EX-99.1 2 b72911baexv99w1.htm EX-99.1 PRESS RELEASE DATED NOVEMBER 11, 2008 exv99w1
Exhibit 99.1
     
(BROOKS AUTOMATION LOGO)   For Further Information:
Michael W. McCarthy
Director — Investor Relations
Office: (978) 262-2459
michael.mccarthy@brooks.com
Press Release
For Immediate Release
November 11, 2008
Brooks Automation Reports Fourth Quarter Financial Results
Chelmsford, Massachusetts November 11, 2008 — Brooks Automation, Inc. (Nasdaq: BRKS) announced financial results for the Company’s fourth quarter and fiscal year 2008 ended on September 30, 2008.
Revenues for the fourth quarter of 2008 were $106.9 million, compared to revenues of $166.5 million in the fourth quarter of 2007, a decrease of 35.8%. Sequentially, revenues were down 13.8% from fiscal 2008 third quarter revenues of $124.0 million.
Loss from continuing operations for the fourth quarter of fiscal 2008 amounted to $216.2 million, or $3.45 per diluted share. This loss includes special charges totaling $206.2 million. Excluding special charges, the non-GAAP loss from continuing operations for the fourth quarter of fiscal 2008 was $10.0 million, or $0.16 per diluted share. The special charges taken during the quarter included a non-cash impairment charge of $203.6 million, primarily to write down the value of goodwill reflecting the current industry and economic environment which has significantly impacted the comparable company valuations and the Company’s near term outlook. Other special charges taken during the quarter included restructuring costs of $1.6 million and a $1.0 million non-cash charge to recognize the impairment in value of a minority interest Brooks owns in a small Swiss public company.
The fiscal 2008 fourth quarter loss from continuing operations before special charges of $10.0 million, or $0.16 per diluted share, compares with a loss of $7.8 million, $0.12 in the third quarter of fiscal 2008 and profits of $2.4 million, or $0.03 per diluted share in the fourth quarter of fiscal 2007.
Including the special charges, the fiscal 2008 fourth quarter loss from continuing operations of $216.2 million, or $3.45 per diluted share, compares with a loss from continuing operations of $1.3 million, or $0.02 per diluted share in the fourth quarter of the prior year. Sequentially, the loss from continuing operations increased $205.9 million compared to a fiscal 2008 third quarter loss of $10.3 million.
Adjusted Earnings before Interest, Tax, Depreciation and Amortization for the fourth quarter of fiscal 2008 was ($1.9) million, which compared to $10.4 million in the prior year period and $1.8 million in the third quarter of fiscal 2008. Cash flows from operations, which benefited from strong working capital management, amounted to $6.0 million in the fourth quarter of fiscal 2008. This compared to $20.1 million in the fourth quarter of fiscal 2007 and $1.4 million in the third quarter of fiscal 2008.
Brooks Automation, Inc. t 15 Elizabeth Drive t Chelmsford, Massachusetts 01824 t (978)262-2400 t www.brooks.com
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Brooks Automation Reports Fourth Quarter Financial Results   page two
Revenues for the full fiscal year 2008 were $526.4 million, a 29.2% decrease from prior year revenues of $743.3 million. The net loss for fiscal 2008 was $235.9 million, or $3.66 per diluted share, compared to the prior year’s net income of $151.5 million, or $2.04 per diluted share. The loss for fiscal 2008 included the non-cash impairment charges of $203.6 million, restructuring charges of $7.3 million, a $3.9 million loss on an investment which was partially offset by a $0.7 million gain in discontinued operations related to the resolution of certain contingencies in connection with the sale of the Brooks Software division, which in total amounted to $3.32 per diluted share. Net income for fiscal 2007 included an $83.9 million gain on the March 30, 2007 sale of the Brooks Software division and $13.3 million of income from that discontinued operation, restructuring charges of $7.1 million and a gain on an investment of $5.1 million, which in total amounted to $1.28 per diluted share.
Commenting on the fourth quarter results, Robert J. Lepofsky, President and Chief Executive Officer of Brooks stated, “Our results for the quarter are reflective of the challenging market conditions faced by every participant in the global electronics food chain. Order booking and shipment rates in the quarter slowed as economic conditions continued to weaken. Those declines have continued over the course of the past three weeks as most of our customers have announced lowered expectations and short-term action plans to reduce spending and conserve cash. Most are planning additional restructuring initiatives over the months ahead. The management team at Brooks has also been evaluating alternative scenarios and we will be reducing capacity, tightly controlling costs and carefully managing our working capital as well. Last quarter, our people adjusted to lower revenues and slowing orders and delivered better performance than we would have forecasted at those levels. The job ahead will be even more challenging.”
Mr. Lepofsky continued, “While the decision to contract current operations in response to current market conditions is difficult, we also see the upcoming period as one of opportunity. We are a strategically critical partner of our customers and we remain committed to our long-term plan of creating value for our shareholders through growth initiatives that are aligned with the needs of those customers. While those needs may be delayed they are not disappearing. The commitment of our organization, our enviable market position and the strength of our debt-free balance sheet will ensure our ability to take full advantage of new opportunities that will emerge over the year ahead. One thing is clear — we at Brooks plan to come out of this downturn as a stronger and better positioned company.”
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 Automation, Inc. t 15 Elizabeth Drive t Chelmsford, Massachusetts 01824 t (978)262-2400 t www.brooks.com
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Brooks Automation Reports Fourth Quarter Financial Results   page three
Brooks management will webcast its September quarter earnings conference call on Tuesday, November 11, 2008 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 first quarter results in mid-February, 2009.
# # #
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, anticipated capacity reductions and cost controls, future business strategy and market opportunities, level of capital expenditures and bookings expectations in the semiconductor industry, 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 inability of customers to make payments to us when due; 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, continuing uncertainties in global political and economic conditions, 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.
08-21
Brooks Automation, Inc. t 15 Elizabeth Drive t Chelmsford, Massachusetts 01824 t (978)262-2400 t www.brooks.com

