CHELMSFORD, Mass., May 6, 2010 (GLOBE NEWSWIRE) -- Brooks Automation, Inc. (Nasdaq:BRKS) announced financial results for the Company's second quarter of fiscal year 2010 ended on March 31, 2010.
Revenues for the second quarter of 2010 were $148.4 million, compared to revenues of $37.3 million in the second quarter of 2009, an increase of 297.7%. Sequentially, revenues grew 39.7% from first quarter revenues of $106.2 million.
Net income attributable to Brooks Automation, Inc. ("Brooks") for the second quarter of fiscal 2010 amounted to $21.0 million, or $0.33 per diluted share. Excluding non-recurring income and special charges the non-GAAP adjusted net income attributable to Brooks for the second quarter of fiscal 2010 was $10.1 million, or $0.16 per diluted share. Non-recurring income during the quarter was a $7.5 million after tax gain from the sale of intellectual property rights and a $3.9 million tax credit from the application of favorable loss carry back provisions introduced by the Worker, Home Ownership and Business Assistance Act. Special charges taken during the quarter were $0.5 million of residual restructuring charges related to past restructuring plans.
The fiscal 2010 second quarter results compare with a net loss attributable to Brooks of $152.5 million, or $2.43 per diluted share in the second quarter of the prior year. Sequentially, the net loss attributable to Brooks was $(2.8) million or $(0.04) per diluted share in the first quarter of 2010. Excluding special charges, the adjusted net loss attributable to Brooks for the second quarter of the prior year was $(36.2) million, or $(0.58) per diluted share. Sequentially, the adjusted net loss for the first quarter, excluding special charges, was $(1.1) million or $(0.02) per diluted share. Special charges are identified in the table included with this release.
Adjusted Earnings (Loss) before Interest, Tax, Depreciation and Amortization for the second quarter of fiscal 2010 was $17.3 million, which compared to ($26.7) million in the prior year period and $5.6 million in the first quarter of fiscal 2010. 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 first half of fiscal 2010 was $9.3 million, which together with proceeds from the sale of intellectual property rights of $7.8 million resulted in an increase of total cash and marketable securities to $125.8 million.
Revenues for the six months ended March 31, 2010 were $254.6 million, a 129.9% increase from $110.7 million for the same prior fiscal year period. Net income attributable to Brooks for the current fiscal year to date was $18.2 million, as compared to the prior year period's net loss of $187.6 million. Excluding non-recurring income and special charges, the adjusted income (loss) from operations was $9.0 million or $0.14 per diluted share in the first half of fiscal 2010 as compared to $(66.0) million or $(1.05) 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, "Strong demand from our major semiconductor OEM customers drove revenue up 40% sequentially over the December quarter with good profitability. Looking forward, we see solid margin expansion on modest sequential revenue gains in the June quarter and we expect revenue momentum to again accelerate later in the year."
Mr. Lepofsky added, "In addition to managing the production ramp associated with the 238% increase in revenues we saw over the past nine months, the Company maintained its focus on key strategic initiatives. During the March quarter we continued to have numerous favorable engagements that we believe will drive future business in adjacent markets as well as our core semiconductor business. We have expanded our work with leading LED equipment OEM's and the launch of our Simplicity Solutions instrumentation product line has generated significant market interest. Finally, our capability to successfully execute an accelerating growth plan has been enhanced with key additions to our team including the recruitment of Steve Schwartz as the new President of Brooks."
Brooks management will webcast its second 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.
"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 profit and loss and cash flow 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.
