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8-K - FORM 8-K - Brooks Automation, Inc.b78045e8vk.htm
EX-99.2 - EX-99.2 - Brooks Automation, Inc.b78045exv99w2.htm
Exhibit 99.1
(BROOKS AUTOMATION LOGO)
Press Release
For Immediate Release
November 12, 2009
Brooks Automation Reports Fourth Quarter Financial Results
Chelmsford, Massachusetts November 12, 2009 — Brooks Automation, Inc. (Nasdaq: BRKS) announced financial results for the Company’s fourth quarter of fiscal year 2009 ended on September 30, 2009.
Revenues for the fourth quarter of 2009 were $64.1 million, compared to revenues of $106.9 million in the fourth quarter of 2008, a decrease of 40.0%. Sequentially, revenues grew 46.1% from third quarter revenues of $43.9 million.
Net loss for the fourth quarter of fiscal 2009 amounted to $14.5 million, or $0.23 per diluted share. Excluding special charges totaling $0.5 million, the non-GAAP net loss for the fourth quarter of fiscal 2009 was $14.0 million, or $0.22 per diluted share. Special charges taken during the quarter were $0.5 million of residual restructuring charges related to the 2009 restructuring initiatives.
The fiscal 2009 fourth quarter results compare with a loss from continuing operations of $216.2 million, or $3.45 per diluted share in the fourth quarter of the prior year. Sequentially, the net loss was $25.7 million or $0.41 per diluted share in the third quarter of 2009. Excluding special charges, the net loss from continuing operations for the fourth quarter of the prior year was $10.0 million, or $0.16 per diluted share. Sequentially, the net loss for the third quarter excluding special charges, was $23.0 million or $0.37 per diluted share. Special charges are identified in a table to this release.
Adjusted Earnings (Loss) before Interest, Tax, Depreciation and Amortization for the fourth quarter of fiscal 2009 was ($8.7) million, which compared to ($1.9) million in the prior year period and ($17.2) million in the third 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 attached to this release.
Effective working capital management and reduced levels of losses reduced the use of cash in operations in the quarter to $3.6 million. The Company closed the quarter with $110.5 million of cash and marketable securities.
Revenues for the fiscal year ended September 30, 2009 were $218.7 million, a 58.4% decrease from the prior fiscal year revenues of $526.4 million. The net loss for the current fiscal year was $227.9 million, as compared to the prior year’s net loss of $235.9 million. Excluding special charges, the adjusted loss from continuing operations before special charges for fiscal 2009 and 2008 was $102.9 million or $1.64 per share and $21.8 million or $0.34 per share, respectively. Special charges are identified in the tables to this release.
— 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
     
Commenting on recent activities, Robert J. Lepofsky, President and Chief Executive Officer of Brooks stated, “We continue to see a sharp and continuing ramp in requirements from our semiconductor OEM customers. As previously announced, on top of the 46% increase in sales just reported we anticipate another increase in revenues in the December ending quarter that will exceed 45%. Based on current order booking activity and discussions with our major customers we have gained a growing confidence in projecting strong sales growth well into calendar year 2010. In addition, we presently anticipate converging on at least break even results in the current quarter and positive earnings for our full fiscal year.”
“Many of the investments we made in new product and market development initiatives during the business downturn are now beginning to have an impact” added Mr. Lepofsky. “We are currently working with several customers on new product platforms serving markets beyond our core semiconductor manufacturing equipment business. Combined with the continuing recovery of our base business we believe these new programs can accelerate our growth track well into next year and beyond.”
Brooks management will webcast its September quarter earnings conference today at 10:00 a.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 2010 first quarter results in early February, 2010.
#   #   #
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 see www.brooks.com or email co.csr@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 revenues, our profit and loss and cash flow expectations 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 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
(In thousands, except share and per share data)
(unaudited)
                 