 


 

BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND TWELVE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007
(In thousands, except per share data)
(unaudited)
                                 
    Three Months ended     Twelve Months ended  
    September 30,     September 30,  
    2008     2007     2008     2007  
Revenues
                               
Product
  $ 80,122     $ 140,030     $ 411,653     $ 625,405  
Services
    26,748       26,473       114,713       117,853  
 
                       
Total revenues
    106,870       166,503       526,366       743,258  
 
                       
Cost of revenues
                               
Product
    60,874       105,441       304,961       431,586  
Services
    22,913       21,075       94,577       92,077  
 
                       
Total cost of revenues
    83,787       126,516       399,538       523,663  
 
                       
Gross profit
    23,083       39,987       126,828       219,595  
 
                       
Operating expenses
                               
Research and development
    8,669       12,530       42,924       51,715  
Selling, general and administrative
    25,881       28,939       110,516       120,421  
Impairment charges
    203,570             203,570        
Restructuring charges
    1,610       3,657       7,287       7,108  
 
                       
Total operating expenses
    239,730       45,126       364,297       179,244  
 
                       
Operating income (loss) from continuing operations
    (216,647 )     (5,139 )     (237,469 )     40,351  
Interest income
    1,151       3,023       7,403       11,897  
Interest expense
    102       80       407       583  
Gain (loss) on investment
    (1,009 )           (3,940 )     5,110  
Other (income) expense, net
    1,082       (277 )     1,739       1,139  
 
                       
Income (loss) from continuing operations before income taxes, minority interests and equity in earnings of joint ventures
    (217,689 )     (1,919 )     (236,152 )     55,636  
Income tax provision (benefit)
    (1,165 )     (442 )     1,233       2,287  
 
                       
Income (loss) from continuing operations before minority interests and equity in earnings of joint ventures
    (216,524 )     (1,477 )     (237,385 )     53,349  
Minority interests in income (loss) of consolidated subsidiaries
    (48 )     (42 )     (53 )     68  
Equity in earnings of joint ventures
    260       142       707       1,020  
 
                       
Income (loss) from continuing operations
    (216,216 )     (1,293 )     (236,625 )     54,301  
Income (loss) from discontinued operations, net of income taxes
                      13,273  
Gain on sale of discontinued operations, net of income taxes
    308             679       83,898  
 
                       
Income (loss) from discontinued operations, net of income taxes
    308             679       97,171  
 
                       
Net income (loss)
  $ (215,908 )   $ (1,293 )   $ (235,946 )   $ 151,472  
 
                       
Basic income (loss) per share from continuing operations
  $ (3.45 )   $ (0.02 )   $ (3.67 )   $ 0.74  
Basic income (loss) per share from discontinued operations
    0.00             0.01       1.32  
 
                       
Basic net income (loss) per share
  $ (3.45 )   $ (0.02 )   $ (3.66 )   $ 2.06  
 
                       
Diluted income (loss) per share from continuing operations
  $ (3.45 )   $ (0.02 )   $ (3.67 )   $ 0.73  
Diluted income (loss) per share from discontinued operations
    0.00             0.01       1.31  
 
