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8-K - FORM 8-K - Brooks Automation, Inc.b82017e8vk.htm
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EX-99.3 - EX-99.3 - Brooks Automation, Inc.b82017exv99w3.htm
(BROOKS AUTOMATION LOGO)
Press Release
For Immediate Release
August 5, 2010
Brooks Automation Reports Third Quarter Financial Results
Chelmsford, Massachusetts August 5, 2010 — Brooks Automation, Inc. (Nasdaq: BRKS) announced financial results for the Company’s third quarter of fiscal year 2010 ended on June 30, 2010.
Revenues for the third quarter of 2010 were $156.8 million, compared to revenues of $43.9 million in the third quarter of 2009, an increase of 257.3%. Sequentially, revenues grew 5.7% from second quarter revenues of $148.4 million.
Net income attributable to Brooks Automation, Inc. (“Brooks”) for the third quarter of fiscal 2010 amounted to $16.6 million, or $0.26 per diluted share.
Excluding non-recurring income and special charges, the adjusted net income of $16.9 million or $0.26 per diluted share improved on a sequential basis from $10.1 million or $0.16 per diluted share and compares with a loss of $(23.0) million or $(0.37) per diluted share in the third 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 non-recurring income and special charges, the Net Income attributable to Brooks in the second quarter was $21.0 million or $0.33 per diluted share and the Net Loss attributable to Brooks in the third quarter of the prior year was $(25.7) million or $(0.41) per diluted share.
Adjusted Earnings (Loss) before Interest, Tax, Depreciation and Amortization for the third quarter of fiscal 2010 was $22.5 million, which compared to $17.3 million in the second quarter of fiscal 2010 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 included in this release.
Net cash provided by operating activities for the nine months ended June 30, 2010 was $17.9 million, which together with proceeds from the sale of intellectual property rights in the second fiscal quarter of $7.8 million resulted in an increase of total cash and marketable securities to $132.9 million at June 30, 2010.
— more —
Brooks Automation, Inc. 15 Elizabeth Drive Chelmsford, Massachusetts 01824 (978)262-2400 www.brooks.com.

 


 

     
Brooks Automation Reports Third Quarter Financial Results   page two
Revenues for the nine months ended June 30, 2010 were $411.3 million, a 166.0% increase from $154.6 million for the same prior fiscal year period. Net income attributable to Brooks for the current fiscal year to date was $34.8 million, as compared to the prior year period’s net loss of $(213.4) million. Excluding non-recurring income and special charges, the adjusted income (loss) from operations was $25.9 million or $0.40 per diluted share in the first nine months of fiscal 2010 as compared to a loss of $(89.0) million or $(1.42) per diluted share in the same prior fiscal year period. Non-recurring income and special charges are identified in the unaudited financial information included in this release.
Commenting on recent activities, Robert J. Lepofsky, Chief Executive Officer of Brooks stated, “Business activity continues to be strong across our entire portfolio of critical component and system solutions. Over the course of twelve months our top line has more than tripled and today we are delivering the best operating performance in the entire history of Brooks. In addition to solid execution in the core business our longer term growth initiatives outside of traditional semiconductor markets have moved forward as planned. Last quarter we saw initial shipments of new system platforms for the LED market and increasing interest in our innovative Simplicity Systems instrumentation products.”
Mr. Lepofsky added, “All current indications from our global customer base are for continued strong performance. We anticipate continued revenue growth and expanding operating margins in the near term and have high expectations for our business opportunities in targeted new market segments next year and beyond.”
Brooks management will webcast its third 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 Third 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 operating margin 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 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, 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)
                 
    June 30,     September 30,  
    2010     2009  
Assets
               
Current assets
               
Cash and cash equivalents
  $ 54,987     $ 59,985  
Marketable securities
    49,123       28,046  
Accounts receivable, net
    71,932       38,428  
Inventories, net
    116,896       84,738  
Prepaid expenses and other current assets
    13,059       9,992  
 
           
Total current assets
    305,997       221,189  
Property, plant and equipment, net
    65,531       74,793  
Long-term marketable securities
    28,816       22,490  
Goodwill
    48,138       48,138  
Intangible assets, net
    12,093       14,081  
Equity investment in joint ventures
    29,795       29,470  
Other assets
    2,560       3,161  
 
           
Total assets
  $ 492,930     $ 413,322  
 
           
Liabilities and equity
               
Current liabilities
               
Accounts payable
  $ 70,506     $ 26,360  
Deferred revenue
    4,402       2,916  
Accrued warranty and retrofit costs
    7,476       5,698  
Accrued compensation and benefits
    11,869       14,317  
Accrued restructuring costs
    4,138       5,642  
Accrued income taxes payable
    1,679       2,686  
Accrued expenses and other current liabilities
    12,266       12,870  
 