    September 30,     September 30,  
    2009     2008  
ASSETS
Current assets
               
Cash and cash equivalents
  $ 59,985     $ 110,269  
Marketable securities
    28,046       33,077  
Accounts receivable, net
    38,428       66,844  
Insurance receivable for litigation
    120       8,772  
Inventories, net
    84,738       105,901  
Prepaid expenses and other current assets
    9,872       13,783  
 
           
Total current assets
    221,189       338,646  
Property, plant and equipment, net
    74,793       81,604  
Long-term marketable securities
    22,490       33,935  
Goodwill
    48,138       119,979  
Intangible assets, net
    14,081       58,452  
Equity investment in joint ventures
    29,470       26,309  
Other assets
    3,161       4,713  
 
           
Total assets
  $ 413,322     $ 663,638  
 
           
 
               
LIABILITIES, MINORITY INTERESTS AND STOCKHOLDERS’ EQUITY
 
               
Current liabilities
               
Accounts payable
  $ 26,360     $ 37,248  
Deferred revenue
    2,916       3,553  
Accrued warranty and retrofit costs
    5,698       8,174  
Accrued compensation and benefits
    14,317       18,174  
Accrued restructuring costs
    5,642       7,167  
Accrued income taxes payable
    2,686       3,151  
Accrual for litigation settlement
          7,750  
Accrued expenses and other current liabilities
    12,870       17,634  
 
           
Total current liabilities
    70,489       102,851  
Accrued long-term restructuring
    2,019       5,496  
Income taxes payable
    10,755       10,649  
Long-term pension liability
    7,913        
Other long-term liabilities
    2,523       2,238  
 
           
Total liabilities
    93,699       121,234  
 
           
Commitments and contingencies
               
Minority interests
    494       409  
 
           
Stockholders’ equity
               
Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued and outstanding at September 30, 2009 and 2008
           
Common stock, $0.01 par value, 125,000,000 shares authorized, 77,883,173 shares issued and 64,421,304 shares outstanding at September 30, 2009, 77,044,737 shares issued and 63,582,868 shares outstanding at September 30, 2008
    779       770  
Additional paid-in capital
    1,795,619       1,788,891  
Accumulated other comprehensive income
    16,318       18,063  
Treasury stock at cost, 13,461,869 shares at September 30, 2009 and 2008
    (200,956 )     (200,956 )
Accumulated deficit
    (1,292,631 )     (1,064,773 )
 
           
Total stockholders’ equity
    319,129       541,995  
 
           
Total liabilities, minority interests and stockholders’ equity
  $ 413,322     $ 663,638  
 
           
Brooks Automation, Inc. ¨ 15 Elizabeth Drive ¨ Chelmsford, Massachusetts 01824 ¨ (978)262-2400 ¨ www.brooks.com

 


 

BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS AND YEAR ENDED SEPTEMBER 30, 2009 AND 2008
(In thousands, except per share data)
(unaudited)
                                 
    Three months ended     Twelve months ended  
    September 30,     September 30,  
    2009     2008     2009     2008  
Revenues
                               
Product
  $ 51,073     $ 89,265     $ 167,552     $ 456,422  
Services
    13,012       17,605       51,154       69,944  
 
                       
Total revenues
    64,085       106,870       218,706       526,366  
 
                       
Cost of revenues
                               
Product
    40,292       68,365       155,370       335,163  
Services
    11,931       15,422       48,408       64,375  
Impairment of long-lived assets
                20,924        
 
                       
Total cost of revenues
    52,223       83,787       224,702       399,538  
 
                       
Gross profit (loss)
    11,862       23,083       (5,996 )     126,828  
 
                       
Operating expenses
                               
Research and development
    7,115       8,669       31,607       42,924  
Selling, general and administrative
    18,831       25,881       91,231       110,516  
Impairment of goodwill
          197,883       71,800       197,883  
Impairment of long-lived assets
          5,687       14,588       5,687  
Restructuring charges
    513       1,610       12,806       7,287  
 
                       
Total operating expenses
    26,459       239,730       222,032       364,297  
 
                       
Operating loss from continuing operations
    (14,597 )     (216,647 )     (228,028 )     (237,469 )
Interest income
    640       1,151       2,719       7,403  
Interest expense
    196       102       454        407  
Loss on investment
          1,009       1,185       3,940  
Other (income) expense, net
    (66 )     1,082       (31 )     1,739  
 
