EX-99.1 3 b68536baexv99w1.htm EX-99.1 PRESS RELEASE ISSUED ON FEBRUARY 11, 2008 exv99w1
 

Exhibit 99.1
(BROOKS LOGO)   For Further Information:
Michael W. McCarthy
Director – Investor Relations
Office: (978) 262-2459
michael.mccarthy@brooks.com
Press Release
For Immediate Release
February 11, 2008
Brooks Automation Reports First Quarter Financial Results
Chelmsford, Massachusetts February 11, 2008 — Brooks Automation, Inc. (Nasdaq: BRKS) announced financial results for the Company’s first quarter of fiscal 2008 ended on December 31, 2007.
Revenues for the first quarter of 2008 were $147.8 million, compared to revenues of $191.4 million in the first quarter of 2007, a decrease of 22.8%. Sequentially, revenues decreased $18.7 million, or 11.2% from fiscal 2007 fourth quarter revenues of $166.5 million.
The Company reported a loss from continuing operations for the first quarter of 2008 of $1.4 million, or $0.02 per diluted share. This compares with income from continuing operations of $17.0 million, or $0.23 per diluted share in the first quarter of the prior year. Sequentially, the loss from continuing operations was flat with the fourth quarter fiscal 2007 reported loss of $1.3 million, or $0.02 per diluted share. Loss from continuing operations for the first quarter of fiscal 2008 included $0.6 million of restructuring charges that reduced diluted earnings per share by $0.01.
Net loss for the first quarter of 2008 of $1.4 million or $0.02 per diluted share compares with a net income of $22.1 million of $0.30 per diluted share in the first quarter of 2007, which included income from discontinued operations of $5.2 million or $0.07 per diluted share.
Commenting on the results President and Chief Executive Officer, Robert J. Lepofsky said, “Our results in the quarter are reflective of the difficult external environment that exists in the semiconductor capital equipment industry. Late December delivery push-outs and equipment rescheduling actions are a result of the high level of near-term business uncertainty facing our customers. Clearly the assessments of industry conditions which we have heard in the last two weeks have tempered our expectations for a quick upturn in business. On a positive note, even in these difficult times we are engaging with customers on new business opportunities, achieving important design-in wins and market share gains, investing in critical people and product development programs and will be continuing to generate positive cash flow from operations.”
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Brooks Automation, Inc. s 15 Elizabeth Drive s Chelmsford, Massachusetts 01824 s (978)262-2400 s www.brooks.com.

 


 

Brooks Automation Reports First Quarter Revenues & Earnings.......page two
Stock Repurchase
On November 9, 2007, Brooks announced a stock repurchase program of up to $200 million. During the first quarter of fiscal 2008 ended December 31, 2007, Brooks had acquired 2,258,168 shares in open market purchases at an average price of $12.93 for a total of $29.2 million. During the second quarter of fiscal 2008 through February 11, 2008, the Company acquired an additional 4,237,138 shares in open market purchases at an average price of $12.07 at a cost of $51.2 million, resulting in a total of 6,495,306 shares being repurchased at an average price of $12.37 for a total of $80.4 million.
Management and the Board of Directors will continue to exercise discretion with respect to the timing and amount of any shares repurchased, based on their evaluation of a variety of factors, including market conditions.
Business Outlook
In providing guidance for the second quarter of fiscal 2008 ending on March 31, 2008, Brooks expects revenues could be in the range of $135 million to $150 million with a net loss between $0.10 per share and breakeven. The guidance for loss per share does not include restructuring costs that are likely to be incurred during the quarter.
Mr. Lepofsky noted, “We have essentially completed the comprehensive business review that was initiated at the beginning of the first quarter. That review was expected to define the actions needed to improve our operational effectiveness, customer responsiveness and financial performance independent of external business conditions. We have already implemented several elements of the plan which includes a reorganization of our business operations and a phased reduction in our global staffing. By March 1st we expect to have reduced our workforce by at least five percent. While these actions will not impact our financial results in the current quarter, we expect that they will markedly improve our performance in subsequent quarters.”
Brooks Automation management will host a public conference call on Monday, February 11, 2008 at 4:30 p.m. ET 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.
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Brooks Automation, Inc. s 15 Elizabeth Drive s Chelmsford, Massachusetts 01824 s (978)262-2400 s www.brooks.com.