           
Total current liabilities
    112,336       70,489  
Accrued long-term restructuring
    450       2,019  
Income taxes payable
    11,098       10,755  
Long-term pension liability
    8,428       7,913  
Other long-term liabilities
    2,506       2,523  
 
           
Total liabilities
    134,818       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, 78,796,148 shares issued and 65,334,279 shares outstanding at June 30, 2010, 77,883,173 shares issued and 64,421,304 shares outstanding at September 30, 2009
    788       779  
Additional paid-in capital
    1,800,960       1,795,619  
Accumulated other comprehensive income
    14,740       16,318  
Treasury stock at cost, 13,461,869 shares at June 30, 2010 and September 30, 2009
    (200,956 )     (200,956 )
Accumulated deficit
    (1,257,825 )     (1,292,631 )
 
           
Total Brooks Automation, Inc. stockholders’ equity
    357,707       319,129  
Noncontrolling interest in subsidiaries
    405       494  
 
           
Total equity
    358,112       319,623  
 
           
Total liabilities and equity
  $ 492,930     $ 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     Nine months ended  
    June 30,     June 30,  
    2010     2009     2010     2009  
Revenues
                               
Product
  $ 141,789     $ 31,510     $ 366,699     $ 116,479  
Services
    15,001       12,366       44,641       38,142  
 
                       
Total revenues
    156,790       43,876       411,340       154,621  
 
                       
Cost of revenues
                               
Product
    99,118       29,301       263,634       115,078  
Services
    11,767       10,617       36,605       36,477  
Impairment of long-lived assets
          408             20,924  
 
                       
Total cost of revenues
    110,885       40,326       300,239       172,479  
 
                       
Gross profit (loss)
    45,905       3,550       111,101       (17,858 )
 
                       
Operating expenses
                               
Research and development
    7,901       7,549       23,119       24,492  
Selling, general and administrative
    21,200       19,559       61,021       72,400  
Impairment of goodwill
                      71,800  
Impairment of long-lived assets
                      14,588  
Restructuring charges
    288       2,327       2,294       12,293  
 
                       
Total operating expenses
    29,389       29,435       86,434       195,573  
 
                       
Operating income (loss)
    16,516       (25,885 )     24,667       (213,431 )
Interest income
    221       536       814       2,079  
Interest expense
    7       60       34       258  
Sale of intellectual property rights
                7,840        
Loss on investment
                191       1,185  
Other (income) expense, net
    7       (114 )     295       35  
 
                       
Income (loss) before income taxes and equity in earnings (losses) of joint ventures
    16,723       (25,295 )     32,801       (212,830 )
Income tax provision (benefit)
    (35 )     148       (2,219 )     728  
 
                       
Income (loss) before equity in earnings (losses) of joint ventures
    16,758       (25,443 )     35,020       (213,558 )
Equity in earnings (losses) of joint ventures
    (112 )     (59 )     (303 )     253  
 
                       
Net income (loss)
  $ 16,646     $ (25,502 )   $ 34,717     $ (213,305 )
Add: Net loss (income) attributable to noncontrolling interests
    (74 )     (240 )     89       (63 )
 
                       
Net income (loss) attributable to Brooks Automation, Inc.
  $ 16,572     $ (25,742 )   $ 34,806     $ (213,368 )
 
                       
Basic net income (loss) per share attributable to Brooks Automation, Inc. common stockholders
  $ 0.26     $ (0.41 )   $ 0.55     $ (3.40 )
 
                       
Diluted net income (loss) per share attributable to Brooks Automation, Inc. common stockholders
  $ 0.26     $ (0.41 )   $ 0.54     $ (3.40 )
 
                       
Shares used in computing earnings (loss) per share
                               
Basic
    63,969       63,011       63,679       62,835  
Diluted
    64,264       63,011       64,123       62,835  
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)
                 
    Nine months ended  
    June 30,  
    2010     2009  
Cash flows from operating activities
               
Net income (loss)
  $ 34,717     $ (213,305 )
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
               
Depreciation and amortization
    14,029       20,841  
Impairment of goodwill
          71,800  
Impairment of long-lived assets
          35,512  
Sale of intellectual property rights
    (7,840 )      
Stock-based compensation
    4,889       5,007  
Amortization of premium on marketable securities
    626       70  
Undistributed (earnings) losses of joint ventures
    303       (253 )
Gain on disposal of long-lived assets
    (4 )     (12 )
Loss on investment
    191       1,185  
Changes in operating assets and liabilities, net of acquisitions and disposals:
               
Accounts receivable
    (33,946 )     38,432  
Inventories
    (33,683 )     14,324  
Prepaid expenses and other current assets
    (3,065 )     5,199  
Accounts payable
    44,256       (21,533 )
Deferred revenue
    1,598       (658 )
Accrued warranty and retrofit costs
    1,769       (2,558 )
Accrued compensation and benefits
    (2,433 )     (4,313 )
Accrued restructuring costs
    (3,043 )     (1,902 )
Accrued expenses and other
    (482 )     (757 )
 