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BROOKS AUTOMATION, INC. CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands, except share and per share data) |
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March 31, 2010 |
September 30, 2009 |
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| Assets | ||||
| Current assets | ||||
| Cash and cash equivalents | $48,621 | $59,985 | ||
| Marketable securities | 35,804 | 28,046 | ||
| Accounts receivable, net | 67,584 | 38,428 | ||
| Inventories, net | 103,528 | 84,738 | ||
| Prepaid expenses and other current assets | 13,939 | 9,992 | ||
| Total current assets | 269,476 | 221,189 | ||
| Property, plant and equipment, net | 68,420 | 74,793 | ||
| Long-term marketable securities | 41,335 | 22,490 | ||
| Goodwill | 48,138 | 48,138 | ||
| Intangible assets, net | 13,063 | 14,081 | ||
| Equity investment in joint ventures | 28,962 | 29,470 | ||
| Other assets | 2,613 | 3,161 | ||
| Total assets | $472,007 | $413,322 | ||
| Liabilities and equity | ||||
| Current liabilities | ||||
| Accounts payable | $66,721 | $26,360 | ||
| Deferred revenue | 3,917 | 2,916 | ||
| Accrued warranty and retrofit costs | 7,122 | 5,698 | ||
| Accrued compensation and benefits | 11,232 | 14,317 | ||
| Accrued restructuring costs | 4,434 | 5,642 | ||
| Accrued income taxes payable | 2,197 | 2,686 | ||
| Accrued expenses and other current liabilities | 10,753 | 12,870 | ||
| Total current liabilities | 106,376 | 70,489 | ||
| Accrued long-term restructuring | 1,344 | 2,019 | ||
| Income taxes payable | 11,097 | 10,755 | ||
| Long-term pension liability | 8,249 | 7,913 | ||
| Other long-term liabilities | 2,630 | 2,523 | ||
| Total liabilities | 129,696 | 93,699 | ||
| Contingencies | ||||
| Equity | ||||
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Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued and outstanding |
— | — | ||
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Common stock, $0.01 par value, 125,000,000 shares authorized, 78,453,069 shares issued and 64,991,200 shares outstanding at March 31, 2010, 77,883,173 shares issued and 64,421,304 shares outstanding at September 30, 2009 |
785 | 779 | ||
| Additional paid-in capital | 1,799,781 | 1,795,619 | ||
| Accumulated other comprehensive income | 16,766 | 16,318 | ||
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Treasury stock at cost, 13,461,869 shares at March 31, 2010 and September 30, 2009 |
(200,956) | (200,956) | ||
| Accumulated deficit | (1,274,397) | (1,292,631) | ||
| Total Brooks Automation, Inc. stockholders' equity | 341,979 | 319,129 | ||
| Noncontrolling interest in subsidiaries | 332 | 494 | ||
| Total equity | 342,311 | 319,623 | ||
| Total liabilities and equity | $472,007 | $413,322 | ||
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BROOKS AUTOMATION, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (In thousands, except per share data) |
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Three months ended March 31, |
Six months ended March 31, |
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| 2010 | 2009 | 2010 | 2009 | |||||
| Revenues | ||||||||
| Product | $133,389 | $25,883 | $224,910 | $84,969 | ||||
| Services | 14,964 | 11,416 | 29,640 | 25,776 | ||||
| Total revenues | 148,353 | 37,299 | 254,550 | 110,745 | ||||
| Cost of revenues | ||||||||
| Product | 97,271 | 31,909 | 164,516 | 85,778 | ||||
| Services | 12,132 | 12,670 | 24,838 | 25,859 | ||||
| Impairment of long-lived assets | — | 20,516 | — | 20,516 | ||||
| Total cost of revenues | 109,403 | 65,095 | 189,354 | 132,153 | ||||
| Gross profit (loss) | 38,950 | (27,796) | 65,196 | (21,408) | ||||
| Operating expenses | ||||||||
| Research and development | 7,677 | 7,666 | 15,218 | 16,943 | ||||
| Selling, general and administrative | 20,842 | 25,207 | 39,821 | 52,841 | ||||
| Impairment of goodwill | — | 71,800 | — | 71,800 | ||||