 


 

Brooks Automation Reports First Quarter Revenues & Earnings....page three
Analysts, investors and members of the media may participate in the call by dialing (913)312-0707. Participants outside of the United States and Canada can access the call using the same number. It is recommended that participants dial in five minutes prior to the call’s scheduled start time. The call will also be broadcasted live on Brooks’ website at www.brooks.com. Additionally, the call will be archived on this website for convenient on-demand replay until Brooks Automation reports fiscal 2008 second quarter results in mid-May, 2008.
# # #
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 see www.brooks.com or email co.csr@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, profit and loss and cash flow expectations, expected restructuring charges and other charges, the impact of anticipated workforce reductions, 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, 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 timing and effectiveness of restructuring, cost-cutting, low cost sourcing and expense control measures; intense price competition; disputes concerning intellectual property; expenses associated with legal disputes and litigation; 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 the pending investigation by the Securities and Exchange Commission; 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.
08-05
Brooks Automation, Inc. s 15 Elizabeth Drive s Chelmsford, Massachusetts 01824 s (978)262-2400 s www.brooks.com.

 


 

BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
                 
    Three months ended  
    December 31,  
    2007     2006  
Revenues
               
Product
  $ 118,371     $ 161,115  
Services
    29,462       30,253  
 
           
Total revenues
    147,833       191,368  
 
           
Cost of revenues
               
Product
    85,616       107,826  
Services
    23,768       23,860  
 
           
Total cost of revenues
    109,384       131,686  
 
           
Gross profit
    38,449       59,682  
 
           
Operating expenses
               
Research and development
    12,432       13,090  
Selling, general and administrative
    29,103       30,996  
Restructuring and acquisition-related charges
    600        
 
           
Total operating expenses
    42,135       44,086  
 
           
Operating income (loss) from continuing operations
    (3,686 )     15,596  
Interest income
    3,209       2,175  
Interest expense
    133       141  
Other (income) expense, net
    343       542  
 
           
Income (loss) from continuing operations before income taxes and minority interests
    (953 )     17,088  
Income tax provision
    670       644  
 
           
Income (loss) from continuing operations before minority interests
    (1,623 )     16,444  
Minority interests in (income) loss of consolidated subsidiaries
    27       164  
Equity in earnings of joint ventures
    177       371  
 
           
Income (loss) from continuing operations
    (1,419 )     16,979  
Income from discontinued operations, net of income taxes
          5,160  
 
           
Net income (loss)
  $ (1,419 )   $ 22,139  
 
           
Basic income (loss) per share from continuing operations
  $ (0.02 )   $ 0.23  
Basic income per share from discontinued operations
          0.07  
 
           
Basic net income (loss) per share
  $ (0.02 )   $ 0.30  
 
           
Diluted income (loss) per share from continuing operations
  $ (0.02 )   $ 0.23  
Diluted income per share from discontinued operations
          0.07  
 
           
Diluted net income (loss) per share
  $ (0.02 )   $ 0.30  
 
           
Shares used in computing income (loss) per share
               
Basic
    69,110       74,595  
Diluted
    69,110       74,999  
Brooks Automation, Inc. s 15 Elizabeth Drive s Chelmsford, Massachusetts 01824 s (978)262-2400 s www.brooks.com.

 


 

BROOKS AUTOMATION, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)
                 
    December 31,     September 30,  
    2007     2007  
Assets
               
Current assets
               
Cash and cash equivalents
  $ 144,559     $ 168,232  
Marketable securities
    55,087       80,102  
Accounts receivable, net
    91,635       105,904  
Inventories, net
    107,154       104,794  
Prepaid expenses and other current assets
    20,331       20,489  
 
           
Total current assets
    418,766       479,521  
 
               
Property, plant and equipment, net
    80,782       80,747  
Long-term marketable securities
    34,997       26,283  
Goodwill
    319,127       319,302  
Intangible assets, net
    73,024       76,964  
Equity investment in joint ventures
    24,773       24,007  
Other assets
    7,316       8,014  
 
