Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Brooks Automation, Inc. | brks-20170802x8k.htm |
Exhibit 99.1
Brooks Automation Reports Results for the Fiscal Third Quarter of 2017, Ended June 30, 2017
CHELMSFORD, Mass., August 2, 2017 (GLOBE NEWSWIRE) -- Brooks Automation, Inc. (Nasdaq: BRKS), a leading worldwide provider of automation and cryogenic solutions for multiple markets, including semiconductor manufacturing and life sciences, today reported financial results for the third quarter of 2017, ended June 30, 2017.
Fiscal Third Quarter of 2017 Financial and Operational Highlights:
|
· |
Revenue was $181.7 million, 23% higher compared to Q3 2016 and 7% higher than Q2 2017; |
|
· |
Life Sciences Systems segment revenue grew 26% compared to Q3 2016, to $36.8 million; |
|
· |
GAAP Net Income was $17.4 million with diluted EPS of $0.25; |
|
· |
Non-GAAP Net Income was $25.4 million with diluted EPS of $0.36; and |
|
· |
Cash flow from operations was $18.1 million, accumulating year to date to $61.4 million. |
Summary of GAAP and Non-GAAP Earnings
|
|
Quarter Ended |
|||||||
|
|
June 30, |
|
March 31, |
|
June 30, |
|||
|
Dollars in thousands, except per share data |
2017 |
|
2017 |
|
2016 |
|||
|
GAAP net income |
$ |
17,350 |
|
$ |
14,005 |
|
$ |
8,564 |
|
GAAP diluted earnings per share |
$ |
0.25 |
|
$ |
0.20 |
|
$ |
0.12 |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income |
$ |
25,353 |
|
$ |
19,839 |
|
$ |
11,128 |
|
Non-GAAP diluted earnings per share |
$ |
0.36 |
|
$ |
0.28 |
|
$ |
0.16 |
A reconciliation of non-GAAP measures to the most nearly comparable GAAP measures follows the consolidated balance sheets, statements of operations and statements of cash flows included in this release.
Management Comments
“The third quarter can be summarized as high growth, record gross margins, and strong cash flow,” commented Steve Schwartz, CEO of Brooks Automation. “Performance in both segments reflects a portfolio built for the market and excellence in operational execution. Semiconductor customers turn to us as the automation source for the industry. Life Science customers recognize Brooks as the single comprehensive solution for all of their sample management needs. Our success has brought additional opportunities and we are winning consistently in each space.”
“The Life Science business momentum continues and we are very pleased with the recent acquisition of Pacific Bio-Material Management, Inc.,” continued Steve Schwartz. “The integration of more than 250 biotech, pharma, clinical and research customers into our Brooks storage services platform provides a broader base for continued growth.”
GAAP Summary
Revenue for the third quarter of fiscal 2017 increased 7% sequentially to $181.7 million compared to the second quarter of fiscal 2017. The growth was driven by an 8% increase in Brooks Semiconductor Solutions Group segment and a 6% increase in Brooks Life Science Systems segment. Gross margin was 39.4%, up 130 basis points from the second quarter of fiscal 2017. Operating expenses of $52.8 million increased 6%, or $3.1 million, from the previous quarter driven primarily by M&A and consulting expenses. In the third quarter, the Company incurred $0.8 million of restructuring charges compared to $0.9 million in the second quarter. GAAP net income in the quarter was $17.4 million and diluted earnings per share was $0.25, which increased $0.05 from the second quarter.
The amortization of intangible assets, restructuring charges, impact of purchase price accounting adjustments, charges related to M&A and special charges are appropriately included in the GAAP summary of earnings discussed above. The impact on earnings of such non-GAAP adjustments is referenced in the unaudited table included within this press release.
In the following analysis of the non-GAAP results, Brooks adjusted the GAAP results for the impact of amortization of intangible assets, restructuring charges, purchase price accounting adjustments and charges related to M&A to provide investors better perspective on the results of operations, which the Company believes is more comparable to the similar analysis provided by its peers. Brooks also excludes special charges or gains, such as impairment losses, gains or losses from the sale of assets, as well as other gains and charges that are assessed to not be representative of the normal operations of the business. Brooks currently includes a valuation allowance reserve against U.S. deferred tax assets in its GAAP results. In assessing the appropriate tax rate for the non-GAAP results, the Company evaluated the adjustments discussed above and concluded it was appropriate to maintain the valuation allowance reserve in deriving the non-GAAP tax rate.
Results of Q3 Fiscal 2017 (Non-GAAP Discussion)
Non-GAAP net income was $25.4 million in the third quarter resulting in non-GAAP diluted earnings per share of $0.36 in the third quarter. The non-GAAP diluted earnings per share is 27% higher than the second quarter of fiscal 2017 and 125% higher than the third quarter of fiscal 2016.
As noted above, revenue for the third quarter of fiscal 2017 was $181.7 million, up 7% compared to the second quarter of 2017. The Semiconductor Solutions segment revenue increased 8% to $145.0 million, driven by strength in cryogenic pumps, automation robots and systems, and services. Contamination Control Solutions revenue, as previously projected, was lower in the third quarter compared to the second quarter. Life Sciences segment revenue grew 6% sequentially to $36.8 million, driven by growth in both systems and BioStorage services revenue.