                       
Loss from continuing operations before income taxes, minority interests and equity (loss) in earnings of joint ventures
    (14,087 )     (217,689 )     (226,917 )     (236,152 )
Income tax provision (benefit)
    (85 )     (1,165 )     643       1,233  
 
                       
Loss from continuing operations before minority interests and equity (loss) in earnings of joint ventures
    (14,002 )     (216,524 )     (227,560 )     (237,385 )
Minority interests in income (loss) of consolidated subsidiaries
    22       (48 )     85       (53 )
Equity (loss) in earnings of joint ventures
    (466 )     260       (213 )      707  
 
                       
Loss from continuing operations
    (14,490 )     (216,216 )     (227,858 )     (236,625 )
Gain on sale of discontinued operations, net of income taxes
          308              679  
 
                       
Income from discontinued operations, net of income taxes
          308              679  
 
                       
Net loss
  $ (14,490 )   $ (215,908 )   $ (227,858 )   $ (235,946 )
 
                       
Basic loss per share from continuing operations
  $ (0.23 )   $ (3.45 )   $ (3.62 )   $ (3.67 )
Basic income per share from discontinued operations
          0.00             0.01  
 
                       
Basic net loss per share
  $ (0.23 )   $ (3.45 )   $ (3.62 )   $ (3.66 )
 
                       
Diluted loss per share from continuing operations
  $ (0.23 )   $ (3.45 )   $ (3.62 )   $ (3.67 )
Diluted income per share from discontinued operations
          0.00             0.01  
 
                       
Diluted net loss per share
  $ (0.23 )   $ (3.45 )   $ (3.62 )   $ (3.66 )
 
                       
Shares used in computing income (loss) per share
                               
Basic
    63,135       62,587       62,911       64,542  
Diluted
    63,135       62,587       62,911       64,542  
Brooks Automation, Inc. ¨ 15 Elizabeth Drive ¨ Chelmsford, Massachusetts 01824 ¨ (978)262-2400 ¨ www.brooks.com

 


 

BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
                 
    Year Ended September 30,  
    2009     2008  
Cash flows from operating activities
               
Net loss
  $ (227,858 )   $ (235,946 )
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
               
Depreciation and amortization
    25,856       34,538  
Impairment of assets
    107,312       203,570  
Stock-based compensation
    5,817       6,909  
Amortization of premium (discount) on marketable securities
    127       (830 )
Undistributed earnings of joint ventures
    213       (707 )
Minority interests
    85       (53 )
Loss on disposal of long-lived assets
    17       1,070  
Gain on sale of software division, net
          (679 )
Loss on investment
    1,185       3,940  
Changes in operating assets and liabilities, net of acquisitions and disposals:
               
Accounts receivable
    29,963       38,612  
Inventories
    21,779       (610 )
Prepaid expenses and other current assets
    4,527       5,790  
Accounts payable
    (10,947 )     (20,601 )
Deferred revenue
    (676 )     (1,892 )
Accrued warranty and retrofit costs
    (2,496 )     (2,772 )
Accrued compensation and benefits
    (3,869 )     (5,839 )
Accrued restructuring costs
    (5,007 )     (3,089 )
Accrued expenses and other current liabilities
    (2,522 )     (7,755 )
 
           
Net cash (used in) provided by operating activities
    (56,494 )     13,656  
 
           
Cash flows from investing activities
               
Purchases of property, plant and equipment
    (11,339 )     (23,439 )
Proceeds from the sale of software division
          1,918  
Acquisitions
          (1,000 )
Purchases of marketable securities
    (59,091 )     (151,231 )
Sale/maturity of marketable securities
    75,628       190,592  
Other
    1,055       (75 )
 
           
Net cash provided by investing activities
    6,253       16,765  
 
           
Cash flows from financing activities
               
Treasury stock purchases
          (90,194 )
Issuance of common stock under stock option and stock purchase plans
    1,248       2,391  
 
