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Brooks Automation Reports Second Quarter Financial Results CHELMSFORD, Mass., May 8, 2008 (PRIME NEWSWIRE) -- Brooks
Automation, Inc. (NasdaqGS:BRKS - News) announced financial results
for the Company's second quarter and first six months of
fiscal 2008 ended on March 31, 2008. Revenues for the second quarter of 2008 were $147.6 million, compared to revenues of $194.9 million in the second quarter of 2007, a decrease of 24.3%. Sequentially, revenues were essentially flat from fiscal 2008 first quarter revenues of $147.8 million. Loss from continuing operations for the second quarter of fiscal 2008 amounted to $8.7 million, or $0.14 per diluted share. This compares with income from continuing operations of $15.8 million, or $0.21 per diluted share in the second quarter of the prior year. Sequentially, the loss from continuing operations increased $7.3 million compared to a first quarter loss of $1.4 million, or $0.02 per diluted share. The loss from continuing operations for the second quarter of fiscal 2008 before special charges was $3.2 million or $0.05 per diluted share, which came in at the mid-point of the Company's guidance. The special charges taken during the quarter included restructuring and a loss on investment that totaled $5.4 million, or $0.09 per diluted share. The loss from continuing operations reported in the first quarter of fiscal 2008 included $0.6 million, or $0.01 per diluted share, of restructuring charges. Net loss for the second quarter of 2008 totaled $8.3 million or $0.13 per diluted share. This compares to net income of $107.8 million or $1.43 per diluted share in the second quarter of 2007, which included income from discontinued operations of $92.0 million or $1.22 per diluted share. Adjusted Earnings before Interest, Depreciation and Amortization for the second quarter of fiscal 2008 was $7.2 million compared to $28.2 million in the prior year period and $7.3 million in the first quarter of fiscal 2008. Together with cash generated from managing operating assets, this resulted in cash flows from operations for the second quarter of fiscal 2008 of $11.3 million compared to $21.5 million in the prior year period and cash outflows of $6.1 million in the first quarter of fiscal 2008. Revenues for the first six months of fiscal year 2008 were $295.5 million, a 23.5% decrease from prior year revenues of $386.3 million. The net loss for the first half of fiscal 2008 was $9.7 million, or $0.15 per diluted share compared to the prior year's net income of $129.9 million or $1.73 per diluted share. The loss for fiscal 2008 included the previously mentioned charges. Net income for fiscal 2007 included the aforementioned gains on the March 30, 2007 sale of the Brooks Software division and income from that discontinued operation. The results for the quarter ending March 31, 2008 include the recognition of a gain in discontinued operations related to the resolution of certain contingencies. Commenting on the second quarter results, Robert J. Lepofsky, President and Chief Executive Officer of Brooks said, ``Our results for the quarter were in the middle of the range of guidance provided earlier but are still below the level of performance we are aiming to achieve in the short term.'' Mr. Lepofsky further noted ``We are presently six months into a time-phased restructuring effort designed to significantly improve our competitive position and financial performance. This effort will leverage strategic investments we have made over the past two years and will ultimately broaden Brook's product portfolio and customer base. Our reported financial results somewhat mask the underlying progress we have made to date. Implementation of our organizational realignment aimed at increasing customer responsiveness and reducing cost accelerated, as planned, in March. Rationalization of our world-wide facilities will reduce our global footprint by about fifteen percent by the end of the current quarter. Real progress has been made in the resolution of several outstanding legal issues that will eliminate the financial burden of these matters as we move forward.'' Mr. Lepofsky continued ``Our customers are responding very favorably to our initiatives as well. They have embraced our increased focus on performance and responsiveness and are rewarding us with new commitments for a larger share of their business. It is well understood that the difficult external environment that we currently face is exerting increasing pressure on top line expansion. However, the talented people comprising the global Brooks organization recognize that current market conditions represent a short-term challenge while the successful implementation of our restructuring plans are forming the basis for sustainable long term performance. We believe that our