Adjusted gross margin, which excludes amortization and purchase accounting impacts, was 40.0% in the third quarter, up 100 basis points from the prior quarter. The Semiconductor Solutions segment adjusted gross margin was 40.5% in the third quarter compared to 38.7% in the prior quarter reflecting improved margins in both Automation and Contamination Control Solutions. The Life Sciences segment adjusted gross margin was 38.0% in the third quarter compared to 40.1% in the second quarter, with margin softness in both BioStorage services and the systems business. Within BioStorage services, the storage margins held flat compared to the second quarter, but a higher mix of genomic services provided an unfavorable impact. In summary, the total adjusted gross profit increased by $6.7 million compared to the prior quarter, driven by $12 million higher revenue across both segments and improved gross margins in the Semiconductor Solutions segment.
Bookings for the Semiconductor Solutions segment in the third quarter totaled $131.1 million, compared to $171.6 million in the second quarter. Backlog for the segment finished at $111 million, $14 million below the second quarter ending backlog, significantly driven by lower Contamination Control Solutions backlog. The Life Sciences segment booked a total of $42.2 million of new contract value in the third quarter, compared to $48.1 million in the second quarter. Year to date, Life Sciences new contract value has totaled $154 million compared to $114 million in the same period of 2016.
Non-GAAP operating expenses of $45.0 million in the third quarter of fiscal 2017 increased 1%, or $0.4 million, sequentially over the prior quarter, reflecting a 5% increase in R&D expenses and a 1% decrease in SG&A expense.
Adjusted EBITDA was $36.7 million in the third quarter, which improved by 19% from the second quarter. The Semiconductor Solutions segment reported non-GAAP segment operating profit of $26.8 million, which was 18.5% of revenue. The Life Sciences segment reported non-GAAP operating profit of $1.6 million, 4.4% of revenue.
Cash flow from operations was $18.1 million in the third quarter. The Company's cash, cash equivalents, and marketable securities totaled $119.7 million at the end of the quarter, compared to $110.1 million at end of the second quarter. On July 5, 2017, the Company acquired Pacific-Bio Material Management, Inc., a provider of storage and cold-chain logistics services for biological sample materials, for $34.3 million, net of cash acquired and subject to customary working capital adjustments.
2
Quarterly Cash Dividend
The Company announced that the Board of Directors has reiterated a dividend of $0.10 per share payable on September 29, 2017 to stockholders of record on September 8, 2017. Future dividend declarations, as well as the record and payment dates for such dividends, are subject to the final determination of the Company's Board of Directors.
Guidance for Fourth Fiscal Quarter 2017
The Company announced revenue and earnings guidance for the fourth quarter of fiscal 2017. Revenue is expected to be in the range of $172 million to $178 million and non-GAAP diluted earnings per share is expected to be in the range of $0.27 to $0.31. GAAP diluted earnings per share for the fourth quarter is expected to be in the range of $0.17 to $0.21, reflecting the impact of amortization, purchase price accounting and anticipated restructuring charges.
Conference Call
Brooks management will webcast its third quarter earnings conference call today at 4:30 p.m. Eastern Time. During the call, Company management will respond to questions concerning, but not limited to, the Company's financial performance, business conditions and industry outlook. Management's responses could contain information that has not been previously disclosed.
The call will be broadcast live over the Internet and, together with presentation materials referenced on the call, will be hosted at the Investor Relations section of Brooks' website at www.brooks.com, and will be archived online on this website for convenient on-demand replay. In addition, you may call 888-225-2734 (US & Canada only) or 303-223-2691 to listen to the live webcast.
About Brooks Automation, Inc.
Brooks is a leading worldwide provider of automation and cryogenic solutions for multiple markets, including semiconductor manufacturing and life sciences. Brooks' technologies, engineering competencies and global service capabilities provide customers speed to market and ensure high uptime and rapid response, which equate to superior value in their mission-critical controlled environments. Since 1978, Brooks has been a leading partner to the global semiconductor manufacturing market as a provider of precision automation and cryogenic vacuum solutions. Since 2011, Brooks has applied its automation and cryogenics expertise to meet the sample storage needs of customers in the life sciences industry. Brooks' life sciences offerings include a broad range of products and services for on-site infrastructure for sample management in temperatures of ‑20°C to -150°C, as well as comprehensive outsource service solutions across the complete life cycle of biological samples including collection, transportation, processing, storage, protection, retrieval and disposal. Brooks is headquartered in Chelmsford, MA, with operations in North America, Europe and Asia. For more information, visit 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, but are not limited to statements about our revenue and earnings expectations, our ability to increase our profitability, our ability to improve or retain our market position, and our ability to deliver financial success in the future. Factors that could cause results to differ from our expectations include the following: the volatility of the industries the Company serves, particularly the semiconductor industry; our possible inability to meet 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; uncertainties in global political and economic conditions, and other factors and other risks, including those 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.