           
Net cash provided by (used in) operating activities
    17,882       (52,921 )
 
           
Cash flows from investing activities
               
Purchases of property, plant and equipment
    (1,908 )     (10,843 )
Purchases of marketable securities
    (95,722 )     (53,316 )
Sale/maturity of marketable securities
    67,492       58,903  
Proceeds from the sale of intellectual property rights
    7,840        
Proceeds from the sale of long-lived assets
          1,093  
Purchase of intangible assets
    (892 )     (38 )
Other
    243        
 
           
Net cash used in investing activities
    (22,947 )     (4,201 )
 
           
Cash flows from financing activities
               
Proceeds from issuance of common stock, net of issuance costs
    609       675  
 
           
Net cash provided by financing activities
    609       675  
 
           
Effects of exchange rate changes on cash and cash equivalents
    (542 )     (886 )
 
           
Net decrease in cash and cash equivalents
    (4,998 )     (57,333 )
Cash and cash equivalents, beginning of period
    59,985       110,269  
 
           
Cash and cash equivalents, end of period
  $ 54,987     $ 52,936  
 
           
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  
    June 30, 2010     March 31, 2010     June 30, 2009  
    $     per share     $     per share     $     per share  
Net income (loss) attributable to Brooks Automation, Inc.
  $ 16,572     $ 0.26     $ 21,029     $ 0.33     $ (25,742 )   $ (0.41 )
 
                                               
Impairment charges — cost of revenues
                            408       0.01  
Restructuring charges
    288       0.00       484       0.01       2,327       0.04  
One-time income tax benefit
                (3,899 )     (0.06 )            
Sale of intellectual property rights, net of tax
                (7,519 )     (0.12 )            
 
                                   
Adjusted net income (loss) attributable to Brooks Automation, Inc.
    16,860       0.26       10,095       0.16       (23,007 )     (0.37 )
 
                                               
Stock-based compensation
    1,328       0.02       2,044       0.03       1,613       0.03  
 
                                   
Adjusted net income (loss) attributable to Brooks Automation, Inc. — excluding stock-based compensation
  $ 18,188     $ 0.28     $ 12,139     $ 0.19     $ (21,394 )   $ (0.34 )
 
                                   
                                 
    Nine Months Ended  
    June 30, 2010     June 30, 2009  
    $     per share     $     per share  
Net income (loss) attributable to Brooks Automation, Inc.
  $ 34,806     $ 0.54     $ (213,368 )   $ (3.40 )
 
                               
Impairment charges — cost of revenues
                20,924       0.33  
Impairment charges — operating expense
                86,388       1.37  
Restructuring charges
    2,294       0.04       12,293       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
    (7,519 )     (0.12 )            
 
                       
Adjusted net income (loss) attributable to Brooks Automation, Inc.
    25,873       0.40       (88,966 )     (1.42 )
 
                               
Stock-based compensation
    4,889       0.08       5,007       0.08  
 
                       
Adjusted net income (loss) attributable to Brooks Automation, Inc. — excluding stock-based compensation
  $ 30,762     $ 0.48     $ (83,959 )   $ (1.34 )
 
                       
                                         
    Quarter ended     Nine months ended  
    June 30,     Mar 31,     June 30,     June 30,     June 30,  
    2010     2010     2009     2010     2009  
Net income (loss) attributable to Brooks Automation, Inc.
  $ 16,572     $ 21,029     $ (25,742 )   $ 34,806     $ (213,368 )
 
                                       
Less: Interest income
    (221 )     (265 )     (536 )     (814 )     (2,079 )
Add: Interest expense
    7       11       60       34       258  
Add: Income tax provision (benefit)
    (35 )     (2,819 )     148       (2,219 )     728  
Add: Depreciation
    3,597       3,701       3,679       11,144       11,455  
Add: Amortization of completed technology
    479       472       457       1,408       5,119  
Add: Amortization of acquired intangible assets
    493       493       381       1,477       4,267  
Add: Stock-based compensation
    1,328       2,044       1,613       4,889       5,007  
Add: Restructuring related inventory charges
                            3,612  
Add: Impairment charges — cost of revenues
                408             20,924  
Add: Impairment charges — operating expense
                            86,388  
Add: Restructuring charges
    288       484       2,327       2,294       12,293  
Add: Loss on investment
                      191       1,185  
Sale of intellectual property rights, pre-tax
          (7,840 )           (7,840 )      
 
                             
 
                                       
Adjusted EBITDA
  $ 22,508     $ 17,310     $ (17,205 )   $ 45,370     $ (64,211 )
 
                             
Brooks Automation, Inc. 15 Elizabeth Drive Chelmsford, Massachusetts 01824 (978)262-2400 www.brooks.com