shareholders will clearly see the results of their work in the quarters ahead.'' Business Outlook In providing guidance for the third quarter of fiscal 2008 ending on June 30, 2008, Brooks expects revenues could be in the range of $125 million to $140 million with a net loss between $0.12 per share and breakeven. The guidance for loss per share does not include restructuring costs that are likely to be incurred during the quarter. A reconciliation of non-GAAP measures to the most nearly comparable GAAP measure follows the consolidated statements of operations, balance sheets and statements of cash flows attached to this release. Brooks Automation management will host a public conference call on Thursday, May 8, 2008 at 4:30 p.m. ET 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 may participate in the call by dialing (213)785-2437. Participants outside of the United States and Canada can access the call using the same number. It is recommended that participants dial in five minutes prior to the call's scheduled start time. The call will also be broadcast live on Brooks' website at http://www.brooks.com. Additionally, the call will be archived on this website for convenient on-demand replay until Brooks Automation reports fiscal 2008 third quarter results in mid-August, 2008. About Brooks Automation, Inc. Brooks is a leading worldwide provider of automation solutions and integrated subsystems to the global semiconductor and related industries. The company's advanced offerings in hardware and services can help customers improve manufacturing efficiencies, accelerate time-to-market and reduce cost of ownership. Brooks' products and global services are used in virtually every semiconductor fab in the world as well as in a number of diverse industries outside of semiconductor manufacturing. For more information see http://www.brooks.com or email co.csr@brooks.com ``Safe Harbor Statement'' under Section 21E of the Securities Exchange Act of 1934. Some statements in this release are forward-looking statements made under Section 21E of the Securities Exchange Act of 1934. These statements are neither promises nor guarantees but involve risks and uncertainties, both known and unknown, that could cause Brooks' financial and business results to differ materially from our expectations. They are based on the facts known to management at the time they are made. These forward-looking statements include statements regarding our bookings, revenues, profit and loss and cash flow expectations, expected restructuring charges and other charges, the impact of anticipated workforce reductions, future business strategy and market opportunities, level of capital expenditures and bookings expectations in the semiconductor industry, demand for our new and existing products, purchasing and manufacturing trends among semiconductor manufacturing OEMs, our strategy of sourcing from low cost regions, and the outlook of the semiconductor industry. Factors that could cause results to differ from our expectations include the following: our dependence on the cyclical semiconductor industry; the possibility of downturns in market demand for electronics; our possible inability to meet increased demand for our products due to difficulties in obtaining components and materials from our suppliers in required quantities and of required quality; a decision by semiconductor manufacturing OEMs not to outsource increasing amounts of their manufacturing operations; our ability to continue to effectively implement our flexible manufacturing model and our supply chain consolidation; the highly competitive nature and rapid technological change that characterizes the industries in which we compete; decisions by customers to accelerate delivery under or to cancel or defer orders that previously had been accepted; decisions by customers to reject the products we ship to them; the possibility that we may not be able to fulfill customer orders within a period of time acceptable to them; the fact that design-in wins do not necessarily translate to significant revenue; the timing and effectiveness of restructuring, cost-cutting, low cost sourcing and expense control measures; intense price competition; disputes concerning intellectual property; expenses associated with legal disputes and litigation; continuing uncertainties in global political and economic conditions, the potential for the incurrence of material expense and the diversion of management's attention from other business concerns created by the pending investigation by the Securities and Exchange Commission; 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.
BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
Three months ended Six months ended
March 31, March 31,
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------
Revenues
Product $118,503 $162,999 $238,573 $325,140