3
CONTACTS:
Lynne Yassemedis
Brooks Automation
978.262.2400
lynne.yassemedis@brooks.com
John Mills
Partner
ICR, LLC
646.277.1254
john.mills@icrinc.com
4
BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
|
June 30, |
|
June 30, |
||||||||
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
||||
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Products |
$ |
141,957 |
|
$ |
111,596 |
|
$ |
396,684 |
|
$ |
302,238 |
|
Services |
|
39,760 |
|
|
35,938 |
|
|
114,321 |
|
|
100,532 |
|
Total revenue |
|
181,717 |
|
|
147,534 |
|
|
511,005 |
|
|
402,770 |
|
Cost of revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Products |
|
85,658 |
|
|
69,557 |
|
|
243,360 |
|
|
192,816 |
|
Services |
|
24,487 |
|
|
23,814 |
|
|
74,606 |
|
|
68,437 |
|
Total cost of revenue |
|
110,145 |
|
|
93,371 |
|
|
317,966 |
|
|
261,253 |
|
Gross profit |
|
71,572 |
|
|
54,163 |
|
|
193,039 |
|
|
141,517 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
11,958 |
|
|
12,819 |
|
|
34,148 |
|
|
39,208 |
|
Selling, general and administrative |
|
40,016 |
|
|
31,854 |
|
|
109,496 |
|
|
98,667 |
|
Restructuring charges |
|
828 |
|
|
996 |
|
|
2,663 |
|
|
9,807 |
|
Total operating expenses |
|
52,802 |
|
|
45,669 |
|
|
146,307 |
|
|
147,682 |
|
Operating income (loss) |
|
18,770 |
|
|
8,494 |
|
|
46,732 |
|
|
(6,165) |
|
Interest income |
|
137 |
|
|
55 |
|
|
432 |
|
|
310 |
|
Interest expense |
|
(93) |
|
|
(37) |
|
|
(286) |
|
|
(56) |
|
Gain on settlement of equity method investment |
|
— |
|
|
— |
|
|
1,847 |
|
|
— |
|
Other loss, net |
|
(314) |
|
|
(107) |
|
|
(848) |
|
|
(289) |
|
Income (loss) before income taxes and equity in earnings of equity method investments |
|
18,500 |
|
|
8,405 |
|
|
47,877 |
|
|
(6,200) |
|
Income tax provision |
|
3,680 |
|
|
220 |
|
|
9,900 |
|
|
75,070 |
|
Income (loss) before equity in earnings of equity method investments |
|
14,820 |
|
|
8,185 |
|
|
37,977 |
|
|
(81,270) |
|
Equity in earnings of equity method investments |
|
2,530 |
|
|
379 |
|
|
7,249 |
|
|
1,248 |
|
Net income (loss) |
$ |
17,350 |
|
$ |
8,564 |
|
$ |
45,226 |
|
$ |
(80,022) |
|
Basic net income (loss) per share |
$ |
0.25 |
|
$ |
0.12 |
|
$ |
0.65 |
|
$ |
(1.17) |
|
Diluted net income (loss) per share |
|
0.25 |
|
|
0.12 |
|
|
0.64 |
|
|
(1.17) |
|
Dividend declared per share |
|
0.10 |
|
|
0.10 |
|
|
0.30 |
|
|
0.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding used in computing net income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
69,711 |
|
|
68,628 |
|
|
69,496 |
|
|
68,437 |
|
Diluted |
|
70,405 |
|
|
69,166 |
|
|
70,198 |
|
|
68,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
5
BROOKS AUTOMATION, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)
|
|
June 30, |
|
September 30, |
||
|
|
2017 |
|
2016 |
||
|
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
117,081 |
|
$ |
85,086 |
|
Marketable securities |
|
12 |
|
|
39 |
|
Accounts receivable, net |
|
120,752 |
|
|
106,372 |
|
Inventories |
|
105,304 |
|
|
92,572 |
|
Prepaid expenses and other current assets |
|
22,215 |
|
|
15,265 |
|
Total current assets |
|
365,364 |
|
|
299,334 |
|
Property, plant and equipment, net |
|
52,949 |
|
|
54,885 |
|
Long-term marketable securities |
|
2,565 |
|
|
6,096 |
|
Long-term deferred tax assets |
|
1,460 |
|
|
1,982 |
|
Goodwill |
|
210,609 |
|
|
202,138 |
|
Intangible assets, net |
|
75,458 |
|
|
81,843 |
|
Equity method investments |
|
32,628 |
|
|
27,273 |
|
Other assets |
|
5,738 |
|
|
12,354 |
|
Total assets |
$ |
746,771 |
|
$ |
685,905 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable |
$ |
49,991 |
|
$ |
41,128 |
|
Deferred revenue |
|
33,062 |
|
|
14,966 |
|
Accrued warranty and retrofit costs |
|
7,646 |
|
|
6,324 |
|
Accrued compensation and benefits |
|
21,718 |
|
|
21,254 |
|
Accrued restructuring costs |
|
1,690 |
|
|
5,939 |
|
Accrued income taxes payable |
|
10,466 |
|
|
7,554 |
|
Accrued expenses and other current liabilities |
|
20,686 |
|
|
22,628 |
|
Total current liabilities |
|
145,259 |
|
|
119,793 |
|
Long-term tax reserves |
|
1,782 |
|
|
2,681 |
|
Long-term deferred tax liabilities |
|
2,950 |
|
|
2,913 |
|
Long-term pension liabilities |
|
2,469 |
|
|
2,557 |
|
Other long-term liabilities |
|
4,539 |
|
|
4,271 |
|
Total liabilities |
|
156,999 |
|
|
132,215 |
|
Commitments and contingencies |
|
|
|
|
|
|
Stockholders' Equity |
|
|
|
|
|
|
Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding |
|
— |
|
|
— |
|
