reconciliation of the GAAP to the non-GAAP financials is provided with the financial tables.
Conference Call and Webcast
Brooks Automation will host a conference call on Thursday, August 9, 2007 at 4:30 p.m. Eastern to discuss the results.
     
Conference Call Date:
  Thursday, August 9, 2007
Time:
  4:30 p.m. Eastern
 
   
Dial in #:
  (719) 457-2682
Passcode:
  4707102

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A live Webcast of this conference call will be available in the investor relations section of the Brooks Automation web site, http://investor.brooks.com under the title “Brooks Automation Third Quarter of Fiscal 2007 Earnings Webcast.”
An archive of this Webcast will be made available following the conference call, and can be accessed for at least the next twelve months on the section for Webcasts at http://investor.brooks.com under the title “Brooks Automation Third Quarter of Fiscal 2007 Earnings Webcast.” A telephone replay will also be made available following the call at the following number: (719) 457-0820 beginning at 7:00 p.m. Eastern, Thursday, August 9, 2007, and available 7 days. The passcode for the replay is 4707102.
About Brooks Automation, Inc.
Brooks is a leading worldwide provider of automation solutions and integrated subsystems to the global semiconductor and related industries. The company’s advanced offerings in hardware and services can help customers improve manufacturing efficiencies, accelerate time-to-market and reduce cost of ownership. Brooks products and global services are used in virtually every semiconductor fab in the world as well as in a number of diverse industries outside of semiconductor manufacturing. For more information, visit http://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 bookings, revenues, and profit and loss expectations, expected restructuring charges and other charges, our future business strategy and market opportunities, level of capital expenditures and bookings expectations in the semiconductor and discrete manufacturing industries, demand for our new and existing products, purchasing and manufacturing trends among semiconductor manufacturing OEMs, the benefits of the acquisitions of Synetics and Helix, our strategy of sourcing from low cost regions, and the outlook of the semiconductor industry. Factors that could cause results to differ from our expectations include the following: our dependence on the cyclical semiconductor industry; the possibility of downturns in market demand for electronics; 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; a decision by semiconductor manufacturing OEMs not to outsource increasing amounts of their manufacturing operations; our ability to continue to effectively implement our flexible manufacturing model and our supply chain consolidation; the highly competitive nature and rapid technological change that characterizes the industries in which we compete; decisions by customers to accelerate delivery under or to cancel or defer orders that previously had been accepted; decisions by customers to reject the products we ship to them; the possibility that we may not be able to fulfill customer orders within a period of time acceptable to them; the fact that design-in wins do not necessarily translate to significant revenue; the

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timing and effectiveness of restructuring, cost-cutting, low cost sourcing and expense control measures; intense price competition; disputes concerning intellectual property; our ability to successfully integrate Synetics’ and Helix’s operations and employees; the risk that the cost savings and any other synergies from the Synetics and Helix acquisitions may not be fully realized or may take longer to realize than expected; the risk that possible disruption from the Synetics and Helix acquisitions will make it more difficult to maintain relationships with customers and employees; continuing uncertainties in global political and economic conditions, especially arising out of conflict in the Middle East; the potential for the incurrence of material expense and the diversion of management’s attention from other business concerns created by pending investigations by the Securities and Exchange Commission and the Department of Justice; and other factors and other risks that we have described in our filings with the Securities and Exchange Commission, including but not limited to Brooks’ Annual Report on Forms 10-K and 10-K/A, 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.

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BROOKS AUTOMATION, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
                 
    June 30,     September 30,  
    2007     2006  
ASSETS
               
Cash, cash equivalents and marketable securities
  $ 360,778     $ 184,053  
Accounts receivable, net
    108,912       113,440  
Inventories
    107,725       99,854  
Other current assets
    22,270       35,465  
 
           
 
               
Total current assets
    599,685       432,812  
 
               
Property, plant and equipment, net
    77,855       76,667  
Long-term marketable securities
    8,394       7,307  
Intangible assets, net
    396,214       406,665  
Other assets
    33,086       69,126  
 
           
 
               
Total assets
  $ 1,115,234     $ 992,577  
 
           
 
               
LIABILITIES, MINORITY INTERESTS AND STOCKHOLDERS’ EQUITY
               
Short-term debt
  $ 4     $ 11  
Current liabilities
    136,382       180,168  
Long-term liabilities
    12,770       12,870  
 
           
 
               
Total liabilities
    149,156       193,049  
 
               
Minority interests
    504       394  
 
               
Stockholders’ equity
    965,574       799,134  
 
           
 
               
Total liabilities, minority interests and stockholders’ equity
  $ 1,115,234     $ 992,577  
 
           
 
Cash, cash equivalents, short-term and long-term marketable securities
       
June 30, 2007
  $ 369,172  
March 31, 2007
  $ 320,792  
December 31, 2006
  $ 184,100  
September 30, 2006
  $ 191,360  
June 30, 2006
  $ 342,351  

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BROOKS AUTOMATION, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 2007 AND 2006
(in thousands, except per share data)
(unaudited)
                                 