| Impairment of long-lived assets | — | 14,588 | — | 14,588 | ||||
| Restructuring charges | 484 | 5,861 | 2,006 | 9,966 | ||||
| Total operating expenses | 29,003 | 125,122 | 57,045 | 166,138 | ||||
| Operating income (loss) | 9,947 | (152,918) | 8,151 | (187,546) | ||||
| Interest income | 265 | 646 | 593 | 1,543 | ||||
| Interest expense | 11 | 72 | 27 | 198 | ||||
| Sale of intellectual property rights | 7,840 | — | 7,840 | — | ||||
| Loss on investment | — | — | 191 | 1,185 | ||||
| Other expense, net | 91 | 111 | 288 | 149 | ||||
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Income (loss) before income taxes and equity in earnings (losses) of joint ventures |
17,950 | (152,455) | 16,078 | (187,535) | ||||
| Income tax provision (benefit) | (2,819) | 189 | (2,184) | 580 | ||||
| Income (loss) before equity in earnings (losses) of joint ventures | 20,769 | (152,644) | 18,262 | (188,115) | ||||
| Equity in earnings (losses) of joint ventures | 179 | 11 | (191) | 312 | ||||
| Net income (loss) | $20,948 | $(152,633) | $18,071 | $(187,803) | ||||
| Add: Net loss attributable to noncontrolling interests | 81 | 90 | 163 | 177 | ||||
| Net income (loss) attributable to Brooks Automation, Inc. | $21,029 | $(152,543) | $18,234 | $(187,626) | ||||
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Basic net income (loss) per share attributable to Brooks Automation, Inc. common stockholders |
$0.33 | $(2.43) | $0.29 | $(2.99) | ||||
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Diluted net income (loss) per share attributable to Brooks Automation, Inc. common stockholders |
$0.33 | $(2.43) | $0.28 | $(2.99) | ||||
| Shares used in computing earnings (loss) per share | ||||||||
| Basic | 63,679 | 62,844 | 63,535 | 62,747 | ||||
| Diluted | 64,196 | 62,844 | 64,042 | 62,747 | ||||
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BROOKS AUTOMATION, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (In thousands) |
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Six months ended March 31, |
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| 2010 | 2009 | |
| Cash flows from operating activities | ||
| Net income (loss) | $18,071 | $(187,803) |
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Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
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| Depreciation and amortization | 9,460 | 16,324 |
| Impairment of goodwill | — | 71,800 |
| Impairment of long-lived assets | — | 35,104 |
| Sale of intellectual property rights | (7,840) | — |
| Stock-based compensation | 3,561 | 3,394 |
| Amortization of premium on marketable securities | 368 | 19 |
| Undistributed (earnings) losses of joint ventures | 191 | (312) |
| (Gain) loss on disposal of long-lived assets | (4) | 70 |
| Loss on investment | 191 | 1,185 |
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Changes in operating assets and liabilities, net of acquisitions and disposals: |
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| Accounts receivable | (29,258) | 40,688 |
| Inventories | (19,653) | 6,522 |
| Prepaid expenses and other current assets | (4,132) | 4,254 |
| Accounts payable | 40,424 | (21,109) |
| Deferred revenue | 1,062 | (1,151) |
| Accrued warranty and retrofit costs | 1,414 | (1,502) |
| Accrued compensation and benefits | (2,972) | (3,486) |
| Accrued restructuring costs | (1,857) | 1,898 |
| Accrued expenses and other | 235 | (2,820) |
| Net cash provided by (used in) operating activities | 9,261 | (36,925) |
| Cash flows from investing activities | ||
| Purchases of property, plant and equipment | (1,163) | (9.091) |
| Purchases of marketable securities | (70,872) | (50,539) |
| Sale/maturity of marketable securities | 43,757 | 36,735 |
| Proceeds from the sale of intellectual property rights | 7,840 | — |
| Purchase of intangible assets | (892) | — |
| Other | 243 | — |
| Net cash used in investing activities | (21,087) | (22,895) |