Common stock, $0.01 par value- 125,000,000 shares authorized, 83,216,169 shares issued and 69,754,300 shares outstanding at June 30, 2017, 82,220,270 shares issued and 68,758,401 shares outstanding at September 30, 2016 |
|
832 |
|
|
821 |
|
Additional paid-in capital |
|
1,867,645 |
|
|
1,855,703 |
|
Accumulated other comprehensive income |
|
15,000 |
|
|
15,166 |
|
Treasury stock at cost - 13,461,869 shares |
|
(200,956) |
|
|
(200,956) |
|
Accumulated deficit |
|
(1,092,749) |
|
|
(1,117,044) |
|
Total stockholders' equity |
|
589,772 |
|
|
553,690 |
|
Total liabilities and stockholders' equity |
$ |
746,771 |
|
$ |
685,905 |
6
BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
|
|
Nine Months Ended |
||||
|
|
June 30, |
||||
|
|
2017 |
|
2016 |
||
|
Cash flows from operating activities |
|
|
|
|
|
|
Net income (loss) |
$ |
45,226 |
|
$ |
(80,022) |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
20,649 |
|
|
21,320 |
|
Gain on settlement of equity method investment |
|
(1,847) |
|
|
— |
|
Stock-based compensation |
|
11,081 |
|
|
8,206 |
|
Amortization of premium on marketable securities and deferred financing costs |
|
24 |
|
|
368 |
|
Undistributed earnings of equity method investments |
|
(7,249) |
|
|
(1,248) |
|
Deferred income tax provision |
|
498 |
|
|
71,875 |
|
Gain on disposal of long-lived assets |
|
(106) |
|
|
— |
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|
|
|
Accounts receivable |
|
(14,644) |
|
|
2,862 |
|
Inventories |
|
(12,851) |
|
|
2,110 |
|
Prepaid expenses and other current assets |
|
(6,076) |
|
|
(3,909) |
|
Accounts payable |
|
9,470 |
|
|
(4,689) |
|
Deferred revenue |
|
17,875 |
|
|
7,171 |
|
Accrued warranty and retrofit costs |
|
1,299 |
|
|
(87) |
|
Accrued compensation and tax withholdings |
|
279 |
|
|
(6,558) |
|
Accrued restructuring costs |
|
(4,201) |
|
|
3,720 |
|
Accrued expenses and other current liabilities |
|
1,954 |
|
|
(5,010) |
|
Net cash provided by operating activities |
|
61,381 |
|
|
16,109 |
|
Cash flows from investing activities |
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
(6,827) |
|
|
(9,414) |
|
Purchases of technology intangibles |
|
(240) |
|
|
— |
|
Purchases of marketable securities |
|
— |
|
|
(12,901) |
|
Sales and maturities of marketable securities |
|
3,590 |
|
|
139,388 |
|
Acquisitions, net of cash acquired |
|
(5,346) |
|
|
(125,498) |
|
Disbursement for a loan receivable |
|
— |
|
|
(1,491) |
|
Purchases of other investments |
|
(170) |
|
|
(500) |
|
Net cash used in investing activities |
|
(8,993) |
|
|
(10,416) |
|
Cash flows from financing activities |
|
|
|
|
|
|
Proceeds from issuance of common stock |
|
960 |
|
|
948 |
|
Payment of deferred financing costs |
|
(27) |
|
|
(508) |
|
Common stock dividends paid |
|
(20,932) |
|
|
(20,613) |
|
Net cash used in financing activities |
|
(19,999) |
|
|
(20,173) |
|
Effects of exchange rate changes on cash and cash equivalents |
|
(394) |
|
|
(126) |
|
Net increase (decrease) in cash and cash equivalents |
|
31,995 |
|
|
(14,606) |
|
Cash and cash equivalents, beginning of period |
|
85,086 |
|
|
80,722 |
|
Cash and cash equivalents, end of period |
$ |
117,081 |
|
$ |
66,116 |
|
|
|
|
|
|
|
|
Supplemental disclosure of non-cash investing activities: |
|
|
|
|
|
|
Purchases of property, plant and equipment included in accounts payable |
$ |
1,009 |
|
$ |
1,245 |
|
Fair value of non-cash consideration for the acquisition of Cool Lab, LLC |
|
10,348 |
|
|
— |
7
Notes on Non-GAAP Financial Measures:
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 adjusted the GAAP results for the impact of amortization of intangible assets, restructuring charges, purchase price accounting adjustments and charges related to M&A to provide investors better perspective on the results of operations which the Company believes is more comparable to the similar analysis provided by its peers. Management also excludes special charges and gains, such as impairment losses, gains and losses from the sale of assets, as well as other gains and charges that are not representative of the normal operations of the business. Brooks currently includes a valuation allowance reserve against U.S. deferred tax assets in its GAAP results. In assessing the appropriate tax rate for non-GAAP results, the Company evaluated the adjustments discussed above and concluded it was appropriate to maintain the valuation allowance reserve in establishing the non-GAAP tax rate. Management strongly encourages investors to review our financial statements and publicly-filed reports in their entirety and not rely on any single measure.