                       
Diluted net income (loss) per share
  $ (3.45 )   $ (0.02 )   $ (3.66 )   $ 2.04  
 
                       
Shares used in computing income (loss) per share
                               
Basic
    62,587       69,654       64,542       73,492  
Diluted
    62,587       69,654       64,542       74,074  
Brooks Automation, Inc. t 15 Elizabeth Drive t Chelmsford, Massachusetts 01824 t (978)262-2400 t www.brooks.com

 


 

BROOKS AUTOMATION, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(unaudited)
                 
    September 30,     September 30,  
    2008     2007  
ASSETS
               
Current assets
               
Cash and cash equivalents
  $ 110,269     $ 168,232  
Marketable securities
    33,077       80,102  
Accounts receivable, net
    66,844       105,904  
Insurance receivable for litigation
    8,772        
Inventories, net
    105,901       104,794  
Prepaid expenses and other current assets
    13,783       20,489  
 
           
Total current assets
    338,646       479,521  
Property, plant and equipment, net
    81,604       80,747  
Long-term marketable securities
    33,935       26,283  
Goodwill
    119,979       319,302  
Intangible assets, net
    58,452       76,964  
Equity investment in joint ventures
    26,309       24,007  
Other assets
    4,713       8,014  
 
           
Total assets
  $ 663,638     $ 1,014,838  
 
           
 
LIABILITIES, MINORITY INTERESTS AND STOCKHOLDERS’ EQUITY
               
Current liabilities
               
Accounts payable
  $ 37,248     $ 57,758  
Deferred revenue
    3,553       5,424  
Accrued warranty and retrofit costs
    8,174       10,986  
Accrued compensation and benefits
    18,174       23,850  
Accrued restructuring costs
    7,167       6,778  
Accrued income taxes payable
    3,151       5,934  
Accrual for litigation settlement
    7,750        
Accrued expenses and other current liabilities
    17,634       21,908  
 
           
Total current liabilities
    102,851       132,638  
Accrued long-term restructuring
    5,496       8,933  
Income taxes payable
    10,649       10,159  
Other long-term liabilities
    2,238       2,866  
 
           
Total liabilities
    121,234       154,596  
 
           
Commitments and contingencies
               
Minority interests
    409       463  
 
           
Stockholders’ equity
               
Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued and outstanding at September 30, 2008 and 2007
           
Common stock, $0.01 par value, 125,000,000 shares authorized, 77,044,737 shares issued and 63,582,868 shares outstanding at September 30, 2008, 76,483,603 shares issued and 70,423,603 shares outstanding at September 30, 2007
    770       765  
Additional paid-in capital
    1,788,891       1,780,401  
Accumulated other comprehensive income
    18,063       18,202  
Treasury stock at cost, 13,461,869 shares and 6,060,000 shares at September 30, 2008 and 2007, respectively
    (200,956 )     (110,762 )
Accumulated deficit
    (1,064,773 )     (828,827 )
 
           
Total stockholders’ equity
    541,995       859,779  
 
           
Total liabilities, minority interests and stockholders’ equity
  $ 663,638     $ 1,014,838  
 
           
Brooks Automation, Inc. t 15 Elizabeth Drive t Chelmsford, Massachusetts 01824 t (978)262-2400 t www.brooks.com

 


 

BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
                 
    Twelve Months Ended September 30,  
    2008     2007  
Cash flows from operating activities
               
Net income (loss)
  $ (235,946 )   $ 151,472  
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
               
Depreciation and amortization
    34,538       32,801  
Impairment of assets
    203,570        
Stock-based compensation
    6,909       8,743  
Discount on marketable securities
    (830 )     (1,531 )
Undistributed earnings of joint ventures
    (707 )     (1,020 )
Dividends from equity investment
          286  
Minority interests
    (53 )     68  
Loss on disposal of long-lived assets
    1,070       1,672  
Gain on sale of software division, net
    (679 )     (81,813 )
(Gain) loss on investment
    3,940       (5,110 )
Changes in operating assets and liabilities, net of acquisitions and disposals:
               
Accounts receivable
    38,612       (841 )
Inventories
    (610 )     (4,473 )
Prepaid expenses and other current assets
    5,790       (4,096 )
Accounts payable
    (20,601 )     (14,759 )
Deferred revenue
    (1,892 )     2,295  
Accrued warranty and retrofit costs
    (2,772 )     (646 )
Accrued compensation and benefits
    (5,839 )     (2,724 )
Accrued restructuring costs
    (3,089 )     (882 )
Accrued expenses and other current liabilities
    (8,755 )     (6,569 )
 