Services 29,144 31,927 56,907 61,154
-------- -------- -------- --------
Total revenues 147,647 194,926 295,480 386,294
-------- -------- -------- --------
Cost of revenues
Product 87,407 109,519 173,667 217,646
Services 23,801 22,917 46,925 46,476
-------- -------- -------- --------
Total cost of revenues 111,208 132,436 220,592 264,122
-------- -------- -------- --------
Gross profit 36,439 62,490 74,888 122,172
-------- -------- -------- --------
Operating expenses
Research and development 11,553 13,278 23,985 26,368
Selling, general and
administrative 29,896 30,562 58,999 61,558
Restructuring charges 2,506 3,040 3,106 3,040
-------- -------- -------- --------
Total operating expenses 43,955 46,880 86,090 90,966
-------- -------- -------- --------
Operating income (loss) from
continuing operations (7,516) 15,610 (11,202) 31,206
Interest income 1,806 2,355 5,015 4,530
Interest expense 310 314 443 455
Loss on investment 2,931 -- 2,931 --
Other (income) expense, net (1,161) 383 (818) 925
-------- -------- -------- --------
Income (loss) from continuing
operations before income
taxes and minority interests (7,790) 17,268 (8,743) 34,356
Income tax provision 885 1,480 1,555 2,124
-------- -------- -------- --------
Income (loss) from continuing
operations before minority
interests (8,675) 15,788 (10,298) 32,232
Minority interests in income
of consolidated subsidiaries 35 216 8 52
Equity in earnings of joint
ventures 46 179 223 550
-------- -------- -------- --------
Income (loss) from continuing
operations (8,664) 15,751 (10,083) 32,730
Income from discontinued
operations, net of income
taxes -- 8,138 -- 13,298
Gain on sale of discontinued
operations, net of income
taxes 371 83,898 371 83,898
-------- -------- -------- --------
Income from discontinued
operations, net of income
taxes 371 92,036 371 97,196
-------- -------- -------- --------
Net income (loss) $ (8,293) $107,787 $ (9,712) $129,926
======== ======== ======== ========
Basic income (loss) per share
from continuing operations $ (0.14) $ 0.21 $ (0.15) $ 0.44
Basic income per share from
discontinued operations 0.01 1.23 0.01 1.30
-------- -------- -------- --------
Basic net income (loss) per
share $ (0.13) $ 1.44 $ (0.15) $ 1.74
======== ======== ======== ========
Diluted income (loss) per
share from continuing
operations $ (0.14) $ 0.21 $ (0.15) $ 0.44
Diluted income per share from
discontinued operations 0.01 1.22 0.01 1.29
-------- -------- -------- --------
Diluted net income (loss) per
share $ (0.13) $ 1.43 $ (0.15) $ 1.73
======== ======== ======== ========
Shares used in computing
income (loss) per share
Basic 63,859 74,766 66,494 74,680
Diluted 63,859 75,327 66,494 75,173
BROOKS AUTOMATION, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)
March 31, September 30,
2008 2007
---------- ----------
Assets
Current assets
Cash and cash equivalents $ 113,267 $ 168,232
Marketable securities 42,029 80,102
Accounts receivable, net 92,566 105,904
Inventories, net 113,304 104,794
Prepaid expenses and other current assets 17,604 20,489
---------- ----------
Total current assets 378,770 479,521
Property, plant and equipment, net 82,588 80,747
Long-term marketable securities 27,795 26,283
Goodwill 318,745 319,302
Intangible assets, net 68,907 76,964
Equity investment in joint ventures 26,223 24,007
Other assets 6,775 8,014
---------- ----------
Total assets $ 909,803 $1,014,838
========== ==========
Liabilities, minority interests and
stockholders' equity
Current liabilities
Accounts payable $ 47,482 $ 57,758
Deferred revenue 8,666 5,424
Accrued warranty and retrofit costs 9,564 10,986
Accrued compensation and benefits 18,741 23,850
Accrued restructuring costs 7,006 6,778
Accrued income taxes payable 4,629 5,934
Accrued expenses and other current
liabilities 19,385 21,908
---------- ----------
Total current liabilities 115,473 132,638
Accrued long-term restructuring 7,378 8,933
Income taxes payable 10,649 10,159
Other long-term liabilities 2,516 2,866
---------- ----------
Total liabilities 136,016 154,596
---------- ----------
Contingencies
Minority interests 471 463
---------- ----------
Stockholders' 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, 76,966,916 shares issued
and 63,505,047 shares outstanding at
March 31, 2008, 76,483,603 shares issued and
70,423,603 shares outstanding at
September 30, 2007 770 765
Additional paid-in capital 1,785,731 1,780,401
Accumulated other comprehensive income 26,310 18,202
Treasury stock at cost, 13,461,869 shares and
6,060,000 shares at March 31, 2008 and
September 30, 2007, respectively (200,956) (110,762)
Accumulated deficit (838,539) (828,827)
---------- ----------
Total stockholders' equity 773,316 859,779
---------- ----------
Total liabilities, minority interests and
stockholders' equity $ 909,803 $1,014,838
========== ==========