|
|
Quarter Ended |
||||||||||||||||
|
|
June 30, 2017 |
|
March 31, 2017 |
|
June 30, 2016 |
||||||||||||
|
|
|
|
per diluted |
|
|
|
per diluted |
|
|
|
per diluted |
||||||
|
Dollars in thousands, except per share data |
$ |
|
share |
|
$ |
|
share |
|
$ |
|
share |
||||||
|
GAAP net income |
$ |
17,350 |
|
$ |
0.25 |
|
$ |
14,005 |
|
$ |
0.20 |
|
$ |
8,564 |
|
$ |
0.12 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase accounting impact on inventory and contracts acquired |
|
71 |
|
|
0.00 |
|
|
382 |
|
|
0.01 |
|
|
125 |
|
|
— |
|
Amortization of intangible assets |
|
4,330 |
|
|
0.06 |
|
|
4,355 |
|
|
0.06 |
|
|
3,837 |
|
|
0.06 |
|
Restructuring charges |
|
828 |
|
|
0.01 |
|
|
860 |
|
|
0.01 |
|
|
996 |
|
|
0.01 |
|
Gain on sale of a building |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(55) |
|
|
— |
|
Merger costs |
|
3,654 |
|
|
0.05 |
|
|
936 |
|
|
0.01 |
|
|
84 |
|
|
— |
|
Tax effect of adjustments |
|
(880) |
|
|
(0.01) |
|
|
(699) |
|
|
(0.01) |
|
|
(2,423) |
|
|
(0.04) |
|
Non-GAAP adjusted net income |
|
25,353 |
|
|
0.36 |
|
|
19,839 |
|
|
0.28 |
|
|
11,128 |
|
|
0.16 |
|
Stock based compensation, pre-tax |
|
4,197 |
|
|
— |
|
|
4,386 |
|
|
— |
|
|
1,637 |
|
|
— |
|
Tax rate |
|
15 |
% |
|
— |
|
|
17 |
% |
|
— |
|
|
20 |
% |
|
— |
|
Stock-based compensation, net of tax |
|
3,559 |
|
|
0.05 |
|
|
3,641 |
|
|
0.05 |
|
|
1,318 |
|
|
0.02 |
|
Non-GAAP adjusted net income - excluding stock-based compensation |
$ |
28,912 |
|
$ |
0.41 |
|
$ |
23,480 |
|
$ |
0.33 |
|
$ |
12,446 |
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing non-GAAP diluted net income per share |
|
— |
|
|
70,405 |
|
|
— |
|
|
70,149 |
|
|
— |
|
|
69,166 |
|
|
Nine Months Ended |
||||||||||||||||||||
|
|
June 30, 2017 |
|
June 30, 2016 |
||||||||||||||||||
|
|
|
|
Per Diluted |
|
|
|
Per Diluted |
||||||||||||||
|
Dollars in thousands, except per share data |
$ |
|
Share |
|
$ |
|
Share |
||||||||||||||
|
GAAP net income (loss) |
$ |
45,226 |
|
$ |
0.64 |
|
$ |
(80,022) |
|
$ |
(1.17) |
||||||||||
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Purchase accounting impact on inventory and contracts acquired |
|
523 |
|
|
0.01 |
|
|
499 |
|
|
0.01 |
||||||||||
|
Amortization of intangible assets |
|
12,743 |
|
|
0.18 |
|
|
11,153 |
|
|
0.16 |
||||||||||
|
Restructuring charges |
|
2,663 |
|
|
0.04 |
|
|
9,807 |
|
|
0.14 |
||||||||||
|
Gain on sale of a building |
|
— |
|
|
|
|
|
(55) |
|
|
(0.00) |
||||||||||
|
Merger costs |
|
4,839 |
|
|
0.07 |
|
|
3,295 |
|
|
0.05 |
||||||||||
|
Less: Fair value adjustment of equity investment |
|
(1,847) |
|
|
(0.03) |
|
|
— |
|
|
— |
||||||||||
|
Add: True-up of BioCision stub period adjustment |
|
203 |
|
|
— |
|
|
— |
|
|
— |
||||||||||
|
Establishment of valuation allowance against deferred tax assets |
|
— |
|
|
— |
|
|
79,340 |
|
|
1.16 |
||||||||||
|
Tax effect of adjustments |
|
(1,856) |
|
|
(0.03) |
|
|
(6,723) |
|
|
(0.10) |
||||||||||
|
Non-GAAP adjusted net income |
|
62,494 |
|
|
0.89 |
|
|
17,294 |
|
|
0.25 |
||||||||||
|
Stock-based compensation, pre-tax |
|
11,081 |
|
|
— |
|
|
8,206 |
|
|
— |
||||||||||
|
Tax rate |
|
16 |
% |
|
— |
|
|
24 |
% |
|
— |
||||||||||
|
Stock-based compensation, net of tax |
|
9,330 |
|
$ |
0.13 |
|
|
6,237 |
|
|
0.09 |
||||||||||
|
Non-GAAP adjusted net income - excluding stock-based compensation |
$ |
71,824 |
|
$ |
1.02 |
|
$ |
23,531 |
|
$ |
0.34 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Shares used in computing non-GAAP diluted net income per share |
|
— |
|
|
70,198 |
|
|
— |
|
|
68,437 |
||||||||||
8
|
|
Quarter Ended |
||||||||||||||||
|
|
June 30, 2017 |
|
March 31, 2017 |
|
June 30, 2016 |
||||||||||||
|
Dollars in thousands |
$ |
|
% |
|
$ |
|
% |
|
$ |
|
% |
||||||
|
GAAP gross profit/gross margin percentage |
$ |
71,572 |
|
39.4 |
% |
|
$ |
64,524 |
|
38.1 |
% |
|
$ |
54,163 |
|
36.7 |
% |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of completed technology |
|
1,051 |
|
0.6 |
% |
|
|
1,061 |
|
0.6 |