    Three months ended     Nine months ended  
    June 30,     June 30,  
    2007     2006     2007     2006  
Revenues
  $ 190,461     $ 163,427     $ 576,755     $ 420,694  
Cost of revenues
    133,025       108,184       397,147       294,105  
 
                       
 
                               
Gross profit
    57,436       55,243       179,608       126,589  
 
                       
Gross margin
    30.2 %     33.8 %     31.1 %     30.1 %
 
                               
Operating expenses:
                               
Research and development
    12,817       12,237       39,185       32,353  
Selling, general and administrative
    29,924       30,154       91,482       83,482  
Restructuring charges
    411       619       3,451       3,475  
 
                       
 
    43,152       43,010       134,118       119,310  
 
                       
 
                               
Operating income from continuing operations
    14,284       12,233       45,490       7,279  
 
                               
Interest (income) expense, net
    (4,296 )     (1,784 )     (8,371 )     (4,136 )
Gain on investment
    5,110             5,110        
Other (income) expense, net
    163       (74 )     538       (789 )
 
                       
 
                               
Income from continuing operations before income taxes and minority interests
    23,527       14,091       58,433       12,204  
 
                               
Income tax provision
    605       553       2,729       1,745  
 
                       
 
                               
Income from continuing operations before minority interests
    22,922       13,538       55,704       10,459  
 
                               
Minority interests in (loss) of consolidated subsidiary
    58       (316 )     110       (1,082 )
 
                       
 
                               
Income from continuing operations
    22,864       13,854       55,594       11,541  
 
                               
Income (loss) from discontinued operations, net of income taxes
    (25 )     3,308       13,273       (1,727 )
Gain on sale of discontinued operations, net of income taxes
                83,898        
 
                       
Income (loss) from discontinued operations, net of income taxes
    (25 )     3,308       97,171       (1,727 )
 
                       
 
                               
Net income
  $ 22,839     $ 17,162     $ 152,765     $ 9,814  
 
                       
 
                               
Basic income (loss) per share:
                               
Continuing operations
  $ 0.30     $ 0.19     $ 0.74     $ 0.16  
Discontinued operations
          0.04       1.30       (0.02 )
 
                       
Basic income (loss) per share
  $ 0.30     $ 0.23     $ 2.04     $ 0.14  
 
                       
 
                               
Diluted income (loss) per share:
                               
Continuing operations
  $ 0.30     $ 0.19     $ 0.74     $ 0.16  
Discontinued operations
          0.04       1.29       (0.02 )
 
                       
Diluted income (loss) per share
  $ 0.30     $ 0.23     $ 2.03     $ 0.14  
 
                       
 
                               
Shares used in computing income (loss) per share:
                               
Basic
    75,046       74,427       74,802       71,597  
Diluted
    75,737       74,566       75,376       71,792  

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BROOKS AUTOMATION, INC.
CALCULATION OF PRO FORMA NET INCOME
FOR THE THREE MONTHS ENDED JUNE 30, 2007
(in thousands, except per share data)
(unaudited)
                         
    U.S. GAAP     Adjustments     Pro Forma  
Revenues
  $ 190,461     $     $ 190,461  
Cost of revenues
    133,025       2,331 A     130,694  
 
                 
 
                       
Gross profit
    57,436       (2,331 )     59,767  
 
                 
Gross margin
    30.2 %             31.4 %
 
                       
Operating expenses:
                       
Research and development
    12,817               12,817  
Selling, general and administrative
    29,924       1,482 B     28,442  
Restructuring charges
    411               411  
 
                 
 
    43,152       1,482       41,670  
 
                 
 
                       
Operating income from continuing operations
    14,284       (3,813 )     18,097  
 
                       
Interest (income) expense, net
    (4,296 )           (4,296 )
Gain on investment
    5,110       5,110        
Other (income) expense, net
    163               163  
 
                 
 
                       
Income from continuing operations before income taxes and minority interests
    23,527       1,297       22,230  
 
                       
Income tax provision
    605             605  
 
                 
 
                       
Income from continuing operations before minority interests
    22,922       1,297       21,625  
 
                       
Minority interests in income of consolidated subsidiary
    58             58  
 
                 
 
                       
Income from continuing operations
    22,864       1,297       21,567  
 
                       
Income (loss) from discontinued operations, net of income taxes
    (25 )     (25 )      
 
                 
 
                       
Net income
  $ 22,839     $ 1,272     $ 21,567  
 
                 
 
                       
Basic income per share from continuing operations
  $ 0.30     $ 0.02     $ 0.29  
Basic income (loss) per share from discontinued operations
                 
 
                 
Basic income per share
  $ 0.30     $ 0.02     $ 0.29  
 
                 
 
                       
Diluted income per share from continuing operations
  $ 0.30     $ 0.02     $ 0.28  
Diluted income (loss) per share from discontinued operations
                 
 
                 
Diluted income per share
  $ 0.30     $ 0.02     $ 0.28  
 
                 
Shares used in computing earnings per share
                       
Basic
    75,046       75,046       75,046  
Diluted
    75,737       75,737       75,737  
 
Adjustments:
                       
(A) Amortization of completed technology
            2,331          
(B) Amortization of other acquired intangible assets
            1,482          

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