           
Net cash provided by operating activities
    12,656       72,873  
 
           
 
               
Cash flows from investing activities
               
Purchases of property, plant and equipment
    (23,439 )     (20,618 )
Purchases of intangible assets
    (75 )     (15 )
Proceeds from the sale of software division
    1,918       130,393  
Acquisition of Synetics Solutions Inc., net of cash acquired
          (38 )
Acquisition of Keystone Electronics (Wuxi) Co., cash acquired net of expenses
          162  
Purchases of marketable securities
    (151,231 )     (391,748 )
Sale/maturity of marketable securities
    190,592       362,833  
 
           
Net cash provided by investing activities
    17,765       80,969  
 
           
 
               
Cash flows from financing activities
               
Treasury stock purchases
    (90,194 )     (110,762 )
Payments of short- and long-term debt and capital lease obligations
          (1,740 )
Proceeds from issuance of common stock, net of issuance costs
    2,391       9,303  
 
           
Net cash used in financing activities
    (87,803 )     (103,199 )
 
           
Effects of exchange rate changes on cash and cash equivalents
    (581 )     1,816  
 
           
Net increase (decrease) in cash and cash equivalents
    (57,963 )     52,459  
Cash and cash equivalents, beginning of year
    168,232       115,773  
 
           
Cash and cash equivalents, end of year
  $ 110,269     $ 168,232  
 
           
Brooks Automation, Inc. t 15 Elizabeth Drive t Chelmsford, Massachusetts 01824 t (978)262-2400 t 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:
                                                 
    Quarter ended  
    September 30, 2008     June 30, 2008     September 30, 2007  
    $     per share     $     per share     $     per share  
Loss from continuing operations
  $ (216,216 )   $ (3.45 )   $ (10,326 )   $ (0.17 )   $ (1,293 )   $ (0.02 )
 
                                               
Impairment charges
    203,570       3.25                          
Restructuring charges
    1,610       0.03       2,571       0.04       3,657       0.05  
Loss on investment
    1,009       0.02                          
 
                                               
 
                                   
Net income (loss) before special charges
  $ (10,027 )   $ (0.16 )     (7,755 )   $ (0.12 )   $ 2,364     $ 0.03  
 
                                   
                                 
    Year ended  
    September 30, 2008     September 30, 2007  
    $     per share     $     per share  
Income (loss) from continuing operations
  $ (236,625 )   $ (3.67 )   $ 54,301     $ 0.73  
 
                               
Impairment charges
    203,570       3.15              
Restructuring charges
    7,287       0.11       7,108       0.10  
Loss (gain) on investment
    3,940       0.06       (5,110 )     (0.07 )
 
                               
 
                       
Net income (loss) before special charges
  $ (21,828 )   $ (0.34 )   $ 56,299     $ 0.76  
 
                       
                                         
    Quarter ended     Year Ended  
    Sept 30,     June 30,     Sept 30,     Sept 30,     Sept 30,  
    2008     2008     2007     2008     2007  
Income (loss) from continuing operations
  $ (216,216 )   $ (10,326 )   $ (1,293 )   $ (236,625 )   $ 54,301  
 
                                       
Less: Interest income
    (1,151 )     (1,237 )     (3,023 )     (7,403 )     (11,897 )
Add: Interest expense
    466       93       80       1,002       583  
Add: Income tax provision (benefit)
    (1,165 )     843       (442 )     1,233       2,287  
Add: Depreciation
    4,554       4,718       4,709       18,170       17,479  
Add: Amortization of completed technology
    2,331       2,331       2,331       9,324       9,324  
Add; Amortization of acquired intangible assets
    1,786       1,786       1,482       7,044       5,939  
Add: Stock compensation expense
    1,297       1,069       2,863       6,909       8,743  
Add: Impairment charges
    203,570                   203,570        
Add: Restructuring charges
    1,610       2,571       3,657       7,287       7,108  
Add: Loss (gain) on investment
    1,009                   3,940       (5,110 )
 
                                       
 
                             
Adjusted EBITDA
  $ (1,909 )   $ 1,848     $ 10,364     $ 14,451     $ 88,757  
 
                             
Brooks Automation, Inc. t 15 Elizabeth Drive t Chelmsford, Massachusetts 01824 t (978)262-2400 t www.brooks.com