% |
|
|
1,083 |
|
0.7 |
% |
|
Purchase accounting impact on inventory and contracts acquired |
|
71 |
|
0.0 |
% |
|
|
382 |
|
0.2 |
% |
|
|
125 |
|
0.1 |
% |
|
Non-GAAP adjusted gross profit/gross margin percentage |
$ |
72,694 |
|
40.0 |
% |
|
$ |
65,967 |
|
39.0 |
% |
|
$ |
55,371 |
|
37.5 |
% |
|
|
Nine Months Ended |
||||||||||
|
|
June 30, 2017 |
|
June 30, 2016 |
||||||||
|
Dollars in thousands |
$ |
|
% |
|
|
$ |
|
% |
|||
|
GAAP gross profit/gross margin percentage |
$ |
193,039 |
|
37.8 |
% |
|
$ |
141,517 |
|
35.1 |
% |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of completed technology |
|
3,105 |
|
0.6 |
% |
|
|
3,097 |
|
0.8 |
% |
|
Purchase accounting impact on inventory and contracts acquired |
|
523 |
|
0.1 |
% |
|
|
499 |
|
0.1 |
% |
|
Non-GAAP adjusted gross profit/gross margin percentage |
$ |
196,667 |
|
38.5 |
% |
|
$ |
145,113 |
|
36.0 |
% |
|
|
Quarter Ended |
|
Nine Months Ended |
|||||||||||
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|||||
|
Dollars in thousands |
2017 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|||||
|
GAAP net income (loss) |
$ |
17,350 |
|
$ |
14,005 |
|
$ |
8,564 |
|
$ |
45,226 |
|
$ |
(80,022) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Interest income |
|
(137) |
|
|
(227) |
|
|
(55) |
|
|
(432) |
|
|
(310) |
|
Add: Interest expense |
|
93 |
|
|
97 |
|
|
37 |
|
|
286 |
|
|
56 |
|
Add: Income tax provision |
|
3,680 |
|
|
3,420 |
|
|
220 |
|
|
9,900 |
|
|
75,070 |
|
Add: Depreciation |
|
2,589 |
|
|
2,623 |
|
|
3,633 |
|
|
7,907 |
|
|
10,167 |
|
Add: Amortization of completed technology |
|
1,051 |
|
|
1,061 |
|
|
1,083 |
|
|
3,105 |
|
|
3,097 |
|
Add: Amortization of customer relationships and acquired intangible assets |
|
3,279 |
|
|
3,294 |
|
|
2,754 |
|
|
9,638 |
|
|
8,056 |
|
Earnings before interest, taxes, depreciation and amortization |
$ |
27,905 |
|
$ |
24,273 |
|
$ |
16,236 |
|
$ |
75,630 |
|
$ |
16,114 |
|
|
Quarter Ended |
|
Nine Months Ended |
|||||||||||
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|||||
|
Dollars in thousands |
2017 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|||||
|
Earnings before interest, taxes, depreciation and amortization |
$ |
27,905 |
|
$ |
24,273 |
|
$ |
16,236 |
|
$ |
75,630 |
|
$ |
16,112 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Fair value adjustment of equity method investment |
|
— |
|
|
— |
|
|
— |
|
|
(1,847) |
|
|
— |
|
Add: Stock-based compensation |
|
4,197 |
|
|
4,386 |
|
|
1,637 |
|
|
11,081 |
|
|
8,206 |
|
Add: Restructuring charges |
|
828 |
|
|
860 |
|
|
996 |
|
|
2,663 |
|
|
9,807 |
|
Add: BioCision stub period adjustment |
|
— |
|
|
— |
|
|
— |
|
|
203 |
|
|
— |
|
Add: Purchase accounting impact on inventory and contracts acquired |
|
71 |
|
|
382 |
|
|
125 |
|
|
523 |
|
|
499 |
|
Less: Gain on sale of a building |
|
— |
|
|
— |
|
|
(55) |
|
|
— |
|
|
(55) |
|
Add: Merger costs |
|
3,654 |
|
|
936 |
|
|
84 |
|
|
4,839 |
|
|
3,295 |
|
Adjusted earnings before interest, taxes, depreciation and amortization |
$ |
36,655 |
|
$ |
30,837 |
|
$ |
19,023 |
|
$ |
93,092 |
|
$ |
37,864 |
|
|
Quarter Ended |
|
Nine Months Ended |
|||||||||||
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|||||
|
Dollars in thousands |
2017 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|||||
|
GAAP selling, general and administrative expenses |
$ |
40,016 |
|
$ |
37,518 |
|
$ |
31,854 |
|
$ |
109,496 |
|
$ |
98,667 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Amortization of customer relationships and acquired intangible assets |
|
(3,279) |
|
|
(3,294) |
|
|
(2,754) |
|
|
(9,638) |
|
|
(8,056) |
|
Less: Merger costs |
|
(3,654) |
|
|
(936) |
|
|
(84) |
|
|
(4,839) |
|
|
(3,295) |
|
Non-GAAP adjusted selling, general and administrative expenses |
$ |
33,083 |
|
$ |
33,288 |
|
$ |
29,016 |
|
$ |
95,019 |
|
$ |
87,316 |
|
Research and development expenses |
$ |
11,958 |
|
$ |
11,345 |
|
$ |
12,819 |
|
$ |
34,148 |
|
$ |
39,208 |
|
Non-GAAP adjusted operating expenses |