BROOKS AUTOMATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
Six months ended
March 31,
--------------------
2008 2007
--------- ---------
Cash flows from operating activities
Net income (loss) $ (9,712) $ 129,926
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation and amortization 17,032 16,242
Stock-based compensation 4,543 4,070
Discount on marketable securities (669) (571)
Undistributed earnings of joint ventures (223) (550)
Minority interests 8 52
Loss on disposal of long-lived assets 289 476
Gain on sale of software division, net (371) (81,813)
Loss on investment 2,931 --
Changes in operating assets and liabilities,
net of acquisitions and disposals:
Accounts receivable 15,152 (21,725)
Inventories (6,830) (6,092)
Prepaid expenses and other current assets 3,213 (8,110)
Accounts payable (10,469) (14,999)
Deferred revenue 3,132 4,434
Accrued warranty and retrofit costs (1,145) 590
Accrued compensation and benefits (5,432) (938)
Accrued restructuring costs (1,378) (1,474)
Accrued expenses and other current liabilities (4,867) (1,480)
--------- ---------
Net cash provided by operating activities 5,204 18,038
--------- ---------
Cash flows from investing activities
Purchases of property, plant and equipment (10,746) (12,180)
Proceeds from the sale of software division -- 119,090
Purchases of marketable securities (106,944) (128,221)
Sale/maturity of marketable securities 143,805 136,055
Other (75) (23)
--------- ---------
Net cash provided by investing activities 26,040 114,721
--------- ---------
Cash flows from financing activities
Treasury stock purchases (90,194) --
Proceeds from issuance of common stock, net of
issuance costs 1,473 3,530
--------- ---------
Net cash provided by (used in) financing
activities (88,721) 3,530
--------- ---------
Effects of exchange rate changes on cash and cash
equivalents 2,512 619
--------- ---------
Net increase (decrease) in cash and cash
equivalents (54,965) 136,908
Cash and cash equivalents, beginning of period 168,232 115,773
--------- ---------
Cash and cash equivalents, end of period $ 113,267 $ 252,681
========= =========
BROOKS AUTOMATION, INC.
Supplemental Information
(unaudited)
(In thousands, except per share data)
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 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
and diluted earnings per share from continuing operations is presented
below:
Quarter ended
-----------------------------------------------
March 31, December 31, March 31,
2008 2007 2007
per per per
$ share $ share $ share
-------------- -------------- -------------
Income (loss) from
continuing
operations -8,664 -$0.14 -1,419 -$0.02 15,751 $0.21
Add: Restructuring
expenses 2,506 $0.04 600 $0.01 3,040 $0.04
Add: Loss on
investment 2,931 $0.05 0 $0.00 0 $0.00
-------------- -------------- -------------
Income (loss) before
special charges -3,227 -$0.05 -819 -$0.01 18,791 $0.25
============== ============== =============
Six months ended
-------------------------------
March 31, March 31,
2008 2007
per per
$ share $ share
--------------- -------------
Income (loss) from continuing
operations -10,083 -$0.15 32,730 $0.44
Add: Restructuring expenses 3,106 $0.05 3,040 $0.04
Add: Loss on investment 2,931 $0.04 0 $0.00
--------------- -------------
Income (loss) before special charges -4,046 -$0.06 35,770 $0.48
=============== =============
BROOKS AUTOMATION, INC.
Supplemental Information
(unaudited)
(In thousands)
Management utilizes adjusted Earnings before Interest, Depreciation
and Amortization ("adjusted EBITDA") as a means of assessing the
changes in the underlying cash generation potential of the business.
A table reconciling adjusted EBITDA to Net income (loss) from
continuing operations is presented below:
Quarter ended Six months ended
-------------------------- ------------------
March 31, Dec 31, March 31, March 31, March 31,
2008 2007 2007 2008 2007
-------------------------- ------------------
Income (loss) from
continuing operations -8,664 -1,419 15,751 -10,083 32,730
Less: Interest income -1,806 -3,209 -2,355 -5,015 -4,530
Add: Interest expense 310 133 314 443 455
Add: Income tax provision 885 670 1,480 1,555 2,124
Add: Depreciation 4,400 4,532 4,200 8,932 8,638
Add: Amortization of
completed technology 2,314 2,314 2,314 4,628 4,628
Add: Amortization of
acquired intangible
assets 1,787 1,685 1,482 3,472 2,976
Add: Stock compensation
expense 2,534 2,009 1,927 4,543 4,070
Add: Restructuring
expenses 2,506 600 3,040 3,106 3,040
Add: Loss on investment 2,931 0 0 2,931 0
-------------------------- ------------------
Adjusted EBITDA 7,197 7,315 28,153 14,512 54,131
========================== ==================
Contact: Brooks Automation, Inc.
Michael W. McCarthy, Director - Investor Relations
(978) 262-2459
michael.mccarthy@brooks.com
Source: Brooks Automation, Inc.
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