           
Net cash provided by (used in) financing activities
    1,248       (87,803 )
 
           
Effects of exchange rate changes on cash and cash equivalents
    (1,291 )     (581 )
 
           
Net decrease in cash and cash equivalents
    (50,284 )     (57,963 )
Cash and cash equivalents, beginning of year
    110,269       168,232  
 
           
Cash and cash equivalents, end of year
  $ 59,985     $ 110,269  
 
           
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 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:
Brooks Automation, Inc.  ¨  15 Elizabeth Drive  ¨  Chelmsford, Massachusetts 01824  ¨  (978)262-2400  ¨ www.brooks.com

 


 

                                                 
                    Quarter ended        
    September 30, 2009     June 30, 2009     September 30, 2008  
    $     per share     $     per share     $     per share  
 
                                               
Loss from continuing operations
  $ (14,490 )   $ (0.23 )   $ (25,742 )   $ (0.41 )   $ (216,216 )   $ (3.45 )
 
                                               
Impairment charges - cost of revenues
    -       -       408       0.01       -       -  
Impairment charges - operating expense
-       -       -       -       203,570       3.25  
Restructuring charges
    513       0.01       2,327       0.04       1,610       0.03  
Loss on investment
    -       -       -       -       1,009       0.02  
 
                                               
 
                                   
Adjusted loss from continuing operations
$ (13,977 )   $ (0.22 )   $ (23,007 )   $ (0.37 )   $ (10,027 )   $ (0.16 )
 
                                   
 
    Year ended  
    September 30, 2009     September 30, 2008  
    $     per share     $     per share  
 
                                               
Loss from continuing operations
  $ (227,858 )   $ (3.62 )   $ (236,625 )   $ (3.67 )
 
                               
Impairment charges - cost of revenues
    20,924       0.33       -       -  
Impairment charges - operating expenses
    86,388       1.37       203,570       3.15  
Restructuring charges
    12,806       0.20       7,287       0.11  
Restructuring related inventory charges
    3,612       0.06       -       -  
Loss on investment
    1,185       0.02       3,940       0.06  
 
                               
 
                       
Adjusted loss from continuing operations
  $ (102,943 )   $ (1.64 )   $ (21,828 )   $ (0.34 )
 
                       
 
    Quarter ended     Year ended  
    Sept 30,     June 30,     Sept 30,     Sept 30,     Sept 30,  
    2009     2009     2008     2009     2008  
 
                                               
Loss from continuing operations
  $ (14,490 )   $ (25,742 )   $ (216,216 )     (227,858 )     (236,625 )
 
                                       
Less: Interest income
    (640 )     (536 )     (1,151 )     (2,719 )     (7,403 )
Add: Interest expense
    196       60       466       454       1,002  
Add: Income tax provision (benefit)
    (85 )     148       (1,165 )     643       1,233  
Add: Depreciation
    4,187       3,679       4,554       15,642       18,170  
Add: Amortization of completed technology
    457       457       2,331       5,576       9,324  
Add: Amortization of acquired intangible assets
    371       381       1,786       4,638       7,044  
Add: Stock compensation expense
    810       1,613       1,297       5,817       6,909  
Add: Restructuring related inventory charges
    -       -       -       3,612       -  
Add: Impairment charges - cost of revenues
    -       408       -       20,924       -  
Add: Impairment charges - operating expense
    -       -       203,570       86,388       203,570  
Add: Restructuring charges
    513       2,327       1,610       12,806       7,287  
Add: Loss on investment
    -       -       1,009       1,185       3,940  
 
                                       
 
                             
Adjusted EBITDA
  $ (8,681 )   $ (17,205 )   $ (1,909 )   $ (72,892 )   $ 14,451  
 
                             
Brooks Automation, Inc.  ¨  15 Elizabeth Drive  ¨  Chelmsford, Massachusetts 01824  ¨  (978)262-2400  ¨ www.brooks.com