$ |
45,041 |
|
$ |
44,633 |
|
$ |
41,835 |
|
$ |
129,167 |
|
$ |
126,524 |
9
|
|
Quarter Ended |
|
Nine Months Ended |
|||||||||||
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|||||
|
Dollars in thousands |
2017 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|||||
|
GAAP equity in earnings of equity method investments |
$ |
2,530 |
|
$ |
2,777 |
|
$ |
379 |
|
$ |
7,249 |
|
$ |
1,248 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: BioCision stub period adjustment |
|
— |
|
|
— |
|
|
— |
|
|
203 |
|
|
— |
|
Non-GAAP adjusted equity in earnings of equity method investments |
$ |
2,530 |
|
$ |
2,777 |
|
$ |
379 |
|
$ |
7,452 |
|
$ |
1,248 |
|
|
Brooks Semiconductor Solutions Group |
|
Brooks Life Science Systems |
||||||||||||||
|
|
Quarter Ended |
|
Quarter Ended |
||||||||||||||
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
March 31, |
|
June 30, |
||||||
|
Dollars in thousands |
2017 |
|
2017 |
|
2016 |
|
2017 |
|
2017 |
|
2016 |
||||||
|
GAAP gross profit |
$ |
58,083 |
|
$ |
51,325 |
|
$ |
42,904 |
|
$ |
13,489 |
|
$ |
13,199 |
|
$ |
11,259 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of completed technology |
|
626 |
|
|
626 |
|
|
711 |
|
|
425 |
|
|
435 |
|
|
372 |
|
Purchase accounting impact on inventory and contracts acquired |
|
— |
|
|
125 |
|
|
125 |
|
|
71 |
|
|
257 |
|
|
— |
|
Non-GAAP adjusted gross profit |
$ |
58,709 |
|
$ |
52,076 |
|
$ |
43,740 |
|
$ |
13,985 |
|
$ |
13,891 |
|
$ |
11,631 |
|
|
Brooks Semiconductor Solutions Group |
|
Brooks Life Science Systems |
||||||||
|
|
Nine Months Ended |
|
Nine Months Ended |
||||||||
|
|
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
||||
|
Dollars in thousands |
2017 |
|
2016 |
|
2017 |
|
2016 |
||||
|
GAAP gross profit |
$ |
154,877 |
|
$ |
114,506 |
|
$ |
38,162 |
|
$ |
27,011 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of completed technology |
|
1,879 |
|
|
2,005 |
|
|
1,226 |
|
|
1,093 |
|
Purchase accounting impact on inventory and contracts acquired |
|
125 |
|
|
500 |
|
|
398 |
|
|
— |
|
Non-GAAP adjusted gross profit |
$ |
156,881 |
|
$ |
117,011 |
|
$ |
39,786 |
|
$ |
28,104 |
|
|
Brooks Semiconductor Solutions Group |
|
Brooks Life Science Systems |
||||||||||||||
|
|
Quarter Ended |
|
Quarter Ended |
||||||||||||||
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
March 31, |
|
June 30, |
||||||
|
Dollars in thousands |
2017 |
|
2017 |
|
2016 |
|
2017 |
|
2017 |
|
2016 |
||||||
|
GAAP gross margin |
40.1 |
% |
38.1 |
% |
36.2 |
% |
36.7 |
% |
38.1 |
% |
38.7 |
% |
|||||
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of completed technology |
0.4 |
% |
|
0.5 |
% |
|
0.6 |
% |
|
1.2 |
% |
|
1.3 |
% |
|
1.3 |
% |
|
Purchase accounting impact on inventory and contracts acquired |
— |
% |
|
0.1 |
% |
|
0.1 |
% |
|
0.2 |
% |
|
0.7 |
% |
|
— |
% |
|
Non-GAAP adjusted gross margin |
40.5 |
% |
|
38.7 |
% |
|
36.9 |
% |
|
38.0 |
% |
|
40.1 |
% |
|
40.0 |
% |
|
|
Brooks Semiconductor Solutions Group |
|
Brooks Life Science Systems |
|
|||||||
|
|
Nine Months Ended |
|
Nine Months Ended |
|
|||||||
|
Dollars in thousands |
June 30, 2017 |
|
June 30, 2016 |
|
June 30, 2017 |
|
June 30, 2016 |
|
|||
|
GAAP gross margin |
38.1 |
% |
|
35.1 |
% |
|
36.4 |
% |
|
35.3 |
% |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of completed technology |
0.5 |
% |
|
0.6 |
% |
|
1.2 |
% |
|
1.4 |
% |
|
Purchase accounting impact on inventory and contracts acquired |
— |
% |
|
0.2 |
% |
|
0.4 |
% |
|
— |
% |
|
Non-GAAP adjusted gross margin |
38.6 |
% |
|
35.9 |
% |
|
38.0 |
% |
|
36.8 |
% |
10
|
|
Brooks Semiconductor Solutions Group |
|
Brooks Life Science Systems |
|
Total Segments |
|||||||||||||||||||||
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|||||||||||||||||||||
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
March 31, |
|
June 30, |
|||||||||
|
Dollars in thousands |
2017 |
|
2017 |
|
2016 |
|
2017 |
|
2017 |
|
2016 |
|
2017 |
|
2017 |
|
2016 |
|||||||||
|
GAAP operating profit (loss) |