| Cash flows from financing activities | ||
| Proceeds from issuance of common stock, net of issuance costs | 590 | 675 |
| Net cash provided by financing activities | 590 | 675 |
| Effects of exchange rate changes on cash and cash equivalents | (128) | (1,967) |
| Net decrease in cash and cash equivalents | (11,364) | (61,112) |
| Cash and cash equivalents, beginning of period | 59,985 | 110,269 |
| Cash and cash equivalents, end of period | $48,621 | $49,157 |
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 continuing operations is presented below:
| Quarter Ended | ||||||
| March 31, 2010 | December 31, 2009 | March 31, 2009 | ||||
| $ | per share | $ | per share | $ | per share | |
| Net income (loss) attributable to Brooks Automation, Inc. | $ 21,029 | $ 0.33 | $ (2,795) | $ (0.04) | $ (152,543) | $ (2.43) |
| Impairment charges - cost of revenues | -- | -- | -- | -- | 20,516 | 0.33 |
| Impairment charges - operating expense | -- | -- | -- | -- | 86,388 | 1.37 |
| Restructuring charges | 484 | 0.01 | 1,522 | 0.02 | 5,861 | 0.09 |
| Restructuring related inventory charges | -- | -- | -- | -- | 3,612 | 0.06 |
| Loss on investment | -- | -- | 191 | 0.00 | -- | -- |
| One-time income tax benefit | (3,899) | (0.06) | ||||
| Sale of intellectual property rights, net of tax | (7,519) | $ (0.12) | ||||
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Adjusted net income (loss) attributable to Brooks Automation, Inc. |
10,095 | 0.16 | (1,082) | (0.02) | (36,166) | (0.58) |
| Stock-based compensation | 2,044 | 0.03 | 1,517 | $ 0.02 | 1,870 | 0.03 |
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Adjusted net income (loss) attributable to Brooks Automation, Inc. - excluding stock-based compensation |
$ 12,139 | $ 0.19 | $ 435 | $ 0.01 | $ (34,296) | $ (0.55) |
| Six Months Ended | ||||
| March 31, 2010 | March 31, 2009 | |||
| $ | per share | $ | per share | |
| Net income (loss) attributable to Brooks Automation, Inc. | $ 18,234 | $ 0.28 | $ (187,626) | $ (2.99) |
| Impairment charges - cost of revenues | -- | -- | 20,516 | 0.33 |
| Impairment charges - operating expense | -- | -- | 86,388 | 1.38 |
| Restructuring charges | 2,006 | 0.03 | 9,966 | 0.16 |
| 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. | $ 9,013 | 0.14 | $ (65,959) | (1.05) |
| Stock-based compensation | 3,561 | 0.06 | 3,394 | 0.05 |
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Adjusted net income (loss) attributable to Brooks Automation, Inc. - excluding stock-based compensation |
$ 12,574 | $ 0.20 | $ (62,565) | $ (1.00) |
| Quarter ended | Six months ended | ||||
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Mar 31, 2010 |
Dec 31, 2009 |
Mar 31, 2009 |
Mar 31, 2010 |
Mar 31, 2009 |
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| Net income (loss) attributable to Brooks Automation, Inc. | $ 21,029 | $ (2,795) | $ (152,543) | 18,234 | (187,626) |
| Less: Interest income | (265) | (328) | (646) | (593) | (1,543) |
| Add: Interest expense | 11 | 16 | 72 | 27 | 198 |
| Add: Income tax provision (benefit) | (2,819) | 635 | 189 | (2,184) | 580 |
| Add: Depreciation | 3,701 | 3,846 | 3,620 | 7,547 | 7,776 |
| Add: Amortization of completed technology | 472 | 457 | 2,331 | 929 | 4,662 |
| Add: Amortization of acquired intangible assets | 493 | 491 | 1,993 | 984 | 3,886 |
| Add: Stock-based compensation | 2,044 | 1,517 | 1,870 | 3,561 | 3,394 |
| Add: Restructuring related inventory charges | -- | -- | 3,612 | -- | 3,612 |
| Add: Impairment charges - cost of revenues | -- | -- | 20,516 | -- | 20,516 |
| Add: Impairment charges - operating expense | -- | -- | 86,388 | -- | 86,388 |
| Add: Restructuring charges | 484 | 1,522 | 5,861 | 2,006 | 9,966 |
| Add: Loss on investment | -- | 191 | -- | 191 | 1,185 |
| Sale of intellectual property rights, pre-tax | (7,840) | -- | -- | (7,840) | -- |
| Adjusted EBITDA | $ 17,310 | $ 5,552 | $ (26,737) | $ 22,862 | $ (47,006) |