           
 
               
Total assets
  $ 958,785     $ 1,014,838  
 
           
Liabilities, minority interests and stockholders’ equity
               
Current liabilities
               
Accounts payable
  $ 43,409     $ 57,758  
Deferred revenue
    6,295       5,424  
Accrued warranty and retrofit costs
    9,569       10,986  
Accrued compensation and benefits
    17,563       23,850  
Accrued restructuring costs
    5,963       6,778  
Accrued income taxes payable
    4,433       5,934  
Accrued expenses and other current liabilities
    17,663       21,908  
 
           
Total current liabilities
    104,895       132,638  
Accrued long-term restructuring
    8,079       8,933  
Income taxes payable
    10,649       10,159  
Other long-term liabilities
    2,405       2,866  
 
           
Total liabilities
    126,028       154,596  
 
           
Contingencies
               
Minority interests
    435       463  
 
           
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, 76,788,507 shares issued and 68,470,321 shares outstanding at December 31, 2007, 76,483,603 shares issued and 70,423,603 shares outstanding at September 30, 2007
    768       765  
Additional paid-in capital
    1,781,986       1,780,401  
Accumulated other comprehensive income
    19,784       18,202  
Treasury stock at cost, 8,318,186 shares and 6,060,000 shares at December 31, 2007 and September 30, 2007, respectively
    (139,970 )     (110,762 )
Accumulated deficit
    (830,246 )     (828,827 )
 
           
Total stockholders’ equity
    832,322       859,779  
 
           
Total liabilities, minority interests and stockholders’ equity
  $ 958,785     $ 1,014,838  
 
           
Brooks Automation, Inc. s 15 Elizabeth Drive s Chelmsford, Massachusetts 01824 s (978)262-2400 s www.brooks.com.

 


 

BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
                 
    Three months ended  
    December 31,  
    2007     2006  
Cash flows from operating activities
               
Net income (loss)
  $ (1,419 )   $ 22,139  
Adjustments to reconcile net income (loss) to net cash used in operating activities:
               
Depreciation and amortization
    8,507       8,313  
Stock-based compensation
    2,009       2,143  
Discount on marketable securities
    (418 )     (229 )
Undistributed earnings of joint ventures
    (177 )     (371 )
Minority interests
    (27 )     (164 )
Loss on disposal of long-lived assets
    105       313  
Changes in operating assets and liabilities, net of acquisitions and disposals:
               
Accounts receivable
    14,379       (13,699 )
Inventories
    (2,248 )     (5,256 )
Prepaid expenses and other assets
    1,977       1,271  
Accounts payable
    (14,396 )     (4,237 )
Deferred revenue
    865       694  
Accrued warranty and retrofit costs
    (1,413 )     274  
Accrued compensation and benefits
    (6,362 )     (8,005 )
Accrued restructuring costs
    (1,691 )     (2,201 )
Accrued expenses and other current liabilities
    (5,822 )     (4,457 )
 
           
Net cash used in operating activities
    (6,131 )     (3,472 )
 
           
Cash flows from investing activities
               
Purchases of property, plant and equipment
    (4,521 )     (3,984 )
Acquisition of Synetics Solutions, net of cash acquired
          (38 )
Purchases of marketable securities
    (98,115 )     (75,580 )
Sale/maturity of marketable securities
    114,154       100,550  
Purchases of intangible assets
    (75 )      
 
           
Net cash provided by investing activities
    11,443       20,948  
 
           
Cash flows from financing activities
               
Treasury stock purchases
    (29,208 )      
Proceeds from issuance of common stock, net of issuance costs
          367  
 
           
Net cash provided by (used in) financing activities
    (29,208 )     367  
 
           
Effects of exchange rate changes on cash and cash equivalents
    223       502  
 
           
Net increase (decrease) in cash and cash equivalents
    (23,673 )     18,345  
Cash and cash equivalents, beginning of period
    168,232       115,773  
 
           
Cash and cash equivalents, end of period
  $ 144,559     $ 134,118  
 
           
Brooks Automation, Inc. s 15 Elizabeth Drive s Chelmsford, Massachusetts 01824 s (978)262-2400 s www.brooks.com.