$ |
26,188 |
|
$ |
20,003 |
|
$ |
13,119 |
|
$ |
1,134 |
|
$ |
1,290 |
|
$ |
(736) |
|
$ |
27,322 |
|
$ |
21,293 |
|
$ |
12,383 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of completed technology |
|
626 |
|
|
626 |
|
|
711 |
|
|
425 |
|
|
435 |
|
|
372 |
|
|
1,051 |
|
|
1,061 |
|
|
1,083 |
|
Purchase accounting impact on inventory and contracts acquired |
|
— |
|
|
125 |
|
|
125 |
|
|
71 |
|
|
257 |
|
|
— |
|
|
71 |
|
|
382 |
|
|
125 |
|
Non-GAAP adjusted operating profit (loss) |
$ |
26,814 |
|
$ |
20,754 |
|
$ |
13,955 |
|
$ |
1,630 |
|
$ |
1,982 |
|
$ |
(364) |
|
$ |
28,444 |
|
$ |
22,736 |
|
$ |
13,591 |
|
|
Total Segments |
|
Corporate |
|
Total |
|||||||||||||||||||||
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|||||||||||||||||||||
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
March 31, |
|
June 30, |
|||||||||
|
Dollars in thousands |
2017 |
|
2017 |
|
2016 |
|
2017 |
|
2017 |
|
2016 |
|
2017 |
|
2017 |
|
2016 |
|||||||||
|
GAAP operating profit (loss) |
$ |
27,322 |
|
$ |
21,293 |
|
$ |
12,383 |
|
$ |
(8,552) |
|
$ |
(6,492) |
|
$ |
(3,889) |
|
$ |
18,770 |
|
$ |
14,801 |
|
$ |
8,494 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of completed technology |
|
1,051 |
|
|
1,061 |
|
|
1,083 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,051 |
|
|
1,061 |
|
|
1,083 |
|
Amortization of customer relationships and acquired intangible assets |
|
— |
|
|
— |
|
|
— |
|
|
3,279 |
|
|
3,294 |
|
|
2,754 |
|
|
3,279 |
|
|
3,294 |
|
|
2,754 |
|
Restructuring charges |
|
— |
|
|
— |
|
|
— |
|
|
828 |
|
|
860 |
|
|
996 |
|
|
828 |
|
|
860 |
|
|
996 |
|
Purchase accounting impact on inventory and contracts acquired |
|
71 |
|
|
382 |
|
|
125 |
|
|
— |
|
|
— |
|
|
— |
|
|
71 |
|
|
382 |
|
|
125 |
|
Merger costs |
|
— |
|
|
— |
|
|
— |
|
|
3,654 |
|
|
936 |
|
|
84 |
|
|
3,654 |
|
|
936 |
|
|
84 |
|
Non-GAAP adjusted operating profit (loss) |
$ |
28,444 |
|
$ |
22,736 |
|
$ |
13,591 |
|
$ |
(791) |
|
$ |
(1,402) |
|
$ |
(55) |
|
$ |
27,653 |
|
$ |
21,334 |
|
$ |
13,536 |
|
|
Brooks Semiconductor Solutions Group |
|
Brooks Life Science Systems |
|
Total Segments |
||||||||||||
|
|
Nine Months Ended |
|
Nine Months Ended |
|
Nine Months Ended |
||||||||||||
|
Dollars in thousands |
June 30, 2017 |
|
June 30, 2016 |
|
June 30, 2017 |
|
June 30, 2016 |
|
June 30, 2017 |
|
June 30, 2016 |
||||||
|
GAAP operating profit (loss) |
$ |
63,562 |
|
$ |
22,717 |
|
$ |
2,535 |
|
$ |
(7,555) |
|
$ |
66,097 |
|
$ |
15,162 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of completed technology |
|
1,879 |
|
|
2,005 |
|
|
1,226 |
|
|
1,093 |
|
|
3,105 |
|
|
3,097 |
|
Purchase accounting impact on inventory and contracts acquired |
|
125 |
|
|
500 |
|
|
398 |
|
|
— |
|
|
523 |
|
|
500 |
|
Non-GAAP adjusted operating profit (loss) |
$ |
65,566 |
|
$ |
25,222 |
|
$ |
4,159 |
|
$ |
(6,462) |
|
$ |
69,725 |
|
$ |
18,759 |
|
|
Total Segments |
|
Corporate |
|
Total |
||||||||||||
|
|
Nine Months Ended |
|
Nine Months Ended |
|
Nine Months Ended |
||||||||||||
|
Dollars in thousands |
June 30, 2017 |
|
June 30, 2016 |
|
June 30, 2017 |
|
June 30, 2016 |
|
June 30, 2017 |
|
June 30, 2016 |
||||||
|
GAAP operating profit (loss) |
$ |
66,097 |
|
$ |
15,162 |
|
$ |
(19,365) |
|
$ |
(21,327) |
|
$ |
46,732 |
|
$ |
(6,165) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of completed technology |
|
3,105 |
|
|
3,097 |
|
|
— |
|
|
— |
|
|
3,105 |
|
|
3,097 |
|
Amortization of customer relationships and acquired intangible assets |
|
— |
|
|
— |
|
|
9,638 |
|
|
8,056 |
|
|
9,638 |
|
|
8,056 |
|
Restructuring charges |
|
— |
|
|
— |
|
|
2,663 |
|
|
9,807 |
|
|
2,663 |
|
|
9,807 |
|
Purchase accounting impact on inventory and contracts acquired |
|
523 |
|
|
500 |
|
|
— |
|
|
— |
|
|
523 |
|
|
500 |
|
Merger costs |
|
— |
|
|
— |
|
|
4,839 |
|
|
3,295 |
|
|
4,839 |
|
|
3,295 |
|
Non-GAAP adjusted operating profit (loss) |
$ |
69,725 |
|
$ |
18,759 |
|
$ |
(2,225) |
|
$ |
(169) |
|
$ |
67,500 |
|
$ |
18,590 |
11